Financial Performance - As of March 31, 2023, the company reported a net loss of $17,984 for the three months ended, resulting from operating expenses of $43,943, offset by interest income of $25,959 [114]. - The company incurred net cash used in operating activities of $100,107 for the three months ended March 31, 2023, primarily due to a net loss and changes in operating assets and liabilities [116]. - The company has raised substantial doubt about its ability to continue as a going concern if it cannot complete a Business Combination within the specified period [119]. Initial Public Offering (IPO) - The company completed its IPO on March 28, 2023, raising gross proceeds of $57,500,000 from the sale of 5,750,000 units at $10.00 per unit [115]. - The underwriter received a cash underwriting discount of $1,150,000 and is entitled to a deferred fee of $2,012,500, payable only if a business combination is completed [128]. Cash and Working Capital - The company had cash of $967,356 held outside the Trust Account as of March 31, 2023, with working capital of $520,661 [118]. - The company intends to use substantially all funds held in the Trust Account to complete an initial business combination [120]. - The company has a promissory note from the sponsor totaling $380,340 as of March 31, 2023, with a loan of up to $500,000 for IPO expenses [125]. Business Operations - The company has not commenced any operations and does not expect to generate operating revenues until after completing a Business Combination [112]. - The company has incurred significant professional costs to remain publicly traded and expects to continue incurring transaction costs in pursuit of a Business Combination [118]. Accounting Standards - The Financial Accounting Standards Board (FASB) issued ASU 2020-06 to simplify accounting for certain financial instruments, effective January 1, 2024 [136]. - ASU 2020-06 eliminates the separation of beneficial conversion and cash conversion features from convertible instruments [136]. - The new standard introduces additional disclosures for convertible debt and freestanding instruments indexed to an entity's own equity [136]. - ASU 2020-06 amends diluted earnings per share guidance, requiring the use of the if-converted method for all convertible instruments [136]. - The company is currently assessing the impact of ASU 2020-06 on its financial position, results of operations, or cash flows [136]. - Management does not believe that other recently issued accounting standards will have a material effect on financial statements [137]. Market Risk - As a smaller reporting company, the company is not required to make disclosures about market risk [138].
Oak Woods Acquisition Corp(OAKUU) - 2023 Q1 - Quarterly Report