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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED September 30, 2023

Seaport Global Acquisition II Corp.

(Exact name of registrant as specified in its charter)

Delaware

    

001-41075

   

87-1326052

(State or other jurisdiction of

incorporation)

 

(Commission File Number)

(I.R.S. Employer

Identification No.) 

360 Madison Avenue, 23rd Floor

 

 

New York, NY

 

10017

(Address of principal executive offices)

 

(Zip Code)

(212) 616-7700

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol(s)

    

Name of each exchange on which registered

Units, each consisting of one share of Class A common stock and one-half of one redeemable warrant

 

SGIIU

 

The Nasdaq Stock Market LLC

Class A common stock, par value $0.0001 per share

 

SGII

 

The Nasdaq Stock Market LLC

Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share

 

SGIIW

 

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes   No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes   No

Our units, Class A common stock and warrants are each traded on the NASDAQ Global Market under the symbols “SGIIU,” “SGII,” and “SGIIW,” respectively. Our units commenced public trading on November 17, 2021, and our Class A common stock and warrants commenced public trading on December 1, 2021.

As of November 10, 2023, 6,982,479 shares of Class A common stock, par value $0.0001 per share, were issued and outstanding.

SEAPORT GLOBAL ACQUISITION II CORP.

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2023

TABLE OF CONTENTS

Page

Part I. Financial Information

1

Item 1.

Financial Statements

1

Condensed Balance Sheets as of September 30, 2023 (unaudited) and December 31, 2022

1

Condensed Statements of Operation for the three and nine months ended September 30, 2023 and September 30, 2022 (unaudited)

2

Condensed Statements of Changes in Stockholders’ Deficit for the three and nine months ended September 30, 2023 and September 30, 2022 (unaudited)

3

Condensed Statement of Cash Flow for the nine months ended September 30, 2023 and September 30, 2022 (unaudited)

4

Notes to Condensed Financial Statements (unaudited)

5

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

31

Item 4.

Controls and Procedures

31

Part II. Other Information

33

Item 1.

Legal Proceedings

33

Item 1A.

Risk Factors

33

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

33

Item 3.

Defaults Upon Senior Securities

33

Item 4.

Mine Safety Disclosures

33

Item 5.

Other Information

33

Item 6.

Exhibits

33

PART I-FINANCIAL INFORMATION

Item 1. Financial Statements

SEAPORT GLOBAL ACQUISITION II CORP.

CONDENSED BALANCE SHEETS

September 30, 2023

December 31, 2022

    

(unaudited)

    

Assets:

Current assets

Cash

$

31,494

$

292,717

Prepaid expenses

181,139

61,863

Income tax receivable

113,624

Total current assets

 

212,633

 

468,204

Cash and securities held in Trust Account

36,392,519

147,639,566

Total Assets

$

36,605,152

$

148,107,770

Liabilities and Stockholders’ Deficit

 

  

 

  

Current liabilities:

Accounts payable and accrued expenses

$

2,153,357

$

827,669

Franchise tax payable

30,000

179,951

Convertible promissory note – related party

1,200,000

Excise tax payable

1,131,343

Current taxes payable

108,767

Total current liabilities

4,623,467

1,007,620

Income taxes payable

132,872

Deferred underwriting fee payable

 

5,031,250

 

5,031,250

Warrant liability

 

828,737

 

162,181

Forward purchase agreement liability

2,212,335

Total liabilities

12,695,789

 

6,333,923

 

  

 

  

Commitments and contingencies

 

 

  

Class A common stock subject to possible redemption, $0.0001 par value; 3,388,729 shares and 14,375,000 shares issued and outstanding at redemption value at September 30, 2023 and December 31, 2022 respectively

36,313,752

147,011,758

 

  

 

  

Stockholders’ Deficit:

 

  

 

  

Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding

 

 

Class A non-redeemable common stock, $0.0001 par value; 100,000,000 shares authorized; 3,593,750 and none issued and outstanding at September 30, 2023 and December 31, 2022 respectively

 

359

 

Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 0 and 3,593,750 issued and outstanding at September 30, 2023 and December 31, 2022 respectively

 

 

359

Additional paid-in capital

 

 

Accumulated deficit

 

(12,404,748)

 

(5,238,270)

Total stockholders’ deficit

 

(12,404,389)

 

(5,237,911)

Total Liabilities and Stockholders’ Deficit

$

36,605,152

$

148,107,770

The accompanying notes are an integral part of these condensed financial statements.

1

SEAPORT GLOBAL ACQUISITION II CORP.

CONDENSED STATEMENTS OF OPERATIONS

(unaudited)

For the Three Months Ended

For the Nine Months Ended

    

September 30, 2023

    

September 30, 2022

    

September 30, 2023

    

September 30, 2022

General and administrative expense

$

914,000

$

337,271

$

2,325,429

$

1,631,493

Franchise tax expense

50,000

49,913

150,000

148,148

Loss from operations

(964,000)

(387,184)

(2,475,429)

(1,779,641)

Other income (loss):

Gain on marketable securities held in Trust Account

529,408

693,891

2,182,510

890,956

Change in fair value of warrant liability

461,605

1,636,842

(666,556)

5,093,141

Initial measurement of forward purchase agreement liability

(2,016,000)

Change in fair value of forward purchase agreement liability

(322,335)

(196,335)

Total other income, net

668,678

2,330,733

(696,381)

5,984,097

Income (loss) before provision for income taxes

$

(295,322)

$

1,943,549

$

(3,171,810)

$

4,204,456

Provision for income taxes

100,675

145,333

427,003

152,157

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

$

4,052,299

Class A redeemable allocation of net income as adjusted

(204,505)

1,438,573

$

(2,213,599)

$

3,421,839

Class A redeemable weighted average shares outstanding, basic and diluted

3,837,956

14,375,000

5,742,884

14,375,000

Class A redeemable basic and diluted net income per share

$

(0.05)

$

0.10

$

(0.39)

$

0.23

 

Class A non-redeemable allocation of net income as adjusted

$

(191,492)

359,643

$

(1,385,214)

$

810,460

Class A non-redeemable weighted average shares outstanding, basic and diluted

3,593,750

3,593,750

3,593,750

3,593,750

Class A basic and diluted net income per non-redeemable common share

$

(0.05)

0.10

$

(0.39)

$

0.23

The accompanying notes are an integral part of these condensed financial statements.

2

SEAPORT GLOBAL ACQUISITION II CORP.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(UNAUDITED)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023 and 2022

Class A

Class A

common stock

common stock

Class B

Additional

(subject to possible redemption)

(non-redeemable)

common stock

paid-in

Accumulated

Stockholders’

    

Shares

    

Amount

    

Shares

Amount

    

Shares

    

Amount

    

capital

    

Deficit

    

Deficit

Balance December 31, 2021

14,375,000

$

145,906,254

$

3,593,750

$

359

$

$

(10,894,548)

$

(10,894,189)

Net income for the period

2,254,083

2,254,083

Balance June 30, 2022

14,375,000

$

145,906,254

$

3,593,750

$

359

$

(8,640,465)

$

(8,640,106)

Remeasurement of Class A ordinary shares to redemption value

$

586,204

$

(586,204)

$

(586,204)

Net income for the period

1,798,216

1,798,216

Balance September 30, 2022

14,375,000

$

146,492,458

$

3,593,750

$

359

$

(7,428,453)

$

(7,428,094)

Balance December 31, 2022

14,375,000

$

147,011,758

$

3,593,750

$

359

$

$

(5,238,270)

$

(5,237,911)

Redemption of Class A ordinary shares

(10,125,252)

(104,028,741)

Remeasurement of Class A ordinary shares to redemption value

1,726,497

(1,726,497)

(1,726,497)

Conversion of Class B common shares to Class A common shares

3,593,750

359

(3,593,750)

(359)

Excise tax on redeemed shares

(1,040,287)

$

(1,040,287)

Net loss for the period

(3,202,816)

(3,202,816)

Balance – June 30, 2023

4,249,748

$

44,709,514

3,593,750

$

359

$

$

$

(11,207,870)

$

(11,207,511)

Redemption

(861,019)

$

(9,105,587)

Remeasurement of Class A ordinary shares to redemption value

709,825

(709,825)

(709,825)

Excise tax on redeemed shares

(91,056)

(91,056)

Net loss for the period

(395,997)

(395,997)

Balance September 30, 2023

3,388,729

$

36,313,752

3,593,750

$

359

$

$

$

(12,404,748)

$

(12,404,389)

The accompanying notes are an integral part of these condensed financial statements.

3

SEAPORT GLOBAL ACQUISITION II CORP.

CONDENSED STATEMENT OF CASH FLOW

(unaudited)

For the nine months

ended

    

September 30, 2023

    

September 30, 2022

Cash flows from operating activities:

Net income (loss)

$

(3,598,813)

$

4,052,299

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

 

Interest earned on marketable securities held in Trust Account

(2,182,510)

(5,093,141)

Initial measurement of forward purchase agreement liability

2,016,000

Change in fair value of forward purchase agreement liability

196,335

Change in fair value of warrant liability

666,556

(890,956)

Changes in operating assets and liabilities:

 

  

 

Prepaid expenses

(119,276)

428,136

Accounts payable and accrued expenses

 

1,325,688

 

682,729

Franchise tax payable

(149,951)

107,348

Income tax payable

89,519

138,068

Net cash used in operating activities

$

(1,756,452)

$

(575,517)

Cash flows from investing activities:

Payment for extension into Trust Account

$

(356,094)

$

Proceeds from withdrawal of Trust Account

651,323

40,747

Cash withdrawn from Trust Account in connection with redemption

113,134,328

Net cash provided by investing activities

$

113,429,557

$

40,747

 

  

 

Cash flows from financing activities:

 

  

 

Proceeds from promissory note – related party

$

1,200,000

$

Redemption of ordinary shares

(113,134,328)

Net cash used in financing activities

$

(111,934,328)

$

 

  

 

Net change in cash

 

(261,223)

 

(534,770)

Cash, beginning of period

 

292,717

 

954,598

Cash, end of the period

$

31,494

$

419,828

Supplemental cash flow information:

 

 

Cash paid for income taxes

$

337,426

$

14,000

Supplemental disclosure of non-cash investing and financing activities:

 

 

Remeasurement adjustment on redeemable common stock

$

2,436,322

$

586,204

Excise tax payable on redeemed shares

$

1,131,343

$

Forward purchase agreement liability

$

2,212,335

$

The accompanying notes are an integral part of these condensed financial statements.

4

SEAPORT GLOBAL ACQUISITION II CORP.

NOTES TO FINANCIAL STATEMENTS

Note 1 — Organization and Business Operation

Seaport Global Acquisition II Corp. (the “Company”) is a blank check company incorporated in Delaware on June 21, 2021. The Company was formed for the purpose of effectuating a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses (the “Business Combination”). The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

As of September 30, 2023, the Company had not yet commenced any operations. All activity for the period from January 1, 2023 through September 30, 2023, and the prior year comparable period, relates to the Company’s formation, initial public offering (the “Initial Public Offering”), which is described below, and the Company’s search for a Target for its Business Combination. On June 1, 2023, the Company entered into an Agreement and Plan of Merger (“Merger Agreement”) by and among the Company, Lithium Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Merger Sub”), and American Battery Materials, Inc. (OTC Pink: BLTH), a Delaware corporation (“ABM”). ABM is an exploration stage company focused on environmentally friendly direct lithium extraction and other minerals critical to the global energy transition.

The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.

The registration statement for the Company’s Initial Public Offering was declared effective on November 17, 2021. On November 19, 2021, the Company consummated the Initial Public Offering of 14,375,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which includes the full exercise by the underwriter of the overallotment option to purchase an additional 1,875,000 Units at $10.00 per Unit, generating gross proceeds of $143,750,000, which is described in Note 3.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 7,531,250 warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to Seaport Global SPAC II, LLC (the “Sponsor”) generating gross proceeds of $7,531,250, which is described in Note 4.

Following the closing of the Initial Public Offering on November 19, 2021 an amount of $145,906,250 ($10.15 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less, or in money market funds investing solely in United States government treasury obligations and meeting the conditions of paragraphs (d)(1), (d)(2), (d)(3) and (d)(4) of Rule 2a-7 under the Investment Company Act (or any successor rule), until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the funds in the Trust Account to the Company’s stockholders, as described below.

The Company’s management has broad discretion with respect to the specific application of the remaining net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the remaining net proceeds are intended to be applied generally toward consummating a Business Combination. NASDAQ rules provide that the Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the Trust Account (less any deferred underwriting commissions and taxes payable on interest earned on the Trust Account) at the time of the signing a definitive agreement to enter a Business Combination. The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to successfully effect a Business Combination.

5

The Company will provide its holders of the outstanding Public Shares (the “public stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. In connection with a proposed Business Combination, the Company may seek stockholder approval of a Business Combination at a meeting called for such purpose at which stockholders may seek to redeem their shares, regardless of whether they vote for or against a Business Combination. The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 either immediately prior to or upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the outstanding shares voted are voted in favor of the Business Combination.

If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Company’s Amended and Restated Certificate of Incorporation provides that, a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from seeking redemption rights with respect to 20% or more of the Public Shares without the Company’s prior written consent.

The public stockholders will be entitled to redeem their shares for a pro rata portion of the amount then in the Trust Account (initially $10.15 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The per-share amount to be distributed to stockholders who redeem their shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriter (as discussed in Note 7). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants.

If a stockholder vote is not required and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation, offer such redemption pursuant to the tender offer rules of the Securities and Exchange Commission (the “SEC”), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination.

The Company’s Sponsor has agreed (a) to vote its Founder Shares (as defined in Note 5), and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination, (b) not to propose an amendment to the Company’s Amended and Restated Certificate of Incorporation with respect to the Company’s pre-Business Combination activities prior to the consummation of a Business Combination unless the Company provides dissenting public stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment; (c) not to redeem any shares (including the Founder Shares) and Private Placement Warrants (including underlying securities) into the right to receive cash from the Trust Account in connection with a stockholder vote to approve a Business Combination (or to sell any shares in a tender offer in connection with a Business Combination if the Company does not seek stockholder approval in connection therewith) or a vote to amend the provisions of the Amended and Restated Certificate of Incorporation relating to stockholders’ rights of pre-Business Combination activity and (d) that the Founder Shares and Private Placement Warrants (including underlying securities) shall not participate in any liquidating distributions upon winding up if a Business Combination is not consummated. However, the Sponsor will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares purchased during or after the Initial Public Offering if the Company fails to complete its Business Combination.

The Company initially had until February 19, 2023 to complete a Business Combination (the “Combination Period”). On February 13, 2023, the Company held a special meeting of stockholders (the “Meeting”), during which the stockholders of the Company approved a proposal to extend the Combination Period to August 19, 2023 and allow holders of shares of Class B Common stock to convert such shares at any time at the election of the holder. On August 14, 2023, the Company held a special meeting of stockholders (the “Second Meeting”), during which the stockholders of the Company approved a proposal to extend the Combination Period by up to six one month extensions to February 19, 2024.

6

If the Company is unable to complete a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including interest earned on the funds held in the trust account and not previously released to us to pay our taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to complete our initial business combination within the Combination Period. The underwriter has agreed to waive its rights to the deferred underwriting commission held in the trust account in the event we do not complete our initial business combination within the Combination Period and, in such event, such amounts will be included with the funds held in the trust account that will be available to fund the redemption of the public shares.

In connection with the Meeting, the Company entered into Voting and Non-Redemption Agreements with certain stockholders of the Company holding an aggregate of 3,281,138 shares in exchange for their agreeing not to redeem shares of the Company’s common stock at the Meeting (collectively, the “Non-Redemption Agreements”). The Non-Redemption Agreements provide for the allocation of up to 820,284 shares of common stock of the Company held by the Sponsor. The stockholders party to the Non-Redemption Agreements only agreed to refrain from exercising redemption rights in connection with the Meeting and retain their redemption rights in connection with the approval of a Business Combination (or any future amendment to extend the period to complete a Business Combination).

After the Meeting, an amendment to the Company’s amended and restated certificate of incorporation was filed with the Secretary of State of Delaware (as amended, the “A&R COI”), extending the Combination Period to August 19, 2023 and allowing holders of shares of the Company’s Class B Common Stock to convert such shares into shares of Class A Common Stock on a one-for-one basis at the election of the holder. In connection with the vote to approve the Extension Proposals, the holders of 10,125,252 public shares of common stock of the Company properly exercised their right to redeem their shares (and did not withdraw their redemption) for cash at a redemption price of approximately $10.27 per share, for an aggregate redemption amount of approximately $104 million. (the “Extension Redemptions”)

On February 14, 2023, Seaport Global SPAC II, LLC, the Company’s sponsor (“Sponsor”) contributed to the Company for purposes of making a deposit into the Company’s trust account of an aggregate of 200,000 shares of Class B common stock (the “Trust Shares”) and $84,994.96 (or $0.02 per share of Class A Common Stock remaining after the Extension Redemptions (each a “Remaining Share”, and collectively, the “Remaining Shares”)) for the benefit of the public shares that were not redeemed by the public shareholders in connection with the Meeting. Following the foregoing contribution, the Sponsor owned 3,393,750 shares of Class B common stock. On February 16, 2023 the Sponsor converted the entirety of such shares into shares of Class A common stock, and including the additional 200,000 Class B Trust Shares which represent 46% of the outstanding shares of common stock of the Company. Effective on February 17, 2023, the Trust Shares were also converted to Class A Common Stock.

Following the Extension Redemptions, including the Class B common stock, the Company had 7,843,498 shares of common stock outstanding, and the aggregate amount remaining in the Trust Account at the time was $43,662,709.

In connection with the vote to approve the Second Extension, the holders of 861,019 public shares of common stock of the Company properly exercised their right to redeem their shares (and did not withdraw their redemption) for cash at a redemption price of approximately $10.58 per share, for an aggregate redemption amount of approximately $9.1 million (“Second Extension Redemptions”). Following the Second Extension Redemptions, the Company had 6,982,479 shares of common stock outstanding, and the aggregate amount remaining in the Trust Account at the time was approximately $35.8 million. In connection with the Second Extension, on August 16, 2023, we contributed an additional $135,549 of loan proceeds from our Sponsor to the Trust Account (“Extension Payment”), bringing the total in the Trust Account to approximately $36.0 million. Also on August 16, 2023, we amended our Trust Agreement with the Trustee. Since August 16, we have made two additional Extension Payments into the Trust Account. Pursuant to an amendment to the Merger Agreement, ABM was obligated to pay $0.015 per share of the Extension Payments in cash, or else it was obligated to contribute additional shares to our Sponsor at the closing. To date, ABM has not made any such payments in cash.

7

The Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.15 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the day of liquidation of the Trust Account, if less than $10.15 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriter of Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). However, the Company has not asked the Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and believe that the Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure its stockholders that the Sponsor would be able to satisfy those obligations. None of the Company’s officers or directors will indemnify the Company for claims by third parties including, without limitation, claims by vendors and prospective target businesses. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.

Liquidity and Going Concern

As of September 30, 2023, the Company had cash outside the Trust Account of $31,494 available for working capital needs and a working capital deficit of approximately $(4.4) million. All remaining cash held in the Trust Account are generally unavailable for the Company’s use, prior to an initial business combination, and is restricted for use either in a Business Combination, pay the Company’s tax obligations, or to redeem common stock.

Through September 30, 2023, the Company’s liquidity needs were satisfied through receipt of $25,000 from the sale of the founder shares and the remaining net proceeds from the IPO and the sale of Private Placement Units. In addition, on August 25, 2022 and November 25, 2022, the Company withdrew $40,747 and $374,062, respectively from the Trust Account to pay its income tax and Delaware franchise tax obligations. On February 23, 2023 and on August 17, 2023, the Company withdrew $582,139 and $69,184, respectively from the Trust Account to meet its income tax and Delaware franchise tax obligations.

As of September 30, 2023, $284,388 of the amount held in the Trust Account was available to be withdrawn as described above, and as of December 31, 2022, $1,733,316 of the amount in the Trust Account were available to be withdrawn as described above.

Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination. Further, the Company has incurred and expects to continue to incur significant costs in pursuit of its acquisition plans.

The possibility exists that within the coming 12 months the Company will need to raise additional capital through loans or additional investments from its Sponsor, stockholders, officers, directors, or third parties. In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the initial stockholders or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete a Business Combination, we would repay such loaned amounts. In the event that a Business Combination does not close, we may use a portion of the working capital held outside the Trust Account to repay such loaned amounts but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into warrants identical to the Private Placement Warrants, at a price of $1.00 per warrant at the option of the lender.

Accordingly, the Company may not be able to obtain additional financing if and when needed. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company’s ability to continue as a going concern through one year and one day from the date of issuance of these financial statements. These conditions raise substantial doubt about our ability to continue as a going concern. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

8

In connection with our assessment of going concern considerations in accordance with the authoritative guidance in Financial Accounting Standard Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that the mandatory liquidation and subsequent dissolution, should the we be unable to complete a business combination, raises substantial doubt about the our ability to continue as a going concern. We have until end of the Combination Period to consummate a Business Combination. It is uncertain that we will be able to consummate a Business Combination by this time. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate as of the end of the Combination Period.

Risks and Uncertainties

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread throughout the United States and the World. As of the date the financial statement was issued, there was considerable uncertainty around the expected duration of this pandemic. The Company has concluded that while it is reasonably possible that COVID-19 could have a negative effect on identifying a target company for a Business Combination, the specific impact is not readily determinable as of the date of this financial statement. In addition, our search for a target company may be impacted by the current hostilities between Russia and Ukraine, inflationary effects, and other similar events and the status of debt and equity markets. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

Note 2 — Significant Accounting Policies

Basis of Presentation

The accompanying condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. The results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for any future periods.

In the opinion of the Company’s management, the accompanying condensed financial statements contain all adjustments necessary for a fair statement of the Company’s financial position as of September 30, 2023, its results of operations for the three- and nine-months ended September 30, 2023 and 2022 and its cash flows for the nine months ended September 30, 2023 and 2022. All such adjustments are of a normal and recurring nature.

Emerging Growth Company Status

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

9

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of the financial statement in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statement, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

Inflation Reduction Act of 2022

Except for franchise and income taxes, the proceeds placed in the trust account in connection with the Company’s initial public offering and any extension payments, as well as any interest earned thereon, shall not be used to pay for potential excise taxes or any other fees or taxes that may be levied on the Company pursuant to any current, pending or future rules or laws, including without limitation any excise tax due under the Inflation Reduction Act of 2022 on any redemptions or stock buybacks by the Company.

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2023 or December 31, 2022. The Company had $31,494 of cash as of September 30, 2023 and $292,717 of cash as of December 31, 2022.

Cash and Securities held in Trust Account

At September 30, 2023, the assets held in the Trust Account were substantially held in U.S. Treasury Bills. As of September 30, 2023, the Trust Account held $36,391,529 in three-month U.S. Treasury Bills and $990 in cash. As of December 31, 2022, the Trust Account held $147,639,102 in three-month U.S. Treasury Bills and $464 in cash. During the period from January 1, 2023 and September 30, 2023, the Company withdrew $651,323 interest income from the Trust Account to pay its tax obligations and withdrew $40,747 during the period from January 1, 2022 to September 30, 2022. During the three months ended September 30, 2023, the Company withdrew $69,184 interest income from the Trust Account to pay its tax obligations and withdrew $40,747 during the comparable three month period in 2022.

The Company classifies its United States Treasury securities as a trading security in accordance with FASB ASC Topic 320 “Investments - Debt and Equity Securities.”

Per ASC 320-10-25 Trading securities are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price. However, at acquisition the Company is not precluded from classifying as trading a security it plans to hold for a longer period.

Interest income is recognized when earned and included in the “interest income” line item in the statements of operations.

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Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

Warrant and Forward Purchase Agreement Liabilities

The Company accounts for warrants and forward purchase agreements as either equity-classified or liability-classified instruments based on an assessment of the warrant’s and forward purchase agreement’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants and forward purchase agreement are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants and forward purchase agreement meet all of the requirements for equity classification under ASC 815, including whether the warrants and forward purchase agreement are indexed to the Company’s own common shares and whether the warrant and forward purchase agreement holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant and forward purchase agreement issuance and as of each subsequent quarterly period end date while the warrants forward purchase agreement are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.

The Forward Purchase Agreement entered into on May 31, 2023 (“FSPA” or the “Agreement”) resulted in Meteora holding a put option to sell up to a maximum of 4,200,000 of the Company’s shares. Pursuant to ASC 480, “Distinguishing Liabilities from Equity”, this instrument meets the definition of a liability and accordingly was recognized at fair value. The FSPA resulted in the initial recognition of a forward purchase agreement liability of approximately $2,016,000 and was expensed in our statement of operations. The fair value of this put option was $2,212,335 as of September 30, 2023 and zero at December 31, 2022, assuming the investor will purchase the maximum number of shares. Changes in the estimated fair value of the FSPA are recognized as a non-cash gain or loss on the statements of operations.

Class A Common Stock Subject to Possible Redemption

The Company accounts for its common stock subject to possible redemption in accordance with the guidance in ASC Topic 480. Common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet.

The Company recognizes changes in redemption value at the end of each reporting period and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Such changes are reflected in additional paid-in capital, or in the absence of additional capital, in accumulated deficit. On November 19, 2021, the Company recorded an accretion of $20,121,064.

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As of September, 2023, the shares of Class A Common Stock, classified as temporary equity in the balance sheet, are reconciled in the following table:

Gross proceeds of initial public offering

    

$

139,711,628

Less:

 

Proceeds allocated to public warrants

 

(5,751,494)

Offering costs allocated to Class A Common Stock subject to possible redemption

 

(8,174,948)

Plus:

 

Re-measurement on Class A Common Stock subject to possible redemption

 

20,121,068

Class A Common Stock subject to possible redemption, December 31, 2021

$

145,906,254

Remeasurement of Class A Common Stock to redemption value

1,105,504

Shares of Class A Common Stock subject to possible redemption at December 31, 2022

$

147,011,758

Redemption of Class A ordinary shares

(113,134,328)

Remeasurement of Class A ordinary shares to redemption value

2,436,322

Class A ordinary shares subject to possible redemption value at September 30, 2023

$

36,313,752

Offering Costs

The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - “Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering.

Transaction costs for the Company’s IPO amounted to $8,553,410, consisting of $2,875,000 for the underwriting discount, $5,031,250 of deferred underwriting compensation fees, and $647,160 of other offering costs. Offering costs amounted to $8,553,410, of which $8,174,948 were charged to temporary equity upon the completion of the Initial Public Offering and $378,462 were expensed to the statement of operations.

Income Taxes

The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company has identified the United States as its only “major” tax jurisdiction. The Company may be subject to potential examination by federal and state taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Net Income (loss) Per Share of Common Stock

Net income (loss) per common share is computed by dividing net income by the weighted average number of common stock outstanding for the period. The Company applies the two-class method in calculating earnings per share. Shares of common stock subject to possible redemption at September 30, 2023, which are not currently redeemable and are not redeemable at fair value, have been

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excluded from the calculation of basic net income (loss) per common share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered the effect of warrants sold in the Initial Public Offering and the private placement to purchase an aggregate 7,531,250 shares of common stock in the calculation of diluted income (loss) per share, since the exercise of the warrants into shares of common stock is contingent upon the occurrence of future events. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the period presented.

Below is a reconciliation of net income (loss) per common share:

For the Three Months Ended

For the Nine Months Ended

September 30,

 

September 30,

September 30,

September 30,

    

2023

    

2022

    

2023

    

2022

Class A common stock subject to possible redemption

 

  

Numerator: Net income (loss) allocable to Class A common stock subject to possible redemption

 

  

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

4,052,299

Net income (loss) attributable to Class A common stock subject to possible redemption

(204,505)

1,438,573

(2,213,599)

 

3,241,839

Denominator: Weighted average redeemable Class A common stock

 

Weighted average shares outstanding, basic and diluted redeemable Class A common stock

3,837,956

14,375,000

5,742,884

 

14,375,000

Basic and diluted net income (loss) per share, redeemable Class A common share

$

(0.05)

$

0.10

$

(0.39)

$

0.23

Non-Redeemable Class B Common Stock

 

Numerator: Net Income (loss) attributable to non-redeemable Class A common stock

 

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

4,052,299

Net Income (loss) attributable to non-redeemable Class A common stock

$

(191,492)

$

359,643

$

(1,385,214)

810,460

Denominator: Weighted average non-redeemable Class A common stock

 

Weighted average shares outstanding, basic and diluted non-redeemable Class A common stock

3,593,750

3,593,750

3,593,750

 

3,593,750

Basic and diluted net income (loss) per non-redeemable Class A common share

$

(0.05)

$

0.10

$

(0.39)

0.23

Fair value of financial instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution, which, at times may exceed the Federal depository insurance coverage of $250,000. At September 30, 2023, the Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

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Recent Accounting Standards

In August 2020, the FASB issued ASU No. 2020-06, “Debt --Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging --Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The adoption of ASU 2019-12, effective January 1, 2022, did not have a material impact on the Company’s financial statements and related footnote disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.

Note 3 — Public Offering

Pursuant to the Initial Public Offering, on November 19, 2021, the Company sold 14,375,000 Units, which includes the full exercise by the underwriter of its option to purchase an additional 1,875,000 Units, at a purchase price of $10.00 per Unit. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value, and one-half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 8).

Note 4 — Private Placement

Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 7,531,250 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, or $7,531,250 in the aggregate. Each Private Placement Warrant is exercisable to purchase one share of Class A common stock at a price of $11.50 per share. The proceeds from the sale of the Private Placement Warrants were added to the net proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless.

Note 5 — Related Party Transactions

Founder Shares

In June 2021, the Company issued an aggregate of 3,593,750 shares (the “Founder Shares”) to the Sponsor for an aggregate purchase price of $25,000 in cash. Subsequently, in August 2021, our Sponsor forfeited an aggregate of 718,750 shares for no consideration, thereby resulting in 3,593,750 remaining Founder Shares, included an aggregate of up to 468,750 Founder Shares of Class B common stock subject to forfeiture by the Sponsor to the extent that the underwriter’s over-allotment option was not exercised in full or in part, so that the Sponsor would own, on an as-converted basis, 20% of the Company’s issued and outstanding shares after the Initial Public Offering. As a result of the underwriter’s election to fully exercise its over-allotment option, 468,750 Founder Shares are no longer subject to forfeiture.

The initial stockholders have agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination or (B) the date on which the Company completes a liquidation, merger, capital stock exchange or similar transaction that results in the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property. Notwithstanding the foregoing, if the last sale price of the Company’s Class A common

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stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination, the Founder Shares will be released from the lock-up.

In February 2023, our Sponsor contributed the Trust Shares and $84,994 (or $0.02 per Remaining Share) to the Company’s trust account in connection with the Meeting. Also in February 2023, the Sponsor converted its remaining 3,393,750 founder shares to shares of Class A Common Stock, subject to the same restrictions as the founder shares. Effective February 17, 2023 the Trust Shares were also converted to Class A Common Stock.

Also in February 2023, the Company entered into Non-Redemption Agreements with certain stockholders of the Company holding an aggregate of 3,281,138 shares in exchange for their agreeing not to redeem shares of the Company’s common stock at the Meeting. The Non-Redemption Agreements provide for the allocation of up to 820,284 shares of common stock of the Company held by the Sponsor. The stockholders party to the Non-Redemption Agreements only agreed to refrain from exercising redemption rights in connection with the Meeting and retain their redemption rights in connection with the approval of a Business Combination (or any future amendment to extend the period to complete a Business Combination).

In connection with the Second Meeting, our sponsor (or its affiliate) agreed to contribute $0.04 per redeemable share per month into the Trust Account as the Extension Payment. We (as an affiliate of our Sponsor) deposited the Extension Payment into the Trust Account, which was funded through the Working Capital Loan with our Sponsor.

Promissory Note and Advances Related Party

On June 21, 2021, the Sponsor agreed to loan the Company an aggregate of up to $400,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the “Note”). The Note was non-interest bearing and was payable on the earlier of June 21, 2022 or the completion of the Initial Public Offering. The outstanding balance under the Note was repaid on November 19, 2021. At September 30, 2023 and September 30, 2022 there were no borrowings outstanding under the Note.

In order to finance transaction costs in connection with a Business Combination, the Company’s Sponsor, an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of notes may be converted upon consummation of a Business Combination into warrants at a price of $1.00 per warrant. The warrants will be identical to the Private Placement Warrants. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. At December 31, 2022, no Working Capital Loans were outstanding.

On February 16, 2023, the Sponsor issued a Working Capital Loan to the Company in the form of an unsecured promissory note (the “Sponsor Convertible Note”). Pursuant to the Sponsor Convertible Note, the Company may borrow from the Sponsor, from time to time, up to an aggregate of $1,500,000. Borrowings under the Sponsor Convertible Note will not bear interest. The Note will mature on the earlier to occur of (i) February 19, 2024, or (ii) the consummation of the Business Combination. Up to $1,500,000 of such Sponsor Convertible Note may be converted into warrants of the post-business combination entity, which shall have terms identical to the Private Placement Warrants, at a price of $1.00 per warrant at the option of the Sponsor. The Sponsor Convertible Note contains customary events of default, including those relating to the Company’s failure to repay the principal amount due upon maturity of the Sponsor Convertible Note and certain bankruptcy events. As of September 30, 2023, the Working Capital Loan had a balance of $1,200,000.

The conversion option included in the Note is considered an embedded derivative and is remeasured at the end of each reporting period when amounts drawn will be outstanding. The value of the conversion option is de minimis as of September 30, 2023.

Administrative Support Agreement

The Company entered into an agreement, commencing on November 19, 2021 through the earlier of the Company’s consummation of a Business Combination and its liquidation, to pay the Sponsor a total of $10,000 per month for office space, utilities and secretarial and administrative support. Upon completion of the Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees. The Company has paid an aggregate of $90,000 and $90,000, as of September 30, 2023 and September 30, 2022, respectively.

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Note 6 —Investment Held in Trust Account

As of September 30, 2023, investment in the Company’s Trust Account consisted of $990 in Cash and Sweep Funds and $36,391,529 in U.S. Treasury Securities that mature on November 16, 2023.

The Company classifies its United States Treasury securities as a trading security in accordance with FASB ASC 320 “Investments — Debt and Equity Securities”. The Company classifies its United States Treasury securities as trading securities in accordance with FASB ASC 320 “Investments — Debt and Equity Securities”. The Company considers all investments with original maturities of more than three months but less than one year to be short-term investments.

Note 7 — Commitments & Contingencies

Registration Rights

Pursuant to a registration rights agreement entered into on November 17, 2021, the holders of the Founder Shares, Private Placement Warrants and any warrants that may be issued upon conversion of the Working Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to our Class A common stock). The holders of the majority of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the consummation of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriters Agreement

The underwriter is entitled to a deferred fee of $0.35 per Unit, or $5,031,250 in the aggregate. The deferred fee will become payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.

On May 3, 2023, the Company and its underwriter amended the terms of its engagement letter such that the underwriter agreed to waive the entirety of its underwriting fee in lieu of a waiver fee of $1,000,000, which is due and payable only upon the consummation of the Company’s business combination with ABM. The fee waiver applies only to a potential business combination with ABM.

Forward Purchase Agreement

On May 31, 2023, SGII and ABM entered into an OTC Equity Prepaid Forward Transaction agreement (“FSPA”) with Meteora Special Opportunity Fund I, LP, Meteora Capital Partners, LP and Meteora Select Trading Opportunities Master, LP (collectively, “Meteora”).

Pursuant to the FSPA, Meteora is expected to purchase up to 4,200,000 shares of SGII Class A common stock (“FSPA Shares”) subject to a cap of 9.9% of outstanding shares on a post-Transaction basis, at a per share price no more than the price per share paid to redeeming SGII public shareholders in connection with the vote to approve the Transactions (the “redemption price”), or up to approximately US $43 million based on the current redemption price, in advance of the consummation of the Transactions. In certain circumstances, including if Meteora purchases less than 4,200,000 FSPA Shares, it will be entitled to receive warrants to purchase shares of SGII common stock in an amount equal to the difference of 4,200,000 and the number of FSPA Shares purchased in the market by Meteora and subject to the FSPA.

In connection with its purchase of the FSPA Shares, Meteora will waive its redemption rights in connection with the shareholder vote to approve the Transactions.

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Following the closing of the Transactions, an amount equal to the number of FSPA Shares multiplied by the redemption price, less 1.00%, will be prepaid to Meteora. The remaining 1.00% (the “Prepayment Shortfall”) will be released to SGII at the closing of the Transactions. The FSPA Shares held by Meteora and subject to the FSPA may be sold into the market by Meteora at any time following the closing of the Transactions. Meteora is entitled to sell into the market FSPA Shares without any payment to SGII until the proceeds from such sales equals the Prepayment Shortfall. SGII may receive up to US $41,580,000 from the termination of all or a portion of the FSPA transaction at $10.00 per terminated FSPA Share, subject to reduction upon any Dilutive Offering Reset. To the extent Meteora elects not to terminate the FSPA transaction prior to the maturity date, SGII will be entitled to receive from Meteora the number of FSPA Shares not so terminated, and Meteora will be entitled to “maturity” consideration, paid in shares or cash, subject to the terms of the FSPA.

The FSPA expires at the third anniversary of the closing of the Transactions, subject to acceleration at the Seller’s option upon the volume weighted average price per share being at or below $5.00 per share for any 20 trading days during a 30 consecutive trading day-period and upon any delisting of SGII common stock.

The FSPA provides that Meteora is entitled to transfer and/or assign all or a portion of its rights and obligations under the FSPA to one or more third parties of its choosing. Additionally, according to the terms of the FSPA, SGII has agreed to indemnify Meteora against certain losses in connection with the FSPA and to pay certain consideration and fees, including without limitation a quarterly fee, a breakage fee and share consideration equal to 300,000 shares at the redemption price.

The Forward Purchase Agreement entered into on May 31, 2023 (“FSPA” or the “Agreement”) resulted in the investor holding a put option on the Company’s shares to sell such shares pursuant to the Agreement, up to the maximum of 4,200,000 shares. Pursuant to ASC 480, “Distinguishing Liabilities from Equity”, this instrument meets the definition of a liability and accordingly was recognized at fair value. The fair value of this put option was $2,212,335 as of September 30, 2023, assuming Meteora will purchase the maximum number of shares. The FSPA resulted in the initial recognition of a FSPA derivative liability of approximately $2,016,000 and was expensed in our statement of operations. Changes in the estimated fair value of the FSPA are recognized as a non-cash gain or loss on the statements of operations.

Note 8 — Stockholders’ Equity

Preferred Stock — The Company is authorized to issue 1,000,000 shares of $0.0001 par value preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. At September 30, 2023 and December 31, 2022, there were no shares of preferred stock issued or outstanding

Class A Common Stock (redeemable) — The Company is authorized to issue up to 100,000,000 shares of Class A, $0.0001 par value common stock. Holders of the Company’s Class A common stock are entitled to one vote for each share. At September 30, 2023 and December 31, 2022, there were 0 shares of Class A common stock issued and outstanding, excluding 3,388,729 and 14,375,000 shares of Class A common stock subject to possible redemption as of September 30, 2023 and December 31, 2022, respectively.

Class A Common Stock (non-redeemable) In connection with the Meeting, on February 16, 2023, the Sponsor converted 3,593,750 Class B common shares to shares of Class A Common Stock, subject to the same restrictions as the founder shares but non-redeemable. As of September 30, 2023, there were 3,593,750 shares of non-redeemable Class A Common Stock and as of December 31, 2022 there were no shares of non-redeemable Class A Common Stock.

Class B Common Stock — The Company is authorized to issue up to 10,000,000 shares of Class B, $0.0001 par value common stock. Holders of the Company’s Class B common stock are entitled to one vote for each share. At September 30, 2023 and December 31, 2022 there were 0 and 3,593,750 Class B common stock issued and outstanding, respectively.

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The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the Business Combination on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like. In the case that additional shares of Class A common stock, or equity linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity linked securities issued, or to be issued, to any seller in a Business Combination, and any private placement-equivalent warrants issued to the Sponsor or its affiliates upon conversion of loans made to the Company). The Company may issue additional common stock or preferred stock to complete its Business Combination or under an employee incentive plan after completion of its Business Combination.

Note 9 – Warrant Liability

The Company accounts for the warrants in accordance with the guidance contained in ASC Topic 815-40. Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly, the Company will classify each warrant as a liability at its fair value. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations.

The Public Warrants will become exercisable 30 days after the consummation of a Business Combination. No Public Warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the common shares issuable upon exercise of the Public Warrants and a current prospectus relating to such common shares. Notwithstanding the foregoing, if a registration statement covering the Class A common shares issuable upon the exercise of the Public Warrants is not effective within 60 days from the consummation of a Business Combination, the holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise the Public Warrants on a cashless basis pursuant to an available exemption from registration under the Securities Act. If an exemption from registration is not available, holders will not be able to exercise their Public Warrants on a cashless basis. The Public Warrants will expire five years from the consummation of a Business Combination or earlier upon redemption or liquidation.

The Company may call the Public Warrants for redemption (excluding the Private Placement Warrants), in whole and not in part, at a price of $0.01 per warrant:

upon not less than 30 days’ prior written notice of redemption to each Public Warrant holder,
if, and only if, the last sale price of the Company’s Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

In addition, once the warrants become exercisable, the Company may call the warrants for redemption:

in whole and not in part;
if the closing price of the shares of Class A common stock for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above.

The “fair market value” of the Class A common stock for the above purpose shall mean the volume-weighted average price of the Class A common stock during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of warrants. In no event will the warrants be exercisable in connection with this redemption feature for more than 0.361 Class A common stock per warrant (subject to adjustment).

18

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the common shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and will be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the Company’s initial Business Combination on the date of the consummation of such initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and will be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

Note 10 – Income Tax

As of September 30, 2023, and December 31, 2022, the Company’s deferred tax asset had a full valuation allowance recorded against it. Our effective tax rate was (34.09%) and (13.46%) for the three and nine months ended September 30, 2023, respectively, and 7.47% and 3.62% for the three and nine months ended September 30, 2022. The effective tax rate differs from the statutory tax rate of 21% for the three and nine months ended September 30, 2023, due to changes in fair of warrant liabilities, fair value of forward purchase agreement liabilities, merger expenses and the valuation allowance on the deferred tax assets.

19

Note 11 — Fair Value Measurements

FASB ASC Topic 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, the methods used to measure fair value and the expanded disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between the buyer and the seller at the measurement date. In determining fair value, the valuation techniques consistent with the market approach, income approach and cost approach shall be used to measure fair value. ASC 820 establishes a fair value hierarchy for inputs, which represent the assumptions used by the buyer and seller in pricing the asset or liability. These inputs are further defined as observable and unobservable inputs. Observable inputs are those that buyer and seller would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the inputs that the buyer and seller would use in pricing the asset or liability developed based on the best information available in the circumstances.

The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 1 —

Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 —

Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means.

Level 3 —

Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The fair value of the Company’s certain assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the condensed balance sheet. The fair values of cash and cash equivalents, prepaid assets, accounts payable and accrued expenses, due to related parties are estimated to approximate the carrying values as of September 30, 2023 due to the short maturities of such instruments.

The following tables present information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

    

September 30, 

    

    

    

2023

Level 1

Level 2

Level 3

Assets:

 

  

 

  

 

  

 

  

U.S. Money Market held in Trust Account

$

990

$

990

$

$

U.S. Treasury Securities held in Trust Account

 

36,391,529

 

36,391,529

 

 

$

36,392,519

$

36,392,519

$

$

September 30, 

    

2022

    

Level 1

    

Level 2

    

Level 3

Assets:

 

  

 

  

 

  

 

  

U.S. Money Market held in Trust Account

$

923

$

923

$

$

U.S. Treasury Securities held in Trust Account

 

146,762,512

 

146,762,512

 

 

$

146,763,435

$

146,763,435

$

$

20

The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2023 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value.

    

    

September 30, 

    

    

December 31, 

    

    

November 19,

    

Level

    

2023

    

Level

    

2022

    

Level 

    

2021

Liabilities:

 

  

 

  

 

  

 

  

Warrant Liability - Public Warrants

1

$

395,313

1

 

$

71,875

 

3

 

$

5,751,494

Warrants Liability - Private Placement Warrants

3

433,424

3

 

90,306

 

3

 

6,194,622

Forward purchase agreement liability

3

2,212,335

Total Derivative Liabilities

$

3,041,072

 

$

162,181

 

 

$

11,946,116

The Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within the warrant liability on our balance sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of the warrant liabilities in the statement of operations.

Warrant Liability - Initial Measurement

The Company established the initial fair value for the Public Warrants and Private Placement Warrants on November 19, 2021, the date the Company consummated its Initial Public Offering, using a Monte Carlo simulation model. The Company allocated the proceeds received from (i) the sale of Units (which is inclusive of one Class A common stock and one-half of one Public Warrant), (ii) the sale of Private Placement Warrants, and (iii) the issuance of shares of Class B common stock, first to the Warrants based on their fair values as determined at initial measurement, with the remaining proceeds allocated to Class A common stock subject to possible redemption, Class A common stock and Class B common stock based on their relative fair values at the initial measurement date. The Warrants were classified as Level 3 at the initial measurement date due to the use of unobservable inputs.

The key inputs into the Monte Carlo simulation model for the Public Warrants and Private Placement Warrants were as follows at initial measurement:

    

November 19, 2021

 

Input

(Initial Measurement)

 

Risk-free interest rate

 

1.33

%

Expected term (years)

 

5.93

Expected volatility

 

13.5

%

Stock price

$

9.6

As of November 19, 2021, the Public Warrants and Private Placement Warrants were determined to be $0.80 and $0.82 per warrant, respectively, for aggregate values of approximately $5.7 million and $6.2 million, respectively.

Warrant Liability - Subsequent Measurement

The Warrants are measured at fair value on a recurring basis. The subsequent measurement of the Public Warrants as of September 30, 2023 and December 31, 2022 is classified as Level 1 due to the use of an observable market quote in an active market and the subsequent measurement of the Private Placement Warrants as September 30, 2023 and December 31, 2022 is classified Level 3 due to the use of unobservable inputs.

The key inputs into the Monte Carlo simulation model for the Public Warrants and Private Placement Warrants were as follows at the Subsequent Measurements:

Input

    

December 31, 2022

    

September 30, 2023

Risk-free interest rate

 

4.72

%  

5.47

%

Expected term (years)

 

1.04

 

0.95

Expected volatility

 

4.3

%  

3.2

%

Stock price

$

10.19

$

10.71

21

As of December 31, 2022, the Public Warrants and Private Placement Warrants were determined to be approximately $0.02 and $0.02 per warrant for aggregate values of approximately $0.07 million and $0.09 million, respectively.

As of September 30, 2023, the Public Warrants and Private Placement Warrants were determined to be $0.06 and $0.06 per warrant for aggregate values of approximately $0.39 million and $0.43 million, respectively.

The following table presents the changes in the fair value of warrant liabilities:

    

Private

    

    

Warrant

Placement

Public

Liabilities

Fair value as of November 19, 2021

$

$

$

Initial measurement on November 19, 2021

6,194,622

5,751,494

11,946,116

Change in valuation inputs or other assumptions

 

(2,373,768)

 

(2,143,369)

 

(4,517,137)

Fair value as of December 31, 2021

$

3,820,854

$

3,608,125

$

7,428,979

Change in valuation inputs or other assumptions

(1,319,898)

(1,242,719)

(2,562,617)

Fair value as of March 31, 2022

$

2,500,956

$

2,365,406

$

4,866,362

Change in valuation inputs or other assumptions

 

(2,410,650)

 

(2,293,531)

 

(4,704,181)

Fair value as of December 31, 2022

$

90,306

$

71,875

$

162,181

Change in valuation inputs or other assumptions

392,240

360,093

752,333

Fair value as of March 31, 2023

$

482,546

$

431,968

$

914,514

Change in valuation inputs or other assumptions

196,858

178,970

375,828

Fair value as of June 30, 2023

$

679,404

$

610,938

$

1,290,342

Change in valuation inputs or other assumptions

(245,980)

(215,625)

(461,605)

Fair value as of September 30, 2023

$

433,424

$

395,313

$

828,737

Level 3 financial liabilities consist of the Private Placement Warrant liability for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate.

Forward Purchase Agreement Liabilities

The Company utilizes a Monte Carlo simulation model to value the forward purchase agreement at initiation and at the reporting period, with changes in fair value recognized in the statement of operations. Inherent in the model are assumptions related to share price on valuation date, volatilities, expected life, risk-free rate and probability of business combination. The Company estimates the pre-business combination volatility based on the low historical volatilities exhibited by the Company and SPACs-based and the post-merger volatility is estimated based on the median historical and implied volatilities exhibited by companies operating in the industry of the Company’s expected target. The risk-free interest rate is based on the 3-year and 5-year U.S. Treasury note which is similar to the expected remaining life of the forward purchase agreement. The expected life of the forward purchase agreement is assumed to be equivalent to their remaining contractual term.

In order to calculate the fair value of the forward purchase agreement liabilities, the Company utilized the following key inputs:

    

May 31, 2023

    

 

(Initial measurement)

September 30, 2023

 

Risk-free interest rate

3.95

%  

4.0

%

Expected term (years)

3.5

3.25

Stock price

 

10.35

 

10.71

Volatility – pre-business combination

 

2.6

%  

 

2.4

%

Volatility – post-business combination

 

62.9

%  

 

66.3

%

22

The following table presents the changes in the fair value of the forward purchase agreement liability measured on a recurring basis during the three and nine months ended September 30, 2023:

    

Forward Purchase Agreement

Fair value on May 31, 2023 (initial measurement)

$

2,016,000

Change in fair value of forward purchase agreement liabilities

 

(126,000)

Fair value as of June 30, 2023

1,890,000

Change in fair value of forward purchase agreement liabilities

322,335

Fair value as of September 30, 2023

 

2,212,335

The changes in the fair value of the forward purchase agreement liabilities for the three and nine months ended September 30, 2023 are $322,335 and $(196,335), respectively. There were no forward purchase agreement liabilities in 2022.

There were no transfers between fair value levels during the three and nine months ended September 30, 2023 and 2022.

Note 12 — Subsequent Events

The Company has evaluated subsequent events through the filing of this Current Report on Form 10-Q and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements contained herein.

23

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

References to “we,” “us,” “our” or the “Company” are to Seaport Global Acquisition II Corp., except where the context requires otherwise. References to our “management” or our “management team” are to our officers and directors, and references to the “sponsor” are to Seaport Global SPAC II, LLC. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Such statements include, but are not limited to, possible business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical fact included in this Form 10-Q. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings.

Overview

We are a blank check company incorporated as a Delaware corporation and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. We intend to effectuate our initial business combination using cash from the proceeds of our IPO and the Private Placement, the proceeds of the sale of our shares in connection with our initial business combination (pursuant to forward purchase agreements or backstop agreements we may enter into), shares issued to the owners of the target, debt issued to bank or other lenders or the owners of the target, or a combination of the foregoing.

The issuance of additional shares in connection with an initial business combination to the owners of the target or other investors:

may significantly dilute the equity interest of investors in our initial public offering, which dilution would increase if the anti-dilution provisions in the Class B common stock resulted in the issuance of Class A shares on a greater than one-to-one basis upon conversion of the Class B common stock;
may subordinate the rights of holders of our common stock if preferred stock is issued with rights senior to those afforded our common stock;
could cause a change in control if a substantial number of shares of our common stock is issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors;
may have the effect of delaying or preventing a change of control of us by diluting the stock ownership or voting rights of a person seeking to obtain control of us; and
may adversely affect prevailing market prices for our Class A common stock and/or warrants.

24

Similarly, if we issue debt securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations;
acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;
our immediate payment of all principal and accrued interest, if any, if the debt security is payable on demand;
our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding;
our inability to pay dividends on our common stock;
using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our common stock if declared, our ability to pay expenses, make capital expenditures and acquisitions, and fund other general corporate purposes;
limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;
increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation;
limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, and execution of our strategy; and
other purposes and other disadvantages compared to our competitors who have less debt.

We expect to continue to incur significant costs in the pursuit of our initial business combination plans. We cannot assure you that our plans to raise capital or to complete our initial business combination will be successful.

On November 19, 2021, we completed our initial public offering of 14,375,000 units, including 1,875,000 units that were issued pursuant to the underwriter’s full exercise of their over-allotment option. The units were sold at a price of $10.00 per unit, generating gross proceeds to us of $145,906,250. We incurred offering costs of approximately $8.6 million, inclusive of approximately $5.0 million in deferred underwriting commissions.

On November 19, 2021, simultaneously with the consummation of the IPO, we completed the private sale of 7,531,250 private placement warrants at a purchase price of $1.00 per warrant to our sponsor, generating gross proceeds to us of $7.5 million.

Upon the closing of our initial public offering, an aggregate of $145.9 million of the net proceeds from our initial public offering and the private placement was deposited in a trust account established for the benefit of our public stockholders.

On February 13, 2023, in connection with the Meeting, the holders of 10,125,252 public shares of common stock of the Company elected to redeem their shares for cash at a redemption price of approximately $10.27 per share, for an aggregate redemption amount of approximately $103.9 million.

At the Meeting, the date by which the Company has to consummate a business combination was extended for six months, from February 19, 2023 to August 19, 2023.

Following the Meeting and Extension Redemptions, the Company had 4,249,748 shares of Class A common stock subject to redemption outstanding, and the aggregate amount remaining in the Trust Account at the time was $43,662,709.

25

On February 14, 2023, the Sponsor, contributed to the Company for purposes of making a deposit into the Company’s trust account the Trust Shares and $84,994.96 (or $0.02 per Remaining Share) for the benefit of the public shares that were not redeemed by the public shareholders in connection with the Meeting. Following the foregoing contribution, the Sponsor owned 3,393,750 shares of Class B common stock. Effective on February 17, 2023, the Trust Shares were converted to Class A Common Stock as well.

On February 16, 2023, the Sponsor converted 3,393,750 shares of Class B Common Stock into 3,393,750 shares of Class A Common Stock, which, in addition to the Trust Shares, represents 46% of the outstanding shares of the Company’s Class A Common Stock. Effective on February 17, 2023, the Trust Shares were also converted to Class A Common Stock.

On July 26, 2023, we filed a definitive proxy statement to seek approval to amend the Company’s Amended and Restated Statement of Incorporation to extend the date by which we have to consummate a business combination (the “Combination Period”) from August 19, 2023 to up to February 19, 2024, by electing to extend the date to consummate an initial business combination on a monthly basis up to six times, or such earlier date as determined by the Board. In connection with the vote to approve this Second Extension, the holders of 861,019 public shares of common stock of the Company properly exercised their right to redeem their shares (and did not withdraw their redemption) for cash at a redemption price of approximately $10.58 per share, for an aggregate redemption amount of approximately $9.1 million (“Second Extension Redemptions”). Following the Second Extension Redemptions, the Company had 6,982,479 shares of common stock outstanding, and the aggregate amount remaining in the Trust Account at the time was approximately $35.8 million. In connection with the Second Extension, on August 16, 2023, we contributed an additional $135,549 pursuant to a loan from our Sponsor to the Trust Account (“Extension Payment”), bringing the total in the Trust Account to approximately $36.0 million. Also on August 16, 2023, we amended our Trust Agreement with the Trustee. Since August 16, we have made two additional Extension Payments into the Trust Account. Pursuant to an amendment to the Merger Agreement, ABM was obligated to pay $0.015 per share of the Extension Payments in cash, or else it was obligated to contribute additional shares to our Sponsor at the closing. To date, ABM has not made any such payments in cash.

Our Amended and Restated Certificate of Incorporation provides that we will have until February 19, 2024 to complete our initial business combination. If we are unable to complete our initial business combination by February 19, 2024, we will: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including interest earned on the funds held in the trust account and not previously released to us to pay our taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There are no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to complete our initial business combination before February 19, 2024.

In connection with the execution of the Merger Agreement, SGII and ABM entered into a prepaid forward purchase agreement (“FSPA”) with (i) Meteora Special Opportunity Fund I, LP, (ii) Meteora Capital Partners, LP and (iii) Meteora Select Trading Opportunities Master, LP (collectively, “Meteora”). Pursuant to the forward purchase agreement, Meteora is expected to purchase up to 4,200,000 shares of SGII Class A common stock (“FSPA Shares”) subject to a cap of 9.9% of outstanding shares on a post-Transaction basis, at a per share price no more than the price per share paid to redeeming SGII public shareholders in connection with the vote to approve the Transactions (the “redemption price”), or up to approximately US $43 million based on the current redemption price, in advance of the consummation of the Transactions. In certain circumstances, including if Meteora purchases less than 4,200,000 FSPA Shares, it will be entitled to receive warrants to purchase shares of SGII common stock in an amount equal to the difference of 4,200,000 and the number of FSPA Shares purchased in the market by Meteora and subject to the FSPA. The form of warrant shall be agreed upon by the parties within forty-five (45) days of the execution of the FSPA. Such warrants will be exercisable at US $10.00 per share, subject to reduction upon any Dilutive Offering Reset (as defined in the FSPA). In connection with its purchase of the FSPA Shares, Meteora will waive its redemption rights in connection with the shareholder vote to approve the Transactions. Entities and funds managed by Meteora own equity interests in the Sponsor. Such waiver may reduce the number of shares of SGII Class A common stock redeemed in connection with the Transactions, which reduction could alter the perception of the potential strength of the Transactions.

Following the closing of the Transactions, an amount equal to the number of FSPA Shares multiplied by the redemption price, less 1.00%, will be prepaid to Meteora. The remaining 1.00% (the “Prepayment Shortfall”) will be released to SGII at the closing of the Transactions. The FSPA Shares held by Meteora and subject to the FSPA may be sold into the market by Meteora at any time following the closing of the Transactions. Meteora is entitled to sell into the market FSPA Shares without any payment to SGII until the proceeds

26

from such sales equals the Prepayment Shortfall. SGII may receive up to US $41,580,000 from the termination of all or a portion of the FSPA transaction at $10.00 per terminated FSPA Share, subject to reduction upon any Dilutive Offering Reset. To the extent Meteora elects not to terminate the FSPA transaction prior to the maturity date, SGII will be entitled to receive from Meteora the number of FSPA Shares not so terminated, and Meteora will be entitled to “maturity” consideration, paid in Shares or cash, subject to the terms of the FSPA. The maturity date is the third anniversary of the closing of the Transactions, subject to acceleration at the Seller’s option upon the volume weighted average price per share being at or below $5.00 per share for any 20 trading days during a 30 consecutive trading day-period and upon any delisting of SGII common stock.

The FSPA provides that Meteora is entitled to transfer and/or assign all or a portion of its rights and obligations under the FSPA to one or more third parties of its choosing. Additionally, according to the terms of the FSPA, SGII has agreed to indemnify Meteora against certain losses in connection with the FSPA and to pay certain consideration and fees, including without limitation a quarterly fee, a breakage fee and share consideration equal to 300,000 shares at the redemption price.

Results of Operations and Known Trends or Future Trends

We have neither engaged in any significant operations nor generated any operating revenue to date. Our only activities from inception related to our formation and our IPO, and since the closing of our initial public offering, the search for a prospective initial business combination. Although we have not generated operating revenue, we have generated non-operating income in the form of investment income from investments held in the trust account. We expect to incur increased expenses as a result of being a public company, as well as costs in the pursuit of an initial business combination.

We classify the warrants issued in connection with our Initial Public Offering as liabilities at their fair value and adjust the warrant instrument to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations.

During the three months ended September 30, 2023, we had net income (loss) of $(395,997), which consisted of $529,408 in investment income (loss) and $461,605 of change in fair value of the warrant liability, offset by a $322,335 change forward purchase agreement liability, $914,000 in general and administrative expenses, $50,000 in franchise tax obligations and $100,675 in income tax.

During the nine months ended September 30, 2023, we had net income (loss) of $(3,598,813), which consisted of $2,182,510 in investment income offset by $(666,656) of change in the fair value of the warrant liability, $2,325,429 in general and administrative expenses, $150,000 in franchise tax obligations and $427,003 in income tax.  Additionally, the Company incurred an expense of $(2,212,335) for the change in value of the forward purchase agreement liability, which consisted of an initial measurement of $(2,016,000) and a decrease in fair value of $(196,335).

Liquidity and Capital Resources

As of September 30, 2023, the Company had approximately $0.03 million in its operating bank accounts and a working capital deficit of approximately $(4.4) million. Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination. Further, the Company has incurred and expects to continue to incur significant costs in pursuit of its acquisition plans.

The possibility exists that within the coming 12 months the Company will need to raise additional capital through loans or additional investments from its Sponsor, stockholders, officers, directors, or third parties. In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the initial stockholders or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete a Business Combination, we would repay such loaned amounts. In the event that a Business Combination does not close, we may use a portion of the working capital held outside the Trust Account to repay such loaned amounts but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into warrants identical to the Private Placement Warrants, at a price of $1.00 per warrant at the option of the lender.

On February 16, 2023, the Sponsor entered into a promissory note in the amount of $1,500,000. As of September 30, 2023, $1,200,000 was outstanding on the promissory note.

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There is no guaranty the Company may be able to obtain additional financing if and when needed. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company’s ability to continue as a going concern through one year and one day from the date of issuance of these financial statements. These conditions raise substantial doubt about our ability to continue as a going concern. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

Going Concern

In connection with our assessment of going concern considerations in accordance with the authoritative guidance in Financial Accounting Standard Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that the mandatory liquidation and subsequent dissolution, should we be unable to complete a business combination, raises substantial doubt about the our ability to continue as a going concern. We have until the end of the Combination Period to consummate a Business Combination. It is uncertain that we will be able to consummate a Business Combination by this time. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after the end of the Combination Period.

Further, we have incurred and expect to continue to incur significant costs in pursuit of our financing and acquisition plans. We cannot assure you that our plans to raise capital or to complete an initial business combination will be successful. These factors, among others, raise substantial doubt about our ability to continue as a going concern. The financial statements contained elsewhere in this Form 10-K do not include any adjustments that might result from our inability to complete a Business Combination or our inability to continue as a going concern.

Related Party Transactions

Founder Shares

In June 2021, our sponsor purchased 4,312,500 founder shares for an aggregate purchase price of $25,000, or approximately $0.006 per share. Subsequently, in August 2021, our sponsor forfeited an aggregate of 718,750 shares for no consideration, thereby resulting in 3,593,750 remaining founder shares. Prior to the initial investment in the company of $25,000 by our Sponsor, the company had no assets, tangible or intangible. The per share purchase price of the founder shares was determined by dividing the amount of cash contributed to the company by the aggregate number of founder shares issued. The number of founder shares issued was determined based on the expectation that the founder shares would represent 20% of the outstanding shares after the IPO. As such, our initial stockholders collectively own 20% of our issued and outstanding shares after the IPO.

Our initial stockholders have agreed not to transfer, assign or sell any of their founder shares until the earlier to occur of (A) one year after the completion of our initial business combination or (B) subsequent to our initial business combination, (x) if the last reported sale price of our Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after our initial business combination, or (y) the date on which we complete a liquidation, merger, capital stock exchange, reorganization or other similar transaction that results in all of our stockholders having the right to exchange their shares of common stock for cash, securities or other property. Any permitted transferees will be subject to the same restrictions and other agreements of our initial stockholders with respect to any founder shares.

In February 2023, our Sponsor contributed the Trust Shares and $84,994 (or $0.02 per remaining share) to Company’s trust account in connection with the Meeting. Also in February 2023, the Sponsor converted its remaining 3,393,750 founder shares to shares of Class A Common Stock, subject to the same restrictions as the founder shares. Effective on February 17, 2023, the Trust Shares were converted to Class A Common Stock as well.

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Private Placement Warrants

Simultaneously with the consummation of our initial public offering, we completed the private placement of warrants to our sponsor, generating gross proceeds of $7,531,250. Each Private Placement Warrant is exercisable for one share of our Class A common stock at an exercise price of $11.50 per share. A portion of the purchase price of the Private Placement Warrants was added to the proceeds from our initial public offering held in the trust account. If our initial business combination is not completed by the end of the Combination Period, the proceeds from the sale of the Private Placement Warrants held in the trust account will be used to fund the redemption of the public shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. The Private Placement Warrants will be non-redeemable for cash and exercisable on a cashless basis so long as they are held by the sponsor or its permitted transferees.

Our sponsor agreed, subject to limited exceptions, not to transfer, assign or sell any of its Private Placement Warrants until 30 days after the completion of our initial business combination.

Promissory Note – Related Party

In June 2021, the Sponsor agreed to loan the Company an aggregate of up to $400,000 to cover expenses related to the IPO pursuant to a promissory note (the “Note”). The non-interest bearing Note was repaid upon completion of the IPO on November 19, 2021.

On February 16, 2023, the Sponsor issued a Sponsor Convertible Note in the amount of $1,500,000, pursuant to which the Company may request to borrow up to $1,500,000 from the Sponsor for translation costs reasonably related to the consummation of the Business Combination. Any advances under the Sponsor Convertible Note shall be made at the sole discretion of the Sponsor. As of September 30, 2023, the outstanding balance on the Sponsor Convertible Note was $1,200,000.

Administrative Support Agreement

We agreed to pay $10,000 a month for office space, utilities, and secretarial and administrative support to our sponsor. Services commenced on the date the securities were first listed on the Nasdaq and will terminate upon the earlier of our initial business combination or our liquidation. We incurred approximately $90,000 for expenses in connection with such services for the period from December 31, 2022 through September 30, 2023, which is reflected in the accompanying statement of operations.

Critical Accounting Policies and Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from these estimates. We have identified the following critical accounting policies:

Investments Held in Trust Account

Our portfolio of investments held in trust account are comprised mainly of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, classified as trading securities. Trading securities are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in investment income from investments held in trust account in our statement of operations. The fair value for trading securities is determined using quoted market prices in active markets.

Class A Common Stock Subject to Possible Redemption

The Company accounts for its common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ deficit. The Company’s common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at December 31, 2022, common

29

stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ deficit section of the Company’s balance sheet.

Warrant and Forward Purchase Agreement Liabilities

The Company accounts for warrants and forward purchase agreements as either equity-classified or liability-classified instruments based on an assessment of the warrant’s and forward purchase agreement’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants and forward purchase agreement are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants and forward purchase agreement meet all of the requirements for equity classification under ASC 815, including whether the warrants and forward purchase agreement are indexed to the Company’s own common shares and whether the warrant and forward purchase agreement holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant and forward purchase agreement issuance and as of each subsequent quarterly period end date while the warrants forward purchase agreement are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.

The Forward Purchase Agreement entered into on May 31, 2023 (“FSPA” or the “Agreement”) resulted in Meteora holding a put option to sell up to a maximum of 4,200,000 of the Company’s shares. Pursuant to ASC 480, “Distinguishing Liabilities from Equity”, this instrument meets the definition of a liability and accordingly was recognized at fair value. The FSPA resulted in the initial recognition of a forward purchase agreement liability of approximately $2,016,000 and was expensed in our statement of operations. The fair value of this put option was $2,212,335 as of September 30, 2023 and zero at December 31, 2022, assuming the investor will purchase the maximum number of shares. Changes in the estimated fair value of the FSPA are recognized as a non-cash gain or loss on the statements of operations.

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. We are currently evaluating the impact of this standard on its financial statements and related disclosures.

We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material impact on our financial statements.

Off-Balance Sheet Arrangements; Commitments and Contractual Obligations

We did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K, as of December 31, 2019. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

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JOBS Act

On April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We qualify as an “emerging growth company” and under the JOBS Act and are allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, our financial statements may not be comparable to those of companies that comply with new or revised accounting pronouncements as of public company effective dates.

In addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take advantage of the benefits of this extended transition period. We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following November 26, 2024, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our Class A common stock that is held by non-affiliates exceeds $700 million as of the prior June 30th, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt securities during the prior three-year period.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Through September 30, 2023, our efforts have been limited to organizational activities, activities relating to our initial public offering and since the initial public offering, and the search for a target business with which to consummate an initial business combination. We have engaged in limited operations and have not generated any revenues. We have not engaged in any hedging activities since our inception on June 21, 2021. We do not expect to engage in any hedging activities with respect to the market risk to which we are exposed.

The remaining net proceeds of the initial public offering and the sale of the private placement warrants held in the trust account have been invested in U.S. government treasury bills with a maturity of 180 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. Due to the short-term nature of these investments, we believe there will be no associated material exposure to interest rate risk.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Material Weakness

Under the supervision and with the participation of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) as of the fiscal quarter ended September 30, 2023. Based on this evaluation, our principal executive officer and principal financial and accounting officer have concluded that during the period covered by this Quarterly Report our disclosure controls and procedures were not effective due to a material weakness in our internal controls over financial reporting related to analyzing complex financial instruments, review of accruals, and review of the cash flow statement.

Remedial Actions

In light of the identified material weakness, we have begun to enhance our processes, policies and procedures regarding financial period closure and financial statement preparation to ensure that they are sufficiently documented and formalized. In connection

31

therewith, we have further formalized our processes and increased communication among our personnel and third-party professionals with whom we consult. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Management’s Report on Internal Controls over Financial Reporting

As required by SEC rules and regulations implementing Section 404 of the Sarbanes-Oxley Act, our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)). Our internal control over financial reporting is a process designed under the supervision of our Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with GAAP.

Our internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements in our financial statements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Management conducted an assessment of the effectiveness of our internal control over financial reporting as of September 30, 2023, based on the framework established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Based on the assessment, management has determined that our internal control over financial reporting as of September 30, 2023, was not effective.

Management identified a material weakness in our policies and procedures regarding financial period closure and financial statement preparation, in that such policies and procedures were not sufficiently documented and formalized to ensure that financial information and financial statements could be prepared accurately, efficiently and timely in accordance with U.S. GAAP and the SEC’s reporting requirements.

In light of the identified material weakness, we have begun to enhance our processes, policies and procedures regarding financial period closure and financial statement preparation to ensure that they are sufficiently documented and formalized. In connection therewith, we have further formalized our processes and increased communication among our personnel and third-party professionals with whom we consult. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors.

As of the date of this Quarterly Report, there have been no material changes with respect to those risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit No.

    

Description

31.1*

Certification of the Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a).

31.2*

Certification of the Chief Financial Officer required by Rule 13a-14(a) or Rule 15d-14(a).

32.1**

Certification of the Chief Executive Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350.

32.2**

Certification of the Chief Financial Officer required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. 1350.

101.INS

Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH

Inline XBRL Taxonomy Extension Schema Document.

101.CAL

Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF

Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB

Inline XBRL Taxonomy Extension Labels Linkbase Document.

101.PRE

Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104

Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit).

*

Filed herewith.

**

Furnished.

33

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

SEAPORT GLOBAL ACQUISITION II CORP.

By:

/s/ Steve Smith

Name:

Steve Smith

Title:

Chief Executive Officer (principal executive officer)

By:

/s/ Jay Burnham

Name:

Jay Burnham

Title:

Chief Financial Officer (principal financial officer and principal accounting officer)

Dated November 13, 2023

34

Exhibit 31.1

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Stephen Smith, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q for the three months ended September 30, 2023 of Seaport Global Acquisition II Corp.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting;

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

13

Date: November 13, 2023

By:

/s/ Stephen Smith

Stephen Smith

Chief Executive Officer

(Principal Executive Officer)


Exhibit 31.2

CERTIFICATION PURSUANT TO

RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jay Burnham, certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q for the three months ended September 30, 2023 of Seaport Global Acquisition II Corp.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2023

By:

/s/ Jay Burnham

Jay Burnham

Chief Financial Officer

(Principal Financial and Accounting Officer)


Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Seaport Global Acquisition II Corp. (the “Company”) on Form 10-Q for the three and nine months ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Stephen Smith, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

November 13, 2023

/s/ Stephen Smith

Stephen Smith

Chief Executive Officer

(Principal Executive Officer)


Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. §1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Seaport Global Acquisition II Corp. (the “Company”) on Form 10-Q for the three and nine months ended September 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jay Burnham, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in this Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

November 13, 2023

/s/ Jay Burnham

Jay Burnham

Chief Financial Officer

(Principal Financial and Accounting Officer)


v3.23.3
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2023
Nov. 10, 2023
Document and Entity Information    
Document Type 10-Q  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2023  
Entity Registrant Name Seaport Global Acquisition II Corp.  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-41075  
Entity Tax Identification Number 87-1326052  
Entity Address, Address Line One 360 Madison Avenue, 23rd Floor  
Entity Address, City or Town New York  
Entity Address State Or Province NY  
Entity Address, Postal Zip Code 10017  
City Area Code 212  
Local Phone Number 616-7700  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company true  
Entity Ex Transition Period false  
Entity Shell Company true  
Entity Common Stock, Shares Outstanding   6,982,479
Entity Central Index Key 0001869824  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Units, each consisting of one share of Class A common stock and one-half of one redeemable warrant    
Document and Entity Information    
Title of 12(b) Security Units, each consisting of one share of Class A common stock and one-half of one redeemable warrant  
Trading Symbol SGIIU  
Security Exchange Name NASDAQ  
Class A common stock    
Document and Entity Information    
Title of 12(b) Security Class A common stock, par value $0.0001 per share  
Trading Symbol SGII  
Security Exchange Name NASDAQ  
Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50    
Document and Entity Information    
Title of 12(b) Security Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share  
Trading Symbol SGIIW  
Security Exchange Name NASDAQ  
v3.23.3
CONDENSED BALANCE SHEETS - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Current assets    
Cash $ 31,494 $ 292,717
Prepaid expenses 181,139 61,863
Income tax receivable   113,624
Total current assets 212,633 468,204
Cash and securities held in Trust Account 36,392,519 147,639,566
Total Assets 36,605,152 148,107,770
Current liabilities:    
Accounts payable and accrued expenses 2,153,357 827,669
Franchise tax payable 30,000 $ 179,951
Convertible promissory note - related party $ 1,200,000  
Notes Payable, Current, Related Party, Type [Extensible Enumeration] Related Party [Member] Related Party [Member]
Excise tax payable $ 1,131,343  
Current taxes payable 108,767  
Total current liabilities 4,623,467 $ 1,007,620
Income taxes payable   132,872
Deferred underwriting fee payable 5,031,250 5,031,250
Warrant liability 828,737 162,181
Forward purchase agreement liability 2,212,335  
Total liabilities 12,695,789 6,333,923
Commitments and contingencies
Stockholders' Deficit:    
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding
Accumulated deficit (12,404,748) (5,238,270)
Total stockholders' deficit (12,404,389) (5,237,911)
Total Liabilities and Stockholders' Deficit 36,605,152 148,107,770
Class A common stock subject to possible redemption    
Current liabilities:    
Class A common stock subject to possible redemption, $0.0001 par value; 3,388,729 shares and 14,375,000 shares issued and outstanding at redemption value at September 30, 2023 and December 31, 2022 respectively 36,313,752 147,011,758
Class A common stock non-redeemable    
Stockholders' Deficit:    
Common stock $ 359 0
Class B common stock    
Stockholders' Deficit:    
Common stock   $ 359
v3.23.3
CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares
Sep. 30, 2023
Dec. 31, 2022
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares authorized (in shares) 1,000,000 1,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Class A common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
Class A common stock subject to possible redemption    
Class A common stock subject to possible redemption, par value (in dollars per share) $ 0.0001 $ 0.0001
Class A common stock subject to possible redemption, issued (in shares) 3,388,729 14,375,000
Class A common stock subject to possible redemption, outstanding (in shares) 3,388,729 14,375,000
Class A common stock non-redeemable    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 100,000,000 100,000,000
Common stock, shares issued (in shares) 3,593,750 0
Common stock, shares outstanding (in shares) 3,593,750 0
Class B common stock    
Common stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Common stock, shares authorized (in shares) 10,000,000 10,000,000
Common stock, shares issued (in shares) 0 3,593,750
Common stock, shares outstanding (in shares) 0 3,593,750
v3.23.3
CONDENSED STATEMENTS OF OPERATIONS - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
General and administrative expense $ 914,000 $ 337,271 $ 2,325,429 $ 1,631,493
Franchise tax expense 50,000 49,913 150,000 148,148
Loss from operations (964,000) (387,184) (2,475,429) (1,779,641)
Other income (loss):        
Gain on marketable securities held in Trust Account 529,408 693,891 2,182,510 890,956
Change in fair value of warrant liability 461,605 1,636,842 (666,556) 5,093,141
Initial measurement of forward purchase agreement liability     (2,016,000)  
Change in fair value of forward purchase agreement liability (322,335)   (196,335)  
Total other income, net 668,678 2,330,733 (696,381) 5,984,097
Income (loss) before provision for income taxes (295,322) 1,943,549 (3,171,810) 4,204,456
Provision for income taxes 100,675 145,333 427,003 152,157
Net income (loss) (395,997) 1,798,216 (3,598,813) 4,052,299
Class A redeemable common stock        
Other income (loss):        
Net income allocable $ (204,505) $ 1,438,573 $ (2,213,599) $ 3,421,839
Basic and diluted net income per share        
Weighted average shares outstanding, basic 3,837,956 14,375,000 5,742,884 14,375,000
Weighted average shares outstanding, diluted 3,837,956 14,375,000 5,742,884 14,375,000
Basic net income per common share $ (0.05) $ 0.10 $ (0.39) $ 0.23
Diluted net income per common share $ (0.05) $ 0.10 $ (0.39) $ 0.23
Class A non-redeemable common stock        
Other income (loss):        
Net income allocable $ (191,492) $ 359,643 $ (1,385,214) $ 810,460
Basic and diluted net income per share        
Weighted average shares outstanding, basic 3,593,750 3,593,750 3,593,750 3,593,750
Weighted average shares outstanding, diluted 3,593,750 3,593,750 3,593,750 3,593,750
Basic net income per common share $ (0.05) $ 0.10 $ (0.39) $ 0.23
Diluted net income per common share $ (0.05) $ 0.10 $ (0.39) $ 0.23
v3.23.3
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)
Class A common stock subject to possible redemption
Common Stock
Class A common stock subject to possible redemption
Class A common stock non-redeemable
Common Stock
Class B common stock
Common Stock
Accumulated Deficit
Total
Balance at the beginning at Dec. 31, 2021 $ 145,906,254          
Balance at the beginning (in shares) at Dec. 31, 2021 14,375,000          
Balance at the end at Jun. 30, 2022 $ 145,906,254          
Balance at the end (in shares) at Jun. 30, 2022 14,375,000          
Balance at the beginning at Dec. 31, 2021 $ 145,906,254          
Balance at the beginning (in shares) at Dec. 31, 2021 14,375,000          
Balance at the beginning at Dec. 31, 2021       $ 359 $ (10,894,548) $ (10,894,189)
Balance at the beginning (in shares) at Dec. 31, 2021       3,593,750    
Increase (Decrease) in Stockholders' Equity            
Net income (loss)         2,254,083 2,254,083
Balance at the end at Jun. 30, 2022 $ 145,906,254          
Balance at the end (in shares) at Jun. 30, 2022 14,375,000          
Balance at the end at Jun. 30, 2022       $ 359 (8,640,465) (8,640,106)
Balance at the end (in shares) at Jun. 30, 2022       3,593,750    
Balance at the beginning at Dec. 31, 2021 $ 145,906,254          
Balance at the beginning (in shares) at Dec. 31, 2021 14,375,000          
Balance at the end at Sep. 30, 2022 $ 146,492,458          
Balance at the end (in shares) at Sep. 30, 2022 14,375,000          
Balance at the beginning at Dec. 31, 2021 $ 145,906,254          
Balance at the beginning (in shares) at Dec. 31, 2021 14,375,000          
Balance at the beginning at Dec. 31, 2021       $ 359 (10,894,548) (10,894,189)
Balance at the beginning (in shares) at Dec. 31, 2021       3,593,750    
Increase (Decrease) in Stockholders' Equity            
Net income (loss)           4,052,299
Balance at the end at Sep. 30, 2022 $ 146,492,458          
Balance at the end (in shares) at Sep. 30, 2022 14,375,000          
Balance at the end at Sep. 30, 2022       $ 359 (7,428,453) (7,428,094)
Balance at the end (in shares) at Sep. 30, 2022       3,593,750    
Balance at the beginning at Jun. 30, 2022 $ 145,906,254          
Balance at the beginning (in shares) at Jun. 30, 2022 14,375,000          
Balance at the end at Sep. 30, 2022 $ 146,492,458          
Balance at the end (in shares) at Sep. 30, 2022 14,375,000          
Balance at the beginning at Jun. 30, 2022 $ 145,906,254          
Balance at the beginning (in shares) at Jun. 30, 2022 14,375,000          
Balance at the beginning at Jun. 30, 2022       $ 359 (8,640,465) (8,640,106)
Balance at the beginning (in shares) at Jun. 30, 2022       3,593,750    
Increase (Decrease) in Stockholders' Equity            
Net income (loss)         1,798,216 1,798,216
Remeasurement of Class A ordinary shares to redemption value $ 586,204       (586,204) (586,204)
Balance at the end at Sep. 30, 2022 $ 146,492,458          
Balance at the end (in shares) at Sep. 30, 2022 14,375,000          
Balance at the end at Sep. 30, 2022       $ 359 (7,428,453) (7,428,094)
Balance at the end (in shares) at Sep. 30, 2022       3,593,750    
Balance at the beginning at Dec. 31, 2022 $ 147,011,758 $ 147,011,758        
Balance at the beginning (in shares) at Dec. 31, 2022 14,375,000 14,375,000        
Balance at the end at Jun. 30, 2023 $ 44,709,514          
Balance at the end (in shares) at Jun. 30, 2023 4,249,748          
Balance at the beginning at Dec. 31, 2022 $ 147,011,758 $ 147,011,758        
Balance at the beginning (in shares) at Dec. 31, 2022 14,375,000 14,375,000        
Balance at the beginning at Dec. 31, 2022       $ 359 (5,238,270) (5,237,911)
Balance at the beginning (in shares) at Dec. 31, 2022       3,593,750    
Increase (Decrease) in Stockholders' Equity            
Net income (loss)         (3,202,816) (3,202,816)
Redemption of Class A ordinary shares $ (104,028,741)          
Redemption of Class A ordinary shares (in share) (10,125,252)          
Remeasurement of Class A ordinary shares to redemption value $ 1,726,497       (1,726,497) (1,726,497)
Conversion of Class B common shares to Class A common shares     $ 359 $ (359)    
Conversion of Class B common shares to Class A common shares (in shares)     3,593,750 (3,593,750)    
Excise tax on redeemed shares         (1,040,287) (1,040,287)
Balance at the end at Jun. 30, 2023 $ 44,709,514          
Balance at the end (in shares) at Jun. 30, 2023 4,249,748          
Balance at the end at Jun. 30, 2023     $ 359   (11,207,870) (11,207,511)
Balance at the end (in shares) at Jun. 30, 2023     3,593,750      
Balance at the beginning at Dec. 31, 2022 $ 147,011,758 $ 147,011,758        
Balance at the beginning (in shares) at Dec. 31, 2022 14,375,000 14,375,000        
Balance at the end at Sep. 30, 2023 $ 36,313,752 $ 36,313,752        
Balance at the end (in shares) at Sep. 30, 2023 3,388,729 3,388,729        
Balance at the beginning at Dec. 31, 2022 $ 147,011,758 $ 147,011,758        
Balance at the beginning (in shares) at Dec. 31, 2022 14,375,000 14,375,000        
Balance at the beginning at Dec. 31, 2022       $ 359 (5,238,270) (5,237,911)
Balance at the beginning (in shares) at Dec. 31, 2022       3,593,750    
Increase (Decrease) in Stockholders' Equity            
Net income (loss)           (3,598,813)
Balance at the end at Sep. 30, 2023 $ 36,313,752 $ 36,313,752        
Balance at the end (in shares) at Sep. 30, 2023 3,388,729 3,388,729        
Balance at the end at Sep. 30, 2023     $ 359   (12,404,748) (12,404,389)
Balance at the end (in shares) at Sep. 30, 2023     3,593,750      
Balance at the beginning at Jun. 30, 2023 $ 44,709,514          
Balance at the beginning (in shares) at Jun. 30, 2023 4,249,748          
Balance at the end at Sep. 30, 2023 $ 36,313,752 $ 36,313,752        
Balance at the end (in shares) at Sep. 30, 2023 3,388,729 3,388,729        
Balance at the beginning at Jun. 30, 2023 $ 44,709,514          
Balance at the beginning (in shares) at Jun. 30, 2023 4,249,748          
Balance at the beginning at Jun. 30, 2023     $ 359   (11,207,870) (11,207,511)
Balance at the beginning (in shares) at Jun. 30, 2023     3,593,750      
Increase (Decrease) in Stockholders' Equity            
Net income (loss)         (395,997) (395,997)
Redemption $ (9,105,587)          
Redemption (in shares) (861,019)          
Remeasurement of Class A ordinary shares to redemption value $ 709,825       (709,825) (709,825)
Excise tax on redeemed shares         (91,056) (91,056)
Balance at the end at Sep. 30, 2023 $ 36,313,752 $ 36,313,752        
Balance at the end (in shares) at Sep. 30, 2023 3,388,729 3,388,729        
Balance at the end at Sep. 30, 2023     $ 359   $ (12,404,748) $ (12,404,389)
Balance at the end (in shares) at Sep. 30, 2023     3,593,750      
v3.23.3
CONDENSED STATEMENT OF CASH FLOW - USD ($)
9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Cash flows from operating activities:    
Net income (loss) $ (3,598,813) $ 4,052,299
Adjustments to reconcile net income (loss)to net cash used in operating activities:    
Interest earned on marketable securities held in Trust Account (2,182,510) (5,093,141)
Initial measurement of forward purchase agreement liability 2,016,000  
Change in fair value of forward purchase agreement liability 196,335  
Change in fair value of warrant liability 666,556 (890,956)
Changes in operating assets and liabilities:    
Prepaid expenses (119,276) 428,136
Accounts payable and accrued expenses 1,325,688 682,729
Franchise tax payable (149,951) 107,348
Income tax payable 89,519 138,068
Net cash used in operating activities (1,756,452) (575,517)
Cash flows from investing activities:    
Payment for extension into Trust Account (356,094)  
Proceeds from withdrawal of Trust Account 651,323 40,747
Cash withdrawn from Trust Account in connection with redemption 113,134,328  
Net cash provided by investing activities 113,429,557 40,747
Cash flows from financing activities:    
Proceeds from promissory note - related party 1,200,000  
Redemption of ordinary shares (113,134,328)  
Net cash used in financing activities (111,934,328)  
Net change in cash (261,223) (534,770)
Cash, beginning of period 292,717 954,598
Cash, end of the period 31,494 419,828
Supplemental cash flow information:    
Cash paid for income taxes 337,426 14,000
Supplemental disclosure of non-cash investing and financing activities:    
Remeasurement adjustment on redeemable common stock 2,436,322 $ 586,204
Excise tax payable on redeemed shares 1,131,343  
Forward purchase agreement liability $ 2,212,335  
v3.23.3
Organization and Business Operation
9 Months Ended
Sep. 30, 2023
Organization and Business Operation  
Organization and Business Operation

Note 1 — Organization and Business Operation

Seaport Global Acquisition II Corp. (the “Company”) is a blank check company incorporated in Delaware on June 21, 2021. The Company was formed for the purpose of effectuating a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with one or more businesses (the “Business Combination”). The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

As of September 30, 2023, the Company had not yet commenced any operations. All activity for the period from January 1, 2023 through September 30, 2023, and the prior year comparable period, relates to the Company’s formation, initial public offering (the “Initial Public Offering”), which is described below, and the Company’s search for a Target for its Business Combination. On June 1, 2023, the Company entered into an Agreement and Plan of Merger (“Merger Agreement”) by and among the Company, Lithium Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Merger Sub”), and American Battery Materials, Inc. (OTC Pink: BLTH), a Delaware corporation (“ABM”). ABM is an exploration stage company focused on environmentally friendly direct lithium extraction and other minerals critical to the global energy transition.

