SYNTEC OPTICS HOLDINGS, INC. quarterly report, Q1 FY2022

Business context and reporting period

The supplied filing is OmniLit Acquisition Corp.’s unaudited Form 10-Q for the quarter ended March 31, 2022—not a filing under the name Syntec Optics Holdings, Inc. OmniLit was a blank-check company seeking a business combination. It had not selected a target or begun substantive target discussions as of quarter-end and had no operating business.

Financial performance and position

  • Revenue: No operating revenue; the company expected none before completing a business combination.
  • Results: Operating costs were $183,884; trust-account interest was $11,967; net loss was $171,917, or $0.01 per share for both Class A and Class B.
  • Cash flow: Cash used in operating activities was $250,852 and cash used in financing activities was $66,435. Cash outside the trust fell by $317,287 to $177,312.
  • Assets and liquidity: Total assets were $147.1 million, including $146.6 million in trust-account investments and cash. Current liabilities were $72,501. The trust balance was restricted principally for a business combination or redemptions.
  • Debt and obligations: The filing reports no long-term debt or lease obligations. A $5.03 million deferred underwriting fee is payable only if a business combination is completed.
  • Equity: Stockholders’ deficit was $4.60 million; 14.375 million public shares were classified as temporary equity at a $10.20 redemption value per share.

Changes versus prior period

Compared with December 31, 2021, cash outside the trust declined from $494,599 to $177,312; current assets fell from $666,507 to $389,909; and total assets decreased from $147.43 million to $147.12 million. Accumulated deficit increased by $171,917, reflecting the quarter’s net loss. The filing provides no Q1 2021 operating-period comparison.

Outlook, risks, and other matters

  • Management believed available working capital and borrowing capacity would meet needs through the earlier of a business combination or one year from the filing. The sponsor had committed access to an additional $100,000 if needed; none had been advanced by March 31.
  • The stated initial combination period was 15 months from the November 2021 IPO, with up to two three-month extensions possible subject to sponsor funding. The filing identifies February 12, 2023 as the scheduled liquidation date. Failure to complete a combination within the permitted period would generally require redemption of public shares and liquidation.
  • Management warned that actual search and transaction costs could exceed available working capital; additional financing might be needed to complete a combination or meet redemptions. The sponsor was not obligated to provide working-capital loans or extensions.
  • The sponsor’s trust-protection indemnity may not be collectible: the company had not verified the sponsor’s ability to pay and believed its assets consisted only of company securities. Trust assets could also be subject to creditor claims.
  • Management said COVID-19 could adversely affect the company’s position or target search, but the impact was not determinable. No material litigation, material risk-factor changes, or subsequent events requiring disclosure were reported. Disclosure controls were deemed effective.
  • No revenue or earnings guidance was provided. The filing noted no material market or interest-rate exposure from its short-term Treasury and money-market investments.

Important facts for investors to verify

  1. Confirm the intended issuer: this document identifies OmniLit Acquisition Corp., not Syntec Optics Holdings, Inc.
  2. Check the company’s current business-combination status, deadline, and any extensions or sponsor deposits.
  3. Assess cash available outside the trust, spending needs, and whether sponsor support or other financing has been obtained.
  4. Review redemption terms, the deferred underwriting fee, and potential claims against trust assets.
  5. Confirm whether a later filing provides operating results or developments not covered by this Q1 2022 report.