Hudson Acquisition I (HUDA) - 2022 Q3 - Quarterly Report

Financial Performance - The net loss for the three months ended September 30, 2022, was $13,478 compared to a loss of $785 for the same period in 2021, indicating a substantial increase in losses [14]. - The net loss for the nine months ended September 30, 2022, totaled $59,695, up from $2,238 in the prior year, reflecting a significant increase in operational expenses [14]. - The accumulated deficit increased to $(80,453) as of September 30, 2022, compared to $(20,758) at the end of 2021 [10]. - The Company reported net losses of $13,478 and $59,695 for the three and nine months ended September 30, 2022, respectively [101]. Assets and Liabilities - As of September 30, 2022, total assets increased to $679,506 from $447,589 as of December 31, 2021, representing a 51.7% increase [10]. - Current liabilities rose significantly to $734,959 from $443,347, marking a 65.7% increase [10]. - As of September 30, 2022, the Company had a working capital deficit of $605,682 and $87,782 in its operating bank account [102]. Capital Raising and Offerings - The proposed public offering aims to raise $60,000,000 through the sale of 6,000,000 units at $10.00 per unit [28]. - The company received gross proceeds of $8,453,000 from the proposed public offering, with $8,283,940 received on October 21, 2022 [29]. - The Company completed its Initial Public Offering (IPO) on October 18, 2022, selling 6,000,000 units at $10.00 per unit, resulting in total gross proceeds of $60,000,000 [89]. - The Sponsor partially consummated a Private Placement by purchasing 238,500 units for gross proceeds of approximately $2,385,000, instead of the full 340,000 units [90]. - The Overallotment Offering closed on October 21, 2022, selling 845,300 units at $10.00 per unit, generating gross proceeds of $8,453,000 [92]. Operational Status - The company has not commenced core operations and will not generate operating revenues until after completing an Initial Business Combination [26]. - Management has expressed substantial doubt about the company's ability to continue as a going concern due to liquidity concerns [61]. - The company has not recognized any unrecognized tax benefits or accrued interest and penalties as of September 30, 2022 [50]. Use of Proceeds - The company intends to use excess working capital for miscellaneous expenses related to identifying potential target businesses and due diligence [32]. - The Company has broad discretion in applying the net proceeds from the IPO, primarily towards consummating a business combination [103]. - If no business combination is completed within 9 months from the closing of the Proposed Public Offering, the proceeds in the trust account will be used to fund the redemption of public shares, with $100,000 reserved for dissolution expenses [38]. Tax and Regulatory Considerations - The company is subject to a 1% excise tax on stock repurchases after December 31, 2022, which will apply to redemptions related to the Initial Business Combination [36]. - The Inflation Reduction Act of 2022 imposes a 1% excise tax on stock repurchases, which may affect the company's ability to complete initial business combinations [124]. - The SEC has proposed rules that may increase costs and time needed for initial business combinations, potentially affecting the company's operations [118]. Financial Controls and Reporting - The company conducted an evaluation of its disclosure controls and procedures as of September 30, 2022, concluding that they were effective [114]. - There were no changes in internal control over financial reporting during Q3 2022 that materially affected the company's internal controls [115]. - The company is currently not aware of any legal proceedings that would materially affect its business or financial condition [117].