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PowerUp Acquisition (PWUP) - 2023 Q3 - Quarterly Report
PWUPPowerUp Acquisition (PWUP)2023-11-07 23:17

Financial Performance - As of September 30, 2023, the company reported a net loss of 69,258,withoperatingexpensesof69,258, with operating expenses of 324,742 and interest income of 255,484[112].−FortheninemonthsendedSeptember30,2023,thecompanyhadanetincomeof255,484[112]. - For the nine months ended September 30, 2023, the company had a net income of 4,614,992, consisting of operating expenses of 937,553andinterestincomeof937,553 and interest income of 5,552,545[112]. - The company incurred 90,000inadministrativeservicesfeesfortheninemonthsendedSeptember30,2023,comparedto90,000 in administrative services fees for the nine months ended September 30, 2023, compared to 70,000 for the same period in 2022[130]. - The company incurred net cash used in operating activities of 496,979fortheninemonthsendedSeptember30,2023[116].TrustAccountandBusinessCombination−Thecompanyhad496,979 for the nine months ended September 30, 2023[116]. Trust Account and Business Combination - The company had 19,640,501 in securities held in the Trust Account for a Business Combination as of September 30, 2023[119]. - The company expects to use substantially all funds in the Trust Account to complete its initial Business Combination[118]. - The company has until May 23, 2024, to consummate an initial Business Combination, with the possibility of extending this period[120]. - The company has not commenced any operations and will not generate operating revenues until after the completion of its initial Business Combination[111]. Capital Structure and Equity - The company generated gross proceeds of 250,000,000fromitsIPOof25,000,000unitsat250,000,000 from its IPO of 25,000,000 units at 10.00 per unit on February 23, 2022[115]. - The underwriters waived their entitlement to deferred underwriting commissions amounting to 10,812,500,whichwasrecordedasadditionalpaid−incapital[132].−AsofSeptember30,2023,thecompanyaccrued10,812,500, which was recorded as additional paid-in capital[132]. - As of September 30, 2023, the company accrued 211,937 as 'Due to affiliate' for administrative services fees, compared to 122,689asofDecember31,2022[133].−Thecompanyaccountsforwarrantsasequity−classifiedinstruments,qualifyingforequityaccountingtreatment[137].−Ordinarysharessubjecttopossibleredemptionareclassifiedastemporaryequityduetocertainredemptionrights[138].−Thecompanyappliesthetwo−classmethodforcalculatingearningspershare,withspecificcalculationsforClassAandClassBshares[139].FinancialPosition−AsofSeptember30,2023,thecompanyhadaworkingcapitaldeficitof122,689 as of December 31, 2022[133]. - The company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment[137]. - Ordinary shares subject to possible redemption are classified as temporary equity due to certain redemption rights[138]. - The company applies the two-class method for calculating earnings per share, with specific calculations for Class A and Class B shares[139]. Financial Position - As of September 30, 2023, the company had a working capital deficit of 62,954[119]. - There are no long-term debts or capital lease obligations, only a monthly fee of $10,000 to an affiliate for administrative support services[141]. - The company has no off-balance sheet arrangements or obligations as of September 30, 2023[134]. Regulatory and Reporting Status - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[142]. - The company is exempt from certain reporting requirements for a period of five years following the IPO completion[143]. - As a smaller reporting company, the company is not required to provide disclosures about market risk[144].