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 or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-fourth of one warrant |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page |
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21 | ||||
21 | ||||
22 | ||||
22 | ||||
22 | ||||
22 | ||||
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23 | ||||
24 | ||||
25 |
June 30, 2022 |
December 31, 2021 |
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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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Cash and marketable securities held in Trust Account |
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TOTAL ASSETS |
$ |
$ |
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LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT |
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Current liabilities |
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Accrued expenses |
$ | $ | ||||||
Income taxes payable |
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Total Current liabilities |
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Convertible promissory note - related party, net of discount |
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Conversion option liability |
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Deferred legal fee |
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Warrant liabilities |
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Deferred underwriting fee payable |
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Total liabilities |
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COMMITMENTS AND CONTINGENCIES (Note 6) |
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Class A common stock subject to possible redemption, |
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Stockholders’ deficit |
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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’ deficit |
( |
) |
( |
) | ||||
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TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT |
$ |
$ |
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|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
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2022 |
2021 |
2022 |
2021 |
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Formation and operating costs |
$ | $ | $ | $ | ||||||||||||
Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Other income (expense): |
||||||||||||||||
Change in fair value of warrant liabilities |
( |
) | ( |
) | ||||||||||||
Interest earned on marketable securities held in Trust Account |
||||||||||||||||
Unrealized loss on marketable securities held in Trust Account |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Change in fair value of conversion option liability |
— | — | ||||||||||||||
Interest expense - debt discount |
( |
) | — | ( |
) | — | ||||||||||
Total other income (expense), net |
( |
) | ( |
) | ||||||||||||
Income (Loss) before provision for income taxes |
( |
) | ( |
) | ||||||||||||
Provision for income taxes |
( |
) | — | ( |
) | — | ||||||||||
Net income (loss) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
Basic and diluted weighted average shares outstanding of Class A common stock |
||||||||||||||||
Basic and diluted net income (loss) per share, Class A common stock |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
Basic and diluted weighted average shares outstanding of Class B common stock |
||||||||||||||||
Basic and diluted net income (loss) per share, Class B common stock |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance — January 1, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance — March 31, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance — June 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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|
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance — January 1, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Remeasurement adjustment on redeemable common stock |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance — March 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance — June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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For the Six Months Ended June 30, |
For the Six Months Ended June 30, |
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2022 |
2021 |
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Cash flows from operating activities: |
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Net income (loss) |
$ | $ | ( |
) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
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Change in fair value of warrant liabilities |
( |
) | ||||||
Amortization of debt discount |
— | |||||||
Interest earned on marketable securities held in Trust Account |
( |
) | ( |
) | ||||
Unrealized loss on marketable securities held in Trust Account |
||||||||
Change in value of conversion option liability |
( |
) | — | |||||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||||||
Accrued expenses |
||||||||
Income taxes payable |
— | |||||||
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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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Cash withdrawn from Trust Account for working capital purposes |
— | |||||||
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Net cash provided by investing activities |
— | |||||||
Net change in cash |
( |
) |
( |
) | ||||
Cash – Beginning of period |
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Cash – End of period |
$ |
$ |
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Supplementary cash flow information: |
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Cash paid for income taxes |
$ | $ | — | |||||
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Gross proceeds |
$ | |||
Less: |
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Proceeds allocated to Public Warrants |
$ | ( |
) | |
Class A common stock issuance costs |
$ | ( |
) | |
Plus: |
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Remeasurement of carrying value to redemption value |
$ | |||
Class A common stock subject to possible redemption, December 31, 2020 |
$ | |||
Plus: |
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Remeasurement of carrying value to redemption value |
$ | |||
Class A common stock subject to possible redemption, December 31, 2021 |
$ | |||
Plus: |
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Remeasurement of carrying value to redemption value |
$ | |||
Class A common stock subject to possible redemption, June 30, 2022 |
$ |
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2022 |
Six Months Ended June 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income (loss) per common share |
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Numerator: |
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Allocation of net income (loss) |
$ | $ | $ | ( |
) | ( |
) | $ | $ | $ | ( |
) | $ | ( |
) | |||||||||||||||||
Denominator: |
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Basic and diluted weighted average shares outstanding |
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Basic and diluted net income (loss) per common share |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | ( |
) | $ | ( |
) |
June 30, 2022 |
December 31, 2021 |
October 22, 2021 Borrowing (Initial Measurement) |
August 30, 2021 Borrowing (Initial Measurement) |
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Underlying warrant value |
$ | $ | $ | $ | ||||||||||||
Exercise price |
$ | $ | $ | $ | ||||||||||||
Holding period |
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Risk-free rate % |
% | % | % | % | ||||||||||||
Volatility % |
% | % | % | % | ||||||||||||
Dividend yield % |
% | % | % | % |
Fair value as of January 1, 2022 |
$ | |||
Change in fair value |
( |
) | ||
Fair value as of March 31, 2022 |
$ | |||
Change in fair value |
( |
) | ||
Fair value as of June 30, 2022 |
$ |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than thirty ( |
• | if, and only if, the reported last sale price of the Company’s common stock equals or exceeds $ |
• | if, and only if, there is a current registration statement in effect with respect to the shares of common stock underlying the Warrants. |
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. |
Description |
Level |
June 30, 2022 |
December 31, 2021 |
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Assets: |
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Marketable securities held in Trust Account |
1 | $ | $ | |||||||||
Liabilities: |
||||||||||||
Warrant liabilities – Public Warrants |
1 | |||||||||||
Warrant liabilities – Private Placement Warrants |
3 | |||||||||||
Convertible Option Liability |
3 |
Private Warrants As of June 30, 2022 |
Private Warrants As of December 31, 2021 |
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Exercise price |
$ | $ | ||||||
Stock price |
$ | $ | ||||||
Volatility |
% | % | ||||||
Probability of completing a Business Combination |
% | % | ||||||
Term |
||||||||
Risk-free rate |
% | % | ||||||
Dividend yield |
% | % |
Private Placement |
Public |
Warrant Liabilities |
||||||||||
Fair value as of December 31, 2021 |
$ | $ | $ | |||||||||
Change in valuation inputs or other assumptions |
( |
) | ( |
) | ( |
) | ||||||
Fair value as of March 31, 2022 |
||||||||||||
Change in valuation inputs or other assumptions |
( |
) | ( |
) | ( |
) | ||||||
Fair value as of June 30, 2022 |
$ | $ | $ |
Private Placement |
||||
Value of level 3 liabilities as of December 31, 2021 |
$ | |
||
Change in valuation inputs or other assumptions |
( |
) | ||
Value of level 3 liabilities as of March 31, 2022 |
$ | |
||
Change in valuation inputs or other assumptions |
( |
) | ||
Fair value as of June 30, 2022 |
$ |
No. |
Description of Exhibit | |
31.1* | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2* | Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1** | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2** | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
Exhibit 104 | Cover Page Interactive Data File — The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
* | Filed herewith. |
** | Furnished herewith. |
CHURCHILL CAPITAL CORP V | ||||||
Date: August 12, 2022 | By: | /s/ Michael Klein | ||||
Name: | Michael Klein | |||||
Title: | Chief Executive Officer and President | |||||
(Principal Executive Officer) | ||||||
Date: August 12, 2022 | By: | /s/ Jay Taragin | ||||
Name: | Jay Taragin | |||||
Title: | Chief Financial Officer | |||||
(Principal Accounting and Financial Officer) |