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 |
. |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
(Address of principal executive offices) |
(Zip Code) |
( |
(Registrant’s telephone number, including area code) |
N/A |
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
purchase one share of Class A common stock |
The | |||
The | ||||
The |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
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21 | ||||
21 | ||||
21 | ||||
21 | ||||
21 | ||||
21 | ||||
21 | ||||
22 | ||||
23 |
June 30, 2021 |
December 31, 2020 |
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(Unaudited) |
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ASSETS |
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Current assets |
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Cash |
$ | $ | ||||||
Prepaid expenses |
— | |||||||
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Total current assets |
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Deferred offering costs |
— | |||||||
Cash held in Trust Account |
— | |||||||
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Total assets |
$ | $ | ||||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Accounts payable and accrued expenses |
$ | $ | ||||||
Accounts payable – related party |
— | |||||||
Advances from Sponsor |
— | |||||||
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Total current liabilities |
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Warrant liabilities |
— | |||||||
Deferred underwriting fee payable |
— | |||||||
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Total liabilities |
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Commitments and contingencies |
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Class A common stock subject to possible redemption, |
— | |||||||
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Stockholders’ equity |
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Preferred stock, $ |
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Class A common stock, $ |
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Class B common stock, $ |
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Additional paid in capital |
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Accumulated deficit |
( |
) | ( |
) | ||||
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Total stockholders’ equity |
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Total liabilities and stockholders’ equity |
$ | $ | ||||||
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Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
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Formation costs and other operating expenses |
$ | $ | ||||||
Loss from operations |
( |
) | ( |
) | ||||
Other income (expense): |
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Interest income on marketable securities held in Trust Account |
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Change in fair value of warrant liabilities |
( |
) | ( |
) | ||||
Other income (expense), net |
( |
) | ( |
) | ||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Weighted average number of common shares outstanding: |
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Class A – Public shares |
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Class A – Private shares |
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Class B – Common stock |
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Basic and diluted net loss per share: |
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Class A – Public shares |
$ | $ | ||||||
Class A – Private shares |
$ | ( |
) | $ | ( |
) | ||
Class B – Common stock |
$ | ( |
) | $ | ( |
) | ||
Class A |
Class B |
Additional |
Total |
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Common Stock |
Common Stock |
Paid-in |
Accumulated |
Stockholders’ |
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Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Equity |
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Balance – December 31, 2020 |
— |
— |
$ |
$ |
$ |
( |
) |
$ |
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Issuance of Class A common stock, net of stock issuance costs |
— | — | — | |||||||||||||||||||||||||
Issuance of common stock (private units) |
— | — | — |
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Net loss |
— | — | — |
( |
) | ( |
) | |||||||||||||||||||||
Less: common stock subject to redemption |
( |
) | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||
Balance – March 31, 2021 (Unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Change in value of common stock subject to redemption |
— | — | — | |||||||||||||||||||||||||
Balance – June 30, 2021 (Unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Cash flow 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 income earned on marketable securities held in Trust Account |
( |
) | ||
Change in fair value of warrant liabilities |
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Transaction costs allocable to warrant liabilities |
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Changes in operating assets and liabilities |
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Prepaid expenses |
( |
) | ||
Accounts payable and accrued expenses |
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Accounts payable – related party |
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Net cash used in operating activities |
( |
) | ||
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Cash flow from investing activities: |
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Investment of cash in Trust Account |
( |
) | ||
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Net cash used in investing activities |
( |
) | ||
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Cash flows from financing activities: |
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Advances from Sponsor |
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Paydown of Sponsor |
( |
) | ||
Payment of deferred offering costs |
( |
) | ||
Proceeds from issuance of common stock (public units) |
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Proceeds from issuance of common stock (private units) |
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Net cash provided by financing activities |
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Net change in cash |
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Cash at the beginning of the period |
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Cash at the end of the period |
$ | |||
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Supplemental disclosure of non-cash activities: |
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Deferred underwriting fees payable |
$ | |||
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Initial classification of common stock subject to possible redemption |
$ | |||
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Change in value of common stock subject to possible redemption |
$ | ( |
) | |
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Initial measurement of warrants issued in connection with the Initial Public Offering accounted for as liabilities |
$ |
For the three months ended June 30, 2021 |
For the six months ended June 30, 2021 |
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Redeemable Class A Common Stock |
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Numerator: Earnings allocable to redeemable Class A common stock |
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Interest income allocable on marketable securities held in Trust Account |
$ | $ | ||||||
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Net income allocable to redeemable Class A common stock |
$ | $ | ||||||
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Denominator: Weighted average shares outstanding of redeemable Class A common stock |
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Redeemable Class A common stock, basic and diluted |
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Basic and diluted net income per share, redeemable Class A common stock |
$ | $ | ||||||
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Non-Redeemable Class A and Class B Common Stock |
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Numerator: Earnings allocable to non-redeemable Class A and Class B common stock |
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Net loss |
$ | ( |
) | $ | ( |
) | ||
Less: Net income allocable to redeemable Class A common stock |
( |
) | ( |
) | ||||
Non-redeemable net loss |
$ | ( |
) | $ | ( |
) | ||
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Denominator: Weighted average shares outstanding of non-redeemable Class A and Class B common stock |
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Non-redeemable Class A and Class B common stock, basic and diluted |
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Basic and diluted net loss per non-redeemable per share of Class A and Class B common stock |
$ | ( |
) | $ | ( |
) | ||
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Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. | |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
• | Founder Shares and Private Shares are subject to certain transfer restrictions, as described in more detail below |
• | The Initial Stockholders have agreed to |
• | waive redemption rights with respect to Founder Shares, Private Shares, and any Public Shares held by them in connection with the completion of the initial Business Combination; |
• | waive redemption rights with respect to Founder Shares, Private Shares, and any Public Shares held by them in connection with a stockholder vote to approve an amendment to the amended and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with the initial Business Combination or to redeem pre-initial Business Combination activity; and |
• | waive their rights to liquidating distributions from the Trust Account with respect to Founder Shares if the Company fails to complete the initial Business Combination during the Combination Period, although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold |
• | Founder Shares are shares of Class B common stock that will automatically convert into shares of Class A common stock at the time of the initial Business Combination, or at any time prior thereto at the option of the holder, on a one-for-one |
• | Are entitled to registration rights |
• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of |
• | if, and only if, the last reported sale price of Class A common stock for any |
• | Will be non-redeemable |
• | May not, subject to certain limited exceptions, be transferred, assigned, or sold by the Sponsor until |
• | May be exercised on a cashless basis, so long as they are held by the Sponsor or its permitted transferees |
Description |
Level |
June 30, 2021 |
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Assets: |
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Marketable securities held in Trust Account |
1 | $ | ||||||
Liabilities: |
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Private Warrants |
3 | $ | ||||||
Public Warrants |
1 | $ |
Input |
June 30, 2021 |
|||
Risk-free interest rate |
% | |||
Expected term (years) |
||||
Expected volatility |
% | |||
Exercise price |
$ | |||
Fair value of Class A common stock |
$ |
• | The risk-free interest rate assumption was based on the five-year U.S. Treasury rate, which was commensurate with the contractual term of the Warrants, which expire on the earlier of (i) five years after the completion of the initial business combination and (ii) upon redemption or liquidation. An increase in the risk-free interest rate, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa. |
• | The expected term was determined to be |
• | The expected volatility assumption was based on the implied volatility from a set of comparable publicly-traded warrants as determined based on the size and proximity of other similar business combinations. An increase in the expected volatility, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa. |
• | The fair value of one Class A common, represents the closing price on the measurement date as observed from the ticker GHAC. Prior to trading, the fair value is inferred by solving to the publicly-traded stock price. |
Private |
Public |
Warrant Liabilities |
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Fair value as of December 31, 2020 |
$ | $ | $ | |||||||||
Initial measurement on February 2, 2021 |
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Change in valuation inputs or other assumptions (1) |
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Fair value as of June 30, 2021 |
$ | $ | $ | |||||||||
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(1) |
Changes in valuation inputs or other assumptions are recognized in change in fair value of warrant liabilities in the condensed statement of operations. |
Fair value as of December 31, 2020 |
$ |
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Initial measurement on February 2, 2021 |
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Change in fair value |
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Fair value as of March 31, 2021 |
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Transfer of Public Warrants to Level 1 measurement |
( |
) | ||
Change in fair value |
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Fair value as of June 30, 2021 |
$ |
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* | Filed herewith. |
** | 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. |
GAMING & HOSPITALITY ACQUISITION CORP. | ||||||
Date: August 12, 2021 | By: | /s/ Mary Elizabeth Higgins | ||||
Name: | Mary Elizabeth Higgins | |||||
Title: | Chief Executive Officer and Director | |||||
Principal Executive Officer | ||||||
Date: August 12, 2021 | By: | /s/ Andrei Scrivens | ||||
Name: | Andrei Scrivens | |||||
Title: | Chief Financial Officer | |||||
Principal Financial and Accounting Officer |