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 | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page | ||||
Part I. Financial Information |
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Item 1. Financial Statements |
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1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 | ||||
20 | ||||
26 | ||||
26 | ||||
Part II. Other Information |
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27 | ||||
27 | ||||
27 | ||||
27 | ||||
28 | ||||
28 | ||||
28 | ||||
29 |
Item 1. |
Financial Statements. |
September 30, 2022 (Unaudited) |
December 31, 2021 (Audited) |
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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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Prepaid expenses—noncurrent |
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Investment held in Trust Account |
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TOTAL ASSETS |
$ |
$ |
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Liabilities and Shareholders’ Deficit |
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Current liabilities: |
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Accrued expenses |
$ | $ | ||||||
Due to related party |
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Total Current Liabilities |
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Deferred underwriters’ discount |
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Warrant liability |
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Total liabilities |
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Commitments and contingencies (Note 6) |
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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 |
( |
) | ( |
) | ||||
Total Shareholders’ Deficit |
( |
) |
( |
) | ||||
Total Liabilities and Shareholders’ Deficit |
$ |
$ |
||||||
Three Months Ended September 30, |
Nine Months Ended September 30, |
For the period from February 1, 2021 (Inception) to September 30, |
||||||||||||||
2022 |
2021 |
2022 |
2021 |
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Formation and operating costs |
$ | $ | $ | $ | ||||||||||||
Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Other income: |
||||||||||||||||
Interest earned on investment held in Trust Account |
||||||||||||||||
Interest earned on cash held in bank account |
||||||||||||||||
Offering costs allocated to warrants |
( |
) | ( |
) | ||||||||||||
Fair value in excess of proceeds from sale of private warrants |
( |
) | ( |
) | ||||||||||||
Change in fair value of warrant liability |
||||||||||||||||
Total other income, net |
||||||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average shares outstanding of Class A ordinary shares subject to possible redemption |
||||||||||||||||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption |
$ |
$ |
$ |
$ |
||||||||||||
Weighted average shares outstanding, Class B ordinary shares |
||||||||||||||||
Basic and diluted net income per share, Class B ordinary shares |
$ |
$ |
$ |
$ |
||||||||||||
Class A Ordinary shares |
Class B Ordinary shares |
Additional Paid-in |
Accumulated |
Total Shareholder’s |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Deficit |
||||||||||||||||||||||
Balance as of January 1, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
March 31, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Change in value of ordinary shares subject to redemption |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
June 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Change in value of ordinary shares subject to redemption |
— | — | — | ( |
) | ( |
) | |||||||||||||||||||||
Net income |
— | — | — |
— |
— |
|||||||||||||||||||||||
September 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Class A Ordinary shares |
Class B Ordinary shares |
Additional Paid-in |
Accumulated |
Total Shareholder’s |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Equity |
||||||||||||||||||||||
Balance as of February 1, 2021 (Inception) |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||||||
Issuance of Class B ordinary shares to Sponsor |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
March 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Sale of 60,950,000 Units net of underwriting discount and offering expenses and fair value of public warrants |
— | — | — | |||||||||||||||||||||||||
Class A ordinary shares subject to redemption |
( |
) | ( |
) | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
September 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Nine Months Ended September 30, 2022 |
For the period from February 1, 2021 (Inception) to September 30, 2021 |
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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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Formation cost paid by Sponsor |
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Interest earned on marketable securities held in Trust Account |
( |
) | ( |
) | ||||
Offering costs allocated to warrants |
||||||||
Fair value in excess of proceed from sale of private warrants |
||||||||
Change in fair value of warrant liability |
( |
) | ( |
) | ||||
Changes in operating assets and liabilities: |
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Prepaid expense |
( |
) | ||||||
Other assets |
( |
) | ||||||
Accrued expenses |
||||||||
Due to related party |
||||||||
Net cash used in operating activities |
( |
) |
( |
) | ||||
Cash Flows from Investing Activities: |
||||||||
Investment of cash into Trust Account |
$ | $ | ( |
) | ||||
Net cash used in investing activities |
( |
) | ||||||
Cash Flows from Financing Activities: |
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Proceeds from sale of Units, net of underwriting discount |
||||||||
Proceeds from sale of Private Placements Warrants |
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Payment of promissory note |
