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) |
(Commission File Number) |
(IRS 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-third of one redeemable warrant |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page |
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Item 1. |
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3 |
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4 |
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5 |
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6 |
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7 |
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Item 2. |
23 |
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Item 3. |
27 |
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Item 4. |
27 |
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Item 1. |
29 |
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Item 1A. |
29 |
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Item 2. |
31 |
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Item 3. |
31 |
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Item 4. |
31 |
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Item 5. |
32 |
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Item 6. |
32 |
Item 1. |
Financial Statements (Unaudited) |
Assets |
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Current assets: |
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Cash |
$ | |||
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, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit: |
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Current liabilities: |
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Accounts payable |
$ | |||
Accrued expenses |
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Total current liabilities |
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Derivative warrant liabilities |
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Deferred underwriting commissions |
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Total liabilities |
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Commitments and Contingencies |
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Class A ordinary shares subject to possible redemption; $ |
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Shareholders’ Deficit |
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Preference shares, $ shares authorized; |
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Class A ordinary shares, $ |
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Class B ordinary shares, $ |
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Additional paid-in capital |
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Accumulated deficit |
( |
) | ||
Total shareholders’ deficit |
( |
) | ||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit |
$ |
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For the Three Months Ended September 30, 2021 |
For the period from January 13, 2021 (inception) through September 30, 2021 |
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General and administrative expenses |
$ | $ | ||||||
General and administrative expenses - related party |
||||||||
Loss from operations |
( |
) | ( |
) | ||||
Other income (expenses) |
||||||||
Change in fair value of derivative warrant liabilities |
||||||||
Offering costs - derivative warrant liabilities |
( |
) | ||||||
Income from investments held in Trust Account |
||||||||
Net income |
$ | $ | ||||||
Weighted average shares outstanding of Class A ordinary shares |
||||||||
Basic and diluted net income per share, Class A ordinary shares |
$ | $ | ||||||
Weighted average shares outstanding of Class B ordinary shares |
||||||||
Basic and diluted net income per share, Class B ordinary shares |
$ | $ | ||||||
Ordinary Shares |
Additional |
Total |
||||||||||||||||||||||||||
Class A |
Class B |
Paid-in |
Accumulated |
Shareholders’ |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Deficit |
||||||||||||||||||||||
Balance - January 13, 2021 (inception) |
$ |
$ |
$ |
$ |
$ |
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Issuance of Class B ordinary shares to Sponsor |
— | — | — | |||||||||||||||||||||||||
Excess cash received over the fair value of the private placement warrants |
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Accretion of Class A ordinary shares subject to possible redemption amount |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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|
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|
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Balance - March 31, 2021 (unaudited), as restated |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Excess cash received over the fair value of the private placement warrants |
— | — | — | — | — | |||||||||||||||||||||||
Forfei t ure of Class B ordinary shares |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption amount (over-allotment) |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance - June 30, 2021 (unaudited), as restated |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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|
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|
|
|
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Balance - September 30, 2021 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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Change in fair value of derivative warrant liabilities |
( |
) | ||
Offering costs - derivative warrant liabilities |
||||
General and administrative expenses paid by related party in exchange for issuance of Class B ordinary shares |
||||
Income from investments held in Trust Account |
( |
) | ||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||
Accounts payable |
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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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Cash deposited in Trust Account |
( |
) | ||
|
|
|||
Net cash used in investing activities |
( |
) | ||
|
|
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Cash Flows from Financing Activities: |
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Repayment of note payable to related party |
( |
) | ||
Proceeds received from initial public offering, gross |
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Proceeds received from private placement |
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Offering costs paid |
( |
) | ||
|
|
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Net cash provided by financing activities |
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|
|
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Net change in cash |
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Cash - beginning of the period |
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|
|
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Cash - end of the period |
$ |
|||
|
|
|||
Supplemental disclosure of noncash financing activities: |
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Offering costs included in accrued expenses |
$ | |||
Offering costs funded with note payable |
$ | |||
Prepaid expenses paid by related party under promissory note |
$ | |||
Deferred underwriting commissions |
$ |
As of March 12, 2021 |
As Reported |
Adjustment |
As Restated |
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Total assets |
$ |
$ |
||||||||||
|
|
|
|
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Total liabilities |
$ |
$ |
||||||||||
|
|
|
|
|||||||||
Class A ordinary shares subject to possible redemption |
||||||||||||
Preference shares |
||||||||||||
Class A ordinary shares |
( |
) |
||||||||||
Class B ordinary shares |
||||||||||||
Additional paid-in capital |
( |
) |
||||||||||
Retained earnings (accumulated deficit) |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Total shareholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
|
|
|
|
|
|
|||||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
As of March 31, 2021 |
As Reported |
Adjustment |
As Restated |
|||||||||
Total assets |
$ |
$ |
||||||||||
|
|
|
|
|||||||||
Total liabilities |
$ |
$ |
||||||||||
|
|
|
|
|||||||||
Class A ordinary shares subject to possible redemption |
||||||||||||
Preference shares |
||||||||||||
Class A ordinary shares |
( |
) |
||||||||||
Class B ordinary shares |
||||||||||||
Additional paid-in capital |
( |
) |
||||||||||
Retained earnings (accumulated deficit) |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Total shareholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
|
|
|
|
|
|
|||||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
Form 10-Q: For the Period from January 13, 2021 (Inception) Through March 31, 2021 |
||||||||||||
As Reported |
Adjustment |
As Restated |
||||||||||
Cash Flow Used In Operating Activities |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Cash Flows Used In Investing Activities |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Cash Flows Provided By Financing Activities |
$ |
$ |
$ |
|||||||||
Supplemental Disclosure of Noncash Financing Activities: |
||||||||||||
Offering costs included in accrued expenses |
$ |
$ |
$ |
|||||||||
Offering costs paid by related party under promissory note |
$ |
$ |
$ |
|||||||||
Reclassification of offering costs from liabilities to additional paid in capital |
$ |
$ |
$ |
|||||||||
Prepaid expenses paid by related party under promissory note |
$ |
$ |
$ |
|||||||||
Deferred underwriting commissions in connection with the initial public offering |
$ |
$ |
$ |
|||||||||
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 Reported |
Adjustment |
As Restated |
|||||||||
Total assets |
$ |
$ |
||||||||||
|
|
|
|
|||||||||
Total liabilities |
$ |
$ |
||||||||||
|
|
|
|
|||||||||
Class A ordinary shares subject to possible redemption |
||||||||||||
Preference shares |
||||||||||||
Class A ordinary shares |
( |
) |
||||||||||
Class B ordinary shares |
||||||||||||
Additional paid-in capital |
( |
) |
||||||||||
Retained earnings (accumulated deficit) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total shareholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
|
|
|
|
|
|
|||||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
Form 10-Q: For the Period from January 13, 2021 (Inception) Through June 30, 2021 |
||||||||||||
As Reported |
Adjustment |
As Restated |
||||||||||
Cash Flow Used In Operating Activities |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Cash Flows Used In Investing Activities |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Cash Flows Provided By Financing Activities |
$ |
$ |
$ |
|||||||||
Supplemental Disclosure of Noncash Financing Activities: |
||||||||||||
Offering costs included in accrued expenses |
$ |
$ |
$ |
|||||||||
Offering costs funded with note payable |
$ |
$ |
$ |
|||||||||
Prepaid expenses paid by related party under promissory note |
$ |
$ |
$ |
|||||||||
Deferred underwriting commissions in connection with the initial public offering |
$ |
$ |
$ |
|||||||||
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 shares |
||||||||||||
As Reported |
Adjustment |
As Adjusted |
||||||||||
Form 10-Q (March 31, 2021) - For the Period from January 13, 2021 (Inception) Through March 31, 2021 |
||||||||||||
Net loss |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Weighted average shares outstanding |
( |
) |
||||||||||
Basic and diluted loss per share |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Form 10-Q (June 30, 2021) - three months ended June 30, 2021 |
||||||||||||
Net income |
$ |
$ |
$ |
|||||||||
Weighted average shares outstanding |
||||||||||||
Basic and diluted earnings per share |
$ |
$ |
$ |
|||||||||
Form 10-Q (June 30, 2021) - For the Period from January 13, 2021 (Inception) Through June 30, 2021 |
||||||||||||
Net income |
$ |
$ |
$ |
|||||||||
Weighted average shares outstanding |
( |
) |
||||||||||
Basic and diluted earnings per share |
$ |
$ |
$ |
EPS for Class B ordinary shares |
||||||||||||
As Reported |
Adjustment |
As Adjusted |
||||||||||
Form 10-Q (March 31, 2021) - For the Period from January 13, 2021 (Inception) Through March 31, 2021 |
||||||||||||
Net loss |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Weighted average shares outstanding |
( |
) |
||||||||||
Basic and diluted earnings per share |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Form 10-Q (June 30, 2021) - three months ended June 30, 2021 |
||||||||||||
Net income |
$ |
$ |
$ |
|||||||||
Weighted average shares outstanding |
( |
) |
||||||||||
Basic and diluted earnings per share |
$ |
$ |
( |
) |
$ |
|||||||
Form 10-Q (June 30, 2021) - For the Period from January 13, 2021 (Inception) Through June 30, 2021 |
||||||||||||
Net income |
$ |
$ |
$ |
|||||||||
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 September 30, 2021 |
For the period from January 13, 2021 (inception) through September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
|||||||||||||
Basic and diluted net income (loss) per ordinary share: |
||||||||||||||||
Numerator: |
||||||||||||||||
Allocation of net income (loss) |
$ | $ | $ | $ | |
|||||||||||
Denominator: |
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Basic and diluted weighted average ordinary shares outstanding |
||||||||||||||||
Basic and diluted net income (loss) per ordinary share |
$ | $ | $ | $ | ||||||||||||
Gross proceeds |
$ | |
||
Less: |
||||
Fair value of Public Warrants at issuance |
( |
) | ||
Offering costs allocated to Class A ordinary shares subject to possible redemption |
( |
) | ||
Plus: |
||||
Accretion on Class A ordinary shares subject to possible redemption amount |
||||
Class A ordinary shares subject to possible redemption |
$ | |||
• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of |
• | 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 a price of $ |
• | upon a minimum of |
• | if, and only if, the closing price of Class A ordinary shares equals or exceeds $ |
• | if the closing price of the Class A ordinary shares for any |
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 - U.S. Treasury securities |
$ | |
$ | — | $ | — | ||||||
Liabilities: |
||||||||||||
Derivative warrant liabilities - Public warrants |
$ | $ | — | $ | — | |||||||
Derivative warrant liabilities - Private placement warrants |
$ | — | $ | |
$ | — |
Initial Fair Value |
Over-Allotment |
|||||||
Exercise price |
$ | |
$ | |
||||
Share price |
$ | $ | ||||||
Volatility |
% | % | ||||||
Term |
||||||||
Risk-free rate |
% | % |
Level 3 - Derivative warrant liabilities at January 13, 2021 (inception) |
$ | |||
Issuance of Public Warrants |
||||
Issuance of Private Placement Warrants |
||||
Change in fair value of derivative warrant liabilities |
( |
) | ||
|
|
|||
Level 3 - Derivative warrant liabilities at March 31, 2021 |
||||
Issuance of Public Warrants - over-allotment |
||||
Issuance of Private Placement Warrants - over-allotment |
||||
Transfer of Public Warrants to Level 1 |
( |
) | ||
Transfer of Private Placement Warrants to Level 2 |
( |
) | ||
|
|
|||
Level 3 - Derivative warrant liabilities at June 30, 2021 |
$ | |||
|
|
|||
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. |
Item 3. |
Defaults upon Senior Securities |
Item 4. |
Mine Safety Disclosures. |
Item 5. |
Other Information. |
Item 6. |
Exhibits. |
* | 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. |
Dated: November 18, 2021 | ESM ACQUISITION CORPORATION | |||||
By: | /s/ Sir Michael Davis | |||||
Name: | Sir Michael Davis | |||||
Title: | Chief Executive Officer (Principal Executive Officer) | |||||
By: | /s/ Jeffrey A. Ball | |||||
Name: | Jeffrey A. Ball | |||||
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |