Battery Future Acquisition Corp. Quarterly Report for the Period Ended March 31, 2024
Battery Future Acquisition Corp. Quarterly Report for the Period Ended March 31, 2024
Battery Future Acquisition Corp. has reported a balance sheet, statement of operations, statement of shareholders’ equity, and statement of cash flows for the quarter ended March 31, 2024. The company had 5,170,599 Class A ordinary shares and 8,625,000 Class B ordinary shares outstanding. The financial report provides unaudited financial statements and management’s discussion and analysis of financial condition and results of operations.
Company Overview
Blank Check Company (“the Company”) was incorporated in July 2021 to pursue an initial business combination with one or more businesses. In December 2021, the Company completed an initial public offering, raising $345 million held in a trust account.
The Company has until June 2024 to complete a business combination or it will be required to liquidate. The Company’s sponsor and certain investors have provided loans and investments to finance the Company’s search for a target business.
Financial Performance
For the three months ended March 2024, the Company had net income of $3.5 million. This was primarily driven by:
- Favorable change in value of warrant liabilities: $1.3 million
- Interest income: $0.7 million
- Debt forgiveness: $1.6 million
The Company does not yet generate operating revenue as it searches for a business combination target. Its expenses are related to being a public company and searching for an acquisition target.
Trust Account
The Company holds the $345 million raised in its IPO in a trust account.
The trust account balance has decreased over time due to shareholder redemptions. After two shareholder redemptions, the trust account held $56.3 million at December 2023.
Interest earned on the trust account offsets some of the Company’s expenses.
Liquidity
As of March 2024, the Company had $32,949 of cash on hand, excluding the trust account.
The Company has relied on funding from its sponsor and certain investors to finance its search for a target and trust account extensions. This funding has been provided through promissory notes.
In January 2024:
- The sponsor and investors cancelled $16.3 million of warrants they had purchased
- Investors cancelled $6.4 million of promissory notes plus $2.4 million of accrued interest
This improved the Company’s liquidity position.
Going Concern
The Company has until June 2024 to complete a business combination.
If a combination is not completed by then, the Company will be required to liquidate according to its governing documents.
This mandatory liquidation requirement raises doubt about the Company’s ability to continue as a going concern.
Future Outlook
The Company continues to evaluate potential target businesses for an acquisition.
It has benefited from additional extensions of time to complete a deal. However, the Company has finite liquidity and must complete a business combination by June 2024 or liquidate.
The support of the sponsor and investors in cancelling warrants and debt has improved the Company’s ability to get a deal done. However, there remains uncertainty around successfully completing an acquisition given the tight timeline.
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