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-half of one warrant |
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Class |
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A common stock at an exercise price of $11.50 per share |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
June 30, 2021 (Unaudited) |
December 31, 2020 |
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Assets |
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Current assets: |
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Cash |
$ | $ | ||||||
Prepaid expenses |
— | |||||||
Deferred offering costs associated with IPO |
— | |||||||
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Total current assets |
$ | $ | ||||||
Prepaid expenses – Non-Current |
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Cash Held in Trust account |
— | |||||||
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Total assets |
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Liabilities and Stockholders’ Equity |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ | $ | ||||||
Sponsor loans |
— | |||||||
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Total current liabilities |
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Warrant Liabilities |
— | |||||||
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Total liabilities |
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Commitments |
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Common stock subject to possible redemption, s |
— | |||||||
Stockholders’ equity: |
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Preferred stock, $ |
— | |||||||
Class A common stock, $ s |
— | |||||||
Class B common stock, $ |
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Additional paid-in capital |
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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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Formation and operating costs |
$ | $ | ||||||
Loss from operations |
( |
) | ( |
) | ||||
Other income/(expense): |
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Interest income |
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Change in fair value of warrant liability |
( |
) | ( |
) | ||||
Offering cost related to warrants issuance |
( |
) | ||||||
Total other (expense) |
( |
) | ( |
) | ||||
Net loss |
( |
) | ( |
) | ||||
Weighted average common shares outstanding, basic and diluted |
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Basic and diluted net loss per common share |
$ | ( |
) | $ | ( |
) | ||
Common Stock |
Additional Paid-In Capital |
Retained Earnings (Accumulated Deficit) |
Total Stockholders’ Equity |
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Class A |
Class B |
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Shares |
Amount |
Shares |
Amount |
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Balance as of December 31, 2020 |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
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Sale of Units in Initial Public Offering |
— | — | — | |||||||||||||||||||||||||
Sale of private placement warrants |
— | — | — | — | ||||||||||||||||||||||||
Underwriter discount |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Initial value of warrant liabilities |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Other offering cost charged to Stockholders’ equity |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Reclassification of offering costs related to warrants |
— | — | — | — | — | |||||||||||||||||||||||
Class A common stock subject to possible redemption |
( |
) | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Balance as of March 31, 2021 |
$ |
$ |
$ |
$ |
$ |
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Change in Class A common stock subject to possible redemption |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Balance as of June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
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For the Six Months Ended June 30, 2021 |
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Cash Flows from Operating Activities: |
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Net loss |
$ | ( |
) | |
Adjustments to reconcile net loss to net cash used in operating activities: |
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Interest earned on trust account |
( |
) | ||
Change in fair value of warrant liabilities |
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Offering costs allocated to warrants |
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Changes in current assets and current liabilities: |
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Prepaid assets |
( |
) | ||
Accounts payable |
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Net cash used in operating activities |
( |
) | ||
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Cash Flows from Investing Activities: |
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Investment of cash into trust account |
( |
) | ||
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Net cash used in investing activities |
( |
) | ||
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Cash Flows from Financing Activities: |
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Proceeds from Initial Public Offering, net of underwriters’ discount |
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Proceeds from issuance of Private Placement Warrants |
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Repayment of promissory note to related party |
( |
) | ||
Payments of offering costs |
( |
) | ||
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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 Disclosure of Non-cash Financing Activities: |
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Initial value of Class A common stock subject to possible redemption |
$ | |||
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Initial value of warrant liabilities |
$ | |||
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Change in value of Class A common stock subject to possible redemption |
$ | ( |
) | |
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For the three months ended June 30, 2021 |
For the six months ended June 30, 2021 |
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Net loss |
$ | ( |
) | $ | ( |
) | ||
Less: Loss attributable to shares subject to possible redemption |
( |
) | ( |
) | ||||
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Adjusted net loss |
$ | ( |
) | $ | ( |
) | ||
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Weighted average shares outstanding, basic and diluted |
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Basic and diluted net loss per common share |
$ | ( |
) | $ | ( |
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• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the last sale price of our Class A common stock equals or exceeds $ |
• | in whole and not in part; |
• | at a price equal to a number of shares of Class A common stock to be determined by reference to the agreed table set forth in the warrant agreement based on the redemption date and the “fair market value” of the Class A common stock; |
• | upon not less than |
• | if, and only if, the last sale price of our Class A common stock equals or exceeds $ |
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
June 30, 2021 |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Assets: |
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Cash held in Trust Account |
$ | $ | $ | — | $ | — | ||||||||||
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$ | $ | $ | — | $ | — | |||||||||||
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Liabilities: |
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Private Placement Warrants |
— | — | $ | |||||||||||||
Public Warrants |
— | — | $ | |||||||||||||
Transfer from Level 3 to Level 1 |
— | — | $ | ( |
) | |||||||||||
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Total Warrant Liability |
$ | $ | $ | |
$ | |||||||||||
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At March 5, 2021 (Initial Measurement) |
At June 30, 2021 |
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Stock price |
$ | $ | ||||||
Strike price |
$ | $ | ||||||
Term (in years) |
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Volatility |
% | % | ||||||
Risk-free rate |
% | % | ||||||
Dividend yield |
% | % |
Public |
Private Placement |
Warrant Liabilities |
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Fair value as of December 31, 2020 |
$ | — | $ | — | $ | — | ||||||
Initial measurement on March 1, 2021 |
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Change in valuation inputs or other assumptions |
( |
) | ( |
) | ( |
) | ||||||
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Fair value as of March 31, 2021 |
$ | $ | $ | |||||||||
Change in valuation inputs or other assumptions |
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Fair value as of June 30, 2021 |
$ | $ | $ | |||||||||
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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. |
FLAME ACQUISITION CORP. | ||||||
Date: August 16, 2021 | By: | /s/ James C. Flores | ||||
Name: | James C. Flores | |||||
Title: | President and Chief Executive Officer (Principal Executive Officer Officer) | |||||
Date: August 16, 2021 | By: | /s/ Gregory D. Patrinely | ||||
Name: | Gregory D. Patrinely | |||||
Title: | Chief Financial Officer and Secretary (Principal Accounting Officer and Principal Financial Officer) |