We have neither engaged in any operations nor generated any operating revenues to date. Our only activities for the nine months ended September 30, 2022 and for the period from February 5, 2021 (inception) through December 31, 2021 were organizational activities, those necessary to prepare for the Initial Public Offering, described below, and, after our Initial Public Offering, identifying a target company for a business combination. We do not expect to generate any operating revenues until after the completion of our initial business combination. We will generate
non-operating
income in the form of interest and dividend income on cash and investments held after the Initial Public Offering. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.
For the three months ended September 30, 2022, we recorded net income of $542,884, which resulted from a loss on fair value of warrant liability of $(67,741) and interest and dividend income on investments held in the Trust Account in the amount of $1,275,127, partially offset by operating and formation costs of $664,502.
For the three months ended September 30, 2021, we recorded net income of $3,013,329, which resulted from a gain on fair value of the warrant liability of $3,812,458 and interest and dividend income on investments held in the Trust Account in the amount of 2,353, partially offset by expensed offering costs of $521,414 and operating and formation costs of $280,068.
For the nine months ended September 30, 2022, we recorded net income of $6,769,548, which resulted from a gain on fair value of warrant liability of $6,949,642 and interest and dividend income on investments held in the Trust Account in the amount of $1,684,938, partially offset by operating and formation costs of $1,865,032.
For the period from February 5, 2021 (inception) through September 30, 2021, we recorded net income of $973,440, which resulted from a gain on the fair value of warrant liabilities of $2,997,875 and interest and dividend income on investments held in the Trust Account in the amount of $2,353, partially offset by a loss on the sale of warrants of $1,213,542, expensed offering costs of $521,414, and formation and operating costs of $291,832.
Liquidity and Capital Resources
For the nine months ended September 30, 2022, net cash used in operating activities was $1,120,106, which was due to the change in fair value of the warrant liability of $6,949,642 and interest and dividend income on the investments held in the Trust Account of $1,684,938, partially offset by net income of $6,769,548 and changes in working capital of $744,926.
For the period from February 5, 2021 (inception) through September 30, 2021 net cash used in operating activities was $847,941 which resulted from a gain on the fair value of warrant liabilities of $2,997,875, changes in working capital of $567,873, and interest and dividend income on the investments held in the Trust Account of $2,353, partially offset by a loss on the sale of warrants of $1,213,542, our net loss of $973,440, expensed offering costs of $521,414, and the payment of formation costs through issuance of Class B ordinary shares of $11,764.
There were no cash flows from investing activities for the nine months ended September 30, 2022.
For the period from February 5, 2021 (inception) through September 30, 2021, net cash used in investing activities of $282,500,000 was the result of the amount of net proceeds from the Initial Public Offering and the private placement sale of warrants being deposited to the trust account.
There were no cash flows from financing activities for the nine months ended September 30, 2022.
For the period from February 5, 2021 (inception) through September 30, 2021, net cash provided by financing activities was $285,715,719, which was due to proceeds from the initial public offering, net of underwriter’s discount paid less reimbursement of $278,019,000, proceeds from sale of Private Placement Units of $8,650,000 and an advance from an anchor investor of $501,362, offset in part by the payment of offering costs of $775,795, the repayment of a portion of the advance from the anchor investor of $500,681, and the repayment of the promissory note—related party of $178,167.