ShoulderUp Technology Acquisition (US:SUAC)2023-03-20 20:28Financial Performance - The company had a net income of approximately $2.4 million for the year ended December 31, 2022, driven by investment income of about $4.4 million, offset by $0.9 million in general and administrative expenses, $0.2 million in franchise tax expense, and $0.9 million in income tax expense [250]. - The company incurred a net loss of approximately $225,000 from inception (May 20, 2021) through December 31, 2021, primarily due to general and administrative expenses of about $104,000 and franchise tax expense of approximately $124,000 [251]. Capital Structure - The company raised gross proceeds of $300 million from its IPO by issuing 30,000,000 units at $10.00 per unit, with an additional $13.5 million from a private placement of 1,350,000 units [244][245]. - A total of $306 million from the IPO proceeds was placed in the Trust Account, while $1,656,890 was held outside the Trust Account for working capital purposes [254]. - The company has $600,000 in subscription receivable to support liquidity needs prior to completing the initial business combination [253]. Liquidity and Going Concern - As of December 31, 2022, the company reported a working capital deficit of approximately $0.4 million and had $0.4 million in its operating bank account [252]. - There were no amounts outstanding under any Working Capital Loans as of December 31, 2022 [255]. - The company has raised concerns regarding its ability to continue as a going concern due to liquidity issues and the mandatory liquidation requirement if the business combination is not completed [256]. Business Combination - The company intends to extend the deadline for completing its initial business combination by up to an additional 6 months if necessary [248]. Accounting Estimates - The company has identified critical accounting estimates that may affect reported amounts of assets and liabilities, which could differ from actual results [258].