QUARTERLY REPORT UNDER 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) |
(IRS Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-half of one Redeemable Warrant |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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Item 1. |
FINANCIAL STATEMENTS (UNAUDITED) | |||||
Condensed Balance Sheets | 1 | |||||
Condensed Statements of Operations | 2 | |||||
Condensed Statements of Changes in Stockholders’ Deficit | 3 | |||||
Condensed Statement of Cash Flows | 4 | |||||
Notes to Condensed Financial Statements | 5 | |||||
Item 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 23 | ||||
Item 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 27 | ||||
Item 4. |
CONTROLS AND PROCEDURES | 27 | ||||
Item 1. |
LEGAL PROCEEDINGS | 28 | ||||
Item 1A. |
RISK FACTORS | 28 | ||||
Item 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 29 | ||||
Item 3. |
DEFAULTS UPON SENIOR SECURITIES | 29 | ||||
Item 4. |
MINE SAFETY DISCLOSURES | 29 | ||||
Item 5. |
OTHER INFORMATION | 29 | ||||
Item 6. |
EXHIBITS | 30 | ||||
31 |
September 30, 2021 |
December 31, 2020 |
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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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Deferred offering costs |
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Investments 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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Accounts payable |
$ | $ | ||||||
Franchise tax payable |
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Accrued expenses - related party |
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Promissory note - related party |
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Total current liabilities |
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Deferred underwriting fee payable |
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Warrant liabilities |
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Total liabilities |
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Commitments and Contingencies (Note 7) |
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Class A common stock, $ |
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Stockholders’ Deficit: |
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Preferred stock, $ |
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Class A common stock, $ shares subject to possible redemption) at September 30, 2021 and December 31, 2020, respectively |
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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 September 30, 2021 |
Nine Months Ended September 30, 2021 |
For the period from August 10, 2020 (inception) through September 30, 2020 |
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Operating and formation costs |
$ | $ | $ | — | ||||||||
Franchise tax expense |
— | |||||||||||
Loss from operations |
( |
) | ( |
) | — | |||||||
Expensed offering costs |
( |
) | — | |||||||||
Unrealized gain on investments held in Trust Account |
— | |||||||||||
Change in fair value of warrant liabilities |
— | |||||||||||
Interest income |
— | |||||||||||
Net income |
$ |
$ |
$ |
— |
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Basic and diluted weighted average shares outstanding , Class A common stock |
— |
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Basic and diluted net income per share, Class A common stock |
$ |
$ |
$ |
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Basic and diluted weighted average shares outstanding, Class B common stock |
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Basic and diluted net income per share , Class B common stock |
$ |
$ |
$ |
( |
) | |||||||
For the three and nine months ended September 30, 2021 |
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Common Stock |
Additional |
Total |
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Class A |
Class B |
Paid-in |
Accumulated |
Stockholders’ |
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Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Deficit |
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Balance - January 1, 2021 |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||
Excess of cash received over fair value of private placement warrants |
— |
— |
— |
— |
— |
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Accretion of Class A ordinary shares to redemption amount |
— |
— |
— |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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Balance - March 31, 2021 ( Restated - see Note 2 ) |
( |
) |
( |
) | ||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||||
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Balance - June 30, 2021 ( Restated - see Note 2 ) |
( |
) |
( |
) | ||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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Balance - September 30, 2021 |
— |
$ |
— |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||
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For the period from August 10, 2020 (Inception) through September 30, 2020 |
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Common Stock |
Additional |
Total |
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Class A |
Class B (1) |
Paid-in |
Accumulated |
Stockholder’s |
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Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Deficit |
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Balance - August 10, 2020 (Inception) |
$ |
$ |
$ |
$ |
$ |
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Sale of Class B common stock to Sponsor |
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Net loss |
— |
— |
— |
— |
— |
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Balance - September 30, 2020 |
$ |
$ |
$ |
$ |
$ |
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(1) |
Includes an aggregate of shares held by the sponsor that are subject to forfeiture to the extent that the underwriter’s over-allotment is not exercised in full. On January 12, 2021, along with the consummation of the Company’s initial public offering, the underwriter’s over-allotment option was exercised in full, as such, the |
