|
|
|
(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
|
||
|
|
|
||
|
|
|
||
|
|
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐ | |
|
☒ |
Smaller reporting company
|
||
Emerging growth company
|
|
|
Page
|
Part I. Interim Financial Information
|
|
|
|
Item 1. Financial Statements
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
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16
|
|
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19
|
|
|
19
|
|
Part II. Other Information
|
|
|
|
19
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|
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19
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|
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19
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|
|
20
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|
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20
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|
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20
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|
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20
|
|
21
|
Item 1. |
Interim Financial Statements.
|
March 31,
2022
|
December 31,
2021
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
Current assets
|
||||||||
Cash
|
$
|
|
$
|
|
||||
Prepaid expenses
|
|
|
||||||
Total Current Assets
|
|
|
||||||
Cash and marketable securities held in trust account
|
|
|
||||||
TOTAL ASSETS
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
||||||||
Current liabilities
|
||||||||
Accounts payable and accrued expenses
|
$
|
|
$
|
|
||||
Convertible promissory note - related party
|
||||||||
Total Current Liabilities
|
|
|
||||||
Deferred underwriting fee payable
|
|
|
||||||
Warrant liabilities
|
|
|
||||||
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 Months
Ended
March 31,
|
Three months
Ended
March 31,
|
||||||
|
2022
|
2021
|
||||||
|
||||||||
General and administrative expenses
|
$
|
|
$
|
|
||||
Loss from operations
|
(
|
)
|
(
|
)
|
||||
|
||||||||
Other income:
|
||||||||
Change in fair value of warrant liabilities
|
|
|
||||||
Interest earned on investments held in Trust Account
|
|
|
||||||
Total other income
|
|
|
||||||
|
||||||||
Net income
|
$
|
|
$
|
|
||||
|
||||||||
Weighted average shares outstanding, Class A common stock
|
|
|
||||||
Basic and diluted net income per share, Class A common stock
|
$
|
|
$
|
|
||||
|
||||||||
Weighted average shares outstanding, Class B common stock
|
|
|
||||||
Basic and diluted net income per share, Class B common stock
|
$
|
|
$
|
|
|
Class A
Common Stock
|
Class B
Common Stock
|
Additional
Paid-in
|
Accumulated
|
Total Stockholders’
|
|||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
Capital | Deficit | Deficit | |||||||||||||||||||||
Balance – January 1, 2022
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||||||
|
||||||||||||||||||||||||||||
Net income
|
—
|
|
—
|
|
|
|
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Balance – March 31, 2022
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Class A
Common Stock
|
Class B
Common Stock
|
Additional
Paid-in
|
Accumulated
|
Total Stockholders’
Equity
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital | Deficit | (Deficit) | ||||||||||||||||||||||
Balance – January 1, 2021
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||||||||
Accretion of Class A common Stock Subject to Redemption
|
— |
—
|
—
|
—
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||||||||||||
Cash paid in excess of fair value of
|
—
|
—
|
—
|
—
|
|
|
|
|||||||||||||||||||||
Net income
|
— | — |
||||||||||||||||||||||||||
Balance – March 31, 2021
|
|
$ |
|
|
$ |
|
$ |
|
$ |
(
|
)
|
$ |
(
|
)
|
|
For the Three
Months Ended
March 31, 2022
|
For the Three
Months Ended
March 31, 2021
|
||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||
Interest earned on marketable securities held in Trust Account
|
(
|
)
|
(
|
)
|
||||
Change in fair value of warrant liabilities
|
(
|
)
|
(
|
)
|
||||
Transaction costs allocable to warrant liabilities
|
|
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Prepaid expenses
|
|
(
|
)
|
|||||
Accrued expenses
|
(
|
)
|
|
|||||
Net cash used in operating activities
|
(
|
)
|
(
|
)
|
||||
|
||||||||
Cash Flows from Investing Activities:
|
||||||||
Investment of cash in Trust Account
|
|
(
|
)
|
|||||
Cash withdrawn from Trust Account for payment of franchise tax obligations
|
|
|
||||||
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 Warrants
|
|
|
||||||
Proceeds from promissory note – related party
|
|
|
||||||
Repayment of promissory note – related party
|
|
(
|
)
|
|||||
Proceeds from convertible promissory note - related party
|
|
|
||||||
Payment of offering costs
|
|
(
|
)
|
|||||
Net cash provided by financing activities
|
|
|
||||||
|
||||||||
Net Change in Cash
|
(
|
)
|
|
|||||
Cash – Beginning
|
|
|
||||||
Cash – Ending
|
$
|
|
$
|
|
||||
|
||||||||
Non-cash investing and financing activities:
|
||||||||
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
|
$
|
|
For the Three Months Ended
March 31, 2022
|
For the Three Months Ended
March 31, 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 shares outstanding
|
||||||||||||||||
Basic and diluted net income per common share
|
$
|
|
$
|
|
$ |
$ |
• |
in whole and not in part;
|
• |
at a price of $
|
• |
upon not less than
|
• |
if, and only if, the closing
price of the 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.
|
Description
|
Level
|
December 31, 2021 |
March 31,
2022
|
|||||||||
Assets:
|
||||||||||||
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund
|
1
|
$
|
|
$ |
||||||||
Liabilities:
|
||||||||||||
Warrant Liabilities – Public Warrants
|
1
|
$ |
|
$ |
|
|||||||
Warrant Liabilities – Private Placement Warrants
|
3
|
$ |
|
$ |
|
Input
|
March 31,
2022
|
December 31, 2021
|
||||||
Market price of public shares
|
$
|
|
$
|
|
||||
Risk-free rate
|
|
%
|
|
%
|
||||
Dividend yield
|
|
%
|
|
%
|
||||
Exercise price
|
$
|
|
$
|
|
||||
Volatility
|
|
%
|
|
%
|
||||
Term to Expiration (years)
|
|
|
|
Private Placement
|
Public
|
Warrant Liabilities
|
|||||||||
Fair value as of January 1, 2022
|
$
|
|
$
|
|
$
|
|
||||||
Change in fair value
|
(
|
)
|
|
(
|
)
|
|||||||
Fair value as of March 31, 2022
|
$
|
|
$
|
|
$ |
|
Private Placement
|
Public
|
Warrant Liabilities
|
|||||||||
Fair value as of January 1, 2021
|
$
|
|
$
|
|
$
|
|
||||||
Initial measurement on March 4, 2021
|
|
|
|
|||||||||
Change in valuation inputs or other assumptions
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
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
|
No.
|
Description of Exhibit
|
|
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
101.INS*
|
XBRL Instance Document
|
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB*
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
* |
Filed herewith.
|
ARROWROOT ACQUISITION CORP.
|
||
Date: May 16, 2022
|
By:
|
/s/ Matthew Safaii
|
Name:
|
Matthew Safaii
|
|
Title:
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
||
Date: May 16, 2022
|
By:
|
/s/ Thomas Olivier
|
Name:
|
Thomas Olivier
|
|
Title:
|
Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|