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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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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Item 1. |
Financial Statements |
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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. |
17 |
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Item 3. |
19 |
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Item 4. |
19 |
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Item 1. |
20 |
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Item 1A. |
21 |
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Item 2. |
21 |
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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 |
September 30, 2021 |
December 31, 2020 |
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(Unaudited) |
(Revised) |
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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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Marketable securities 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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Accrued expenses |
$ | $ | ||||||
Promissory note – related party |
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Total Current Liabilities |
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Warrant liability |
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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, $ |
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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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Accumulated deficit |
( |
) | ( |
) | ||||
Total Stockholders’ Deficit |
( |
) |
( |
) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
$ |
$ |
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Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2021 |
For the Period from July 7, 2020 (Inception) Through September 30, 2020 (Revised) |
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Operating and formation costs |
$ | $ | $ | |||||||||
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Loss from operations |
( |
) |
( |
) |
( |
) | ||||||
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Other income |
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Interest earned on marketable securities held in Trust Account |
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Unrealized gain (loss) on marketable securities held in Trust Account |
( |
) | ( |
) | ||||||||
Change in fair value of warrant liability |
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Warrant liability in excess of purchase price of private warrants |
|
|
— |
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|
— |
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( |
) |
Transaction costs associated with the Initial Public Offering |
— | — | ( |
) | ||||||||
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Total other income, net |
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Income before benefit from (provision for) income taxes |
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(Provision for) Benefit from 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 |
Ac c umulatedDeficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance — January 1, 2021 |
$ | $ |
$ | $ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Accretion for Class A common stock to redemption value |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Balance – March 31, 2021 |
$ | $ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Accretion for Class A common stock to redemption value |
— | — | — | — | — | |||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Balance – June 30, 2021 |
$ | $ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Balance – September 30, 2021 |
$ | $ |
$ | — | ( |
) |
( |
) | ||||||||||||||||||||
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 — July 7, 2020 (Inception) |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Issuance of Class B common stock to Sponsor |
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Accretion for Class A common stock to redemption value |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||
Net income |
— | — | — | |||||||||||||||||||||||||
Balance – September 30, 2020 |
$ | $ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
Nine Months Ended September 30, |
For the Period from July 7, 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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Interest earned on marketable securities held in Trust Account |
( |
) | ( |
) | ||||
Unrealized loss on marketable securities held in Trust Account |
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Change in fair value of warrant liability |
( |
) | ( |
) | ||||
Warrant liability in excess of purchase price of Private Placement Warrants |
— |
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Transaction costs associated with Initial Public Offering |
— |
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Deferred tax benefit |
— | ( |
) | |||||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||||||
Accrued expenses |
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Net cash used in operating activities |
( |
) |
( |
) | ||||
Cash Flows from Investing Activities: |
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Investment of cash into Trust Account |
— | ( |
) | |||||
Cash withdrawn from Trust Account to pay franchise and i n come taxes |
— | |||||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
Cash Flows from Financing Activities: |
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Proceeds from sale of Units, net of underwriting discounts paid |
— | |||||||
Proceeds from sale of Private Placement Warrants |
— | |||||||
Proceeds from promissory note – related party |
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Repayment of promissory note – related party |
— | ( |
) | |||||
Payment of offering costs |
— | ( |
) | |||||
Net cash provided by financing activities |
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Net Change in Cash |
( |
) |
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Cash – Beginning |
— | |||||||
Cash – Ending |
$ |
$ |
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Supplemental cash flow information: |
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Cash paid for income taxes |
$ | $ | ||||||
Non-cash investing and financing activities: |
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Offering costs included in accrued offering costs |
$ | $ | ||||||
Offering costs paid by Sponsor in exchange for issuance of Founder Shares |
$ | |
$ | |||||
Initial classification of Class A common stock subject to possible redemption |
$ | |
$ | |||||
Change in value of Class A common stock subject to possible redemption |
$ | ( |
) | $ | ( |
) | ||
Deferred underwriting fee payable |
$ | |
$ | |||||
As Previously Reported |
Adjustment |
As Revised |
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Balance Sheet as of December 31, 2020 |
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Class A common stock subject to possible redemption |
$ | $ | $ | |||||||||
Class A common stock |
$ | $ | ( |
) | $ | |||||||
Additional paid-in capital |
$ | $ | ( |
) | $ | — | ||||||
Accumulated deficit |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Total Stockholders’ Equity (Deficit) |
$ | $ | ( |
) | $ | ( |
) | |||||
Statement of Operations for the Period from July 7, 2020 (inception) through September 30, 2020 |
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Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption |
( |
) | ||||||||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock |
( |
) | ||||||||||
Basic and diluted net income ( loss) per share, Non-redeemable common stock |
$ | $ | ( |
) | $ | |||||||
Weighted average shares outstanding of Class A common stock |
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Basic and diluted net income per share, Class A common stock |
$ | $ | $ | |||||||||
Weighted average shares outstanding of Class B common stock |
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Basic and diluted net income per share, Class B common stock |
$ | $ | $ | |||||||||
Statement of Cash Flows for the Period from July 7, 2020 (inception) through September 30, 2020 |
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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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|
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Class A common stock subject to possible redemption |
$ | |||
|
|
Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2021 |
For the Period from July 7, 2020 (Inception) Through September 30, 2020 |
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Class A |
Class B |
Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income per common share |
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Numerator: |
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Allocation of net income, as adjusted |
$ | $ | $ | $ | $ | $ | ||||||||||||||||||
Denominator: |
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Basic and diluted weighted average shares outstanding |
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Basic and diluted net income per common share |
$ | $ | $ | $ | $ | $ |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the reported last reported sale price of the Class A common stock for any |
• | in whole and not in part; |
• | at $ |
• | if, and only if, the Reference Value equals or exceeds $ |
• | 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 the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description |
Level |
September 30, 2021 |
December 31, 2020 |
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Assets: |
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Marketable securities held in Trust Account |
1 | $ | $ | |||||||||
Liabilities: |
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Warrant Liability – Public Warrants |
1 | $ | $ | |||||||||
Warrant Liability – Private Placement Warrants |
2 | $ | $ |
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 |
No. |
Description of Exhibit | |
31.1* | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2* | Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1** | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2** | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS* | Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL Document | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | The cover page from the Company’s Quarterly report on Form 10-Q for the quarter ended September 30, 2021, has been formatted in Inline XBRL and is included in Exhibits 101. |
* | Filed herewith. |
** | Furnished. |
EQUITY DISTRIBUTION ACQUISITION CORP. | ||||||
Date: November 3, 2021 | By: | /s/ William A. Galvin | ||||
Name: | William A. Galvin | |||||
Title: | Chief Executive Officer | |||||
(Principal Executive Officer) | ||||||
Date: November 3, 2021 | By: | /s/ Philip Tinkler | ||||
Name: | Philip Tinkler | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |