$FRLA
Fortune Rise Acquisition Corp Stock $frla

$frla Overview Financials Valuation SEC Filings Company Website

2023 Q3 Form 10-Q Financial Statement

#000168316823005745 Filed on August 14, 2023

Income Statement

Concept	2023 Q3	2023 Q2	2022 Q2
Revenue	$0.00	$0.00	$0.00
YoY Change
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin	$38.00K	$20.00K	$48.20K
YoY Change	-21.81%	-58.51%
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization
YoY Change
% of Gross Profit
Operating Expenses	$431.4K	$560.0K	$323.8K
YoY Change	57.13%	72.94%
Operating Profit	-$431.4K	-$557.8K	-$323.8K
YoY Change	57.13%	72.27%
Interest Expense	$487.7K	$760.0K	$141.6K
YoY Change	8.19%	436.69%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income	$56.36K	$201.7K	-$182.2K
YoY Change	-68.03%	-210.72%
Income Tax	$15.98K	$206.7K	$0.00
% Of Pretax Income	28.35%	102.44%
Net Earnings	$40.38K	-$4.927K	-$182.2K
YoY Change	-77.09%	-97.3%
Net Earnings / Revenue
Basic Earnings Per Share
Diluted Earnings Per Share	$0.01	$0.00	-$14.14K
COMMON SHARES
Basic Shares Outstanding	6.724M shares	12.88M shares	12.88M
Diluted Shares Outstanding

Balance Sheet

Concept	2023 Q3	2023 Q2	2022 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments	$111.8K	$200.0K	$388.6K
YoY Change	-51.62%	-48.53%
Cash & Equivalents	$111.7K	$187.2K	$388.6K
Short-Term Investments
Other Short-Term Assets	$192.8K	$200.0K	$96.15K
YoY Change	412.01%	108.01%
Inventory
Prepaid Expenses	$192.8K	$212.2K
Receivables
Other Receivables
Total Short-Term Assets	$304.5K	$399.4K	$484.7K
YoY Change	13.36%	-17.61%
LONG-TERM ASSETS
Property, Plant & Equipment
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments	$39.54M	$38.80M	$99.86M
YoY Change	-60.59%	-61.14%
Other Assets
YoY Change
Total Long-Term Assets	$39.54M	$38.79M	$99.86M
YoY Change	-60.59%	-61.16%
TOTAL ASSETS
Total Short-Term Assets	$304.5K	$399.4K	$484.7K
Total Long-Term Assets	$39.54M	$38.79M	$99.86M
Total Assets	$39.84M	$39.19M	$100.3M
YoY Change	-60.39%	-60.95%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable	$218.1K	$100.0K	$200.00
YoY Change	2076.25%	49900.0%
Accrued Expenses	$654.3K	$700.0K
YoY Change
Deferred Revenue
YoY Change
Short-Term Debt	$4.010M	$3.400M	$0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities	$4.882M	$4.269M	$96.80K
YoY Change	3045.36%	4310.07%
LONG-TERM LIABILITIES
Long-Term Debt	$0.00	$0.00	$0.00
YoY Change
Other Long-Term Liabilities	$3.421M	$3.400M	$3.421M
YoY Change	0.0%	-0.62%
Total Long-Term Liabilities	$3.421M	$3.400M	$3.421M
YoY Change	0.0%	-0.62%
TOTAL LIABILITIES
Total Short-Term Liabilities	$4.882M	$4.269M	$96.80K
Total Long-Term Liabilities	$3.421M	$3.400M	$3.421M
Total Liabilities	$8.303M	$7.690M	$3.518M
YoY Change	132.17%	118.59%
SHAREHOLDERS EQUITY
Retained Earnings	-$8.047M	-$7.354M
YoY Change	157.34%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity	-$8.047M	-$7.353M	$96.82M
YoY Change
Total Liabilities & Shareholders Equity	$39.84M	$39.19M	$100.3M
YoY Change	-60.39%	-60.95%

Cashflow Statement

Concept	2023 Q3	2023 Q2	2022 Q2
OPERATING ACTIVITIES
Net Income	$40.38K	-$4.927K	-$182.2K
YoY Change	-77.09%	-97.3%
Depreciation, Depletion And Amortization
YoY Change
Cash From Operating Activities	-$424.8K	-$1.320M	-$228.9K
YoY Change	169.54%	476.7%
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities	-$260.6K	$65.79M
YoY Change
Cash From Investing Activities	-$260.6K	$65.79M
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities	610.0K	-64.44M	0.000
YoY Change
NET CHANGE
Cash From Operating Activities	-424.8K	-1.320M	-228.9K
Cash From Investing Activities	-260.6K	65.79M
Cash From Financing Activities	610.0K	-64.44M	0.000
Net Change In Cash	-75.46K	30.00K	-228.9K
YoY Change	-52.12%	-113.11%
FREE CASH FLOW
Cash From Operating Activities	-$424.8K	-$1.320M	-$228.9K
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

