Financial Performance - As of March 31, 2023, the Company reported a net income of $2,872,433, with operating expenses of $324,565 and interest income of $3,196,998[101]. - For the three months ended March 31, 2022, the Company incurred a net loss of $87,826, with operating expenses of $109,219 and interest income of $21,393[101]. - As of March 31, 2023, the Company had a working capital surplus of $550,034[106]. IPO and Capital Structure - The Company completed its IPO on February 23, 2022, raising gross proceeds of $250,000,000 from the sale of 25,000,000 units at $10.00 per unit[103]. - The underwriters received a cash underwriting discount of $5,000,000 at the closing of the IPO, with additional deferred fees totaling $10,812,500 contingent on the completion of a Business Combination[117]. - The underwriters are entitled to a deferred fee of $10,812,500, payable only upon completion of a Business Combination[126]. Business Combination and Timeline - The Company has until May 23, 2023, to consummate an initial business combination, with the possibility of extending this period through shareholder vote[107]. - The Company had $302,201,081 in securities held in the Trust Account, designated for a Business Combination or to repurchase Ordinary Shares[106]. Expenses and Costs - The Company incurred $30,000 in administrative services fees for the three months ended March 31, 2023, compared to $10,000 for the same period in 2022[116]. - The Company expects to incur significant costs related to being a public company and pursuing acquisition plans[99]. - The company has no long-term debt or capital lease obligations, only a monthly fee of $10,000 for administrative support services[125]. Accounting and Reporting - The company applies the two-class method for calculating earnings per share, with net income (loss) per share of redeemable shares calculated based on interest income earned on the Trust Account[123]. - Ordinary shares subject to possible redemption are classified as temporary equity, reflecting certain redemption rights outside of the company's control[122]. - The company has adopted recent accounting standards that are not expected to materially affect its financial statements[124]. - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[127]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO[128]. - The company determined that Public Warrants and Private Placement Warrants qualify for equity accounting treatment[121]. - The company has identified critical accounting policies that may lead to material differences between estimated and actual results[120]. Risk Management - As of March 31, 2023, the company was not subject to any market or interest rate risk, with net proceeds from the IPO invested in U.S. government obligations with a maturity of 185 days or less[131]. - The Company has no off-balance sheet arrangements as of March 31, 2023[119].
Powerup Acquisition Corp.(PWUPU) - 2023 Q1 - Quarterly Report