For the three months ended March 31, 2021, we had net income of $3,853,881, which consists of changes in fair value of the warrant liabilities of $4,106,900 and interest earned on marketable securities held in Trust Account of $1,528, offset by operating and formation costs of $168,003 and transaction costs incurred in connection with the IPO of $86,544.
Liquidity and Capital Resources
On February 11, 2021, the Company consummated the IPO of 11,500,000 Units, which includes the full exercise by the underwriters of their over-allotment option in the amount of 1,500,000 Units, at $10.00 per Unit, generating gross proceeds of $115,000,000. Simultaneously with the closing of the IPO, the Company consummated the sale of 4,120,000 Private Placement Warrants, at a price of $1.00 per Private Placement Warrant in a private placement to the Sponsor, generating gross proceeds of $4,120,000.
For the three months ended March 31, 2022, cash used in operating activities was $491,475. Net income of $1,122,187 was affected by the change in fair value of the warrant liabilities of $1,686,400 and interest earned on marketable securities of $10,355. Changes in operating assets and liabilities provided $83,093 of cash for operating activities.
For the three months ended March 31, 2021, cash used in operating activities was $44,168. Net income of $3,853,881 was affected by the change in fair value of the warrant liabilities of $4,106,900, transaction costs incurred in connection with the IPO of $86,544 and interest earned on marketable securities of $1,528. Changes in operating assets and liabilities provided $123,835 of cash for operating activities.
As of March 31, 2022, we had marketable securities held in the Trust Account of $116,170,636 (including $20,636 of interest income) consisting of U.S. Treasury Bills with a maturity of 185 days or less. Interest income on the balance in the Trust Account may be used by us to pay taxes. Through March 31, 2022, we have not withdrawn any interest earned from the Trust Account.
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 capital stock 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 March 31, 2022, we had cash of $232,935 held outside of 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.
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 Working Capital Loans may be convertible into warrants of the post-Business Combination entity at a price of $1.00 per warrant.