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AltEnergy Acquisition p(AEAE) - 2023 Q2 - Quarterly Report
AEAEAltEnergy Acquisition p(AEAE)2023-08-12 01:09

Financial Performance - For the three months ended June 30, 2023, the company reported a net income of 1,342,399,comparedto1,342,399, compared to 908,400 for the same period in 2022, reflecting a year-over-year increase of approximately 47.7%[134] - The net income for the six months ended June 30, 2023, was 3,150,065,adecreasefrom3,150,065, a decrease from 9,169,276 in the same period of 2022, indicating a decline of approximately 65.6%[135] - The company incurred operating expenses totaling 1,031,735forthesixmonthsendedJune30,2023,comparedto1,031,735 for the six months ended June 30, 2023, compared to 777,750 for the same period in 2022, representing an increase of approximately 32.5%[136] Trust Account and Shareholder Activity - As of June 30, 2023, the company held 17,256,161intheTrustAccount,equatingtoapproximately17,256,161 in the Trust Account, equating to approximately 10.94 per share of Class A common stock subject to redemption[137] - Stockholders redeemed 21,422,522 Class A Shares for a pro rata portion of the funds in the Trust Account, resulting in 222,484,624.02beingremovedfromtheTrustAccount[131]−AsofJune30,2023,theClassAcommonstocksubjecttopossibleredemptionamountsto222,484,624.02 being removed from the Trust Account[131] - As of June 30, 2023, the Class A common stock subject to possible redemption amounts to 17,096,912, classified as temporary equity[151] Financial Position and Obligations - The company has no obligations, assets, or liabilities considered off-balance sheet arrangements as of June 30, 2023[145] - The company has no long-term debt or capital lease obligations, only a monthly fee of 15,000forofficespaceandsupport,whichbeganonOctober28,2021,andwasamendedtoaccrueuntilabusinesscombinationorliquidation[146]−Thecompanymaylackthefinancialresourcestosustainoperationsforareasonableperiod,raisingsubstantialdoubtaboutitsabilitytocontinueasagoingconcern[138]BusinessCombinationandFinancing−ThecompanyintendstousesubstantiallyallfundsintheTrustAccounttocompleteaninitialbusinesscombination,withadditionalfinancingpotentiallyrequiredforlargertargetbusinesses[139]−Uponthecompletionoftheinitialbusinesscombination,thecompanywillpayB.RileySecurities,Inc.acashfeeof3.515,000 for office space and support, which began on October 28, 2021, and was amended to accrue until a business combination or liquidation[146] - The company may lack the financial resources to sustain operations for a reasonable period, raising substantial doubt about its ability to continue as a going concern[138] Business Combination and Financing - The company intends to use substantially all funds in the Trust Account to complete an initial business combination, with additional financing potentially required for larger target businesses[139] - Upon the completion of the initial business combination, the company will pay B. Riley Securities, Inc. a cash fee of 3.5% of the gross proceeds from the Public Offering[147] Financial Instruments and Valuation - The company evaluates its financial instruments to determine if they are derivatives, with Public and Private Placement Warrants classified as derivative instruments and measured at fair value[152] - The Public Warrants are valued using publicly available prices and classified as Level 1 on the Fair Value Hierarchy, while Private Placement Warrants are classified as Level 3 due to unobservable inputs[153] Cash and Working Capital - As of June 30, 2023, cash held outside the Trust Account was 551,407, with 475,762reservedfortaxesanddissolutioncosts[141]−ThecompanyhasreceivedloansfromtheSponsortotaling475,762 reserved for taxes and dissolution costs[141] - The company has received loans from the Sponsor totaling 355,000 for working capital purposes during the three and six months ended June 30, 2023[144] Earnings Per Share - Net income per share is calculated using the two-class method, with no dilutive securities as of June 30, 2023, resulting in diluted net income per share being the same as basic net income per share[157] Market and Interest Rate Risk - As of June 30, 2023, the company is not subject to any market or interest rate risk and has not engaged in hedging activities since inception[158]