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 or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-third of one Redeemable Warrant |
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Warrants, each exercisable for one share Class A Common Stock for $11.50 per share |
Large, accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page |
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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. |
18 |
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Item 3. |
21 |
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Item 4. |
21 |
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Item 1. |
22 |
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Item 1A. |
22 |
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Item 2. |
22 |
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Item 3. |
22 |
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Item 4. |
22 |
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Item 5. |
22 |
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Item 6. |
23 |
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24 |
ITEM 1. |
CONDENSED FINANCIAL STATEMENTS |
September 30, 2021 |
December 31, 2020 |
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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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Cash and 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 and accrued expenses |
$ | $ | ||||||
Income taxes payable |
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Total Current Liabilities |
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Warrant liabilities |
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Deferred underwriting fee payable |
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Total Liabilities |
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Commitments and Contingencies |
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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 |
( |
) | ( |
) | ||||
Total Stockholders’ Deficit |
( |
) |
( |
) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
$ |
$ |
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For The Three Months Ended September 30, |
Nine months Ended September 30, |
For the Period from May 22, 2020 (Inception) through September 30, |
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2021 |
2020 |
2021 |
2020 |
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General and administrative expenses |
$ | $ | $ | $ | ||||||||||||
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Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other income (loss): |
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Interest earned on investments held in Trust Account |
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Change in fair value of warrant liabilitie s |
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Transaction cost related to warrant liability |
( |
) | ( |
) | ||||||||||||
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Other income (loss), net |
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Income before provision for income taxes |
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Provision for income taxes |
( |
) | ( |
) | ( |
) | ||||||||||
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Net income |
$ |
$ |
$ |
$ |
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Weighted average shares outstanding of Class A common stock |
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Basic and diluted net income per share, Class A common stock |
$ | $ | $ | $ | ||||||||||||
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Weighted average shares outstanding of Class B common stock |
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Basic and diluted net income 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 Stockholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance – January 1, 2021 |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — |
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Balance – March 31, 2021 (unaudited) |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Net (loss) |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance – June 30, 2021 (unaudited) |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – September 30, 2021 (unaudited) |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
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Class A |
Class B |
Additional Paid-in Capital |
Total Stockholders’ Equity (Deficit) |
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Common Stock |
Common Stock |
Accumulated Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance – May 22, 2020 (Inception) |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Issuance of Founder Shares to Sponsor |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance – June 30, 2020 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Sale of |
— | — | — | |||||||||||||||||||||||||
Accretion for Class A co m mon stock to redemption amount |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Forfeiture of Founder Shares |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – September 30, 2020 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Nine months Ended September 30, |
For the Period from May 22, 2020 (Inception) Through September 30, |
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2021 |
2020 |
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Cash Flows from Operating Activities: |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income 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 |
( |
) | ( |
) | ||||
Transaction costs allocated to warrants |
— | |||||||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||||||
Accounts payable and accrued expenses |
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Income taxes payable |
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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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Cash withdrawn from Trust Account to pay franchise and income taxes |
— | |||||||
Investment of cash into trust Account |
— | ( |
) | |||||
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Net cash provided by (used in) investing activities |
( |
) | ||||||
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Cash Flows from Financing Activities: |
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Proceeds from promissory note - related party |
— | |||||||
Payment of offering costs |
— | ( |
) | |||||
Proceeds from sale of Units, net of underwriting discount paid |
— | |||||||
Proceeds from sale of Placement Units |
— | |||||||
Repayment of promissory note – related party |
( |
) | ||||||
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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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Non-Cash investing and financing activities: |
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Offering costs paid by Sponsor in exchange for issuance of founder shares |
$ | — | $ | |||||
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Initial classification of Class A common stock subject to possible redemption |
$ | — | $ | |||||
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Deferred underwriting fee payable |
$ | — | $ | |||||
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|
|
|
As Previously Reported |
Adjustment |
As Revised |
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Balance Sheet as of December 31, 2020 (audited) |
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Class A common stock subject to possible redemption |
$ | $ | $ | |||||||||
Class A common stock |
$ | $ | ( |
) | $ | |||||||
Additional paid-in capital |
$ | $ | ( |
) | $ | — | ||||||
Retained earnings |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Total Stockholders’ Equity (Deficit) |
$ | $ | ( |
) | $ | ( |
) | |||||
Statement of Cash Flows for the period from May 22, 2020 (inception) through September 30, 2020 (unaudited) |
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Initial classification of Class A common stock subject to possible redemption |
$ | $ | $ | |||||||||
Change in value of Class A common stock subject to possible redemption |
$ | $ | ( |
) | $ | — |
Gross proceeds |
$ | |||
Less: |
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Proceeds allocated to Public Warrants |
( |
) | ||
Class A common stock issuance costs |
( |
) | ||
Plus: |
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Accretion of carrying value to redemption value |
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Class A common stock subject to possible redemption |
$ |
|||
Three Months Ended September 30, 2021 |
Three Months Ended September 30, 2020 |
Nine Months Ended September 30, 2021 |
For the Period from May 22 ,2020 (Inception) Through September 30, 2020 |
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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 common stock |
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Numerator: |
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Allocation of net income (loss), as adjusted |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Denominator: |
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Basic and diluted weighted average stock outstanding |
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Basic and diluted net income (loss) per common stock |
$ | $ | $ | $ | $ | $ | $ | $ |
(1) |
The weighted average non-redeemable common stock for the three and nine months ended September 30, 2021 includes the effect of |
• | 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 an assessment of the assumptions that market participants would use in pricing the asset or liability. |
Held-To-Maturity |
Level |
Amortized Cost |
Gross Holding Gain (Loss) |
Fair Value |
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September 30, 2021 |
1 | $ | $ | $ | ||||||||||||||
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December 31, 2020 |
1 | |||||||||||||||||
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Description |
Level |
September 30, 2021 |
December 31, 2020 |
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Assets: |
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Investments – U.S. Treasury Securities |
1 | $ | $ | |||||||||
Investments – U.S. Treasury Securities Money Market Fund |
1 | |||||||||||
Liabilities: |
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Warrant Liability – Public Warrants |
1 | |||||||||||
Warrant Liability – Placement Warrants |
3 |
September 30, 2021 |
December 31, 2020 |
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Risk-free interest rate |
% | % | ||||||
Expected term (years) |
||||||||
Expected volatility |
% | % | ||||||
Exercise price |
$ | $ | ||||||
Stock price |
$ | $ |
Private Placement |
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Fair value as of January 1, 2021 |
$ | |||
Change in fair value |
( |
) | ||
Fair value as of March 1, 202 1 |
|
$ |
|
|
Change in fair valu e |
|
|
|
|
Fair value as of June 30, 202 1 |
|
$ |
|
|
Change in fair valu e |
|
|
( |
) |
|
|
|||
Fair value as of September 30, 2021 |
$ | |||
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* | Filed herewith. |
** | Furnished herewith. |
E.MERGE TECHNOLOGY ACQUISITION CORP. | ||||||
Date: November 5, 2021 | /s/ Jeff Clarke | |||||
Name: | Jeff Clarke | |||||
Title: | Co-Chief Executive Officer andChief Financial Officer | |||||
( Principal Executive Officer and Principal Financial and Accounting Officer | ||||||
Date: November 5, 2021 | /s/ Guy Gecht | |||||
Name: | Guy Gecht | |||||
Title: | Co-Chief Executive Officer | |||||
(Principal Executive Officer) |