The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.

The registration statement for the Company’s Initial Public Offering was declared effective on November 17, 2021. On November 19, 2021, the Company consummated the Initial Public Offering of 14,375,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), which includes the full exercise by the underwriter of the overallotment option to purchase an additional 1,875,000 Units at $10.00 per Unit, generating gross proceeds of $143,750,000, which is described in Note 3.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 7,531,250 warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to Seaport Global SPAC II, LLC (the “Sponsor”) generating gross proceeds of $7,531,250, which is described in Note 4.

Following the closing of the Initial Public Offering on November 19, 2021 an amount of $145,906,250 ($10.15 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less, or in money market funds investing solely in United States government treasury obligations and meeting the conditions of paragraphs (d)(1), (d)(2), (d)(3) and (d)(4) of Rule 2a-7 under the Investment Company Act (or any successor rule), until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the funds in the Trust Account to the Company’s stockholders, as described below.

The Company’s management has broad discretion with respect to the specific application of the remaining net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the remaining net proceeds are intended to be applied generally toward consummating a Business Combination. NASDAQ rules provide that the Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the balance in the Trust Account (less any deferred underwriting commissions and taxes payable on interest earned on the Trust Account) at the time of the signing a definitive agreement to enter a Business Combination. The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to successfully effect a Business Combination.

The Company will provide its holders of the outstanding Public Shares (the “public stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. In connection with a proposed Business Combination, the Company may seek stockholder approval of a Business Combination at a meeting called for such purpose at which stockholders may seek to redeem their shares, regardless of whether they vote for or against a Business Combination. The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 either immediately prior to or upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the outstanding shares voted are voted in favor of the Business Combination.

If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Company’s Amended and Restated Certificate of Incorporation provides that, a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from seeking redemption rights with respect to 20% or more of the Public Shares without the Company’s prior written consent.

The public stockholders will be entitled to redeem their shares for a pro rata portion of the amount then in the Trust Account (initially $10.15 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The per-share amount to be distributed to stockholders who redeem their shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriter (as discussed in Note 7). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants.

If a stockholder vote is not required and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation, offer such redemption pursuant to the tender offer rules of the Securities and Exchange Commission (the “SEC”), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination.

The Company’s Sponsor has agreed (a) to vote its Founder Shares (as defined in Note 5), and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination, (b) not to propose an amendment to the Company’s Amended and Restated Certificate of Incorporation with respect to the Company’s pre-Business Combination activities prior to the consummation of a Business Combination unless the Company provides dissenting public stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment; (c) not to redeem any shares (including the Founder Shares) and Private Placement Warrants (including underlying securities) into the right to receive cash from the Trust Account in connection with a stockholder vote to approve a Business Combination (or to sell any shares in a tender offer in connection with a Business Combination if the Company does not seek stockholder approval in connection therewith) or a vote to amend the provisions of the Amended and Restated Certificate of Incorporation relating to stockholders’ rights of pre-Business Combination activity and (d) that the Founder Shares and Private Placement Warrants (including underlying securities) shall not participate in any liquidating distributions upon winding up if a Business Combination is not consummated. However, the Sponsor will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares purchased during or after the Initial Public Offering if the Company fails to complete its Business Combination.

The Company initially had until February 19, 2023 to complete a Business Combination (the “Combination Period”). On February 13, 2023, the Company held a special meeting of stockholders (the “Meeting”), during which the stockholders of the Company approved a proposal to extend the Combination Period to August 19, 2023 and allow holders of shares of Class B Common stock to convert such shares at any time at the election of the holder. On August 14, 2023, the Company held a special meeting of stockholders (the “Second Meeting”), during which the stockholders of the Company approved a proposal to extend the Combination Period by up to six one month extensions to February 19, 2024.

If the Company is unable to complete a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account including interest earned on the funds held in the trust account and not previously released to us to pay our taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve and liquidate, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to our warrants, which will expire worthless if we fail to complete our initial business combination within the Combination Period. The underwriter has agreed to waive its rights to the deferred underwriting commission held in the trust account in the event we do not complete our initial business combination within the Combination Period and, in such event, such amounts will be included with the funds held in the trust account that will be available to fund the redemption of the public shares.

In connection with the Meeting, the Company entered into Voting and Non-Redemption Agreements with certain stockholders of the Company holding an aggregate of 3,281,138 shares in exchange for their agreeing not to redeem shares of the Company’s common stock at the Meeting (collectively, the “Non-Redemption Agreements”). The Non-Redemption Agreements provide for the allocation of up to 820,284 shares of common stock of the Company held by the Sponsor. The stockholders party to the Non-Redemption Agreements only agreed to refrain from exercising redemption rights in connection with the Meeting and retain their redemption rights in connection with the approval of a Business Combination (or any future amendment to extend the period to complete a Business Combination).

After the Meeting, an amendment to the Company’s amended and restated certificate of incorporation was filed with the Secretary of State of Delaware (as amended, the “A&R COI”), extending the Combination Period to August 19, 2023 and allowing holders of shares of the Company’s Class B Common Stock to convert such shares into shares of Class A Common Stock on a one-for-one basis at the election of the holder. In connection with the vote to approve the Extension Proposals, the holders of 10,125,252 public shares of common stock of the Company properly exercised their right to redeem their shares (and did not withdraw their redemption) for cash at a redemption price of approximately $10.27 per share, for an aggregate redemption amount of approximately $104 million. (the “Extension Redemptions”)

On February 14, 2023, Seaport Global SPAC II, LLC, the Company’s sponsor (“Sponsor”) contributed to the Company for purposes of making a deposit into the Company’s trust account of an aggregate of 200,000 shares of Class B common stock (the “Trust Shares”) and $84,994.96 (or $0.02 per share of Class A Common Stock remaining after the Extension Redemptions (each a “Remaining Share”, and collectively, the “Remaining Shares”)) for the benefit of the public shares that were not redeemed by the public shareholders in connection with the Meeting. Following the foregoing contribution, the Sponsor owned 3,393,750 shares of Class B common stock. On February 16, 2023 the Sponsor converted the entirety of such shares into shares of Class A common stock, and including the additional 200,000 Class B Trust Shares which represent 46% of the outstanding shares of common stock of the Company. Effective on February 17, 2023, the Trust Shares were also converted to Class A Common Stock.

Following the Extension Redemptions, including the Class B common stock, the Company had 7,843,498 shares of common stock outstanding, and the aggregate amount remaining in the Trust Account at the time was $43,662,709.

In connection with the vote to approve the Second Extension, the holders of 861,019 public shares of common stock of the Company properly exercised their right to redeem their shares (and did not withdraw their redemption) for cash at a redemption price of approximately $10.58 per share, for an aggregate redemption amount of approximately $9.1 million (“Second Extension Redemptions”). Following the Second Extension Redemptions, the Company had 6,982,479 shares of common stock outstanding, and the aggregate amount remaining in the Trust Account at the time was approximately $35.8 million. In connection with the Second Extension, on August 16, 2023, we contributed an additional $135,549 of loan proceeds from our Sponsor to the Trust Account (“Extension Payment”), bringing the total in the Trust Account to approximately $36.0 million. Also on August 16, 2023, we amended our Trust Agreement with the Trustee. Since August 16, we have made two additional Extension Payments into the Trust Account. Pursuant to an amendment to the Merger Agreement, ABM was obligated to pay $0.015 per share of the Extension Payments in cash, or else it was obligated to contribute additional shares to our Sponsor at the closing. To date, ABM has not made any such payments in cash.

The Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.15 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the day of liquidation of the Trust Account, if less than $10.15 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriter of Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). However, the Company has not asked the Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and believe that the Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure its stockholders that the Sponsor would be able to satisfy those obligations. None of the Company’s officers or directors will indemnify the Company for claims by third parties including, without limitation, claims by vendors and prospective target businesses. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.

Liquidity and Going Concern

As of September 30, 2023, the Company had cash outside the Trust Account of $31,494 available for working capital needs and a working capital deficit of approximately $(4.4) million. All remaining cash held in the Trust Account are generally unavailable for the Company’s use, prior to an initial business combination, and is restricted for use either in a Business Combination, pay the Company’s tax obligations, or to redeem common stock.

Through September 30, 2023, the Company’s liquidity needs were satisfied through receipt of $25,000 from the sale of the founder shares and the remaining net proceeds from the IPO and the sale of Private Placement Units. In addition, on August 25, 2022 and November 25, 2022, the Company withdrew $40,747 and $374,062, respectively from the Trust Account to pay its income tax and Delaware franchise tax obligations. On February 23, 2023 and on August 17, 2023, the Company withdrew $582,139 and $69,184, respectively from the Trust Account to meet its income tax and Delaware franchise tax obligations.

As of September 30, 2023, $284,388 of the amount held in the Trust Account was available to be withdrawn as described above, and as of December 31, 2022, $1,733,316 of the amount in the Trust Account were available to be withdrawn as described above.

Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination. Further, the Company has incurred and expects to continue to incur significant costs in pursuit of its acquisition plans.

The possibility exists that within the coming 12 months the Company will need to raise additional capital through loans or additional investments from its Sponsor, stockholders, officers, directors, or third parties. In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the initial stockholders or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete a Business Combination, we would repay such loaned amounts. In the event that a Business Combination does not close, we may use a portion of the working capital held outside the Trust Account to repay such loaned amounts but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into warrants identical to the Private Placement Warrants, at a price of $1.00 per warrant at the option of the lender.

Accordingly, the Company may not be able to obtain additional financing if and when needed. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company’s ability to continue as a going concern through one year and one day from the date of issuance of these financial statements. These conditions raise substantial doubt about our ability to continue as a going concern. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

In connection with our assessment of going concern considerations in accordance with the authoritative guidance in Financial Accounting Standard Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that the mandatory liquidation and subsequent dissolution, should the we be unable to complete a business combination, raises substantial doubt about the our ability to continue as a going concern. We have until end of the Combination Period to consummate a Business Combination. It is uncertain that we will be able to consummate a Business Combination by this time. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate as of the end of the Combination Period.

Risks and Uncertainties

In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic which continues to spread throughout the United States and the World. As of the date the financial statement was issued, there was considerable uncertainty around the expected duration of this pandemic. The Company has concluded that while it is reasonably possible that COVID-19 could have a negative effect on identifying a target company for a Business Combination, the specific impact is not readily determinable as of the date of this financial statement. In addition, our search for a target company may be impacted by the current hostilities between Russia and Ukraine, inflationary effects, and other similar events and the status of debt and equity markets. The financial statements do not include any adjustments that might result from the outcome of these uncertainties.

v3.23.3
Significant Accounting Policies
9 Months Ended
Sep. 30, 2023
Significant Accounting Policies  
Significant Accounting Policies

Note 2 — Significant Accounting Policies

Basis of Presentation

The accompanying condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. The results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for any future periods.

In the opinion of the Company’s management, the accompanying condensed financial statements contain all adjustments necessary for a fair statement of the Company’s financial position as of September 30, 2023, its results of operations for the three- and nine-months ended September 30, 2023 and 2022 and its cash flows for the nine months ended September 30, 2023 and 2022. All such adjustments are of a normal and recurring nature.

Emerging Growth Company Status

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of the financial statement in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statement, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

Inflation Reduction Act of 2022

Except for franchise and income taxes, the proceeds placed in the trust account in connection with the Company’s initial public offering and any extension payments, as well as any interest earned thereon, shall not be used to pay for potential excise taxes or any other fees or taxes that may be levied on the Company pursuant to any current, pending or future rules or laws, including without limitation any excise tax due under the Inflation Reduction Act of 2022 on any redemptions or stock buybacks by the Company.

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2023 or December 31, 2022. The Company had $31,494 of cash as of September 30, 2023 and $292,717 of cash as of December 31, 2022.

Cash and Securities held in Trust Account

At September 30, 2023, the assets held in the Trust Account were substantially held in U.S. Treasury Bills. As of September 30, 2023, the Trust Account held $36,391,529 in three-month U.S. Treasury Bills and $990 in cash. As of December 31, 2022, the Trust Account held $147,639,102 in three-month U.S. Treasury Bills and $464 in cash. During the period from January 1, 2023 and September 30, 2023, the Company withdrew $651,323 interest income from the Trust Account to pay its tax obligations and withdrew $40,747 during the period from January 1, 2022 to September 30, 2022. During the three months ended September 30, 2023, the Company withdrew $69,184 interest income from the Trust Account to pay its tax obligations and withdrew $40,747 during the comparable three month period in 2022.

The Company classifies its United States Treasury securities as a trading security in accordance with FASB ASC Topic 320 “Investments - Debt and Equity Securities.”

Per ASC 320-10-25 Trading securities are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price. However, at acquisition the Company is not precluded from classifying as trading a security it plans to hold for a longer period.

Interest income is recognized when earned and included in the “interest income” line item in the statements of operations.

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

Warrant and Forward Purchase Agreement Liabilities

The Company accounts for warrants and forward purchase agreements as either equity-classified or liability-classified instruments based on an assessment of the warrant’s and forward purchase agreement’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants and forward purchase agreement are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants and forward purchase agreement meet all of the requirements for equity classification under ASC 815, including whether the warrants and forward purchase agreement are indexed to the Company’s own common shares and whether the warrant and forward purchase agreement holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant and forward purchase agreement issuance and as of each subsequent quarterly period end date while the warrants forward purchase agreement are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.

The Forward Purchase Agreement entered into on May 31, 2023 (“FSPA” or the “Agreement”) resulted in Meteora holding a put option to sell up to a maximum of 4,200,000 of the Company’s shares. Pursuant to ASC 480, “Distinguishing Liabilities from Equity”, this instrument meets the definition of a liability and accordingly was recognized at fair value. The FSPA resulted in the initial recognition of a forward purchase agreement liability of approximately $2,016,000 and was expensed in our statement of operations. The fair value of this put option was $2,212,335 as of September 30, 2023 and zero at December 31, 2022, assuming the investor will purchase the maximum number of shares. Changes in the estimated fair value of the FSPA are recognized as a non-cash gain or loss on the statements of operations.

Class A Common Stock Subject to Possible Redemption

The Company accounts for its common stock subject to possible redemption in accordance with the guidance in ASC Topic 480. Common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet.

The Company recognizes changes in redemption value at the end of each reporting period and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Such changes are reflected in additional paid-in capital, or in the absence of additional capital, in accumulated deficit. On November 19, 2021, the Company recorded an accretion of $20,121,064.

As of September, 2023, the shares of Class A Common Stock, classified as temporary equity in the balance sheet, are reconciled in the following table:

Gross proceeds of initial public offering

    

$

139,711,628

Less:

 

Proceeds allocated to public warrants

 

(5,751,494)

Offering costs allocated to Class A Common Stock subject to possible redemption

 

(8,174,948)

Plus:

 

Re-measurement on Class A Common Stock subject to possible redemption

 

20,121,068

Class A Common Stock subject to possible redemption, December 31, 2021

$

145,906,254

Remeasurement of Class A Common Stock to redemption value

1,105,504

Shares of Class A Common Stock subject to possible redemption at December 31, 2022

$

147,011,758

Redemption of Class A ordinary shares

(113,134,328)

Remeasurement of Class A ordinary shares to redemption value

2,436,322

Class A ordinary shares subject to possible redemption value at September 30, 2023

$

36,313,752

Offering Costs

The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - “Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering.

Transaction costs for the Company’s IPO amounted to $8,553,410, consisting of $2,875,000 for the underwriting discount, $5,031,250 of deferred underwriting compensation fees, and $647,160 of other offering costs. Offering costs amounted to $8,553,410, of which $8,174,948 were charged to temporary equity upon the completion of the Initial Public Offering and $378,462 were expensed to the statement of operations.

Income Taxes

The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company has identified the United States as its only “major” tax jurisdiction. The Company may be subject to potential examination by federal and state taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Net Income (loss) Per Share of Common Stock

Net income (loss) per common share is computed by dividing net income by the weighted average number of common stock outstanding for the period. The Company applies the two-class method in calculating earnings per share. Shares of common stock subject to possible redemption at September 30, 2023, which are not currently redeemable and are not redeemable at fair value, have been

excluded from the calculation of basic net income (loss) per common share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered the effect of warrants sold in the Initial Public Offering and the private placement to purchase an aggregate 7,531,250 shares of common stock in the calculation of diluted income (loss) per share, since the exercise of the warrants into shares of common stock is contingent upon the occurrence of future events. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the period presented.

Below is a reconciliation of net income (loss) per common share:

For the Three Months Ended

For the Nine Months Ended

September 30,

 

September 30,

September 30,

September 30,

    

2023

    

2022

    

2023

    

2022

Class A common stock subject to possible redemption

 

  

Numerator: Net income (loss) allocable to Class A common stock subject to possible redemption

 

  

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

4,052,299

Net income (loss) attributable to Class A common stock subject to possible redemption

(204,505)

1,438,573

(2,213,599)

 

3,241,839

Denominator: Weighted average redeemable Class A common stock

 

Weighted average shares outstanding, basic and diluted redeemable Class A common stock

3,837,956

14,375,000

5,742,884

 

14,375,000

Basic and diluted net income (loss) per share, redeemable Class A common share

$

(0.05)

$

0.10

$

(0.39)

$

0.23

Non-Redeemable Class B Common Stock

 

Numerator: Net Income (loss) attributable to non-redeemable Class A common stock

 

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

4,052,299

Net Income (loss) attributable to non-redeemable Class A common stock

$

(191,492)

$

359,643

$

(1,385,214)

810,460

Denominator: Weighted average non-redeemable Class A common stock

 

Weighted average shares outstanding, basic and diluted non-redeemable Class A common stock

3,593,750

3,593,750

3,593,750

 

3,593,750

Basic and diluted net income (loss) per non-redeemable Class A common share

$

(0.05)

$

0.10

$

(0.39)

0.23

Fair value of financial instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution, which, at times may exceed the Federal depository insurance coverage of $250,000. At September 30, 2023, the Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Recent Accounting Standards

In August 2020, the FASB issued ASU No. 2020-06, “Debt --Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging --Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The adoption of ASU 2019-12, effective January 1, 2022, did not have a material impact on the Company’s financial statements and related footnote disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.

v3.23.3
Public Offering
9 Months Ended
Sep. 30, 2023
Public Offering  
Public Offering

Note 3 — Public Offering

Pursuant to the Initial Public Offering, on November 19, 2021, the Company sold 14,375,000 Units, which includes the full exercise by the underwriter of its option to purchase an additional 1,875,000 Units, at a purchase price of $10.00 per Unit. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value, and one-half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 8).

v3.23.3
Private Placement
9 Months Ended
Sep. 30, 2023
Private Placement  
Private Placement

Note 4 — Private Placement

Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 7,531,250 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, or $7,531,250 in the aggregate. Each Private Placement Warrant is exercisable to purchase one share of Class A common stock at a price of $11.50 per share. The proceeds from the sale of the Private Placement Warrants were added to the net proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless.

v3.23.3
Related Party Transactions
9 Months Ended
Sep. 30, 2023
Related Party Transactions  
Related Party Transactions

Note 5 — Related Party Transactions

Founder Shares

In June 2021, the Company issued an aggregate of 3,593,750 shares (the “Founder Shares”) to the Sponsor for an aggregate purchase price of $25,000 in cash. Subsequently, in August 2021, our Sponsor forfeited an aggregate of 718,750 shares for no consideration, thereby resulting in 3,593,750 remaining Founder Shares, included an aggregate of up to 468,750 Founder Shares of Class B common stock subject to forfeiture by the Sponsor to the extent that the underwriter’s over-allotment option was not exercised in full or in part, so that the Sponsor would own, on an as-converted basis, 20% of the Company’s issued and outstanding shares after the Initial Public Offering. As a result of the underwriter’s election to fully exercise its over-allotment option, 468,750 Founder Shares are no longer subject to forfeiture.

The initial stockholders have agreed not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination or (B) the date on which the Company completes a liquidation, merger, capital stock exchange or similar transaction that results in the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property. Notwithstanding the foregoing, if the last sale price of the Company’s Class A common

stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination, the Founder Shares will be released from the lock-up.

In February 2023, our Sponsor contributed the Trust Shares and $84,994 (or $0.02 per Remaining Share) to the Company’s trust account in connection with the Meeting. Also in February 2023, the Sponsor converted its remaining 3,393,750 founder shares to shares of Class A Common Stock, subject to the same restrictions as the founder shares. Effective February 17, 2023 the Trust Shares were also converted to Class A Common Stock.

Also in February 2023, the Company entered into Non-Redemption Agreements with certain stockholders of the Company holding an aggregate of 3,281,138 shares in exchange for their agreeing not to redeem shares of the Company’s common stock at the Meeting. The Non-Redemption Agreements provide for the allocation of up to 820,284 shares of common stock of the Company held by the Sponsor. The stockholders party to the Non-Redemption Agreements only agreed to refrain from exercising redemption rights in connection with the Meeting and retain their redemption rights in connection with the approval of a Business Combination (or any future amendment to extend the period to complete a Business Combination).

In connection with the Second Meeting, our sponsor (or its affiliate) agreed to contribute $0.04 per redeemable share per month into the Trust Account as the Extension Payment. We (as an affiliate of our Sponsor) deposited the Extension Payment into the Trust Account, which was funded through the Working Capital Loan with our Sponsor.

Promissory Note and Advances Related Party

On June 21, 2021, the Sponsor agreed to loan the Company an aggregate of up to $400,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the “Note”). The Note was non-interest bearing and was payable on the earlier of June 21, 2022 or the completion of the Initial Public Offering. The outstanding balance under the Note was repaid on November 19, 2021. At September 30, 2023 and September 30, 2022 there were no borrowings outstanding under the Note.

In order to finance transaction costs in connection with a Business Combination, the Company’s Sponsor, an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). Such Working Capital Loans would be evidenced by promissory notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of notes may be converted upon consummation of a Business Combination into warrants at a price of $1.00 per warrant. The warrants will be identical to the Private Placement Warrants. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. At December 31, 2022, no Working Capital Loans were outstanding.

On February 16, 2023, the Sponsor issued a Working Capital Loan to the Company in the form of an unsecured promissory note (the “Sponsor Convertible Note”). Pursuant to the Sponsor Convertible Note, the Company may borrow from the Sponsor, from time to time, up to an aggregate of $1,500,000. Borrowings under the Sponsor Convertible Note will not bear interest. The Note will mature on the earlier to occur of (i) February 19, 2024, or (ii) the consummation of the Business Combination. Up to $1,500,000 of such Sponsor Convertible Note may be converted into warrants of the post-business combination entity, which shall have terms identical to the Private Placement Warrants, at a price of $1.00 per warrant at the option of the Sponsor. The Sponsor Convertible Note contains customary events of default, including those relating to the Company’s failure to repay the principal amount due upon maturity of the Sponsor Convertible Note and certain bankruptcy events. As of September 30, 2023, the Working Capital Loan had a balance of $1,200,000.

The conversion option included in the Note is considered an embedded derivative and is remeasured at the end of each reporting period when amounts drawn will be outstanding. The value of the conversion option is de minimis as of September 30, 2023.

Administrative Support Agreement

The Company entered into an agreement, commencing on November 19, 2021 through the earlier of the Company’s consummation of a Business Combination and its liquidation, to pay the Sponsor a total of $10,000 per month for office space, utilities and secretarial and administrative support. Upon completion of the Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees. The Company has paid an aggregate of $90,000 and $90,000, as of September 30, 2023 and September 30, 2022, respectively.

v3.23.3
Investment Held in Trust Account
9 Months Ended
Sep. 30, 2023
Investment Held in Trust Account  
Investment Held in Trust Account

Note 6 —Investment Held in Trust Account

As of September 30, 2023, investment in the Company’s Trust Account consisted of $990 in Cash and Sweep Funds and $36,391,529 in U.S. Treasury Securities that mature on November 16, 2023.

The Company classifies its United States Treasury securities as a trading security in accordance with FASB ASC 320 “Investments — Debt and Equity Securities”. The Company classifies its United States Treasury securities as trading securities in accordance with FASB ASC 320 “Investments — Debt and Equity Securities”. The Company considers all investments with original maturities of more than three months but less than one year to be short-term investments.

v3.23.3
Commitments & Contingencies
9 Months Ended
Sep. 30, 2023
Commitments & Contingencies  
Commitments & Contingencies

Note 7 — Commitments & Contingencies

Registration Rights

Pursuant to a registration rights agreement entered into on November 17, 2021, the holders of the Founder Shares, Private Placement Warrants and any warrants that may be issued upon conversion of the Working Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to our Class A common stock). The holders of the majority of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the consummation of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriters Agreement

The underwriter is entitled to a deferred fee of $0.35 per Unit, or $5,031,250 in the aggregate. The deferred fee will become payable to the underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.

On May 3, 2023, the Company and its underwriter amended the terms of its engagement letter such that the underwriter agreed to waive the entirety of its underwriting fee in lieu of a waiver fee of $1,000,000, which is due and payable only upon the consummation of the Company’s business combination with ABM. The fee waiver applies only to a potential business combination with ABM.

Forward Purchase Agreement

On May 31, 2023, SGII and ABM entered into an OTC Equity Prepaid Forward Transaction agreement (“FSPA”) with Meteora Special Opportunity Fund I, LP, Meteora Capital Partners, LP and Meteora Select Trading Opportunities Master, LP (collectively, “Meteora”).

Pursuant to the FSPA, Meteora is expected to purchase up to 4,200,000 shares of SGII Class A common stock (“FSPA Shares”) subject to a cap of 9.9% of outstanding shares on a post-Transaction basis, at a per share price no more than the price per share paid to redeeming SGII public shareholders in connection with the vote to approve the Transactions (the “redemption price”), or up to approximately US $43 million based on the current redemption price, in advance of the consummation of the Transactions. In certain circumstances, including if Meteora purchases less than 4,200,000 FSPA Shares, it will be entitled to receive warrants to purchase shares of SGII common stock in an amount equal to the difference of 4,200,000 and the number of FSPA Shares purchased in the market by Meteora and subject to the FSPA.

In connection with its purchase of the FSPA Shares, Meteora will waive its redemption rights in connection with the shareholder vote to approve the Transactions.

Following the closing of the Transactions, an amount equal to the number of FSPA Shares multiplied by the redemption price, less 1.00%, will be prepaid to Meteora. The remaining 1.00% (the “Prepayment Shortfall”) will be released to SGII at the closing of the Transactions. The FSPA Shares held by Meteora and subject to the FSPA may be sold into the market by Meteora at any time following the closing of the Transactions. Meteora is entitled to sell into the market FSPA Shares without any payment to SGII until the proceeds from such sales equals the Prepayment Shortfall. SGII may receive up to US $41,580,000 from the termination of all or a portion of the FSPA transaction at $10.00 per terminated FSPA Share, subject to reduction upon any Dilutive Offering Reset. To the extent Meteora elects not to terminate the FSPA transaction prior to the maturity date, SGII will be entitled to receive from Meteora the number of FSPA Shares not so terminated, and Meteora will be entitled to “maturity” consideration, paid in shares or cash, subject to the terms of the FSPA.

The FSPA expires at the third anniversary of the closing of the Transactions, subject to acceleration at the Seller’s option upon the volume weighted average price per share being at or below $5.00 per share for any 20 trading days during a 30 consecutive trading day-period and upon any delisting of SGII common stock.

The FSPA provides that Meteora is entitled to transfer and/or assign all or a portion of its rights and obligations under the FSPA to one or more third parties of its choosing. Additionally, according to the terms of the FSPA, SGII has agreed to indemnify Meteora against certain losses in connection with the FSPA and to pay certain consideration and fees, including without limitation a quarterly fee, a breakage fee and share consideration equal to 300,000 shares at the redemption price.

The Forward Purchase Agreement entered into on May 31, 2023 (“FSPA” or the “Agreement”) resulted in the investor holding a put option on the Company’s shares to sell such shares pursuant to the Agreement, up to the maximum of 4,200,000 shares. Pursuant to ASC 480, “Distinguishing Liabilities from Equity”, this instrument meets the definition of a liability and accordingly was recognized at fair value. The fair value of this put option was $2,212,335 as of September 30, 2023, assuming Meteora will purchase the maximum number of shares. The FSPA resulted in the initial recognition of a FSPA derivative liability of approximately $2,016,000 and was expensed in our statement of operations. Changes in the estimated fair value of the FSPA are recognized as a non-cash gain or loss on the statements of operations.

v3.23.3
Stockholders' Equity
9 Months Ended
Sep. 30, 2023
Stockholders' Equity  
Stockholders' Equity

Note 8 — Stockholders’ Equity

Preferred Stock — The Company is authorized to issue 1,000,000 shares of $0.0001 par value preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. At September 30, 2023 and December 31, 2022, there were no shares of preferred stock issued or outstanding

Class A Common Stock (redeemable) — The Company is authorized to issue up to 100,000,000 shares of Class A, $0.0001 par value common stock. Holders of the Company’s Class A common stock are entitled to one vote for each share. At September 30, 2023 and December 31, 2022, there were 0 shares of Class A common stock issued and outstanding, excluding 3,388,729 and 14,375,000 shares of Class A common stock subject to possible redemption as of September 30, 2023 and December 31, 2022, respectively.

Class A Common Stock (non-redeemable) In connection with the Meeting, on February 16, 2023, the Sponsor converted 3,593,750 Class B common shares to shares of Class A Common Stock, subject to the same restrictions as the founder shares but non-redeemable. As of September 30, 2023, there were 3,593,750 shares of non-redeemable Class A Common Stock and as of December 31, 2022 there were no shares of non-redeemable Class A Common Stock.

Class B Common Stock — The Company is authorized to issue up to 10,000,000 shares of Class B, $0.0001 par value common stock. Holders of the Company’s Class B common stock are entitled to one vote for each share. At September 30, 2023 and December 31, 2022 there were 0 and 3,593,750 Class B common stock issued and outstanding, respectively.

The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the Business Combination on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like. In the case that additional shares of Class A common stock, or equity linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity linked securities issued, or to be issued, to any seller in a Business Combination, and any private placement-equivalent warrants issued to the Sponsor or its affiliates upon conversion of loans made to the Company). The Company may issue additional common stock or preferred stock to complete its Business Combination or under an employee incentive plan after completion of its Business Combination.

v3.23.3
Warrant Liability
9 Months Ended
Sep. 30, 2023
Warrant Liability  
Warrant Liability

Note 9 – Warrant Liability

The Company accounts for the warrants in accordance with the guidance contained in ASC Topic 815-40. Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly, the Company will classify each warrant as a liability at its fair value. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations.

The Public Warrants will become exercisable 30 days after the consummation of a Business Combination. No Public Warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the common shares issuable upon exercise of the Public Warrants and a current prospectus relating to such common shares. Notwithstanding the foregoing, if a registration statement covering the Class A common shares issuable upon the exercise of the Public Warrants is not effective within 60 days from the consummation of a Business Combination, the holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise the Public Warrants on a cashless basis pursuant to an available exemption from registration under the Securities Act. If an exemption from registration is not available, holders will not be able to exercise their Public Warrants on a cashless basis. The Public Warrants will expire five years from the consummation of a Business Combination or earlier upon redemption or liquidation.

The Company may call the Public Warrants for redemption (excluding the Private Placement Warrants), in whole and not in part, at a price of $0.01 per warrant:

upon not less than 30 days’ prior written notice of redemption to each Public Warrant holder,
if, and only if, the last sale price of the Company’s Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

In addition, once the warrants become exercisable, the Company may call the warrants for redemption:

in whole and not in part;
if the closing price of the shares of Class A common stock for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above.

The “fair market value” of the Class A common stock for the above purpose shall mean the volume-weighted average price of the Class A common stock during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of warrants. In no event will the warrants be exercisable in connection with this redemption feature for more than 0.361 Class A common stock per warrant (subject to adjustment).

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the common shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and will be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement.

In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the Company’s initial Business Combination on the date of the consummation of such initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and will be non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

v3.23.3
Income Tax
9 Months Ended
Sep. 30, 2023
Income Tax  
Income Tax

Note 10 – Income Tax

As of September 30, 2023, and December 31, 2022, the Company’s deferred tax asset had a full valuation allowance recorded against it. Our effective tax rate was (34.09%) and (13.46%) for the three and nine months ended September 30, 2023, respectively, and 7.47% and 3.62% for the three and nine months ended September 30, 2022. The effective tax rate differs from the statutory tax rate of 21% for the three and nine months ended September 30, 2023, due to changes in fair of warrant liabilities, fair value of forward purchase agreement liabilities, merger expenses and the valuation allowance on the deferred tax assets.

v3.23.3
Fair Value Measurements
9 Months Ended
Sep. 30, 2023
Fair Value Measurements  
Fair Value Measurements

Note 11 — Fair Value Measurements

FASB ASC Topic 820 “Fair Value Measurements and Disclosures” (“ASC 820”) defines fair value, the methods used to measure fair value and the expanded disclosures about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between the buyer and the seller at the measurement date. In determining fair value, the valuation techniques consistent with the market approach, income approach and cost approach shall be used to measure fair value. ASC 820 establishes a fair value hierarchy for inputs, which represent the assumptions used by the buyer and seller in pricing the asset or liability. These inputs are further defined as observable and unobservable inputs. Observable inputs are those that buyer and seller would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company’s assumptions about the inputs that the buyer and seller would use in pricing the asset or liability developed based on the best information available in the circumstances.

The fair value hierarchy is categorized into three levels based on the inputs as follows:

Level 1 —

Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment.

Level 2 —

Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means.

Level 3 —

Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

The fair value of the Company’s certain assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the condensed balance sheet. The fair values of cash and cash equivalents, prepaid assets, accounts payable and accrued expenses, due to related parties are estimated to approximate the carrying values as of September 30, 2023 due to the short maturities of such instruments.

The following tables present information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

    

September 30, 

    

    

    

2023

Level 1

Level 2

Level 3

Assets:

 

  

 

  

 

  

 

  

U.S. Money Market held in Trust Account

$

990

$

990

$

$

U.S. Treasury Securities held in Trust Account

 

36,391,529

 

36,391,529

 

 

$

36,392,519

$

36,392,519

$

$

September 30, 

    

2022

    

Level 1

    

Level 2

    

Level 3

Assets:

 

  

 

  

 

  

 

  

U.S. Money Market held in Trust Account

$

923

$

923

$

$

U.S. Treasury Securities held in Trust Account

 

146,762,512

 

146,762,512

 

 

$

146,763,435

$

146,763,435

$

$

The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2023 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value.

    

    

September 30, 

    

    

December 31, 

    

    

November 19,

    

Level

    

2023

    

Level

    

2022

    

Level 

    

2021

Liabilities:

 

  

 

  

 

  

 

  

Warrant Liability - Public Warrants

1

$

395,313

1

 

$

71,875

 

3

 

$

5,751,494

Warrants Liability - Private Placement Warrants

3

433,424

3

 

90,306

 

3

 

6,194,622

Forward purchase agreement liability

3

2,212,335

Total Derivative Liabilities

$

3,041,072

 

$

162,181

 

 

$

11,946,116

The Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within the warrant liability on our balance sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of the warrant liabilities in the statement of operations.

Warrant Liability - Initial Measurement

The Company established the initial fair value for the Public Warrants and Private Placement Warrants on November 19, 2021, the date the Company consummated its Initial Public Offering, using a Monte Carlo simulation model. The Company allocated the proceeds received from (i) the sale of Units (which is inclusive of one Class A common stock and one-half of one Public Warrant), (ii) the sale of Private Placement Warrants, and (iii) the issuance of shares of Class B common stock, first to the Warrants based on their fair values as determined at initial measurement, with the remaining proceeds allocated to Class A common stock subject to possible redemption, Class A common stock and Class B common stock based on their relative fair values at the initial measurement date. The Warrants were classified as Level 3 at the initial measurement date due to the use of unobservable inputs.

The key inputs into the Monte Carlo simulation model for the Public Warrants and Private Placement Warrants were as follows at initial measurement:

    

November 19, 2021

 

Input

(Initial Measurement)

 

Risk-free interest rate

 

1.33

%

Expected term (years)

 

5.93

Expected volatility

 

13.5

%

Stock price

$

9.6

As of November 19, 2021, the Public Warrants and Private Placement Warrants were determined to be $0.80 and $0.82 per warrant, respectively, for aggregate values of approximately $5.7 million and $6.2 million, respectively.

Warrant Liability - Subsequent Measurement

The Warrants are measured at fair value on a recurring basis. The subsequent measurement of the Public Warrants as of September 30, 2023 and December 31, 2022 is classified as Level 1 due to the use of an observable market quote in an active market and the subsequent measurement of the Private Placement Warrants as September 30, 2023 and December 31, 2022 is classified Level 3 due to the use of unobservable inputs.

The key inputs into the Monte Carlo simulation model for the Public Warrants and Private Placement Warrants were as follows at the Subsequent Measurements:

Input

    

December 31, 2022

    

September 30, 2023

Risk-free interest rate

 

4.72

%  

5.47

%

Expected term (years)

 

1.04

 

0.95

Expected volatility

 

4.3

%  

3.2

%

Stock price

$

10.19

$

10.71

As of December 31, 2022, the Public Warrants and Private Placement Warrants were determined to be approximately $0.02 and $0.02 per warrant for aggregate values of approximately $0.07 million and $0.09 million, respectively.

As of September 30, 2023, the Public Warrants and Private Placement Warrants were determined to be $0.06 and $0.06 per warrant for aggregate values of approximately $0.39 million and $0.43 million, respectively.

The following table presents the changes in the fair value of warrant liabilities:

    

Private

    

    

Warrant

Placement

Public

Liabilities

Fair value as of November 19, 2021

$

$

$

Initial measurement on November 19, 2021

6,194,622

5,751,494

11,946,116

Change in valuation inputs or other assumptions

 

(2,373,768)

 

(2,143,369)

 

(4,517,137)

Fair value as of December 31, 2021

$

3,820,854

$

3,608,125

$

7,428,979

Change in valuation inputs or other assumptions

(1,319,898)

(1,242,719)

(2,562,617)

Fair value as of March 31, 2022

$

2,500,956

$

2,365,406

$

4,866,362

Change in valuation inputs or other assumptions

 

(2,410,650)

 

(2,293,531)

 

(4,704,181)

Fair value as of December 31, 2022

$

90,306

$

71,875

$

162,181

Change in valuation inputs or other assumptions

392,240

360,093

752,333

Fair value as of March 31, 2023

$

482,546

$

431,968

$

914,514

Change in valuation inputs or other assumptions

196,858

178,970

375,828

Fair value as of June 30, 2023

$

679,404

$

610,938

$

1,290,342

Change in valuation inputs or other assumptions

(245,980)

(215,625)

(461,605)

Fair value as of September 30, 2023

$

433,424

$

395,313

$

828,737

Level 3 financial liabilities consist of the Private Placement Warrant liability for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation. Changes in fair value measurements categorized within Level 3 of the fair value hierarchy are analyzed each period based on changes in estimates or assumptions and recorded as appropriate.

Forward Purchase Agreement Liabilities

The Company utilizes a Monte Carlo simulation model to value the forward purchase agreement at initiation and at the reporting period, with changes in fair value recognized in the statement of operations. Inherent in the model are assumptions related to share price on valuation date, volatilities, expected life, risk-free rate and probability of business combination. The Company estimates the pre-business combination volatility based on the low historical volatilities exhibited by the Company and SPACs-based and the post-merger volatility is estimated based on the median historical and implied volatilities exhibited by companies operating in the industry of the Company’s expected target. The risk-free interest rate is based on the 3-year and 5-year U.S. Treasury note which is similar to the expected remaining life of the forward purchase agreement. The expected life of the forward purchase agreement is assumed to be equivalent to their remaining contractual term.

In order to calculate the fair value of the forward purchase agreement liabilities, the Company utilized the following key inputs:

    

May 31, 2023

    

 

(Initial measurement)

September 30, 2023

 

Risk-free interest rate

3.95

%  

4.0

%

Expected term (years)

3.5

3.25

Stock price

 

10.35

 

10.71

Volatility – pre-business combination

 

2.6

%  

 

2.4

%

Volatility – post-business combination

 

62.9

%  

 

66.3

%

The following table presents the changes in the fair value of the forward purchase agreement liability measured on a recurring basis during the three and nine months ended September 30, 2023:

    

Forward Purchase Agreement

Fair value on May 31, 2023 (initial measurement)

$

2,016,000

Change in fair value of forward purchase agreement liabilities

 

(126,000)

Fair value as of June 30, 2023

1,890,000

Change in fair value of forward purchase agreement liabilities

322,335

Fair value as of September 30, 2023

 

2,212,335

The changes in the fair value of the forward purchase agreement liabilities for the three and nine months ended September 30, 2023 are $322,335 and $(196,335), respectively. There were no forward purchase agreement liabilities in 2022.

