Financial Performance - As of June 30, 2023, the Company reported a net income of $1,811,817 for the three months ended June 30, 2023, compared to a net income of $120,693 for the same period in 2022, reflecting a significant increase of 1,400%[113][115] - For the six months ended June 30, 2023, the Company had a net income of $4,684,250, up from $32,868 for the same period in 2022, marking an increase of 14,200%[113][115] - The Company generated interest income of $2,100,063 for the three months ended June 30, 2023, which is a 401% increase compared to the interest income of $418,533 for the same period in 2022[113][115] Capital and Liquidity - The Company raised gross proceeds of $250,000,000 from its IPO on February 23, 2022, and an additional $37,500,000 from the overallotment option exercised by underwriters[117] - As of June 30, 2023, the Company had a working capital surplus of $261,788, indicating a positive liquidity position[120] - The Company had $20,017,985 in securities held in the Trust Account as of June 30, 2023, which are intended for use in a Business Combination[120] Business Operations and Expenses - The Company incurred $30,000 in administrative services fees for the three months ended June 30, 2023, compared to $40,000 for the same period in 2022[131] - The Company expects to incur increased expenses related to being a public company, including legal and compliance costs, as well as due diligence expenses[112] - As of June 30, 2023, the company has accrued $182,689 as 'Due to affiliate' for administrative services fees and residual balance from IPO proceeds[134] Business Combination and Timeline - The Company has until May 23, 2024, to consummate an initial business combination, with the possibility of extending this period through shareholder approval[121] Financial Structure and Accounting - The underwriters waived their entitlement to deferred underwriting commissions of $10,812,500, which was recorded to additional paid-in capital[133] - The company accounts for warrants as equity-classified instruments, qualifying for equity accounting treatment based on specific terms[137] - Ordinary shares subject to possible redemption are classified as temporary equity due to certain redemption rights outside of the company's control[138] - The company applies the two-class method for calculating earnings per share, with net income per share for non-redeemable ordinary shares calculated by dividing net income by the weighted average number of shares[139] - The company has no long-term debt or capital lease obligations, incurring a monthly fee of $10,000 to an affiliate for administrative support services[141] Risk Management - As of June 30, 2023, the company was not subject to any market or interest rate risk, with IPO proceeds invested in short-term U.S. government obligations[144] - The company has no off-balance sheet arrangements or obligations as of June 30, 2023, and does not engage in transactions that create variable interest entities[135]
PowerUp Acquisition (PWUP) - 2023 Q2 - Quarterly Report