Frame	Concept Type	Concept / XBRL Key	Value	Unit
	dei	Entity Central Index Key EntityCentralIndexKey	0001849294
	dei	Amendment Flag AmendmentFlag	false
	dei	Current Fiscal Year End Date CurrentFiscalYearEndDate	--12-31
	dei	Document Fiscal Year Focus DocumentFiscalYearFocus	2023
	dei	Document Fiscal Period Focus DocumentFiscalPeriodFocus	Q2
CY2023Q2	us-gaap	Commitments And Contingencies CommitmentsAndContingencies		usd
CY2022Q4	us-gaap	Commitments And Contingencies CommitmentsAndContingencies		usd
	dei	Entity Address Postal Zip Code EntityAddressPostalZipCode	33760
	dei	City Area Code CityAreaCode	(727)
	dei	Document Type DocumentType	10-Q
	dei	Document Quarterly Report DocumentQuarterlyReport	true
	dei	Document Period End Date DocumentPeriodEndDate	2023-06-30
	dei	Document Transition Report DocumentTransitionReport	false
	dei	Entity File Number EntityFileNumber	001-40990
	dei	Entity Registrant Name EntityRegistrantName	FORTUNE RISE ACQUISITION CORPORATION
	dei	Entity Incorporation State Country Code EntityIncorporationStateCountryCode	DE
	dei	Entity Tax Identification Number EntityTaxIdentificationNumber	86-1850747
	dei	Entity Address Address Line1 EntityAddressAddressLine1	13575 58th Street North
	dei	Entity Address Address Line2 EntityAddressAddressLine2	Suite 200
	dei	Entity Address City Or Town EntityAddressCityOrTown	Clearwater
	dei	Entity Address State Or Province EntityAddressStateOrProvince	FL
	dei	Local Phone Number LocalPhoneNumber	440-4603
	dei	Entity Current Reporting Status EntityCurrentReportingStatus	Yes
	dei	Entity Interactive Data Current EntityInteractiveDataCurrent	Yes
	dei	Entity Filer Category EntityFilerCategory	Non-accelerated Filer
	dei	Entity Small Business EntitySmallBusiness	true
	dei	Entity Emerging Growth Company EntityEmergingGrowthCompany	true
	dei	Entity Ex Transition Period EntityExTransitionPeriod	false
	dei	Entity Shell Company EntityShellCompany	true
CY2023Q3	dei	Entity Common Stock Shares Outstanding EntityCommonStockSharesOutstanding	6724202	shares
CY2023Q2	us-gaap	Cash And Cash Equivalents At Carrying Value CashAndCashEquivalentsAtCarryingValue	187204	usd
CY2022Q4	us-gaap	Cash And Cash Equivalents At Carrying Value CashAndCashEquivalentsAtCarryingValue	172314	usd
CY2023Q2	us-gaap	Prepaid Expense Current PrepaidExpenseCurrent	212187	usd
CY2022Q4	us-gaap	Prepaid Expense Current PrepaidExpenseCurrent	4000	usd
CY2023Q2	frla	Prepaid Expenses Related Party PrepaidExpensesRelatedParty	0	usd
CY2022Q4	frla	Prepaid Expenses Related Party PrepaidExpensesRelatedParty	25000	usd
CY2023Q2	us-gaap	Assets Current AssetsCurrent	399391	usd
CY2022Q4	us-gaap	Assets Current AssetsCurrent	201314	usd
CY2023Q2	us-gaap	Assets Held In Trust Noncurrent AssetsHeldInTrustNoncurrent	38787501	usd
CY2022Q4	us-gaap	Assets Held In Trust Noncurrent AssetsHeldInTrustNoncurrent	101942526	usd
CY2023Q2	us-gaap	Assets Assets	39186892	usd
CY2022Q4	us-gaap	Assets Assets	102143840	usd
CY2023Q2	us-gaap	Accounts Payable And Accrued Liabilities Current And Noncurrent AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent	101256	usd
CY2022Q4	us-gaap	Accounts Payable And Accrued Liabilities Current And Noncurrent AccountsPayableAndAccruedLiabilitiesCurrentAndNoncurrent	156052	usd
CY2023Q2	frla	Due To Related Parties Current1 DueToRelatedPartiesCurrent1	0	usd
CY2022Q4	frla	Due To Related Parties Current1 DueToRelatedPartiesCurrent1	50000	usd
CY2023Q2	frla	Promissory Notes Related Party PromissoryNotesRelatedParty	3384735	usd
CY2022Q4	frla	Promissory Notes Related Party PromissoryNotesRelatedParty	733750	usd
CY2023Q2	us-gaap	Taxes Payable Current TaxesPayableCurrent	128675	usd
CY2022Q4	us-gaap	Taxes Payable Current TaxesPayableCurrent	271346	usd
CY2023Q2	frla	Franchise Taxes Payable Current FranchiseTaxesPayableCurrent	0	usd
CY2022Q4	frla	Franchise Taxes Payable Current FranchiseTaxesPayableCurrent	199759	usd
CY2023Q2	frla	Excise Taxes Payable Current ExciseTaxesPayableCurrent	654283	usd
CY2022Q4	frla	Excise Taxes Payable Current ExciseTaxesPayableCurrent	0	usd
CY2023Q2	us-gaap	Liabilities Current LiabilitiesCurrent	4268949	usd
CY2022Q4	us-gaap	Liabilities Current LiabilitiesCurrent	1410907	usd
CY2023Q2	us-gaap	Deferred Income Tax Liabilities DeferredIncomeTaxLiabilities	0	usd
CY2022Q4	us-gaap	Deferred Income Tax Liabilities DeferredIncomeTaxLiabilities	83724	usd
CY2023Q2	frla	Deferred Offering Costs Noncurrent DeferredOfferingCostsNoncurrent	3421250	usd
CY2022Q4	frla	Deferred Offering Costs Noncurrent DeferredOfferingCostsNoncurrent	3421250	usd
CY2023Q2	us-gaap	Liabilities Liabilities	7690199	usd
CY2022Q4	us-gaap	Liabilities Liabilities	4915881	usd
CY2023Q2	us-gaap	Temporary Equity Carrying Amount Attributable To Parent TemporaryEquityCarryingAmountAttributableToParent	38849935	usd
CY2022Q4	us-gaap	Temporary Equity Carrying Amount Attributable To Parent TemporaryEquityCarryingAmountAttributableToParent	101559697	usd
CY2023Q2	us-gaap	Preferred Stock Par Or Stated Value Per Share PreferredStockParOrStatedValuePerShare	0.0001
CY2022Q4	us-gaap	Preferred Stock Par Or Stated Value Per Share PreferredStockParOrStatedValuePerShare	0.0001
CY2023Q2	us-gaap	Preferred Stock Shares Authorized PreferredStockSharesAuthorized	2000000	shares
CY2022Q4	us-gaap	Preferred Stock Shares Authorized PreferredStockSharesAuthorized	2000000	shares
CY2023Q2	us-gaap	Preferred Stock Shares Issued PreferredStockSharesIssued	0	shares
CY2023Q2	us-gaap	Preferred Stock Shares Outstanding PreferredStockSharesOutstanding	0	shares
CY2022Q4	us-gaap	Preferred Stock Shares Issued PreferredStockSharesIssued	0	shares
CY2022Q4	us-gaap	Preferred Stock Shares Outstanding PreferredStockSharesOutstanding	0	shares
CY2023Q2	us-gaap	Preferred Stock Value PreferredStockValue	0	usd
CY2022Q4	us-gaap	Preferred Stock Value PreferredStockValue	0	usd
CY2023Q2	us-gaap	Retained Earnings Accumulated Deficit RetainedEarningsAccumulatedDeficit	-7353552	usd
CY2022Q4	us-gaap	Retained Earnings Accumulated Deficit RetainedEarningsAccumulatedDeficit	-4332048	usd
CY2023Q2	us-gaap	Stockholders Equity StockholdersEquity	-7353242	usd
CY2022Q4	us-gaap	Stockholders Equity StockholdersEquity	-4331738	usd
CY2023Q2	us-gaap	Liabilities And Stockholders Equity LiabilitiesAndStockholdersEquity	39186892	usd
CY2022Q4	us-gaap	Liabilities And Stockholders Equity LiabilitiesAndStockholdersEquity	102143840	usd
CY2023Q2	us-gaap	Operating Costs And Expenses OperatingCostsAndExpenses	535438	usd
CY2022Q2	us-gaap	Operating Costs And Expenses OperatingCostsAndExpenses	275613	usd
	us-gaap	Operating Costs And Expenses OperatingCostsAndExpenses	959657	usd
	us-gaap	Operating Costs And Expenses OperatingCostsAndExpenses	505972	usd
CY2023Q2	frla	Franchise Tax Expense FranchiseTaxExpense	22400	usd
CY2022Q2	frla	Franchise Tax Expense FranchiseTaxExpense	48200	usd
	frla	Franchise Tax Expense FranchiseTaxExpense	72400	usd
	frla	Franchise Tax Expense FranchiseTaxExpense	96600	usd
CY2023Q2	us-gaap	Operating Income Loss OperatingIncomeLoss	-557838	usd
CY2022Q2	us-gaap	Operating Income Loss OperatingIncomeLoss	-323813	usd
	us-gaap	Operating Income Loss OperatingIncomeLoss	-1032057	usd
	us-gaap	Operating Income Loss OperatingIncomeLoss	-602572	usd
CY2023Q2	us-gaap	Investment Income Interest InvestmentIncomeInterest	759567	usd
CY2022Q2	us-gaap	Investment Income Interest InvestmentIncomeInterest	141609	usd
	us-gaap	Investment Income Interest InvestmentIncomeInterest	1854942	usd
	us-gaap	Investment Income Interest InvestmentIncomeInterest	149746	usd
CY2023Q2	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	201729	usd
CY2022Q2	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-182204	usd
	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	822885	usd
	us-gaap	Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest	-452826	usd
CY2023Q2	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	206656	usd
CY2022Q2	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	-0	usd
	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	471606	usd
	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	-0	usd
CY2023Q2	us-gaap	Net Income Loss NetIncomeLoss	-4927	usd
CY2022Q2	us-gaap	Net Income Loss NetIncomeLoss	-182204	usd
	us-gaap	Net Income Loss NetIncomeLoss	351279	usd
	us-gaap	Net Income Loss NetIncomeLoss	-452826	usd
CY2022Q4	us-gaap	Stockholders Equity StockholdersEquity	-4331738	usd
CY2023Q1	frla	Accretion Of Carrying Value To Redemption Value AccretionOfCarryingValueToRedemptionValue	1757925	usd
CY2023Q1	us-gaap	Net Income Loss NetIncomeLoss	356206	usd
CY2023Q1	us-gaap	Stockholders Equity StockholdersEquity	-5733457	usd
CY2023Q2	frla	Accretion Of Carrying Value To Redemption Value AccretionOfCarryingValueToRedemptionValue	960575	usd
CY2023Q2	frla	Excise Taxes Accrual On Redemption Of Class Common Stock ExciseTaxesAccrualOnRedemptionOfClassCommonStock	-654283	usd
CY2023Q2	us-gaap	Net Income Loss NetIncomeLoss	-4927	usd
CY2023Q2	us-gaap	Stockholders Equity StockholdersEquity	-7353242	usd
CY2021Q4	us-gaap	Stockholders Equity StockholdersEquity	-2429432	usd
CY2022Q1	us-gaap	Net Income Loss NetIncomeLoss	-270622	usd
CY2022Q1	us-gaap	Stockholders Equity StockholdersEquity	-2700054	usd
CY2022Q2	us-gaap	Net Income Loss NetIncomeLoss	-182204	usd
CY2022Q2	us-gaap	Stockholders Equity StockholdersEquity	-2882258	usd
	us-gaap	Net Income Loss NetIncomeLoss	351279	usd
	us-gaap	Net Income Loss NetIncomeLoss	-452826	usd
	us-gaap	Investment Income Interest InvestmentIncomeInterest	1854942	usd
	us-gaap	Investment Income Interest InvestmentIncomeInterest	149746	usd
	us-gaap	Deferred Income Tax Expense Benefit DeferredIncomeTaxExpenseBenefit	-83724	usd
	us-gaap	Deferred Income Tax Expense Benefit DeferredIncomeTaxExpenseBenefit	0	usd
	us-gaap	Increase Decrease In Prepaid Expense IncreaseDecreaseInPrepaidExpense	208187	usd
	us-gaap	Increase Decrease In Prepaid Expense IncreaseDecreaseInPrepaidExpense	-91350	usd
	frla	Increase Decrease Prepaid Expenses Related Party IncreaseDecreasePrepaidExpensesRelatedParty	-25000	usd
	frla	Increase Decrease Prepaid Expenses Related Party IncreaseDecreasePrepaidExpensesRelatedParty	-0	usd
	us-gaap	Increase Decrease In Accounts Payable And Accrued Liabilities IncreaseDecreaseInAccountsPayableAndAccruedLiabilities	-54796	usd
	us-gaap	Increase Decrease In Accounts Payable And Accrued Liabilities IncreaseDecreaseInAccountsPayableAndAccruedLiabilities	-8004	usd
	us-gaap	Increase Decrease In Income Taxes IncreaseDecreaseInIncomeTaxes	-142671	usd
	us-gaap	Increase Decrease In Income Taxes IncreaseDecreaseInIncomeTaxes	0	usd
	frla	Increase Decrease Franchise Tax Payable IncreaseDecreaseFranchiseTaxPayable	-199759	usd
	frla	Increase Decrease Franchise Tax Payable IncreaseDecreaseFranchiseTaxPayable	60639	usd
	us-gaap	Net Cash Provided By Used In Operating Activities NetCashProvidedByUsedInOperatingActivities	-2167800	usd
	us-gaap	Net Cash Provided By Used In Operating Activities NetCashProvidedByUsedInOperatingActivities	-458587	usd
	us-gaap	Payments To Acquire Investments PaymentsToAcquireInvestments	1407565	usd
	us-gaap	Payments To Acquire Investments PaymentsToAcquireInvestments	-0	usd
	frla	Withdraw Of Investment Held In Trust Account WithdrawOfInvestmentHeldInTrustAccount	66417533	usd
	frla	Withdraw Of Investment Held In Trust Account WithdrawOfInvestmentHeldInTrustAccount	0	usd
	us-gaap	Net Cash Provided By Used In Investing Activities NetCashProvidedByUsedInInvestingActivities	65009968	usd
	us-gaap	Net Cash Provided By Used In Investing Activities NetCashProvidedByUsedInInvestingActivities	0	usd
	us-gaap	Proceeds From Issuance Of Debt ProceedsFromIssuanceOfDebt	2600985	usd
	us-gaap	Proceeds From Issuance Of Debt ProceedsFromIssuanceOfDebt	0	usd
	frla	Class Common Stock Redemptions ClassCommonStockRedemptions	65428263	usd
	frla	Class Common Stock Redemptions ClassCommonStockRedemptions	-0	usd
	us-gaap	Net Cash Provided By Used In Financing Activities NetCashProvidedByUsedInFinancingActivities	-62827278	usd
	us-gaap	Net Cash Provided By Used In Financing Activities NetCashProvidedByUsedInFinancingActivities	0	usd
	us-gaap	Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect	14890	usd
	us-gaap	Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect	-458587	usd
CY2022Q4	us-gaap	Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	172314	usd
CY2021Q4	us-gaap	Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	847171	usd
CY2023Q2	us-gaap	Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	187204	usd
CY2022Q2	us-gaap	Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents	388584	usd
	us-gaap	Income Taxes Paid Net IncomeTaxesPaidNet	698000	usd
	us-gaap	Income Taxes Paid Net IncomeTaxesPaidNet	0	usd
	us-gaap	Interest Paid Net InterestPaidNet	0	usd
	us-gaap	Interest Paid Net InterestPaidNet	0	usd
	frla	Accretions Of Carrying Value To Redemption Value AccretionsOfCarryingValueToRedemptionValue	2718500	usd
	frla	Accretions Of Carrying Value To Redemption Value AccretionsOfCarryingValueToRedemptionValue	0	usd
	frla	Excise Taxes Accrual On Redemptions Of Class Common Stock ExciseTaxesAccrualOnRedemptionsOfClassCommonStock	654283	usd
	frla	Excise Taxes Accrual On Redemptions Of Class Common Stock ExciseTaxesAccrualOnRedemptionsOfClassCommonStock	0	usd
