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) |
(IRS Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
September 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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Investments 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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Accounts payable |
$ | $ | ||||||
Accrued expenses |
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Accrued income tax |
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Franchise tax payable |
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Total current liabilities |
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Deferred underwriting commissions in connection with the initial public offering |
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Warrant liabilities |
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Total liabilities |
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Commitments and Contingencies (Note 5) |
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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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Accumulated deficit |
( |
) | ( |
) | ||||
Total stockholders’ deficit |
( |
) | ( |
) | ||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit |
$ |
$ |
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For the Three Months Ended |
For the Nine Months Ended |
For the Period from May 19, 2020 (Inception) |
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September 30, 2021 |
September 30, 2020 |
September 30, 2021 |
through September 30, 2020 |
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Operating expenses |
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General and administrative expenses |
$ | $ | $ | $ | ||||||||||||
Franchise tax expense |
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|
|
|
|
|
|
|
|
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Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Change in fair value of warrant liabilities |
( |
) | ( |
) | ( |
) | ||||||||||
Offering costs associated w ith private placement warrants |
— | ( |
) | — | ( |
) | ||||||||||
Net gain from investments held in Trust Account |
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|
|
|
|
|
|
|
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Income (loss) before income tax expense |
( |
) | ( |
) | ( |
) | ||||||||||
Income tax expense |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
|
|
|
|
|
|
|
|
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Weighted average shares outstanding of Class A common stock, basic and diluted |
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|
|
|
|
|
|
|
|
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Basic and diluted net income (loss) per share, Class A common stock |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
|
|
|
|
|
|
|
|
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Weighted average shares outstanding of Class B common stock, basic and diluted |
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
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Basic and diluted net income (loss) per share, Class B common stock |
$ | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||||
|
|
|
|
|
|
|
|
Class B Common Stock |
Additional Paid-In |
Accumulated |
Total Stockholders’ |
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Shares |
Amount |
Capital |
Deficit |
Deficit |
||||||||||||||||
Balance - December 31, 2020 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
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Balance - March 31, 2021 (Unaudited) |
( |
) |
( |
) | ||||||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
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Balance - June 30, 2021 (Unaudited) |
( |
) |
( |
) | ||||||||||||||||
Net income |
— | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
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Balance - September 30, 2021 (Unaudited) |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
Total |
||||||||||||||||||||
Class B Common Stock |
Additional Paid-In |
Accumulated |
Stockholders’ |
|||||||||||||||||
Shares |
Amount |
Capital |
Deficit |
Equity (Deficit) |
||||||||||||||||
Balance - May 19, 2020 (inception) |
$ |
$ |
$ |
$ |
||||||||||||||||
Issuance of Class B common stock to initial stockholders |
— | |||||||||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
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Balance - June 30, 2020 (Unaudited) |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||
Excess cash received over the fair value of the private warrants |
— | — | — | |||||||||||||||||
Offering costs associated with public warrants |
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Accretion on Class A common stock subject to possible redemption amount |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||
Net loss |
— | — | — | ( |
) | ( |
) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
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Balance - September 30, 2020 (Unaudited) |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended September 30, 2021 |
For the Period from May 19, 2020 (Inception) through September 30, 2020 |
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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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General and administrative expenses paid by related party |
||||||||
Change in fair value of warrant liabilities |
||||||||
Offering costs associated with private placement warrants |
