Based on the provided financial report articles, I generated the title for the article: **"ATMC's Q2 2024 Financial Report: Ordinary Shares, Warrants, and Rights Update"** Please note that the title is generated based on the provided data and may not be the actual title of the article.
Unfortunately, the provided text appears to be a financial report in a machine-readable format, but it lacks a clear and concise summary. However, I can try to extract some key financial figures and events from the report:
- The report is for the second quarter (Q2) of 2024, covering the period from January 1, 2024, to June 30, 2024.
- The company’s common stock, additional paid-in capital, and retained earnings have increased compared to the same period in 2023.
- The company has issued redeemable and non-redeemable ordinary shares, as well as warrants and rights, during the reporting period.
- The company has related-party transactions, which are disclosed in the report.
- The report includes financial statements for the company’s common stock, additional paid-in capital, and retained earnings as of December 31, 2022, March 31, 2023, and June 30, 2023, as well as for the three-month and six-month periods ended March 31, 2023, and June 30, 2023.
Please note that this summary is based on a machine-readable format and may not provide a comprehensive overview of the financial report. For a more detailed and accurate summary, I recommend reviewing the report in its entirety.
Results of Operations
The company has not engaged in any operations or generated any revenues to date. Its activities since inception have been focused on organizational tasks and preparing for the Initial Public Offering (IPO). After the IPO, the company will not generate any operating revenues until it completes its initial business combination.
The company will generate non-operating income in the form of interest earned on the funds held in the Trust Account after the IPO. It also expects to incur increased expenses as a public company, such as legal, financial reporting, accounting, and auditing costs, as well as expenses related to due diligence for potential business combinations.
For the three months ended June 30, 2024, the company had a net income of $385,370, which consists of a loss of $290,467 from formation and operating costs, offset by $675,837 in income earned on the investments held in the Trust Account.
For the six months ended June 30, 2024, the company had a net income of $827,635, which consists of a loss of $635,370 from formation and operating costs, offset by $1,463,005 in income earned on the investments held in the Trust Account.
For the three months ended June 30, 2023, the company had a net income of $701,529, which consists of a loss of $140,291 from formation and operating costs, offset by $841,820 in income earned on the Trust Account.
For the six months ended June 30, 2023, the company had a net income of $1,226,272, which consists of a loss of $347,790 from formation and operating costs, offset by $1,574,062 in income earned on the Trust Account.
Liquidity and Capital Resources
On January 4, 2023, the company consummated its IPO of 6,000,000 units at $10.00 per unit, generating gross proceeds of $60,000,000. Simultaneously, the company sold 370,500 Private Placement Units at $10.00 per unit in a private placement, generating $3,705,000 in gross proceeds.
On January 6, 2023, the underwriters exercised their over-allotment option in full, purchasing an additional 900,000 units at $10.00 per unit, generating $9,000,000 in gross proceeds. The company also completed the private sale of 38,700 Private Placement Units at $10.00 per unit, generating $387,000 in gross proceeds.
Transaction costs amounted to $4,892,699, consisting of $1,612,500 in underwriting discounts, $2,415,000 in deferred underwriting commissions, and $865,199 in other offering costs.
After the IPO and the sale of the over-allotment units, an aggregate of $70,242,000 ($10.18 per unit) from the net proceeds and the sale of the Private Placement Units was held in the Trust Account. As of June 30, 2024, the company had $52,553,058 in marketable securities held in the Trust Account, consisting of securities held in a treasury money market fund that invests in United States government treasury bills, bonds, or notes with a maturity of 180 days or less.
As of June 30, 2024, the company had a cash balance of $1,473 and a working capital deficit of $2,446,171. Until the consummation of the IPO, the company’s liquidity needs were satisfied through a $25,000 capital contribution from the Sponsor to purchase the founder shares. As of June 30, 2024, there was $1,042,500 outstanding as loans against a promissory note issued to the Sponsor for the extension of the business combination deadline from October 4, 2023, to July 4, 2024, which was deposited into the Trust Account. Subsequent to June 30, 2024, the company has deposited an additional $110,000 to extend the timeline for completion of the business combination from July 4, 2024, to September 4, 2024.
The company expects that it will need additional capital to satisfy its liquidity needs beyond the net proceeds from the IPO and the funds held outside the Trust Account, which will be used for identifying and evaluating potential business combination candidates, performing due diligence, and completing the initial business combination. Although certain of the company’s initial shareholders, officers, and directors or their affiliates have committed to loan the company funds as needed, there is no guarantee that the company will receive such funds.
In order to fund working capital deficiencies or finance transaction costs related to the initial business combination, the company’s founders or their affiliates may loan the company funds, which would be repaid upon the completion of the business combination. Up to $1,042,500 of such loans may be convertible into working capital units, at a price of $10.00 per unit, at the option of the lender.
The company has adopted an extension amendment to its Memorandum and Articles of Association, allowing it to extend the deadline for completing the business combination from January 4, 2024, to January 4, 2025, by providing five days’ advance notice to the trustee and depositing $55,000 into the Trust Account for each monthly extension.
In connection with the shareholders’ vote on the extension amendment on December 28, 2023, 2,160,774 ordinary shares of the company were redeemed for a pro rata portion of the funds held in the Trust Account, resulting in the removal of approximately $23,302,146 (approximately $10.78 per share) from the Trust Account. Following the redemptions, the company has 6,873,426 ordinary shares outstanding.
On January 5, 2024, the company entered into an Agreement and Plan of Merger with HCYC Holding Company, ATMC Merger Sub 1 Limited, ATMC Merger Sub 2 Limited, ATMC Merger Sub 3 Limited, and HCYC Group Company Limited, pursuant to which the parties will engage in a business combination transaction.
The company’s ability to continue as a going concern is uncertain, as it has incurred and expects to continue incurring significant costs in pursuit of its financing and acquisition plans. Management plans to address this uncertainty during the period leading up to the initial business combination, but there is no guarantee that the company’s plans to raise capital or consummate the initial business combination will be successful.
