Western Acquisition Ventures Corp.(WAVSU) - 2023 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2023, the company reported a net loss of $171,611, compared to a net loss of $590,409 for the same period in 2022[110][111]. - Net cash used in operating activities for the three months ended March 31, 2023, was $393,175, primarily due to the net loss and changes in fair value of derivative liabilities[113]. - The company has not generated any operating revenues to date and does not expect to do so until after the completion of the Business Combination[109]. Cash and Working Capital - As of March 31, 2023, the company had $386,306 in cash held outside of the Trust Account and a working capital deficit of $2,062,980[112]. - The company generated non-operating income in the form of interest income from the proceeds of the IPO placed in the Trust Account[109]. Acquisition Plans - The company has identified an acquisition target and executed a merger agreement with Cycurion, Inc., with the intention of closing the Business Combination by May 31, 2023[104][108]. - The company incurred significant costs in pursuit of acquisition plans and may need additional financing to complete the Business Combination[115]. - The merger agreement may be terminated if the merger is not consummated by May 31, 2023, or if certain proposals fail to receive the requisite vote for approval[108]. Advisory and Fees - The company has engaged A.G.P. as an advisor for the Business Combination, with a fee arrangement of 4.5% of the gross proceeds of the IPO, amounting to $5,175,000[122]. Regulatory and Accounting Standards - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[117]. - The Company adopted ASU 2016-13 on January 1, 2023, which did not have a material impact on its financial statements[128]. - There have been no material changes to the quantitative and qualitative disclosures about market risk since the 2022 Annual Report[130]. Equity and Stock - The Company has 11,500,000 shares of common stock subject to possible redemption classified as temporary equity, presented outside of stockholders' equity on the balance sheet[127].