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) |
(Address of principal executive offices) |
(Zip Code) |
Title of Each Class: |
Trading Symbol: |
Name of Each Exchange on Which Registered: | ||
and one-fourth of a redeemable Warrant to acquire one share of Class A common stock |
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Units |
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Item 1. |
Condensed Interim Financial Statements (Unaudited) |
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 and Stockholders’ Deficit |
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Current liabilities: |
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Accounts payable |
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Accrued expenses |
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Franchise tax payable |
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Total current liabilities |
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Derivative warrant liabilities |
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Deferred underwriting commissions in connection with the Initial Public Offering |
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Total Liabilities Commitments and Contingencies |
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Class A common stock subject to possible redemption; $ |
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Stockholders’ Deficit: |
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Preferred stock, $ or outstanding; outstanding |
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Class A common stock, $ |
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Class B common stock, $ |
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Accumulated Deficit |
( |
) | ||
Total stockholders’ deficit |
( |
) | ||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit |
$ |
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For the Three Months Ended September 30, 2021 |
For the Period From February 11, 2021 (Inception) Through September 30, 2021 |
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Weighted average number of shares of Class B common stock - diluted |
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General and administrative expenses |
$ | $ | ||||||
Franchise tax expenses |
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Loss from operations |
( |
) | ( |
) | ||||
Other Income (Expenses) |
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Income from investments held in Trust Account |
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Offering Costs |
— | ( |
) | |||||
Change of fair value of derivative warrant liabilities |
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Interest Income |
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Total other income, net |
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Net income |
$ | $ | ||||||
Weighted average number of shares of Class A common stock |
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Basic and diluted net income per share, Class A common stock |
$ |
$ |
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Weighted average number of shares of Class B common stock - basic |
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Weighted average number of shares of Class B common stock - diluted |
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Basic and diluted net income per share, Class B common stock |
$ | $ | ||||||
Common Stock |
Retained Earnings |
Total Stockholders’ Deficit |
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Class A |
Additional Paid-In Capital |
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Shares |
Amount |
Shares |
Amount |
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Balance - February 11, 2021 (inception) |
$ |
$ |
$ |
$ |
$ |
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Issuance of Class B common stock to Sponsor |
— | — | — | |||||||||||||||||||||||||
Net loss |
— | — | — | — | — | ( |
) | ( |
) | |||||||||||||||||||
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Balance - March 31, 2021 (unaudited) |
( |
) |
( |
) | ||||||||||||||||||||||||
Proceeds in excess of fair value upon the sale of Private Placement Warrants |
— | — | — | — | — | |||||||||||||||||||||||
Accretion to Class A common stock redemption amount |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Forfeiture of Class B Common Shares |
— | — | ( |
) | ( |
) | — | — | ||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance - June 30, 2021 (unaudited) (as restated, see Note 2) |
— |
( |
) |
( |
) | |||||||||||||||||||||||
Net income |
— | — | — | — | — | |||||||||||||||||||||||
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Balance - September 30, 2021 (unaudited) |
$ |
$ |
$ |
— |
$ |
( |
) |
$ |
( |
) | ||||||||||||||||||
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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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General and administrative expenses paid by related party under promissory note |
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Offering costs associated with warrants |
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Change in the fair value of derivative warrant liabilities |
( |
) | ||
Income from investments held in Trust Account |
( |
) | ||
Prepaid Expenses |
( |
) | ||
Change in operating liabilities: |
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Accounts payable |
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Accrued Expenses |
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Franchise tax payable |
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|
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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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Repayments of note payable to related parties |
( |
) | ||
Proceeds received from initial public offering, gross |
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Proceeds received from private placement |
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Offering cost paid |
( |
) | ||
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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 the period |
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Cash - end of the period |
$ |
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|
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Supplemental schedule of noncash financing activities: |
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Offering costs paid in exchange for issuance of Class B common stock to Sponsor |
$ | |||
Offering costs included in accounts payable |
$ | |||
Offering costs included in accrued expenses |
