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 |
(Exact name of registrant as specified in its charter) |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
(Address of Principal Executive Offices, including zip code) |
( |
(Registrant’s telephone number, including area code) |
(Former name, former address and former fiscal year, if changed since last report) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
☐ | Large accelerated filer | ☐ | Accelerated filer | |||
☒ | Non-accelerated filer |
Smaller reporting company | ||||
Emerging growth company |
Page |
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PART 1 – FINANCIAL INFORMATION |
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25 |
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PART II – OTHER INFORMATION |
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June 30, 2021 |
December 31, 2020 |
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(unaudited) |
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ASSETS |
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Current Assets |
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Cash and cash equivalents |
$ | $ | ||||||
Prepaid expenses and other current assets |
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Prepaid income taxes |
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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’ EQUITY |
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Current Liabilities: |
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Accounts payable and accrued expenses |
$ | $ | ||||||
Franchise tax payable |
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Convertible promissory note – related party |
— | |||||||
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Total Current Liabilities |
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Warrant liabilities |
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Deferred underwriting commissions |
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Total Liabilities |
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Commitments and contingencies |
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Class A, $ |
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Stockholders’ Equity |
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Preferred stock, $ |
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Class A common stock, $ 26,254, and 215 25,254,918 shares subject to possible redemption) at June 30, 2021 and December 31, 2020, respectively |
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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’ Equity |
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Total Liabilities and Stockholders’ Equity |
$ |
$ |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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General and administrative expenses |
$ | $ | $ | $ | ||||||||||||
Franchise tax expense |
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Loss from operations |
( |
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( |
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( |
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( |
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Other income (expense): |
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Change in fair value of warrant liabilities |
( |
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Interest earned on investments held in Trust Account |
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Total other income (expense), net |
( |
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Loss before provision for income taxes |
( |
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) | ( |
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Provision for income taxes |
— | ( |
) | — | ( |
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Net income ( loss) |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
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Weighted average shares outstanding of Class A redeemable common stock |
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Basic and diluted income per share, Class A redeemable common stock |
$ |
$ |
$ |
$ |
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Basic non-redeemable common stock |
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Basic income (loss) per share, Class A and Class B |
$ |
( |
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$ |
( |
) |
$ |
$ |
( |
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Diluted weighted average shares outstanding of Class A and Class B non-redeemable common stock |
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Diluted loss per share, Class A and Class B |
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$ |
( |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
) |
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ (Deficit) Equity |
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Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — January 1, 2021 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||
Change in value of Class A common stock subject to possible redemption |
( |
) | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance — March 31, 2021 (unaudited) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||
Change in value of Class A common stock subject to possible redemption |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
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Balance — June 30, 2021 (unaudited) |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
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Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ (Deficit) Equity |
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Shares |
Amount |
Shares |
Amount |
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Balance — January 1, 2020 |
$ | |
$ | $ | $ | $ | ||||||||||||||||||||||
Change in value of Class A common stock subject to possible redemption |
( |
) | ( |
) | — | — | ( |
) | — | ( |
) | |||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance — March 31, 2020 (unaudited) |
$ | $ | $ | ( |
) | $ | $ | |||||||||||||||||||||
Change in value of Class A common stock subject to possible redemption |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
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Balance — June 30, 2020 (unaudited) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||||||
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Six Months Ended June 30, |
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2021 |
2020 |
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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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Change in fair value of warrant liabilities |
( |
) | ||||||
Interest earned on investments held in Trust Account |
( |
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) | ||||
Changes in operating assets and liabilities: |
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Prepaid expenses and other current assets |
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Prepaid income tax |
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Accounts payable and accrued expenses |
( |
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Franchise tax payable |
( |
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Income taxes payable |
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Net cash used in operating activities |
( |
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Cash Flows from Investing Activities: |
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Cash withdrawn 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 convertible promissory note – related party |
