Financial Performance - As of December 31, 2023, the company reported a net income of $1,308,097, primarily from interest income of $2,258,904 on investments held in the trust account[586]. - The company generated non-operating income from interest on cash and cash equivalents, with no operating revenues expected until after the business combination[584]. - The company incurred operating expenses of $1,029,342 for the year ended December 31, 2023[586]. - The Company accrued administrative service expenses of $90,000 for the year ended December 31, 2023, but did not pay the service fee to the sponsor[601]. 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[588]. - The Company granted the underwriter a 45-day option to purchase up to 750,000 additional Units at the Initial Public Offering price[601]. Merger Agreement - The company entered into a Merger Agreement on August 11, 2023, with an agreed valuation of $250,000,000 for the business combination with Huajin[577]. - The aggregate consideration payable at the closing of the business combination will be determined by subtracting Huajin's "Closing Net Debt" from the agreed valuation and dividing by $10.00[580]. - A deposit of $330,969 was made by Huajin to the company, which will be used to fund expenses related to the business combination[581]. - The company has filed an 8-K announcing the Merger Agreement and preliminary proxy solicitation statements, extending the minimum time to complete a business combination until June 28, 2024[593]. Financial Obligations and Arrangements - The company has a working capital deficit of $382,204 as of December 31, 2023, and expects to incur significant professional costs to remain publicly traded[591]. - The Company repaid promissory notes to the sponsor in June 2023, and as of December 31, 2023, there are no promissory notes due to related parties[600]. - The underwriter received a cash underwriting discount of $0.20 per Unit, totaling $1,150,000, and is entitled to a deferred fee of $0.35 per Unit, amounting to $2,012,500, contingent upon the completion of a business combination[602]. - Asian Legend International Investment Holding Limited was engaged as a financial advisor, with a cash fee of $100,000 per month starting from October 2023, and the Company accrued consulting service expenses of $300,000[603]. - The Company is obligated to pay the sponsor a monthly fee of $10,000 for administrative services, which may be delayed if funds are insufficient[600]. Internal Controls and Accounting Standards - The Company’s internal control over financial reporting was evaluated as effective as of December 31, 2023[613]. - The Company has not adopted ASU 2020-06 early and does not expect it to have a significant impact on its financial statements[606]. - The Company has not identified any changes in internal control over financial reporting that materially affected its effectiveness during the most recent fiscal quarter[616]. - The Company’s management believes that no recently issued accounting standards will have a material effect on its financial statements[608].
Oak Woods Acquisition Corp(OAKUU) - 2023 Q4 - Annual Report