Nine Months Ended September 30, 2021 |
For the period from August 10, 2020 (inception) through September 30, 2020 |
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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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Expensed offering costs on issuance of Public Warrants |
— | |||||||
Unrealized gain on investments held in Trust Account |
( |
) | — | |||||
Interest income on investments held in Trust Account |
( |
) | — | |||||
Change in fair value of warrant liabilities |
( |
) | — | |||||
Changes in operating assets and liabilities: |
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Accounts payable |
— | |||||||
Franchise tax payable |
— | |||||||
Accrued expenses - related party |
— | |||||||
Prepaid expenses |
( |
) | — | |||||
Net cash used in operating activities |
( |
) |
— | |||||
Cash Flows from Investing Activities: |
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Cash deposited in Trust Account |
( |
) | — | |||||
Net cash used in investing activities |
( |
) |
— | |||||
Cash Flows from Financing Activities: |
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Proceeds from sale of Class B common stock to Sponsor |
— | |||||||
Proceeds from promissory note - related party |
— | |||||||
Repayment of promissory note - related party |
( |
) | — | |||||
Proceeds from initial public offering, net of underwriter’s discount paid |
— | |||||||
Proceeds from sale of private placement warrants |
— | |||||||
Offering costs paid |
( |
) | ( |
) | ||||
Reimbursed offering costs |
— | |||||||
Net cash provided by financing activities |
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Net change in cash |
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Cash - beginning of period |
— | |||||||
Cash - end of period |
$ |
$ |
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Supplemental disclosure of noncash investing and financing activities: |
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Accretion of Class A common stock subject to redemption to redemption value |
$ | $ | — | |||||
Deferred underwriting fee payable |
$ | $ | — | |||||
Reclassification of deferred offering costs to equity upon completion of the initial public offering |
$ | $ | — | |||||
June 30, 2021 |
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As Previously Reported |
Adjustments |
As Restated |
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Balance Sheet (unaudited) |
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Class A common stock subject to possible redemption |
$ | $ | $ | |||||||||
Class A common stock |
$ | $ | ( |
) | $ | |||||||
Additional paid-in capital |
$ | $ | ( |
) | $ | |||||||
Retained earnings (accumulated deficit) |
$ | $ | ( |
) | $ | ( |
) | |||||
Total stockholders’ equity (deficit) |
$ | $ | ( |
) | $ | ( |
) | |||||
Condensed Statement of Operations for the Three Months Ended June 30, 2021 (unaudited) |
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Basic and diluted weighted average shares outstanding, Class A common stock |
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Basic and diluted net loss per share, Class A common stock |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Basic and diluted weighted average shares outstanding, Class B common stock (1) |
( |
) |
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Basic and diluted net loss per share, Class B common stock |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Condensed Statement of Operations for the Six Months Ended June 30, 2021 (unaudited) |
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Basic and diluted weighted average shares outstanding, Class A common stock |
$ |
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Basic and diluted net income per share, Class A common stock |
$ |
$ |
$ |
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Basic and diluted weighted average shares outstanding, Class B common stock (1) |
( |
) |
$ |
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Basic and diluted net income per share, Class B common stock |
$ |
$ |
( |
) |
$ |
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Condensed Statement of Changes in Stockholders’ Equity (Deficit) for the Three Months Ended June 30, 2021 (unaudited) |
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Measurement adjustment on redeemable common stock |
$ |
$ |
( |
) |
$ |
— |
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Statement of Cash Flows for the Six Months Supplemental disclosures of non-cash investing and financing activities |
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Initial value of Class A common stock subject to possible redemption |
$ |
$ |
( |
) |
$ |
— |
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Adjustments to Class A common stock subject to possible redemption |
$ |
( |
) |
$ |
$ |
— |
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Accretion of Class A common stock to redemption amount |
$ |
$ |
$ |
(1 ) |
Prior to the change in presentation for the Class A common stock subject to possible redemption, the Company applied to two class method of earnings per share, allocating net income between redeemable Class A common stock and non-redeemable Class A and Class B common stock. As such, a portion of the Class A common stock was included in the weighted average shares outstanding of Class B common stock in the As Previously Reported balances. |
March 31, 2021 |
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As Previously Reported |
Adjustments |
As Restated |
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Balance Sheet (unaudited) |
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Class A common stock subject to possible redemption |
$ | $ | $ | |||||||||
Class A common stock |
$ | $ | ( |
) | $ | |||||||
Additional paid-in capital |
$ | $ | ( |
) | $ | |||||||
Retained earnings (accumulated deficit) |
$ | $ | ( |
) | $ | ( |
) | |||||
Total stockholders’ equity (deficit) |
$ | $ | ( |
) | $ | ( |
) | |||||
