For the year ended December 31, 2022, we had net income of $863,201, which consisted of other income of $2,022,080 which was primarily comprised of $1,435,975 of interest income on investments held in the trust account and a gain of $603,284 related to the change in fair value of the overallotment liability, all offset by formation and operating costs of $646,509, a provision for income taxes of $326,554, and franchise taxes of $185,816.
For the period from February 18, 2021 (inception) through December 31, 2021, we had net loss of $1,202, which consisted of formation and operational costs of $801 as well as other expenses of $401.
Liquidity and Capital Resources
As indicated in the accompanying financial statements, at December 31, 2022, the Company had $517,841 of cash and working capital of $615,465 (which includes a pending reimbursement from the trust account for the Company's franchise taxes and income taxes in the aggregate amount of $512,801).
Management has determined that there is a possibility that the Company may be unsuccessful in consummating an initial business combination within 15 months from the closing of the IPO (ending on May 18, 2023), (or up to 21 months ending on November 15, 2023, if the Company extends the period of time to consummate an initial business combination for total payment value of $2,000,000), and thereby be required to cease all operations, redeem the public shares and thereafter liquidate and dissolve. This uncertainty raises substantial doubt about the ability to continue as a going concern for at least one year from the date these financial statements are issued. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management has determined that the Company has funds that are sufficient to fund the working capital needs of the Company until the consummation of an initial business combination or the winding up of the Company as stipulated in the Company’s amended and restated certificate of incorporation. The accompanying financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”), which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.
For the year ended December 31, 2022, cash used in operating activities was $769,932, which was attributable to cash used to fund the net income of $863,201, adjusted for net non-cash income of $2,022,748, which included an adjustment of $1,435,975 related to interest earned on investments held in our trust account, and $389,615 of cash provided by changes in the levels of operating assets and liabilities. For the period from February 18, 2021 (inception) through December 31, 2021, cash used in operating activities was $380, which was attributable to cash used to fund the net loss of $1,202, partially offset by $822 of cash provided by changes in the levels of operating assets and liabilities.
For the year ended December 31, 2022, cash used in investing activities was $102,000,000, which was attributable to the investment of cash in the trust account. For the period from February 18, 2021 (inception) through December 31, 2021, there was no net cash provided by investing activities.
For the year ended December 31, 2022, cash provided by financing activities was $103,286,603, which was primarily attributable to proceeds of $106,000,000 from the IPO and private placement, partially offset by the payment of offering costs of $2,678,397 and the net repayment of a note payable to the Company’s chief financial officer in the amount of $35,000. For the period from February 18, 2021 (inception) through December 31, 2021, there was $1,550 of cash provided by financing activities, which was attributable to $35,000 of proceeds from the issuance of a note payable to a related party and $25,000 of proceeds from the issuance of founder shares to the sponsor, all partially offset by the payment of offering costs of $58,450.
On February 15, 2022, we consummated our initial public offering of 10,000,000 units. Each Unit consists of one share of the Company’s Class A common stock, par value $0.0001 per share, and one-half of one redeemable public warrant of the Company, with each whole public warrant entitling the holder thereof to purchase one whole share of Class A common stock at a price of $11.50 per share, subject to adjustment as provided in our registration statement on Form S-1, initially filed with the SEC on January 6, 2022, as later amended (File No. 333-262042). The Units were sold at a price of $10.00 per unit, generating gross proceeds to the Company of $100,000,000.