Financial Performance - As of June 30, 2023, the company reported a net income of $557,084, driven by interest income of $9,429 from the operating account and $674,328 from the trust account, with operating expenses totaling $177,973[128]. - For the six months ended June 30, 2023, the company had a net cash used in operating activities of $291,151, despite a net income of $539,100[132]. - As of June 30, 2023, the company had cash of $395,972 held outside the Trust Account, with working capital reported at $403,417[133][134]. IPO and Capital Raising - 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, including an over-allotment option[131]. Business Combination and Agreements - The company has entered into a Merger Agreement with Huajin (China) Holdings Limited, with the intention of completing a business combination[124]. - The company expects to incur significant professional costs to remain publicly traded and to finance transaction costs related to the business combination[134]. - The company has determined that there is substantial doubt about its ability to continue as a going concern if it cannot complete a business combination within the specified period[136]. Expenses and Liabilities - The company incurred administrative service expenses of $30,000 for both the three and six months ended June 30, 2023, which remain unpaid as of the reporting date[143]. - The company has a promissory note with the sponsor for up to $500,000, which was repaid in June 2023, leaving no outstanding promissory notes due to related parties[142]. - The company has no off-balance sheet arrangements as of June 30, 2023, and does not participate in transactions that create relationships with unconsolidated entities[138]. Accounting and Financial Reporting - The Company assesses warrants as either equity-classified or liability-classified based on specific terms and applicable guidance, considering factors such as whether they are freestanding financial instruments and if they could require "net cash settlement"[147]. - For warrants meeting equity classification criteria, they are recorded as equity at issuance; otherwise, they are recorded as liabilities at fair value on the issuance date[148]. - Net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of ordinary shares outstanding, excluding shares subject to forfeiture[149]. - Redeemable ordinary shares are included in the EPS calculation as a single class of common shares, with no adjustment to the numerator due to the fair value redemption feature[150]. - The Company is assessing the impact of ASU 2020-06, effective January 1, 2024, which simplifies accounting for certain financial instruments and introduces new disclosures for convertible debt[151]. - Management does not anticipate that other recently issued accounting standards will materially affect the financial statements[152]. - As a smaller reporting company, the Company is not required to disclose market risk information[153].
Oak Woods Acquisition Corp(OAKUU) - 2023 Q2 - Quarterly Report