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) |
(Commission File Number) |
(I.R.S. Employer Identification Number) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
and one-third of one redeemable warrant |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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1 | ||||||
Item 1. |
1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. |
23 | |||||
Item 3. |
28 | |||||
Item 4. |
29 | |||||
Item 1. |
30 | |||||
Item 1A. |
30 | |||||
Item 2. |
30 | |||||
Item 3. |
30 | |||||
Item 4. |
31 | |||||
Item 5. |
31 | |||||
Item 6. |
31 | |||||
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, current |
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Total current assets |
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Prepaid expenses, non-current |
— | |||||||
Investments held in trust account |
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Total Assets |
$ |
$ |
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Liabilities, Ordinary Shares Subject to Possible Redemption, and Shareholders’ Deficit |
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Current Liabilities: |
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Accrued offering costs and expenses |
$ | $ | ||||||
Due to related party |
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Total Current Liabilities |
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Convertible promissory note |
— | |||||||
Warrant liabilities |
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Deferred underwriters’ fee |
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Total Liabilities |
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Commitments and Contingencies (Note 7) |
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Class A ordinary shares subject to possible redemption, $ |
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Shareholders’ Deficit: |
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Preference shares, $ |
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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 |
( |
) | ( |
) | ||||
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|
|
|
|||||
Total Shareholders’ Deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total Liabilities, Ordinary Shares Subject to Possible Redemption, and Shareholders’ Deficit |
$ |
$ |
||||||
|
|
|
|
For the three months ended June 30, |
For the six months ended June 30, 2022 |
For the period from January 21, 2021 (Inception) to June 30, 2021 |
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2022 |
2021 |
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Formation and operating costs |
$ | $ | $ | $ | ||||||||||||
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|
|
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Loss from Operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Other income |
||||||||||||||||
Change in fair value of warrant liability |
||||||||||||||||
Change in fair value of convertible promissory note |
— | — | ||||||||||||||
Transaction costs allocated to warrant liabilities |
— | ( |
) | — | ( |
) | ||||||||||
Interest income |
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Total other income |
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Net income |
$ |
$ |
$ |
$ |
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|
|
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Basic and diluted weighted average shares outstanding, Class A ordinary share subject to redemption |
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|
|
|
|
|
|
|
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Basic and diluted net income per share |
$ |
$ |
$ |
$ |
||||||||||||
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|
|
|
|
|
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|
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Basic and diluted weighted average shares outstanding, Class B ordinary share |
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|
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Basic and diluted net income per share |
$ |
$ |
$ |
$ |
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|
|
|
|
Class A ordinary shares |
Class B ordinary shares |
Additional Paid-in Capital |
Accumulated Deficit |
Shareholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance as of January 1, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Balance as of March 31, 2022 |
( |
) |
( |
) | ||||||||||||||||||||||||
Cash provided in excess of fair value of promissory note |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Remeasurement adjustment on Redeemable Class A ordinary shares |
— |
— |
— |
— |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Balance as of June 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Class A ordinary shares |
Class B ordinary shares |
Additional Paid-in Capital |
Accumulated Deficit |
Shareholders’ Deficit |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance as of January 21, 2021 (inception) |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||
Class B ordinary shares issued to Sponsor |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Balance as of March 31, 2021 |
( |
) |
||||||||||||||||||||||||||
Excess value of cash received over fair value of Private Placement Warrants |
— | — | — | — | — | |||||||||||||||||||||||
Remeasurement adjustment on Redeemable Class A ordinary shares |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net income |
— | — | — | — | ||||||||||||||||||||||||
Balance as of June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
For the six months ended June 30, 2022 |
For the period from January 21, 2021 (Inception) through June 30, 2021 |
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Cash flows from operating activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
Transaction costs allocated to warrant liabilities |
— | |||||||
Amortization of prepaid expenses |
||||||||
Change in fair value of warrant liability |
( |
) | ( |
) | ||||
Change in fair value of convertible promissory note |
( |
) | — | |||||
Interest earned on investments held in Trust Account |
( |
) | ( |
) | ||||
