WALDWHIGH SIGNALFINANCIAL10-Q

WALDW shows extreme financial volatility with current liabilities spiking 381% while operating losses deepened significantly, though net income swung dramatically positive due to non-operating gains.

The massive increase in current liabilities combined with deteriorating operating performance and declining cash reserves indicates potential liquidity stress for this SPAC. However, the positive net income swing suggests significant fair value gains on warrant liabilities, which can be volatile and may not reflect underlying business health.

Comparing 2022-05-16 vs 2021-11-18View on EDGAR →
FINANCIAL ANALYSIS

WALDW exhibits concerning deterioration in core financial health with current liabilities exploding 381% to $1.8M while cash and current assets declined approximately 27%, creating a liquidity squeeze. Operating losses more than quadrupled to -$4.0M, indicating significant cash burn acceleration, though this was more than offset by non-operating gains that drove net income to +$5.0M. The dramatic swings in both operating performance and warrant-related fair value adjustments, combined with the sharp rise in liabilities, signal high volatility and potential financial stress for this SPAC entity.

FINANCIAL STATEMENT CHANGES
Current Liabilities
Balance Sheet
+381.1%
$368K$1.8M

Current liabilities surged 381.1% — significant near-term obligations; verify ability to meet short-term debt.

Operating Income
P&L
-315.2%
-$964K-$4.0M

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Net Income
P&L
+283.6%
-$2.7M$5.0M

Net income grew 283.6% — bottom-line growth signals improving overall business health.

Operating Cash Flow
Cash Flow
+64.5%
-$1.2M-$415K

Operating cash flow surged 64.5% — exceptional cash generation, highest quality earnings signal.

Cash & Equivalents
Balance Sheet
-27.6%
$1.5M$1.1M

Cash decreased 27.6% — monitor burn rate and upcoming capital needs.

Current Assets
Balance Sheet
-26.7%
$1.7M$1.3M

Current assets declined 26.7% — monitor working capital adequacy and short-term liquidity.

LANGUAGE CHANGES
NEW — 2022-05-16
PRIOR — 2021-11-18
ADDED
7262(b)) by the registered public accounting firm that prepared or issued its audit report.
Financial Statements 1 Condensed Balance Sheets as of March 31, 2022 (Unaudited) and December 31, 2021 1 Unaudited Condensed Statements of Operations for the Three Months Ended March 31, 2022 and March 31, 2021 2 Unaudited Condensed Statements of Changes in Shareholders Deficit for the Three Months Ended March 31, 2022 and March 31, 2021 3 Unaudited Condensed Statements of Cash Flows for the Three Months Ended March 31, 2022 and March 31, 2021 4 Notes to Condensed Financial Statements 5 Item 2.
All activity since January 12, 2021 relates to the Company s formation and the initial public offering (the Initial Public Offering ) and identifying a target or targets for a Business Combination, as described below.
The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering and change in fair value of its warrant and forward purchase agreement liabilities.
Of the total transaction costs, $ 719,201 was reclassified as non-operating expense in the statements of operations with the rest of the offering costs charged to shareholders deficit.
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REMOVED
Financial Statements Condensed Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020 (audited) 1 Condensed Statements of Operations for the three and nine months ended September 30, 2021 (unaudited) 2 Condensed Statements of Changes in Shareholders Deficit for the three and nine months ended September 30, 2021 (unaudited) 3 Condensed Statement of Cash Flows for the nine months ended September 30, 2021 (unaudited) 4 Notes to Unaudited Condensed Financial Statements 5 Item 2.
All activity since January 12, 2021 relates to the Company s formation and the initial public offering (the Initial Public Offering ), as described below.
The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering.
Of the total transaction costs, $ 719,201 was reclassified as non-operating expense in the condensed statement of operations with the rest of the offering costs charged to shareholders equity.
Liquidity As of September 30, 2021, the Company had cash in an operating bank account, outside of the Trust Account, of $335,058 available for working capital needs.
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