Tue, Aug 27, 8:28 AM (326 days ago)
Mountain Crest Acquisition Corp. V (MCAG) reported a net loss of $2,251 in 2023, compared to a net income of $4,471 in 2022, primarily due to increased operating expenses of $2,654,975. The company generated interest income of $510,728 from its Trust Account, which held $5,613,395 in marketable securities at year-end. Operating cash outflows were $470,675, with a significant portion attributed to administrative costs. MCAG's business combination agreement with AUM Biosciences was terminated in June 2023, prompting a shift in focus. The company has extended its business combination period to November 16, 2024, following shareholder approval for an extension amendment. Additionally, it faced compliance issues with Nasdaq regarding market value requirements, but regained compliance in November 2023. The company issued unsecured promissory notes totaling $700,000 to its Sponsor for working capital, with outstanding amounts subject to conversion into common stock. Despite the challenges, MCAG aims to complete a business combination by the extended deadline, although management has raised concerns about the company’s ability to continue as a going concern if unsuccessful.