AltEnergy Acquisition p(AEAE) - 2023 Q1 - Quarterly Report

Financial Position - As of March 31, 2023, the Company had investments held in the Trust Account amounting to $239.8 million, primarily in U.S. government securities[114]. - The Company has a working capital deficit of approximately$1,094,000 as of March 31, 2023[114]. - The Company had cash of approximately $88,000 outside the Trust Account as of March 31, 2023, intended for operational expenses[114]. - The Sponsor provided$175,000 for working capital purposes, which remained outstanding as of December 31, 2022[121]. - The Company has no long-term debt or off-balance sheet financing arrangements as of December 31, 2022[122]. Income and Expenses - For the three months ended March 31, 2023, the Company reported a net income of $1,807,666, compared to$8,260,876 for the same period in 2022[113]. - Interest income for the three months ended March 31, 2023 was $2,423,610, while operating expenses totaled$492,689[113]. Shareholder Activity - Stockholders holding 21,422,522 Class A Shares redeemed their shares for approximately $222.5 million, resulting in a balance of$16,382,973 in the Trust Account as of May 15, 2023[110]. - As of March 31, 2023, the Class A common stock subject to possible redemption amounts to $234,600,000, classified as temporary equity[126]. Business Operations and Future Plans - The Company intends to use substantially all funds in the Trust Account to complete an initial business combination[116]. - If the Company fails to complete an initial business combination by May 2, 2024, it will cease operations and liquidate[115]. Derivative Instruments - The Public Warrants are valued using publicly available prices and classified as Level 1 on the Fair Value Hierarchy as of March 31, 2023[129]. - The Private Placement Warrants are valued using a modified Black-Scholes model and classified as Level 3 on the Fair Value Hierarchy due to unobservable inputs[129]. - The Company has determined that the Public Warrants and Private Placement Warrants are derivative instruments and are recorded as derivative liabilities on the balance sheet[128]. - The derivative instruments are recorded at fair value as of the closing date of the Initial Public Offering and re-valued at each reporting date[127]. Accounting Policies - The net income per share is calculated using the two-class method, with no dilutive securities affecting the diluted net income per common share as of March 31, 2023[132]. - The Company applies ASC 480 guidance for accounting for shares of common stock subject to possible redemption, classifying them as temporary equity[126]. - The Company does not anticipate any material effects from recently issued accounting standards that are not yet effective[133]. - The Company has not engaged in any hedging activities since inception and does not expect to do so regarding market risk[133]. - The Company has not been subject to any market or interest rate risk as of March 31, 2023[133].