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) |
(Commission File Number) |
(IRS Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
one-half of one redeemable warrant |
||||
Class A common stock, par value $0.0001 per share |
||||
Redeemable warrants, each warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
Page |
||||
1 | ||||
1 | ||||
1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 | ||||
16 | ||||
18 | ||||
18 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
20 | ||||
21 | ||||
22 |
June 30, 2022 |
December 31, 2021 |
|||||||
(Unaudited) |
||||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash |
$ | $ | ||||||
Prepaid expenses |
||||||||
Total current assets |
||||||||
Investments held in Trust Account |
||||||||
Total Assets |
$ |
$ | ||||||
Liabilities, Redeemable Common Stock and Stockholders’ Deficit |
||||||||
Liabilities: |
||||||||
Franchise taxes payable |
$ | $ | ||||||
Federal income taxes payable |
||||||||
Due to related party |
||||||||
Accrued offering costs and expenses |
||||||||
Total current liabilities |
||||||||
Other liabilitie s |
||||||||
Warrant liability |
||||||||
Deferred underwriters’ discount |
||||||||
Total Liabilities |
||||||||
Commitments and Contingencies (Note 7) |
||||||||
Redeemable Class A common stock subject to possible redemption, |
||||||||
Stockholders’ Deficit: |
||||||||
Preferred stock, $ |
||||||||
Class A common stock, $ |
||||||||
Class B common stock, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
Total Stockholders’ Deficit |
( |
) |
( |
) | ||||
Total Liabilities, Redeemable Common Stock and Stockholders’ Deficit |
$ |
$ |
||||||
For the three months ended June 30, |
For the six months ended June 30, |
For the period from March 9, 2021 (inception) through June 30, |
||||||||||||||
2022 |
2021 |
2022 |
2021 |
|||||||||||||
Formation and operating costs |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) | |||||||
Other income |
||||||||||||||||
Bank interest income |
||||||||||||||||
Interest on Trust investments |
||||||||||||||||
Change in fair value of warrant liability |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before provision for income taxes |
||||||||||||||||
Provision for income taxes |
( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net Income (Loss) |
$ | $ | $ | $ | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class A common stock |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class A common stock |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class B common stock |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class B common stock |
$ |
$ |
$ |
$ |
||||||||||||
|
|
|
|
|
|
|
|
Class B Common stock |
Additional |
Accumulated |
Total Stockholders’ |
|||||||||||||||||
Shares |
Amount |
Paid-in Capital |
Deficit |
Deficit |
||||||||||||||||
Balance as of December 31, 2021 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
Net income |
||||||||||||||||||||
Balance as of March 31, 2022 (unaudited) |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
Accretion of carrying value to redemption value |
( |
) |
( |
) | ||||||||||||||||
Net income |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of June 30, 2022 (unaudited) |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
Class B Common stock |
Additional |
Accumulated |
Total Stockholder’s |
|||||||||||||||||
Shares |
Amount |
Paid-in Capital |
Deficit |
Deficit |
||||||||||||||||
Balance as of March 9, 2021 (inception) |
$ | $ | $ | $ | ||||||||||||||||
Net loss |
( |
) | ( |
) | ||||||||||||||||
Balance as of March 31, 2021 (unaudited) |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||||||
Class B common stock issued to Sponsor |
||||||||||||||||||||
Net loss |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance as of June 30, 2021 (unaudited) |
$ | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
For the six months ended June 30, |
For the Period from March 9, 2021 (Inception) through June 30, |
|||||||
2022 |
2021 |
|||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ | $ | ( |
) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||||
Change in fair value of warrant liability |
( |
) | ||||||
Interest earned on investments held in Trust Account |
( |
) | ||||||
Changes in operating assets and liabilities: |
||||||||
Prepaid assets |
||||||||
Taxes payable |
||||||||
Accrued offering costs and expenses |
||||||||
|
|
|
|
|||||
Net cash used in operating activitie |
( |
) |
||||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
|
|
|
|
|||||
Proceeds from sale of common stock to initial stockholders |
||||||||
|
|
|
|
|||||
Net cash provided by financing activities |
||||||||
|
|
|
|
|||||
Net change in cash |
( |
) |
||||||
|
|
|
|
|||||
Cash, beginning of the period |
||||||||
|
|
|
|
|||||
Cash, end of the period |
$ |
|||||||
|
|
|
|
|||||
Supplemental disclosure of non-cash investing and financing activities: |
||||||||
Deferred offering costs included in accrued offering costs and expenses |
||||||||
|
|
|
|
|||||
Accretion of carrying value to redemption value |
||||||||
|
|
|
|
|||||
Deferred offering costs paid by sponsor under the promissory note |
||||||||
|
|
|
|
For the three months ended June 30, |
||||||||||||||||
2022 |
2021 |
|||||||||||||||
Class A |
Class B |
Class A |
Class B |
|||||||||||||
Basic and diluted net income (loss) per share of common stock: |
||||||||||||||||
Numerator: |
||||||||||||||||
Allocation of net income (loss) |
$ | $ | $ | $ | ||||||||||||
Denominator: |
||||||||||||||||
Weighted-average shares outstanding |
||||||||||||||||
Basic and diluted net income per common stock |
$ | $ | $ | $ |
For the six months ended June 30, |
For the period from March 9, 2021 (inception) through June 30, |
|||||||||||||||
2022 |
2021 |
|||||||||||||||
Class A |
Class B |
Class A |
Class B |
|||||||||||||
Basic and diluted net income (loss) per share of common stock: |
||||||||||||||||
Numerator: |
||||||||||||||||
Allocation of net income (loss) |
$ | $ | $ | $ | ( |
) | ||||||||||
Denominator: |
||||||||||||||||
Weighted-average shares outstanding |
||||||||||||||||
Basic and diluted net income per common stock |
$ | $ | $ | $ |
• | 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. |
Gross proceeds from the Public Offering |
$ | |
||
Less: |
||||
Proceeds allocated to Public Warrants |
( |
) | ||
Common stock issuance costs |
( |
) | ||
|
|
|||
Contingently redeemable common stock at December 31, 2021 |
$ | |||
Plus: |
||||
Accretion of carrying value to redemption value |
||||
Contingently redeemable common stock at June 30, 2022 |
$ |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than |
• | if, and only if, the closing price of the common stock equals or exceeds $ a period ending trading days before the Company sends the notice of redemption to the warrant holders. |
Amortized Cost and Carrying Value |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value as of December 31, 2021 |
|||||||||||||
Cash |
$ | $ | — | $ | — | $ | ||||||||||
U.S. Treasury Securities |
— | ( |
) | |||||||||||||
$ | $ | — | $ | ( |
) | $ |
* | 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. |
DIRECT SELLING ACQUISITION CORP. | ||||
Date: August 12, 2022 | /s/ Dave Wentz | |||
Dave Wentz | ||||
Chief Executive Officer |