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 Number) | |
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(Address of principal executive offices) |
(Zip Code) |
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 No. |
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4 |
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Item 1. |
4 |
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4 |
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5 |
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6 |
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7 |
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8 |
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Item 2. |
20 |
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Item 3. |
23 |
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Item 4. |
23 |
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24 |
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Item 1. |
24 |
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Item 1A. |
24 |
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Item 2. |
25 |
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Item 3. |
25 |
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Item 4. |
25 |
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Item 5. |
25 |
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Item 6. |
26 |
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27 |
• | our ability to select an appropriate target business or businesses; |
• | our ability to complete our initial business combination; |
• | our expectations around the performance of the prospective target business or businesses; |
• | our success in retaining or recruiting, or changes required in, our officers, key employees or directors following our initial business combination; |
• | our officers and directors allocating their time to other businesses and potentially having conflicts of interest with our business or in approving our initial business combination; |
• | our potential ability to obtain additional financing to complete our initial business combination; |
• | our pool of prospective target businesses; |
• | our ability to consummate an initial business combination due to the uncertainty resulting from the recent COVID-19 pandemic; |
• | the ability of our officers and directors to generate a number of potential business combination opportunities; |
• | our public securities’ potential liquidity and trading; |
• | the lack of a market for our securities; |
• | the use of proceeds not held in the Trust Account (as defined below) or available to us from interest income on the Trust Account balance; |
• | the Trust Account not being subject to claims of third parties; |
• | our financial performance; and |
• | the other risks and uncertainties discussed in “Risk Factors”. |
September 30, 2021 |
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(unaudited) |
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Assets: |
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Cash |
$ | |||
Prepaid Expenses |
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Total current assets |
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Other assets |
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Marketable securities held in Trust Account |
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Total Assets |
$ | |||
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Liabilities and Shareholders’ Equity |
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Accrued offering costs and expenses |
$ | |||
Due to related party |
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Total current liabilities |
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Deferred underwriting fee |
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Warrant liability |
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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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Preferred shares, $ |
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Class A ordinary shares, $ |
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Class B ordinary shares, $ |
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Additional paid-in capital |
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Accumulated deficit |
( |
) | ||
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Total shareholders’ deficit |
( |
) | ||
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Total Liabilities and Shareholders’ Deficit |
$ | |
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Three Months Ended September 30, 2021 |
For the Period from January 15, 2021 (Inception) to September 30, 2021 |
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Formation and operating costs |
$ | $ | ||||||
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Loss from operations |
( |
) | ( |
) | ||||
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Other income (expense): |
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Interest earned on marketable securities held in Trust Account |
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Offering costs allocated to warrants |
( |
) | ||||||
Change in fair value of warrant liability |
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Total other income |
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Net income |
$ | $ | ||||||
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Weighted average shares outstanding, Class A ordinary shares |
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Basic and diluted net income per ordinary share, Class A ordinary shares |
$ | $ | ||||||
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Weighted average shares outstanding, Class B ordinary shares |
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Basic and diluted net income per share, Class B ordinary shares |
$ | $ | ||||||
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Class A |
Class B |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders’ Equity |
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Ordinary shares |
Ordinary shares |
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Shares |
Amount |
Shares |
Amount |
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Balance as of January 15, 2021 (inception) |
