For the six months ended June 30, 2021, we had net income of $8,221,165, which consists of a change in fair value of warrant liabilities of $9,522,333 and interest income on investments held in the Trust Account of $24,676, offset by formation and operational costs of $351,680 and transaction costs incurred in connection with initial public offering of $974,164.
Liquidity and Capital Resources
On February 23, 2021, we consummated the Initial public offering of 34,500,000 units, which includes the full exercise by the underwriters of their over-allotment option in the amount of 4,500,000 units, at $10.00 per unit, generating gross proceeds of $345,000,000. Simultaneously with the closing of the initial public offering, we consummated the sale of 6,466,666 private placement warrant at a price of $1.50 per private placement warrant in a private placement to the sponsor generating gross proceeds of $9,700,000.
Following the initial public offering, the full exercise of the over-allotment option, and the sale of the private placement warrants, a total of $345,000,000 was placed in the trust account. We incurred $19,571,149 in initial public offering related costs, including $6,900,000 of underwriting fees, net of reimbursement, $12,075,000 of deferred underwriting fees and $596,149 of other offering costs.
For the six months ended June 30, 2022, cash used in operating activities was $990,919. Net income of $6,705,792 was affected by a change in fair value of warrant liabilities of $8,624,000 and interest income on investments held in the trust account of $489,273. Changes in operating assets and liabilities provided $1,416,562 of cash for operating activities.
For the six months ended June 30, 2021, cash used in operating activities was $773,259. Net income of $8,221,165 was affected by transaction costs incurred in connection with initial public offering of $974,164, a change in fair value of warrant liabilities of $9,522,333 and interest income on marketable securities held in the Trust Account of $24,676. Changes in operating assets and liabilities used $421,579 of cash for operating activities.
As of June 30, 2022, we had investments held in the trust account of $345,523,714 (including $523,714 of interest income) consisting of U.S. Treasury securities. We may withdraw interest from the trust account to pay taxes, if any. We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account (less income taxes payable), to complete our business combination. To the extent that our share capital or debt is used, in whole or in part, as consideration to complete our business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.
As of June 30, 2022, we had cash of $242,271. 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.
In order to fund working capital deficiencies or finance transaction costs in connection with a business combination, the Sponsor, or certain of our officers and directors or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete a business combination, we would repay such loaned amounts. In the event that a 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 at a price of $1.50 per warrant, at the option of the lender. The warrants would be identical to the private placement warrants.
The Company will need to raise additional capital through loans or additional investments from its Sponsor, shareholders, officers, directors, or third parties. The Company’s officers, directors and Sponsor may, but are not obligated to, loan the Company funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the Company’s working capital needs. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, suspending the pursuit of a Business Combination. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all.