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Crixus BH3 Acquisition pany(BHAC) - 2022 Q3 - Quarterly Report
BHACCrixus BH3 Acquisition pany(BHAC)2022-11-13 16:00

Financial Performance - For the three months ended September 30, 2022, the company reported a net income of 0.1million,consistingof0.1 million, consisting of 0.2 million in interest income and 0.4millionfromthechangeinfairvalueofwarrantliability,offsetby0.4 million from the change in fair value of warrant liability, offset by 0.4 million in general and administrative expenses [96]. - For the nine months ended September 30, 2022, the company achieved a net income of 5.4million,whichincludes5.4 million, which includes 0.5 million in interest income and 6.3millionfromthechangeinfairvalueofwarrantliability,withgeneralandadministrativeexpensestotaling6.3 million from the change in fair value of warrant liability, with general and administrative expenses totaling 1.4 million [97]. Cash and Liquidity - As of September 30, 2022, the company had approximately 0.4millionincashavailableforworkingcapitalneedsand0.4 million in cash available for working capital needs and 233.7 million in cash and liquid marketable securities held in trust [101]. - The company has determined that it will not be able to sustain operations for the next twelve months without obtaining additional financing, raising substantial doubt about its ability to continue as a going concern [104]. - The company plans to request Working Capital Loans of up to 1.5millionfromitsSponsortoalleviateconcernsaboutitsabilitytocontinueoperations[104].TransactionCostsandFinancing−Thecompanyincurredtransactioncostsof1.5 million from its Sponsor to alleviate concerns about its ability to continue operations [104]. Transaction Costs and Financing - The company incurred transaction costs of 22,407,388 during its initial public offering, which included 12,650,000inunderwriters′feesanddiscounts[92].−Theunderwritersareentitledtoadeferredfeeof12,650,000 in underwriters' fees and discounts [92]. - The underwriters are entitled to a deferred fee of 8,050,000, which will become payable only if the company completes a Business Combination [110]. - The company issued 6,400,000 Private Placement Warrants at a price of 1.50perwarrant,generatingproceedsof1.50 per warrant, generating proceeds of 9,600,000 [107]. Accounting Policies - No material changes to critical accounting policies and estimates since the Annual Report [117]. - Significant accounting policies include fair value of warrant liability and marketable debt securities [117]. - Management does not anticipate recent accounting pronouncements to materially affect financial statements [117]. Business Combination Expectations - The company expects the pro rata redemption price to be approximately 10.20pershareofcommonstockifitextendstheperiodtoconsummateabusinesscombinationonce[93].DebtandObligations−Thecompanyhasnolong−termdebtorcapitalleaseobligationsasofSeptember30,2022,otherthanamonthlyfeeof10.20 per share of common stock if it extends the period to consummate a business combination once [93]. Debt and Obligations - The company has no long-term debt or capital lease obligations as of September 30, 2022, other than a monthly fee of 15,000 for office space and administrative support [109].