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 |
||||
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 |
||||||
Item 1. |
1 |
|||||
1 |
||||||
2 |
||||||
3 |
||||||
4 |
||||||
5 |
||||||
Item 2. |
21 |
|||||
Item 3. |
24 |
|||||
Item 4. |
24 |
|||||
Item 1. |
25 |
|||||
Item 1A. |
25 |
|||||
Item 2. |
25 |
|||||
Item 3. |
25 |
|||||
Item 4. |
25 |
|||||
Item 5. |
25 |
|||||
Item 6. |
26 | |||||
27 |
September 30, 2021 |
December 31, 2020 |
|||||||
(Unaudited) |
||||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash |
$ | $ | ||||||
Prepaid expenses |
||||||||
Total Current Assets |
||||||||
Cash and investments held in Trust Account |
||||||||
TOTAL ASSETS |
$ |
$ |
||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
||||||||
Current liabilities |
||||||||
Accounts payable and accrued expenses |
$ | $ | ||||||
Income taxes payable |
||||||||
Total Current Liabilities |
||||||||
Warrant liabilities |
||||||||
Deferred underwriting fee payable |
||||||||
Total Liabilities |
||||||||
Commitments and Contingencies |
||||||||
Class A common stock subject to possible redemption, $ $ par value; per share at redemption value as of September 30, 2021 and December 31, 2020 |
||||||||
Stockholders’ Deficit |
||||||||
Preferred Stock, $ |
||||||||
Class A common stock, $ |
||||||||
Class B common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total Stockholders’ Deficit |
( |
) |
( |
) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
$ |
$ |
||||||
For The Three Months Ended September 30, |
Nine months Ended September 30, |
For the Period from May 22, 2020 (Inception) through September 30, |
||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
General and administrative expenses |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other income (loss): |
||||||||||||||||
Interest earned on investments held in Trust Account |
||||||||||||||||
Change in fair value of warrant liabilitie s |
||||||||||||||||
Transaction cost related to warrant liability |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other income (loss), net |
||||||||||||||||
Income before provision for income taxes |
||||||||||||||||
Provision for income taxes |
( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class A common stock |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class A common stock |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class B common stock |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class B common stock |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance – January 1, 2021 |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — |
|||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance – March 31, 2021 (unaudited) – See Note 2 as restated |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Net (loss) |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance – June 30, 2021 (unaudited) – See Note 2 as restated |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance – September 30, 2021 (unaudited) |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Equity (Deficit) |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance – May 22, 2020 (Inception) |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Issuance of Founder Shares to Sponsor |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance – June 30, 2020 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||||
Sale of |
— | — | — | |||||||||||||||||||||||||
Accretion for Class A co m mon stock to redemption amount |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Forfeiture of Founder Shares |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance – September 30, 2020 (unaudited),—See Note 2 as restated |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months Ended September 30, |
For the Period from May 22, 2020 (Inception) Through September 30, |
|||||||
2021 |
2020 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
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: |
||||||||
Prepaid expenses |
( |
) | ||||||
Accounts payable and accrued expenses |
||||||||
Income taxes payable |
||||||||
|
|
|
|
|||||
Net cash used in operating activities |
( |
) |
( |
) | ||||
|
|
|
|
|||||
Cash Flows from Investing Activities: |
||||||||
Cash withdrawn from Trust Account to pay franchise and income taxes |
— | |||||||
Investment of cash into trust Account |
— | ( |
) | |||||
|
|
|
|
|||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
|
|
|
|
|||||
Cash Flows from Financing Activities: |
||||||||
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 |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by Financing Activities |
— | |||||||
|
|
|
|
|||||
Net Change in Cash |
( |
) |
||||||
Cash – Beginning of period |
— | |||||||
|
|
|
|
|||||
Cash – End of period |
$ |
$ |
||||||
|
|
|
|
|||||
Non-Cash Investing and Financing Activities: |
||||||||
Offering costs paid by Sponsor in exchange for issuance of founder shares |
$ | — | $ | |||||
|
|
|
|
|||||
Deferred underwriting fee payable |
$ | — | $ | |||||
|
|
|
|
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Balance Sheet as of March 31, 2021 (unaudited) |
||||||||||||
Class A common stock subject to possible redemption |
$ | $ | $ | |||||||||
Class A common stock |
$ | $ | ( |
) | $ | |||||||
Additional paid-in capital |
$ | $ | ( |
) | $ | — | ||||||
Accumulated deficit |
$ | $ | ( |
) | $ | ( |
) | |||||
Total stockholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Balance Sheet as of June 30, 2021 (unaudited) |
||||||||||||
Class A common stock subject to possible redemption |
$ |
$ |
$ |
|||||||||
Class A common stock |
$ |
$ |
( |
) |
$ |
|||||||
Additional paid-in capital |
$ |
$ |
( |
) |
$ |
— |
||||||
Accumulated deficit |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Total stockholders’ equity (deficit) |
$ | $ | ( |
) | $ | ( |
) | |||||
Statement of Cash Flows for the Three Months Ended March 31, 2021 (unaudited) |
||||||||||||
Change in value of Class A common stock subject to possible redemption |
$ | $ | ( |
) | $ | — | ||||||
Statement of Cash Flows for the Three Months Ended June 30, 2021 (unaudited) |
||||||||||||
Change in value of Class A common stock subject to possible redemption |
$ | $ | ( |
) | $ | — | ||||||
Statement of Operations for the three months ended March 31, 2021 (unaudited) |
||||||||||||
Weighted average shares outstanding of Class A common stock |
||||||||||||
Basic and diluted net income per common share, Class A common stock |
$ |
— |
$ |
$ |
||||||||
Weighted average shares outstanding of Class B common stock |
( |
) |
||||||||||
Basic and diluted net income (loss) per common share, Class B common stock |
$ |
$ |
( |
) |
$ |
|||||||
Statement of Operations for the three months ended June 30, 2021 (unaudited) |
||||||||||||
Weighted average shares outstanding of Class A common stock |
||||||||||||
Basic and diluted net loss per common share, Class A common stock |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||
Weighted average shares outstanding of Class B common stock |
( |
) |
||||||||||
Basic and diluted net loss per common share, Class B common stock |
$ |
( |
) |
$ |
$ |
( |
) | |||||
Statement of Operations for the six months ended June 30, 2021 (unaudited) |
||||||||||||
Weighted average shares outstanding of Class A common stock |
||||||||||||
Basic and diluted net income per common share, Class A common stock |
$ |
— |
$ |
$ |
||||||||
Weighted average shares outstanding of Class B common stock |
( |
) |
||||||||||
Basic and diluted net income (loss) per common share, Class B common stock |
$ |
$ |
( |
) |
$ |
Gross proceeds |
$ | |||
Less: |
||||
Proceeds allocated to Public Warrants |
( |
) | ||
Class A common stock issuance costs |
( |
) | ||
Plus: |
||||
Accretion of carrying value to redemption value |
||||
|
|
|||
Class A common stock subject to possible redemption |
$ |
|||
|
|
Three Months Ended September 30, 2021 |
Three Months Ended September 30, |
Nine Months Ended September 30, 2021 |
For the Period from May 22 ,2020 (Inception) Through September 30, 2020 |
|||||||||||||||||||||||||||||
Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
|||||||||||||||||||||||||
Basic and diluted net income (loss) per common stock |
||||||||||||||||||||||||||||||||
Numerator: |
||||||||||||||||||||||||||||||||
Allocation of net income (loss), as adjusted |
$ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Denominator: |
||||||||||||||||||||||||||||||||
Basic and diluted weighted average stock outstanding |
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
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 Initial Public Offering on August 4, 2020. |
• |
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 |
||||||||||||||
September 30, 2021 |
1 | $ | $ | $ | ||||||||||||||
|
|
|
|
|
|
|||||||||||||
December 31, 2020 |
1 | |||||||||||||||||
|
|
|
|
|
|
|
Description |
|
Level |
September 30, 2021 |
December 31, 2020 |
|||||||||||
Assets: |
|
|
|
|
||||||||||||
Investments – U.S. Treasury Securities |
|
|
|
|
1 | $ | $ | |||||||||
Investments – U.S. Treasury Securities Money Market Fund |
|
|
|
|
1 | |||||||||||
Liabilities: |
|
|
|
|
||||||||||||
Warrant Liability – Public Warrants |
|
|
|
|
1 | |||||||||||
Warrant Liability – Placement Warrants |
|
|
|
|
3 |
|
September 30, 2021 |
December 31, 2020 |
||||||
Risk-free interest rate |
% | % | ||||||
Expected term (years) |
||||||||
Expected volatility |
% | % | ||||||
Exercise price |
$ | $ | ||||||
Stock price |
$ | $ |
Private Placement |
||||
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 |
$ | |||
|
|
* | Filed herewith. |
** | Furnished herewith. |
E.MERGE TECHNOLOGY ACQUISITION CORP. | ||||||
Date: January 18, 2022 | /s/ Jeff Clarke | |||||
Name: | Jeff Clarke | |||||
Title: | Co-Chief Executive Officer andChief Financial Officer | |||||
( Principal Executive Officer and Principal Financial and Accounting Officer | ||||||
Date: January 18, 2022 | /s/ Guy Gecht | |||||
Name: | Guy Gecht | |||||
Title: | Co-Chief Executive Officer | |||||
(Principal Executive Officer) |