Financial Performance - As of March 31, 2024, the Company reported a net loss of $2,467,101, with operating expenses of $2,522,678 and interest expense of $183,310, partially offset by interest income of $234,853 [133]. - For the three months ended March 31, 2023, the Company had a net income of $2,872,433, primarily from interest income of $3,196,998 against operating expenses of $324,565 [134]. - The Company incurred $477,791 in net cash used in operating activities for the three months ended March 31, 2024, compared to $182,107 for the same period in 2023 [136]. Trust Account and Business Combination - The Company had $20,136,022 held in the Trust Account as of March 31, 2024, designated for a Business Combination or share repurchase [138]. - The Company intends to use substantially all funds in the Trust Account for the initial Business Combination, with any remaining proceeds used for working capital and growth strategies [137]. - The Company has until February 17, 2025, to complete an initial Business Combination, with the possibility of extending this period through shareholder vote [140]. Debt and Borrowings - The Company is party to a $2,000,000 loan to Visiox Pharmaceuticals as part of the Business Combination Agreement, to be repaid at the date of combination [139]. - As of March 31, 2024, the Company had $419,875 in borrowings under a Loan and Transfer Agreement, with $183,310 recorded as interest expense related to the amortization of the debt discount [148]. - The company has no long-term debt or capital lease obligations, only a monthly fee of $10,000 for administrative services [162]. Administrative and Underwriting Fees - The company incurred $30,000 in administrative service fees for both the three months ended March 31, 2024 and 2023 [151]. - The underwriters received a cash underwriting discount of $5,000,000 at the closing of the IPO, with an additional deferred fee of $10,812,500 [152]. - As of March 31, 2024, the company accrued $268,939 as 'Due to affiliate' for administrative services fees [154]. Accounting and Financial Reporting - The company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment [157]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [165]. - The company applies the two-class method for calculating earnings per share for Class A and Class B ordinary shares [160]. Off-Balance Sheet Arrangements - The company has no off-balance sheet financing arrangements as of March 31, 2024 [155]. - The company does not have any obligations or liabilities related to off-balance sheet arrangements [155]. - The company recorded $10,812,500 to additional paid-in capital due to the waiver of deferred underwriting commissions [153].
Powerup Acquisition Corp.(PWUPU) - 2024 Q1 - Quarterly Report