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.) |
(Address of Principal Executive Offices) |
(Zip Code) |
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 | |||||
Condensed Balance Sheets as of June 30, 2022 (Unaudited) and December 31, 2021 | 1 | |||||
Condensed Statements of Operations for the three and six months ended June 30, 2022 and 2021 (Unaudited) | 2 | |||||
Condensed Statements of Changes in Stockholders’ Deficit for the three and six months ended June 30, 2022 and 2021 (Unaudited) | 3 | |||||
Condensed Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (Unaudited) | 4 | |||||
Notes to Condensed Financial Statements (Unaudited) | 5 | |||||
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 15 | ||||
Item 3. |
Quantitative and Qualitative Disclosures about Market Risk | 17 | ||||
Item 4. |
Control and Procedures | 17 | ||||
Item 1. |
Legal Proceedings | 18 | ||||
Item 1A. |
Risk Factors | 19 | ||||
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds | 19 | ||||
Item 3. |
Defaults Upon Senior Securities | 19 | ||||
Item 4. |
Mine Safety Disclosures | 19 | ||||
Item 5. |
Other Information | 19 | ||||
Item 6. |
Exhibits | 20 | ||||
21 |
June 30, |
December 31, |
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2022 |
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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Prepaid income taxes |
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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’ DEFICIT |
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Current Liabilities |
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Accrued expenses |
$ | $ | ||||||
Income taxes payable |
— | |||||||
Promissory note-related party |
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Total Current Liabilities |
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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 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 |
( |
( |
) |
( |
( |
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Other income (expense): |
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Interest earned on marketable securities held in Trust Account |
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Change in fair value of warrant liabilities |
( |
) | ||||||||||||||
Unrealized loss on marketable securities held in Trust Account |
( |
) | ( |
) | ( |
) | ||||||||||
Total other income (expense), net |
( |
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Income before provision for income taxes |
( |
) | ||||||||||||||
Provision for income taxes |
( |
) | ( |
) | ( |
) | ||||||||||
Net income (loss) |
$ |
$ |
( |
) |
$ |
$ |
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Weighted average shares outstanding, Class A common stock |
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Basic and diluted net income (loss) per share, Class A common stock |
$ |
$ |
( |
) |
$ |
$ |
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Weighted average shares outstanding, Class B common stock |
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Basic and diluted net income (loss) per share, Class B common stock |
$ |
$ |
( |
) |
$ |
$ |
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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, 2022 |
$ | $ |
$ | $ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Remeasurement of Class A common stock to redemption value |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – March 31, 2022 |
( |
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( |
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Remeasurement of Class A common stock to redemption value |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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 of Class A common stock to redemption value |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – March 31, 2021 |
( |
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( |
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Remeasurement of Class A common stock to redemption value |
— | — | — | — | — | |||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance – June 30, 2021 |
$ | $ |
$ |
$ |
( |
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$ |
( |
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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 |
$ | $ | ||||||
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 |
( |
) | ( |
) | ||||
Change in fair value of warrant liabilities |
( |
) | ( |
) | ||||
Unrealized loss on marketable securities held in Trust Account |
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Changes in operating assets and liabilities: |
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Prepaid expenses |
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Prepaid income taxes |
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Accrued expenses |
( |
) | ||||||
Income taxes payable |
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Net cash used in operating activities |
( |
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( |
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Cash Flows from Investing Activities: |
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Cash withdrawn from Trust Account for 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 |
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Cash – Ending |
$ |
$ |
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Supplemental cash flow information: |
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Cash paid for income taxes |
$ | $ | ||||||
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Non-cash Financing activities: |
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Change in value of Class A common stock subject to possible redemption |
$ | $ | ( |
) | ||||
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Class A common stock subject to possible redemption — January 1, 2021 |
$ |
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Less: |
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Remeasurement of carrying value to redemption value |
( |
) | ||
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Class A common stock subject to possible redemption — December 31, 2021 |
$ | |||
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Plus: |
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Remeasurement of carrying value to redemption value |
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Class A common stock subject to possible redemption — June 30, 2022 |
$ |
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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 |
$ | $ | $ | ( |
) | ( |
) | $ | $ | $ | $ |
• | 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, 2022 |
December 31, 2021 |
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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 Placement Warrants |
2 | $ | $ |
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* | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-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) and 15(d)-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* | 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, 2022, has been formatted in Inline XBRL and is included in Exhibits 101. |
* | Filed herewith. | |
** | Furnished. |
EQUITY DISTRIBUTION ACQUISITION CORP. | ||||||
Date: August 9, 2022 | By: | /s/ William A. Galvin | ||||
Name: | William A. Galvin | |||||
Title: | Chief Executive Officer | |||||
(Principal Executive Officer) | ||||||
Date: August 9, 2022 | By: | /s/ Philip Tinkler | ||||
Name: | Philip Tinkler | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |