Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Atlantic Coastal Acquisition Corp - Class A

Announcement: ACAH 10-Q Quarterly Report

XBRL TAXONOMY EXTENSION DEFINITION LINKBASE

XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE

Announcement: ACAH 8-K Special Filing

Part 1: Performance Analysis

Atlantic Coastal Acquisition Corp is a blank check company that was established in December 2020 with the intention of merging, acquiring assets, stock purchase or reorganization with one or more businesses. The company has yet to engage in any operations that have generated revenue to date, and it comprises of organizational activities and those needed for preparing for the Initial Public Offering. The company generated non-operating income amounting to $4.6 million in interest dividends on marketable securities held in Trust Account, making $17.9 million in net income for the year ended December 31st, 2022. 

In 2021, the company recorded a net loss of $9.2 million, with a $7.1 million operating cost coupled with changes in the fair value of the warrant liabilities amounting to $2.1 million. The company's liquidity position is strong, with a cash balance of $349 million in marketable securities held in the Trust Account, including $3.9 million of interest income as of December 31, 2022.

Part 2: Forward Looking Analysis

The company’s intended use of funds consists of substantially all the funds held in the Trust Account, which includes any amounts representing interest earned (excluding income taxes, if any) to finalize their planned Business Combination. This includes partial or whole use of debt or capital stock as consideration in completing the transaction, with a remaining balance catering to working capital ventures, business operations funding of the targeted companies, and support of growth strategies.

The new and upcoming targets for Business Combination have not been declared, neither has any potential transaction been named. The company has no assurance from its Business Combination plans. Atlantic Coastal Acquisition Corp is solely focused on identifying potential companies that demonstrate robust fundamental performances with exciting growth prospects. Furthermore, the company will place significant emphasis on analyzing their operational capacity, financial statements, and management in selecting their preferred Business Combination.

As alluded to in the Management’s Discussion and Analysis of Financial Condition and Results of Operations report, changes in the value of the outstanding warrants can have a material impact on the company's financial performance. The fear of a failed Business Combination could adversely affect the outstanding warrants, leading to decreased trading prices and significant losses for Atlantic Coastal Acquisition Corp. 

In conclusion, while the company's financial position is strong, the absence of an immediately identifiable Business Combination plan and lack of tangible forward-looking objectives poses significant investment risks. Therefore, potential investors should monitor the future developments of Atlantic Coastal Acquisition Corp's Business Combination and watch for any modifications in their strategies, risk factors, and financial performance.

Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405]

Atlantic Coastal Acquisition Corp: Blank Check Analysis & Future Prospects for Retail Investors

Form 8-K - Current report - Item 3.01 Item 5.02 Item 8.01

Form 8-K - Current report - Item 1.01 Item 5.03 Item 5.07 Item 8.01 Item 9.01