Financial Performance - The company has incurred losses since inception and currently has no revenue, relying on the sale of securities and loans from its Sponsor to fund operations[129]. - For the three months ended March 31, 2022, TradeUP reported a net loss of $632,172, primarily due to formation and operating costs[148]. - TradeUP incurred $3,405,312 in transaction costs related to the Initial Public Offering, including $897,797 in underwriting fees[149]. - The company expects to continue incurring significant costs in pursuit of its acquisition plans[130]. Initial Public Offering - TradeUP Global Corporation completed its Initial Public Offering of 4,000,000 Units at $10.00 per Unit, generating gross proceeds of $40,000,000[127]. - The underwriters partially exercised their over-allotment option, generating additional gross proceeds of $4,889,860 from the sale of 488,986 Option Units[128]. - The company is obligated to pay underwriters a deferred fee of $1,571,145 upon completion of the Business Combination[156]. Business Combination - The Business Combination Agreement with SAITECH involves a Merger Consideration valued at $188,000,000, based on a price of $10.00 per share[133]. - The Business Combination is subject to conditions including a minimum cash amount of $17.5 million available at Closing in TradeUP's trust account[137]. - The Sponsor and insiders agreed to vote in favor of the Business Combination and not to redeem any of their shares[141]. - The Business Combination Agreement may be terminated under certain circumstances, including failure to obtain shareholder approval[139]. - The company intends to use substantially all funds in the Trust Account to complete its Business Combination, with remaining proceeds for working capital and growth strategies[150]. Financial Position - As of March 31, 2022, TradeUP had $44,889,860 in the Trust Account and $413,633 in cash held outside the Trust Account for working capital purposes[149]. - TradeUP has no long-term debt or off-balance sheet financing arrangements as of March 31, 2022[155]. - As of March 31, 2022, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity[168]. - TradeUP has not experienced losses on its cash account and believes it is not exposed to significant credit risks[170]. - The fair value of TradeUP's financial assets and liabilities approximates their carrying amounts due to their short-term nature[171]. - As of March 31, 2022, there were no unrecognized tax benefits and no amounts accrued for interest and penalties[175]. - The Cayman Islands is the only major tax jurisdiction for the company[176]. - The company does not expect any significant changes in unrecognized tax benefits over the next twelve months[177]. - There is no taxation imposed on income by the Government of the Cayman Islands from January 26, 2021, through March 31, 2022[178]. - As of March 31, 2022, the company was not subject to any market or interest rate risk[180]. - The net proceeds from the Initial Public Offering have been invested in U.S. government securities with a maturity of 185 days or less[180]. - The company believes there will be no associated material exposure to interest rate risk due to the short-term nature of its investments[180]. Management and Employment - TradeUP entered into employment agreements with SAITECH's CEO and CFO, providing base salaries of $200,000 and annual bonuses of 50% and 25% of the base salary respectively[145]. Impact of COVID-19 - The company has been evaluating the impact of the COVID-19 pandemic on its financial position and operations[131]. Accounting Standards - Management does not anticipate that recently issued accounting standards will materially affect financial statements[179].
SAI.TECH (SAI) - 2022 Q1 - Quarterly Report