	us-gaap	Nature Of Operations NatureOfOperations	<p id="xdx_80D_eus-gaap--NatureOfOperations_zgFDhw3P32wj" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Note 1 — <span id="xdx_82C_zhbSB69GDiCk">Organization and Business Operation</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Fortune Rise Acquisition Corporation (the “Company”) is a blank check company incorporated as a Delaware corporation on February 1, 2021. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”). The Company has signed a non-binding Letter of Intent for the Proposed Business Combination as discussed below. The Company has selected December 31 as its fiscal year end.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of June 30, 2023 and December 31, 2022, the Company had not commenced any operations. For the period from February 1, 2021 (inception) through June 30, 2023, the Company’s efforts have been limited to organizational activities as well as activities related to the IPO (as defined below). The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company had and will continue to generate non-operating income in the form of money market fund dividend income earned from the proceeds derived from the IPO.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The registration statement for the Company’s initial public offering (“IPO”) became effective on November 2, 2021. On November 5, 2021, the Company consummated the IPO of <span id="xdx_901_ecustom--UnitsIssuedDuringPeriodSharesNewIssues_iI_c20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_z1OtEDXhaC9d" title="Number of units sold">9,775,000</span> units (including 1,275,000 units issued upon the full exercise of the over-allotment option, the “Public Units”). Each Public Unit consists of <span id="xdx_90F_ecustom--UnitDescription_c20211101__20211102_z5npJm63tp42" title="Unit description">one share of Class A common stock, $0.0001 par value per share (“Class A Common Stock”), and one-half of one redeemable warrant (“Warrant”)</span>, each whole Warrant entitling the holder thereof to purchase one share of Class A Common Stock at an exercise price of $<span id="xdx_900_eus-gaap--ClassOfWarrantOrRightExercisePriceOfWarrantsOrRights1_iI_c20211105__us-gaap--ClassOfWarrantOrRightAxis__us-gaap--WarrantMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zEKTYN3O8NJc" title="Exercise price">11.50</span> per share. The Units were sold at an offering price of $10.00 per Unit, generating gross proceeds of $<span id="xdx_908_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_c20211104__20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zMWcdHJlM401" title="Proceeds from issuance initial public offering">97,750,000</span>. The shares of Class A Common Stock included in the Public Units are referred to as the “public shares.”</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Substantially concurrently with the closing of the IPO, the Company completed the private sale of <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211104__20211105__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_zvjCwBSTzoF1" title="Number of shares issued">545,500</span> shares of Class A Common Stock (the “Private Placement Shares”), comprised of <span id="xdx_90D_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211104__20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__srt--CounterpartyNameAxis__custom--SponsorMember_pdd" title="Number of shares issued">505,500</span> shares sold to the Company’s sponsor, Fortune Rise Sponsor LLC (the “Sponsor”) and <span id="xdx_90E_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211104__20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnitedStatesTigerSecuritiesAndEfHuttonMember_pdd" title="Number of shares issued">40,000</span> shares sold to US Tiger Securities, Inc. (“US Tiger Securities”), and EF Hutton, a division of Benchmark Investment LLC, the representatives of the several underwriters (each, a “Representative”), at a purchase price of $10.00 per Private Placement Share, generating gross proceeds to the Company of $<span id="xdx_90E_eus-gaap--ProceedsFromIssuanceOfPrivatePlacement_c20211104__20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pp0p0" title="Proceeds from Issuance of private placement">5,455,000</span>. The Private Placement Shares are identical to the public shares, except that the holders have agreed not to transfer, assign or sell any of the Private Placement Shares (except to certain permitted transferees) until 30 days after the completion of the Company’s initial Business Combination.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Transaction costs for the IPO amounted to $<span id="xdx_904_eus-gaap--PaymentsOfStockIssuanceCosts_pp0p0_c20211104__20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zdL1427SpIp6">5,822,268</span>, consisting of $<span id="xdx_90C_eus-gaap--PaymentsOfStockIssuanceCosts_pp0p0_c20211104__20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__us-gaap--TransactionTypeAxis__custom--UnderwritingFeesMember_zt34I163ncDk">5,376,250</span> of underwriting fees (including $3,421,250 of deferred underwriting fees) and $<span id="xdx_901_eus-gaap--PaymentsOfStockIssuanceCosts_pp0p0_c20211104__20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__us-gaap--TransactionTypeAxis__custom--OtherOfferingCostsMember_zI8gPEQnFbad">446,018</span> of other offering costs.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company also issued <span id="xdx_90C_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20211104__20211105__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__srt--CounterpartyNameAxis__custom--RepresentativeSharesMember_zJu7DY8YyVk1" title="Number of Shares issued to Representatives as Compensation">120,000</span> shares of Class A Common Stock (the “Representative Shares”) to the Representatives as part of their underwriting compensation. The Representative Shares are identical to the public shares except that the Representatives have agreed not to transfer, assign or sell any such Representative Shares until the completion of the Company’s initial Business Combination. The Representative Shares are deemed compensation by FINRA and are therefore subject to a lock-up for a period of 180 days immediately following the date of the commencement of sales in the IPO pursuant to FINRA Rule 5110(e)(1). In addition, the Representatives have agreed (i) to waive their redemption rights with respect to such shares in connection with the completion of the Company’s initial Business Combination and (ii) to waive their rights to liquidating distributions from the Trust Account (as defined below) with respect to such shares if the Company fails to complete its initial Business Combination by September 5, 2023 (or up to November 5, 2023, if the Company extends the time to complete a Business Combination).