As of June 30, 2022, we had approximately $77,000 in our operating bank account and
an accumulated
deficit of approximately $4.6 million.
Our liquidity needs to date have been satisfied through a payment of $25,000 from our Sponsor to pay for certain offering costs in exchange for the issuance of 1,437,500 shares of common stock (the “Founder Shares”), a loan under of approximately $116,000 under a promissory note from our Sponsor (the “Note”), and the net proceeds from the consummation of the Private Placement not held in the Trust Account. We fully repaid the Note on February 2, 2021. In addition, in order to finance transaction costs in connection with an Initial Business Combination, our officers, directors and initial stockholders may, but are not obligated to, provide us Company Working Capital Loans. As of June 30, 2022, the Company has borrowed approximately $359,000 of principal under a Working Capital Loan. In connection with the Extension Amendment, through June 30, 2022, we have issued three Extension Notes in the principal amount of $167,033 each to our Sponsor. Our Sponsor deposited such funds into the Trust Account upon funding each Extension Note.
On July 29, 2022, the Company consummated the aforementioned Business Combination and closed the related financing agreements. The Company will need substantial additional funding to support its continuing operations and to pursue its long-term development strategy. There is uncertainty regarding the ability to maintain liquidity sufficient to operate the business effectively, which raises substantial doubt as to the ability to continue as a going concern. The Company may seek additional funding through the issuance of the Company’s common stock, other equity or debt financings or collaborations or partnerships with other companies. The amount and timing of the Company’s future funding requirements will depend on many factors, including the pace and results of its clinical development efforts for its product candidates and other research, development, manufacturing, and commercial activities.
During the three months ended June 30, 2022, our entire 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 expect to continue 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, 2022, we had a net loss of approximately $1.7 million, which consisted of approximately $1.8 million in general and administrative expenses, $30,000 of administrative expenses—related party, approximately $17,000 in franchise tax expense, and approximately $7,000 in interest expense, offset by approximately $44,000 of
non-cash
gain of change in fair value of derivative liabilities, and approximately $71,000 in interest income from investments held in the Trust Account.
For the three months ended June 30, 2021, we had a loss of approximately $282,000, which consisted of approximately $113,000 of general and administrative expenses, $30,000 of administrative expenses—related party, approximately $20,000 of franchise tax expense, a
non-operating
loss of approximately $120,000 for changes in fair value of derivative liabilities, partially offset by approximately $2,000 net gain from investments held in the Trust Account.
For the six months ended June 30, 2022, we had a net loss of approximately $4.1 million, which consisted of approximately $4.2 million in general and administrative expenses, $60,000 of administrative expenses—related party, approximately $37,000 in franchise tax expense, and approximately $7,000 of interest expense, offset by approximately $41,000 of
non-cash
gain of change in fair value of derivative liabilities, approximately $73,000 in interest income from investments held in the Trust Account.
For the six months ended June 30, 2021, we had a loss of approximately $452,000, which consisted of approximately $195,000 of general and administrative expenses, $50,000 of administrative expenses—related party, approximately $42,000 of franchise tax expense, a
non-operating
loss of approximately $169,000 for changes in fair value of derivative liabilities, partially offset by approximately $4,000 net gain from investments held in the Trust Account.