Merger Agreement - The Company entered into a Merger Agreement with Huajin (China) Holdings Limited, with an agreed valuation of $250 million for the Business Combination [142]. - The Merger Agreement's termination date was extended to September 28, 2024, to allow for the completion of the Business Combination [152]. - On August 11, 2023, the Company entered into a Merger Agreement with Huajin, involving a deposit of $330,969 recorded as "deposit from the target company" on the balance sheet [164]. - The business combination completion window has been extended to September 28, 2024, following a deposit of $575,000 by the Company's Sponsor into the trust account [166]. Financial Performance - As of June 30, 2024, the Company reported a net loss of $191,805 for the three months ended June 30, 2024, resulting from operating expenses of $984,711 [155]. - The Company incurred operating expenses of $1,633,383 for the six months ended June 30, 2024, leading to a net loss of $48,301 [156]. - The Company accrued administrative service expenses of $30,000 for Q2 2024, totaling $60,000 for the first half of 2024, compared to $30,000 for the same period in 2023 [177]. Working Capital and Financing - As of June 30, 2024, the Company had a working capital deficit of $2,585,534, compared to $382,204 as of December 31, 2023 [163]. - The Company has not commenced any operations and does not expect to generate operating revenues until after the Business Combination [143]. - The Company intends to use funds in the Trust Account for the initial business combination and working capital, with potential third-party financing if necessary [169]. - As of June 30, 2024, the Company had promissory notes as extension loans of $575,000 and working capital loans of $597,700 due to related parties [173][176]. Income and Expenses - The Company generated interest income of $793,781 on investments held in the trust account for the same period [155]. - The Company received a deposit of $330,969 from Huajin, which may be used to fund expenses related to the Business Combination [147]. - Asian Legend will receive a cash fee of $100,000 per month for consulting services related to the business combination, with accrued expenses of $900,000 as of June 30, 2024 [180]. - The underwriter received a cash underwriting discount of $1,150,000 and is entitled to a deferred fee of $2,012,500, contingent upon the completion of a business combination [179]. Management Concerns - Management has raised substantial doubt about the Company's ability to continue as a going concern if the business combination is not completed within the specified period [167]. - The Company plans to use funds held outside the Trust Account primarily for identifying and evaluating target businesses [162].
Oak Woods Acquisition Corp(OAKUU) - 2024 Q2 - Quarterly Report