||||||||
Net gain from investments held in Trust Account |
( |
) | ( |
) | ||||
Changes in operating assets and liabilities: |
||||||||
Prepaid expenses |
( |
) | ||||||
Accounts payable |
||||||||
Accrued expenses |
( |
) | ||||||
Accrued income tax |
( |
) | ||||||
Franchise tax payable |
( |
) | ||||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
Cash Flows from Investing Activities |
||||||||
Interest released from Trust Account |
||||||||
Cash deposited in Trust Account |
( |
) | ||||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
Cash Flows from Financing Activities: |
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Repayment of note payable to related party |
( |
) | ||||||
Proceeds received from initial public offering, gross |
||||||||
Proceeds received from private placement |
||||||||
Offering costs paid |
— | ( |
) | |||||
Net cash provided by financing activities |
||||||||
Net (decrease) increase in cash |
( |
) | ||||||
Cash - beginning of the period |
||||||||
Cash - end of the period |
$ | $ | ||||||
Supplemental Cash Flow Information |
||||||||
Cash paid for income taxes |
$ | $ | ||||||
Supplemental disclosure of noncash activities: |
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Offering costs paid by related party in exchange for issuance of Class B common stock |
$ | $ | ||||||
Offering costs included in accrued expenses |
$ | $ | ||||||
Offering costs included in note payable |
$ | $ | ||||||
Deferred underwriting commissions in connection with the initial public offering |
$ | $ | ||||||
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
For the Three Months Ended |
For the Nine Months Ended |
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September 30, 2021 |
September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Numerator: |
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Allocation of net income (loss) |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||
Denominator: |
||||||||||||||||
Weighted average common stock outstanding, basic and diluted |
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|
|
|
|
|
|
|
|
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Basic and diluted net per share of common stock |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||
|
|
|
|
|
|
|
|
For the Three Months Ended |
For the Period from May 19, 2020 (Inception) |
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September 30, 2020 |
through September 30, 2020 |
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Class A |
Class B |
Class A |
Class B |
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Numerator: |
||||||||||||||||
Allocation of net loss |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
Denominator: |
||||||||||||||||
Weighted average common stock outstanding, basic and diluted |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net loss per share of common stock |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | ||||
|
|
|
|
|
|
|
|
• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of 30 days’ prior written notice of redemption; and |
• | if, and only if, the last reported sale price of the Class A common stock equals or exceeds $ |
• | in whole and not in part; |
• | at $ |
• | if, and only if, the last reported sale price of the Company’s Class A common stock equals or exceeds $ |
• | if, and only if, the Private Placement Warrants are also concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above; and |
• | if, and only if, there is an effective registration statement covering the issuance of the shares of Class A common stock (or a security other than the Class A common stock into which the Class A common stock has been converted or exchanged for in the event the Company is not the surviving company in the initial Business Combination) issuable upon exercise of the Warrants and a current prospectus relating thereto available throughout the 30-day period after written notice of redemption is given. |
Gross proceeds received from Initial Public Offering and over-allotment |
$ | |||
Less: |
||||
Offering costs allocated to Class A common stock |
( |
) | ||
Plus: |
||||
Accretion on Class A common stock to redemption value |
||||
|
|
|||
Class A common stock subject to possible redemption |
$ | |||
|
|
Fair Value Measured as of September 30, 2021 |
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Level 1 |
Level 2 |
Level 3 |
Total |
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Assets |
||||||||||||||||
Investments held in Trust Account - U.S. Treasury Securities |
$ | $ | — | $ | — | $ | ||||||||||
Liabilities: |
||||||||||||||||
Warrant liabilities |
$ | — | $ | $ | — | $ |
Fair Value Measured as of December 31, 2020 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
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Assets |
||||||||||||||||
Investments held in Trust Account—U.S. Treasury Securities |
$ | $ | — | $ | — | $ | ||||||||||
Liabilities: |
||||||||||||||||
Warrant liabilities |
$ | — | $ | $ | — | $ |
Warrant liabilities at December 31, 2020 |
$ | |||
Change in fair value of warrant liabilities |
||||
|
|
|||
Warrant liabilities at March 31, 2021 |
||||
Change in fair value of warrant liabilities |
||||
|
|
|||
Warrant liabilities at June 30, 2021 |
||||
Change in fair value of warrant liabilities |
( |
) | ||
|
|
|||
Warrant liabilities at September 30, 2021 |
$ | |||
|
|
* | 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 15, 2021 | WEWORK INC. | |||||
By: | /s/ Benjamin Dunham | |||||
Name: | Benjamin Dunham | |||||
Title: | Chief Financial Officer (Principal Financial Officer) |