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ShoulderUp Technology Acquisition Corp Cl A (SUAC0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a net loss of approximately $0.3 million for the three months ended September 30, 2024, compared to a net income of approximately $73,000 for the same period in 2023. The loss is attributed to general and administrative expenses, changes in fair value of derivative liability, and franchise tax expense.
As of September 30, 2024, the company had $192,363 in its operating bank account with a working capital deficit of approximately $4.8 million. The company has a subscription receivable of $600,000, which is expected to be used to satisfy liquidity needs.
The company has entered into non-redemption agreements with third parties, agreeing not to redeem shares of Class A common stock in exchange for allocations of Founder Shares. The liability associated with these agreements was valued at $8,394,024 as of September 30, 2024.
On March 18, 2024, the company entered into a Business Combination Agreement with SEE ID, Inc. The agreement involves merging ShoulderUp Merger Sub with ShoulderUp, and SEI Merger Sub with SEE ID, with SEE ID becoming a wholly-owned subsidiary of Holdings.
The company has extended the deadline for completing a business combination multiple times, with the current deadline set for December 31, 2024. If the company fails to complete a business combination by this date, it will cease operations and liquidate.
The company has faced challenges including delisting from the New York Stock Exchange, which has resulted in its securities being quoted on the OTC market. This may affect liquidity and the ability to attract potential business combination targets.
The company's management has identified material weaknesses in internal controls over financial reporting, specifically related to period closing and compliance with the Trust Agreement. No changes to internal controls were reported during the quarter ended September 30, 2024.
The company continues to focus on completing its proposed business combination with SEE ID, while managing its liquidity and addressing identified material weaknesses in internal controls.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the ShoulderUp Technology Acquisition Corp Cl A quarterly 10-Q report dated November 29, 2024. To report an error, please email earnings@qz.com.