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Following the closing of the IPO and the issuance and the sale of Private Placement Shares on November 5, 2021, $99,705,000 ($10.20 per Public Unit) from the net proceeds of the sale of the Public Units in the IPO and the sale of Private Placement Shares was placed in a trust account (the “Trust Account”) maintained by Wilmington Trust, National Association as a trustee and invested the proceeds in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, with a maturity of 180 days or less, or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a-7 of the Investment Company Act of 1940, as amended (the “Investment Company Act”), as determined by the Company, until the earlier of: (a) the completion of the initial Business Combination, (b) the redemption of any public shares properly submitted in connection with a stockholder vote to amend the Company’s amended and restated certificate of incorporation (i) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Company’s public shares if it does not complete the initial Business Combination by September 5, 2023 (or up to November 5, 2023, if the Company extends the time to complete a Business Combination) or (ii) with respect to any other provision relating to stockholders’ rights or pre-initial Business Combination activity and (c) the redemption of the Company’s public shares if it is unable to complete the Business Combination by September 5, 2023 (or up to November 5, 2023, if the Company extends the time to complete a Business Combination), subject to applicable law. The proceeds deposited in the Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims of the Company’s public stockholders.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company’s initial Business Combination must occur with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Account (excluding the deferred underwriting fee and taxes payable and interest previously released for working capital purposes on the income earned on the Trust Account) at the time of the agreement to enter into the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires an interest in the target sufficient for the post-transaction company not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to complete a Business Combination successfully.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The shares of Class A Common Stock subject to redemption were recorded at a redemption value and classified as temporary equity upon the completion of the IPO, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the issued and outstanding shares voted are voted in favor of the Business Combination. The Company will have until September 5, 2023 (or up to November 5, 2023, if the Company extends the time to complete a Business Combination and payment of the extension by the Sponsor, or its affiliates), to complete the initial Business Combination (the “Combination Period”). If the Company is unable to complete the initial Business Combination within the Combination Period, the Company will: (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company for working capital purposes or to pay the Company’s taxes (less up to $50,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and its board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete the Business Combination within the Combination Period. The founders have entered into a letter agreement with the Company, pursuant to which they have agreed (i) to waive their redemption rights with respect to any Founder Shares (defined below), Private Placement Shares, and any public shares held by them in connection with the completion of the initial Business Combination, (ii) waive their redemption rights with respect to their Founder Shares, Private Placement Shares and public shares in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Company’s public shares if the Company does not complete its initial Business Combination by September 5, 2023 (or up to November 5, 2023, if the Company extends the time to complete a Business Combination) and payment of the extension by our Sponsor, or its affiliates), or (B) with respect to any other provision relating to stockholders’ rights or pre-initial Business Combination activity and (iii) to waive their rights to liquidating distributions from the Trust Account with respect to any Founder Shares held by them if the Company fails to complete the initial Business Combination by September 5, 2023 (or up to November 5, 2023, if the Company extends the time to complete a Business Combination and payment of the extension by our Sponsor, or its affiliates), although they will be entitled to liquidating distributions from the Trust Account with respect to any public shares they hold if the Company fails to complete the initial Business Combination within the prescribed time frame. If the Company submits its initial Business Combination to its stockholders for a vote, the Company will complete its initial Business Combination only if a majority of the outstanding shares of common stock voted are voted in favor of the initial Business Combination. In no event will the Company redeem its public shares of Class A Common Stock in an amount that would cause its net tangible assets to be less than $5,000,001. In such case, the Company would not proceed with the redemption of public shares of Class A Common Stock and the related Business Combination, and instead may search for an alternate Business Combination.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or by a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (i) $10.20 per public share or (ii) such lesser amount per public share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the trust assets, in each case net of the interest which may be withdrawn to pay taxes. This liability will not apply with respect to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriters of the IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, then the Company’s Sponsor will not be responsible to the extent of any liability for such third party claims.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Termination of Prior Proposed Business Combination</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 26, 2022, the Company entered into an agreement and plan of merger (the “Merger Agreement”) by and among Sigma Merger Sub Inc., a Delaware corporation and its direct, wholly owned subsidiary (“Sigma Merger Sub”), Gamma Merger Sub Inc., a Delaware corporation and its direct, wholly owned subsidiary (“Gamma Merger Sub”), VCV Power Sigma, Inc., a Delaware corporation (“Sigma”), VCV Power Gamma, Inc., a Delaware corporation (“Gamma,” and, together with Sigma, “VCV Digital Technology”), and Jerry Tang, in his capacity as the representative for stockholders of VCV Digital Technology and for certain limited purposes under Section 5.13 thereunder. Pursuant to the Merger Agreement, among other things, (i) in accordance with the General Corporation Law of the State of Delaware, as amended (the “DGCL”), Sigma Merger Sub would merge with and into Sigma, with Sigma surviving the Sigma Merger as the Company’s wholly owned subsidiary, and (ii) in accordance with the DGCL, Gamma Merger Sub will merge with and into Gamma, with Gamma surviving the Gamma Merger as its wholly owned subsidiary.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 19, 2022, pursuant to Section 11.01(a) of the Merger Agreement, the Company and VCV Digital Technology entered into a termination agreement and mutually agreed to terminate the Merger Agreement and the transaction contemplated thereby was abandoned.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Change of Sponsor</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 22, 2022, Water On Demand, Inc. (“WODI”) entered into a Membership Interest Purchase and Transfer Agreement with Ka Wai Cheung, Koon Lin Chan, and Koon Keung Chan (each a “Seller,” and collectively, the “Sellers”) and the Sponsor, pursuant to which WODI purchased 100 membership interests in the Sponsor from the Sellers, which constitutes 100% of the membership interests in the Sponsor. The Sponsor holds 2,343,750 shares out of 2,443,750 shares of the issued and outstanding shares of Class B Common Stock of the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Non-binding Letter of Intent of the Proposed Business Combination</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On January 5, 2023, the Company filed a press release which announced the signing of a non-binding Letter of Intent with WODI under which the Company proposes to acquire all the outstanding securities of WODI, based on certain material financial and business terms and conditions being met.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Extension Amendment on Business Combination</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On November 4, 2022, an aggregate of $<span id="xdx_90C_eus-gaap--PaymentsToAcquireBusinessesGross_pp0p0_c20221103__20221104__us-gaap--BusinessAcquisitionAxis__custom--WODIMember__us-gaap--TransactionTypeAxis__custom--FirstExtensionMember_zSHIu0lhcvcj" title="Payments to acquire business">977,500</span> (the “First Extension Payment”) was deposited into the Company’s Trust Account for the public stockholders, representing $0.10 per public share, which enabled the Company to extend the period of time it had to consummate its initial Business Combination by three months from November 5, 2022 to February 5, 2023 (the “First Extension”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On February 6, 2023, $<span id="xdx_90E_eus-gaap--PaymentsToAcquireBusinessesGross_pp0p0_c20230205__20230206__us-gaap--BusinessAcquisitionAxis__custom--WODIMember__us-gaap--TransactionTypeAxis__custom--SecondExtensionMember_znvXAHYhouSe" title="Payments to acquire business">977,500</span> (the “Second Extension Payment”) was deposited into the Trust Account, for the public stockholders, representing $0.10 per public share, which enabled the Company to extend the period of time it had to consummate its initial Business Combination by three months from February 5, 2023 to May 5, 2023 (the “Second Extension”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On April 11, 2023, the Company filed with the Secretary of State of the State of Delaware an amendment (the “Extension Amendment”) to the Company’s amended and restated certificate of incorporation to extend the date by which the Company must consummate a Business Combination up to six times, each by an additional month, for an aggregate of six additional months (i.e., from May 5, 2023 to up to November 5, 2023) or such earlier date as determined by the board of directors. The Company’s stockholders approved the Extension Amendment at a special meeting of stockholders of the Company on April 10, 2023.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On May 5, 2023, $<span id="xdx_90A_eus-gaap--PaymentsToAcquireBusinessesGross_pp0p0_c20230504__20230505__us-gaap--BusinessAcquisitionAxis__custom--WODIMember__us-gaap--TransactionTypeAxis__custom--ThirdExtensionMember_z3Ra53wbb428" title="Payments to acquire business">330,064</span>.50 (the “Third Extension Payment”) was deposited into the Trust Account, for the public stockholders, representing $0.0625 per public share, which enabled the Company to extend the period of time it had to consummate its initial Business Combination by one month from May 5, 2023 to June 5, 2023 (the “Third Extension”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif">As a result of the June 2, 2023 special meeting of stockholders of the Company, the Company filed with the Secretary of State of the State of Delaware an amendment to the Company’s amended and restated certificate of incorporation to amend the monthly extension amounts to be paid by the Sponsor (or its affiliates), to extend the period of time for the Company to consummate a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination involving the Company to be made upon the request of the Sponsor, and approval by the Company’s board of directors, from an amended price per unredeemed share of Class A common stock of $0.0625 to the lower of $100,000 or $0.05 per unredeemed share of Class A Common Stock.</span> On June 5, 2023, $<span id="xdx_909_eus-gaap--PaymentsToAcquireBusinessesGross_pp0p0_c20230604__20230605__us-gaap--BusinessAcquisitionAxis__custom--WODIMember__us-gaap--TransactionTypeAxis__custom--FourthExtensionMember_z9N43MRS1M29">100,000 </span>(the “Fourth Extension Payment”) was deposited into the Trust Account, for the public stockholders, representing $0.027 per public share, which enabled the Company to extend the period of time it had to consummate its initial Business Combination by one month from June 5, 2023 to July 5, 2023 (the “Fourth Extension”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On July 5, 2023, $<span id="xdx_90F_eus-gaap--PaymentsToAcquireBusinessesGross_pp0p0_c20230704__20230705__us-gaap--BusinessAcquisitionAxis__custom--WODIMember__us-gaap--TransactionTypeAxis__custom--FifthExtensionMember_zyHns2q69nah" title="Payments to acquire business">100,000</span> (the “Fifth Extension Payment”) was deposited into the Trust Account, for the public stockholders, representing $0.027 per public share, which enabled the Company to extend the period of time it had to consummate its initial Business Combination by one month from July 5, 2023 to August 5, 2023 (the “Fifth Extension”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 4, 2023, $<span id="xdx_90E_eus-gaap--PaymentsToAcquireBusinessesGross_pp0p0_c20230803__20230804__us-gaap--BusinessAcquisitionAxis__custom--WODIMember__us-gaap--TransactionTypeAxis__custom--SixthExtensionMember_zOj1GTlL5aa" title="Payments to acquire business">100,000</span> (the “Sixth Extension Payment”) was deposited into the Trust Account, for the public stockholders, representing $0.027 per public share, which enabled the Company to extend the period of time it has to consummate its initial Business Combination by one month from August 5, 2023 to September 5, 2023 (the “Sixth Extension”).