QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-third of one redeemable warrant |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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Item 1. |
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1 |
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2 |
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3 |
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4 |
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5 |
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Item 2. |
18 |
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Item 3. |
21 |
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Item 4. |
21 |
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Item 1. |
23 |
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Item 1A. |
23 |
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Item 2. |
24 |
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Item 3. |
25 |
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Item 4. |
25 |
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Item 5. |
25 |
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Item 6. |
26 |
Item 1. |
Financial Statements. (Unaudited) |
September 30, 2021 |
December 31, 2020 |
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Assets |
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Current Assets |
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Cash on hand |
$ | $ | — | |||||
Deferred offering costs |
— | |||||||
Prepaid expenses |
— | |||||||
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Total current assets |
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Prepaid expenses - Non-current |
— | |||||||
Cash and Investments held in Trust Account |
— | |||||||
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Total assets |
$ | $ | ||||||
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Liabilities and Shareholders’ Equity |
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Current liabilities: |
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Accrued costs and expenses |
$ | $ | ||||||
Due to related party |
— | |||||||
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Total current liabilities |
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Warrant liability |
— | |||||||
Deferred underwriters’ discount |
— | |||||||
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Total liabilities |
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Commitments |
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Ordinary shares subject to possible redemption, |
— | |||||||
Shareholders’ Equity: |
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Preference shares, $ |
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Class A ordinary shares, $ |
— | |||||||
Class B ordinary shares, $ |
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Additional paid-in capital |
— | |||||||
Accumulated deficit |
( |
) | ( |
) | ||||
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Total shareholders’ equity |
( |
) | ||||||
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Total Liabilities and Shareholders’ Equity |
$ | $ | ||||||
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For the three months ended September 30, 2021 |
For the nine months endedSeptember 30, 2021 |
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Formation and operating costs |
$ | $ | ||||||
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Loss from operations |
( |
) | ( |
) | ||||
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Other loss |
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Bank interest income |
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Interest income on marketable securities held in trust |
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Offering cost allocated to warrants |
— | ( |
) | |||||
Excess of Private Placement Warrants fair value over purchase price |
— | ( |
) | |||||
Change in fair value of warrants liability |
( |
) | ( |
) | ||||
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Total other loss |
( |
) | ( |
) | ||||
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Net loss |
$ | ( |
) | $ | ( |
) | ||
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Weighted average ordinary shares subject to possible redemption outstanding, basic and diluted |
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Basic and diluted net loss per ordinary share subject to possible redemption |
$ | ( |
) | $ | ( |
) | ||
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Weighted average non-redeemable ordinary shares outstanding, basic and diluted |
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Basic and diluted net loss per non-redeemable ordinary share |
$ | ( |
) | $ | ( |
) | ||
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Class A Ordinary Shares |
Class B Ordinary Shares |
Additional |
Total |
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Shares |
Amount |
Shares |
Amount |
Paid-in Capital |
Accumulated Deficit |
Shareholders’ Equity (Deficit) |
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Balance as of December 31, |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
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Subsequent remeasurement under ASC 480-10-S99 |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance as of March 31, 2021, as restated |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Net Income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance as of June 30, 2021, as restated |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Net Loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance as of September 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Nine Months Ended September 30, 2021 |
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Cash flows from operating activities: |
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Net loss |
$ | ( |
) | |
Adjustments to reconcile net loss to net cash used in operating activities: |
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Interest earned on cash and Investments held in Trust Account |
( |
) | ||
Offering costs allocated to warrants |
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Excess of Private Placement Warrants fair value over purchase price |
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Change in fair value of warrant liability |
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Changes in current assets and liabilities: |
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Prepaid assets |
( |
) | ||
Accrued costs and expenses |
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Due to related party |
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|
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Net cash used in operating activities |
( |
) | ||
|
|
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Cash Flows from Investing Activities: |
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Investment held in Trust Account |
( |
) | ||
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|
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Net cash used in investing activities |
( |
) | ||
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Cash flows from financing activities: |
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Proceeds from initial public offering, net of underwriters’ discount |
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Proceeds from issuance of Private Placement Warrants |
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Proceeds of Promissory Note - Related Party |
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Payment of Promissory Note - Related Party |
( |
) | ||
Payments of offering costs |
( |
) | ||
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Net cash provided by financing activities |
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Net change in cash |
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Cash, beginning of the period |
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Cash, end of the period |
$ | |||
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Supplemental disclosure of cash flow information: |
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Initial classification of warrant liability |
$ | |||
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Initial classification of Class A ordinary shares subject to possible redemption |
$ | |||
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Deferred underwriting commissions charged to additional paid in capital |
$ | |||
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As Previously Reported |
Adjustment |
As Restated |
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Balance Sheet at March 1 , 2021 |
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Shares Subject to Redemption |
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Class A Ordinary shares |
( |
) |
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Additional Paid in Capital |
( |
) | ||||||||||
Accumulated Deficit |
( |
) | ( |
) | ( |
) | ||||||
Total Shareholders’ Equity |
( |
) | ( |
) | ||||||||
Number of shares subject to redemption |
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Balance Sheet at March 31, 2021 |
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Shares Subject to Redemption |
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Class A Ordinary shares |
( |
) | ||||||||||
Additional Paid in Capital |
( |
) | ||||||||||
(Accumulated Deficit) Retained Earnings |
( |
) | ( |
) | ||||||||
Total Shareholders’ Equity |
( |
) | ( |
) | ||||||||
Number of shares subject to redemption |
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Balance Sheet at June 30, 2021 |
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Shares Subject to Redemption |
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Class A Ordinary shares |
( |
) | ||||||||||
Class B Ordinary shares |
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Additional Paid in Capital |
( |
) | ||||||||||
(Accumulated Deficit) Retained Earnings |
( |
) | ( |
) | ||||||||
Total Shareholders’ Equity |
( |
) | ( |
) | ||||||||
Number of shares subject to redemption |
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Statement of Operations for three months ended March 31, 2021 |
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Basic and diluted weighted average shares outstanding, ordinary shares subject to redemption |
( |
) | ||||||||||
Basic and diluted weighted average shares outstanding, ordinary shares not subject to redemption |
( |
) | ||||||||||
EPS - Redeemable Shares |
$ | $ | $ | |||||||||
EPS - Non-Redeemable Shares |
$ | $ | ( |
) | $ |
Statement of Operations for the three months ended June 30, 2021 |
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Basic and diluted weighted average shares outstanding, ordinary shares subject to redemption |
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Basic and diluted weighted average shares outstanding, ordinary shares not subject to redemption |
( |
) | ||||||||||
EPS - Redeemable Shares |
$ | $ | $ | |||||||||
EPS - Non-Redeemable Shares |
$ | $ | ( |
) | $ | |||||||
Statement of Operations for the six months ended June 30, 2021 |
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Basic and diluted weighted average shares outstanding, ordinary shares subject to redemption |
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Basic and diluted weighted average shares outstanding, ordinary shares not subject to redemption |
( |
) | ||||||||||
EPS - Redeemable Shares |
$ | $ | $ | |||||||||
EPS - Non-Redeemable Shares |
$ | $ | ( |
) | $ | |||||||
Statement of Cash Flows for three months ended March 31, 2021 |
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Initial value of shares subject to possible redemption |
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Change in value of shares subject to possible redemption |
( |
) | ||||||||||
Statement of Cash Flows for six months ended June 30, 2021 |
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Initial value of shares subject to possible redemption |
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Change in value of shares subject to possible redemption |
( |
) | ||||||||||
Statement of Changes In Shareholders’ Equity (Deficit) for the three months ended June 30, 2021 |
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Remeasurement of Class A ordinary shares subject to possible redemption |
|
$ |
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$ |
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$ |
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Statement of Changes in Stockholders’ (Deficit) Equity for the three months ended March 31, 2021 |
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Sale of |
$ | $ | ( |
$ | |
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Sale of |
$ | $ | ( |
$ | ||||||||
Underwriters’ discount |
$ | ( |
$ | $ | ||||||||
Deferred underwriters’ discount |
$ | ( |
$ | $ | ||||||||
Offering costs charged to the shareholders’ equity |
$ | ( |
$ | $ | ||||||||
Non-equity portion of offering costs charged to expense |
$ | $ | ( |
$ | ||||||||
Initial classification of public warrant liability |
$ | ( |
$ | $ | ||||||||
Initial classification of private warrant liability |
$ | ( |
$ | $ | ||||||||
Class A ordinary shares subject to possible redemption |
$ | ( |
$ | $ | ||||||||
Subsequent remeasurement under ASC 480-10-S99 paid-in |
$ | $ | ( |
$ | ( |
For the Three Months Ended September 30, 2021 |
For the Nine Months Ended September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Basic and diluted net loss per stock: |
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Numerator: |
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Allocation of net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
Denominator: |
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Weighted-average shares outstanding |
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Basic and diluted net loss per share |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) |
Level 1 — | Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. | |
Level 2 — | Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means. | |
Level 3 — | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
September 30, 2021 |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Liabilities: |
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Warrant Liability – Public Warrants |
$ | $ | $ | $ | ||||||||||||
Warrant Liability – Private Warrants |
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$ | $ | $ | $ | |||||||||||||
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Gross proceeds from IPO |
$ | |||
Less: |
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Proceeds allocated to Public Warrants |
( |
) | ||
Ordinary share issuance costs |
( |
) | ||
Plus: |
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Accretion of carrying value to redemption value |
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Contingently redeemable ordinary share |
$ | |||
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and |
• | if, and only if, the last reported sale price of the Class A ordinary shares for any 20 trading days within a 30-trading day period ending on and including the third business days prior to the date the Company sends to the notice of redemption to the warrant holders (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant). |
• | in whole and not in part; |
• | for cash at a price of $ |
• | if, and only if, the Reference Value equals or exceeds $10.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described below). |
September 30, 2021 |
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Exercise price |
$ | |||
Share price |
$ | |||
Volatility |
% | |||
Expected life of the options to convert |
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Risk-free rate |
% | |||
Dividend yield |
% |
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. |
Controls and Procedures. |
Item 1. |
Legal Proceedings. |
Item 1A. |
Risk Factors. |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds. |
ITEM 3. |
Defaults Upon Senior Securities. |
ITEM 4. |
Mine Safety Disclosures. |
ITEM 5. |
Other Information. |
Item 6. |
Exhibits. |
* |
These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
Dated: November 18, 2021 | EJF ACQUISITION CORP. | |||||
By: | /s/ Kevin Stein | |||||
Name: | Kevin Stein | |||||
Title: | Chief Executive Officer |