Financial Performance - As of September 30, 2024, the Company reported a net loss of $537,019 for the three months ended, compared to a net loss of $69,258 for the same period in 2023, reflecting an increase in operating expenses from $324,742 to $630,772[138]. - For the nine months ended September 30, 2024, the Company had a net loss of $3,606,378, which included operating expenses of $3,654,462, compared to a net income of $4,614,992 for the same period in 2023[139]. - The Company incurred net cash used in operating activities of $2,826,804 for the nine months ended September 30, 2024, compared to $496,979 for the same period in 2023[142]. - The Company recognized a $2,000,000 subscription agreement expense as part of the Visiox Merger Agreement during the nine months ended September 30, 2024[139]. - The Company incurred $30,000 and $90,000 in administrative service fees for the three and nine months ended September 30, 2024, respectively[158]. Capital Structure - The Company raised gross proceeds of $250,000,000 from its IPO on February 23, 2022, and an additional $37,500,000 from the underwriter's overallotment option[141]. - The Company had $6,601,357 held in the Trust Account as of September 30, 2024, designated for a Business Combination or to repurchase Ordinary Shares[144]. - As of September 30, 2024, the Company had a working capital deficit of $6,511,072[144]. - The Company has outstanding Working Capital Loans of $449,214 as of September 30, 2024, which may be convertible into warrants of the post-Business Combination entity[152]. - The First Subscription Agreement resulted in a total contribution of $1,000,000 from investors[156]. - The Second Subscription Agreement led to an additional contribution of $500,000, which was loaned to the Company[157]. - The underwriters waived their entitlement to deferred underwriting commissions of $10,812,500, which was recorded to additional paid-in capital[159]. - As of September 30, 2024, $328,939 was accrued as 'Due to affiliate' for administrative service fees[160]. Debt and Financing - The Company entered into a Loan and Transfer Agreement, with total borrowings of $199,214 as of September 30, 2024, compared to $0 on December 31, 2023[155]. - The Company recorded interest expenses of $8,496 and $170,071 for the three and nine months ended September 30, 2024, respectively, related to the amortization of the debt discount[155]. - The Company has no off-balance sheet financing arrangements as of September 30, 2024[161]. Business Operations - The Company has not commenced any operations and will not generate operating revenues until after the completion of its initial Business Combination[137]. - The Company has until February 17, 2025, to consummate an initial Business Combination, with the possibility of extending this period through a shareholder vote[145]. Accounting and Compliance - The Company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment[163]. - The Company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[171].
Powerup Acquisition Corp.(PWUPU) - 2024 Q3 - Quarterly Report