For the three months ended March 31, 2022, we had a net income of $8,997,219, which consisted of interest earned on investments held in the trust account of $64,109 and change in fair value of derivative warrant liabilities of $10,522,500, offset by operating expenses of $1,589,390.
For the three months ended March 31, 2021, we had a net income of $19,314,054, which consisted of interest earned on investments held in the trust account of $89,062 and change in fair value of derivative warrant liabilities of $19,520,000, offset by operating expenses of $295,008.
Liquidity and Capital Resources
On October 5, 2020, we consummated the initial public offering of 40,000,000 units, at a price of $10.00 per unit, generating gross proceeds of $400,000,000. Simultaneously with the closing of the initial public offering, we consummated the sale of 10,500,000 private placement warrants to the sponsor at a price of $1.00 per private placement warrant generating gross proceeds of $10,500,000.
Following the initial public offering and the sale of the private placement warrants, a total of $400,000,000 was placed in the trust account. We incurred $21,292,016 in transaction costs, including $7,275,000 of underwriting fees (net of expenses reimbursed by the underwriter of $225,000), $13,125,000 of deferred underwriting fees and $892,016 of other offering costs.
For the three months ended March 31, 2022, net cash used in operating activities was $470,703. Net income of $8,997,219 was impacted by the interest earned on investments held in the trust account of $64,109 and change in fair value of derivative warrant liabilities of $10,522,500. Changes in operating assets and liabilities provided $1,118,687 of cash from operating activities.
For the three months ended March 31, 2021, net cash used in operating activities was $155,632. Net income of $19,314,054 was impacted by the interest earned on investments held in the trust account of $89,062 and change in fair value of derivative warrant liabilities of $19,520,000. Changes in operating assets and liabilities provided $139,376 of cash from operating activities.
At March 31, 2022, we had investments held in the trust account of $400,325,206. We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account, which interest shall be net of taxes payable and excluding deferred underwriting commissions, to complete our business combination. We may withdraw interest from the trust account to pay taxes, if any. To the extent that our share capital or debt is used, in whole or in part, as consideration to complete a 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.
At March 31, 2022, we had cash of $556,814 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, structure, negotiate and complete a business combination.
In order to fund working capital deficiencies or finance transaction costs in connection with a business combination, our sponsor or an affiliate of our sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete a business combination, we may repay such loaned amounts out of the proceeds of the trust account released to us. 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 loans may be convertible into warrants, at a price of $1.00 per warrant, at the option of the lender. The warrants would be identical to the private placement warrants.