QUARTERLY REPORT UNDER 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) |
(IRS Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-half of one redeemable warrant |
The | |||
The | ||||
The |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page |
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Item 1. |
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1 |
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2 |
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Unaudited Condensed Statement of Changes in Stockholder’s Equity (Deficit) Three Months ended September 30, 2021 and for the period from February 2, 2021 (inception) Through September 30, 2021 | 3 |
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4 |
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5 |
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Item 2. |
23 |
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Item 3. |
27 |
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Item 4. |
27 |
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Item 1. |
28 |
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Item 1A. |
28 |
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Item 2. |
29 |
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Item 3. |
29 |
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Item 4. |
29 |
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Item 5. |
29 |
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Item 6. |
30 |
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30 |
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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Derivative asset - forward purchase agreement |
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Investments 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 |
$ | |||
Franchise tax payable |
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Total curr e nt 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 (see Note 6) |
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Class A common stock subject to possible redemption, |
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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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Additional paid-in capital |
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Accumulated deficit |
( |
) | ||
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Total Stockholders’ Deficit |
( |
) | ||
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TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT |
$ |
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|
Three Months Ended September 30, 2021 |
For the Period from February 2, 2021 (Inception) Through September 30, 2021 |
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Formation and operating costs |
$ | $ | ||||||
Franchise tax expense |
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Loss from operations |
( |
) |
( |
) | ||||
Expensed offering costs |
( |
) | ( |
) | ||||
Unrealized gain on investments held in Trust Account |
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Change in fair value of derivative asset - forward purchase agreement |
( |
) | ( |
) | ||||
Change in fair value of warrant liabilities |
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Net income |
$ |
$ |
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Weighted average shares outstanding, basic and diluted |
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Basic and diluted net income per common share |
$ |
$ |
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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 at February 2, 2021 (inception) |
$ | $ | $ | $ | $ | |||||||||||||||||||||||
Issuance of Class B common stock to Sponsor (1) |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
Balance at June 30, 2021 |
— |
— |
( |
) |
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Excess of cash received over fair value of Private Placement Warrants |
— | — | — | — | ||||||||||||||||||||||||
Record fair value of initial derivative asset - forward purchase agreement |
— | — | — | — | ||||||||||||||||||||||||
Fair value of Founders Shares transferred to Anchor Investors |
— | — | — | — | ||||||||||||||||||||||||
Accretion of Class A common stock to redemption amount |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Forfeiture of Class B common stock |
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
Balance at September 30, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
(1) |
Includes up to c ommon stock that were subject to forfeiture if the over-allotment option was not exercised in full or in part by the underwriters (see Note 5). On S eptember 11, 2021, the over-allotment option expired. |
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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Offering costs allocatable to W a rrant Liability |
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Interest income on investments held in Trust Account |
( |
) | ||
Change in fair value of warrant liability |
( |
) | ||
Change in fair value of forward purchase asset |
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Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||
Accrued expenses |
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Franchise tax payable |
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Net cash used in operating activities |
( |
) | ||
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Cash Flows from Financing Activities: |
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Investment of cash into 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 Class B common stock to Sponsor |
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Proceeds from initial public offering, net of underwriter’s discount paid |
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Proceeds from the sale of private placement warrants |
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Proceeds from promissory note - related party |
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Repayment from 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 |
$ |
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Non-cash investing and financing activities |
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Deferred underwriting fee payable |
$ | |||
|
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Initial classification of derivative asset - forward purchase agreement |
$ | |||
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Accretion of Class A common stock subject to redemption to redemption value |
$ | |||
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Fair value of Founders Shares transferred to Anchor Investors |
$ | |||
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|
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Forfeiture of Class B common stock |
$ | |||
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Allocated Fair Value of Proceeds |
$ | |||
Less: |
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Issuance costs allocated to Class A common stock |
( |
) | ||
Plus: |
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Accretion of carrying value to redemption value |
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|
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Class A co m mon stock subject to possible redemption |
$ |
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Three Months Ended September 30, 2021 |
For the Period from February 2, 2021 (Inception) Through September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Basic and diluted net income per share: |
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Numerator: |
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Net income |
$ | $ | $ | $ | ||||||||||||
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Denominator: |
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Basic and diluted weighted average shares outstanding |
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Basic and diluted net income per 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 a price of $ |
• | if the closing price of the Class A common stock for any |
Description |
Amount at Fair Value |
Level 1 |
Level 2 |
Level 3 |
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September 30, 2021 |
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Assets |
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Investments held in Trust Account |
$ | $ | $ | $ | ||||||||||||
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Derivative asset—forward purchase agreement |
$ | $ | $ | $ | ||||||||||||
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Liabilities |
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Warrant liability – Public Warrants |
$ | $ | $ | $ | ||||||||||||
Warrant liability – Private Placement Warrants |
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Warrant Liabilities |
$ | $ | $ | $ | ||||||||||||
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As of August 5, 2021 (Initial Measurement) |
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Unit Price |
$ | |||
Exercise price |
$ | |||
Risk-free rate |
% | |||
Dividend yield |
% | |||
Volatility |
% | |||
Fair value of warrants |
$ |
As of August 5, 2021 (Initial Measurement) |
As of September 30, 2021 |
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Unit Price |
$ | $ | ||||||
Exercise price |
$ | $ | ||||||
Risk-free rate |
% | % | ||||||
Dividend yield |
% | % | ||||||
Volatility |
% | % | ||||||
Fair value of warrants |
$ | $ |
As of August 5, 2021 (Initial Measurement) |
As of September 30, 2021 |
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Unit Price |
$ | $ | ||||||
Exercise price |
$ | $ | ||||||
Expected term (in years) |
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Volatility |
% | % | ||||||
Risk-free rate |
% | % | ||||||
Warrant to unit value ratio |
% | % | ||||||
Fair value of forward purchase agreement (per unit) |
$ | ( |
) | $ | ( |
) |
Initial measurement as of August 5, 2021 |
$ |
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Transfer of Public Warrants to Level 1 measurement |
( |
) | ||
Change in fair value |
( |
) | ||
|
|
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Fair value as of September 30, 2021 |
$ | |||
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* | Filed herewith. |
** | Furnished. |
Healthwell Acquisition Corp. I | ||||||
Date: November 19, 2021 | By: | /s/ Alyssa J. Rapp | ||||
Alyssa J. Rapp | ||||||
Chief Executive Officer | ||||||
Healthwell Acquisition Corp. I | ||||||
Date: November 19, 2021 | By: | /s/ Tracy Wan | ||||
Tracy Wan | ||||||
Chief Financial Officer |