QUARTERLY REPORT UNDER 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) |
(IRS Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-half of one redeemable warrant |
The | |||
The | ||||
The |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
PART I—FINANCIAL INFORMATION | ||||||
Item 1. | ||||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 22 | |||||
Item 3. | 26 | |||||
Item 4. | 27 | |||||
PART II—OTHER INFORMATION |
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Item 1. | 27 | |||||
Item 1A. | 28 | |||||
Item 2. | 28 | |||||
Item 3. | 28 | |||||
Item 4. | 28 | |||||
Item 5. | 28 | |||||
Item 6. | 29 | |||||
SIGNATURES | 30 |
June 30, 2022 |
December 31, 2021 |
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(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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Prepaid expenses—noncurrent |
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Investments held in trust account |
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Derivative asset—forward purchase agreement |
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TOTAL ASSETS |
$ |
$ |
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LIABILITIES AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued expenses |
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Franchise tax payable |
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Total current liabilities |
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Warrant liabilities |
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Derivative liability—forward purchase agreement |
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Deferred underwriting fee payable |
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Total liabilities |
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Commitments and Contingencies (Note 6) |
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Class A common stock, subject to possible redemption, $ |
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Stockholders’ Deficit: |
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Preferred stock, $ |
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Class A common stock, $ |
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Class B common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
( |
) | ( |
) | ||||
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Total stockholders’ deficit |
( |
) |
( |
) | ||||
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TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
$ |
$ |
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|
|
|
|
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2022 |
For the Period from February 2, 2021 (inception) Through June 30, 2021 |
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Operating and formation costs |
$ | $ | $ | $ | ||||||||||||
Franchise tax expense |
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Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Unrealized gains on investments held in Trust Account |
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Realized gains on investments held in Trust Account |
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Gain on change in fair value of derivative asset—forward purchase agreement |
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Gain on change in fair value of warrant liabilities |
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Net income (loss) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
Basic and diluted weighted average shares outstanding, Class A common stock |
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Basic and diluted net income (loss) per share, Class A common stock |
$ |
$ |
$ |
$ |
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Basic and diluted weighted average shares outstanding, Class B common stock (1) |
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Basic and diluted net income (loss) per share, Class B common stock |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
(1) |
The three months ended June 30, 2021 and the period from February 2, 2021 (inception) through June 30, 2021 excludes up to |
Common Stock |
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Class A |
Class B |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance at December 31, 2021 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance at March 31, 2022 |
( |
) |
( |
) | ||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— | |||||||||||||||||||||||
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Balance at June 30, 2022 |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
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Common Stock |
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Class A |
Class B |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Equity |
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Shares |
Amount |
Shares |
Amount |
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Balance at February 2, 2021 (inception) |
$ | $ | $ | $ | ||||||||||||||||||||||||
Issuance of Class B Common Stock to Sponsor (1) |
— | — | — |
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Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance at March 31, 2021 |
( |
) |
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Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance at June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
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(1) |
The period from February 2, 2021 (inception) through March 31, 2021 includes up to |
Six Months Ended June 30, 2022 |
For the Period from February 2, 2021 (inception) Through June 30, 2021 |
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Cash Flows from Operating Activities: |
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Net income (loss) |
$ | $ | ( |
) | ||||
Adjustments to reconcile net income to net cash used in operating activities: |
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Unrealized gains on investments held in Trust Account |
( |
) | — | |||||
Realized gains on investments held in Trust Account |
( |
) | — | |||||
Gain on change in fair value of derivative asset—forward purchase agreement |
( |
) | — | |||||
Gain on change in fair value of warrant liabilities |
