Financial Performance - The company reported a net loss of approximately $47,000 for the three months ended June 30, 2022, with operating expenses of approximately $401,000 and income from investments held in the trust account of approximately $385,000 [131]. - For the six months ended June 30, 2022, the company had a net loss of approximately $473,000, consisting of approximately $854,000 in operating expenses and approximately $412,000 of income from investments held in the trust account [133]. - The diluted net loss per share for the three and six months ended June 30, 2022, is the same as the basic net loss per share, indicating no anti-dilution effect from warrants [146]. IPO and Fundraising - The company completed its IPO on December 14, 2021, raising gross proceeds of $287.5 million from the sale of 28,750,000 units, including over-allotment units [120]. - Approximately $290.4 million of the net proceeds from the IPO and private placement were placed in a trust account, invested in U.S. government securities [122]. - The company incurred approximately $20.7 million in offering costs related to the IPO, including approximately $10.1 million for deferred underwriting fees [120]. Business Operations and Strategy - The company has broad discretion in applying the net proceeds from the IPO and private placement, primarily intended for consummating an initial Business Combination [123]. - The company has until June 14, 2023, to complete its initial Business Combination, with the possibility of extending this period by up to 24 months [124]. - The company has not generated any operating revenues since inception and will not do so until the completion of its initial Business Combination [130]. Liquidity and Financial Health - As of June 30, 2022, the company had no amounts outstanding under any working capital loans, indicating a focus on maintaining liquidity [125]. - The company has identified significant risks related to its ability to continue as a going concern, with substantial doubt raised about its liquidity needs [126]. - As of June 30, 2022, the company did not have any off-balance sheet arrangements, ensuring transparency in financial reporting [149]. 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, which may affect comparability with other public companies [150]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which could exempt it from certain disclosures for five years post-IPO [151]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures [152].
Power & Digital Infrastructure Acquisition II (XPDB) - 2022 Q2 - Quarterly Report