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 |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
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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June 30, 2022 |
December 31, 2021 |
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(Unaudited) |
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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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Forward purchase agreement derivative asset |
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Marketable securities held in Trust Account |
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TOTAL ASSETS |
$ |
$ |
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LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT |
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Current liabilities |
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Accrued expenses |
$ | $ | ||||||
Accrued offering costs |
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Income taxes payable |
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Due to related party |
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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, $ per share redemption value as of June 30, 2022 and December 31, 2021 |
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Stockholders’ Deficit |
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Preferred stock, $ |
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Class A common stock, $ shares issued or outstanding (excluding |
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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’ Deficit |
( |
) |
( |
) | ||||
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TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT |
$ |
$ |
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For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
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2022 |
2021 |
2022 |
2021 |
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General and administrative expenses |
$ | $ | $ | $ | ||||||||||||
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Loss from operations |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||
Other income (expenses): |
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Change in fair value of warrant liabilities and forward purchase agreement derivative asset |
( |
) | ||||||||||||||
Interest earned on marketable securities held in Trust Account |
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Total other income (expense), net |
( |
) |
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Income (Loss) before provision for income taxes |
( |
) |
( |
) | ||||||||||||
Provision for income taxes |
( |
) | ( |
) | ||||||||||||
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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 net income (loss) per share, Class A common stock |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
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Weighted average shares outstanding, Class B common stock |
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Basic and diluted net income (loss) per share, Class B common stock |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||
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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 |
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Shares |
Amount |
Shares |
Amount |
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Balance — January 1, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – March 31, 2022 (unaudited) |
( |
) |
( |
) | ||||||||||||||||||||||||
Accretion for Class A common stock to redemption value |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance – June 30, 2022 (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 — 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) |
( |
) |
( |
) | ||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance – June 30, 2021 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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For the Six Months Ended June 30, 2022 |
For the Six Months Ended June 30, 2021 |
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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 |
— | |||||||
Operating costs paid through promissory note |
— | |||||||
Change in fair value of warrant liabilities and forward purchase agreement derivative asset |
( |
) | ( |
) | ||||
Transaction costs incurred in connection with warrant liabilities |
— | |||||||
Interest earned on marketable securities held in Trust Account |
( |
) | ( |
) | ||||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ( |
) | ||||
Accrued expenses |
||||||||
Accrued offering costs |
( |
) |
||||||
Income taxes payable |
— | |||||||
Due to related party |
— | |||||||
Net cash used in operating activities |
( |
) |
( |
) | ||||
Cash Flows from Investing Activities: |
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Cash withdrawn from Trust Account to pay franchise taxes |
— | |||||||
Investment of cash in Trust Account |
— | ( |
) | |||||
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 Placements Warrants |
— | |||||||
Due from Sponsor |
— | ( |
) | |||||
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 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 included in accrued offering costs |
$ | — | $ | ( |
) | |||
Offering costs paid through promissory note |
$ | — | $ | |||||
Payment of prepaid expenses through promissory note |
$ | — | $ | |||||
Deferred underwriting fee payable |
$ |
— |
$ |
|||||
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 December 31, 2021 |
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Plus: |
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Accretion of carrying value to redemption value |
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Class A common stock subject to possible redemption June 30, 2022 |
$ |
|||
For the Three Months Ended June 30, 2022 |
For the Three Months Ended June 30, 2021 |
For the Six Months Ended June 30, 2022 |
For the Six Months Ended June 30, 2021 |
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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 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 |
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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 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. |
Held-To-Maturity |
Level |
Amortized Cost |
Gross Holding Loss |
Fair Value |
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Assets: |
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June 30, 2022 |
U.S. Treasury Securities (Mature on 9/15/2022) | 1 | $ | $ | ( |
) | $ | |||||||||||
June 30, 2022 |
FPA Derivative Asset | 3 | $ | |||||||||||||||
December 31, 2021 |
Marketable Securities held in Trust Account –Treasury Trust Money Market Fund | 1 | $ | |||||||||||||||
December 31, 2021 |
FPA Derivative Asset | 3 | $ | |||||||||||||||
Liabilities: |
||||||||||||||||||
June 30, 2022 |
Warrant Liability – Public Warrants | 2 |
$ | |||||||||||||||
June 30, 2022 |
Warrant Liability – Private Placement Warrants | 2 | $ | |||||||||||||||
December 31, 2021 |
Warrant Liability – Public Warrants | 2 |
$ | |||||||||||||||
December 31, 2021 |
Warrant Liability – Private Placement Warrants | 2 | $ |
June 30, 2022 |
December 31, 2021 |
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Forward Purchase Price (per unit) |
$ | $ | ||||||
Underlying Asset Price (per share) |
$ | $ | ||||||
Number of Warrants per unit |
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Concluded Unit Value |
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Time to Maturity (Years) |
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Risk Free Rate |
% | % |
Private Placement |
Public |
Warrant Liabilities |
||||||||||
Fair value as of January 1, 2021 |
$ | $ | $ | |||||||||
Initial measurement on January 28, 2021 |
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Change in fair value |
( |
) | ( |
) | ( |
) | ||||||
Fair value as of March 31, 2021 |
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Transfer to Level 1 |
( |
) | ( |
) | ||||||||
Change in fair value |
||||||||||||
Fair value as of June 30, 2021 |
$ |
$ |
$ |
|||||||||
Forward Purchase Agreement (Asset)/Liability |
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Fair value as of January 1, 2022 |
$ | ( |
) | |
Change in fair value |
( |
) | ||
Fair value as of March 31, 2022 |
( |
) | ||
Change in fair value |
( |
) | ||
Fair value as of June 30, 2022 |
$ | ( |
) | |
Forward Purchase Agreement (Asset)/Liability |
||||
Fair value as of January 1, 2021 |
$ | |||
Initial measurement on January 28, 2021 |
||||
Change in fair value |
||||
Fair value as of March 31, 2021 |
||||
Change in fair value |
( |
) | ||
Fair value as of June 30, 2021 |
$ | |||
* | Filed herewith. |
** | Furnished. |
HUDSON EXECUTIVE INVESTMENT CORP. II | ||||||
Date: August 15, 2022 | By: | /s/ Douglas G. Bergeron | ||||
Name: | Douglas G. Bergeron | |||||
Title: | Chief Executive Officer (Principal Executive Officer) | |||||
Date: August 15, 2022 | By: | /s/ Ira Mosberg | ||||
Name: | Ira Mosberg | |||||
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |