Financial Performance - For the period ended March 31, 2022, the company reported a net loss of $460,282, consisting of operating costs of $469,271 and interest income of $3,948 [148]. - The company has not generated any revenues to date and does not expect to do so until after completing its initial Business Combination [147]. - Cash used in operating activities for the period ended March 31, 2022, was $699,248, impacted by changes in operating assets and liabilities [154]. - The company incurred $2,069,154 in transaction costs related to the Initial Public Offering, including $1,610,000 in underwriting fees [153]. - As of March 31, 2022, the company had a working capital deficit of $2,755,392 and only $154,255 in cash held in its operating bank account [161]. Trust Account and IPO - As of March 31, 2022, the company had cash and marketable securities held in the Trust Account amounting to $41,496,970 [156]. - The company completed its Initial Public Offering on June 26, 2020, raising gross proceeds of $40,000,000 from the sale of 4,000,000 Units at $10.00 per Unit [151]. - Following the Initial Public Offering, the total amount placed in the Trust Account was $46,000,000 after the exercise of the over-allotment option [153]. Business Combination and Funding - The company entered into a Merger Agreement with Nukkleus Inc., which would result in former Nukkleus stockholders owning approximately 66% of the post-business combination company [146]. - The company may need to raise additional funds to meet expenditures required for operating its business prior to the initial Business Combination [160]. Equity and Share Calculations - The Company accounts for ordinary shares subject to possible redemption as temporary equity, presented at redemption value outside of shareholders' equity [168]. - Net loss per share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding, excluding shares subject to forfeiture [169]. - Redeemable ordinary shares are included in the EPS calculation without creating a different class of shares, as the redemption feature is at fair value [170]. Financial Instruments and Accounting Standards - Management evaluates financial instruments, including stock purchase warrants, to determine if they are derivatives, reassessing classification at each reporting period [171]. - Private Placement Warrants are recognized as derivative warrant liabilities at fair value, subject to re-measurement at each balance sheet date until exercised [172]. - The fair value of Private Placement Warrants is estimated using a Binomial simulation model at each measurement date [172]. - Management does not anticipate that recently issued accounting standards will materially affect financial statements if adopted [173]. - The Company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [174].
Nukkleus(NUKK) - 2022 Q1 - Quarterly Report