Business Context and Reporting Period
The supplied filing is Murphy Canyon Acquisition Corp.’s unaudited Form 10-Q for the quarter ended September 30, 2022—not a filing identified in its text as CDT Equity Inc. Murphy Canyon is a blank-check company formed to pursue a business combination. It had not begun operations and reported no operating revenue; its activity was formation, its February 2022 IPO, and searching for a target.
Key Financial Metrics
| Metric | Three months ended September 30, 2022 | Nine months ended September 30, 2022 / September 30 balance |
|---|---|---|
| Operating revenue | None | None |
| Expenses | $246,360 | $789,498 |
| Trust-account interest income | $609,920 | $811,687 |
| Net income (loss) | $206,906 | $(164,169) |
| Cash and working capital | $728,072 cash; $830,352 working capital | |
| Trust-account investments | $135,706,687 | |
| Total liabilities | $4,944,878, including $4,628,750 deferred underwriting commission | |
| Debt | No sponsor note or working-capital loans outstanding |
Net cash used in operating activities for the nine months was $929,015; investing activities used $134,895,000, chiefly for the trust deposit; financing activities provided $136,503,532. No margin measure is meaningful because the company had no operating revenue.
Changes Versus the Prior Comparable Period
The filing does not provide prior-year quarterly or nine-month results for comparison. Versus December 31, 2021, cash rose from $48,555 to $728,072, trust investments went from zero to $135.7 million following the IPO, and total liabilities increased from $192,506 to $4.9 million, primarily reflecting the deferred underwriting fee. The company reported a nine-month loss despite third-quarter income, with trust interest more than offsetting quarterly expenses.
Outlook, Risks, and Unusual Items
- Management said the company must complete a business combination within the applicable combination period, with possible extensions subject to conditions and additional trust deposits. It cautioned that completion is not assured and disclosed substantial doubt about the company’s ability to continue as a going concern for the next 12 months from issuance.
- The 13.225 million public shares are classified as temporary equity and redeemable in specified circumstances. The company reported no completed business combination in the filing; its trust funds are principally reserved for that purpose.
- The filing describes risks from the Inflation Reduction Act’s 1% excise tax on certain stock repurchases after December 31, 2022, which could apply to redemptions, subject to interpretation and exceptions. COVID-19’s potential impact on the company and its target search was described as indeterminable.
- The filing refers to merger and “Conduit” risks to be discussed in a planned Form S-4, but this text does not provide clear transaction terms or a specific completion timetable.
- No off-balance-sheet arrangements or legal proceedings were reported. Management said disclosure controls were effective and reported no material change in internal control over financial reporting during the quarter.
Investor Verification Points
- Confirm the intended issuer: the supplied filing names Murphy Canyon Acquisition Corp., whereas the request metadata names CDT Equity Inc.
- Check subsequent filings for any business-combination agreement, Form S-4, extensions, liquidation deadline, and related redemption terms.
- Verify the amount and permitted use of trust assets, redemption levels, and any potential excise-tax effect.
- Review the going-concern disclosure and available operating cash outside the trust account, including future funding needs.
- Confirm deferred underwriting fees, other transaction costs, and any new sponsor or working-capital loans in later filings.