Business Combination - The company entered into a Merger Agreement with Huajin (China) Holdings Limited, with an agreed valuation of $250 million for the business combination [126]. - At the closing of the business combination, shareholders of Huajin will receive shares of Oak Woods Class A Ordinary Shares based on a conversion ratio determined by subtracting Huajin's "Closing Net Debt" from the agreed valuation [129]. - The Company has engaged Asian Legend International Investment Holding Limited for consulting services related to a Business Combination, with accrued consulting service expenses of $1,800,000 as of March 31, 2025 [164]. - The underwriter received a cash underwriting discount of $1,150,000 and is entitled to a deferred fee of $2,012,500, payable only if a business combination is completed [163]. Financial Performance - As of March 31, 2025, the company reported a net loss of $47,787, primarily due to operating costs and interest income of $498,071 from investments held in the Trust Account [136]. - The company has not generated any operating revenues to date and does not expect to do so until after the completion of the business combination [135]. - The Company accrued administrative service expenses of $30,000 for both the three months ended March 31, 2025 and 2024, with service fee payables of $240,000 and $210,000 respectively [161]. Capital and Funding - The company generated gross proceeds of $57.5 million from its IPO of 5,750,000 units, sold at $10.00 per unit [138]. - The Company may need to raise additional capital through loans or investments to meet working capital needs, raising concerns about its ability to continue as a going concern [147]. - The Company intends to use funds in the Trust Account primarily to complete an initial business combination and for working capital to finance operations of the target business [148]. Working Capital and Obligations - As of March 31, 2025, the company had a working capital deficit of $5,456,472, indicating significant financial obligations [142]. - The company has incurred significant professional costs to remain publicly traded and expects to continue incurring transaction costs related to the business combination [142]. - The Company has promissory notes as extension loans amounting to $1,782,500 as of March 31, 2025, compared to $1,265,000 as of December 31, 2024 [155]. - 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 [160]. Trust Account and Extensions - A total of $1,035,000 was deposited into the Trust Account to extend the time available for the business combination until March 28, 2025 [133]. - The Company has made six deposits totaling $1,035,000 into the Trust Account to extend the deadline for completing a business combination until March 28, 2025 [145]. - As of March 20, 2025, the Company has made four deposits totaling $690,000 into the Trust Account, extending the deadline for the initial business combination until July 28, 2025 [146]. - As of March 31, 2025, the company had cash of $3,186 held outside the Trust Account, intended for evaluating target businesses and due diligence [141]. Shareholder Actions - The Company redeemed 1,492,646 Class A ordinary shares at a price of $11.20 per share, resulting in a total payment of $16,541,342 to redeeming shareholders [145]. Reporting and Compliance - The company is classified as a smaller reporting company and is not required to make disclosures under Item 3 [168].
Oak Woods Acquisition Corp(OAKUU) - 2025 Q1 - Quarterly Report