( |
) | — | |||||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||||||
Accounts payable |
( |
) | — | |||||
Accrued expenses |
||||||||
Franchise tax payable |
( |
) | — | |||||
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|
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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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Proceeds from Trust Account to pay franchise taxes |
— | |||||||
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Net cash provided by investing activities |
— |
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Cash Flows from Financing Activities: |
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Proceeds from sale of Class B common stock to Sponsor |
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Proceeds from promissory note—related party |
— | |||||||
Payment of offering costs |
— | ( |
) | |||||
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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 Period |
$ |
$ |
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Supplemental disclosure of noncash investing and financing activities: |
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Deferred offering costs included in accrued offering costs |
$ | — | $ | |||||
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Gross proceeds |
$ | |||
Less: |
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Proceeds allocated to Public Warrants |
( |
) | ||
Issuance costs allocated to Class A common stock |
( |
) | ||
Plus: |
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Accretion of carrying value to redemption value |
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Class A common stock subject to possible redemption |
$ |
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|
Three Months Ended June 30, 2022 |
Three Months Ended June 30, 2021 |
Six Months Ended June 30, 2022 |
For the Period from February 2, 2021 (inception) Through June 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income (loss) per share: |
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Numerator: |
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Net income (loss) |
$ | $ | $ | — | $ | ( |
) | $ | $ | $ | — | $ | ( |
) | ||||||||||||||||||
Denominator: |
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Basic and diluted weighted average shares outstanding (1) |
— | — | ||||||||||||||||||||||||||||||
Basic and diluted net income (loss) per share |
$ | $ | $ | — | $ | ( |
) | $ | $ | $ | — | $ | ( |
) |
(1) |
For the three months ended June 30, 2021 and for the period from February 2, 2021 (inception) through June 30, 2021 weighted average shares were reduced for the effect of an aggregate of |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the reported last reported sale price of the Class A common stock for any |
• | in whole and not in part; |
• | at a price of $ |
• | if the closing price of the Class A common stock for any |
Description |
Amount at Fair Value |
Level 1 |
Level 2 |
Level 3 |
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June 30, 2022 |
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Assets |
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Investments held in Trust Account: |
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Money Market investments |
$ | $ | $ | $ | ||||||||||||
Derivative asset—forward purchase agreement |
$ | $ | $ | $ | ||||||||||||
Liabilities |
||||||||||||||||
Warrant liability – Public Warrants |
$ | $ | $ | $ | ||||||||||||
Warrant liability – Private Placement Warrants |
$ | $ | $ | $ | ||||||||||||
December 31, 2021 |
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Assets |
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Investments held in Trust Account: |
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Money Market investments |
$ | $ | $ | $ | ||||||||||||
Liabilities |
||||||||||||||||
Warrant liability – Public Warrants |
$ | $ | $ | $ | ||||||||||||
Warrant liability – Private Placement Warrants |
$ | $ | $ | $ | ||||||||||||
Derivative liability- forward purchase agreement |
$ | $ | $ | $ |
At August 5, 2021 (Initial Measurement) |
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Stock price |
$ | |||
Strike price |
$ | |||
Risk-free rate |
% | |||
Dividend yield |
% | |||
Volatility |
% | |||
Fair value of warrants |
$ |
As of June 30, 2022 |
As of December 31, 2021 |
|||||||
Stock price |
$ | $ | ||||||
Strike price |
$ | $ | ||||||
Dividend yield |
% | % | ||||||
Term to expected Business Combination (in years) (1) |
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Volatility |
% | % | ||||||
Risk-free rate (2) |
% | % | ||||||
Fair value of warrants |
$ | $ |
1 |
The Private Placement Warrants expire 5 years after an initial Business Combination (see Note 7). As such, the full expected term of the Private Placement Warrants used for the valuations was 5.7 years and 5.6 years as of June 30, 2022 and December 31, 2021, respectively. |
2 |
The risk-free rate was based on U.S. Treasury Rates commensurate with the remaining term to Business Combination / expiration of the Private Placement Warrants (see Note 7). |
As of June 30, 2022 |
As of December 31, 2021 |
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Stock price |
$ | $ | ||||||
Strike price |
$ | $ | ||||||
Dividend yield |
% | % | ||||||
Term to expected Business Combination (in years) |
||||||||
Volatility |
% | % | ||||||
Risk-free rate (2) |
% | % | ||||||
Fair value of derivative (asset) liability— forward purchase agreement |
$ | ( |
) | $ |
2 |
The risk-free rate was based on U.S. Treasury Rates commensurate with the remaining term to Business Combination / expiration of the Private Placement Warrants (see Note 7). |
Fair value as of December 31, 2021 |
$ | |||
Change in fair value |
( |
) | ||
|
|
|||
Fair value as of March 31, 2022 |
||||
Change in fair value |
( |
) | ||
|
|
|||
Fair value as of June 30, 2022 |
$ |
* | Filed herewith |
** | Furnished herewith |
Healthwell Acquisition Corp. I | ||||
Date: August 12, 2022 | By: | /s/ Alyssa Rapp | ||
Alyssa Rapp | ||||
Chief Executive Officer | ||||
Healthwell Acquisition Corp. I | ||||
Date: August 12, 2022 | By: | /s/ Tracy Wan | ||
Tracy Wan | ||||
Chief Financial Officer |