Business context and reporting period
The supplied filing is for 8i Acquisition 2 Corp., a British Virgin Islands blank-check company—not EUDA Health Holdings Ltd. It covers the quarter and six months ended January 31, 2022, within the company’s fiscal year ending July 31. The company had not begun operations and was seeking a business combination; it reported no operating revenue.
Financial highlights
| Metric | Period or date | Value |
|---|---|---|
| Revenue | Three and six months ended January 31, 2022 | None |
| Net loss | Three months | $224,890 |
| Net loss | Six months | $270,477 |
| Operating costs | Three months / six months | $225,636 / $271,223 |
| Trust-account dividends | Three and six months | $746 |
| Cash | January 31, 2022 | $587,430 |
| Trust-account investments | January 31, 2022 | $86,250,746 |
| Working capital | January 31, 2022 | $305,912, excluding deferred offering costs |
| Total current liabilities | January 31, 2022 | $3,440,766 |
| Shareholders’ deficit | January 31, 2022 | $2,009,023 |
Operating cash use was $112,345 for the six months. Investing cash use was $86.25 million, reflecting the trust deposit; financing cash inflows were $86.95 million, and ending cash was $587,430. The filing reports a $300,000 non-interest-bearing loan from the CEO, payable after a business combination, and $3,018,750 of deferred underwriting commissions payable upon a completed business combination. No long-term debt obligations were reported.
The $224,890 quarterly and $270,477 six-month net losses are not comparable to a revenue-generating operating business. The filing also reports positive income per redeemable share because of accounting allocation and accretion to redemption value; this does not represent operating profitability.
Changes, outlook and risks
- The company completed its IPO on November 24, 2021, selling 8.625 million units for gross proceeds of $86.25 million, and raised another $2.92 million through a private placement. It deposited $86.25 million in the trust account.
- Compared with July 31, 2021, cash rose from zero to $587,430 and trust investments rose from zero to $86.25 million. The filing gives only an inception-period comparison for the prior-year income statement, not a comparable prior-year quarter.
- Management said a business combination must be completed within 12 months of the IPO closing, with possible extensions totaling up to six additional months. Failure to complete one would trigger liquidation and dissolution. Management identified substantial doubt about the company’s ability to continue as a going concern if it does not complete a transaction by the deadline.
- COVID-19 could adversely affect the company’s financial position or search for a target, but the impact was not determinable. Management provided no transaction-specific guidance or forecast.
- Management reported effective disclosure controls and no material change in internal control over financial reporting during the quarter. The filing reported no legal proceedings.
Important facts to verify
- Confirm the intended issuer: the supplied filing identifies 8i Acquisition 2 Corp., not EUDA Health Holdings Ltd.
- Confirm the business-combination deadline: the filing describes a 12-month period from the November 24, 2021 IPO closing, while another section refers to November 23, 2022.
- Reconcile the July 31, 2021 working-capital comparison: the notes show a deficit of $218,797, while MD&A prints $218,797 without a clear negative sign.
- Assess available operating liquidity separately from the trust funds, which generally cannot be released before a business combination or liquidation.
- Review the related-party loan’s conversion option, deferred underwriting fee, potential extensions, and liquidation terms.