$ | |
$ | $ | $ | $ | ||||||||||||||||||||||
Class B ordinary shares issued to Sponsor |
— | — | — | |||||||||||||||||||||||||
Excess Private Placement proceeds received over initial fair value of Private Placement Warrants |
— | — | — | — | — | |||||||||||||||||||||||
Forfeiture of Class B ordinary shares by initial shareholders |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
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Balance as of March 31, 2021 (restated) |
$ | $ | $ | $ | ( |
) | $ | ( |
) | |||||||||||||||||||
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Net income |
— | — | — | — | — | |||||||||||||||||||||||
Accretion of Ordinary shares subject to possible redemption |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance as of June 30, 2021 (restated) |
$ | $ | $ | $ | ( |
) | $ | ( |
) | |||||||||||||||||||
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Net income |
— | — | — | — | — | |||||||||||||||||||||||
Reissuance of forfeited Class B ordinary shares to initial shareholders |
— | — | — | ( |
) | — | ||||||||||||||||||||||
Accretion of Ordinary shares subject to possible redemption |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance as of September 30, 2021 |
$ | $ | |
$ | $ | ( |
) | $ | ( |
) | ||||||||||||||||||
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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 |
( |
) | ||
Offering costs allocated to warrants |
||||
Change in fair value of warrant liability |
( |
) | ||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||
Other assets |
( |
) | ||
Accrued expenses |
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Due to related party |
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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 issuance of Class B ordinary shares to Sponsor |
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Proceeds from sale of Units, net of underwriting discount |
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Proceeds from sale of Private Placement Warrants |
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Proceeds from promissory note related party |
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Payments 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 the period |
$ | |||
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Supplemental disclosure of cash flow information: |
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Initial classification of ordinary shares subject to possible redemption |
$ | |||
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Change in ordinary shares subject to possible redemption |
$ | |||
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Deferred underwriting commissions payable charged to additional paid in capital |
$ | |||
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As Reported |
Adjustment |
As Restated |
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Balance Sheet as of March 23, 2021 (as revised in footnote 2 of form 10-Q filed on July 9, 2021) |
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Ordinary shares subject to possible redemption |
$ | |
$ | $ | |
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Class A Ordinary shares, $ |
( |
) | ||||||||||
Class B Ordinary shares, $ |
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Additional Paid in Capital |
( |
) | ||||||||||
Accumulated Deficit |
( |
) | ( |
) | ( |
) | ||||||
Total Shareholders’ Equity (Deficit) |
$ | $ | ( |
$ | ( |
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Number of shares subject to redemption |
||||||||||||
Balance Sheet as of March 31, 2021 (per form 10Q filed on July 9, 2021) |
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Ordinary shares subject to possible redemption |
$ | $ | $ | |||||||||
Class A Ordinary shares, $ |
( |
) | ||||||||||
Class B Ordinary shares, $ |
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Additional Paid in Capital |
( |
) | ||||||||||
Accumulated Deficit |
( |
) | ( |
) | ( |
) | ||||||
Total Shareholders’ Equity (Deficit) |
$ | $ | ( |
$ | ( |
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Number of shares subject to redemption |
As Reported |
Adjustment |
As Restated |
||||||||||
Balance Sheet as of June 30, 2021 (per form 10Q filed on August 13, 2021) |
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Ordinary shares subject to possible redemption |
$ | $ | $ | |||||||||
Class A Ordinary shares, $ |
( |
) | ||||||||||
Class B Ordinary shares, $ |
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Additional Paid in Capital |
( |
) | ||||||||||
Accumulated Deficit |
( |
) | ( |
) | ||||||||
Total Shareholders’ Equity (Deficit) |
$ | $ | ( |
$ | ( |
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Number of shares subject to redemption |
Statement of Operations for the three months ended March 31, 2021 (per form 10-Q filed on July 9, 2021) |
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Weighted average shares outstanding, Class A ordinary shares subject to possible redemption |
( |
) |
||||||||||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Weighted average shares outstanding, Non-redeemable Class A and Class B ordinary shares |
( |
) |
||||||||||
Basic and diluted net income per shares, Non-redeemable Class A and Class B ordinary shares |
$ |
( |
) |
$ |
$ |
( |
) |
Statement of Operations for the three months ended June 30, 2021 (per form 10Q filed on August 13, 2021) |
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Weighted average shares outstanding, Class A ordinary shares subject to possible redemption |
||||||||||||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption |
$ | $ | $ | |||||||||
Weighted average shares outstanding, Non-redeemable Class A and Class B ordinary shares |
( |
) | ||||||||||
Basic and diluted net income per shares, Non-redeemable Class A and Class B ordinary shares |
$ | $ | ( |
) | $ | |||||||
Statement of Operations for the six months ended June 30, 2021 (per form 10Q filed on August 13, 2021) |
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Weighted average shares outstanding, Class A ordinary shares subject to possible redemption |
( |
) | ||||||||||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption |
$ | $ | $ | |||||||||
Weighted average shares outstanding, Non-redeemable Class A and Class B ordinary shares |
( |
) | ||||||||||
Basic and diluted net income per shares, Non-redeemable Class A and Class B ordinary shares |
$ | $ | ( |
) | $ |
As Reported |
Adjustments |
As Restated |
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Statement of Changes in Shareholders’ Equity (Deficit) for the Three Months Ended March 23, 2021 (per form 10-Q filed on July 9, 2021) |
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Sale of |
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Class A Ordinary shares – Shares |
( |
) |
||||||||||
Class A Ordinary shares – Amount |
$ |
$ |
( |
) |
$ |
|||||||
Additional Paid-in-Capital |
$ |
$ |
( |
) |
$ |
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Total Shareholders’ Equity |
$ |
$ |
( |
) |
$ |
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Ordinary shares subject to possible redemption |
||||||||||||
Class A Ordinary shares – Shares |
( |
) |
||||||||||
Class A Ordinary shares – Amount |
$ |
( |
) |
$ |
$ |
|||||||
Additional Paid-in-Capital |
$ |
( |
) |
$ |
( |
) |
$ |
|||||
Total Shareholders’ Equity |
$ |
( |
) |
$ |
( |
) |
$ |
|||||
Accretion of Class A Ordinary shares subject to possible redemption |
||||||||||||
Additional Paid-in-Capital |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Accumulated deficit |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Total Shareholders’ Equity |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Statement of Changes in Shareholders’ Equity (Deficit) for the Three Months Ended June 30, 2021 (per form 10-Q filed on August 13, 2021) |
||||||||||||
Ordinary shares subject to possible redemption |
||||||||||||
Class A Ordinary shares – Shares |
( |
) |
||||||||||
Class A Ordinary shares – Amount |
$ |
( |
) |
$ |
$ |
|||||||
Additional Paid-in-Capital |
$ |
( |
) |
$ |
$ |
|||||||
Total Shareholders’ Equity |
$ |
( |
) |
$ |
( |
) |
$ |
|||||
Accretion of Class A Ordinary shares subject to possible redemption |
||||||||||||
Accumulated deficit |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Total Shareholders’ Equity |
$ |
$ |
( |
) |
$ |
( |
) |
For the three months ended September 30, 2021 |
For the Period from January 15, 2021 (Inception) to September 30, 2021 |
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Net Income per share for Class A ordinary share: |
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Net income |
$ | $ | ||||||
Less: Allocation of income to Class B ordinary shares |
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Adjusted net income |
$ | $ | ||||||
Weighted average shares outstanding of Class A ordinary shares |
||||||||
|
|
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|
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Basic and diluted net income per share, Class A ordinary shares |
$ | $ | ||||||
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Net Income per share for Class B ordinary shares: |
||||||||
Net income |
$ | $ | ||||||
Less: Allocation of income to Class A ordinary shares |
||||||||
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|
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Adjusted net income |
$ | $ | ||||||
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|
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Basic and diluted weighted average shares outstanding of Class B ordinary shares |
||||||||
|
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|
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Basic net income per share, Class B ordinary shares |
$ | $ | ||||||
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• | in whole and not in part; |
• | at a price of $ |
• | upon a minimum of |
• | if, and only if, the closing price of the Class A ordinary shares equals or exceeds $ a warrant) for any |
• | in whole and not in part; |
• | at $ |
• | if, and only if, the closing price of the Company’s Class A ordinary shares equals or exceeds $ days within the three trading days before the Company sends the notice of redemption to the warrant holders; and |
• | if the closing price of the Class A ordinary shares for any |
Level 1 | — | Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. | ||
Level 2 | — | Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means. | ||
Level 3 | — | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
September 30, 2021 |
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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U.S. Money Market held in Trust Account |
$ | $ | $ | — | $ | — | ||||||||||
$ | $ | $ | — | $ | — | |||||||||||
Liabilities: |
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Public Warrants Liability |
$ | $ | $ | — | $ | — | ||||||||||
Private Placement Warrants Liability |
— | — | ||||||||||||||
$ | $ | $ | — | $ | ||||||||||||
Fair Value at January 15, 2021 (inception) |
$ | |||
Initial fair value of public and private warrants |
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Initial fair value of public and private warrants issued with over-allotment |
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Change in fair value of public and private warrants |
( |
) | ||
Transfer of public warrants to Level 1 |
( |
) | ||
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Fair Value at June 30, 2021 |
$ | |||
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Change in fair value of private warrants |
( |
) | ||
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|
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Fair Value at September 30, 2021 |
$ | |||
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Inputs |
(Initial Measurement) March 23, 2021 |
September 30, 2021 |
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Risk-free interest rate |
% | % | ||||||
Expected term remaining (years) |
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Expected volatility |
% | % | ||||||
Share price |
$ | $ |
* | Filed herewith. |
1 | Previously filed as an exhibit to our Current Report on Form 8-K filed on March 23, 2021 and incorporated by reference herein. |
LEVERE HOLDINGS CORP. | ||
By: | /s/ Stefan Krause | |
Name: | Stefan Krause | |
Title: | Chief Financial Officer |