NKGen Biotech(NKGN) - 2021 Q3 - Quarterly Report

IPO and Fundraising - The company completed its Initial Public Offering (IPO) on May 25, 2021, raising gross proceeds of $150.0 million from the sale of 15,000,000 units at $10.00 per unit[96] - An additional 2,161,500 units were sold through the over-allotment option, generating approximately $21.6 million in gross proceeds[96] - The company has placed $171.6 million of net proceeds from the IPO and private placement into a Trust Account, which will be invested in U.S. government securities[98] Financial Performance - For the three months ended September 30, 2021, the company reported a net income of approximately $4.7 million, primarily due to a non-operating gain of approximately $5.5 million from changes in the fair value of warrant liability[106] - From inception (January 28, 2021) through September 30, 2021, the company had a net income of approximately $349,000, with a non-operating gain of approximately $5.6 million from changes in the fair value of warrant liability[107] - The company incurred approximately $692,000 in general and administrative expenses for the same period[106] Financial Position - As of September 30, 2021, the company had approximately $1.9 million in its operating bank account and working capital of approximately $2.1 million[102] - The company has no long-term debt obligations or capital lease obligations as of September 30, 2021[108] - As of September 30, 2021, the Company did not have any off-balance sheet arrangements[125] Regulatory and Compliance - The company expects to incur increased expenses due to being a public company, including legal and financial reporting costs[105] - The Company adopted ASU 2020-06 on January 28, 2021, using a modified retrospective method for transition, which did not impact its financial position, results of operations, or cash flows[123] - The Company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[126] - The Company is evaluating the benefits of relying on reduced reporting requirements provided by the JOBS Act, which may exempt it from certain disclosures for five years post-IPO[127] - The Company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[128] Contractual Obligations - The company has a contractual obligation to pay $15,000 per month for administrative services until the completion of a business combination[113]