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) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
|
||
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
™ , each consisting of one share of Class A common stock and one-fourth of one redeemable warrant |
||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page No. |
||||||
Item 1. |
Condensed Financial Statements | 1 | ||||
Condensed Balance Sheets | 1 | |||||
Unaudited Condensed Statements of Operations | 2 | |||||
Unaudited Condensed Statements of Changes in Stockholders’ Deficit | 3 | |||||
Unaudited Condensed Statements of Cash Flows | 4 | |||||
Notes to Unaudited Condensed Financial Statements | 5 | |||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 20 | ||||
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk | 24 | ||||
Item 4. |
Controls and Procedures | 24 | ||||
Item 1. |
Legal Proceedings | 25 | ||||
Item 1A. |
Risk Factors | 25 | ||||
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities | 25 | ||||
Item 3. |
Defaults Upon Senior Securities | 2 5 |
||||
Item 4. |
Mine Safety Disclosures | 26 | ||||
Item 5. |
Other Information | 26 | ||||
Item 6. |
Exhibits | 26 | ||||
27 |
September 30, 2021 |
December 31, 2020 |
|||||||
(Unaudited) |
||||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash |
$ | $ | ||||||
Prepaid expenses |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
Investments held in Trust Account |
||||||||
|
|
|
|
|||||
Total Assets |
$ |
$ |
||||||
|
|
|
|
|||||
Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit: |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses |
||||||||
Franchise tax payable |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Convertible Note—related party |
||||||||
Warrant liabilities |
||||||||
|
|
|
|
|||||
Total Liabilities |
||||||||
Commitments and Contingencies |
||||||||
Class A common stock subject to possible redemption; $ September 30, 2021 and December 31, 2020 |
||||||||
Stockholders’ Deficit: |
||||||||
Preferred stock, $ and December 31, 2020 |
||||||||
Class A common stock, $ |
||||||||
Class B common stock, $ |
||||||||
Class F common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total stockholders’ deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit |
$ |
$ |
||||||
|
|
|
|
For the Period from |
||||||||||||||||
For the Three Months Ended |
For the Nine Months Ended |
June 22, 2020 (Inception) through September 30, 2020 |
||||||||||||||
September 30, 2021 |
September 30, 2020 |
September 30, 2021 |
||||||||||||||
Operating expenses |
||||||||||||||||
General and administrative expenses |
$ | $ | $ | $ | ||||||||||||
Administrative fee—related party |
||||||||||||||||
Franchise tax expense |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from Operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Change in fair value of warrant liabilities |
||||||||||||||||
Offering costs associated with public and private warrants |
( |
) | ( |
) | ||||||||||||
Income from investments held in Trust Account |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | $ | |
$ | $ | |
||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class A common stock, basic and diluted |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class A common stock |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class B common stock, basic and diluted |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class B common stock |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class F common stock, basic and diluted |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class F common stock |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Common Stock |
Total |
|||||||||||||||||||||||||||||||||||
Class A |
Class B |
Class F |
Additional Paid-In |
Accumulated |
Stockholders’ |
|||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Deficit |
||||||||||||||||||||||||||||
Balance—December 31, 2020 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance—March 31, 2021 (unaudited) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance—June 30, 2021 (unaudited) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance—September 30, 2021 (unaudited) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock |
Total |
|||||||||||||||||||||||||||||||||||
Class A |
Class B |
Class F |
Additional Paid-In |
Accumulated |
Stockholders’ |
|||||||||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Deficit |
||||||||||||||||||||||||||||
Balance—June 22, 2020 (inception) |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||
Issuance of Class B common stock to Sponsor |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Issuance of Class F common stock to Sponsor |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Net loss |
— | — | — | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance—June 30, 2020 (unaudited) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||
Excess cash received over the fair value of the private warrants |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Accretion on Class A common stock subject to possible redemption amount |
— | — | — | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Net income |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Balance—September 30, 2020 (unaudited) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Period from |
||||||||
For the Nine Months Ended |
June 22, 2020 (Inception) |
|||||||
September 30, 2021 |
through September 30, 2020 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
Change in fair value of warrant liabilities |
( |
) | ( |
) | ||||
General and administrative expenses paid by related party under note payable |
— | |||||||
Offering costs associated with derivative warrant liabilities |
— | |||||||
Interest income from investments held in Trust Account |
( |
) | ( |
) | ||||
Changes in assets and liabilities: |
||||||||
Prepaid expenses |
( |
) | ||||||
Accounts payable |
||||||||
Accrued expenses |
( |
) | ||||||
Franchise tax payable |
||||||||
|
|
|
|
|||||
Net cash used in operating activities |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Cash Flows from Investing Activities |
||||||||
Cash deposited in Trust Account |
— | ( |
) | |||||
|
|
|
|
|||||
Net cash used in investing activities |
— | ( |
) | |||||
|
|
|
|
|||||
Cash Flows from Financing Activities: |
||||||||
Proceeds received from initial public offering, gross |
— | |||||||
Proceeds received from private placement |
— | |||||||
Proceeds from Convertible Note—related party |
— | |||||||
Repayment of note payable to related party |
— | ( |
) | |||||
Offering costs paid |
— | ( |
) | |||||
|
|
|
|
|||||
Net cash provided by financing activities |
||||||||
|
|
|
|
|||||
Net change in cash |
( |
) | ||||||
Cash—beginning of the period |
||||||||
|
|
|
|
|||||
Cash—end of the period |
$ |
$ |
||||||
|
|
|
|
|||||
Supplemental disclosure of noncash activities: |
||||||||
Offering costs paid in exchange for issuance of Class B common stock to Sponsor |
$ | — | $ | |||||
Offering costs paid in exchange for issuance of Class F common stock to Sponsor |
$ | — | $ | |||||
Offering costs included in accrued expenses |
$ | — | $ | |||||
Offering costs included in accounts payable |
$ | — | $ | |||||
Offering costs paid through note payable |
$ | — | $ |
• | Level 1, defined as observable inputs such as quoted prices 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 |
|||||||||||||||||||||||
September 30, 2021 |
September 30, 2021 |
|||||||||||||||||||||||
Class A |
Class B |
Class F |
Class A |
Class B |
Class F |
|||||||||||||||||||
Numerator: |
||||||||||||||||||||||||
Allocation of net income |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Denominator: |
||||||||||||||||||||||||
Weighted average common stock outstanding, basic and diluted |
||||||||||||||||||||||||
Basic and diluted net income per share of common stock |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
For the Three Months Ended |
For the Period from June 22, 2020 (Inception) |
|||||||||||||||||||||||
September 30, 2020 |
through September 30, 2020 |
|||||||||||||||||||||||
Class A |
Class B |
Class F |
Class A |
Class B |
Class F |
|||||||||||||||||||
Numerator: |
||||||||||||||||||||||||
Allocation of net income |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Denominator: |
||||||||||||||||||||||||
Weighted average common stock outstanding, basic and diluted |
||||||||||||||||||||||||
Basic and diluted net income per share of common stock |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
• | at any time while the warrants are exercisable, |
• | upon a minimum of |
• | if, and only if, the last sales price of shares of the Class A common stock equals or exceeds $18.00 per share for any “30-day trading period”) ending three business days before the Company sends the notice of redemption, and |
• | if, and only if, there is a current registration statement in effect with respect to the shares of Class A common stock underlying such warrants commencing five business days prior to the 30-day trading period and continuing each day thereafter until the date of redemption. |
Gross proceeds from Initial Public Offering |
$ | |
||
Less: |
||||
Fair value of Public Warrants at issuance |
( |
) | ||
Offering costs allocated to Class A common stock subject t o possible redemption |
( |
) | ||
Plus: |
||||
Accretion on Class A common stock subject to possible redemption value |
||||
|
|
|||
Class A common stock subject to possible redemption |
$ | |||
|
|
Fair Value Measured as of September 30, 2021 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets |
||||||||||||||||
Investments held in Trust Account—U.S. Treasury Securities |
$ | |
$ | — | $ | — | $ | |||||||||
Liabilities: |
||||||||||||||||
Warrant liabilities—public warrants |
$ | $ | — | $ | — | $ | ||||||||||
Warrant liabilities—private warrants |
$ | — | $ | — | $ |
$ |
Fair Value Measured as of December 31, 2020 |
||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||
Assets |
||||||||||||||||
Investments held in Trust Account—U.S. Treasury Securities |
$ | $ | — | $ | — | $ | ||||||||||
Liabilities: |
||||||||||||||||
Warrant liabilities—public warrants |
$ | $ | — | $ | — | $ |
||||||||||
Warrant liabilities—private warrants |
$ | — | $ | — | $ | $ |
September 30, 2021 |
December 31, 2020 |
|||||||
Exercise price |
$ | |
$ | |
||||
Stock Price |
$ | $ | ||||||
Term (in years) |
||||||||
Volatility |
% | % | ||||||
Risk-free interest rate |
% | % | ||||||
Dividend yield |
% | % |
Level 3 warrant liabilities at December 31, 2020 |
$ | |
||
Change in fair value of warrant liabilities |
( |
) | ||
Level 3 warrant liabilities at March 31, 2021 |
||||
Change in fair value of warrant liabilities |
||||
Level 3 warrant liabilities at June 30, 2021 |
||||
Change in fair value of warrant liabilities |
( |
) | ||
Level 3 warrant liabilities at September 30, 2021 |
$ | |||
* | 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. |
EXECUTIVE NETWORK PARTNERING CORPORATION | ||
By: | /s/ Alex Dunn | |
Name: | Alex Dunn | |
Title: | (Principal Executive Officer & Principal Financial and Accounting Officer) |