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) |
(Commission File Number) |
(IRS Employer Identification No.) |
(Address Of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page |
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PART I. FINANCIAL INFORMATION |
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Item 1. |
1 |
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1 |
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2 |
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3 |
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4 |
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5 |
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Item 2. |
18 |
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Item 3. |
21 |
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Item 4. |
21 |
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PART II. OTHER INFORMATION |
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Item 1. |
23 |
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Item 1A. |
23 |
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Item 2. |
23 |
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Item 3. |
23 |
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Item 4. |
23 |
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Item 5. |
23 |
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Item 6. |
23 |
September 30, 2021 |
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Assets: |
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Current assets: |
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Cash |
$ | |||
Prepaid expenses |
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|
|
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Total current assets |
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Investments held in Trust Account |
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|
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Total Assets |
$ |
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|
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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—related party |
$ | |||
Accrued expenses |
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|
|
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Total current liabilities |
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Deferred underwriting commissions |
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Warrant liabilities |
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|
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Total liabilities |
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Commitments and Contingencies (Note 7 ) |
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Class A ordinary shares subject to possible redemption, $ |
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Shareholders’ Deficit: |
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Preference shares, $ |
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Class A ordinary shares, $ |
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Class B ordinary shares, $ |
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Accumulated deficit |
( |
) | ||
|
|
|||
Total shareholders’ deficit |
( |
) | ||
|
|
|||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit |
$ |
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|
|
For the Three Months Ended September 30, 2021 |
For the Period from January 8, 2021 (Inception) through September 30, 2021 |
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Operating expenses |
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General and administrative expenses |
$ | $ | ||||||
General and administrative expenses—related party |
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|
|
|
|
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Loss from operations |
( |
) | ( |
) | ||||
Other income (expenses): |
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Change in fair value of warrant liabilities |
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Offering costs associated with issuance of warrants |
( |
) | ||||||
Net gain from investments held in Trust Account |
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|
|
|
|
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Net income (loss) |
$ | $ | ( |
) | ||||
|
|
|
|
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Weighted average shares outstanding of Class A ordinary shares, basic and diluted |
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|
|
|
|
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Basic and diluted net income (loss) per share, Class A ordinary shares |
$ | $ | ( |
) | ||||
|
|
|
|
|||||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted |
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|
|
|
|
|||||
Basic and diluted net income (loss) per share, Class B ordinary shares |
$ | $ | ( |
) | ||||
|
|
|
|
Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders’ Deficit |
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Class A |
Class B |
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Shares |
Amount |
Shares |
Amount |
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Balance—January 8, 2021 (inception) |
$ |
$ |
$ |
$ |
$ |
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Issuance of Class B ordinary shares to Sponsor |
— |
— |
— |
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Excess cash received over the fair value of the private warrants |
— |
— |
— |
— |
— |
|||||||||||||||||||||||
Accretion on Class A ordinary shares subject to possible redemption amount |
— |
— |
— |
— |
( |
) |
( |
) |
( |
) | ||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Balance—March 31, 2021 (unaudited ), as restated |
( |
) |
( |
) | ||||||||||||||||||||||||
Class B ordinary shares forfeited |
— |
— |
( |
) |
( |
) |
— |
— |
||||||||||||||||||||
Subsequent measurement of Class A ordinary shares subject to redemption against additional paid-in capital and accumulated deficit |
( |
) |
— |
|||||||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
( |
) |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Balance—June 30, 2021 (unaudited ), as restated |
( |
) |
( |
) | ||||||||||||||||||||||||
Net income |
— |
— |
— |
— |
— |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Balance—September 30, 2021 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Period from January 8, 2021 (Inception) through September 30, 2021 |
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Cash Flows from Operating Activities: |
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Net loss |
$ | ( |
) | |
Adjustments to reconcile net loss to net cash used in operating activities: |
||||
Change in fair value of warrant liabilities |
( |
) | ||
Offering costs associated with issuance of warrants |
||||
Net gain from investments held in Trust Account |
( |
) | ||
Changes in operating assets and liabilities: |
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Prepaid expenses |
( |
) | ||
Accounts payable—related party |
||||
Accrued expenses |
||||
|
|
|||
Net cash used in operating activities |
( |
) | ||
|
|
|||
Cash Flows from Investing Activities: |
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Cash deposited in Trust Account |
( |
) | ||
|
|
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Net cash used in investing activities |
( |
) | ||
|
|
|||
Cash Flows from Financing Activities: |
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Proceeds from note payable to related party |
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Repayment of note payable to related party |
( |
) | ||
Proceeds received from initial public offering, gross |
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Proceeds received from private placement |
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Offering costs paid |
( |
) | ||
|
|
|||
Net cash provided by financing activities |
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|
|
|||
Net increase in cash |
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Cash—beginning of the period |
||||
|
|
|||
Cash—end of the period |
$ |
|||
|
|
|||
Supplemental disclosure of noncash activities: |
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Prepaid expenses paid by Sponsor in exchange for issuance of Class B ordinary shares |
$ | |||
Offering costs included in accrued expenses |
$ | |||
Deferred underwriting commissions |
$ | |||
Forfeiture of Class B ordinary shares |
$ |
As of March 2, 2021 |
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As Previously Reported |
Adjustment |
As Restated |
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Balance Sheet |
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Total assets |
$ |
$ |
$ |
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|
|
|
|
|
|
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Liabilities and shareholders’ equity (deficit) |
||||||||||||
Total current liabilities |
$ |
$ |
$ |
|||||||||
Deferred underwriting commissions |
||||||||||||
Warrant liabilities |
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|
|
|
|
|
|
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Total liabilities |
||||||||||||
Class A ordinary shares subject to possible redemption |
||||||||||||
Shareholders’ equity (deficit) |
||||||||||||
Preference shares |
||||||||||||
Class A ordinary shares |
( |
) |
||||||||||
Class B ordinary shares |
||||||||||||
Additional paid-in-capital |
( |
) |
||||||||||
Accumulated deficit |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Total shareholders’ equity (deficit) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total liabilities, Class A ordinary shares subject to possible redemption and shareholders’ equity (deficit) |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
As of March 31, 2021 |
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As Previously Reported |
Adjustment |
As Restated |
||||||||||
Unaudited Condensed Balance Sheet |
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Total assets |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
||||||||||||
Class A ordinary shares subject to possible redemption |
||||||||||||
Shareholders’ equity (deficit) |
||||||||||||
Preference shares |
||||||||||||
Class A ordinary shares |
( |
) |
||||||||||
Class B ordinary shares |
||||||||||||
Additional paid-in-capital |
( |
) |
||||||||||
Retained earnings (accumulated deficit) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total shareholders’ equity (deficit) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total liabilities, Class A ordinary shares subject to possible redemption and shareholders’ equity (deficit) |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
For the Period from January 8, 2021 (Inception) through March 31, 2021 |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Unaudited Condensed Statement of Cash Flows - Supplemental disclosure of noncash activities: |
|
|||||||||||
Initial value of Class A ordinary shares subject to possible redemption |
$ |
$ |
( |
) |
$ |
|||||||
Change in fair value of Class A ordinary shares subject to possible redemption |
$ |
$ |
( |
) |
$ |
|||||||
Accretion of Class A ordinary shares subject to redemption amount |
$ |
$ |
$ |
As of June 30, 2021 |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Unaudited Condensed Balance Sheet |
||||||||||||
Total assets |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
||||||||||||
Class A ordinary shares subject to possible redemption |
||||||||||||
Shareholders’ equity (deficit) |
||||||||||||
Preference shares |
||||||||||||
Class A ordinary shares |
( |
) |
||||||||||
Class B ordinary shares |
||||||||||||
Additional paid-in-capital |
( |
) |
||||||||||
Accumulated deficit |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Total shareholders’ equity (deficit) |
( |
) |
( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total liabilities, Class A ordinary shares subject to possible redemption and shareholders’ equity (deficit) |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
For the Period from January 8, 2021 (Inception) through June 30, 2021 |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Unaudited Condensed Statement of Cash Flows - Supplemental disclosure of noncash activities: |
|
|||||||||||
Initial value of Class A ordinary shares subject to possible redemption |
$ |
$ |
( |
) |
$ |
|||||||
Change in fair value of Class A ordinary shares subject to possible redemption |
$ |
( |
) |
$ |
$ |
|||||||
Accretion of Class A ordinary shares subject to redemption amount |
$ |
$ |
$ |
For the Period from January 8, 2021 (Inception) through March 31, 2021 |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Unaudited Condensed Statement of Operations |
||||||||||||
Net income |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
|||||||
Weighted average shares outstanding of Class A ordinary shares, basic and diluted |
( |
) |
||||||||||
Basic and diluted net income per share, Class A ordinary shares |
$ |
$ |
$ |
|||||||||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted |
||||||||||||
Basic and diluted net income per share, Class B ordinary shares |
$ |
$ |
( |
) |
$ |
For the Three Months Ended June 30, 2021 |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Unaudited Condensed Statement of Operations |
||||||||||||
Net loss |
$ |
( |
) |
$ |
$ |
( |
) | |||||
|
|
|
|
|
|
|||||||
Weighted average shares outstanding of Class A ordinary shares, basic and diluted |
||||||||||||
Basic and diluted net income (loss) per share, Class A ordinary shares |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted |
||||||||||||
Basic and diluted net income (loss) per share, Class B ordinary shares |
$ |
( |
) |
$ |
$ |
( |
) |
For the Period from January 8, 2021 (Inception) through June 30, 2021 |
||||||||||||
As Previously Reported |
Adjustment |
As Restated |
||||||||||
Unaudited Condensed Statement of Operations |
||||||||||||
Net loss |
$ |
( |
) |
$ |
$ |
( |
) | |||||
|
|
|
|
|
|
|||||||
Weighted average shares outstanding of Class A ordinary shares, basic and diluted |
( |
) |
||||||||||
Basic and diluted net income (loss) per share, Class A ordinary shares |
$ |
$ |
( |
) |
$ |
( |
) | |||||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted |
||||||||||||
Basic and diluted net income (loss) per share, Class B ordinary shares |
$ |
( |
) |
$ |
$ |
( |
) |
• |
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. |
For the Three Months Ended September 30, 2021 |
For the Period from January 8, 2021 (Inception) through September 30, 2021 |
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Class A |
Class B |
Class A |
Class B |
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Numerator: |
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Allocation of net income (loss) |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
Denominator: |
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Weighted average ordinary shares outstanding, basic and diluted |
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|
|
|
|
|
|
|
|
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Basic and diluted net income (loss) per ordinary share |
$ | $ | $ | ( |
) | $ | ( |
) | ||||||||
|
|
|
|
|
|
|
|
• | 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 $ sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any |
• | in whole and not in part; |
• | $ |
• | if, and only if, the closing price of Class A ordinary shares equals or exceeds $ |
• | if the closing price of the Class A ordinary shares for any |
Gross proceeds received from Initial Public Offering |
$ | |||
Less: |
||||
Fair value of Public Warrants at issuance |
( |
) | ||
Offering costs allocated to Class A ordinary shares |
( |
) | ||
Plus: |
||||
Accretion on Class A ordinary shares to redemption value |
||||
|
|
|||
Class A ordinary shares subject to possible redemption |
$ | |||
|
|
Fair Value Measured as of September 30, 2021 |
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Level 1 |
Level 2 |
Level 3 |
Total |
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Assets |
||||||||||||||||
Investments held in Trust Account - U.S. Treasury Securities |
$ | $ | — | $ | — | $ | ||||||||||
Liabilities: |
||||||||||||||||
Warrant liabilities - public warrants |
$ | $ | — | $ | — | $ | ||||||||||
Warrant liabilities - private warrants |
$ | — | $ | — | $ | $ |
Warrant liabilities at January 8, 2021 (inception) |
$ | |||
Issuance of Public and Private Warrants |
||||
Change in fair value of warrant liabilities |
( |
) | ||
Warrant liabilities at March 31, 2021 |
||||
Public Warrants transferred to Level 1 |
( |
) | ||
Change in fair value of warrant liabilities |
||||
Warrant liabilities at June 30, 2021 |
||||
Change in fair value of warrant liabilities |
( |
) | ||
Warrant liabilities at September 30, 2021 |
$ |
September 30, 2021 |
March 2, 2021 |
|||||||
Exercise price |
$ | $ | ||||||
Stock Price |
$ | $ | ||||||
Term (in years) |
||||||||
Volatility |
% | % | ||||||
Risk-free interest rate |
% | % | ||||||
Dividend yield |
% | % |
* | 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: December 8, 2021 | LOCAL BOUNTI CORPORATION | |||||
By: | /s/ Kathleen Valiasek | |||||
Name: | Kathleen Valiasek | |||||
Title: | Chief Financial Officer |