Financial Performance - For the three months ended September 30, 2021, the company recorded a net income of $3,013,329, primarily due to a gain on fair value of warrant liability of $3,812,458 [132]. - From inception (February 5, 2021) through September 30, 2021, the company reported a net income of $973,440, which included a gain on fair value of warrant liability of $2,997,875 [133]. - Net cash used in operating activities from inception through September 30, 2021, was $847,941, primarily due to changes in fair value of the warrant liability [134]. - The company incurred expenses of $521,414 related to offering costs and $280,068 for formation and operating costs during the three months ended September 30, 2021 [132]. Cash and Financing - As of September 30, 2021, the company had cash of $2,367,778 held outside the trust account, intended for identifying and evaluating prospective partner businesses [142]. - The company generated gross proceeds of $250,000,000 from the Initial Public Offering of 25,000,000 units at $10.00 per unit [137]. - The underwriters partially exercised the over-allotment option on August 5, 2021, purchasing an additional 3,250,000 units, generating gross proceeds of $32,500,000 [140]. - The company intends to use substantially all funds held in the trust account to complete its initial business combination [143]. - The company may seek additional financing to complete its business combination if necessary, particularly if it targets larger businesses than the net proceeds from the Initial Public Offering can cover [145]. Investment Activities - The company had net cash used in investing activities of $282,500,000, resulting from the deposit of net proceeds from the Initial Public Offering into the trust account [135]. Risk and Valuation - As of September 30, 2021, the company was not subject to any market or interest rate risk [158]. - Issued or modified warrants that meet equity classification criteria are recorded as additional paid-in capital at issuance [157]. - Warrants not meeting equity classification criteria are recorded at their initial fair value on the date of issuance [157]. - Changes in estimated fair value of warrants are recognized as non-cash gains or losses on the statements of operations [157]. - The fair value of Public Warrants was estimated using a binomial/lattice model [157]. - The fair value of Founder Warrants and Private Placement Warrants was estimated using a Black-Scholes Option Pricing Model [157].
Plum Acquisition(PLMJ) - 2021 Q3 - Quarterly Report