Financial Performance - For the three months ended September 30, 2023, the company reported a net income of $515,336, driven by interest income of $4,346 from the operating account and $770,154 from the trust account, offset by operating expenses of $251,764 [122]. - For the nine months ended September 30, 2023, the company achieved a net income of $1,054,436, with interest income of $18,676 from the operating account and $1,465,540 from the trust account, despite incurring operating expenses of $473,680 [123]. - 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 [145]. - Redeemable ordinary shares are included in the EPS calculation denominator, reflecting a single class of common shares without creating a different class or EPS adjustment [146]. Initial Public Offering - The company completed its initial public offering (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 [125]. - The underwriter received a cash underwriting discount of $1,150,000 and is entitled to a deferred fee of $2,012,500, payable only upon completion of a business combination [138]. Operations and Cash Position - As of September 30, 2023, the company had not commenced any operations except for activities related to the prospective merger, with no operating revenues generated to date [118]. - As of September 30, 2023, the company had cash of $527,023 held outside the Trust Account, intended for identifying and evaluating target businesses [127]. - The company had working capital of $148,599 as of September 30, 2023, and expects to incur significant professional costs to remain publicly traded and pursue a business combination [128]. - The company incurred administrative service expenses of $30,000 for both the three and nine months ended September 30, 2023, which remain unpaid as of the reporting date [137]. - The company has no off-balance sheet arrangements as of September 30, 2023, and does not participate in transactions that create relationships with unconsolidated entities [132]. Merger Agreement - The company has entered into a Merger Agreement with Huajin (China) Holdings Limited, with the merger expected to be completed subject to certain conditions [117]. Accounting and Financial Reporting - The Company recognized a measurement adjustment from initial book value to redemption amount value immediately upon the closing of the Initial Public Offering, impacting additional paid-in capital and accumulated deficit [141]. - The assessment of warrants classification considers whether they meet the criteria for equity or liability classification under ASC 480 and ASC 815, requiring professional judgment at issuance and each quarterly period end [143]. - For warrants classified as equity, they are recorded as a component of equity at issuance; those classified as liabilities are recorded at initial fair value and adjusted for changes in estimated fair value [144]. - The Company is assessing the impact of ASU 2020-06, effective January 1, 2024, which simplifies accounting for certain financial instruments and introduces additional disclosures for convertible debt [147]. - Management believes that no other recently issued accounting standards would materially affect the financial statements if adopted [148].
Oak Woods Acquisition Corp(OAKUU) - 2023 Q3 - Quarterly Report