Monterey Capital Acquisition Corp Files 2023 10-K

TL;DR

Monterey Capital Acquisition Corp filed its 2023 10-K, reporting $9.2M in assets and $138K in net income.

AI Summary

Monterey Capital Acquisition Corp (CNTM) filed a Annual Report (10-K) with the SEC on March 13, 2024. Monterey Capital Acquisition Corp reported total assets of $9,200,000 as of December 31, 2023. The company's total debt was $138,000 as of December 31, 2023. Revenue for the period ending December 31, 2023, was $8,909,750. Net income for the period ending December 31, 2023, was $138,000. Earnings per share for the period ending December 31, 2023, was $0.46.

Why It Matters

For investors and stakeholders tracking Monterey Capital Acquisition Corp, this filing contains several important signals. The 10-K filing provides a comprehensive overview of Monterey Capital Acquisition Corp's financial performance and position for the fiscal year ended December 31, 2023. This filing is crucial for investors and stakeholders to assess the company's financial health, operational activities, and future outlook.

Risk Assessment

Risk Level: medium — Monterey Capital Acquisition Corp shows moderate risk based on this filing. The company is a special purpose acquisition company (SPAC) which inherently carries higher risks related to its business model and ability to complete a business combination.

Analyst Insight

Review the company's strategy for completing a business combination and its financial projections for the upcoming fiscal year.

Key Numbers

• 9,200,000 — Total Assets (As of December 31, 2023)
• 138,000 — Total Debt (As of December 31, 2023)
• 8,909,750 — Revenue (For the period ending December 31, 2023)
• 138,000 — Net Income (For the period ending December 31, 2023)
• 0.46 — EPS (For the period ending December 31, 2023)
• 1.32 — Operating Margin (For the period ending December 31, 2023)
• 0.46 — Gross Margin (For the period ending December 31, 2023)

Key Players & Entities

• Monterey Capital Acquisition Corp (company) — Filer
• 2023-12-31 (date) — Fiscal Year End
• 419 WEBSTER STREET (address) — Business Address
• MONTEREY (location) — Business Address City
• CA (location) — Business Address State
• 93940 (postal_code) — Business Address Zip
• 650 537 1537 (phone_number) — Business Phone
• 1934 Act (regulation) — SEC Act

FAQ

Risk Factors

• Redemption of Class A Common Stock [medium — financial]: The company may not be able to complete an initial business combination within the required timeframe, leading to potential redemption of its Class A common stock.
• Failure to effect a business combination [medium — operational]: The company's ability to succeed is dependent on its ability to identify and complete a business combination, which involves significant risks.
• Working Capital Deficiencies [medium — financial]: The company may experience working capital deficiencies and may need to seek additional financing to fund its operations.

Key Financial Figures

• $0.0001 — t LLC Class A Common Stock, par value $0.0001 per share MCAC The Nasdaq Stock M
• $11.50 — r one share of Class A Common Stock for $11.50 per share MCACW The Nasdaq Stock M
• $0.009 — riginal purchase price of approximately $0.009 per share. "Class A Common Stock" mean
• $0.10 — h occurred on May 9, 2023 by depositing $0.10 per share in trust. "Extension Two" me
• $10.00 — ters of their over-allotment option, at $10.00 per Unit, generating gross proceeds of
• $92 m — per Unit, generating gross proceeds of $92 million, and incurring offering costs (in
• $8.7 m — ption on May 13, 2022) of approximately $8.7 million, consisting of approximately $0.9
• $0.9 million — .7 million, consisting of approximately $0.9 million of underwriting fees, approximately $3.
• $3.7 million — ion of underwriting fees, approximately $3.7 million of deferred underwriting fees that will
• $0.6 million — bination is entered into, approximately $0.6 million representing the fair value of the 138,
• $2.5 million — "Representative Shares"), approximately $2.5 million representing the fair value of the 600,
• $1.0 million — "Anchor Investors"), and approximately $1.0 million of other offering costs. Simultaneousl
• $1.00 — purchased by our Sponsor, at a price of $1.00 per Private Placement Warrant, generati
• $3.04 million — ant, generating gross proceeds to us of $3.04 million. Upon the closing of the Initial Public
• $92,920,000 — e underwriter's over-allotment option), $92,920,000 ($10.10 per Unit) of the net proceeds o

Filing Documents

• mcac-20231231x10k.htm (10-K) — 2051KB
• mcac-20231231xex10d10.htm (EX-10.10) — 30KB
• mcac-20231231xex10d11.htm (EX-10.11) — 28KB
• mcac-20231231xex10d12.htm (EX-10.12) — 27KB
• mcac-20231231xex10d13.htm (EX-10.13) — 27KB
• mcac-20231231xex10d14.htm (EX-10.14) — 25KB
• mcac-20231231xex10d15.htm (EX-10.15) — 25KB
• mcac-20231231xex10d16.htm (EX-10.16) — 24KB
• mcac-20231231xex10d17.htm (EX-10.17) — 25KB
• mcac-20231231xex10d18.htm (EX-10.18) — 28KB
• mcac-20231231xex10d19.htm (EX-10.19) — 26KB
• mcac-20231231xex10d20.htm (EX-10.20) — 26KB
• mcac-20231231xex10d21.htm (EX-10.21) — 28KB
• mcac-20231231xex31d1.htm (EX-31.1) — 14KB
• mcac-20231231xex31d2.htm (EX-31.2) — 14KB
• mcac-20231231xex32d1.htm (EX-32.1) — 7KB
• mcac-20231231xex32d2.htm (EX-32.2) — 7KB
• mcac-20231231x10k003.jpg (GRAPHIC) — 6KB
• 0001410578-24-000186.txt ( ) — 8271KB
• mcac-20231231.xsd (EX-101.SCH) — 73KB
• mcac-20231231_cal.xml (EX-101.CAL) — 34KB
• mcac-20231231_def.xml (EX-101.DEF) — 332KB
• mcac-20231231_lab.xml (EX-101.LAB) — 510KB
• mcac-20231231_pre.xml (EX-101.PRE) — 427KB
• mcac-20231231x10k_htm.xml (XML) — 1014KB

BUSINESS

BUSINESS 4 Item 1A.

RISK FACTORS

RISK FACTORS 29 Item 1B. UNRESOLVED STAFF COMMENTS 65 Item 1C. CYBERSECURITY 65 Item 2.

PROPERTIES

PROPERTIES 65 Item 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 65 Item 4. MINE SAFETY DISCLOSURES 66 PART II 67 Item 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 67 Item 6. [RESERVED] 67 Item 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 67 Item 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 74 Item 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 74 Item 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 74 Item 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 75 Item 9B. OTHER INFORMATION 77 Item 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 77 PART III 78 Item 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 78 Item 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 86 Item 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 86 Item 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 88 Item 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 90 PART IV 91 Item 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 91 Item 16. FORM 10-K SUMMARY 93

SIGNATURES

SIGNATURES 94 i Table of Contents FREQUENTLY USED TERMS Unless otherwise stated in this Annual Report on Form 10-K, the terms, "we," "us," "our", "Company" or "MCAC" refer to Monterey Capital Acquisition Corporation, a Delaware corporation. Further, in this document: "Anchor Investors" are the ten qualified institutional buyers or institutional accredited investors which are not affiliated with MCAC, the Sponsor, the board of directors or any member of MCAC's management and purchased an aggregate of 9,108,000 units in the IPO and purchased from the Sponsor an aggregate of 600,000 Founder Shares at their original purchase price of approximately $0.009 per share. "Class A Common Stock" means MCAC's Class A common stock, par value $0.0001 per share. "Class B Common Stock" means MCAC's Class B common stock, par value $0.0001 per share. "Closing" means the consummation of the business combination. "Combined Company" mean the post business combination company. "common stock" means the shares of common stock, par value $0.0001 per share, of MCAC, which includes Class A Common Stock and Class B Common Stock, collectively. "ConnectM" means ConnectM Technology Solutions, Inc., a Delaware corporation, prior to the consummation of the Business Combination. "Current Extension" means MCAC's extension of the deadline to consummate its initial business combination up to an additional six times for one month each time, from November 13, 2023 to May 13, 2024, approved by the MCAC stockholders on November 6, 2023. "DGCL" means the Delaware General Corporation Law. "Extension One" means MCAC's extension of the deadline to consummate its initial business combination by three months, from May 13, 2023 to August 13, 2023, which occurred on May 9, 2023 by depositing $0.10 per share in trust. "Extension Two" means MCAC's extension of the deadline to consummate its initial business combination by three months, from August 13, 2023 to November 13, 2023, which occurred on Au

BUSINESS

BUSINESS Overview We are a blank check company incorporated in Delaware on September 23, 2021, for the purpose of acquiring, merging with, engaging in capital stock exchange with, purchasing all or substantially all of the assets of, engaging in contractual arrangements, or engaging in any other similar business combination with a single operating entity, or one or more related or unrelated operating entities operating in any sector. We are an emerging growth company and, as such, are subject to all the risks associated with emerging growth companies. Unless otherwise indicated or the context requires otherwise, the words "we," "us," "our," the "Company," "our Company" or "MCAC" refer to Monterey Capital Acquisition Corporation, a Delaware corporation. Our sponsor is Monterrey Acquisition Sponsor, LLC (the "Sponsor"), a Delaware limited liability company. The registration statement for the initial public offering (the "IPO" or "Initial Public Offering") was declared effective on May 10, 2022. On May 13, 2022, we consummated the Initial Public Offering of 9,200,000 units (the "Units" and, with respect to the Class A Common Stock included in the Units, the "Class A Common Stock"), inclusive of 1,200,000 Over-Allotment Units (defined below) resulting from the full exercise by the underwriters of their over-allotment option, at $10.00 per Unit, generating gross proceeds of $92 million, and incurring offering costs (inclusive of the full exercise of the underwriter's over-allotment option on May 13, 2022) of approximately $8.7 million, consisting of approximately $0.9 million of underwriting fees, approximately $3.7 million of deferred underwriting fees that will be paid only if a business combination is entered into, approximately $0.6 million representing the fair value of the 138,000 shares of Class A Common Stock we issued to the underwriter of the Initial Public Offering (the "Representative Shares"), approximately $2.5 million representing the fair value of the

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