Freenome (FRNM) Q2 2024 earnings summary

Executive summary

• Incorporated on March 22, 2024, as a blank check company to pursue a business combination; no operating revenues to date, only interest income from IPO proceeds held in trust.

• Completed IPO on June 13, 2024, raising $86.25 million from 8,625,000 Class A shares, including full over-allotment exercise.

• Simultaneously sold 286,250 private placement shares for $2.86 million to the sponsor.

• Net income for Q2 2024 was $102,875, driven by interest income and unrealized gains, offset by operating costs.

Financial highlights

• As of June 30, 2024: $1.29 million in cash outside the trust account and $86.46 million in U.S. Treasury securities in the trust account.

• Net income for Q2 2024: $102,875; for the period from inception through June 30, 2024: $87,478.

• Operating costs for Q2 2024: $106,554; interest income: $202,332; unrealized gain: $7,097.

• Transaction costs for IPO totaled $4.81 million, including $1.73 million cash underwriting fee and $3.45 million deferred underwriting fee.

Outlook and guidance

• Intends to use IPO and private placement proceeds to complete a business combination by June 13, 2026.

• No assurance of completing a business combination within the required period; failure to do so will result in liquidation.