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 | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
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PART 1 - FINANCIAL INFORMATION |
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Item 1. |
FINANCIAL STATEMENTS (UNAUDITED) |
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Condensed Balance Sheet as of June 30, 2021 (As Restated) |
1 |
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2 |
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3 |
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4 |
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Notes to Unaudited Condensed Financial Statements (As Restated) |
5 |
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Item 2. |
14 |
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Item 3. |
17 |
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Item 4. |
17 |
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PART II - OTHER INFORMATION |
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Item 1. |
17 |
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Item 1A. |
17 |
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Item 2. |
17 |
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Item 3. |
17 |
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Item 4. |
17 |
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Item 5. |
18 |
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Item 6. |
18 |
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19 |
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 AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
$ | |||
Accrued expenses and other current liabilities |
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Franchise tax payable |
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Total current liabilities |
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Deferred underwriting fee payable |
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Total Liabilities |
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Commitments and Contingencies (Note 7) |
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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, $ (excluding |
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Class B common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
( |
) | ||
Total Stockholders’ Deficit |
( |
) | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
$ |
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Three Months Ended June 30, 2021 |
For the Period from March 1, 2021 (Inception) Through June 30, 2021 |
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Operating and formation costs |
$ | $ | ||||||
Franchise tax expense |
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|
|
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Loss from operations |
( |
) |
( |
) | ||||
Interest and dividend income on investments held in Trust Account |
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Net loss |
$ |
( |
) |
$ |
( |
) | ||
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|
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|
Basic and diluted weighted average shares outstanding, Class A Common Stock |
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|
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Basic and diluted net loss per share, Class A Common Stock |
$ | ( |
) | $ | ( |
) | ||
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|
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Basic and diluted weighted average shares outstanding, Class B Common Stock |
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|
|
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Basic and diluted net loss per share, Class B Common Stock |
$ | ( |
) | $ | ( |
) | ||
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|
|
|
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholder’s Equity (Deficit) |
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Shares |
Amount |
Shares |
Amount |
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Balance - March 1, 2021 (Inception) |
$ |
$ |
$ |
$ |
$ |
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Issuance of Class B common stock to Sponsor |
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Net loss |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
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Balance - March 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Sale of in private placement to Sponsor, costs |
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Accretion of redeemable Class A common stock to redemption amount |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net loss |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
|
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|
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Balance - June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) | $ |
( |
) | |||||||||||||||||||
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|
|
|
|
|
|
|
|
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|
|
|
|
Cash Flows from Operating Activities: |
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Net loss |
$ | ( |
) | |
Adjustments to reconcile net loss to net cash used in operating activities: |
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Interest and dividend income on investments held in Trust Account |
( |
) | ||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||
Accounts payable |
||||
Accrued expenses and other current liabilities |
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Franchise tax payable |
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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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Cash deposited into Trust Account |
( |
) | ||
|
|
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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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Proceeds from promissory note - related party |
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Repayment of promissory note - related party |
( |
) | ||
Proceeds from initial public offering, net of underwriting discount paid |
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Proceeds from sale of private placement shares |
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Payment of offering costs |
( |
) | ||
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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 period |
$ |
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|
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|
|
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Supplemental disclosures of non-cash investing and financing activities: |
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Accretion of Class A common stock subject to redemption to redemption value |
$ | |||
|
|
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Deferred underwriting fee payable |
$ | |||
|
|
|||
Offering costs paid in exchange for issuance of Class B common stock to Sponsor |
$ | |||
|
|
June 30, 2021 |
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As Previously Reported |
Adjustments |
As Restated |
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Condensed Balance Sheet (unaudited) |
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Class A common stock subject to possible redemption |
$ |
$ |
$ |
|||||||||
Class A common stock |
$ |
$ |
( |
) |
$ |
|||||||
Additional paid-in capital |
$ |
$ |
( |
) |
$ |
— |
||||||
Accumulated deficit |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | |||
Total stockholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Shares of Class A common stock subject to possible redemption |
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Class A common stock |
( |
) |
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Condensed Statement of Operations for the Three Months Ended June 30, 2021 (unaudited) |
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Basic and diluted weighted average shares outstanding, Class A common stock |
( |
) |
||||||||||
Basic and diluted net income (loss) per share, Class A common stock |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Basic and diluted weighted average shares outstanding, Class B common stock (1) |
( |
) |
||||||||||
Basic and diluted net loss per share, Class B common stock |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Condensed Statement of Operations for the Period From March 1, 2021 (Inception) Through June 30, 2021 (unaudited) |
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Basic and diluted weighted average shares outstanding, Class A common stock |
( |
) |
||||||||||
Basic and diluted net income (loss) per share, Class A common stock |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Basic and diluted weighted average shares outstanding, Class B common stock (1) |
( |
) |
||||||||||
Basic and diluted net loss per share, Class B common stock |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Condensed Statement of Changes in Stockholders’ Equity (Deficit) for the Three Months Ended June 30, 2021 (unaudited) |
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Sale of |
$ |
$ |
( |
) |
$ |
— |
||||||
Sale of |
$ |
$ |
$ |
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Class A common stock subject to possible redemption |
$ |
( |
) |
$ |
$ |
— |
||||||
Accretion of redeemable Class A common stock to redemption amount |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||
Condensed Statement of Cash Flows for the Period From March 1, 2021 (Inception) Through June 30, 2021 (unaudited) |
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Supplemental disclosures of non-cash investing and financing activities |
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Class A common stock subject to possible redemption |
$ |
$ |
( |
) |
$ |
— |
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Accretion of Class A common stock to redemption amount |
$ |
— |
$ |
$ |
(1) |
Prior to the change in presentation for the Class A common stock subject to possible redemption, the Company applied to two class method of earnings per share, allocating net income between redeemable Class A common stock and non-redeemable Class A and Class B common stock. As such, a portion of the Class A common stock was included in the weighted average shares outstanding of Class B common stock in the As Previously Reported balances. |
Gross proceeds |
$ |
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Less: |
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Issuance costs allocated to Class A common stock |
( |
) | ||
Plus: |
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Accretion of carrying value to redemption value |
||||
Class A common stock subject to possible redemption |
$ |
|||
Three Months Ended June 30, 2021 |
For the Period from March 1, 2021 (Inception) Through June 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Basic and diluted net loss per share: |
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Numerator: |
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Net loss |
$ |
( |
) |
|
$ |
( |
) |
$ |
( |
) |
|
$ |
( |
) | ||
|
|
|
|
|
|
|
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Denominator: |
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Basic and diluted weighted average shares outstanding |
|
|
|
|
|
|
|
| ||||||||
Basic and diluted net loss per share |
$ | ( |
) |
|
$ |
( |
) |
$ | ( |
) |
|
$ |
( |
) |
Description |
Amount at Fair Value |
Level 1 |
Level 2 |
Level 3 |
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June 30, 2021 |
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Assets |
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Investments held in Trust Account: |
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U.S. Treasury Securities |
$ | $ | $ | $ |
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 |
Exhibit No. |
Description | |
31.1* | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2* | Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1** | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2** | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS* | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104* | The cover page for the Company’s Quarterly Report on Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101 |
* | Filed herewith. |
** | Furnished. |
Dynamics Special Purpose Corp. | ||||||
Date: December 10, 2021 | By: | /s/ Mostafa Ronaghi | ||||
Mostafa Ronaghi | ||||||
Chief Executive Officer | ||||||
Dynamics Special Purpose Corp. | ||||||
Date: December 10, 2021 | By: | /s/ Mark Afrasiabi | ||||
Mark Afrasiabi | ||||||
Chief Financial Officer |