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.) | |
(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-fifth of one redeemable warrant |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page No. |
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1 | ||||||
Item 1. |
1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. |
18 | |||||
Item 3. |
23 | |||||
Item 4. |
23 | |||||
23 | ||||||
Item 1. |
23 | |||||
Item 1A. |
23 | |||||
Item 2. |
24 | |||||
Item 3. |
24 | |||||
Item 4. |
24 | |||||
Item 5. |
24 | |||||
Item 6. |
25 | |||||
26 |
Item 1. |
Condensed Financial Statements |
September 30, 2021 |
December 31, 2020 |
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(Unaudited) | ||||||||
Assets: |
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Current assets: |
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Cash |
$ | $ | — | |||||
Prepaid expenses |
||||||||
Total current assets |
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Investments held in Trust Account |
— | |||||||
Deferred offering costs associated with initial public offering |
— | |||||||
Total Assets |
$ |
$ |
||||||
Total Liabilities,- Shares Subject To Possible Redemption and Shareholders’ Equity (Deficit): |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued expenses |
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Note payable - related party |
— | |||||||
Total current liabilities |
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Deferred underwriting commissions |
— | |||||||
Derivative warrant liabilities |
— | |||||||
Total liabilities |
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Commitments and Contingencies |
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Class A ordinary shares subject to possible redemption; - |
— | |||||||
Shareholders’ Equity (Deficit): |
||||||||
Preference shares, $ |
— | |||||||
Class A ordinary shares, $ shares authorized; g |
— | — | ||||||
Class B ordinary shares, $ |
||||||||
Additional paid-in capital |
— | |||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total shareholders’ equity (deficit) |
( |
) | ||||||
Total Liabilities, Class A Ordinary Shares Subject To Possible Redemption and Shareholders’ Equity (Deficit) |
$ |
$ |
||||||
For the Three Months Ended September 30, 2021 |
For the Nine Months Ended September 30, 2021 |
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General and administrative expenses |
$ | $ | ||||||
Administrative expenses - related party |
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|
|
|
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Loss from operations |
( |
) | ( |
) | ||||
Other income (expenses) |
||||||||
Change in fair value of derivative warrant liabilities |
||||||||
Financing costs - derivative warrant liabilities |
— | ( |
) | |||||
Interest income from investments held in Trust Account |
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|
|
|
|
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Net income (loss) |
$ | $ | ( |
) | ||||
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|
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Weighted average number of Class A ordinary shares - basic and diluted |
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|
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Basic and diluted net income (loss) per share, Class A |
$ | $ | ( |
) | ||||
|
|
|
|
|||||
Weighted average number of Class B ordinary shares – basic and diluted |
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|
|
|
|
|||||
Basic and diluted net income (loss) per share, Class B |
$ | $ | ( |
) | ||||
|
|
|
|
Ordinary Shares |
Additional Paid-in Capital |
Total Shareholders’ Equity (Deficit) |
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Class A |
Class B |
Accumulated Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance - December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||
Excess of cash received over fair value of private placement warrants |
— | — | — | — | — | |||||||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance - March- 31, 2021 (unaudited) (restated) (1) |
( |
) |
( |
) | ||||||||||||||||||||||||
Forfeiture of Class B ordinary shares |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption |
— | — | — | — | ( |
) | — | |||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance - June 30, 2021 (unaudited) (restated) (1) |
( |
) |
( |
) | ||||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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|
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|
|
|
|
|
|
|
|
|
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Balance - September 30, 2021 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
|
|
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|
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(1) |
As restated due to the review of the treatment of public shares subject to redemption (See Note 2) |
Cash Flows from Operating Activities: |
||||