Condensed Statement of Operations for the Three Months Ended March 31, 2021 (unaudited) |
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Basic and diluted weighted average shares outstanding, Class A common stock |
( |
) |
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Basic and diluted net income per share, Class A common stock |
$ |
$ |
$ |
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Basic and diluted weighted average shares outstanding, Class B common stock (1) |
( |
) |
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Basic and diluted net income per share, Class B common stock |
$ |
$ |
( |
$ |
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Condensed Statement of Changes in Stockholders’ Equity (Deficit) for the Three Months Ended March 31, 2021 (unaudited) |
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Sale of |
$ |
$ |
( |
) |
$ |
— |
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Class A common stock subject to possible redemption |
$ |
( |
) |
$ |
$ |
— |
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Accretion of Class A common stock to redemption amount |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||
Statement of Cash Flows for the Three Months Supplemental disclosures of non-cash investing and financing activities |
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Class A common stock subject to possible redemption |
$ |
$ |
( |
) |
$ |
— |
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Accretion of Class A common stock to redemption amount |
$ |
— |
$ |
$ |
(1) |
Prior to the change in presentation for the Class A common stock subject to possible redemption, the Company applied to two class method of earnings per share, allocating net income between redeemable Class A common stock and non-redeemable Class A and Class B common stock. As such, a portion of the Class A common stock was included in the weighted average shares outstanding of Class B common stock in the As Previously Reported balances. |
January 12, 2021 |
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As Previously Reported |
Adjustments |
As Restated |
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Balance Sheet (audited) |
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Class A common stock subject to possible redemption |
$ | $ | $ | |||||||||
Class A common stock |
$ | $ | ( |
) | $ | |||||||
Additional paid-in capital |
$ | $ | ( |
) | $ | |||||||
Retained earnings (accumulated deficit) |
$ | $ | ( |
) | $ | ( |
) | |||||
Total stockholders’ equity (deficit) |
$ | $ | ( |
) | $ | ( |
) |
Gross proceeds |
$ | |||
Less: |
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Proceeds allocated to Public Warrants |
( |
) | ||
Issuance costs allocated to Class A common stock |
( |
) | ||
Plus: |
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Accretion of carrying value to redemption value |
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Class A common stock subject to possible redemption |
$ |
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Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income per share: |
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Numerator: |
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Allocation of net income |
$ | $ | |
$ |
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$ | |||||||||
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Denominator: |
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Basic and diluted weighted average shares outstanding |
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Basic and diluted net income per share |
$ | $ | |
$ |
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$ |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the closing price of the common stock equals or exceeds $ |
Description |
Amount at Fair Value |
Level 1 |
Level 2 |
Level 3 |
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September 30, 2021 |
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Assets |
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Investments held in Trust Account: |
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Money Market investments |
$ |
$ |
$ |
— |
$ |
— |
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Liabilities |
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Warrant liability – Public Warrants |
$ |
$ |
$ |
— |
$ |
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Warrant liability – Private Placement Warrants |
$ |
$ |
— |
$ |
— |
$ |
At January 12, 2021 (Initial Measurement) |
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Stock price |
$ | |||
Strike price |
$ | |||
Probability of completing a Business Combination |
% | |||
Expected life of the option to convert (in years) |
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Volatility |
| |||
Risk-free rate |
% | |||
Fair value of warrants |
$ |
At January 12, 2021 (Initial Measurement) |
As of September 30, 2021 |
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Stock price |
$ | $ | ||||||
Strike price |
$ | $ | ||||||
Probability of completing a Business Combination |
% | % | ||||||
Dividend yield |
— | % | — | % | ||||
Remaining term (in years) |
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Volatility |
% | % | ||||||
Risk-free rate |
% | % | ||||||
Fair value of warrants |
$ | $ |
Private Placement |
Public |
Warrant Liabilities |
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Fair value as of December 31, 2020 |
$ | — | $ | — | $ | — | ||||||
Initial measurement at January 12, 2021 |
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Change in valuation inputs or other assumptions |
( |
) | ( |
) | ( |
) | ||||||
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Fair value as of September 30, 2021 |
$ | $ | $ | |||||||||
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* | Filed herewith. |
** | Furnished herewith. |
Tastemaker Acquisition Corp. | ||||||
Date: November 19, 2021 | By: | /s/ David Pace | ||||
Name: David Pace | ||||||
Title: Chief Executive Officer | ||||||
Date: November 19, 2021 | By: | /s/ Chris Bradley | ||||
Name: Chris Bradley | ||||||
Title: Chief Financial Officer and Director |