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Net cash provided by financing activities |
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Net Change in Cash and Cash Equivalents |
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Cash and Cash Equivalents – Beginning of period |
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Cash and Cash Equivalents – End of period |
$ |
$ |
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Non-Cash investing and financing activities: |
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Change in value of common stock subject to possible redemption |
$ | $ | ( |
) | ||||
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2021 |
2020 |
2021 |
2020 |
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Redeemable Class A Common Stock |
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Numerator: Earnings allocable to Redeemable Class A Common Stock |
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Interest Income |
$ | $ | $ | $ | ||||||||||||
Income Tax and Franchise Tax |
( |
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Net Earnings |
$ | — | $ | $ | — | $ | ||||||||||
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Denominator: Weighted Average Redeemable Class A Common Stock |
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Redeemable Class A Common Stock, Basic and Diluted |
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Earnings/Basic |
$ |
$ |
$ |
$ |
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Non-Redeemable Class A and B Common Stock |
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Numerator: Net Loss minus Redeemable Net Earnings |
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Net income (loss) |
$ | ( |
) | $ | ( |
) | $ | $ | ( |
) | ||||||
Les: Net Earnings allocable to Redeemable Class A Common Stock |
— | ( |
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Non-Redeemable Net Loss |
$ | ( |
) | $ | ( |
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Denominator: Weighted Average Non-Redeemable Class A and B Common Stock |
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Class A and B Non-Redeemable Common Stock, Basic |
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Income (Loss)/Basic Non-Redeemable Class A and B Common Stock |
$ |
( |
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$ |
( |
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$ |
$ |
( |
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Class A and B Non-Redeemable Common Stock, Diluted |
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Loss/Diluted Non-Redeemable Class A and B Common Stock |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
) |
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$ |
( |
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(a) | 1,000,000 shares of Apex Common Stock, in the aggregate, if at any time from and after the Closing through the seventh anniversary thereof (x) the Closing Price is greater than or equal to $12.50 over any 20 Trading Days within any 30 Trading Day period or (y) Apex consummates a Subsequent Transaction, which results in the stockholders of Apex having the right to exchange their shares for cash, securities or other property having a value equaling or exceeding $12.50 per share (the “First Milestone”) (such 1,000,000 shares of Apex Common Stock, the “First Milestone Contingent Consideration”); |
(b) | 1,000,000 shares of Apex Common Stock, in the aggregate, if at any time from and after the Closing through the seventh anniversary thereof (x) the Closing Price is greater than or equal to $15.00 over any 20 Trading Days within any 30 Trading Day period or (y) Apex consummates a Subsequent Transaction, which results in the stockholders of Apex having the right to exchange their shares for cash, securities or other property having a value equaling or exceeding $15.00 per share (the “Second Milestone”) (such 1,000,000 shares of Apex Common Stock, the “Second Milestone Contingent Consideration”); and |
(c) | 1,000,000 shares of Apex Common Stock, in the aggregate, if at any time from and after the Closing through the seventh anniversary thereof (x) the Closing Price is greater than or equal to $17.50 over any 20 Trading Days within any 30 Trading Day period or (y) Apex consummates a Subsequent Transaction, which results in the stockholders of Apex having the right to exchange their shares for cash, securities or other property having a value equaling or exceeding $17.50 per share (the “Third Milestone”) (such 1,000,000 shares of Apex Common Stock, the “Third Milestone Contingent Consideration” and together with the First Milestone Contingent Consideration and the Second Milestone Contingent Consideration, the “Contingent Consideration”). For the avoidance of doubt, the maximum amount of the Contingent Consideration is 3,000,000 shares of Apex Common Stock, in the aggregate. |
• | in whole and not in part; |
• | at a price of $0.01 per warrant; |
• | upon not less than 30 days’ prior written notice of redemption given after the warrants become exercisable; and |
• | if, and only if, the reported last sale price of the Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period commencing once the warrants become exercisable and ending three business days before the Company sends the notice of redemption to the warrant holders. |
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, 2021 |
December 31, 2020 |
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Assets: |
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Investments – U.S. Treasury Securities Money Market Fund |
1 | $ | $ | |||||||||
Liabilities: |
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Warrant Liability – Public Warrants |
1 | |||||||||||
Warrant Liability – Private Placement Warrants |
3 |
Input: |
June 30, 2021 |
December 31, 2020 |
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Risk-free interest rate |
% | % | ||||||
Expected term (years) |
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Expected volatility |
% | % | ||||||
Exercise price |
$ | $ | ||||||
Fair value of Units |
$ | $ |
Private Placement |
Public |
Warrant Liabilities |
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Fair value as of January 1, 2021 |
$ | $ | $ | |||||||||
Change in valuation inputs or other assumptions (1) |
( |
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Fair value as of March 31, 2021 |
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Change in valuation inputs or other assumptions (1) |
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Fair value as of June 30, 2021 |
$ | $ | $ | |||||||||
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Private Placement |
Public |
Warrant Liabilities |
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Fair value as of January 1, 2020 |
$ | $ | $ | |||||||||
Change in valuation inputs or other assumptions (1) |
( |
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Fair value as of March 31, 2020 |
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Change in valuation inputs or other assumptions (1) |
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Fair value as of June 30, 2020 |
$ | $ | $ |
(1) |
Changes in valuation inputs or other assumptions are recognized in change in fair value of warrant liabilities in the consolidated statement of operations. |
* | Filed herewith. |
** | Furnished. |
AVEPOINT, INC. (FORMERLY KNOWN AS APEX TECHNOLOGY ACQUISITION CORPORATION) | ||||||
Date: August 16, 2021 | /s/ Tianyi Jiang | |||||
Name: | Tianyi Jiang | |||||
Title: | Chief Executive Officer (Principal Executive Officer) |
Date: August 16, 2021 | /s/ Sophia Wu | |||||
Name: | Sophia Wu | |||||
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |