Western Acquisition Ventures(WAVS) - 2023 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2023, the company reported a net loss of $171,611, compared to a net loss of$590,409 for the same period in 2022, indicating a decrease in losses by approximately 71%[122][123] - Net cash used in operating activities for the three months ended March 31, 2023, was $393,175, primarily due to the net loss and changes in fair value of derivative liabilities[125] - The company incurred$403,872 in professional fees and administrative expenses for the three months ended March 31, 2023[122] Liquidity and Financial Position - As of March 31, 2023, the company had $386,306 in cash held outside of the Trust Account and a working capital deficit of$2,062,980, highlighting liquidity challenges[124] - The company has incurred significant costs in pursuit of acquisition plans and may need additional financing to complete its Business Combination or to meet redemption obligations[127] - The merger agreement may be terminated if the merger is not consummated by May 31, 2023, raising concerns about the company's ability to continue as a going concern[120][128] Business Combination and Mergers - The company executed a merger agreement with Cycurion, Inc. on November 21, 2022, with the intention of closing the Business Combination by May 31, 2023[116][120] - The company has engaged A.G.P. as an advisor for the Business Combination, agreeing to pay a fee of 4.5% of the gross proceeds of the IPO, amounting to $5,175,000[134] Revenue Generation - The company generated non-operating income in the form of interest income from the IPO proceeds placed in the Trust Account, but does not expect to generate operating revenues until after the Business Combination[121] - The company has not generated any operating revenues to date and relies on interest income from the Trust Account for non-operating income[121] Accounting and Risk Disclosures - The Company adopted ASU 2016-13 on January 1, 2023, which did not have a material impact on its financial statements[140] - Management does not believe that any recently issued accounting pronouncements would materially affect the Company's unaudited condensed financial statements[141] - There have been no material changes to the quantitative and qualitative disclosures about market risk since the 2022 Annual Report[142]