There were no transfers between fair value levels during the three and nine months ended September 30, 2023 and 2022.

v3.23.3
Subsequent Events
9 Months Ended
Sep. 30, 2023
Subsequent Events  
Subsequent Events

Note 12 — Subsequent Events

The Company has evaluated subsequent events through the filing of this Current Report on Form 10-Q and determined that there have been no events that have occurred that would require adjustments to our disclosures in the consolidated financial statements contained herein.

v3.23.3
Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2023
Significant Accounting Policies  
Basis of Presentation

Basis of Presentation

The accompanying condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X of the SEC. The results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for any future periods.

In the opinion of the Company’s management, the accompanying condensed financial statements contain all adjustments necessary for a fair statement of the Company’s financial position as of September 30, 2023, its results of operations for the three- and nine-months ended September 30, 2023 and 2022 and its cash flows for the nine months ended September 30, 2023 and 2022. All such adjustments are of a normal and recurring nature.

Emerging Growth Company Status

Emerging Growth Company Status

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

Use of Estimates

The preparation of the financial statement in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statement, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

Inflation Reduction Act of 2022

Inflation Reduction Act of 2022

Except for franchise and income taxes, the proceeds placed in the trust account in connection with the Company’s initial public offering and any extension payments, as well as any interest earned thereon, shall not be used to pay for potential excise taxes or any other fees or taxes that may be levied on the Company pursuant to any current, pending or future rules or laws, including without limitation any excise tax due under the Inflation Reduction Act of 2022 on any redemptions or stock buybacks by the Company.

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2023 or December 31, 2022. The Company had $31,494 of cash as of September 30, 2023 and $292,717 of cash as of December 31, 2022.

Cash and Securities held in Trust Account

Cash and Securities held in Trust Account

At September 30, 2023, the assets held in the Trust Account were substantially held in U.S. Treasury Bills. As of September 30, 2023, the Trust Account held $36,391,529 in three-month U.S. Treasury Bills and $990 in cash. As of December 31, 2022, the Trust Account held $147,639,102 in three-month U.S. Treasury Bills and $464 in cash. During the period from January 1, 2023 and September 30, 2023, the Company withdrew $651,323 interest income from the Trust Account to pay its tax obligations and withdrew $40,747 during the period from January 1, 2022 to September 30, 2022. During the three months ended September 30, 2023, the Company withdrew $69,184 interest income from the Trust Account to pay its tax obligations and withdrew $40,747 during the comparable three month period in 2022.

The Company classifies its United States Treasury securities as a trading security in accordance with FASB ASC Topic 320 “Investments - Debt and Equity Securities.”

Per ASC 320-10-25 Trading securities are bought and held principally for the purpose of selling them in the near term and therefore held for only a short period of time. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price. However, at acquisition the Company is not precluded from classifying as trading a security it plans to hold for a longer period.

Interest income is recognized when earned and included in the “interest income” line item in the statements of operations.

Derivative Financial Instruments

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

Warrant and Forward Purchase Agreement Liabilities

Warrant and Forward Purchase Agreement Liabilities

The Company accounts for warrants and forward purchase agreements as either equity-classified or liability-classified instruments based on an assessment of the warrant’s and forward purchase agreement’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants and forward purchase agreement are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants and forward purchase agreement meet all of the requirements for equity classification under ASC 815, including whether the warrants and forward purchase agreement are indexed to the Company’s own common shares and whether the warrant and forward purchase agreement holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant and forward purchase agreement issuance and as of each subsequent quarterly period end date while the warrants forward purchase agreement are outstanding.

For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations.

The Forward Purchase Agreement entered into on May 31, 2023 (“FSPA” or the “Agreement”) resulted in Meteora holding a put option to sell up to a maximum of 4,200,000 of the Company’s shares. Pursuant to ASC 480, “Distinguishing Liabilities from Equity”, this instrument meets the definition of a liability and accordingly was recognized at fair value. The FSPA resulted in the initial recognition of a forward purchase agreement liability of approximately $2,016,000 and was expensed in our statement of operations. The fair value of this put option was $2,212,335 as of September 30, 2023 and zero at December 31, 2022, assuming the investor will purchase the maximum number of shares. Changes in the estimated fair value of the FSPA are recognized as a non-cash gain or loss on the statements of operations.

Class A Common Stock Subject to Possible Redemption

Class A Common Stock Subject to Possible Redemption

The Company accounts for its common stock subject to possible redemption in accordance with the guidance in ASC Topic 480. Common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheet.

The Company recognizes changes in redemption value at the end of each reporting period and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Such changes are reflected in additional paid-in capital, or in the absence of additional capital, in accumulated deficit. On November 19, 2021, the Company recorded an accretion of $20,121,064.

As of September, 2023, the shares of Class A Common Stock, classified as temporary equity in the balance sheet, are reconciled in the following table:

Gross proceeds of initial public offering

    

$

139,711,628

Less:

 

Proceeds allocated to public warrants

 

(5,751,494)

Offering costs allocated to Class A Common Stock subject to possible redemption

 

(8,174,948)

Plus:

 

Re-measurement on Class A Common Stock subject to possible redemption

 

20,121,068

Class A Common Stock subject to possible redemption, December 31, 2021

$

145,906,254

Remeasurement of Class A Common Stock to redemption value

1,105,504

Shares of Class A Common Stock subject to possible redemption at December 31, 2022

$

147,011,758

Redemption of Class A ordinary shares

(113,134,328)

Remeasurement of Class A ordinary shares to redemption value

2,436,322

Class A ordinary shares subject to possible redemption value at September 30, 2023

$

36,313,752

Offering Costs

Offering Costs

The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - “Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering.

Transaction costs for the Company’s IPO amounted to $8,553,410, consisting of $2,875,000 for the underwriting discount, $5,031,250 of deferred underwriting compensation fees, and $647,160 of other offering costs. Offering costs amounted to $8,553,410, of which $8,174,948 were charged to temporary equity upon the completion of the Initial Public Offering and $378,462 were expensed to the statement of operations.

Income Taxes

Income Taxes

The Company accounts for income taxes under ASC 740 Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company has identified the United States as its only “major” tax jurisdiction. The Company may be subject to potential examination by federal and state taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Net Income (loss) Per Share of Common Stock

Net Income (loss) Per Share of Common Stock

Net income (loss) per common share is computed by dividing net income by the weighted average number of common stock outstanding for the period. The Company applies the two-class method in calculating earnings per share. Shares of common stock subject to possible redemption at September 30, 2023, which are not currently redeemable and are not redeemable at fair value, have been

excluded from the calculation of basic net income (loss) per common share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings. The Company has not considered the effect of warrants sold in the Initial Public Offering and the private placement to purchase an aggregate 7,531,250 shares of common stock in the calculation of diluted income (loss) per share, since the exercise of the warrants into shares of common stock is contingent upon the occurrence of future events. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the period presented.

Below is a reconciliation of net income (loss) per common share:

For the Three Months Ended

For the Nine Months Ended

September 30,

 

September 30,

September 30,

September 30,

    

2023

    

2022

    

2023

    

2022

Class A common stock subject to possible redemption

 

  

Numerator: Net income (loss) allocable to Class A common stock subject to possible redemption

 

  

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

4,052,299

Net income (loss) attributable to Class A common stock subject to possible redemption

(204,505)

1,438,573

(2,213,599)

 

3,241,839

Denominator: Weighted average redeemable Class A common stock

 

Weighted average shares outstanding, basic and diluted redeemable Class A common stock

3,837,956

14,375,000

5,742,884

 

14,375,000

Basic and diluted net income (loss) per share, redeemable Class A common share

$

(0.05)

$

0.10

$

(0.39)

$

0.23

Non-Redeemable Class B Common Stock

 

Numerator: Net Income (loss) attributable to non-redeemable Class A common stock

 

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

4,052,299

Net Income (loss) attributable to non-redeemable Class A common stock

$

(191,492)

$

359,643

$

(1,385,214)

810,460

Denominator: Weighted average non-redeemable Class A common stock

 

Weighted average shares outstanding, basic and diluted non-redeemable Class A common stock

3,593,750

3,593,750

3,593,750

 

3,593,750

Basic and diluted net income (loss) per non-redeemable Class A common share

$

(0.05)

$

0.10

$

(0.39)

0.23

Fair value of financial instruments

Fair value of financial instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Concentration of Credit Risk

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk consist of cash accounts in a financial institution, which, at times may exceed the Federal depository insurance coverage of $250,000. At September 30, 2023, the Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Recent Accounting Standards

Recent Accounting Standards

In August 2020, the FASB issued ASU No. 2020-06, “Debt --Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging --Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity” (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. ASU 2020-06 removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings per share calculation in certain areas. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows.

In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2021, with early adoption permitted. The adoption of ASU 2019-12, effective January 1, 2022, did not have a material impact on the Company’s financial statements and related footnote disclosures.

Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements.

v3.23.3
Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2023
Significant Accounting Policies  
Schedule of reconciliation of class A common stock subject to possible redemption

Gross proceeds of initial public offering

    

$

139,711,628

Less:

 

Proceeds allocated to public warrants

 

(5,751,494)

Offering costs allocated to Class A Common Stock subject to possible redemption

 

(8,174,948)

Plus:

 

Re-measurement on Class A Common Stock subject to possible redemption

 

20,121,068

Class A Common Stock subject to possible redemption, December 31, 2021

$

145,906,254

Remeasurement of Class A Common Stock to redemption value

1,105,504

Shares of Class A Common Stock subject to possible redemption at December 31, 2022

$

147,011,758

Redemption of Class A ordinary shares

(113,134,328)

Remeasurement of Class A ordinary shares to redemption value

2,436,322

Class A ordinary shares subject to possible redemption value at September 30, 2023

$

36,313,752

Schedule of reconciliation of net income (loss) per common share

For the Three Months Ended

For the Nine Months Ended

September 30,

 

September 30,

September 30,

September 30,

    

2023

    

2022

    

2023

    

2022

Class A common stock subject to possible redemption

 

  

Numerator: Net income (loss) allocable to Class A common stock subject to possible redemption

 

  

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

4,052,299

Net income (loss) attributable to Class A common stock subject to possible redemption

(204,505)

1,438,573

(2,213,599)

 

3,241,839

Denominator: Weighted average redeemable Class A common stock

 

Weighted average shares outstanding, basic and diluted redeemable Class A common stock

3,837,956

14,375,000

5,742,884

 

14,375,000

Basic and diluted net income (loss) per share, redeemable Class A common share

$

(0.05)

$

0.10

$

(0.39)

$

0.23

Non-Redeemable Class B Common Stock

 

Numerator: Net Income (loss) attributable to non-redeemable Class A common stock

 

Net income (loss)

$

(395,997)

$

1,798,216

$

(3,598,813)

4,052,299

Net Income (loss) attributable to non-redeemable Class A common stock

$

(191,492)

$

359,643

$

(1,385,214)

810,460

Denominator: Weighted average non-redeemable Class A common stock

 

Weighted average shares outstanding, basic and diluted non-redeemable Class A common stock

3,593,750

3,593,750

3,593,750

 

3,593,750

Basic and diluted net income (loss) per non-redeemable Class A common share

$

(0.05)

$

0.10

$

(0.39)

0.23

v3.23.3
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2023
Fair Value Measurements  
Schedule of company's assets that are measured at fair value on a recurring basis

    

September 30, 

    

    

    

2023

Level 1

Level 2

Level 3

Assets:

 

  

 

  

 

  

 

  

U.S. Money Market held in Trust Account

$

990

$

990

$

$

U.S. Treasury Securities held in Trust Account

 

36,391,529

 

36,391,529

 

 

$

36,392,519

$

36,392,519

$

$

September 30, 

    

2022

    

Level 1

    

Level 2

    

Level 3

Assets:

 

  

 

  

 

  

 

  

U.S. Money Market held in Trust Account

$

923

$

923

$

$

U.S. Treasury Securities held in Trust Account

 

146,762,512

 

146,762,512

 

 

$

146,763,435

$

146,763,435

$

$

Schedule of company's liabilities that are measured at fair value on a recurring basis

    

    

September 30, 

    

    

December 31, 

    

    

November 19,

    

Level

    

2023

    

Level

    

2022

    

Level 

    

2021

Liabilities:

 

  

 

  

 

  

 

  

Warrant Liability - Public Warrants

1

$

395,313

1

 

$

71,875

 

3

 

$

5,751,494

Warrants Liability - Private Placement Warrants

3

433,424

3

 

90,306

 

3

 

6,194,622

Forward purchase agreement liability

3

2,212,335

Total Derivative Liabilities

$

3,041,072

 

$

162,181

 

 

$

11,946,116

Schedule of key inputs into the Monte Carlo simulation model for the Public Warrants and Private Placement Warrants

    

November 19, 2021

 

Input

(Initial Measurement)

 

Risk-free interest rate

 

1.33

%

Expected term (years)

 

5.93

Expected volatility

 

13.5

%

Stock price

$

9.6

Input

    

December 31, 2022

    

September 30, 2023

Risk-free interest rate

 

4.72

%  

5.47

%

Expected term (years)

 

1.04

 

0.95

Expected volatility

 

4.3

%  

3.2

%

Stock price

$

10.19

$

10.71

Schedule of change in the fair value of the warrant liabilities

    

Private

    

    

Warrant

Placement

Public

Liabilities

Fair value as of November 19, 2021

$

$

$

Initial measurement on November 19, 2021

6,194,622

5,751,494

11,946,116

Change in valuation inputs or other assumptions

 

(2,373,768)

 

(2,143,369)

 

(4,517,137)

Fair value as of December 31, 2021

$

3,820,854

$

3,608,125

$

7,428,979

Change in valuation inputs or other assumptions

(1,319,898)

(1,242,719)

(2,562,617)

Fair value as of March 31, 2022

$

2,500,956

$

2,365,406

$

4,866,362

Change in valuation inputs or other assumptions

 

(2,410,650)

 

(2,293,531)

 

(4,704,181)

Fair value as of December 31, 2022

$

90,306

$

71,875

$

162,181

Change in valuation inputs or other assumptions

392,240

360,093

752,333

Fair value as of March 31, 2023

$

482,546

$

431,968

$

914,514

Change in valuation inputs or other assumptions

196,858

178,970

375,828

Fair value as of June 30, 2023

$

679,404

$

610,938

$

1,290,342

Change in valuation inputs or other assumptions

(245,980)

(215,625)

(461,605)

Fair value as of September 30, 2023

$

433,424

$

395,313

$

828,737

Forward Purchase Agreement  
Fair Value Measurements  
Schedule of key inputs into the Monte Carlo simulation model for the Public Warrants and Private Placement Warrants

    

May 31, 2023

    

 

(Initial measurement)

September 30, 2023

 

Risk-free interest rate

3.95

%  

4.0

%

Expected term (years)

3.5

3.25

Stock price

 

10.35

 

10.71

Volatility – pre-business combination

 

2.6

%  

 

2.4

%

Volatility – post-business combination

 

62.9

%  

 

66.3

%

Schedule of change in the fair value of the warrant liabilities

    

Forward Purchase Agreement

Fair value on May 31, 2023 (initial measurement)

$

2,016,000

Change in fair value of forward purchase agreement liabilities

 

(126,000)

Fair value as of June 30, 2023

1,890,000

Change in fair value of forward purchase agreement liabilities

322,335

Fair value as of September 30, 2023

 

2,212,335

v3.23.3
Organization and Business Operation (Details)
3 Months Ended 6 Months Ended 9 Months Ended
Aug. 17, 2023
USD ($)
Aug. 16, 2023
USD ($)
item
$ / shares
Aug. 14, 2023
USD ($)
item
$ / shares
shares
Feb. 23, 2023
USD ($)
Feb. 16, 2023
shares
Feb. 14, 2023
$ / shares
shares
Nov. 25, 2022
USD ($)
Aug. 25, 2022
USD ($)
Nov. 19, 2021
USD ($)
$ / shares
shares
Sep. 30, 2023
USD ($)
$ / shares
shares
Jun. 30, 2023
USD ($)
Sep. 30, 2023
USD ($)
item
$ / shares
shares
Dec. 31, 2022
USD ($)
shares
Organization and Business Operation                          
Condition for future business combination number of businesses minimum | item                       1  
Net proceeds from Initial Public Offering and sale of Private Placement Warrants                 $ 145,906,250        
Share price | $ / shares                 $ 10.15 $ 9.20   $ 9.20  
Threshold minimum aggregate fair market value as a percentage of the net assets held in the Trust Account                       80.00%  
Threshold percentage of outstanding voting securities of the target to be acquired by post-transaction company to complete business combination                       50.00%  
Minimum net tangible assets                   $ 5,000,001   $ 5,000,001  
Redemption limit percentage without prior consent                       20  
Unit Price | $ / shares                       $ 10.15  
Redemption period upon closure                       10 days  
Maximum allowed dissolution expenses                       $ 100,000  
Value of shares redeemed                   91,056 $ 1,040,287    
Cash held outside trust account                   31,494   31,494  
Working capital deficit                   (4,400,000)   (4,400,000)  
Cash held outside trust account was available to be withdrawn                   284,388   284,388 $ 1,733,316
Cash withdrawn from trust account $ 69,184     $ 582,139     $ 374,062 $ 40,747          
Cash and securities held in Trust Account                   $ 36,392,519   $ 36,392,519 $ 147,639,566
Sponsor                          
Organization and Business Operation                          
Percentage of common stock converted         46.00%                
Common shares, shares outstanding (in shares) | shares                   7,843,498   7,843,498  
Aggregate amount remained in Trust account                       $ 43,662,709  
Class A common stock                          
Organization and Business Operation                          
Common shares, shares outstanding (in shares) | shares                   0   0 0
Class A common stock | Sponsor                          
Organization and Business Operation                          
Number of shares provided for allocation | shares           84,994.96              
Issue price per remaining share | $ / shares           $ 0.02              
Class B common stock                          
Organization and Business Operation                          
Common shares, shares outstanding (in shares) | shares                   0   0 3,593,750
Class B common stock | Sponsor                          
Organization and Business Operation                          
Number of shares owned by stockholders | shares           3,393,750              
Number of shares deposited into trust account | shares           200,000              
Number of shares converted | shares         200,000                
Voting and Non Redemption agreement                          
Organization and Business Operation                          
Number of shares owned by stockholders | shares                   3,281,138   3,281,138  
Number of shares provided for allocation | shares                   820,284   820,284  
Number of shares redeemed | shares                       10,125,252  
Redemption price per share | $ / shares                       $ 10.27  
Value of shares redeemed                       $ 104,000,000  
Voting and Non Redemption agreement | Class A common stock                          
Organization and Business Operation                          
Ratio to be applied to the stock in the conversion                       1  
Second Extension Redemption                          
Organization and Business Operation                          
Number of one month extension for business combination approved | item     6                    
Term of extension for business combination     1 month                    
Number of shares redeemed | shares     861,019                    
Redemption price per share | $ / shares     $ 10.58                    
Value of shares redeemed     $ 9,100,000                    
Common shares, shares outstanding (in shares) | shares     6,982,479                    
Aggregate amount remained in Trust account     $ 35,800,000                    
Additional amount remained in Trust account   $ 135,549                      
Cash and securities held in Trust Account   $ 36,000,000.0                      
Number of additional extension payments | item   2                      
Extension Payments per share | $ / shares   $ 0.015                      
Private Placement Warrants                          
Organization and Business Operation                          
Price of warrant | $ / shares                   $ 1.00   $ 1.00  
Maximum notes convertible into warrants, value                   $ 1,500,000   $ 1,500,000  
Initial Public Offering                          
Organization and Business Operation                          
Number of units sold | shares                 14,375,000        
Purchase price per unit | $ / shares                 $ 10.00        
Proceeds from sale of units, net of offering costs                 $ 143,750,000        
Initial Public Offering | Sponsor                          
Organization and Business Operation                          
Issuance of Class B common stock to initial Stockholders                       $ 25,000  
Private Placement | Private Placement Warrants                          
Organization and Business Operation                          
Number of warrants issued | shares                 7,531,250        
Price of warrant | $ / shares                 $ 1.00        
Proceeds from issuance of private placement warrants                 $ 7,531,250        
Over-allotment option                          
Organization and Business Operation                          
Number of units sold | shares                 1,875,000        
Purchase price per unit | $ / shares                 $ 10.00        
v3.23.3
Significant Accounting Policies (Details) - USD ($)
3 Months Ended 9 Months Ended
May 31, 2023
Nov. 19, 2021
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Significant Accounting Policies              
Cash     $ 31,494   $ 31,494   $ 292,717
Amount withdrawn from trust account to pay tax obligations     69,184 $ 40,747 651,323 $ 40,747  
Accretion amount   $ 20,121,064          
Transaction costs     8,553,410   8,553,410    
Underwriting discount     2,875,000   2,875,000    
Deferred underwriting fee payable     5,031,250   5,031,250   5,031,250
Other offering costs     647,160   647,160    
Offering costs expensed         378,462    
Unrecognized tax benefits             0
Accrued for interest and penalties             0
Cash equivalents     0   0   0
Federal depository insurance coverage     250,000   250,000    
Cash and securities held in Trust Account     36,392,519   36,392,519   147,639,566
U.S. Treasury Bills              
Significant Accounting Policies              
Cash and securities held in Trust Account     36,391,529   36,391,529   147,639,102
U.S. Money Market              
Significant Accounting Policies              
Cash and securities held in Trust Account     990   990   464
Forward Purchase Agreement              
Significant Accounting Policies              
Derivative liability             0
Forward Purchase Agreement | Put option              
Significant Accounting Policies              
Fair value of put option estimated value     2,212,335   2,212,335    
Derivative liability $ 2,016,000            
Forward Purchase Agreement | Maximum [Member] | Put option              
Significant Accounting Policies              
Repurchase of stock 4,200,000            
Fair value of put option estimated value     $ 2,212,335   2,212,335   $ 0
Derivative liability $ 2,016,000            
Initial Public Offering              
Significant Accounting Policies              
Offering costs charged to temporary equity         $ 8,174,948    
v3.23.3
Significant Accounting Policies - Class A ordinary shares subject to possible redemption (Details) - USD ($)
9 Months Ended 12 Months Ended
Nov. 19, 2021
Sep. 30, 2023
Dec. 31, 2022
Dec. 31, 2021
Significant Accounting Policies        
Re-measurement on Class A ordinary shares subject to possible redemption $ 20,121,064      
Class A common stock subject to possible redemption        
Significant Accounting Policies        
Gross proceeds of initial public offering       $ 139,711,628
Proceeds allocated to public warrants       (5,751,494)
Offering costs allocated to Class A Common Stock subject to possible redemption       (8,174,948)
Balance at the beginning   $ 147,011,758 $ 145,906,254  
Redemption of Class A ordinary shares   (113,134,328)    
Re-measurement on Class A ordinary shares subject to possible redemption   2,436,322 1,105,504 20,121,068
Balance at the end   $ 36,313,752 $ 147,011,758 $ 145,906,254
v3.23.3
Significant Accounting Policies - Net Income Per Share of Common Stock (Details) - USD ($)
3 Months Ended 6 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Jun. 30, 2023
Jun. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Significant Accounting Policies            
Antidilutive securities excluded from computation of earnings per share         7,531,250  
Class A common stock subject to possible redemption            
Net income (loss) $ (395,997) $ 1,798,216 $ (3,202,816) $ 2,254,083 $ (3,598,813) $ 4,052,299
Numerator: Net Income            
Net income (loss) (395,997) 1,798,216     (3,598,813) 4,052,299
Class A common stock subject to possible redemption            
Numerator: Net Income            
Net income (loss) attributable to Class A common stock subject to possible redemption $ (204,505) $ 1,438,573     $ (2,213,599) $ 3,241,839
Denominator: Weighted average common stock            
Weighted average shares outstanding, basic 3,837,956 14,375,000     5,742,884 14,375,000
Weighted average shares outstanding, diluted 3,837,956 14,375,000     5,742,884 14,375,000
Basic net income (loss) per common share $ (0.05) $ 0.10     $ (0.39) $ 0.23
Diluted net income (loss) per common share $ (0.05) $ 0.10     $ (0.39) $ 0.23
Non Redeemable Class B Common Stock            
Numerator: Net Income            
Net Income (loss) attributable to non-redeemable Class A and Class B common stock $ (191,492) $ 359,643     $ (1,385,214) $ 810,460
Denominator: Weighted average common stock            
Weighted average shares outstanding, basic 3,593,750 3,593,750     3,593,750 3,593,750
Weighted average shares outstanding, diluted 3,593,750 3,593,750     3,593,750 3,593,750
Basic net income (loss) per common share $ (0.05) $ 0.10     $ (0.39) $ 0.23
Diluted net income (loss) per common share $ (0.05) $ 0.10     $ (0.39) $ 0.23
v3.23.3
Public Offering (Details) - $ / shares
9 Months Ended
Nov. 19, 2021
Sep. 30, 2023
Dec. 31, 2022
Public Offering      
Number of shares in a unit   1  
Number of warrants in a unit   0.5  
Class A common stock      
Public Offering      
Common stock, par value (in dollars per share)   $ 0.0001 $ 0.0001
Initial Public Offering      
Public Offering      
Number of units sold 14,375,000    
Purchase price per unit $ 10.00    
Initial Public Offering | Public Warrants      
Public Offering      
Number of warrants in a unit 0.5    
Initial Public Offering | Class A common stock      
Public Offering      
Number of shares in a unit 1    
Common stock, par value (in dollars per share) $ 0.0001    
Initial Public Offering | Class A common stock | Public Warrants      
Public Offering      
Number of shares issuable per warrant 1    
Exercise price of warrants $ 11.50    
Over-allotment option      
Public Offering      
Number of units sold 1,875,000    
Purchase price per unit $ 10.00    
v3.23.3
Private Placement (Details) - Private Placement Warrants - USD ($)
Nov. 19, 2021
Sep. 30, 2023
Private Placement    
Price of warrants   $ 1.00
Private Placement    
Private Placement    
Number of warrants to purchase shares issued 7,531,250  
Price of warrants $ 1.00  
Proceeds from issuance of private placement warrants $ 7,531,250  
Number of shares issuable per warrant 1  
Exercise price of warrant $ 11.50  
v3.23.3
Related Party Transactions - Founder Shares (Details) - USD ($)
1 Months Ended 9 Months Ended
Feb. 14, 2023
Feb. 28, 2023
Aug. 31, 2021
Jun. 30, 2021
Sep. 30, 2023
Dec. 31, 2022
Voting and Non Redemption agreement            
Related Party Transactions            
Aggregate number of shares owned         3,281,138  
Number of shares provided for allocation         820,284  
Class B common stock            
Related Party Transactions            
Common stock, shares outstanding (in shares)         0 3,593,750
Class A common stock            
Related Party Transactions            
Common stock, shares outstanding (in shares)         0 0
Sponsor            
Related Party Transactions            
Common stock, shares outstanding (in shares)         7,843,498  
Sponsor | Class B common stock            
Related Party Transactions            
Aggregate number of shares owned 3,393,750          
Sponsor | Class A common stock            
Related Party Transactions            
Number of shares provided for allocation 84,994.96          
Issue price per remaining share $ 0.02          
Founder Shares | Related party | Voting and Non Redemption agreement            
Related Party Transactions            
Aggregate number of shares owned   3,281,138        
Founder Shares | Sponsor            
Related Party Transactions            
Shares forfeited     718,750      
Percentage of issued and outstanding shares after the initial public offering collectively held by initial stockholders     20.00%      
Shares no longer subject to forfeiture     468,750      
Restrictions on transfer period of time after business combination completion         1 year  
Sponsor Contribution to Company's Trust Account   $ 84,994        
Issue price per remaining share   $ 0.02        
Contribution price per share into trust account   $ 0.04        
Common stock, shares outstanding (in shares)     3,593,750      
Founder Shares | Sponsor | Voting and Non Redemption agreement            
Related Party Transactions            
Number of shares provided for allocation   820,284        
Founder Shares | Sponsor | Class B common stock            
Related Party Transactions            
Issuance of common stock to Sponsor (in shares)       3,593,750    
Issuance of common stock to sponsor       $ 25,000    
Shares subject to forfeiture     468,750      
Founder Shares | Sponsor | Class A common stock            
Related Party Transactions            
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share)         $ 12.00  
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination         20 days  
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination         30 days  
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences         150 days  
Number of shares converted   3,393,750        
v3.23.3
Related Party Transactions Promissory Note and Advances (Details) - USD ($)
9 Months Ended
Feb. 16, 2023
Nov. 19, 2021
Sep. 30, 2023
Sep. 30, 2022
Dec. 31, 2022
Jun. 21, 2021
Related Party Transactions            
Outstanding balance     $ 1,200,000      
Working Capital Loan Outstanding Balance     1,200,000      
Promissory Note | Sponsor            
Related Party Transactions            
Outstanding balance     $ 0 $ 0    
Promissory Note | Maximum | Sponsor            
Related Party Transactions            
Loan conversion agreement warrant           $ 400,000
Promissory Note | Working capital loans warrant | Related party            
Related Party Transactions            
Price of warrant     $ 1.00      
Administrative Support Agreement | Sponsor            
Related Party Transactions            
Administrative Fees Payable Per Month   $ 10,000        
Administrative Fees Expense     $ 90,000 $ 90,000    
Working Capital Loans | Sponsor            
Related Party Transactions            
Exercise price of warrants $ 1.00          
Working Capital Loan Outstanding Balance     1,200,000      
Working Capital Loans | Maximum            
Related Party Transactions            
Conversion amount $ 1,500,000          
Working Capital Loans | Maximum | Related party            
Related Party Transactions            
Maximum borrowing capacity of related party promissory note     1,500,000      
Working Capital Loans | Maximum | Sponsor            
Related Party Transactions            
Maximum borrowing capacity of related party promissory note     $ 1,500,000      
Working Capital Loans | Working capital loans warrant | Related party            
Related Party Transactions            
Outstanding balance         $ 0  
v3.23.3
Investment Held in Trust Account (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Investment Held in Trust Account    
Assets held in Trust Account $ 36,392,519 $ 147,639,566
U.S. Money Market    
Investment Held in Trust Account    
Assets held in Trust Account 990 464
U.S. Treasury Securities held in Trust Account    
Investment Held in Trust Account    
Assets held in Trust Account $ 36,391,529 $ 147,639,102
v3.23.3
Commitments & Contingencies (Details)
3 Months Ended 6 Months Ended
May 31, 2023
USD ($)
D
$ / shares
shares
May 03, 2023
USD ($)
Nov. 19, 2021
USD ($)
Sep. 30, 2023
USD ($)
item
$ / shares
Jun. 30, 2023
USD ($)
Dec. 31, 2022
USD ($)
Commitments & Contingencies            
Maximum number of demands for registration of securities | item       3    
Deferred fee per unit | $ / shares       $ 0.35    
Deferred underwriting fee payable       $ 5,031,250   $ 5,031,250
Amount of underwriting fee agreed to waive   $ 1,000,000        
Value of shares redeemed       91,056 $ 1,040,287  
Proceeds from sale of stock     $ 145,906,250      
Forward Purchase Agreement            
Commitments & Contingencies            
Derivative liability           0
Forward Purchase Agreement | Put option            
Commitments & Contingencies            
Fair value of put option estimated value       2,212,335    
Derivative liability $ 2,016,000          
Forward Purchase Agreement | Maximum | Put option            
Commitments & Contingencies            
Repurchase of stock | shares 4,200,000          
Fair value of put option estimated value       $ 2,212,335   $ 0
Derivative liability $ 2,016,000          
OTC Equity Prepaid Forward Transaction agreement | Class A common stock            
Commitments & Contingencies            
Shares issued | shares 4,200,000          
Percentage of share outstanding 9.90%          
Value of shares redeemed $ 43,000,000          
Redemption price percentage 1.00%          
Sale of stock, price per share | $ / shares $ 10.00          
Weighted average price per share from sale of stock transaction | $ / shares $ 5.00          
Sale of stock transaction trading days during period | D 20          
Sale of stock transaction consecutive trading days during period | D 30          
Share consideration | shares 300,000          
OTC Equity Prepaid Forward Transaction agreement | Class A common stock | Maximum            
Commitments & Contingencies            
Shares issued | shares 4,200,000          
Proceeds from sale of stock $ 41,580,000          
v3.23.3
Stockholders' Equity - Preferred Stock (Details) - $ / shares
Sep. 30, 2023
Dec. 31, 2022
Stockholders' Equity    
Preferred stock, shares authorized (in shares) 1,000,000 1,000,000
Preferred stock, par value (in dollars per share) $ 0.0001 $ 0.0001
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
v3.23.3
Stockholders' Equity - Common Stock (Details)
9 Months Ended
Feb. 16, 2023
shares
Sep. 30, 2023
Vote
$ / shares
shares
Dec. 31, 2022
$ / shares
shares
Stockholders' Equity      
Number of Class B common shares converted to shares of Class A Common Stock 3,593,750    
Class A common stock      
Stockholders' Equity      
Common stock, shares authorized (in shares)   100,000,000 100,000,000
Common stock, par value (in dollars per share) | $ / shares   $ 0.0001 $ 0.0001
Common stock, votes per share | Vote   1  
Common stock, shares issued (in shares)   0 0
Common stock, shares outstanding (in shares)   0 0
Class A common stock subject to possible redemption      
Stockholders' Equity      
Class A common stock subject to possible redemption, outstanding (in shares)   3,388,729 14,375,000
Class A common stock non-redeemable      
Stockholders' Equity      
Common stock, shares authorized (in shares)   100,000,000 100,000,000
Common stock, par value (in dollars per share) | $ / shares   $ 0.0001 $ 0.0001
Common stock, shares issued (in shares)   3,593,750 0
Common stock, shares outstanding (in shares)   3,593,750 0
Class B common stock      
Stockholders' Equity      
Common stock, shares authorized (in shares)   10,000,000 10,000,000
Common stock, par value (in dollars per share) | $ / shares   $ 0.0001 $ 0.0001
Common stock, votes per share | Vote   1  
Common stock, shares issued (in shares)   0 3,593,750
Common stock, shares outstanding (in shares)   0 3,593,750
Ratio to be applied to the stock in the conversion   20  
v3.23.3
Warrant Liability (Details)
9 Months Ended
Sep. 30, 2023
D
$ / shares
shares
Nov. 19, 2021
$ / shares
Warrant Liability    
Public Warrants exercisable term from the closing of the business combination 30 days  
Maximum threshold period for registration statement to become effective after business combination 60 days  
Warrants expiration term 5 years  
Redemption price per public warrant (in dollars per share) $ 0.01  
Minimum threshold written notice period for redemption of public warrants 30 days  
Stock price trigger for redemption of public warrants (in dollars per share) $ 18.00  
Threshold trading days for redemption of public warrants 20 days  
Threshold consecutive trading days for redemption of public warrants 30 days  
Number of trading days on which fair market value of shares is reported | D 10  
Shares issuable per warrant | shares 0.361  
Share price $ 9.20 $ 10.15
Percentage of gross proceeds on total equity proceeds 60.00%  
Threshold period for filling registration statement after business combination 20 days  
Adjustment of exercise price of warrants based on market value and newly issued price (as a percent) 115.00%  
Adjustment of redemption price of stock based on market value and newly issued price 1 (as a percent) 180.00%  
Threshold business days before sending notice of redemption to warrant holders 30 days  
v3.23.3
Income Tax - (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Income Tax        
Statutory federal income tax rate 34.09% 7.47% 13.46% 3.62%
Effective tax rate 21.00%   21.00%  
v3.23.3
Fair Value Measurements - Schedule of company's assets that are measured at fair value on a recurring basis (Detail) - Recurring - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Assets:    
Assets $ 36,392,519 $ 146,763,435
Level 1    
Assets:    
Assets 36,392,519 146,763,435
U.S. Money Market held in Trust Account    
Assets:    
Assets 990 923
U.S. Money Market held in Trust Account | Level 1    
Assets:    
Assets 990 923
U.S. Treasury Securities held in Trust Account    
Assets:    
Assets 36,391,529 146,762,512
U.S. Treasury Securities held in Trust Account | Level 1    
Assets:    
Assets $ 36,391,529 $ 146,762,512
v3.23.3
Fair Value Measurements - Schedule of company's liabilities that are measured at fair value on a recurring basis (Details) - USD ($)
Sep. 30, 2023
Dec. 31, 2022
Nov. 19, 2021
Liabilities:      
Forward purchase agreement liability $ 2,212,335    
Recurring      
Liabilities:      
Total Derivative Liabilities 3,041,072 $ 162,181 $ 11,946,116
Level 1 | Recurring | Public Warrants      
Liabilities:      
Warrant Liability 395,313 71,875  
Level 3 | Recurring      
Liabilities:      
Forward purchase agreement liability 2,212,335    
Level 3 | Recurring | Public Warrants      
Liabilities:      
Warrant Liability     5,751,494
Level 3 | Recurring | Private Placement Warrants      
Liabilities:      
Warrant Liability $ 433,424 $ 90,306 $ 6,194,622
v3.23.3
Fair Value Measurements - Key inputs into the Monte Carlo simulation model for the Public Warrants and Private Placement Warrants (Details)
9 Months Ended
Sep. 30, 2023
$ / shares
Y
shares
Dec. 31, 2022
Y
$ / shares
Nov. 19, 2021
Y
$ / shares
Fair Value Measurements      
Number of shares in a unit 1    
Number of warrants in a unit 0.5    
Risk-free interest rate | Monte Carlo simulation model      
Fair Value Measurements      
Derivative liability, measurement input 0.0547 0.0472 0.0133
Expected term (years) | Monte Carlo simulation model      
Fair Value Measurements      
Derivative liability, measurement input | Y 0.95 1.04 5.93
Expected volatility | Monte Carlo simulation model      
Fair Value Measurements      
Derivative liability, measurement input 0.032 0.043 0.135
Stock price | Monte Carlo simulation model      
Fair Value Measurements      
Derivative liability, measurement input | $ / shares 10.71 10.19 9.6
v3.23.3
Fair Value Measurements - Change in the Fair Value of the Warrant Liabilities (Details) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended
Nov. 19, 2021
Dec. 31, 2021
Sep. 30, 2023
Jun. 30, 2023
Mar. 31, 2023
Sep. 30, 2022
Mar. 31, 2022
Sep. 30, 2023
Dec. 31, 2022
Sep. 30, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation                    
Fair value - beginning balance     $ 1,290,342 $ 914,514 $ 162,181   $ 7,428,979 $ 162,181 $ 4,866,362 $ 7,428,979
Initial measurement on November 19, 2021 $ 11,946,116                  
Change in valuation inputs or other assumptions   $ (4,517,137) (461,605) 375,828 752,333 $ (1,636,842) (2,562,617) 666,556 (4,704,181) (5,093,141)
Fair value - ending balance   7,428,979 828,737 1,290,342 914,514   4,866,362 828,737 162,181  
Public Warrants                    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation                    
Fair value - beginning balance     610,938 431,968 71,875   3,608,125 71,875 2,365,406 3,608,125
Initial measurement on November 19, 2021 5,751,494                  
Change in valuation inputs or other assumptions   (2,143,369) (215,625) 178,970 360,093   (1,242,719)   (2,293,531)  
Fair value - ending balance   3,608,125 395,313 610,938 431,968   2,365,406 395,313 71,875  
Private Placement Warrants                    
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation                    
Fair value - beginning balance     679,404 482,546 90,306   3,820,854 90,306 2,500,956 $ 3,820,854
Initial measurement on November 19, 2021 $ 6,194,622                  
Change in valuation inputs or other assumptions   (2,373,768) (245,980) 196,858 392,240   (1,319,898)   (2,410,650)  
Fair value - ending balance   $ 3,820,854 $ 433,424 $ 679,404 $ 482,546   $ 2,500,956 $ 433,424 $ 90,306  
v3.23.3
Fair Value Measurements - Forward purchase agreement derivative liabilities (Details) - Forward Purchase Agreement
Sep. 30, 2023
Y
$ / shares
May 31, 2023
Y
$ / shares
Risk-free interest rate    
Fair Value Measurements    
Derivative liability, measurement input 0.040 0.0395
Expected term (years)    
Fair Value Measurements    
Derivative liability, measurement input | Y 3.25 3.5
Stock price    
Fair Value Measurements    
Derivative liability, measurement input | $ / shares 10.71 10.35
Volatility - pre-business combination    
Fair Value Measurements    
Derivative liability, measurement input 0.024 0.026
Volatility - post-business combination    
Fair Value Measurements    
Derivative liability, measurement input 0.663 0.629
v3.23.3
Fair Value Measurements - Fair value of forward purchase agreement derivative liability (Details) - USD ($)
1 Months Ended 3 Months Ended 9 Months Ended
Jun. 30, 2023
Sep. 30, 2023
Sep. 30, 2023
Fair Value Measurements      
Fair value - beginning balance   $ 1,290,342 $ 162,181
Change in fair value of forward purchase agreement liability   322,335 196,335
Fair value - ending balance $ 1,290,342 828,737 828,737
Forward Purchase Agreement      
Fair Value Measurements      
Change in fair value of forward purchase agreement liability   (322,335) 196,335
Forward Purchase Agreement | Recurring      
Fair Value Measurements      
Fair value - beginning balance 2,016,000 1,890,000  
Change in fair value of forward purchase agreement liability (126,000) 322,335  
Fair value - ending balance $ 1,890,000 $ 2,212,335 $ 2,212,335
v3.23.3
Fair Value Measurements - Additional Information (Details) - USD ($)
3 Months Ended 9 Months Ended
Nov. 19, 2021
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2023
Sep. 30, 2022
Jun. 30, 2023
Mar. 31, 2023
Dec. 31, 2022
Mar. 31, 2022
Dec. 31, 2021
Fair Value Measurements                    
Initial fair value of warrants $ 11,946,116                  
Fair value of warrants   $ 828,737   $ 828,737   $ 1,290,342 $ 914,514 $ 162,181 $ 4,866,362 $ 7,428,979
Change in fair value of forward purchase agreement liability   (322,335)   (196,335)            
Transfers between fair value levels   0 $ 0 0 $ 0          
Forward Purchase Agreement                    
Fair Value Measurements                    
Change in fair value of forward purchase agreement liability   $ 322,335   $ (196,335)            
Derivative liability               $ 0    
Public Warrants                    
Fair Value Measurements                    
Exercise price of warrants $ 0.80 $ 0.06   $ 0.06       $ 0.02    
Initial fair value of warrants $ 5,700,000                  
Fair value of warrants   $ 390,000   $ 390,000       $ 70,000.00    
Private Placement Warrants                    
Fair Value Measurements                    
Exercise price of warrants $ 0.82 $ 0.06   $ 0.06       $ 0.02    
Initial fair value of warrants $ 6,200,000                  
Fair value of warrants   $ 430,000   $ 430,000       $ 90,000.00    

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