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 Symbols |
Name of each exchange on which registered | ||
one-fourth of one redeemable warrant |
The | |||
The | ||||
The |
Large accelerated filer |
☐ |
Accelerated filer |
☐ | |||
Non-accelerated filer |
☒ |
Smaller reporting company |
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Emerging growth company |
(1) |
In September 2021, the registrant became a fully remote company. Accordingly, it does not maintain a principal executive office. |
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24 |
September 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 |
$ | $ | ||||||
Prepaid expenses and other current assets |
— | |||||||
Total Current Assets |
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Deferred offering costs |
— | |||||||
FPA derivative asset |
— | |||||||
Investments held in Trust Account |
— | |||||||
TOTAL ASSETS |
$ |
$ |
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LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
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Current liabilities |
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Accrued expenses |
$ | $ | ||||||
Accrued offering costs |
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Due to related party |
— | |||||||
Promissory note – related party |
— | |||||||
Total Current Liabilities |
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Warrant liabilities |
— | |||||||
Deferred underwriting fee payable |
— | |||||||
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) Equity |
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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) Equity |
( |
) |
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TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY |
$ |
$ |
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Three Months Ended September 30, |
Nine Months Ended September 30, |
For the Period from August 18, 2020 (Inception) through September 30, |
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2021 |
2021 |
2020 |
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General and administrative expenses |
$ | $ | $ | |||||||||
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Loss from operations |
( |
) | ( |
) | ( |
) | ||||||
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Other income: |
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Change in fair value of warrant liabilities and FPA |
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Interest earned on marketable securities held in Trust Account |
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Total other income |
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Net income (loss) |
$ |
$ |
$ |
( |
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Weighted average shares outstanding, Class A common stock |
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Basic and diluted 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 (loss) 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’ Equity (Deficit) |
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Shares |
Amount |
Shares |
Amount |
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Balance — January 1, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Excess of proceeds from the sale of Private Placement Warrants to Sponsor |
— | — | — | — | — | |||||||||||||||||||||||
Forfeiture of Founder Shares |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||||||
Accretion for Class A common stock to redemption value |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – March 31, 2021 (unaudited) |
( |
) |
( |
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Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance – June 30, 2021 (unaudited) |
— |
$ |
— |
$ |
$ |
— |
$ |
( |
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$ |
( |
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Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – September 30, 2021(unaudited) |
— |
$ |
— |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||
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Class A Common Stock |
Class B Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Equity (Deficit) |
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Shares |
Amount |
Shares |
Amount |
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Balance — August 18, 2020 (inception) (unaudited) |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Issuance of Class B common stock to Sponsor |
— |
— |
— | |||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
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Balance – September 30, 2020 (unaudited) |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
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Nine Months Ended September 30, 2021 |
For The Period From August 18, 2020 (Inception) Through September 30, 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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Operating costs paid by Sponsor |
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Operating costs paid through promissory note |
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Change in fair value of warrant liabilities and FPA |
( |
) | ||||||
Transaction costs incurred in connection with warrant liabilities |
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Interest earned on marketable securities held in Trust Account |
( |
) | ||||||
Changes in operating assets and liabilities: |
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Prepaid expenses and other current assets |
( |
) | ||||||
Due to related party |
— | |||||||
Accrued expenses |
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Net cash used in operating activities |
( |
) |
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Cash Flows from Investing Activities: |
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Investment of cash in Trust Account |
( |
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Net cash used in investing activities |
( |
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Cash Flows from Financing Activities |
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Proceeds from sale of Units, net of underwriting discounts paid |
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Proceeds from sale of Private Placements Warrants |
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Repayment of promissory note—related party |
( |
) | ||||||
Payment of offering costs |
( |
) | ||||||
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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 |
$ |
$ | ||||||
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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Offering costs included in accrued offering costs |
$ | $ | ||||||
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Offering costs paid through promissory note |
$ | $ | ||||||
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Payment of prepaid expenses through promissory note |
$ | $ | ||||||
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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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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 |
$ | |||
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Three Months Ended September 30, 2021 |
Nine Months Ended September 30, 2021 |
For the Period from August 18, 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 (loss) per common share |
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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 shares outstanding |
— | |||||||||||||||||||||||
Basic and diluted net income (loss) per common 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 common stock equals or exceeds $ a day period 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. |
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Level |
Fair Value |
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Assets: |
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September 30, 2021 |
Investments held in Trust Account – Treasury Trust Money Market Fund |
1 | $ | |||||||
September 30, 2021 |
FPA Derivative Asset |
3 | $ | |||||||
Liabilities: |
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September 30, 2021 |
Warrant Liability – Public Warrants |
1 | $ | |||||||
September 30, 2021 |
Warrant Liability – Private Placement Warrants |
3 | $ |
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September 30, 2021 |
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Stock Price |
$ | |||
Exercise Price |
$ | |||
Volatility |
% | |||
Term (years) |
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Dividend Yield |
% | |||
Risk Free Rate-Private Placement Warrants |
% | |||
Risk Free Rate-FPA |
% |
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Private Placement |
Public |
Warrant Liabilities |
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Fair value as of January 1, 2021 |
$ | $ | $ | |||||||||
Initial measurement on January 28, 2021 |
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Change in fair value |
( |
) | ( |
) | ( |
) | ||||||
Transfer to Level 1 |
( |
) | ( |
) | ||||||||
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Fair value as of March 31, 2021 |
$ | $ | $ | |||||||||
Change in fair value |
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Fair value as of June 30, 2021 |
$ | $ | $ | |||||||||
Change in fair value |
( |
) | ( |
) | ||||||||
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Fair value as of September 30, 2021 |
$ | $ | $ | |||||||||
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FPA Derivative |
||||
Fair value as of January 1, 2021 |
$ | — | ||
Initial measurement on January 28, 2021 |
( |
) | ||
Change in valuation inputs or other assumptions |
||||
Fair value as of September 30, 2021 |
$ | |||
* | Filed herewith. |
** | Furnished. |
HUDSON EXECUTIVE INVESTMENT CORP. II | ||||||
Date: November 12, 2021 | By: | /s/ Douglas G. Bergeron | ||||
Name: |
Douglas G. Bergeron | |||||
Title: |
Chief Executive Officer (Principal Executive Officer) |
Date: November 12, 2021 | By: | /s/ Ira Mosberg | ||||
Name: |
Ira Mosberg | |||||
Title: |
Chief Financial Officer (Principal Financial and Accounting Officer) |