Financial Performance - The company had a net income of approximately $888,000 for the three months ended September 30, 2022, consisting of a non-operating gain of approximately $567,000 from the change in fair value of warrant liability and approximately $905,000 in income from investments held in the Trust Account[117]. - For the nine months ended September 30, 2022, the company reported a net income of approximately $7.6 million, which included approximately $4.9 million in non-operating gain from the change in fair value of warrant liability and approximately $1.1 million in income from investments held in the Trust Account[119]. - The diluted net income (loss) per share is the same as basic net income per share for the three and nine months ended September 30, 2022, indicating no anti-dilutive effect from warrants[134]. Financial Position - As of September 30, 2022, the company had approximately $728,000 in its operating bank account and a working capital deficit of approximately $1.6 million[111]. - The company has no long-term debt obligations or long-term liabilities as of September 30, 2022[121]. - The company has no off-balance sheet arrangements as of September 30, 2022[138]. IPO and Capital Structure - The company generated gross proceeds of $150.0 million from its IPO of 15,000,000 units at $10.00 per unit, incurring offering costs of approximately $8.8 million[106]. - The company placed $171.6 million of net proceeds from the IPO and private placement warrants in a trust account, which will be invested in U.S. government securities until a business combination is completed[108]. - The underwriters were entitled to an underwriting discount of $0.20 per unit, totaling approximately $3.4 million for the IPO and over-allotment[124]. - As of the IPO, 17,161,500 shares of common stock subject to possible redemption were classified as temporary equity at redemption value[130]. - The company recognized accretion from initial book value to redemption amount, resulting in charges against additional paid-in capital and accumulated deficit[132]. Going Concern and Management Doubt - Management has substantial doubt about the company's ability to continue as a going concern if a business combination is not completed by May 25, 2023[113]. Expenses and Compliance - The company expects to incur increased expenses due to being a public company, including legal, financial reporting, accounting, and auditing compliance costs[116]. - The company incurred approximately $45,000 in administrative expenses for the three months ended September 30, 2022, under an agreement for office space and support services[125]. Accounting and Reporting - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards[139]. - The company is evaluating the impact of ASU 2022-03 on its condensed financial statements, effective for fiscal years beginning after December 15, 2023[136]. - The company included Founder Shares in the weighted average number of shares to determine the dilutive impact after the contingency was satisfied[135]. - The company does not believe that any recently issued accounting pronouncements would have a material effect on its condensed financial statements[137]. - The company is in the process of evaluating the benefits of relying on reduced reporting requirements provided by the JOBS Act[140]. - The company does not provide quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company[141].
NKGen Biotech(NKGN) - 2022 Q3 - Quarterly Report