For the six months ended September 30, 2022, we had net income of $2,131,284, which resulted from a gain on the change in fair value of the derivative warrant liability of $2,088,000 and interest income on investments held in the Trust Account in the amount of $1,345,430, partially offset by operating costs of $1,144,229 and a loss on the change in fair value of the Forward Purchase Agreement of $157,917.
For the period from April 20, 2021 (inception) through September 30, 2021, we had net loss of $10,606, which resulted solely from operating and formation costs.
Liquidity and Capital Resources
On December 3, 2021, we consummated the Initial Public Offering of 20,000,000 Units generating gross proceeds of $200,000,000. Simultaneously with the closing of the Initial Public Offering, we completed the private sale of 10,500,000 Private Placement Warrants to our Sponsor at a purchase price of $1.00 per warrant, generating gross proceeds of $10,500,000. On December 3, 2021, the underwriter purchased an additional 3,000,000 Units pursuant to the full exercise of their over-allotment option. The Units were sold at an offering price of $10.00 per Unit, generating additional gross proceeds of $30,000,000. Also, in connection with the exercise of the over-allotment option, our Sponsor purchased an additional 1,200,000 Private Placement Warrants at a purchase price of $1.00 per warrant, generating additional gross proceeds of $1,200,000.
For the six months ended September 30, 2022, net cash used in operating activities was $568,682, which was due to non-cash adjustments to net income related to the change in fair value of the derivative warrant liability of $2,088,000 and interest income on investments held in the Trust Account of $1,345,429, partially offset by net income of $2,131,283 and non-cash adjustment to net income related to the change in fair value of the Forward Purchase Agreement liability of $157,917 and changes in operating assets and liabilities of $575,547.
As of September 30, 2022, we had cash of $425,579 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 an initial Business Combination.
In order to finance transaction costs in connection with our initial Business Combination, our Sponsor or an affiliate of our Sponsor, or certain of our officers and directors may, but are not obligated to, provide us Working Capital Loans as may be required. As of September 30, 2022, there were no amounts outstanding under any Working Capital Loans.
Based on the foregoing, it is possible that the $425,579 in cash held outside the Trust Account on September 30, 2022 might not be sufficient to allow us to operate until the last day of the Combination Period , assuming that an initial Business Combination is not consummated during that time. Until consummation of our initial Business Combination, we will be using these funds for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the initial business combination.
We can raise additional capital through Working Capital Loans from our Sponsor, an affiliate of our Sponsor or certain of our officers and directors, or through loans from third parties. If we are unable to raise additional capital, we may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of our acquisition plan, and reducing overhead expenses. We cannot provide assurance that new financing will be available to us on commercially acceptable terms, if at all. These conditions raise substantial doubt about our ability to continue as a going concern for a reasonable period of time, which is considered through the mandatory liquidation date which is 15 months from the closing of the Initial Public Offering or March 3, 2023, or, if extended in accordance with our Charter, 18 months from the closing of the Initial Public Offering or June 3, 2023.