Financial Position - As of June 30, 2023, the company had cash of $6,258 and a working capital deficit of $3,337,584[122]. - The company had investments held in the Trust Account of $41,749,295 as of June 30, 2023, primarily in U.S. government securities[136]. - The Company has no long-term debt or off-balance sheet arrangements as of June 30, 2023[144][145]. Income and Expenses - For the three months ended June 30, 2023, the company reported a net income of $622,220, with interest income of $1,449,140 and operating expenses of $535,144[124]. - For the six months ended June 30, 2023, the company had a net income of $669,880, consisting of interest income of $2,805,459 and operating expenses totaling $1,572,932[126]. - Cash used in operating activities for the six months ended June 30, 2023, was $1,574,609, with net income of $669,880 and interest earned of $2,805,459[130]. Merger and Acquisition - The company entered into a Merger Agreement with Honeycomb Battery Company, which includes issuing 70,000,000 shares of common stock as consideration[116][117]. - The Merger Agreement includes potential Earnout Shares of up to 22,500,000 based on the performance of the Combined Company's stock price[118][119]. - The Transactions related to the merger are expected to close in the third quarter of 2023, pending shareholder approval[121]. Funding and Obligations - The company completed its Initial Public Offering on March 15, 2022, raising gross proceeds of $123,500,000 from the sale of 11,000,000 units[128]. - The Company has an outstanding unsecured promissory note with a principal amount of $1,000,000 issued on May 17, 2023, with $1,297,500 outstanding as of June 30, 2023[143]. - The Company is obligated to pay $10,000 per month for administrative support services until the completion of the Initial Business Combination or liquidation[146]. - Upon consummation of the Initial Business Combination, the Company will pay underwriters a cash fee of 3.5% of the gross proceeds of the Public Offering[147]. Stock and Equity - The Company has 11,580,000 warrants exercisable to purchase Class A common stock as of June 30, 2023[150]. - The Company’s Class A common stock features redemption rights classified as temporary equity due to uncertain future events[151]. Risk and Accounting - The company expects to incur significant costs in pursuit of its acquisition plans and has raised concerns about its ability to continue as a going concern[137]. - Fair value measurements are prioritized based on a three-tier hierarchy, with the highest priority given to unadjusted quoted prices in active markets[152]. - The Company evaluates its financial instruments to determine if they qualify as derivatives, with changes in fair value reported in the statements of operations[154]. - Management does not anticipate that recently issued accounting standards will materially affect the Company's balance sheet[155]. - The Company is classified as a smaller reporting company, and market risk disclosures are not applicable[156].
Nubia Brand International (NUBI) - 2023 Q2 - Quarterly Report