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-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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PART 1 – FINANCIAL INFORMATION |
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Item 1. |
Financial Statements |
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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. |
14 |
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Item 3. |
16 |
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Item 4. |
16 |
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Item 1. |
16 |
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Item 1A. |
17 |
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Item 2. |
17 |
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Item 3. |
17 |
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Item 4. |
17 |
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Item 5. |
17 |
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Item 6. |
18 |
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19 |
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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Marketable securities held in Trust Account |
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TOTAL ASSETS |
$ |
$ |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current ccrued expensesl iability , a |
$ | $ | ||||||
Promissory note – related party |
— |
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Warrant liability |
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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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Retained earnings (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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Operating and formation costs |
$ | $ | ||||||
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Loss from operations |
( |
) |
( |
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Other income (expense): |
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Interest earned on marketable securities held in Trust Account |
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Unrealized loss on marketable securities held in Trust Account |
( |
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Change in fair value of warrant liability |
( |
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Other (expense) income, net |
( |
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(Loss) Income before benefit from (provision for) income taxes |
( |
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Provision for income taxes |
( |
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Net (loss) income |
$ |
( |
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$ |
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Basic and diluted weighted average shares outstanding, Common st o ck subject to possible redemption |
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Basic and diluted net (loss) income per share, Common stock subject to possible redemption |
$ |
( |
) | $ |
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Basic and diluted weighted average shares outstanding, Non-redeemable common stock |
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Basic and diluted net (loss) income per share, Non-redeemable common stock |
$ |
( |
) |
$ |
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Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Retained Earnings/ (Accumulated Deficit) |
Total Stockholders’ Equity |
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Shares |
Amount |
Shares |
Amount |
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Balance — January 1, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Change in value of Class A common stock subject to possible redemption |
( |
) | ( |
) | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – March 31, 2021 |
$ |
$ |
$ |
— |
$ |
$ |
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C hange in value of Class A common stock subject to possible redemptio n |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance – June 30, 202 1 |
$ |
$ |
$ |
— |
$ |
$ |
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Cash Flows from Operating Activities: |
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Net income |
$ | |||
Adjustments to reconcile net income to net cash used in operating activities: |
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Interest earned on marketable securities held in Trust Account |
( |
) | ||
Unrealized loss on marketable securities held in Trust Account |
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Change in fair value of warrant liability |
( |
) | ||
Changes in operating assets and liabilities: |
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Prepaid expenses |
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Accrued expenses |
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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 to pay franchise and income taxes |
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Net cash provided by investing activities |
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Cash Flows from Financing Activities: |
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Proceeds from promissory note – related party |
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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 period |
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Cash – End of period |
$ |
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Non-Cash investing and financing activities: |
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Change in value of Class A common stock subject to possible redemption |
$ | |||
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As Previously Reported |
Adjustments |
As Revised |
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Balance Sheet as of March 31, 2021 (Unaudited) |
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Additional paid-in capital |
$ |
( |
) |
$ |
$ |
— |
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Retained earnings (accumulated deficit) |
( |
) |
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Statement of Changes in Stockholders’ Equity as of March 31, 2021 (Unaudited) |
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Additional Paid in Capital |
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Change in value of Class A Common Stock Subject to Possible Redemption |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Balance — March 31, 2021 |
( |
) |
— |
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Retained Earnings/(Accumulated Deficit) |
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Change in value of Class A Common Stock Subject to Possible Redemption |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||
Balance — March 31, 2021 |
( |
) |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2021 |
2021 |
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Common stock subject to possible redemption |
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Numerator: Earnings allocable to Class A common stock subject to possible redemption |
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Interest earned on marketable securities held in Trust Account |
$ | $ | ||||||
Unrealized loss on investments held in Trust Account |
( |
) | ( |
) | ||||
Less: Interest available to be withdrawn for payment of taxes |
( |
) | ||||||
Net (loss) income attributable |
$ | ( |
) | $ | ||||
Denominator: Weighted Average Common stock subject to possible redemption |
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Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption |
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Basic and diluted net (loss) income per share, Class A common stock subject to possible redemption |
$ | ( |
) | $ | ||||
Non-Redeemable Common Stock |
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Numerator: Net ( income minus Net Earningsloss) |
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Net (loss) income |
$ | ( |
) | $ | ||||
Add: Net loss allocable to Class A common stock subject to possible redemption |
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Non-Redeemable n et (loss) income |
$ | ( |
) | $ | ||||
Denominator: Weighted Average Non-redeemable common stock |
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Basic and diluted weighted average shares outstanding, Non-redeemable common stock |
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Basic and diluted net ( loss) income per share, Non-redeemable common stock |
$ | ( |
) | $ | ||||
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the reported last reported sale price of the Class A common stock for any |
• | in whole and not in part; |
• | at $ |
• | if, and only if, the Reference Value equals or exceeds $ |
• | if the Reference Value is less than $ |
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 the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description |
Level |
June 30, 2021 |
December 31, 2020 |
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Assets: |
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Marketable securities held in Trust Account |
1 | $ | $ | |||||||||
Liabilities: |
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Warrant Liability – Public Warrants |
1 | $ | $ | |||||||||
Warrant Liability – Private Warrants |
2 | $ | $ |
Private Placement |
Public |
Warrant Liabilities |
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Fair value as of December 31, 2020 |
$ | $ | $ | |||||||||
Change in valuation inputs or other assumptions |
( |
) | ( |
) | ( |
) | ||||||
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Fair value as of June 30, 2021 |
$ | $ | $ | |||||||||
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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 |
No. |
Description of Exhibit | |
31.1* | ||
31.2* | ||
32.1** | ||
32.2** | ||
101.INS* | Inline 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.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | The cover page from the Company’s Quarterly report on Form 10-Q for the quarter ended June 30, 2021 has been formatted in Inline XBRL and is included in Exhibits 101. |
* | Filed herewith. |
** | Furnished. |
EQUITY DISTRIBUTION ACQUISITION CORP. | ||||||
Date: August 6, 2021 |
By: |
/s/ William A. Galvin | ||||
Name: |
William A. Galvin | |||||
Title: |
Chief Executive Officer | |||||
(Principal Executive Officer) | ||||||
Date: August 6, 2021 |
By: |
/s/ Philip Tinkler | ||||
Name: |
Philip Tinkler | |||||
Title: |
Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |