QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification Number)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Large accelerated filer ☐
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Accelerated filer ☐
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Smaller reporting company
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Emerging growth company
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Page
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1
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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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19 | |
22 |
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22 |
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22 |
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23 | |
23 | |
23 | |
23 | |
23 | |
24 |
September 30,
2021
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December 31,
2020
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|||||||
(unaudited)
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(audited)
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|||||||
Assets:
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||||||||
Current assets:
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||||||||
Cash
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$
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$
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||||
Prepaid Expenses
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|
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||||||
Total current assets
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||||||
Deferred offering costs
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||||||
Cash and securities held in Trust Account
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Other non-current assets
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||||||||
Total Assets
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$
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$
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||||
Liabilities and Stockholders’ Equity
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||||||||
Current liabilities:
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||||||||
Accrued offering costs and expenses
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$
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$
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||||
Due to related party
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|
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||||||
Total current liabilities
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|
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||||||
Deferred underwriting fee
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|
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||||||
Warrant liability
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||||||
Total liabilities
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||||||
Commitments and Contingencies (See Note 6) | ||||||||
Class A Common Stock subject to possible redemption,
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||||||
Stockholders’ Equity:
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||||||||
Preferred stock, $
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||||||
Class A common stock, $
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|
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||||||
Class B common stock, $
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|
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||||||
Class L common stock, $
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||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings (accumulated deficit)
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(
|
)
|
(
|
)
|
||||
Total stockholders’ equity
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(
|
)
|
|
|||||
Total Liabilities and Stockholders’ Equity
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$
|
|
$
|
|
For the three
months ended
September 30, 2021
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For the nine
months ended
September 30, 2021
|
|||||||
Formation and operating costs
|
$
|
|
$
|
|
||||
Loss from Operations
|
(
|
)
|
(
|
)
|
||||
Other income (loss):
|
||||||||
Interest earned on cash and marketable securities held in Trust Account
|
|
|
||||||
Offering costs allocated to warrants
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|
(
|
)
|
|||||
Excess
fair value of private warrants in excess of proceeds received |
( |
) | ( |
) | ||||
Change in fair value of warrant liability
|
|
|
||||||
Total other income (loss)
|
|
|
||||||
Net income
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$
|
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$
|
|
||||
Weighted average shares outstanding, Class A common stock subject to possible redemption
|
|
|
||||||
Basic and diluted net income per share, Class A common stock subject to possible redemption
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$
|
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$
|
|
||||
Weighted average shares outstanding, Non-redeemable Class B and Class L common stock
|
|
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||||||
Basic and diluted net income per share, Non-redeemable Class B and Class L common stock
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$
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|
$
|
|
Class A
Common stock
|
Class B
Common stock
|
Class L
Common stock
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Additional
Paid-in
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Retained
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Total
Stockholder’s
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|||||||||||||||||||||||||||||||
Shares
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Amount
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Shares
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Amount
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Shares
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Amount
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Capital
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Earnings
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Equity (Deficit)
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||||||||||||||||||||||||||||
Balance as of January 1,
2021
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$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||||||||||||||
Net income (As Restated)
|
— |
— |
— |
|||||||||||||||||||||||||||||||||
Accretion of Class A common stock subject to possible redemption
|
— |
— |
— |
— |
— |
— |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Balance as of March 31,
2021 (unaudited)
|
$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||||||||||||||||
Net loss (As Restated)
|
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||||||||||||
Accretion of Class A
common stock subject
to possible redemption
|
— |
— |
— |
— |
— |
— |
( |
) | ( |
) | ||||||||||||||||||||||||||
Balance as of June 30,
2021 (unaudited)
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$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||||||||||||||||
Net income |
— |
— |
— |
|||||||||||||||||||||||||||||||||
Accretion of Class A common stock subject to possible redemption
|
— |
— |
— |
— |
— |
— |
( |
) | ( |
) | ||||||||||||||||||||||||||
Balance as of September 30, 2021 (unaudited)
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$ | $ | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||||||||||||||||
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
|
(
|
)
|
||
Offering costs allocated to warrants
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|
|||
Excess fair value of private warrants in excess of proceeds received
|
|
|||
Change in fair value of warrant liability
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(
|
)
|
||
Changes in operating assets and liabilities:
|
||||
Prepaid expenses
|
(
|
)
|
||
Other non-current assets
|
( |
) | ||
Accrued expenses
|
|
|||
Net cash used in operating activities
|
(
|
)
|
||
Cash Flows from Investing Activities:
|
||||
Investment of cash in Trust Account
|
(
|
)
|
||
Net cash used in investing activities
|
(
|
)
|
||
Cash Flows from Financing Activities:
|
||||
Proceeds from sale of Units, net of underwriting 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
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(
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)
|
||
Payment of offering costs
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(
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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 the period
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$
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||
Supplemental disclosure of non-cash financing activities:
|
||||
Initial classification of common stock subject to possible redemption
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$
|
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||
Accretion of common stock subject to possible redemption | $ | |||
Initial classification of warrant liability
|
$
|
|
||
Deferred underwriters’ discount payable charged to accumulated deficit
|
$
|
|
As Previously
Reported
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Adjustment
|
As Restated | ||||||||||
Balance Sheet as of February 23, 2021 (per form 8-K/A filed on June 4, 2021) | ||||||||||||
Class A common stock subject to possible redemption
|
$
|
|
$
|
|
$
|
|
||||||
Shareholders’ equity (deficit):
|
||||||||||||
Class A common stock, $
|
|
(
|
)
|
|
||||||||
Additional paid-in capital
|
|
(
|
)
|
|
||||||||
Retained Earnings (Accumulated Deficit)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Total shareholders’ equity (deficit)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Shares subject to possible redemption
|
|
|
|
Balance Sheet as of March 31, 2021 (per form 10-Q filed on May 24, 2021) | ||||||||||||
Accrued offering costs and expenses
|
$
|
|
$
|
|
$
|
|
||||||
Total current liabilities
|
|
|
|
|||||||||
Total liabilities
|
|
|
|
|||||||||
Class A common stock subject to possible redemption
|
|
|
|
|||||||||
Shareholders’ equity (deficit):
|
||||||||||||
Class A common stock, $
|
|
(
|
)
|
|
||||||||
Additional paid-in capital
|
|
(
|
)
|
|
||||||||
Retained Earnings (Accumulated Deficit)
|
|
(
|
)