$ | |||
Offering costs paid by related party under promissory note |
$ |
As of June 30, 2021 (unaudited) |
As Reported |
Adjustment |
As Restated |
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Total assets |
$ |
$ |
$ |
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Total liabilities |
$ |
$ |
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Class A common stock subject to possible redemption |
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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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Retained earnings (accumulated deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Total stockholders’ equity (deficit) |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and stockholders’ Equity (Deficit) |
$ |
$ |
$ |
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Shares of Class A common stock subject to possible redemption |
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Shares of Class A non-redeemable common stock |
( |
) |
For the Period From February 11, 2021 (inception) through June 30, 2021 (unaudited) |
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As Reported |
Adjustment |
As Restated |
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Supplemental Disclosure of Noncash Financing Activities: |
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Initial value of Class A common stock subject to possible redemption |
$ |
$ |
( |
) |
$ |
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Change in value of Class A common stock subject to possible |
$ |
$ |
( |
) |
$ |
Earnings Per Share |
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As Reported |
Adjustment |
As Restated |
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Three months ended June 30, 2021 (unaudited) |
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Net income |
$ |
$ |
$ |
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Weighted average shares outstanding - Class A common stock |
( |
) | ||||||||||
Basic and diluted earnings 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 earnings per share - Class B common stock |
$ |
$ |
( |
) |
$ |
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For the Period From February 11, 2021 (inception) through June 30, 2021 (unaudited) |
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Net income |
$ |
$ |
$ |
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Weighted average shares outstanding - Class A common stock |
( |
) | ||||||||||
Basic and diluted earnings per share - Class A common stock |
$ |
$ |
$ |
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Weighted average shares outstanding - Class B common stock |
( |
) | ||||||||||
Basic and diluted earnings per share - Class B common stock |
$ |
$ |
( |
) |
$ |
• | Level 1, defined as observable inputs such as quoted prices 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. |
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For the Three Months Ended September 30, 2021 |
For the Period From February 11, 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 common share: |
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Numerator: |
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Allocation of net income |
$ | $ | $ | $ | ||||||||||||
Denominator: |
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Basic and diluted weighted average common shares outstanding |
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Basic and diluted net income per common share |
$ | $ | $ | $ | ||||||||||||
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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 common stock equals or exceeds $ |
• | in whole and not in part; |
• | at a price of $ days’ prior written notice of redemption provided that during such 30-day period holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares of Class A common stock determined by reference to an agreed table based on the redemption date and the “fair value” of the shares of Class A common stock (as defined below); provided, further, that if the warrants are not exercised on a cashless basis or otherwise during such 30-day period, the Company shall redeem such warrants for $0.10 per share; |
• | if, and only if, the last reported sale price of the shares of Class A common stock equals or exceeds $10.00 per share (as adjusted per stock splits, stock dividends, reorganizations, reclassifications, recapitalizations and the like) for any |
• | if the Reference Value is less than $ |
As of September 30, 2021 |
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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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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 - money market funds |
$ | $ | — | $ | — | |||||||
Liabilities: |
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Derivative warrant liabilities - Public warrants |
$ | $ | — | $ | — | |||||||
Derivative warrant liabilities - Private placement warrants |
$ | — | $ | — | $ |
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May 3, 2021 |
June 30, 2021 |
September 30, 2021 |
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Exercise price |
$ | $ | $ | |||||||||
Stock price |
$ | $ | $ | |||||||||
Expected term (years) |
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Expected time to Business Combination (years) |
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Volatility |
% | % | % | |||||||||
Risk-free rate |
% | % | % | |||||||||
Dividend yield (per share) |
% | % | % |
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Derivative warrant liabilities at February 11, 2021 (inception) |
$ | — | ||
Issuance of Public and Private Warrants - Level 3 |
||||
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|
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Derivative warrant liabilities at March 31, 2021, Level 3 |
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Transfer of Public Warrants to Level 1 |
( |
) | ||
Change in fair value of warrant liabilities - Level 3 |
( |
) | ||
|
|
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Derivative warrant liabilities at June 30, 2021 - Level 3 |
||||
Change in fair value of warrant liabilities - Level 3 |
( |
) | ||
|
|
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Derivative warrant liabilities at September 30, 2021 - Level 3 |
$ | |||
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* |
These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
Dated: Fe bruary 25 , 20 22 |
BIG SKY GROWTH PARTNERS, INC. | |||||
By: | /s/ Lauren Neiswender | |||||
Name: | Lauren Neiswender | |||||
Title: | Chief Financial Officer and Chief Legal Officer |