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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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 |
Page |
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Item 1. |
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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Item 2. |
18 |
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Item 3. |
21 |
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Item 4. |
21 |
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22 |
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Item 1. |
22 |
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Item 1A. |
22 |
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Item 2. |
23 |
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Item 3. |
23 |
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Item 4. |
23 |
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Item 5. |
23 |
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Item 6. |
24 |
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25 |
September 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 |
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Prepaid expenses –Non-Current |
— |
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Investment 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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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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Class A Common stock subject to possible redemption, |
— | |||||||
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 |
— | |||||||
Accumulated deficit |
( |
) | ( |
) | ||||
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Total stockholders’ (deficit) equity |
( |
) |
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Total liabilities and stockholders’ (deficit) equity |
$ | $ | ||||||
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|
For the three months ended September 30, 2021 |
For the nine months ended September 30, 2021 |
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Formation and operating costs |
$ | $ | ||||||
Loss from operations |
( |
) | ( |
) | ||||
Other income (expense): |
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Interest income from Trust Account |
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Change in fair value of warrant liabilities |
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Offering costs allocated to warrants |
( |
) | ||||||
Total other income, net |
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Net Income |
$ | $ | ||||||
Weighted average shares outstanding, redeemable Class A common stock |
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Basic and diluted net income per share, redeemable Class A common stock |
$ | $ | ||||||
Weighted average shares outstanding, non-redeemable common stock |
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Basic and diluted net income per share, non-redeemable common stock |
$ | $ | ||||||
Common Stock |
Additional Paid-In Capital |
Accumulated Deficit |
Total Stockholders’ Equity ( Deficit) |
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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 |
— | — | — | |||||||||||||||||||||||||
Underwriter discount |
— | — | — | — | ( |
) | — |
( |
) | |||||||||||||||||||
Sale of Private Placement Warrants |
— | — | — | — | ||||||||||||||||||||||||
Initial value of warrant liabilities |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Other offering costs charged to Stockholders’ equity (deficit) |
— | — | — | — | ( |
) | — | ( |
) | |||||||||||||||||||
Offering costs allocated to warrants |
— | — | — | — | — | |||||||||||||||||||||||
Initial value before remeasurement to redemption value (1) |
( |
) | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||
Remeasurement to redemption value (1) |
|
|
— |
|
|
|
— |
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|
|
— |
|
|
|
— |
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|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance as of March 31, 2021 (1) |
— |
$ |
— |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance as of June 30, 2021 (1) |
— | $ | — | $ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance as of September 30, 2021 |
— | $ | — | $ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||
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(1) |
As restated for Class A shares subject to redemption (see Note 2). |
For the Nine Months Ended September 30, 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 Trust Account |
( |
) | ||
Change in fair value of warrant liabilities |
( |
) | ||
Offering costs allocated to warrants |
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Changes in current assets and current liabilities: |
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Prepaid expenses |
( |
) | ||
Accounts payable and accrued expenses |
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|
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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 |
( |
) | ||
|
|
|||
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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Proceeds from promissory note - related party |
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Repayment of promissory note - related party |
( |
) | ||
Payments of offering costs |
( |
) | ||
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|
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Net cash provided by financing activities |
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Net Change in Cash |
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Cash—Beginning of period |
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Cash— End of period |
$ | |||
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|
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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 (1) |
$ | |||
Remeasurement to Initial Redemption Value (1) |
|
$ |
|
|
Initial value of warrant liabilities |
|
$ |
|
|
(1) |
As restated for Class A shares subject to redemption (see Note 2). |
As Reported |
Adjustment |
As Restated |
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Financial Statement as of March 1, 2021 (as presented in the Notes to Condensed Financial Statements in Form 10-Q filed on May 28, 2021) |
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Balance Sheet |
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Class A common stock, subject to possible redemption ($) |
|
$ |
|
|
$ |
|
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$ |
| |||
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Class A common stock—$ |
|
$ |
|
|
$ |
( |
) |
|
$ |
— | | |
Class B common stock—$ |
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|
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|
|
— | |
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| ||
Additional paid-in capital |
|
|
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|
|
( |
) |
|
|
— | | |
Accumulated deficit |
|
|
( |
) | |
|
( |
) | |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
| |
Total stockholders’ equity (deficit) |
|
$ |
|
|
$ |
( |
) | |
$ |
( |
) | |
|
|
|
|
|
|
|
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| |
Number of shares subject to redemption |
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| |||
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| |
Number of shares not subject to redemptio n |
|
|
|
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|
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( |
) |
|
|
|
|
Financial Statements as of March 31, 2021 (per form 10-Q filed on May 28, 2021) |
|
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|
| |||
Balance Sheet |
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|
| |||
Class A common stock, subject to possible redemption ($) |
|
$ |
|
|
$ |
|
|
$ |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A common stock—$ |
|
$ |
|
|
$ |
( |
) |
|
$ |
— | | |
Class B common stock—$ |
|
|
|
|
|
— | |
|
|
| ||
Additional paid-in capital |
|
|
|
|
|
( |
) |
|
|
— | | |
Retained earnings (accumulated deficit) |
|
|
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|
|
( |
) | |
|
( |
) | |
|
|
|
|
|
|
|
|
|
|
|
| |
Total stockholders’ equity (deficit) |
|
$ |
|
|
$ |
( |
) | |
$ |
( |
) | |
|
|
|
|
|
|
|
|
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| |
Number of shares subject to redemption |
|
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| |||
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| |
Number of shares not subject to redemptio n |
|
|
|
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|
|
( |
) |
|
|
|
|
Statement of Operations for the three months ended March 31, 2021 |
|
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| |||
Weighted average redeemable Class A common stock outstanding (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income per Class A common share (1) |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Weighted average non-redeemable Class B common stock outstanding |
|
|
— |
|
|
|
|
|
|
|
|
|
Basic and diluted net income per Class B common share |
|
$ |
— |
|
|
$ |
|
|
|
$ |
|
|
Statement of Changes in Stockholders’ Equity (Deficit) for the three months ended March 31, 2021 (1) |
|
|
|
|
|
|
|
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|
|
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|
Common Stock, Class A—Share s |
|
|
|
|
|
|
( |
) |
|
|
— |
|
Statement of Cash Flows |
|
|
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|
|
|
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|
Initial value of common stock subject to possible redemptio n |
|
$ |
|
|
|
$ |
( |
) | |
$ |
— |
|
Change in value of common stock subject to possible redemption |
|
$ |
|
|
|
$ |
( |
) | |
$ |
— |
|
Financial Statements as of June 30, 2021 (per form 10-Q filed on August 16, 2021) |
|
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Balance Shee t |
|
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Class A common stock, subject to possible redemption ($ ) |
|
$ |
|
|
$ |
|
|
$ |
| |||
|
|
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|
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|
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Class A common stock—$ |
|
$ |
|
|
|
( |
) |
|
|
— | | |
Class B common stock—$ |
|
|
|
|
|
— | |
|
|
| ||
Additional paid-in |
|
|
|
|
|
( |
) |
|
|
— | | |
Accumulated deficit |
|
|
( |
) | |
|
( |
) | |
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
| |
Total stockholders’ equity (deficit) |
|
$ |
|
|
$ |
( |
) | |
$ |
( |
) | |
|
|
|
|
|
|
|
|
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| |
Number of shares subject to redemption |
|
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| |||
Number of shares not subject to redemptio n |
|
|
|
|
|
|
( |
) | |
|
|
|
Statement of Operations for the three months ended June 30, 2021 |
|
|
|
|
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|
|
|
| |||
Weighted average redeemable Class A common stock outstanding (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per Class A common share (1) |
|
$ |
( |
) | |
$ |
|
|
|
$ |
( |
) |
Weighted average non-redeemable Class B common stock outstanding |
|
|
— |
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per Class B common share |
|
$ |
— |
|
|
$ |
( |
) | |
$ |
( |
) |
As Reported |
Adjustment |
As |
||||||||||
Statement of Operations for the six months ended June 30, 2021 |
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Weighted average shares outstanding, Class A common stock subject to possible redemption |
|
|
|
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|
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|
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|
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|
Basic and diluted net loss per share |
|
$ |
( |
) |
|
$ |
|
|
|
$ |
( |
) |
Weighted average shares outstanding, non-redeemable common stock |
|
|
— |
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
|
$ |
— |
|
|
$ |
( |
) |
|
$ |
( |
) |
Statement of Changes in Stockholders’ Equity (Deficit) for the three months ended June 30, 2021(2) |
|
|
|
|
|
|
|
|
|
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|
Common Stock, Class A—Shares |
|
|
|
|
|
|
( |
) |
|
|
— |
|
Change in Class A common stock subject to possible redemption |
|
|
|
|
|
|
( |
) |
|
|
— | |
Statement of Changes in Stockholders’ Equity (Deficit) for the six months ended June 30, 2021 (2) |
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Common Stock, Class A—Shares |
( |
) |
— |
|||||||||
Statement of Cash Flows for the six months ended June 30, 2021 |
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Initial value of common stock subject to possible redemption |
$ |
$ |
( |
) |
$ |
— |
||||||
Change in value of common stock subject to possible redemption |
$ |
( |
) |
$ |
$ |
— |
(1) |
The previously issued financial statements did not distinguish between redeemable and non-redeemable shares in the EPS calculation |
(2) |
The changes to the Common stock, Additional Paid-in Capital, Accumulated Deficit and Total Stockholders’ Equity (Deficit) line items shown in the Balance Sheet are also included in the restatement to the Statement of Changes in Stockholders’ Equity (Deficit) |
For the Three Months ended September 30, 2021 |
For the Nine Months ended September 30, 2021 |
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Common stock subject to possible redemption |
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Numerator: |
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Net income allocable to Class A common stock subject to possible redemption |
$ | $ | ||||||
Denominator: |
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Weighted Average Redeemable Class A common stock, Basic and Diluted |
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|
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Basic and Diluted net income per share, Redeemable Class A common stock |
$ | $ | ||||||
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|
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Non-Redeemable Ordinary shares |
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Numerator: |
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Net income allocable to Class B common stock not subject to redemption |
$ | $ | ||||||
Denominator: |
||||||||
Weighted Average Non-Redeemable common stock, Basic and Diluted |
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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 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. |
September 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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Investment held in Trust Account |
$ | $ | $ | — | $ | — | ||||||||||
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|
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$ | $ | $ | — | $ | — | |||||||||||
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Liabilities: |
||||||||||||||||
Private Placement Warrants |
$ |
$ |
— | — | $ | |||||||||||
Public Warrants |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total Warrant Liability |
$ | $ | $ | $ | ||||||||||||
|
|
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|
|
|
|
|
March 5, 2021 (Initial Measurement) |
September 30, 2021 |
|||||||
Stock price |
$ | $ | ||||||
Strike price |
$ | $ | ||||||
Term (in years) |
||||||||
Volatility |
% | % | ||||||
Risk-free rate |
% | % | ||||||
Dividend yield |
% | % |
Public |
Private Placement |
Warrant Liabilities |
||||||||||
Fair value as of December 31, 2020 |
$ | — | $ | — | $ | — | ||||||
Initial measurement on March 1, 2021 |
||||||||||||
Change in valuation inputs or other assumptions |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Fair value as of March 31, 2021 |
$ | $ | $ | |||||||||
Change in valuation inputs or other assumptions |
||||||||||||
|
|
|
|
|
|
|||||||
Fair value as of June 30, 2021 |
$ | $ | $ | |||||||||
Change in valuation inputs or other assumptions |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Fair value as of September 30, 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. |
FLAME ACQUISITION CORP. | ||||||
Date: November 22, 2021 | By: | /s/ James C. Flores | ||||
Name: | James C. Flores | |||||
Title: | President and Chief Executive Officer (Principal Executive Officer) | |||||
Date: November 22, 2021 | By: | /s/ Gregory D. Patrinely | ||||
Name: | Gregory D. Patrinely | |||||
Title: | Chief Financial Officer and Secretary (Principal Accounting Officer and Principal Financial Officer) |