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b>Liquidity and Going Concern</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As of June 30, 2023, the Company had $<span id="xdx_901_eus-gaap--Cash_iI_pp0p0_c20230630_zb7QTLi8gM43" title="Cash">187,204</span> in cash held outside the Trust Account available for the Company’s payment of expenses related to working capital purposes and a working capital deficit of $<span id="xdx_900_ecustom--WorkingCapital_iNI_pp0p0_di_c20230630__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_zX3osuuMjIi3" title="Working Capital">3,869,558</span>. The Company has incurred and expects to continue to incur significant professional costs to remain as a publicly traded company and to incur significant transaction costs in pursuit of the consummation of a Business Combination. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s Accounting Standards Update (ASU) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that these conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plan to address this uncertainty is through the Promissory Notes – related parties and the Working Capital Loans, as defined below (see Note 6). In addition, if the Company is unable to complete a Business Combination within the Combination Period by September 5, 2023 (or up to November 5, 2023, if the Company extends the time to complete a Business Combination), the Company’s board of directors would commence a winding up, dissolution and liquidation pursuant to the terms of the amended and restated certificate of incorporation and thereby a formal dissolution of the Company. There is no assurance that the Company’s plans to consummate a Business Combination will be successful within the Combination Period. As a result, management has determined that such additional condition also raises substantial doubt about the Company’s ability to continue as a going concern. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b>Inflation Reduction Act of 2022</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases (including redemptions) of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its stockholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. Any redemption or other repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any “PIPE” or other equity issuances issued within the same taxable year of a Business Combination and (iv) the content of regulations and other guidance from the Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company’s ability to complete a Business Combination.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">As a result of the <span id="xdx_90A_ecustom--StockRedeemedOrCalledDuringPeriodShare_c20230401__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zG0iLSgI2Ti1" title="Number of shares redeemed">6,160,048</span> shares of Class A common stock redeemed in April 2023 and June 2023, the Company accrued the 1% excise tax in the amount of $<span id="xdx_90A_ecustom--StockRedeemedOrCalledDuringPeriodValues_c20230401__20230630__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zTLmZSez6T5j" title="Number of shares redeemed, value">654,283</span> as a reduction of equity, as the Company is uncertain about the structure of any Business Combination and whether additional shares will be issued within the same taxable year.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2021Q4	frla	Unit Description UnitDescription	one share of Class A common stock, $0.0001 par value per share (“Class A Common Stock”), and one-half of one redeemable warrant (“Warrant”)
CY2023Q2	us-gaap	Cash Cash	187204	usd
	us-gaap	Use Of Estimates UseOfEstimates	<p id="xdx_84C_eus-gaap--UseOfEstimates_zJcav2yyYlGk" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span id="xdx_864_zI2M07XSMrt4">Use of Estimates</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of unaudited condensed financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates. The accompanying unaudited condensed financial statements include all adjustments management considers necessary for a fair presentation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2023Q2	us-gaap	Cash Equivalents At Carrying Value CashEquivalentsAtCarryingValue	0	usd
CY2022Q4	us-gaap	Cash Equivalents At Carrying Value CashEquivalentsAtCarryingValue	0	usd
CY2023Q2	us-gaap	Assets Held In Trust AssetsHeldInTrust	38787501	usd
CY2022Q4	us-gaap	Assets Held In Trust AssetsHeldInTrust	101942526	usd
CY2023Q2	us-gaap	Dividend Income Operating DividendIncomeOperating	759567	usd
CY2022Q2	us-gaap	Dividend Income Operating DividendIncomeOperating	141609	usd
	us-gaap	Dividend Income Operating DividendIncomeOperating	1854942	usd
	us-gaap	Dividend Income Operating DividendIncomeOperating	149746	usd
	us-gaap	Concentration Risk Credit Risk ConcentrationRiskCreditRisk	<p id="xdx_848_eus-gaap--ConcentrationRiskCreditRisk_z3sM2S2YExya" style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b><span id="xdx_867_zIOIrBEjy2dh">Concentration of Credit Risk</span></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b> </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
CY2023Q2	us-gaap	Unrecognized Tax Benefits UnrecognizedTaxBenefits	0	usd
CY2022Q4	us-gaap	Unrecognized Tax Benefits UnrecognizedTaxBenefits	0	usd
CY2023Q2	us-gaap	Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued	0	usd
CY2022Q4	us-gaap	Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued	0	usd
CY2023Q2	us-gaap	Assets Held In Trust Noncurrent AssetsHeldInTrustNoncurrent	38787501	usd
CY2022Q4	us-gaap	Assets Held In Trust Noncurrent AssetsHeldInTrustNoncurrent	101942526	usd
CY2021Q4	us-gaap	Temporary Equity Carrying Amount Attributable To Parent TemporaryEquityCarryingAmountAttributableToParent	99705000	usd
CY2022	us-gaap	Temporary Equity Accretion To Redemption Value TemporaryEquityAccretionToRedemptionValue	1854697	usd