Changes in assets and liabilities: |
||||||||
Prepaid expenses |
( |
) | ( |
) | ||||
Accrued offering costs and expenses |
||||||||
Due to related party |
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|
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Net cash used in operating activities |
( |
) | ( |
) | ||||
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|
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Cash flows from investing activities: |
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Investments held in trust account |
— | ( |
) | |||||
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|
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Net cash used in investing activities |
— | ( |
) | |||||
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|
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Cash flows from financing activities: |
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Promissory note – related party |
— | |||||||
Proceeds from issuance of founder shares |
— | |||||||
Proceeds received from public offerings, net of underwriters’ discount |
— | |||||||
Proceeds from convertible promissory note |
— | |||||||
Proceeds from private placement |
— | |||||||
Payment of offering costs |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by financing activities |
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Net change in cash |
( |
) | ||||||
Cash and cash equivalents, beginning of the period |
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|
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Cash and cash equivalents, end of the period |
$ | $ | ||||||
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|
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Supplemental disclosure of cash flow information: |
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Deferred underwriter’s discount |
$ | — | $ | |||||
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|
|
|
|||||
Remeasurement adjustment on redeemable Class A ordinary shares |
$ | $ | ||||||
|
|
|
|
• | 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 June 30, |
For the six months ended June 30, 2022 |
For the period from January 21, 2021 (Inception) through June 30, 2021 |
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2022 |
2021 |
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Class A Ordinary Share |
||||||||||||||||
Net income allocable to Class A ordinary shares |
$ | $ | $ | $ | ||||||||||||
Basic and diluted weighted average shares outstanding |
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|
|
|
|
|
|
|
|
|||||||||
Basic and diluted income per share |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
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Class B Ordinary Share |
||||||||||||||||
Net income allocable to Class B ordinary shares |
$ | $ | $ | $ | ||||||||||||
Weighted average shares outstanding, basic and diluted |
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|
|
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|
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Basic and diluted income per ordinary share |
$ | $ | $ | $ | ||||||||||||
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|
|
|
|
|
|
|
Gross proceeds from IPO |
$ | |||
Less: |
||||
Proceeds allocated to Public Warrants |
( |
) | ||
Ordinary share issuance costs |
( |
) | ||
Plus: |
||||
Accretion of carrying value to redemption value |
||||
|
|
|||
Ordinary shares subject to possible redemption as of December 31, 2021 |
$ |
|||
Plus: |
||||
Accretion of carrying value to redemption value |
||||
|
|
|||
Ordinary shares subject to possible redemption as of June 30, 2022 |
$ |
|||
|
|
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than 30 days’ prior written notice of redemption (the “ period”) to each warrant holder; and |
• | if, and only if, the last reported sale price of the Class A ordinary shares for any days within a share sub-divisions, share |
• | in whole and not in part; |
• | at $ |
• | if, and only if, the Reference Value equals or exceeds $ share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like); and |
• | if the Reference Value is less than $ share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding public warrants, as described above. |
June 30, 2022 |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Assets: |
||||||||||||||||
U.S. Money Market held in Trust Account |
$ | $ | $ | $ | ||||||||||||
Liabilities: |
||||||||||||||||
Public Warrants Liability |
$ | $ | $ | $ | ||||||||||||
Private Placement Warrants Liability |
||||||||||||||||
Convertible Promissory Note |
— |
— |
||||||||||||||
$ |
$ |
$ |
$ |
|||||||||||||
December 31, 2021 |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||
Assets: |
||||||||||||||||
U.S. Money Market held in Trust Account |
$ | $ | $ | $ | ||||||||||||
Liabilities: |
||||||||||||||||
Public Warrants Liability |
$ | $ | $ | $ | ||||||||||||
Private Placement Warrants Liability |
||||||||||||||||
$ |
$ |
$ | $ |
|||||||||||||
Input |
December 31, 2021 |
|||
Risk-free interest rate |
% | |||
Expected term (years) |
||||
Expected volatility |
% | |||
Exercise price |
$ |
Fair value at January 1, 2022 |
$ | |||
Change in fair value |
( |
|||
Private Placement Warrants reclassified to Level 2 |
( |
|||
Fair Value at June 30, 2022 |
$ | |||
Fair value at January 21, 2021 (inception) and March 31, 2021 |
$ | |||
Initial fair value on May 6, 2021 |
||||
Initial value of Warrants issued on May 11, 2021 |
||||
Public Warrants reclassified to level 1 |
( |
) | ||
Change in fair value |
( |
) | ||
Fair Value at June 30, 2021 |
$ | |||
Fair value as of March 31, 2022 |
$ | |||
Amount borrowed at June 30, 2022 |
||||
Cash provided in excess of fair value of promissory note recorded in additional paid in capital |
( |
) | ||
Change in fair value |
( |
) | ||
Fair value as of June 30, 2022 |
$ | |||
At June 30, 2022 |
||||
Stock price |
$ | |||
Strike price |
$ | |||
Term (in years) |
||||
Volatility |
% | |||
Risk-free rate |
% |
• | 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. |
* | Filed herewith. |
By: | /s/ J. Douglas Smith | |
Name: J. Douglas Smith | ||
Title: Chief Financial Officer |