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-sixth of one redeemable Warrant |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
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23 |
Item 1. |
Financial Information |
June 30, 2022 |
December 31, 2021 |
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(Unaudited) |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
$ | $ | ||||||
Prepaid expenses |
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Total Current Assets |
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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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Accrued expenses |
$ | $ | ||||||
Income taxes payable |
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Total Current Liabilities |
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Deferred underwriting fee payable |
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Warrant liability |
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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, app roximately $ |
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Stockholders’ Deficit |
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Preferred stock, $ |
— | |||||||
Class A common stock, $ |
— | |||||||
Class B common stock, $ |
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Additional paid-in capital |
— | |||||||
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 June 30, |
Six Months Ended June 30, |
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2022 |
2021 |
2022 |
2021 |
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Formation and operational costs |
$ | $ | $ | $ | ||||||||||||
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Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Other income (expense): |
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Change in fair value of warrant liability |
( |
) | ( |
) | ||||||||||||
Interest income – cash equivalents |
— | — | ||||||||||||||
Interest earned on investments held in Trust Account |
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Other income (expense), net |
( |
) | ( |
) | ||||||||||||
Income (Loss) before provision for income taxes |
( |
) | ( |
) | ||||||||||||
Provision for income taxes |
( |
) | — | ( |
) | — | ||||||||||
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Net income (loss) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
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Weighted average shares outstanding, Class A common stock |
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Basic and diluted earnings (loss) per share, Class A common stock |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
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Weighted average shares outstanding of Class B common stock |
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Basic and diluted earnings (loss) per share, Class B common stock |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
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Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance – January 1, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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Balance – March 31, 2022 |
( |
) |
( |
) | ||||||||||||||||||||||||
Accretion for Class A Common Stock Subject to Redemption |
( |
) |
( |
) | ||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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Balance – June 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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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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Accretion of Class A common stock to redemption amount |
— |
— |
— |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Cash paid in excess of fair value for Private Placement Warrants |
— |
— |
— |
— |
— |
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Net income |
— |
— |
— |
— |
— |
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Balance – March 31, 2021 |
( |
) |
( |
) | ||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||||
Balance – June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Six Months Ended June 30, |
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2022 |
2021 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
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Net income (loss) |
$ | $ | ( |
) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
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Change in fair value of warrant liability |
( |
) | ||||||
Transaction costs related to warrant liability |
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Interest earned on investment held in Trust Account |
( |
) | ( |
) | ||||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ( |
) | ||||
Accrued expenses |
( |
) | ||||||
Income taxes payable |
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Net cash flows used in operating activities |
( |
) |
( |
) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES |
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Investment of cash in Trust Account |
( |
) | ||||||
Net cash flows used in financing 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 Placement Warrants |
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Repayment of promissory note – related party |
( |
) | ||||||
Payment of offering costs |
( |
) | ||||||
Net cash flows 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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Non-Cash investing and financing activities: |
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Offering costs paid through promissory note |
$ | $ | ||||||
Deferred underwriting fee payable |
$ | $ | ||||||
Gross proceeds |
$ | |||
Less: |
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Proceeds allocated to Public Warrants |
( |
) | ||
Class A common stock issuance costs |
( |
) | ||
Plus: |
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Accretion of carrying value to redemption value |
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Class A common stock subject to possible redemption, December 31, 2021 |
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Plus: |
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Accretion of carrying value to redemption value |
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Class A common stock subject to possible redemption, June 30, 2022 |
$ | |||
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|
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2022 |
Six Months Ended June 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income (loss) per common share |
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Numerator: |
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Allocation of net income (loss), as adjusted |
$ | $ | $ | ( |
) | $ |
( |
) | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||||||
Denominator: |
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Basic and diluted weighted average shares outstanding |
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Basic and diluted net income (loss) per common share |
$ | $ | $ | ( |
) | $ |
( |
) | $ | $ | $ | ( |
) | $ | ( |
) |
• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of |
• | if, and only if, the closing price of the Class A common stock for any |
• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of |
• | if, and only if, the Reference Value (as defined above) equals or exceeds $ |
• | if the Reference Value is less than $ |
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. |
Description |
Level |
June 30, 2022 |
Level |
December 31, 2021 |
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Assets: |
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Investments held in Trust Account |
1 | $ | |
1 |
|
|
$ | |||||||||
Liabilities: |
|
|
|
|
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Warrant Liability - Public Warrants |
2 |
$ | |
1 |
|
|
$ | |||||||||
Warrant Liability - Private Placement Warrants |
3 | $ | |
3 |
|
|
$ |
Input: |
June 30, 2022 |
December 31, 2021 |
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Private Warrants |
Private Warrants |
|||||||
IPO Price (per unit) |
$ | $ | ||||||
Underlying Asset Price (per share) |
$ | $ | ||||||
Strike Price |
$ | $ | ||||||
Time to Maturity (in years) |
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Risk Free Interest Rate |
% | % | ||||||
Concluded Volatility for Black-Scholes-Merton Model |
% | % |
Private Placement Warrants |
Public Warrants |
Warrant Liabilities |
||||||||||
Fair value as of January 1, 2021 |
$ | $ | $ | |||||||||
Initial measurement on March 4, 2021 |
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Change in fair value |
( |
) | ( |
) | ( |
) | ||||||
Transfers to Level 1 on April 23, 2021 |
( |
) | ( |
) | ||||||||
Fair value as of December 31, 2021 |
||||||||||||
Change in fair value |
( |
) | ( |
) | ||||||||
Fair value as of June 30, 2022 |
$ |
$ |
$ |
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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 herewith. |
ADVANCED MERGER PARTNERS, INC. | ||||||
Date: August 15, 2022 | By: | /s/ Roy J. Katzovicz | ||||
Name: | Roy J. Katzovicz | |||||
Title: | Chief Executive Officer | |||||
(Principal Executive Officer) | ||||||
Date: August 15, 2022 | By: | /s/ Stephen Katchur | ||||
Name: | Stephen Katchur | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |