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 Symbols |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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1 |
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1 |
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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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18 |
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21 |
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21 |
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22 |
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22 |
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22 |
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22 |
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22 |
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22 |
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22 |
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22 |
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25 |
June 30, 2021 |
December 31, 2020 |
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(Unaudited) | ||||||||
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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FPA derivative asset |
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Investments held in Trust Account |
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TOTAL ASSETS |
$ |
$ |
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LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
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Current liabilities |
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Accrued expenses |
$ | $ | ||||||
Accrued offering costs |
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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 |
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Class A common stock subject to possible redemption of $ as of June 30, 2021 and December 31, 2020, respectively |
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Stockholders’ (Deficit) 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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Accumulated deficit |
( |
) | ( |
) | ||||
Total Stockholders’ (Deficit) Equity |
( |
) |
||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
$ |
$ |
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Three Months Ended |
Six Months Ended |
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June 30, 2021 |
June 30, 2021 |
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General and administrative expenses |
$ | $ | ||||||
|
|
|
|
|||||
Loss from operations |
( |
) | ( |
) | ||||
Other income |
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Interest earned on marketable securities held in Trust Account |
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Change in fair value of warrant liability |
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|
|
|
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Total o ther income |
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Income before income taxes |
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Net income |
$ |
$ |
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|
|
|
|||||
Weighted average shares outstanding of Class A redeemable common stock |
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|
|
|
|||||
Basic and diluted income per share, Class A redeemable common stock |
$ | $ | ||||||
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|
|
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Weighted average shares outstanding of Class A and Class B non-redeemable common stock |
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|
|
|
|
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Basic and diluted net loss per share, Class A and Class B non-redeemable common stock |
$ | $ | ||||||
|
|
|
|
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Equity (Deficit) |
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Shares |
Amount |
Shares |
Amount |
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Balance — January 1, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Sale of |
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Excess of proceeds from the sale of private placement warrants to Sponsor |
— | — | — | — | — | |||||||||||||||||||||||
Forfeiture of Founder Shares |
( |
) | ( |
) | ||||||||||||||||||||||||
Class A Common stock subject to redemption |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net loss |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
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Balance – March 31, 2021 |
— |
— |
$ |
— |
$ |
( |
) |
$ |
||||||||||||||||||||
Net income |
— | — | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Balance – June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Operating Activities: |
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Net income |
$ | |||
Adjustments to reconcile net income to net cash used in operating activities: |
||||
Change in fair value of warrant liabilities |
( |
) | ||
Transaction costs incurred in connection with warrant liabilities |
||||
Interest earned on marketable securities held in Trust Account |
( |
) | ||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||
Accrued expenses |
||||
|
|
|||
Net cash used in operating activities |
( |
) | ||
|
|
|||
Cash Flows from Investing Activities: |
||||
Investment of cash in Trust Account |
( |
) | ||
|
|
|||
Net cash used in investing activities |
( |
) | ||
|
|
|||
Cash Flows from Financing Activities |
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Proceeds from sale of Units, net of underwriting discounts paid |
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Proceeds from sale of Private Placements Warrants |
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Repayment of promissory note - related party |
( |
) | ||
Payment of offering costs |
( |
) | ||
|
|
|||
Net cash provided by financing activities |
||||
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|
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Net Change in Cash |
$ |
|||
Cash – Beginning of period |
||||
|
|
|||
Cash – End of period |
$ |
|||
|
|
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Non-Cash investing and financing activities: |
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Offering costs included in accrued offering costs |
$ | |||
|
|
|||
Offering costs paid through promissory note |
$ | |||
|
|
|||
Payment of prepaid expenses through promissory note |
$ | |||
|
|
|||
Initial classification of Class A common stock subject to possible redemption |
$ | |||
|
|
|||
Deferred underwriting fee payable |
$ | |||
|
|
As Previously Reported |
Adjustment |
As Restated |
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Balance Sheet as of February 26, 2021 (audited) |
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Class A common stock subject to possible redemption |
$ |
$ |
$ |
|||||||||
Class A common stock |
$ |
$ |
( |
) |
$ |
— |
||||||
Additional paid-in capital |
$ |
$ |
( |
) |
$ |
— |
||||||
Accumulated deficit |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | |||
Total Stockholders’ Equity (Deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Balance Sheet as of March 31, 2021 (unaudited) |
||||||||||||
Class A common stock subject to possible redemption |
$ |
$ |
$ |
|||||||||
Class A common stock |
$ |
$ |
( |
) |
$ |
— |
||||||
Additional paid-in capital |
$ |
$ |
( |
) |
$ |
— |
||||||
Accumulated deficit |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | |||
Total Stockholders’ Equity (Deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Statement of Cash Flows for the Three Months Ended March 31, 2021 (unaudited) |
||||||||||||
Initial classification of Class A common stock subject to possible redemption |
$ |
$ |
$ |
|||||||||
Change in value of Class A common stock subject to possible redemption |
$ |
( |
) |
$ |
$ |
— |
Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
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Redeemable Class A Common Stock |
||||||||
Numerator: Earnings allocable to Redeemable Class A Common Stock |
||||||||
Interest income earned on marketable securities held in Trust Accounts |
$ | $ | ||||||
Less: Income and Franchise Tax available to be withdrawn from the Trust Account |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Redeemable Net Earnings |
$ | $ | ||||||
Denominator: Weighted Average Redeemable Class A Common Stock |
||||||||
Redeemable Class A Common Stock, Basic and Diluted |
||||||||
Earnings/Basic and Diluted Redeemable Class A Common Stock |
$ | $ | ||||||
Non-Redeemable Class A and Class B Common Stock |
||||||||
Numerator: Net Income minus Redeemable Net Earnings |
||||||||
Net Income |
$ | $ | ||||||
Less: Redeemable Net Earnings |
||||||||
|
|
|
|
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Non-Redeemable Net Earnings |
$ | $ | ||||||
Denominator: Weighted Average Non-Redeemable Class A and B Common Stock |
||||||||
Non-Redeemable Class A and B Common Stock, Basic and Diluted |
||||||||
Income/Basic and Diluted Non-Redeemable Class A and B Common Stock |
$ | $ |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the closing price of the Class A common stock equals or exceeds $ |
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 our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Held-To-Maturity |
Level |
Amortized Cost |
Gross Holding Gain |
Fair Value |
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Assets: |
||||||||||||||||||
June 30, 2021 |
U.S. Treasury Securities (Mature on |
1 | $ | $ | ( |
) | $ | |||||||||||
June 30, 2021 |
FPA Derivative | 3 | $ | |||||||||||||||
Liabilities: |
||||||||||||||||||
June 30, 2021 |
Warrant Liability – Public Warrants | 1 | $ | |||||||||||||||
June 30, 2021 |
Warrant Liability – Private Placement Warrants | 3 | $ |
June 30, 2021 |
||||
Risk-free interest rate – Private Placement warrants |
% | |||
Risk-free interest rate – FPA |
% | |||
Time to maturity |
||||
Expected volatility |
% | |||
Dividend yield |
% | |||
Exercise price |
$ |
|||
Stock Price |
$ |
Private Placement |
Public |
Warrant Liabilities |
||||||||||
Fair value as of January 1, 2021 |
$ | $ | $ | |||||||||
Initial measurement on January 28 , 2021 |
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Change in fair value |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Transfer to Level 1 |
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Fair value as of March 31, 2021 |
|
$ |
|
|
|
$ |
— |
|
|
$ |
|
|
Change in fair value |
( |
) | — |
( |
) | |||||||
|
|
|
|
|
|
|||||||
Fair value as of June 30, 2021 |
$ | $ | — |
$ | ||||||||
|
|
|
|
|
|
FPA Derivative |
||||
Fair value as of January 1, 2021 |
$ | |||
Initial measurement on January 28, 2021 |
( |
) | ||
Change in valuation inputs or other assumptions |
||||
|
|
|||
Fair value as of June 30, 2021 |
$ | |||
|
|
* | Filed herewith. |
** | Furnished. |
HUDSON EXECUTIVE INVESTMENT CORP. III | ||||
Date: August 17, 2021 | By: | /s/ Douglas G. Bergeron | ||
Name: | Douglas G. Bergeron | |||
Title: | Chief Executive Officer (Principal Executive Officer) | |||
Date: August 17, 2021 | By: | /s/ Jonathan Dobres | ||
Name: | Jonathan Dobres | |||
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |