Mountain Crest Acquisition Corp. V(MCAGU) - 2024 Q1 - Quarterly Report

Business Combinations - The Company entered into a Business Combination Agreement with AUM Biosciences Pte. Ltd. on October 19, 2022, which was later terminated on June 8, 2023[169][170]. - The Company entered into a non-binding term sheet with CUBEBIO Co., Ltd. for a proposed business combination on May 2, 2024[180]. - The Company entered into a Business Combination Agreement with CUBEBIO Co., Ltd. on August 29, 2024, for a merger and share swap[186]. - The Company has until November 16, 2024, to complete its Business Combination, having extended the deadline from February 16, 2024[212][213]. - The Company intends to use substantially all funds in the Trust Account to complete its Business Combination and for working capital purposes thereafter[204]. Financial Performance - The Company had a net loss of $25,537 for the three months ended March 31, 2024, compared to a net loss of$43,336 for the same period in 2023, reflecting a decrease of approximately 41.0%[195][196]. - Cash used in operating activities for the three months ended March 31, 2024, was $130,344, compared to$187,740 for the same period in 2023, indicating a reduction of approximately 30.6%[201][202]. - As of March 31, 2024, the company reported a net loss per common share calculated using a ratio of 16% for public redeemable shares and 84% for non-redeemable shares[220]. - The company did not have any dilutive securities as of March 31, 2024, resulting in diluted loss per share being the same as basic loss per share[221]. Securities and Listings - The Company received approval from Nasdaq to transfer its listing from The Nasdaq Global Market to The Nasdaq Capital Market, effective October 27, 2023[171]. - The Company regained compliance with the $35,000,000 market value of listed securities requirement on June 5, 2024[182]. - The Company generated gross proceeds of$60,000,000 from its Initial Public Offering of 6,000,000 Units at $10.00 per Unit[197]. - The Company incurred transaction costs of$5,090,361 related to its Initial Public Offering, which included $1,380,000 in underwriting fees[200]. - The underwriters are entitled to a deferred fee of$2,070,000, which will be payable only if the Company completes a Business Combination[216]. Debt and Financing - The Company issued an unsecured promissory note of up to $400,000 to the Sponsor on October 30, 2023, for working capital purposes[172]. - The Company issued an unsecured promissory note of up to$500,000 to the Sponsor on August 14, 2024, for working capital purposes[185]. - The Company has outstanding amounts of $390,000 and$200,000 under a promissory note as of March 31, 2024, and December 31, 2023, respectively[209]. - The Company has no long-term debt or off-balance sheet financing arrangements as of March 31, 2024[214][215]. Accounting Standards - The company is currently assessing the impact of ASU 2020-06, effective January 1, 2022, which simplifies accounting for certain financial instruments[222]. - ASU 2023-09, effective for fiscal years beginning after December 15, 2024, requires expanded disclosures of income taxes paid, but management does not believe it will have a material impact on consolidated financial statements[223]. - Management believes that recently issued accounting standards, if adopted, would not materially affect the financial statements[224]. Trust Account and Marketable Securities - As of March 31, 2024, the Company held marketable securities in the Trust Account amounting to $5,738,912, including$361,286 of interest income[203].