|
(
|
)
|
|||||||
Total shareholders’ equity (deficit)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Shares subject to possible redemption
|
|
|
|
Balance Sheet as of June 30, 2021 (per form 10-Q filed on August 13, 2021) | ||||||||||||
Accrued offering costs and expenses
|
$
|
|
$
|
|
$
|
|
||||||
Total current liabilities
|
|
|
|
|||||||||
Total liabilities
|
|
|
|
|||||||||
Class A common stock subject to possible redemption
|
$
|
|
$
|
|
$
|
|
||||||
Shareholders’ equity (deficit):
|
||||||||||||
Class A common stock, $
|
|
(
|
)
|
|
||||||||
Additional paid-in capital
|
|
(
|
)
|
|
||||||||
Retained Earnings (Accumulated Deficit)
|
|
(
|
)
|
(
|
)
|
|||||||
Total shareholders’ equity (deficit)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Shares subject to possible redemption
|
|
|
|
As Previously
Reported
|
Adjustment | As Restated | ||||||||||
Statement of Changes in Stockholders’ Equity (Deficit) for the three months ended March 31, 2021 (per form 10-Q filed on May 24, 2021) | ||||||||||||
|
||||||||||||
Sale of
|
|
|||||||||||
Class A Common stock - Shares
|
( |
) | ||||||||||
Class A Common stock - Amount
|
$ | $ | ( |
) | $ | |||||||
Additional Paid-in-Capital
|
$ | $ | ( |
) | $ | |||||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | |||||||
Sale of
|
||||||||||||
Additional Paid-in-Capital
|
$ | $ | ( |
) | $ | |||||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | |||||||
Initial classification of warrant liability
|
||||||||||||
Additional Paid-in-Capital
|
$ | ( |
) | $ | $ | |||||||
Total Stockholders' Equity
|
$ | ( |
) | $ | $ | |||||||
Net income
|
||||||||||||
Retained earnings
|
$ | $ | ( |
) | $ | |||||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | |||||||
Class A common stock subject to possible redemption
|
||||||||||||
Class A Common stock - Shares
|
( |
) | ||||||||||
Class A Common stock - Amount
|
$ | ( |
) | $ | $ | |||||||
Additional Paid-in-Capital
|
$ | ( |
) | $ | $ | |||||||
Total Stockholders' Equity
|
$ | ( |
) | $ | $ | |||||||
Accretion of Class A common stock subject to possible redemption
|
||||||||||||
Additional Paid-in-Capital
|
$ | $ | ( |
) | $ | ( |
) | |||||
Retained Earnings
|
$ | $ | ( |
) | $ | ( |
) | |||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | ( |
) |
Statement of Changes in Stockholders’ Equity (Deficit) for the three and six months ended June 30, 2021 (per form 10-Q filed on August 13, 2021) | ||||||||||||
Period from January 1, 2021 to March 31, 2021 |
||||||||||||
Sale of
|
|
|||||||||||
Class A Common stock - Shares
|
( |
) | ||||||||||
Class A Common stock - Amount
|
$ | $ | ( |
) | $ | |||||||
Additional Paid-in-Capital
|
$ | $ | ( |
) | $ | |||||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | |||||||
Sale of
|
||||||||||||
Additional Paid-in-Capital
|
$ | $ | ( |
) | $ | |||||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | |||||||
Initial classification of warrant liability
|
||||||||||||
Additional Paid-in-Capital
|
$ | ( |
) | $ | ||||||||
Total Stockholders' Equity
|
$ | ( |
) | $ | $ | |||||||
Net income
|
||||||||||||
Retained earnings
|
$ | $ | ( |
) | $ | |||||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | |||||||
Class A common stock subject to possible redemption
|
||||||||||||
Class A Common stock - Shares
|
( |
) | ||||||||||
Class A Common stock - Amount
|
$ | ( |
) | $ | $ | |||||||
Additional Paid-in-Capital
|
$ | ( |
) | $ | $ | |||||||
Total Stockholders' Equity
|
$ | ( |
) | $ | $ | |||||||
Accretion of Class A common stock subject to possible redemption
|
||||||||||||
Additional Paid-in-Capital
|
$ | $ | ( |
) | $ | ( |
) | |||||
Retained Earnings
|
$ | $ | ( |
) | $ | ( |
) | |||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | ( |
) | |||||
Period from April 1, 2021 to June 30, 2021 |
||||||||||||
Net loss
|
||||||||||||
Retained earnings
|
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Total Stockholders' Equity
|
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Change in Class A common stock subject to possible redemption
|
||||||||||||
Class A Common stock - Shares
|
( |
) | ||||||||||
Class A Common stock - Amount
|
$ | $ | ( |
) | $ | |||||||
Additional Paid-in-Capital
|
$ | $ | ( |
) | $ | |||||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | |||||||
Accretion of Class A common stock subject to possible redemption
|
||||||||||||
Retained Earnings
|
$ | $ | ( |
) | $ | ( |
) | |||||
Total Stockholders' Equity
|
$ | $ | ( |
) | $ | ( |
) |
As Previously
Reported
|
Adjustment | As Restated | ||||||||||
Statement of Operations for the three months ended March 31, 2021 (per form 10-Q filed on May 24, 2021) | ||||||||||||
Formation and operating costs
|
$
|
|
$
|
|
$
|
|
||||||
Loss from operations
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net income
|
|
(
|
)
|
|
||||||||
Weighted average shares outstanding, Redeemable Class A common stock
|
|
(
|
)
|
|
||||||||
Basic and diluted net income per share, Redeemable Class A common stock
|
$
|
|
$
|
|
$
|
|
||||||
Weighted average shares outstanding, Non-redeemable common stock
|
|
(
|
)
|
|
||||||||
Basic and diluted net loss per shares, Non-redeemable common stock
|
$
|
|
$
|
(
|
)
|
$
|
|
Statement of Operations for the three months ended June 30, 2021 (per form 10-Q filed on August 13, 2021) | ||||||||||||
