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-third of one redeemable warrant |
||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
☒ | Smaller reporting company | |||||
Emerging growth company |
March 31, 2022 (unaudited) |
December 31, 2021 |
|||||||
Assets |
||||||||
Current Assets |
||||||||
Cash on hand |
$ | $ | ||||||
Prepaid expenses |
||||||||
|
|
|
|
|||||
Total current assets |
||||||||
|
|
|
|
|||||
Prepaid expenses-Non-current |
— | |||||||
Cash and Investments held in Trust Account |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities and Shareholders’ Deficit |
||||||||
Current liabilities: |
||||||||
Accrued costs and expenses |
$ | $ | ||||||
Due to related party |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
|
|
|
|
|||||
Warrant liability |
||||||||
Deferred underwriters’ discount |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
Commitments |
||||||||
Ordinary shares subject to possible redemption, |
||||||||
Shareholders’ Deficit: |
||||||||
Preference shares, $ |
||||||||
Class A ordinary shares, $ |
||||||||
Class B ordinary shares, $ |
||||||||
Additional paid-in capital |
— | — | ||||||
Accumulated deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total shareholders’ deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total Liabilities and Shareholders’ Deficit |
$ | $ | ||||||
|
|
|
|
For the three months ended March 31, 2022 |
For the three months ended March 31, 2021 |
|||||||
Formation and operating costs |
$ | $ | ||||||
Loss from operations |
( |
) | ( |
) | ||||
Other income |
||||||||
Bank interest income |
||||||||
Interest income on marketable securities held in trust |
||||||||
Offering cost allocated to warrants |
( |
) | ||||||
Excess of Private Placement Warrants fair value over purchase price |
( |
) | ||||||
Change in fair value of warrants liability |
||||||||
Total other income |
||||||||
Net income |
$ | $ | ||||||
Weighted average ordinary shares subject to possible redemption outstanding, basic and diluted |
||||||||
Basic and diluted net income per ordinary share subject to possible redemption |
$ | $ | ||||||
Weighted average non-redeemable ordinary shares outstanding, basic and diluted |
||||||||
Basic and diluted net income per non-redeemable ordinary share |
$ | $ | ||||||
Class A Ordinary Shares |
Class B Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders’ Equity (Deficit) |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance as of December 31, 2021 |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Balance as of March 31, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
Class A Ordinary Shares |
Class B Ordinary Shares |
Additional Paid-in Capital |
Accumulated Deficit |
Total Shareholders’ Equity (Deficit) |
||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance as of December 31, 2020 |
— |
$ |
— |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||||
Subsequent remeasurement under ASC480-10-S99 |
— | — | — | — | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Net Income |
— | — | — | — | — | |||||||||||||||||||||||
Balance as of March 31, 2021 |
$ |
$ |
$ |
$ |
( |
) |
$ |
( |
) | |||||||||||||||||||
For the three months ended March 31, 2022 |
For the three months ended March 31, 2021 |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
Interest earned on cash and Investments held in Trust Account |
( |
) | ( |
) | ||||
Offering costs allocated to warrants |
— | |||||||
Excess of Private Placement Warrants fair value over purchase price |
— | |||||||
Change in fair value of warrant liability |
( |
) | ( |
) | ||||
Changes in current assets and liabilities: |
||||||||
Prepaid assets |
( |
) | ||||||
Accrued costs and expenses |
||||||||
Due to related party |
||||||||
Net cash used in operating activities |
( |
) |
( |
) | ||||
Cash Flows from Investing Activities: |
||||||||
Investment held in Trust Account |
— | ( |
) | |||||
Net cash used in investing activities |
— | ( |
) | |||||
Cash flows from financing activities: |
||||||||
Proceeds from initial public offering, net of underwriters’ discount |
— |
|||||||
Proceeds from issuance of Private Placement Warrants |
— |
|||||||
Proceeds of Promissory Note— Related Party |
— |
|||||||
Payment of Promissory Note—Related Party |
— |
( |
) | |||||
Payments of offering costs |
— |
( |
) | |||||
Net cash provided by financing activities |
— |
|||||||
Net change in cash |
( |
) |
||||||
Cash, beginning of the period |
||||||||
Cash, end of the period |
$ |
$ |
||||||
Supplemental disclosure of cash flow information: |
||||||||
Initial classification of warrant liability |
$ | — | $ | |||||
Initial classification of Class A ordinary shares subject to possible redemption |
$ | — | $ | |||||
Deferred underwriting commissions charged to additional paid in capital |
$ | — | $ | |||||
Deferred offering costs paid by Sponsor in exchange for issuance of Class B ordinary shares |
$ | — | $ | |||||
Deferred offering costs included in accrued expenses |
$ | — | $ | |||||
For the Three Months Ended March 31, 2022 |
For the Three Months Ended March 31, 2021 |
|||||||||||||||
Class A |
Class B |
Class A |
Class B |
|||||||||||||
Basic and diluted net income per share: |
||||||||||||||||
Numerator: |
||||||||||||||||
Allocation of net income |
$ | $ | $ | $ | ||||||||||||
Denominator: |
||||||||||||||||
Weighted-average shares outstanding |
||||||||||||||||
Basic and diluted net income per share |
$ | $ | $ | $ |
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. |
March 31, 2022 |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
|||||||||||||
Liabilities: |
||||||||||||||||
Warrant Liability-Public Warrants |
$ | $ | $ | $ | ||||||||||||
Warrant Liability-Private Warrants |
||||||||||||||||
$ |
$ |
$ |
$ |
December 31, 2021 |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
|||||||||||||
Liabilities: |
||||||||||||||||
Warrant Liability-Public Warrants |
$ | $ | $ | $ | ||||||||||||
Warrant Liability-Private Warrants |
||||||||||||||||
$ |
$ |
$ |
$ |
Private Placement Warrants |
Public Warrants |
Total Warrant Liabilities |
||||||||||
Fair value as of December 31, 2021 |
$ |
$ |
$ |
|||||||||
Change in fair value of warrant liabilities |
( |
) |
( |
) | ||||||||
Fair value as of March 31, 2022 |
$ |
$ |
$ |
Private Placement Warrants |
Public Warrants |
Total Warrant Liabilities |
||||||||||
Fair value as of December 22, 2020 (inception) |
$ |
$ |
$ |
|||||||||
Initial measurement on March 1, 2021 |
||||||||||||
Change in fair value of warrant liabilities |
( |
) |
( |
) |
( |
) | ||||||
Transfer from level 3 to level 1 |
( |
) |
( |
) | ||||||||
Fair value as of March 31, 2021 |
$ |
$ |
$ |
Gross proceeds from IPO |
$ | |||
Less: |
||||
Proceeds allocated to Public Warrants |
( |
) | ||
Ordinary share issuance costs |
( |
) | ||
Plus: |
||||
Accretion of carrying value to redemption value |
||||
Contingently redeemable ordinary share |
$ |
• | in whole and not in part; |
• | at a price of $ |
• | upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and |
• | if, and only if, the last reported sale price of the Class A ordinary shares for any 20 trading days within a 30-trading day period ending on and including the third business days prior to the date the Company sends to the notice of redemption to the warrant holders (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant). |
• | in whole and not in part; |
• | for cash at a price of $ |
• | if, and only if, the Reference Value equals or exceeds $10.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described below). |
March 31, 2022 |
December 31, 2021 |
|||||||
Exercise price |
$ | $ | ||||||
Share price |
$ | $ | ||||||
Volatility |
% | % | ||||||
Expected life of the options to convert |
||||||||
Risk-free rate |
% | % | ||||||
Dividend yield |
% | % |
ITEM 3. |
Defaults Upon Senior Securities. |
ITEM 4. |
Mine Safety Disclosures. |
ITEM 5. |
Other Information. |
* |
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: May 16, 2022 | EJF ACQUISITION CORP. | |||||
By: | /s/ Kevin Stein | |||||
Name: | Kevin Stein | |||||
Title: | Chief Executive Officer and Director (Principal Executive Officer) |