Financial Performance - As of June 30, 2023, the company reported a net income of $557,084 for the three months ended June 30, 2023, primarily from interest income of $683,757[120]. - For the six months ended June 30, 2023, the company reported a net income of $539,100, with total interest income of $709,716[121]. - The company incurred operating expenses of $177,973 for the three months ended June 30, 2023, and $221,916 for the six months ended June 30, 2023[120][121]. - The company has working capital of $403,417 as of June 30, 2023, and expects to incur significant professional costs to remain publicly traded[126]. IPO and Capital Generation - The company generated gross proceeds of $57,500,000 from its IPO of 5,750,000 units sold at $10.00 per unit on March 28, 2023[123]. - The underwriter was paid a cash underwriting discount of $1,150,000 and is entitled to a deferred fee of $2,012,500, contingent upon the completion of a business combination[138]. Business Development - The company entered into a Merger Agreement on August 11, 2023, with Huajin (China) Holdings Limited, marking a significant step towards its first business combination[117]. - The company has no off-balance sheet arrangements as of June 30, 2023, and does not participate in transactions that create relationships with unconsolidated entities[130]. Accounting and Financial Reporting - The Company assesses warrants as either equity-classified or liability-classified based on specific terms and applicable guidance, considering factors such as freestanding financial instruments and potential net cash settlement[142]. - For warrants meeting equity classification criteria, they are recorded as equity at issuance; otherwise, they are recorded as liabilities at fair value on issuance date[143]. - Net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of ordinary shares outstanding, excluding shares subject to forfeiture[144]. - Redeemable ordinary shares are included in the EPS calculation as a single class of common shares, with no adjustment to the numerator due to fair value redemption[145]. - The Company is assessing the impact of ASU 2020-06, effective January 1, 2024, which simplifies accounting for certain financial instruments and introduces new disclosures[146]. - Management believes that no other recently issued accounting standards will materially affect the financial statements[147]. - As a smaller reporting company, the Company is not required to disclose market risk information[148]. Administrative Expenses - The company accrued administrative service expenses of $30,000 for both the three and six months ended June 30, 2023, but did not pay the service fee to the sponsor[136].
Oak Woods Acquisition (OAKU) - 2023 Q2 - Quarterly Report