Financial Performance - As of June 30, 2023, the Company reported a net income of $1,811,817 for the three months, consisting of interest income of $2,100,063 and operating expenses of $288,246 [104]. - For the six months ended June 30, 2023, the Company had a net income of $4,684,250, with interest income of $5,297,061 and operating expenses of $612,811 [104]. - The Company incurred $60,000 in administrative services fees for the six months ended June 30, 2023, compared to $40,000 for the same period in 2022 [120]. - As of June 30, 2023, the Company had a working capital surplus of $261,788 [110]. - As of June 30, 2023, the company accrued $182,689 as 'Due to affiliate' for administrative services fees, compared to $122,689 as of December 31, 2022 [123]. Business Combination and Capital - The Company had $20,017,985 in securities held in the Trust Account as of June 30, 2023, designated for a Business Combination [110]. - The Company has until May 23, 2024, to consummate an initial business combination, with a potential extension period if approved by shareholders [111]. - The Company generated gross proceeds of $250,000,000 from its IPO by offering 25,000,000 units at $10.00 per unit [107]. - The underwriters waived their entitlement to deferred underwriting commissions of $10,812,500, which was recorded to additional paid-in capital [122]. - The Company may need to raise additional capital through loans or investments to meet working capital needs [112]. Costs and Expenses - The Company expects to incur significant costs related to being a public company and pursuing acquisition plans [102]. - The company has no long-term debt or capital lease obligations, with a monthly fee of $10,000 payable to an affiliate for administrative support services [130]. Accounting and Reporting - The company applies the two-class method for calculating earnings per share, with net income per share of redeemable shares based on interest income from the Trust Account [128]. - The company has determined that Public Warrants and Private Placement Warrants qualify for equity accounting treatment [126]. - Ordinary shares subject to possible redemption are classified as temporary equity due to certain redemption rights outside the company's control [127]. - Management does not anticipate any material effects from recently issued accounting pronouncements on the company's financial statements [129]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act as an emerging growth company [132]. Risk and Obligations - As of June 30, 2023, the company was not subject to any market or interest rate risk, with IPO proceeds invested in U.S. government obligations and money market funds [133]. - The company has no off-balance sheet arrangements or obligations as of June 30, 2023, and does not engage in transactions that create variable interest entities [124]. - The company began incurring administrative service fees on February 23, 2022, which will continue until the completion of a Business Combination or liquidation [130].
Powerup Acquisition Corp.(PWUPU) - 2023 Q2 - Quarterly Report