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 |
NASDAQ Stock Market LLC | |||
NASDAQ Stock Market LLC | ||||
Warrants, each exercisable for one share Class A Common Stock for $11.50 per share |
NASDAQ Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page |
||||||
Item 1. |
3 |
|||||
3 |
||||||
4 |
||||||
5 |
||||||
6 |
||||||
7 |
||||||
Item 2. |
19 |
|||||
Item 3. |
23 |
|||||
Item 4. |
23 |
|||||
Item 1. |
24 |
|||||
Item 1A. |
24 |
|||||
Item 2. |
25 |
|||||
Item 3. |
25 |
|||||
Item 4. |
25 |
|||||
Item 5. |
25 |
|||||
Item 6. |
25 |
|||||
26 |
ITEM 1. |
CONDENSED FINANCIAL STATEMENTS |
March 31, 2022 |
December 31, 2021 |
|||||||
(Unaudited) |
(Audited) |
|||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash |
$ | $ | ||||||
Prepaid expenses |
||||||||
|
|
|
|
|||||
Total Current Assets |
||||||||
Investments held in Trust Account |
||||||||
|
|
|
|
|||||
TOTAL ASSETS |
$ |
$ |
||||||
|
|
|
|
|||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
||||||||
Current Liabilities: |
||||||||
Accounts payable and accrued expenses |
$ | $ | ||||||
Advance from related parties |
||||||||
|
|
|
|
|||||
Total Current Liabilities |
||||||||
Warrant liabilities |
||||||||
Deferred underwriting commissions |
||||||||
|
|
|
|
|||||
TOTAL LIABILITIES |
||||||||
|
|
|
|
|||||
Commitments and contingencies |
||||||||
Class A, common stock subject to possible redemption, |
||||||||
Stockholders’ Deficit |
||||||||
Preferred stock, $ |
||||||||
Class A common stock, $ , |
||||||||
Class B common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total Stockholders’ Deficit |
( |
) |
( |
) | ||||
|
|
|
|
|||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
$ |
$ |
||||||
|
|
|
|
Three March 31, |
||||||||
2022 |
2021 |
|||||||
General administrative expenses and operational costs |
$ | $ | ||||||
|
|
|
|
|||||
Loss from operations |
( |
) |
( |
) | ||||
Other Income: |
||||||||
Interest earned on investments held in Trust Account |
||||||||
Change in fair value of warrant liabilities |
||||||||
Transaction cost related to warrant liability |
( |
) | ||||||
|
|
|
|
|||||
Total other income, net |
||||||||
Net income |
$ |
$ |
||||||
|
|
|
|
|||||
Weighted average shares outstanding of Class A common stock |
||||||||
|
|
|
|
|||||
Basic and diluted net income per share of Class A common stock |
$ |
$ |
||||||
|
|
|
|
|||||
Weighted average shares outstanding of Class B common stock |
||||||||
|
|
|
|
|||||
Basic net income per share of Class B common stock |
$ |
$ |
||||||
|
|
|
|
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance – January 1, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance – March 31, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Equity (Deficit) |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance – January 1, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||
Sale of |
— | — | — | |||||||||||||||||||||||||
Accretion for Class A common stock to redemption amount |
— |
— |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance – March 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
||||||||
2022 |
2021 |
|||||||
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 |
( |
) | ( |
) | ||||
Interest earned on investments held in Trust Account |
( |
) | ( |
) | ||||
Transaction costs allocated to warrants |
||||||||
Changes in operating assets and liabilities: |
||||||||
Prepaid expenses |
( |
) | ||||||
Accounts payable and accrued expenses |
( |
) | ||||||
Net cash used in operating activities |
( |
) |
( |
) | ||||
Cash Flows from Investing Activities: |
||||||||
Cash withdrawn from Trust Account to pay franchise and income taxes |
||||||||
Investment of cash into trust Account |
( |
) | ||||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
Cash Flows from Financing Activities: |
