Atlantic stal Acquisition (ACAH) - 2022 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2022, the company reported a net income of $2,254,661, driven by a change in fair value of warrant liabilities of$2,054,401[110]. - For the six months ended June 30, 2022, the company achieved a net income of $11,138,218, with a significant contribution from a change in fair value of warrant liabilities amounting to$14,010,272[111]. - The company incurred operational costs of $74,677 for the three months ended June 30, 2022, and$2,956,462 for the six months ended June 30, 2022[110][111]. Assets and Liabilities - As of June 30, 2022, the company held marketable securities in the Trust Account valued at $345,108,107, which includes approximately$84,408 of interest income and unrealized loss[116]. - The company had cash of $118,794 available for working capital purposes as of June 30, 2022, alongside a working capital deficit of$8,001,841[123]. - The company has no off-balance sheet arrangements or long-term debt obligations as of June 30, 2022[126]. Business Combination and Funding - The company intends to utilize substantially all funds in the Trust Account to complete its Business Combination, with remaining proceeds allocated for working capital and growth strategies[117]. - The company has until March 8, 2023, to consummate a Business Combination, or it will face mandatory liquidation[125]. - The underwriters are entitled to a deferred fee of $0.35 per Unit, totaling$12,075,000, payable only upon the completion of a Business Combination[128]. - The company has a commitment from its Sponsor to provide up to $1,315,000 in working capital loans if required, with an amendment increasing this to$1,055,000[121]. Internal Controls and Compliance - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were not effective due to material weaknesses in internal control over financial reporting[136]. - The company identified a material weakness in internal control over financial reporting related to the preparation and review of quarterly and year-end financial statements[139]. - Management plans to implement remediation steps to improve disclosure controls and internal control over financial reporting, including enhancing the review process for complex securities[137]. - A more thorough review of condensed financial statements and improved communication with third-party vendors are planned to catch errors before submission[138]. Regulatory and Accounting Standards - The company is assessing the impact of ASU 2020-06, which must be adopted by January 1, 2024, on its financial position and results of operations[133].