CY2022Q4	us-gaap	Temporary Equity Carrying Amount Attributable To Parent TemporaryEquityCarryingAmountAttributableToParent	101559697	usd
	us-gaap	Temporary Equity Accretion To Redemption Value Adjustment TemporaryEquityAccretionToRedemptionValueAdjustment	-65428262	usd
	us-gaap	Temporary Equity Accretion To Redemption Value TemporaryEquityAccretionToRedemptionValue	2718500	usd
CY2023Q2	us-gaap	Temporary Equity Carrying Amount Attributable To Parent TemporaryEquityCarryingAmountAttributableToParent	38849935	usd
CY2022Q4	us-gaap	Payments To Acquire Investments PaymentsToAcquireInvestments	977500	usd
CY2023Q1	us-gaap	Payments To Acquire Investments PaymentsToAcquireInvestments	977500	usd
CY2023Q2	frla	Related Party Working Capital Loans RelatedPartyWorkingCapitalLoans	3384735	usd
CY2022Q4	frla	Related Party Working Capital Loans RelatedPartyWorkingCapitalLoans	733750	usd
CY2023Q2	us-gaap	Preferred Stock Shares Authorized PreferredStockSharesAuthorized	2000000	shares
CY2023Q2	us-gaap	Preferred Stock Par Or Stated Value Per Share PreferredStockParOrStatedValuePerShare	0.0001
CY2023Q2	us-gaap	Preferred Stock Shares Issued PreferredStockSharesIssued	0	shares
CY2023Q2	us-gaap	Preferred Stock Shares Outstanding PreferredStockSharesOutstanding	0	shares
CY2022Q4	us-gaap	Preferred Stock Shares Issued PreferredStockSharesIssued	0	shares
CY2022Q4	us-gaap	Preferred Stock Shares Outstanding PreferredStockSharesOutstanding	0	shares
CY2023Q2	us-gaap	Common Stock Shares Authorized CommonStockSharesAuthorized	60000000	shares
CY2023Q2	us-gaap	Common Stock Par Or Stated Value Per Share CommonStockParOrStatedValuePerShare	0.0001
CY2021Q1	us-gaap	Common Stock Shares Issued CommonStockSharesIssued	2443750	shares
CY2021Q1	us-gaap	Common Stock Shares Outstanding CommonStockSharesOutstanding	2443750	shares
CY2023Q2	us-gaap	Temporary Equity Shares Issued TemporaryEquitySharesIssued	3614952	shares
CY2022Q4	us-gaap	Temporary Equity Shares Issued TemporaryEquitySharesIssued	9775000	shares
CY2023Q2	us-gaap	Class Of Warrant Or Right Outstanding ClassOfWarrantOrRightOutstanding	4887500	shares
CY2022Q4	us-gaap	Class Of Warrant Or Right Outstanding ClassOfWarrantOrRightOutstanding	4887500	shares
CY2023Q2	us-gaap	Warrants And Rights Outstanding WarrantsAndRightsOutstanding	4400000	usd
CY2023Q2	us-gaap	Current Federal Tax Expense Benefit CurrentFederalTaxExpenseBenefit	225131	usd
CY2022Q2	us-gaap	Current Federal Tax Expense Benefit CurrentFederalTaxExpenseBenefit	0	usd
	us-gaap	Current Federal Tax Expense Benefit CurrentFederalTaxExpenseBenefit	419301	usd
	us-gaap	Current Federal Tax Expense Benefit CurrentFederalTaxExpenseBenefit	0	usd
CY2023Q2	us-gaap	Current State And Local Tax Expense Benefit CurrentStateAndLocalTaxExpenseBenefit	82215	usd
CY2022Q2	us-gaap	Current State And Local Tax Expense Benefit CurrentStateAndLocalTaxExpenseBenefit	0	usd
	us-gaap	Current State And Local Tax Expense Benefit CurrentStateAndLocalTaxExpenseBenefit	136029	usd
	us-gaap	Current State And Local Tax Expense Benefit CurrentStateAndLocalTaxExpenseBenefit	0	usd
CY2023Q2	us-gaap	Deferred Federal Income Tax Expense Benefit DeferredFederalIncomeTaxExpenseBenefit	185097	usd
CY2022Q2	us-gaap	Deferred Federal Income Tax Expense Benefit DeferredFederalIncomeTaxExpenseBenefit	38263	usd
	us-gaap	Deferred Federal Income Tax Expense Benefit DeferredFederalIncomeTaxExpenseBenefit	255999	usd
	us-gaap	Deferred Federal Income Tax Expense Benefit DeferredFederalIncomeTaxExpenseBenefit	95093	usd
CY2023Q2	us-gaap	Deferred State And Local Income Tax Expense Benefit DeferredStateAndLocalIncomeTaxExpenseBenefit	51300	usd
CY2022Q2	us-gaap	Deferred State And Local Income Tax Expense Benefit DeferredStateAndLocalIncomeTaxExpenseBenefit	-0	usd
	us-gaap	Deferred State And Local Income Tax Expense Benefit DeferredStateAndLocalIncomeTaxExpenseBenefit	70950	usd
	us-gaap	Deferred State And Local Income Tax Expense Benefit DeferredStateAndLocalIncomeTaxExpenseBenefit	-0	usd
CY2023Q2	us-gaap	Income Tax Reconciliation Other Reconciling Items IncomeTaxReconciliationOtherReconcilingItems	135707	usd
CY2022Q2	us-gaap	Income Tax Reconciliation Other Reconciling Items IncomeTaxReconciliationOtherReconcilingItems	38263	usd
	us-gaap	Income Tax Reconciliation Other Reconciling Items IncomeTaxReconciliationOtherReconcilingItems	243225	usd
	us-gaap	Income Tax Reconciliation Other Reconciling Items IncomeTaxReconciliationOtherReconcilingItems	95093	usd
CY2023Q2	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	206656	usd
CY2022Q2	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	0	usd
	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	471606	usd
	us-gaap	Income Tax Expense Benefit IncomeTaxExpenseBenefit	0	usd
CY2023Q2	us-gaap	Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate	1.024	pure
CY2022Q2	us-gaap	Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate	0.000	pure
	us-gaap	Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate	0.573	pure
	us-gaap	Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate	0.000	pure
CY2023Q2	us-gaap	Deferred Tax Assets Tax Deferred Expense DeferredTaxAssetsTaxDeferredExpense	485769	usd
CY2022Q4	us-gaap	Deferred Tax Assets Tax Deferred Expense DeferredTaxAssetsTaxDeferredExpense	267889	usd
CY2023Q2	us-gaap	Deferred Tax Liabilities Other DeferredTaxLiabilitiesOther	-0	usd
CY2022Q4	us-gaap	Deferred Tax Liabilities Other DeferredTaxLiabilitiesOther	83724	usd
CY2023Q2	us-gaap	Deferred Tax Assets Gross DeferredTaxAssetsGross	485769	usd
CY2022Q4	us-gaap	Deferred Tax Assets Gross DeferredTaxAssetsGross	184165	usd
CY2023Q2	us-gaap	Deferred Tax Assets Valuation Allowance DeferredTaxAssetsValuationAllowance	485769	usd
CY2022Q4	us-gaap	Deferred Tax Assets Valuation Allowance DeferredTaxAssetsValuationAllowance	267889	usd
CY2023Q2	us-gaap	Deferred Income Tax Liabilities DeferredIncomeTaxLiabilities	-0	usd
CY2022Q4	us-gaap	Deferred Income Tax Liabilities DeferredIncomeTaxLiabilities	83724	usd
CY2023Q2	us-gaap	Operating Loss Carryforwards OperatingLossCarryforwards	1916627	usd
CY2022Q4	us-gaap	Operating Loss Carryforwards OperatingLossCarryforwards	1056970	usd

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$FRLA
Fortune Rise Acquisition Corp Stock $frla

2023 Q3 Form 10-Q Financial Statement

#000168316823005745 Filed on August 14, 2023

Income Statement

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$FRLA Fortune Rise Acquisition Corp Stock $frla

2023 Q3 Form 10-Q Financial Statement

#000168316823005745 Filed on August 14, 2023

Income Statement

Balance Sheet

Cashflow Statement

Facts In Submission

Files In Submission

$FRLA
Fortune Rise Acquisition Corp Stock $frla