||||||||
Proceeds from sale of Units, net of underwriting discounts paid |
||||||||
Proceeds from sale of Private Placement Units |
||||||||
Advance from related party |
||||||||
Repayment of advances from related party |
( |
) | ||||||
Repayment of promissory note – related party |
( |
) | ||||||
Payment of offering costs |
( |
) | ||||||
Net cash provided by financing activities |
||||||||
Net Change in Cash |
( |
) |
||||||
Cash – Beginning of period |
||||||||
Cash – End of period |
$ |
$ |
||||||
Non-Cash Investing and Financing Activities: |
||||||||
Accretion for Class A common shares to redemption amount |
$ | $ | ||||||
Deferred underwriting fee payable |
$ | $ | ||||||
Gross proceeds |
$ | |||
Less: |
||||
Proceeds allocated to Public Warrants |
( |
) | ||
Class A common stock issuance costs |
( |
) | ||
Plus: |
||||
Accretion of carrying value to redemption value |
||||
Class A common stock subject to possible redemption |
$ | |||
Three Months Ended March 31, |
||||||||||||||||
2022 |
2021 |
|||||||||||||||
Class A |
Class B |
Class A |
Class B |
|||||||||||||
Basic and diluted net income per common stock |
||||||||||||||||
Numerator: |
||||||||||||||||
Allocation of net income, as adjusted |
$ | $ | $ | $ | ||||||||||||
Denominator: |
||||||||||||||||
Basic and diluted weighted average stock outstanding |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per common stock |
$ | $ | $ | $ |
• |
in whole and not in part; |
• |
at a price of $0.01 per warrant; |
• |
upon not less than 30 days’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and |
• |
if, and only if, the reported last sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period commencing once the warrants become exercisable and ending three business days before the Company sends the notice of redemption to the warrant holders. |
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 assessment of the assumptions that market participants would use in pricing the asset or liability. |
Held-To-Maturity |
Level |
Amortized Cost |
Gross Holding Gain (Loss) |
Fair Value |
||||||||||||||
March 31, 2022 |
U.S. Treasury Securities (Mature on 04/14/22) |
1 | $ | $ | ( |
) | $ | |||||||||||
|
|
|
|
|
|
|||||||||||||
December 31, 2021 |
U.S. Treasury Securities (Matures on 01/13/2022) |
1 | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
Description |
Level |
March 31, 2022 |
December 31, 2021 |
|||||||||
Assets: |
||||||||||||
Investments – Money market funds |
1 | |||||||||||
Liabilities: |
||||||||||||
Warrant Liability – Public Warrants |
1 | |||||||||||
Warrant Liability – Private Placement Warrants |
3 |
Input: |
March 31, 2022 |
March 31, 2021 |
||||||
Risk-free interest rate |
% | |
|
% | ||||
Expected term (years) |
|
|
| |||||
Expected volatility |
% | |
|
% | ||||
Exercise price |
$ | |
$ |
| ||||
Stock price |
$ | |
$ |
|
Private Placement |
||||
Fair value as of January 1, 2021 |
$ | |
||
Change in fair value |
( |
) | ||
|
|
|||
Fair value as of March 31, 2022 |
$ | |||
|
|
Private Placement |
Public |
Warrant Liabilities (Level 3) |
||||||||||
Fair value as of January 1, 2021 |
||||||||||||
Initial classification on January 12, 2021 (Initial Public Offering) |
$ |
$ |
$ |
|||||||||
Transfers to Level 1 |
( |
) |
( |
) | ||||||||
Change in fair value |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Fair value as of March 31, 2021 |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
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. |
* | Filed herewith. |
** | Furnished. |
Epiphany Technology Acquisition Corp. | ||||||
Date: May 13, 2022 | /s/ Peter Bell | |||||
Name: | Peter Bell | |||||
Title: | Chief Executive Officer and Chief Financial Officer (Principal Executive Officer and Principal Financial and Accounting Officer) |