of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.
Cash Flows
Cash Flows from Operating Activities
We experienced negative cash flows from operating activities for the years ended December 31, 2022 and 2021 in the amounts of $1,734,740 and $38,114, respectively. The net cash used in operating activities for the year ended December 31, 2022 was primarily a result of cash provided by net income of $383,998, adjusted for net non-cash income of $2,169,702, partially offset by $50,964 of net cash provided in changes in the levels of operating assets and liabilities. The net cash used in operating activities for the period ended December 31, 2021 was primarily a result of cash used to fund a net loss of $211,041, adjusted for net non-cash income of $8,929, partially offset by $181,856 of net cash provided by changes in the levels of operating assets and liabilities.
Cash Flows from Financing Activities
We experienced negative and positive cash flows from financing activities for the years ended December 31, 2022 and 2021 in the amounts of $(85,465) and $176,563,489, respectively. During the year ended December 31, 2022, $257,317 of proceeds were from the Trust Account for franchise tax reimbursement, $14,775 were proceeds from a related party, partially offset by $357,557 of cash used to repay related party and offering costs. During the period ended December 31, 2021, $171,731,200 of proceeds were from the initial public offering sale of Founder Shares and private placement warrants, $45,250 of proceeds from related party, partially offset by $212,961 used for payment of deferred offering costs and related party.
Off-Balance Sheet Financing Arrangements
As of December 31, 2022, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.
Commitments and Contractual Obligations
Other than the below, we do not have any long-term debt obligations, capital lease obligations, operating lease obligations, purchase obligations or long-term liabilities.
Administrative Services Agreement
Subsequent to the closing of the IPO, we will pay the Sponsor $10,000 per month for office space and secretarial and administrative services provided to members of our management team. Upon completion of the initial Business Combination or our liquidation, we will cease paying these monthly fees. During the years ended December 31, 2022 and 2021, we recognized $120,000 and $7,848, respectively, for the administrative support services expense.
Accrued Legal Fees
As of December 31, 2022, there were legal fees of $75,000 included within accrued expenses that were incurred in connection with a potential business combination that become due and payable upon the closing of a business combination.
Registration and Stockholder Rights
The holders of the founder shares, Private Placement Warrants and warrants that may be issued upon conversion of working capital loans (and any shares of common stock issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the working capital loans and upon conversion of the founder shares) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of the IPO requiring us to register such securities for resale (in the case of the founder shares, only after conversion to shares of Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that we register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent our completion of the initial Business Combination and rights to require us to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that no sales of these securities will be effected until after the expiration of the applicable lock-up period, as described herein. We will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting Agreement
The underwriter had a 45-day option from the date of the IPO to purchase up to an additional 2,250,000 Units to cover over-allotments. On December 14, 2021, the underwriter fully exercised its over-allotment option.
48