( |
) | ||||||
Payment of offering costs |
( |
) | ||||||
Net cash provided by financing activities |
$ | $ |
||||||
Net change in cash |
( |
) |
||||||
Cash, beginning of period |
||||||||
Cash, end of the period |
$ |
$ |
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Supplemental disclosure of cash flow information: |
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Remeasurement of carrying value to redemption value |
$ | $ | ||||||
Deferred underwriters’ discount payable charged to additional paid-in capital |
$ | $ | ||||||
Accrued offering costs |
$ | $ | ||||||
Carrying Value as of September 30, 2022 |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value as of September 30, 2022 |
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Cash |
$ | $ | $ | $ | ||||||||||||
U.S. Treasury Securities |
||||||||||||||||
$ |
$ |
$ |
$ |
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Carrying Value as of December 31, 2021 |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value as of December 31, 2021 |
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Cash |
$ | $ | $ | $ | ||||||||||||
U.S. Treasury Securities |
( |
) | ||||||||||||||
$ |
$ |
$ |
( |
) |
$ |
|||||||||||
Gross Proceeds from IPO |
$ | |||
Less: |
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Proceeds allocated to public warrants |
( |
) | ||
Class A ordinary shares issuance costs |
( |
) | ||
Plus: |
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Remeasurement of carrying value to redemption value |
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|
|
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Class A ordinary shares subject to possible redemption, December 31, 2021 |
$ |
|||
|
|
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Remeasurement of carrying value to redemption value |
||||
|
|
|||
Class A ordinary shares subject to possible redemption, September 30, 2022 |
$ |
|||
|
|
For the Three Months Ended September 30, 2022 |
For the Three Months Ended September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income per share: |
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Numerator: |
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Allocation of net income |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
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Denominator: |
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Weighted-average shares outstanding |
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|
|
|
|
|
|
|
|
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Basic and diluted net income per share |
$ | $ | $ | $ |
For the Nine Months Ended September 30, 2022 |
For the period from February 1, 2021 (Inception) to September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income per share: |
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Numerator: |
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Allocation of net income |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
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Denominator: |
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Weighted-average shares outstanding |
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|
|
|
|
|
|
|
|
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Basic and diluted net income per share |
$ | $ | $ | $ |
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. |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than (the “30-day redemption period”) to each warrant holder; and |
• | if, and only if, the closing price of the Class A ordinary shares equals or exceeds $ share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any within a ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. |
• | in whole and not in part; |
• | at $ |
• | if, and only if, the closing price of our Class A ordinary shares equals or exceeds $ |
September 30, 2022 |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Assets: |
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Cash and Investments Held in Trust Account |
$ | |
$ | $ | |
$ | ||||||||||
|
|
|
|
|
|
|
|
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$ | |
$ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
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Liabilities: |
||||||||||||||||
Public Warrants Liability |
$ | $ | $ | $ | ||||||||||||
Private Placement Warrants Liability |
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|
|
|
|
|
|
|
|
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$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
December 31, 2021 |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Assets: |
||||||||||||||||
Cash and Investments Held in Trust Account |
$ | |
$ | $ | $ | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | $ | $ | |||||||||||||
|
|
|
|
|
|
|
|
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Liabilities: |
||||||||||||||||
Public Warrants Liability |
$ | $ | $ | $ | ||||||||||||
Private Placement Warrants Liability |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
$ | $ | |
$ | $ | |
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|
|
|
|
|
|
|
|
Inputs |
December 31, 2021 |
July 1, 2021 (Initial Measurement) |
||||||
Risk-free interest rate |
% | % | ||||||
Expected term remaining (years) |
||||||||
Expected volatility |
% | % | ||||||
Implied Stock price |
$ | $ | ||||||
Exercise price |
$ | |
$ | |
Warrant Liabilities |
||||
Fair Value as of December 31, 2021 |
$ | |||
Change in fair value of Warrants |
( |
) | ||
|
|
|||
Fair Value as of March 31, 2022 |
||||
Change in fair value of Warrants |
( |
) | ||
|
|
|||
Fair Value as of June 30, 2022 |
$ | |||
Change in fair value of Warrants |
( |
) | ||
Transfer of Private Placement Warrants to Level 2 |
( |
) | ||
|
|
|||
Fair Value as of September 30, 2022 |
$ | |||
|
|
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. |
By: | /s/ Steven Barg | |
Name: Steven Barg | ||
Title: Chief Financial Officer |