Financial Performance - For the three months ended June 30, 2023, the company reported a net loss of $122,363, compared to a net loss of $35,544 for the same period in 2022, reflecting an increase in operating costs [168]. - For the six months ended June 30, 2023, the company had a net loss of $342,866, down from a net loss of $495,826 in the same period in 2022, indicating a reduction in operating costs [169]. - Cash used in operating activities for the six months ended June 30, 2023, was $183,291, influenced by changes in operating assets and liabilities [174]. Cash and Liquidity - As of June 30, 2023, the company had cash held in the Trust Account amounting to $4,529,551, which is intended to be used for completing a Business Combination [176]. - The company has a working capital deficit of $1,572,423 as of June 30, 2023, raising concerns about its ability to continue as a going concern [180]. - The company may need to raise additional funds to meet liquidity needs or to complete its Business Combination, which could involve issuing additional securities or incurring debt [179]. Business Combination - The company intends to complete a Business Combination before the mandatory liquidation date of August 23, 2023, or obtain an extension [181]. - The company incurred $2,069,154 in transaction costs related to its Initial Public Offering, including $1,610,000 in underwriting fees [173]. - The company generated gross proceeds of $40,000,000 from its Initial Public Offering of 4,000,000 Units at $10.00 per Unit [171]. Equity and Shares - The Company accounts for ordinary shares subject to possible redemption as temporary equity, presented at redemption value outside of shareholders' equity [188]. - Net loss per share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding, excluding shares subject to forfeiture [189]. - Redeemable ordinary shares are included in the EPS calculation without creating a different class of shares, as the redemption feature is at fair value [190]. Financial Instruments - Management evaluates financial instruments, including stock purchase warrants, to determine if they are derivatives, reassessing classification at each reporting period [191]. - Private Placement Warrants are recognized as derivative warrant liabilities at fair value, subject to re-measurement at each balance sheet date until exercised [192]. - The fair value of Private Placement Warrants is estimated using a Binomial simulation model at each measurement date [192]. Regulatory and Reporting - Management does not anticipate that recently issued accounting standards will materially affect financial statements if adopted [193]. - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [194].
Nukkleus(NUKK) - 2023 Q2 - Quarterly Report