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) |
(IRS Employer Identification No.) |
(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-fifth of one redeemable warrant to acquire one Class A ordinary share |
The | |||
The | ||||
The |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
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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Investments held in Trust Account |
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Total Assets |
$ |
$ |
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Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit: |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Accrued expenses |
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Total current liabilities |
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Deferred underwriting commissions |
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Derivative warrant liabilities |
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Total liabilities |
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Commitments and Contingencies |
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Class A ordinary shares subject to possible redemption; |
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Shareholders’ Deficit: |
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Preference shares, $ |
— | |||||||
Class A ordinary shares, $ non-redeemable Class A ordinary shares issued or outstanding at June 30, 2022 and December 31, 2021 |
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Class B ordinary shares, $ |
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Additional paid-in capital |
— | |||||||
Accumulated deficit |
( |
) | ( |
) | ||||
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Total shareholders’ deficit |
( |
) | ( |
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Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit |
$ |
$ |
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Three Months Ended June 30, |
Six Months Ended June 30, |
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2022 |
2021 |
2022 |
2021 |
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General and administrative expenses |
$ | $ | $ | $ | ||||||||||||
Administrative expenses—related party |
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Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other income (expenses): |
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Change in fair value of derivative warrant liabilities |
( |
) | — | |||||||||||||
Financing costs—derivative warrant liabilities |
— | — | — | ( |
) | |||||||||||
Interest income from investments held in Trust Account |
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Net income (loss) |
$ | $ | ( |
) | $ | |
$ | ( |
) | |||||||
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Weighted average number of Class A ordinary shares—basic and diluted |
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Basic and diluted net income (loss) per share, Class A |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
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Weighted average number of Class B ordinary shares—basic and diluted |
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Basic and diluted net income (loss) per share, Class B |
$ | $ | ( |
) | $ | $ | ( |
) | ||||||||
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Ordinary Shares |
Additional Paid-in Capital |
Total Shareholders’ Deficit |
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Class A |
Class B |
Accumulated Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance—December 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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Balance—March 31, 2022 |
( |
) | ( |
) | ||||||||||||||||||||||||
Increase in redemption value of Class A ordinary shares subject to possible redemption |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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Balance—June 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
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Ordinary Shares |
Additional Paid-in Capital |
Total Shareholders’ Deficit |
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Class A |
Class B |
Accumulated Deficit |
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Shares |
Amount |
Shares |
Amount |
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Balance—December 31, 2020 |
$ |
$ |
$ |
$ |
( |
) |
$ |
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Excess of cash received over fair value of private placement warrants |
— |
— |
— |
— |
— |
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Remeasurement of Class A ordinary shares subject to possible redemption |
— |
— |
— |
— |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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Balance—March 31, 2021 |
( |
) |
( |
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Forfeiture of Class B ordinary shares |
— |
— |
( |
) | ( |
) | — |
— |
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Remeasurement of Class A ordinary shares subject to possible redemption |
— |
— |
— |
— |
( |
) | — |
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Net loss |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
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Balance—June 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
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Six Months Ended June 30, |
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2022 |
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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Interest income from investments held in Trust Account |
( |
) | ( |
) | ||||
Financing costs—derivative warrant liabilities |
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Change in fair value of derivative warrant liabilities |
( |
) | ||||||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
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Accounts payable |
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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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Cash deposited 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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Repayment of note payable to related party |
( |
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Proceeds received from initial public offering, gross |
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Proceeds received from private placement |
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Offering costs paid |
( |
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Net cash provided by financing activities |
( |
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Net increase in cash |
( |
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Cash—beginning of the period |
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Cash—end of the period |
$ |
$ |
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Supplemental disclosure of noncash investing and financing activities: |
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Offering costs included in accrued expenses |
$ | $ | ||||||
Offering costs paid by related party under promissory note |
$ | $ | ||||||
Reversal of accrued expenses |
$ | $ | ||||||
Outstanding accounts payable balance paid by related party under note payable |
$ | $ | ||||||
Deferred underwriting commissions |
$ | $ | ||||||
Accretion of Class A ordinary shares subject to possible redemption |
$ | $ |
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Three Months Ended June 30, |
Six Months Ended June 30, |
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2022 |
2021 |
2022 |
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 ordinary share: |
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Numerator: |
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Allocation of net income (loss)—basic and diluted |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||||||
Denominator: |
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Basic and diluted weighted average ordinary shares outstanding |
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Basic and diluted net income (loss) per ordinary share |
$ | $ | $ | ( |
) | $ | ( |
) | $ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||||||
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• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of 30 days’ prior written notice of redemption (the “30-day redemption period”); and |
• | if, and only if, the last reported sale price (the “closing price”) of Class A ordinary shares equals or exceeds $18.00 per share (as adjusted) for any |
• | in whole and not in part; |
• | at $ provided |
• | if, and only if, the closing price of Class A ordinary shares equals or exceeds $10.00 per share (as adjusted) for any |
• | if the closing price of the Class A ordinary shares for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted) the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. |
Gross proceeds |
$ | |
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Less: |
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Proceeds allocated to public warrants |
( |
) | ||
Class A ordinary share issuance costs |
( |
) | ||
Plus: |
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Remeasurement of carrying value to redemption value |
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Class A ordinary share subject to possible redemption, December 31, 2021 |
$ | |||
Increase in redemption value of Class A ordinary shares subject to redemption |
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|
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Class A ordinary share subject to possible redemption, June 30, 2022 |
$ | |||
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Description |
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Assets: |
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Investments held in Trust Account |
$ | $ | $ | |||||||||
Liabilities: |
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Derivative warrant liabilities—Public |
$ | $ | $ | — | ||||||||
Derivative warrant liabilities—Private |
$ | $ | $ |
Description |
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Assets: |
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Investments held in Trust Account |
$ | $ | $ | |||||||||
Liabilities: |
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Derivative warrant liabilities—Public |
$ | $ | $ | — | ||||||||
Derivative warrant liabilities—Private |
$ | $ | $ |
• | falling overall demand for goods and services, leading to reduced profitability; |
• | reduced credit availability; |
• | higher borrowing costs; |
• | reduced liquidity; |
• | volatility in credit, equity and foreign exchange markets; and |
• | bankruptcies. |
INDEPENDENCE HOLDINGS CORP. | ||||||||
Date: August 18, 2022 | By: |
/s/ John Lawrence Furlong | ||||||
Name: |
John Lawrence Furlong | |||||||
Title: |
Chief Executive Officer (Principal Executive Officer) | |||||||
Date: August 18, 2022 | By: |
/s/ Jaskaran Heir | ||||||
Name: |
Jaskaran Heir | |||||||
Title: |
Chief Financial Officer (Principal Financial and Accounting Officer) |