Formation and operating costs
|
$
|
|
$
|
|
$
|
|
||||||
Loss from operations
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net loss
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Weighted average shares outstanding, Redeemable Class A common stock
|
|
|
|
|||||||||
Basic and diluted net income per share, Redeemable Class A common stock
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||
Weighted average shares outstanding, Non-redeemable common stock
|
|
(
|
)
|
|
||||||||
Basic and diluted net loss per shares, Non-redeemable common stock
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
Statement of Operations for the six months ended June 30, 2021 (per form 10-Q filed on August 13, 2021) | ||||||||||||
Formation and operating costs
|
$
|
|
$
|
|
$
|
|
||||||
Loss from operations
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Net income
|
|
(
|
)
|
|
||||||||
Weighted average shares outstanding, Redeemable Class A common stock
|
|
(
|
)
|
|
||||||||
Basic and diluted net income per share, Redeemable Class A common stock
|
$
|
|
$
|
|
$
|
|
||||||
Weighted average shares outstanding, Non-redeemable common stock
|
|
(
|
)
|
|
||||||||
Basic and diluted net loss per shares, Non-redeemable common stock
|
$
|
|
$
|
(
|
)
|
$
|
|
Statement of Cash Flows for the three months ended March 31, 2021 (per form 10-Q filed on May 24, 2021) | ||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Change in operating assets and liabilities:
|
||||||||||||
Accrued expenses
|
|
|
|
|||||||||
Supplemental disclosure of non-cash financing activities:
|
||||||||||||
Initial classification of common stock subject to possible redemption
|
$
|
|
$
|
|
$
|
|
Statement of Cash Flows for the six months ended June 30, 2021 (per form 10-Q filed on August 13, 2021) | ||||||||||||
Cash flows from operating activities:
|
||||||||||||
Net income
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Change in operating assets and liabilities:
|
||||||||||||
Accrued expenses
|
|
|
|
|||||||||
Supplemental disclosure of non-cash financing activities:
|
||||||||||||
Initial classification of common stock subject to possible redemption
|
$
|
|
$
|
|
$
|
|
||||||
Change in common stock subject to possible redemption
|
(
|
)
|
|
|
Three Months Ended September 30, 2021
|
Nine Months Ended September 30, 2021
|
|||||||
Redeemable Class A Common Stock
|
||||||||
Net income allocable to Class A Common Stock
|
$
|
|
$
|
|
||||
Basic and diluted weighted average shares outstanding, Class A common stock
|
|
|
||||||
Basic and diluted net income per common share
|
$
|
|
$
|
|
||||
Non-Redeemable Class B and Class L Common Stock
|
||||||||
Net income allocable to Non-Redeemable Stock
|
$
|
|
$
|
|
||||
Denominator: Weighted Average Non-Redeemable stock
|
||||||||
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 last reported sale price of the Class A common stock for any
|
● |
in whole and not in part;
|
● |
at $
|
● |
if, and
only if, the Reference Value equals or exceeds $
|
● |
if the
Reference Value is less than $
|
Level 1 —
|
Valuations based on unadjusted quoted prices in active markets for
identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an
active market, valuation of these securities does not entail a significant degree of judgment.
|
Level 2 —
|
Valuations based on (i) quoted prices in active markets for similar
assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or
corroborated by market through correlation or other means.
|
Level 3 —
|
Valuations based on inputs that are unobservable and significant to
the overall fair value measurement.
|
September 30,
|
Quoted
Prices In
Active
Markets
|
Significant
Other
Observable
Inputs
|
Significant
Other
Unobservable
Inputs
|
|||||||||||||
2021
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Liabilities:
|
||||||||||||||||
Public Warrants Liability
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Private Placement Warrants Liability
|
|
|
|
|
||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
Inputs
|
(Initial
Measurement)
February 23, 2021
|
|||
Risk-free interest rate
|
|
%
|
||
Expected term remaining (years)
|
|
|||
Expected term until Merger (years)
|
|
|||
Estimated probability of successful Merger
|
|
%
|
||
Expected volatility Pre-Merger
|
|
%
|
||
Expected volatility Post-Merger
|
|
%
|
||
Implied Stock price
|
$
|
|
||
Exercise price
|
$
|
|
Carrying
Value as of
September 30, 2021
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
as of
September 30,
2021
|
|||||||||||||
U.S. Treasury Securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
|
$
|
|
$
|
|
$
|
|
$
|
|
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.
|
Exhibit
Number
|
Description
|
|
Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302
of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Chief Executive Officer (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 Chief Financial Officer (Principal Financial and Accounting 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 Label Linkbase Document
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed herewith.
|
**
|
These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
|
By:
|
/s/ Thomas J. Milani
|
||
Name:
|
Thomas J. Milani
|
||
Title:
|
Chief Financial Officer
|
||
Dated: November 22, 2021
|