Part I. Financial Information This section presents the company's unaudited interim financial statements, covering balance sheets, operations, equity changes, cash flows, and detailed accounting notes Item 1. Interim Financial Statements This section presents the unaudited condensed financial statements for New Providence Acquisition Corp. II, including balance sheets, statements of operations, changes in stockholders' deficit, and cash flows, with detailed notes on accounting policies and financial instruments Condensed Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and stockholders' deficit at specific reporting dates | ASSETS (Unaudited) | March 31, 2023 ($) | December 31, 2022 ($) | | :----------------- | :------------- | :---------------- | | Cash | $176,499 | $339,663 | | Prepaid expenses | $242,247 | $285,490 | | Prepaid income taxes | — | $125,826 | | Total Current Assets | $418,746 | $750,979 | | Marketable securities held in Trust Account | $260,471,785 | $257,913,695 | | TOTAL ASSETS | $260,890,531 | $258,664,674 | | LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' DEFICIT (Unaudited) | March 31, 2023 ($) | December 31, 2022 ($) | | :------------------------------------------------------------------------- | :------------- | :---------------- | | Accrued expenses | $473,664 | $614,155 | | Accrued offering costs | $524,918 | $524,918 | | Income taxes payable | $430,482 | — | | Total Current Liabilities | $1,429,064 | $1,139,073 | | Deferred tax liability | $173,842 | $148,862 | | Deferred underwriting payable | $8,750,000 | $8,750,000 | | Total Liabilities | $10,352,906 | $10,037,935 | | STOCKHOLDERS' DEFICIT (Unaudited) | March 31, 2023 ($) | December 31, 2022 ($) | | :-------------------------------- | :------------- | :---------------- | | Class B common stock | $625 | $625 | | Accumulated deficit | $(9,227,330) | $(8,951,464) | | Total Stockholders' Deficit | $(9,226,705) | $(8,950,839) | | TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS' DEFICIT | $260,890,531 | $258,664,674 | Unaudited Condensed Statements of Operations This section outlines the company's financial performance over specific periods, detailing revenues, expenses, and net income or loss | (Unaudited) | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :------------------------------------------------ | :-------------------------------- | :-------------------------------- | | Formation and operating costs | $325,866 | $344,258 | | Loss from operations | $(325,866) | $(344,258) | | Interest earned on marketable securities in Trust Account | $2,719,339 | $64,554 | | Unrealized gain (loss) on marketable securities in Trust Account | $98,701 | $(41,597) | | Other income, net | $2,818,040 | $22,957 | | Income (loss) before provision for income taxes | $2,492,174 | $(321,301) | | Provision for income taxes | $(581,288) | — | | Net income (loss) | $1,910,886 | $(321,301) | | Basic and diluted net income (loss) per share, Class A common stock | $0.06 | $(0.01) | | Basic and diluted net income (loss) per share, Class B common stock | $0.06 | $(0.01) | - The company reported a net income of $1,910,886 for the three months ended March 31, 2023, a significant improvement from a net loss of $321,301 in the same period of 2022. This was primarily driven by a substantial increase in interest earned on marketable securities held in the Trust Account, which rose from $64,554 in Q1 2022 to $2,719,339 in Q1 2023, and an unrealized gain on these securities11108109 Unaudited Condensed Statements of Changes in Stockholders' Deficit This section tracks changes in the company's equity over time, reflecting net income or loss, and other comprehensive income or deficit adjustments | (Unaudited) | Class A Common Stock Shares | Class A Common Stock Amount ($) | Class B Common Stock Shares | Class B Common Stock Amount ($) | Additional Paid-in Capital ($) | Accumulated Deficit ($) | Total Stockholders' Deficit ($) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------ | :-------------------------- | | Balance – January 1, 2023 | — | $— | 6,250,000 | $625 | $— | $(8,951,464) | $(8,950,839) | | Remeasurement of Class A Common Stock to Redemption Value | — | — | — | — | — | $(2,186,752) | $(2,186,752) | | Net income | — | — | — | — | — | $1,910,886 | $1,910,886 | | Balance – March 31, 2023 | — | $— | 6,250,000 | $625 | $— | $(9,227,330) | $(9,226,705) | | (Unaudited) | Class A Common Stock Shares | Class A Common Stock Amount ($) | Class B Common Stock Shares | Class B Common Stock Amount ($) | Additional Paid-in Capital ($) | Accumulated Deficit ($) | Total Stockholders' Deficit ($) | | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :------------------------- | :------------------ | :-------------------------- | | Balance – January 1, 2022 | — | $— | 6,250,000 | $625 | $— | $(8,015,144) | $(8,014,519) | | Net loss | — | — | — | — | — | $(321,301) | $(321,301) | | Balance – March 31, 2022 | — | $— | 6,250,000 | $625 | $— | $(8,336,445) | $(8,335,820) | - The total stockholders' deficit increased from $(8,950,839) at January 1, 2023, to $(9,226,705) at March 31, 2023. This change was primarily due to a remeasurement of Class A Common Stock to redemption value, resulting in a $(2,186,752) impact, partially offset by a net income of $1,910,886 for the period12 Unaudited Condensed Statements of Cash Flows This section details the cash inflows and outflows from operating, investing, and financing activities, providing insight into liquidity | (Unaudited) | Three Months Ended March 31, 2023 ($) | Three Months Ended March 31, 2022 ($) | | :----------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net income (loss) | $1,910,886 | $(321,301) | | Adjustments to reconcile net income (loss) to net cash used in operating activities: | | | | Interest earned on marketable securities held in Trust Account | $(2,719,339) | $(64,554) | | Unrealized (gain) loss on marketable securities held in Trust Account | $(98,701) | $41,597 | | Deferred tax provision | $24,980 | — | | Changes in operating assets and liabilities: | | | | Prepaid expenses | $43,243 | $(28,175) | | Prepaid income taxes | $125,826 | — | | Accrued expenses | $(140,491) | $100,501 | | Other long-term assets | — | $70,596 | | Income taxes payable | $430,482 | — | | Net cash used in operating activities | $(423,114) | $(201,336) | | Cash Flows from Investing Activities: | | | | Cash withdrawn from Trust Account to pay franchise and income taxes | $259,950 | — |
New Providence Acquisition Corp. II(NPABU) - 2023 Q1 - Quarterly Report