placement warrants were added to the net proceeds from the initial public offering held in the trust account. If we do not complete an initial business combination by January 12, 2023, the proceeds from the sale of the private placement warrants will be used to fund the redemption of the public shares (subject to the requirements of applicable law) and the private placement warrants will expire worthless.
For the year ended December 31, 2021, net cash used in operating activities was $1,048,019, which was due to a
non-cash
gain on the change in fair value of warrant liabilities of $10,350,006, changes in working capital of $8,879, and interest income on investments held in the trust account of $60,318 offset in part by our net income of $8,634,557 and expensed offering costs added back to net income of $736,627.
For the year ended December 31, 2021, net cash used in investing activities of $278,760,000 was the result of the amount of net proceeds from our initial public offering being deposited to the trust account.
For the year ended December 31, 2021 net cash provided by financing activities of $279,970,523 was comprised of $270,480,000 in proceeds from the issuance of units in our initial public offering net of underwriter’s discount paid, $1,352,400 of reimbursed offering costs, and $8,700,000 in proceeds from the issuance of warrants in a private placement to our sponsor, offset by the payment of $366,877 for offering costs associated with the initial public offering and repayment of the outstanding balance on the promissory note to our sponsor of $195,000.
For the period from August 10, 2020 (inception) through December 31, 2020 net cash used in operating activities of $28,314 was comprised of our net loss of $106,670, which was partially offset by changes in working capital of $78,356.
For the period from August 10, 2020 (inception) through December 31, 2020 net cash provided by financing activities of $47,030 was comprised of proceeds from the issuance of a promissory note - related party of $195,000, and $25,000 from the issuance of Class B common stock to our sponsor offset by offering costs paid of $172,970.
As of December 31, 2021 and December 31, 2020, we had cash of $181,220 and $18,716, respectively, held outside the trust account. We intend to use the funds held outside the trust account primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete a business combination.
The Company granted the underwriters a 45-day option to purchase up to 3,600,000 additional Units to cover over-allotments at the initial public offering price, less the underwriting discounts and commissions. On January 12, 2021 the underwriters exercised the over-allotment option in full and purchased 3,600,000 units at an offering price of $10.00 per unit, generating additional gross proceeds of $36,000,000 to the Company.
The underwriters were paid a cash underwriting fee of $0.20 per unit, or $5,520,000 in the aggregate. In addition, $0.375 per unit, or $10,350,000 in the aggregate will be payable to the underwriters for deferred underwriting commissions. The deferred fee will become payable to the underwriters from the amounts held in the trust account solely in the event that we complete an initial business combination, subject to the terms of the underwriting agreement.
In order to fund working capital deficiencies or finance transaction costs in connection with an intended initial business combination, our sponsor or an affiliate of our sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be required on a
non-interest
basis. If we complete our initial business combination, we would repay such loaned amounts. In the event that our initial business combination does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into warrants of the post business combination entity at a price of $1.00 per warrant at the option of the lender. The warrants would be identical to the private placement warrants. The terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. Prior to the completion of our initial business combination, we do not expect to seek loans from parties other than our sponsor or an affiliate of our sponsor as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.
We anticipate that the cash held outside of the trust account as of December 31, 2021, will be not sufficient to allow us to operate until January 12, 2023 (liquidation date), assuming that an initial business combination is not consummated during that time. We have incurred and expect to continue to incur significant costs in pursuit of our acquisition plans. Management has determined that the business combination period is less than one year from the date of the issuance of the financial statements which these conditions raise substantial doubt about our ability to continue as a going concern for a period of at least one year from the issuance of the issuance date of these financial statements. Management plans to address this uncertainty through an initial business combination as discussed above. There is no assurance that our plans to consummate an initial business combination will be successful or successful by January 12, 2023. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.