Net loss |
$ | ( |
) | |
Adjustments to reconcile net loss to net cash used in operating activities: |
||||
Interest income from investments held in Trust Account |
( |
) | ||
Financing costs - derivative warrant liabilities |
||||
Change in fair value of derivative warrant liabilities |
( |
) | ||
Changes in operating assets and liabilities: |
||||
Prepaid expenses |
( |
) | ||
Accounts payable |
||||
Accrued expenses |
||||
|
|
|||
Net cash used in operating activities |
( |
) | ||
|
|
|||
Cash Flows from Investing Activities: |
||||
Cash deposited in Trust Account |
( |
) | ||
|
|
|||
Net cash used in investing activities |
( |
) | ||
|
|
|||
Cash Flows from Financing Activities: |
||||
Repayment of note payable to related party |
( |
) | ||
Proceeds received from initial public offering, gross |
||||
Proceeds received from private placement |
||||
Offering costs paid |
( |
) | ||
|
|
|||
Net cash provided by financing -activities |
||||
|
|
|||
Net increase - in cash |
||||
Cash - beginning of the period |
||||
|
|
|||
Cash - end of the period |
$ |
|||
|
|
|||
Supplemental disclosure - of noncash investing and financing activities: |
||||
Offering costs included in accrued expenses |
$ | |||
Offering costs paid by related party under promissory note |
$ | |||
Reversal of accrued expenses |
$ | |||
Outstanding accounts payable balance paid by related party under note payable |
$ | |||
Deferred underwriting commissions |
$ |
As of March 11, 2021 |
As Reported, As Revised |
Adjustment |
As Restated |
|||||||||
Class A ordinary shares subject to redemption at $ |
$ |
$ |
$ |
|||||||||
Class A ordinary shares |
( |
) |
— |
|||||||||
Additional paid-in capital |
( |
) |
— |
|||||||||
Accumulated deficit |
( |
) |
( |
) |
( |
) | ||||||
Total shareholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Number of Class A ordinary shares subject to redemption |
||||||||||||
Number of Class A ordinary shares in permanent equity |
( |
) |
— |
As of March 31, 2021 |
As Previously Reported |
Adjustment |
As Restated |
|||||||||
Class A ordinary shares subject to redemption at $ |
$ |
$ |
$ |
|||||||||
Class A ordinary shares |
( |
) |
— |
|||||||||
Additional paid-in capital |
( |
) |
— |
|||||||||
Retained earnings (accumulated deficit) |
( |
) |
( |
) | ||||||||
Total shareholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Number of Class A ordinary shares subject to redemption |
||||||||||||
Number of Class A ordinary shares in permanent equity |
( |
) |
— |
Three Months Ended March 31, 2021 |
As Previously Reported |
Adjustment |
As Restated |
|||||||||
Sale of Shares in Initial Public Offering, Gross |
||||||||||||
Class A ordinary shares, par value $ |
$ |
$ |
( |
) |
$ |
— |
||||||
Additional paid-in capital |
$ |
$ |
( |
) |
$ |
— |
||||||
Total shareholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
— |
||||||
Offering Costs |
||||||||||||
Additional paid-in capital |
$ |
( |
) |
$ |
$ |
— |
||||||
Total shareholders’ equity (deficit) |
$ |
( |
) |
$ |
$ |
— |
||||||
Class A ordinary shares Subject to Possible Redemption |
||||||||||||
Class A ordinary shares, par value $ |
$ |
( |
) |
$ |
$ |
— |
||||||
Additional paid-in capital |
$ |
( |
) |
$ |
$ |
— |
||||||
Total shareholders’ equity (deficit) |
$ |
( |
) |
$ |
$ |
— |
||||||
Accretion of Class A ordinary shares to Redemption Amount |
||||||||||||
Additional paid-in capital |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||
Accumulated deficit |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||
Total shareholders’ equity (deficit) |
$ |
— |
$ |
( |
) |
$ |
( |
) |
Form 10-Q: three months ended March 31, 2021 |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Supplemental Disclosure of Noncash Financing Activities |
||||||||||||
Initial value of Class A ordinary shares subject to possible redemption |
$ |
$ |
( |
) |
$ |
— |
||||||
Change in value of Class A ordinary shares subject to possible redemption |
$ |
$ |
( |
) |
$ |
— |
As of June 30, 2021 |
As Previously Reported |
Adjustment |
As Restated |
|||||||||
Class A ordinary shares subject to redemption at $ |
$ |
$ |
$ |
|||||||||
Class A ordinary shares |
( |
) |
— |
|||||||||
Additional paid-in capital |
( |
) |
— |
|||||||||
Accumulated deficit |
( |
) |
( |
) |
( |
) | ||||||
Total shareholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Number of Class A ordinary shares subject to redemption |
||||||||||||
Number of Class A ordinary shares in permanent equity |
( |
) |
— |
Three Months Ended June 30, 2021 |
As Previously Reported |
Adjustment |
As Restated |
|||||||||
Class A ordinary shares Subject to Possible Redemption |
||||||||||||
Class A ordinary shares, par value $ |
$ |
$ |
( |
) |
$ |
— |
||||||
Additional paid-in capital |
$ |
$ |
( |
) |
$ |
— |
||||||
Total shareholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
— |
||||||
Accretion of Class A ordinary shares to Redemption Amount |
||||||||||||
Additional paid-in capital |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||
Accumulated deficit |
$ |
— |
$ |
$ |
Form 10-Q: six months ended June 30, 2021 |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Supplemental Disclosure of Noncash Financing Activities |
||||||||||||
Initial value of Class A ordinary shares subject to possible redemption |
$ |
$ |
( |
) |
$ |
— |
||||||
Change in value of Class A ordinary shares subject to possible redemption |
$ |
( |
) |
$ |
$ |
— |
EPS for Class A ordinary share (redeemable) |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Form 10-Q (March 31, 2021) - three months ended March 31, 2021 |
||||||||||||
Weighted average shares outstanding |
( |
) |
||||||||||
Basic and diluted earnings per share |
$ |
— |
$ |
$ |
||||||||
Form 10-Q (June 30, 2021) - three months ended June 30, 2021 |
||||||||||||
Weighted average shares outstanding |
||||||||||||
Basic and diluted earnings per share |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||
Form 10-Q (June 30, 2021) - six months ended June 30, 2021 |
||||||||||||
Weighted average shares outstanding |
( |
) |
||||||||||
Basic and diluted earnings per share |
$ |
— |
$ |
( |
) |
$ |
( |
) |
EPS for Class B ordinary share (non-redeemable) |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Form 10-Q (March 31, 2021) - three months ended March 31, 2021 |
||||||||||||
Weighted average shares outstanding - basic |
( |
) |
||||||||||
Weighted average shares outstanding - diluted |
||||||||||||
Basic and diluted earnings per share |
$ |
$ |
( |
) |
$ |
|||||||
Form 10-Q (June 30, 2021) - three months ended June 30, 2021 |
||||||||||||
Weighted average shares outstanding |
( |
) |
||||||||||
Basic and diluted earnings per share |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Form 10-Q (June 30, 2021) - six months ended June 30, 2021 |
||||||||||||
Weighted average shares outstanding |
( |
) |
||||||||||
Basic and diluted earnings per share |
$ |
( |
) |
$ |
$ |
( |
) |
• | 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. |
For the Three Months Ended |
For the Nine Months Ended |
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September 30, 2021 |
September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
|||||||||||||
Basic and diluted net income per ordinary share: |
||||||||||||||||
Numerator: |
||||||||||||||||
Allocation of net income (loss)- basic and diluted |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
Denominator: |
||||||||||||||||
Basic and diluted weighted average common shares outstanding |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income (loss) per ordinary share |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Diluted net income per ordinary share |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of 30 days’ prior written notice of redemption (the “30-day redemption period”); and |
• | if, and only if, the last reported sale price (the “closing price”) of Class A ordinary shares equals or exceeds $ |
• | in whole and not in part; |
• | at $ provided |
• | if, and only if, the closing price of Class A ordinary shares equals or exceeds $ 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders; and |
• | if the closing price of the Class A ordinary shares for any |
Gross proceeds |
$ | |
||
Less: |
||||
Proceeds allocated to public warrants |
( |
) | ||
Class A ordinary share issuance costs |
( |
) | ||
Plus: |
||||
Accretion of carrying value to redemption value |
||||
|
|
|||
Class A ordinary share subject to possible redemption |
$ | |||
|
|
Description |
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
|||||||||
Assets: |
||||||||||||
Investments held in Trust Account |
$ | |
$ | $ | |
|||||||
Liabilities: |
||||||||||||
Derivative warrant liabilities - Public |
$ | $ | $ | — | ||||||||
Derivative warrant liabilities - Private |
$ | $ | |
$ |
Level 3 - Derivative warrant liabilities at December 31, 2020 |
$ | |||
Issuance of derivative warrant liabilities |
( |
) | ||
Change in fair value of derivative warrant liabilities |
( |
) | ||
|
|
|||
Level 3 - Derivative warrant liabilities at March 31, 2021 |
( |
) | ||
Transfer of Public Warrants to Level 1 |
( |
) | ||
Transfer of Private Warrants to Level 2 |
( |
) | ||
|
|
|||
Level 3 - Derivative warrant liabilities at June 30, 2021 |
||||
Change in fair value of derivative warrant liabilities |
||||
|
|
|||
Level 3 - Derivative warrant liabilities at 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 from Registered Securities |
Item 3. |
Defaults Upon Senior Securities |
Item 4. |
Mine Safety Disclosures |
Item 5. |
Other Information |
Item 6. |
Exhibits. |
101.INS | Inline XBRL Instance Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
INDEPENDENCE HOLDINGS CORP. | ||||||
Date: November 22, 2021 | /s/ John Lawrence Furlong | |||||
Name: | John Lawrence Furlong | |||||
Title: | Chief Executive Officer | |||||
(Principal Executive Officer) | ||||||
Date: November 22, 2021 | /s/ Jaskaran Heir | |||||
Name: | Jaskaran Heir | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |