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Fortune Rise Acquisition Corporation (FRLAW0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a net loss of $96,762 for the three months ended September 30, 2024, compared to a net income of $40,383 in the same period of the previous year. The loss is attributed to operating costs and tax expenses, partially offset by interest income.
As of September 30, 2024, the company had $8,446 in cash held outside the Trust Account and a working capital deficit of $7,922,546. The company has incurred significant costs related to being a publicly traded entity and pursuing a business combination.
The company has extended its deadline to consummate a business combination multiple times, with the latest extension allowing until May 5, 2025. These extensions have been funded primarily by loans from Water On Demand, Inc.
Fortune Rise Acquisition Corporation is a blank check company formed for the purpose of effecting a merger or similar business combination. The company has signed a Business Combination Agreement with Water On Demand, Inc., which, if completed, would result in the company being renamed to Water on Demand, Inc.
The company has faced challenges including a Nasdaq delisting, which may impact its ability to complete a business combination. The securities are now quoted on an over-the-counter market.
The filing highlights a going concern uncertainty, as the company may not be able to continue operations without completing a business combination by the extended deadline.
Fortune Rise Acquisition Corporation has issued multiple promissory notes to fund its operations and extensions, with terms allowing for conversion into shares under certain conditions.
The company has not recognized any stock-based compensation expense related to founder shares due to the uncertainty of completing a business combination.
The report also notes the impact of the Inflation Reduction Act of 2022, which imposes a 1% excise tax on certain stock repurchases, potentially affecting the company's financial position.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Fortune Rise Acquisition Corporation Warrant quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.