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 |
(I.R.S. Employer | |
incorporation or organization) |
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 |
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Item 1. |
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3 |
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4 |
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5 |
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Item 2. |
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Item 3. |
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Item 4. |
23 |
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24 |
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Item 1. |
24 |
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Item 1A. |
24 |
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Item 2. |
25 |
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Item 3. |
25 |
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Item 4. |
25 |
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Item 5. |
25 |
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Item 6. |
25 |
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27 |
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
(unaudited) | (audited) | |||||||
ASSETS |
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Current assets |
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Cash |
$ | $ | ||||||
Prepaid expenses – current |
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Total Current Assets |
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Non-current assets |
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Cash and Marketable securities held in Trust Account |
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Prepaid expenses – non-current |
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Total Non-current Assets |
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TOTAL ASSETS |
$ |
$ |
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LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ DEFICIT |
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Current liabilities |
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Accrued expenses |
$ | $ | ||||||
Accounts payable |
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Accrued offering costs |
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Total Current Liabilities |
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Non-Current liabilities |
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Deferred underwriter fee payable |
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Total Non-current Liabilities |
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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 |
( |
) |
( |
) | ||||
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TOTAL LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ DEFICIT |
$ |
$ |
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Three Months Ended |
Six Months Ended |
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June 30, |
June 30, |
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2022 |
2022 |
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(unaudited) | (unaudited) | |||||||
Formation and operating costs |
$ | $ | ||||||
Accounting and legal expense |
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Listing fees |
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Insurance expense |
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Advertising and marketing |
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Administrative expenses |
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Loss from operations |
( |
) |
( |
) | ||||
Other income: |
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Earnings on marketable securities held in Trust Account |
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Unrealized gain on marketable securities held in Trust Accoun t |
— |
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Other income |
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Net loss |
$ |
( |
) |
$ |
( |
) | ||
Weighted average shares outstanding of redeemable Class A ordinary shares |
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Basic and diluted net loss per share, redeemable Class A ordinary shares |
$ |
( |
) |
$ |
( |
) | ||
Weighted average shares outstanding of non-redeemable Class B ordinary shares |
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Basic and diluted net loss per share, non-redeemable Class B ordinary shares |
$ |
( |
) |
$ |
( |
) |
Class A |
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Ordinary Shares Subject To |
Class B |
Additional |
Total |
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Possible Redemption |
Ordinary Shares |
Paid-in |
Accumulated |
Shareholders’ |
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Shares |
Amount |
Shares |
Amount |
Capital |
Deficit |
Deficit |
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Balance – December 31, 2021 (audited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Accretion of Class A ordinary shares to redemption value |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance – March 31, 2022 (unaudited) |
( |
) | ( |
) | ||||||||||||||||||||||||
Accretion of Class A ordinary shares to redemption value |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance – June 30, 2022 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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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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Earnings on marketable securities held in Trust Account |
( |
) | ||
Unrealized gain on marketable securities held in Trust Account |
( |
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Changes in operating assets and liabilities |
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Prepaid expenses |
( |
) | ||
Accrued expenses |
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Accounts payable |
( |
) | ||
Accrued offering costs |
( |
) | ||
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Net cash used in operating activities |
( |
) | ||
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Net Change in Cash |
( |
) | ||
Cash – Beginning |
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Cash – End |
$ |
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Non-Cash Investing and Financing Activities: |
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Accretion of Class A ordinary shares subject to possible redemption |
$ | |||
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• | 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 calculations derived from valuation techniques in which one or more significant inputs or significant value drivers are observable. |
Gross proceeds from initial public offering |
$ | |||
Less: |
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Proceeds allocated to public warrants |
( |
) | ||
Offering costs allocated to Class A ordinary shares subject to possible redemption |
( |
) | ||
Plus: |
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Re-measurement of Class A ordinary shares subject to possible redemption |
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Class A ordinary shares subject to possible redemption, December 31, 2021 |
$ | |||
Re-measurement of Class A ordinary shares subject to possible redemption |
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Class A ordinary shares subject to possible redemption, June 30, 2022 |
$ | |||
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Three Months Ended June 30, 2022 |
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Net loss |
$ | ( |
) | |
Accretion of temporary equity to redemption value |
( |
) | ||
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Net loss including accretion of temporary equity to redemption value |
$ | ( |
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Three Months Ended June 30, 2022 |
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Class A | Class B | |||||||
Basic and diluted net loss per share: |
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Numerator: |
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Allocation of net loss including accretion of temporary equity |
$ | ( |
) | $ | ( |
) | ||
Deemed dividend for accretion of temporary equity to redemption value |
$ | $ | — | |||||
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Allocation of net loss |
$ | ( |
) | $ | ( |
) | ||
Weighted average shares outstanding |
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Basic and diluted net loss per share |
$ | ( |
) | $ | ( |
) |
Six Months Ended June 30, 2022 |
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Net loss |
$ | ( |
) | |
Accretion of temporary equity to redemption value |
( |
) | ||
|
|
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Net loss including accretion of temporary equity to redemption value |
$ | ( |
) | |
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|
Six Months Ended June 30, 2022 |
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Class A | Class B | |||||||
Basic and diluted net loss per share: |
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Numerator: |
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Allocation of net loss including accretion of temporary equity |
$ | ( |
) | $ | ) | |||
Deemed dividend for accretion of temporary equity to redemption value |
$ | $ | — | |||||
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Allocation of net loss |
$ | ( |
) | $ | ( |
) | ||
Weighted average shares outstanding |
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Basic and diluted net loss per share |
$ | ( |
) | $ | ( |
) |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the closing price of the Class A ordinary shares equals or exceeds $ |
June 30, 2022 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Assets |
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Cash and marketable securities held in Trust Account |
$ | $ | $ |
December 31, 2021 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Assets |
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Cash and marketable securities held in Trust Account |
$ | $ | $ |
• | may significantly dilute the equity interest of investors in our initial public offering, which dilution would further increase if the anti- dilution provisions in the Class B ordinary shares resulted in the issuance of Class A ordinary shares on a greater than one-to-one basis upon conversion of the Class B ordinary shares; |
• | may subordinate the rights of holders of Class A ordinary shares if preference shares are issued with rights senior to those afforded our Class A ordinary shares; |
• | could cause a change in control if a substantial number of our Class A ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; |
• | may have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; |
• | may adversely affect prevailing market prices for our units, Class A ordinary shares and/or warrants; and |
• | may not result in adjustment to the exercise price of our warrants. |
• | default and foreclosure on our assets if our operating revenues after an initial business combination are insufficient to repay our debt obligations; |
• | acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant; |
• | our immediate payment of all principal and accrued interest, if any, if the debt is payable on demand; |
• | our inability to obtain necessary additional financing if the debt contains covenants restricting our ability to obtain such financing while the debt is outstanding; |
• | our inability to pay dividends on our Class A ordinary shares; |
• | using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our Class A ordinary shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes; |
• | limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate; |
• | increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and |
• | limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt. |
* | Filed herewith. |
** | Furnished herewith. |
INTEGRATED WELLNESS | ||||||
ACQUISITION CORP | ||||||
Date: August 12, 2022 | By: | /s/ Steven Schapera | ||||
Name: | Steven Schapera | |||||
Title: | Chief Executive Officer |