Denali Capital Acquisition Corp.(DECAU) - 2022 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2022, the company reported a net income of $307,468, consisting of interest earned on investments of $380,429, offset by formation and operating costs of $72,961[96]. - From January 5, 2022, to September 30, 2022, the company had a net income of $265,278, with interest earned on investments totaling $495,261 and formation and operating costs of $229,983[96]. Cash and Securities - As of September 30, 2022, the company had cash of $985,578 and working capital of $1,027,202[106]. - As of September 30, 2022, the company had marketable securities held in the Trust Account amounting to $84,645,261[104]. IPO and Financing - The company raised gross proceeds of $82,500,000 from its IPO by selling 8,250,000 Public Units at $10.00 each[102]. - The company also generated $5,100,000 from the sale of 510,000 Private Placement Units at $10.00 each[102]. - The company incurred total transaction costs of $5,105,315 related to the IPO, including $1,650,000 in underwriting fees[103]. - The company may need to obtain additional financing to complete its Business Combination or to cover redemptions of Public Shares[108]. Business Operations and Plans - The company expects to incur significant costs in pursuing its acquisition plans and does not anticipate generating operating revenues until after completing its initial Business Combination[93][94]. - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions[115]. Shareholder Information - As of September 30, 2022, there are 8,250,000 Class A ordinary shares subject to possible redemption, presented at redemption value as temporary equity[117]. - The Company accounts for 8,250,000 Public Warrants and 510,000 Private Warrants as equity-classified instruments[120]. - Net loss per ordinary share is calculated by dividing net loss by the weighted average number of ordinary shares outstanding, with no dilutive securities as of September 30, 2022[121]. Risk Management - The Company has invested IPO net proceeds in U.S. government securities with a maturity of 185 days or less, minimizing exposure to interest rate risk[124]. - The company has no off-balance sheet financing arrangements as of September 30, 2022[109].