AltEnergy Acquisition p(AEAE) - 2024 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2024, the company reported a net loss of $1,259,880 compared to a net income of$1,710,547 for the same period in 2023[161]. - Interest income earned on funds held in Trust for the three months ended March 31, 2024 was $229,469, down from$2,423,610 in the same period of 2023[161]. - Operating expenses for the three months ended March 31, 2024 totaled $1,203,055, significantly higher than$586,289 for the same period in 2023[161]. - The company has not generated any operating revenues to date and only incurs expenses related to being a public company and due diligence for business combinations[160]. - The company expects to continue incurring significant costs in pursuit of its initial business combination, with no assurance of success[147]. - The company may lack sufficient financial resources to sustain operations for at least one year from the issuance date of the financial statements, raising substantial doubt about its ability to continue as a going concern[163]. Business Combination and Agreements - The company entered into a Merger Agreement on February 21, 2024, with Car Tech, LLC, involving an Aggregate Merger Consideration of $80,000,000 plus an additional$40,000,000 in Earn Out Consideration[150]. - The company plans to file a registration statement on Form S-4 with the SEC for the proposed business combination, which will include a proxy statement and prospectus[153]. - The company extended the deadline for completing a business combination from May 2, 2024, to November 2, 2024, with potential further extensions up to May 2, 2025[156]. - The company intends to use substantially all funds in the Trust Account to complete an initial business combination, with remaining proceeds allocated for working capital and growth strategies[165]. Trust Account and Cash Position - As of April 30, 2024, the Trust Account held $8,344,699.85, approximately$11.30 per share of Class A common stock subject to redemption[159]. - As of March 31, 2024, the Trust Account held $17.8 million, approximately$11.30 per share, while cash outside the Trust Account was $96,892[162]. - As of March 31, 2024, the company had cash of$206,871 outside the Trust Account, with $109,979 reserved for taxes and dissolution costs if the initial business combination fails[167]. - Stockholders redeemed 21,422,522 Class A Shares for a total of$222,484,624 (approximately $10.38 per share) in connection with the Extension approved on April 28, 2023[154]. Financing and Debt - The Sponsor has committed to provide up to$1.8 million in loans for working capital, with $175,000 loaned during the three months ended March 31, 2024[169]. - The company has no long-term debt or off-balance sheet financing arrangements as of March 31, 2024[170]. Securities and Valuation - Upon consummation of the initial business combination, a cash fee of 3.5% of the gross proceeds of the Public Offering will be paid to B. Riley Securities, Inc.[172]. - The company has determined that its Public and Private Placement Warrants are classified as derivative liabilities and are measured at fair value[178]. - As of March 31, 2024, the company did not have any dilutive securities that could potentially be exercised or converted into common stock[182]. Regulatory and Accounting Matters - The company is evaluating the impact of ASU 2023-09 on its financial statements, effective January 1, 2025, which aims to enhance income tax disclosures[183].