Results of Operations
Our entire activity since inception was in preparation for our initial public offering, and since such offering, our activity has been limited to the search for a prospective initial business combination, and we will not be generating any operating revenues until the closing and completion of our initial business combination. We have neither engaged in any operations nor generated any revenues to date. We will not generate any operating revenues until after completion of our initial business combination. We will generate non-operating income in the form of interest income on cash and cash equivalents. We expect to incur increased 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 June 30, 2020, we had a net loss of approximately $5,000, which consisted of approximately $272,000 interest income (of which approximately all was for interest earned on restricted cash equivalents held in Trust Account), offset by approximately $229,000 in general and administrative expenses and $50,000 in franchise tax expense.
For the three months ended June 30, 2019, we had net income of approximately $853,000, which consisted of approximately $1.5 million in net gains, dividends and interest income from marketable securities held in Trust Account, offset by approximately $261,000 in general and administrative costs, $50,000 in franchise tax expense, and approximately $298,000 in income tax expense
For the six months ended June 30, 2020, we had net income of approximately $618,000, which consisted of approximately $1.1 million in interest income (of which approximately all was for interest earned on restricted cash equivalents held in Trust Account) and a tax benefit of approximately $50,000, offset by approximately $460,000 in general and administrative costs and $100,000 in franchise tax expense.
For the six months ended June 30, 2019, we had net income of approximately $1.2 million, which consisted of approximately $2.2 million in net gains, dividends and interest income from marketable securities held in Trust Account, offset by approximately $457,000 in general and administrative costs, $100,000 in franchise tax expense, and approximately $436,000 in income tax expense
Going Concern Consideration
As of June 30, 2020, we had approximately $713,000 in our operating bank account held outside of the Trust Account, and approximately $4.2 million of investment income earned on money market funds and marketable securities held in the Trust Account available to pay franchise tax and income tax obligations. We will use the funds available outside of the Trust Account primarily to meet our operating cash flow and working capital needs.
Through June 30, 2020, our liquidity needs have been satisfied through receipt of a $25,000 capital contribution from our sponsor in exchange for the issuance of the founder shares, approximately $153,000 received from our sponsor under Expenses Reimbursement arrangement in 2019, the proceeds from the consummation of the private placement not held in the Trust Account and the loan proceeds under the PPP Note received in June 2020. We fully repaid the loans from our sponsor in 2019. We intend to use substantially all of the funds held in the Trust Account, including any amounts representing investment income earned on the Trust Account (less amounts released to us for taxes payable, expenses relating to the administration of the Trust Account and deferred underwriting commissions) to complete the Initial Business Combination.
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (the “COVID-19 outbreak”). In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve. The impact of the COVID-19 outbreak on our results of operations, financial position and cash flows will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions. These developments and the impact of the COVID-19 outbreak on the financial markets and the overall economy are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, our results of operations, financial position and cash flows may be materially adversely affected.