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) |
(IRS Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-half of one redeemable warrant |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
1 |
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Item 1. |
1 |
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1 |
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2 |
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3 |
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4 |
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5 |
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Item 2. |
16 |
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Item 3. |
19 |
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Item 4. |
19 |
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20 |
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Item 1. |
20 |
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Items 1A. |
20 |
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Item 2. |
20 |
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Item 3. |
21 |
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Item 4. |
21 |
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Item 5. |
21 |
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Item 6. |
22 |
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23 |
Item 1. |
Financial Statements |
June 30, 2022 (unaudited) |
December 31, 2021 |
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Assets |
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Cash |
$ | $ | ||||||
Other current assets |
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Total current assets |
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Cash and investments held in Trust Account |
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Other non-current assets |
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Total Assets |
$ | $ | ||||||
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Liabilities, Redeemable Common Stock, and Stockholders’ Deficit |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ | $ | ||||||
Note payable |
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Total current liabilities |
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Deferred underwriting compensation |
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Derivative warrant liabilities |
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Total liabilities |
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Commitments and Contingencies (Note 5) |
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Class A ordinary shares subject to possible redemption, |
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Stockholders’ Deficit: |
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Preferred stock, $ |
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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 stockholders’ deficit |
( |
) | ( |
) | ||||
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Total Liabilities, Redeemable Common Stock, and Stockholders’ Deficit |
$ | $ | ||||||
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For the Three Months Ended June 30, 2022 |
For the period from April 20, 2021 (inception) through June 30, 2021 |
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General and administrative expenses |
$ |
$ |
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Loss from operations |
( |
) |
( |
) | ||||
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Other income (expense): |
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Change in fair value of derivative warrant liabilities |
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Interest earned on cash and investments held in Trust Account |
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Total other income, net |
— |
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Net income (loss) |
$ |
$ |
( |
) | ||||
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Basic and diluted weighted average shares outstanding, Class A |
— |
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Basic and diluted net income per share, Class A |
$ |
$ |
— |
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Basic and diluted weighted average shares outstanding, Class B |
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Basic and diluted net income per share, Class B |
$ |
$ |
( |
) | ||||
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For the Six Months Ended June 30, 2022 |
For the period from April 20, 2021 (inception) through June 30, 2021 |
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General and administrative expenses |
$ | $ | ||||||
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Loss from operations |
( |
) | ( |
) | ||||
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Other income (expense): |
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Change in fair value of derivative warrant liabilities |
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Interest earned on cash and investments held in Trust Account |
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Total other income, net |
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Net income (loss) |
$ | $ | ( |
) | ||||
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Basic and diluted weighted average shares outstanding, Class A |
— | |||||||
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Basic and diluted net income per share, Class A |
$ | $ | — | |||||
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Basic and diluted weighted average shares outstanding, |
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Basic and diluted net income per share, Class B |
$ | $ | ( |
) | ||||
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Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
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Balance as of December 31, 2021 |
$ | $ | — | $ | ( |
) | $ | ( |
) | |||||||||||
Stock-based compensation |
— | — | — | |||||||||||||||||
Net income |
— | — | — | |||||||||||||||||
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Balance as of March 31, 2022 (unaudited) |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||
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Stock-based compensation |
— | — | — | |||||||||||||||||
Change in value of class A ordinary shares subject to possible redemption |
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— |
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— |
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( |
) |
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— |
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( |
) |
Net income |
— | — | — | |||||||||||||||||
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Balance as of June 30, 2022 (unaudited) |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||
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Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
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Balance as of April 20, 2021 (inception) |
$ |
$ |
$ |
$ |
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Issuance of founder shares |
— |
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Net loss |
— |
— |
— |
( |
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( |
) | |||||||||||||
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Balance as of June 30, 2021 (unaudited) |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
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For the Six Months Ended June 30, 2022 |
For the period from April 20, 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 (loss) to net cash used in operating activities: |
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Stock-based compensation |
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Change in fair value of derivative warrant liabilities |
( |
) | |
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Interest income earned on cash and investments in Trust Account |
( |
) | |
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Bank service fees from cash and investments in Trust Account |
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Changes in operating assets and liabilities: |
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Other current assets |
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Accounts payable and accrued expenses |
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Accrued offering and formation costs |
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Non-current assets |
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Net cash used in operating activities |
( |
) |
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( |
) | ||
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Cash Flows from Financing Activities: |
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Proceeds from issuance of Class B ordinary shares to Sponsor |
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Proceeds from loans from related parties |
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Repayment of loans from related parties |
( |
) | |
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Net cash (used in) provided by financing |
( |
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Net (decrease) increase in cash |
( |
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Cash, beginning of period |
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Cash, end of the period |
$ |
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$ |
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Supplemental disclosure of non-cash financing activities |
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Change in value of Class A ordinary shares subject to possible redemptio n |
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$ |
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$ |
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Accrued deferred financing costs |
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$ |
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$ |
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Gross proceeds |
$ | |||
Less: |
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Offering costs allocated to Class A ordinary shares subject to possible redemption |
( |
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Proceeds allocated to public warrants |
( |
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Plus: |
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Remeasurement of Class A ordinary shares subject to possible redemption to redemption value |
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Class A ordinary shares subject to possible redemption as of December 31, 2021 |
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Remeasurement of Class A ordinary shares subject to possible redemption to redemption value |
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Class A ordinary shares subject to possible redemption as of June 30, 2022 |
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$ |
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For the Three months ended June 30, 2022 |
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For the period from April 20, 2021 (inception) through June 30, 2021 |
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Class A ordinary shares |
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Numerator: |
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Allocation of net income (loss) |
$ | $ |
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Denominator: |
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Basic and diluted weighted average shares outstanding |
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Basic and diluted earnings per share |
$ | $ | |
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Class B ordinary shares |
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Numerator: |
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Allocation of net income (loss) |
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$ |
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$ |
( |
) |
Denominator: |
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Basic and diluted Weighted Average shares outstanding |
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Basic and diluted earnings per share |
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$ |
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$ |
( |
) |
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For the six months ended June 30, 2022 |
For the period from April 20, 2021 (inception) through June 30, 2021 |
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Class A ordinary shares |
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Numerator: |
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Allocation of net income (loss) |
$ |
$ |
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Denominator: |
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Basic and diluted weighted average shares outstanding |
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|
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Basic and diluted earnings per share |
$ |
$ |
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Class B ordinary shares |
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Numerator: |
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Allocation of net income (loss) |
$ |
$ |
( |
) | ||||
Denominator: |
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Basic and diluted Weighted Average shares outstanding |
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Basic and diluted earnings per share |
$ |
$ |
( |
) | ||||
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• | Level 1 – Observable inputs for identical assets or liabilities such as quoted prices in active markets; |
• | Level 2 – Inputs other than quoted prices in active markets that are either directly or indirectly observable; and |
• | Level 3 – Unobservable inputs in which little or no market data exists, which are therefore developed by the Company using estimates and assumptions that reflect those that a market participant would use. |
• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of |
• | if, and only if the last reported sale price of Class A ordinary shares for any |
• | in whole and not in part; |
• | at a price of $ |
• | if, and only if the Reference Value equals or exceeds $ |
• | if, and only if the Reference Value is less than $ |
Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. | |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description |
Level |
June 30, 2022 |
December 31, 2021 |
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Assets: |
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Cash held in Trust Account |
1 | $ | $ | |||||||||
Liabilities |
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Warrant Liability – Public Warrants |
1 | $ | $ | |||||||||
Warrant Liability – Private Placement Warrants |
3 | $ | $ |
Input |
June 30, 2022 |
December 31, 2021 |
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Risk-free interest rate |
% | % | ||||||
Expected term (years) |
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Expected volatility |
% | % | ||||||
Exercise price |
$ | $ | ||||||
Unit Price (public) |
$ | $ | ||||||
Class A Ordinary Shares |
$ | $ |
Private Placement Warrant Liabilities |
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Fair value as of December 31, 2021 |
$ | |||
Change in valuation inputs and other assumptions |
( |
) | ||
Fair value as of June 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 |
* | 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/ Edward J. Wegel | |
Name: | Edward J. Wegel | |
Title: | Chief Executive Officer (principal executive officer) |