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)
|
(I.R.S. Employer Identification Number)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
|
|
|
||
|
|
|
||
|
|
|
Large accelerated filer
|
☐
|
Accelerated filer
|
☐
|
|
☒
|
Smaller reporting company
|
|
Emerging growth company
|
|
Page
No. |
|||
1
|
|||
Item 1.
|
1
|
||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
5
|
|||
Item 2.
|
22
|
||
Item 3.
|
26
|
||
Item 4.
|
26
|
||
27
|
|||
Item 1.
|
27
|
||
Item 1A.
|
27
|
||
Item 2.
|
27
|
||
Item 3.
|
27
|
||
Item 4.
|
27
|
||
Item 5.
|
27
|
||
Item 6.
|
27
|
||
28
|
June 30,
2023 |
December 31,
2022
|
|||||||
(Unaudited) | ||||||||
Assets
|
||||||||
Cash
|
$
|
|
$ | |||||
Prepaid expenses
|
|
|||||||
|
||||||||
Total current assets
|
|
|||||||
Marketable securities held in Trust Account
|
|
|||||||
Total Assets
|
$
|
|
$ | |||||
Liabilities and Shareholders’ Deficit
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | $ | ||||||
Due to related party, net
|
||||||||
|
|
|||||||
Total current liabilities
|
|
|||||||
Warrant liability
|
|
|||||||
Commitment fee shares liability
|
|
|||||||
Total Liabilities
|
|
|||||||
Commitments
|
||||||||
Class A 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
June 30,
|
For the Six Months Ended
June 30,
|
|||||||||||||||
2023
|
2022
|
2023
|
2022
|
|||||||||||||
Formation and operating costs
|
$
|
|
$ | $ |
$
|
|
||||||||||
Loss from operations
|
(
|
)
|
( |
) | ( |
) |
(
|
)
|
||||||||
Other income (expense):
|
||||||||||||||||
Change in fair value of commitment fee shares
|
( |
) | ( |
) | ||||||||||||
Change in fair value of warrant liabilities
|
|
( |
) |
|
||||||||||||
Trust interest income
|
|
|
||||||||||||||
Total other income, net
|
|
|
||||||||||||||
Net income
|
$
|
|
$ | $ |
$
|
|
||||||||||
Basic and diluted weighted average shares outstanding, ordinary shares subject to redemption
|
|
|
||||||||||||||
Basic and diluted net income per share
|
$
|
|
$ | $ |
$
|
|
||||||||||
Basic and diluted weighted average shares outstanding, ordinary shares
|
|
|
||||||||||||||
Basic and diluted net income per share
|
$
|
|
$ | $ |
$
|
|
Class A
Ordinary Shares
|
Class B
Ordinary Shares
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Total
Shareholders’
Deficit
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||
Balance – December 31, 2022
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||||||
Remeasurement of Class A ordinary shares to redemption value
|
—
|
|
—
|
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Net loss
|
—
|
|
—
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Balance – March 31, 2023
(Unaudited)
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Remeasurement of Class A ordinary shares to redemption value
|
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
Net income |
— | — | ||||||||||||||||||||||||||
Balance – June 30, 2023 (Unaudited)
|
$ |
$ |
$ |
$ |
( |
) | $ |
( |
) |
Class A
Ordinary Shares
|
Class B
Ordinary Shares
|
Additional
Paid-in
Capital
|
Accumulated
Deficit
|
Total
Shareholders’
Deficit
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
|||||||||||||||||||||||||
Balance – December 31, 2021
|
|
$
|
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
||||||||||||||
Remeasurement of
Class A ordinary shares to redemption value
|
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
Net income
|
—
|
|
—
|
|
|
|
|
|||||||||||||||||||||
Balance – March 31, 2022
(Unaudited)
|
|
|
|
|
|
(
|
)
|
(
|
)
|
|||||||||||||||||||
Remeasurement of
Class A ordinary shares to redemption value
|
— | — | ( |
) | ( |
) | ||||||||||||||||||||||
Net income
|
— | — | ||||||||||||||||||||||||||
Balance – June 30, 2022 (Unaudited)
|
$ |
$ |
$ |
$ |
( |
) | $ |
( |
) |
For the Six Months Ended
June 30,
|
||||||||
2023
|
2022
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net income
|
$ |
$
|
|
|||||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||||||
Trust interest income
|
( |
) | ( |
) | ||||
Change in fair value of warrant liabilities
|
(
|
)
|
||||||
Change in fair value of commitment fee shares
|
|
|||||||
Changes in current assets and liabilities:
|
||||||||
Prepaid expenses
|
( |
) |
|
|||||
Accounts payable
|
(
|
)
|
||||||
Due from related party
|
( |
) | ||||||
Due to related party
|
(
|
)
|
||||||
Net cash used in operating activities
|
( |
) |
(
|
)
|
||||
Cash Flows from Investing Activities:
|
||||||||
Principal deposited into Trust Account |
( |
) | ||||||
Cash withdrawn from trust in connection with redemption
|
|
|||||||
Net cash provided by investing activities
|
|
|||||||
Cash Flows from Financing Activities:
|
||||||||
Redemption of Class A Shares
|
( |
) |
|
|||||
Proceeds from issuance of promissory note to related party
|
|
|||||||
Net cash used in financing activities
|
( |
) |
|
|||||
Net Change in Cash
|
( |
) |
(
|
)
|
||||
Cash – Beginning
|
|
|||||||
Cash – Ending
|
$ |
$
|
|
|||||
Non-Cash Investing and Financing Activities:
|
||||||||
Remeasurement of Class A ordinary shares subject to possible redemption
|
$ |
$
|
|
NOTE 1. |
ORGANIZATION AND BUSINESS OPERATIONS
|
NOTE 2. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
● |
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.
|
Class A ordinary shares
subject to possible redemption - December 31, 2021
|
$
|
|
||
Plus:
|
||||
Accretion of carrying value to redemption value |
||||
Class A ordinary shares
subject to possible redemption - December 31, 2022
|
|
|||
Less: |
||||
Redemption of Class A Ordinary Shares
|
( |
) | ||
Plus: | ||||
Remeasurement of Class A ordinary shares to redemption value | ||||
Class A ordinary shares subject to possible redemption – June 30, 2023 | $ |
For the Three Months Ended
June 30,
|
||||||||||||||||
2023 | 2022 |
|||||||||||||||
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
|
$
|
|
$
|
|
$ | $ |
For the Six Months Ended
June 30,
|
||||||||||||||||
2023 | 2022 | |||||||||||||||
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
|
$
|
|
$
|
|
$ | $ |
NOTE 3. |
INITIAL PUBLIC OFFERING
|
● |
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 $
|
● |
in whole and not in part;
|
● |
at $
|
● |
if, and only if, the closing
price of the Company’s Class A ordinary shares equals or exceeds $
|
● |
if the closing price of the Class A ordinary shares for any
|
NOTE 4. |
PRIVATE PLACEMENT
|
NOTE 5. |
RELATED PARTY TRANSACTIONS
|
NOTE 6. |
FAIR VALUE MEASUREMENTS
|
June 30,
2023
|
Quoted
Prices In
Active
Markets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Marketable securities held in Trust Account
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
Liabilities:
|
||||||||||||||||
Warrant Liability –Public Warrants
|
$
|
|
$ |
|
$
|
|
$
|
|
||||||||
Warrant Liability – Private Placement Warrants
|
|
|
|
|
||||||||||||
Commitment fee shares liability |
||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
December 31,
2022
|
Quoted
Prices In
Active
Markets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Other
Unobservable
Inputs
(Level 3)
|
|||||||||||||
Assets:
|
||||||||||||||||
Marketable securities held in Trust Account
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
Liabilities:
|
||||||||||||||||
Warrant Liability – Public Warrants
|
$
|
|
$ |
$
|
|
$ | ||||||||||
Warrant Liability – Private Placement Warrants
|
|
|
|
|
||||||||||||
Commitment fee shares liability |
||||||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
Input
|
June 30,
2023
|
December 31,
2022
|
||||||
Expected term (years) (1)
|
|
|
||||||
Expected volatility
|
|
%
|
|
%
|
||||
Risk-free interest rate
|
|
%
|
|
%
|
||||
Fair value of the ordinary share price
|
$
|
|
$
|
|
(1)
|
|
June 30,
2023
|
||||
Fair value as of January 1, 2023
|
$
|
|
||
Revaluation of warrant liability included in other income within the statements of operations
|
|
|||
Fair value as of March 31, 2023
|
|
|||
Revaluation of warrant liability included in other income within the statements of operations
|
( |
) | ||
Fair value as of June 30, 2023
|
$ |
June 30,
2022
|
||||
Fair value as of January 1, 2022
|
$
|
|
||
Revaluation of warrant liability included in other income within the statements of operations
|
(
|
)
|
||
Fair value as of March 31, 2022
|
|
|||
Revaluation of warrant liability included in other income within the statements of operations
|
( |
) | ||
Fair value as of June 30, 2022
|
$ |
Input
|
November 28,
2022
(Initial
Measurement)
|
December 31,
2022
|
June 30,
2023
|
|||||||||
Expected term (years)
|
|
|
|
|||||||||
Risk-free interest rate
|
|
%
|
|
%
|
|
%
|
||||||
Fair value of the ordinary
share price
|
$
|
|
$
|
|
$
|
|
NOTE 7. |
COMMITMENTS AND CONTINGENCIES
|
NOTE 8. |
SHAREHOLDERS’ DEFICIT
|
NOTE 9. |
SUBSEQUENT EVENTS
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
|
• |
our ability to select an appropriate target business or businesses;
|
• |
our ability to complete our initial Business Combination, including our recently announced proposed Business Combination with Carbon Revolution;
|
• |
our expectations around the performance of a prospective target business or businesses;
|
• |
our success in retaining or recruiting, or changes required in, our officers, key employees or directors following our initial Business Combination;
|
• |
our officers and directors allocating their time to other businesses and potentially having conflicts of interest with our business or in approving our initial Business Combination;
|
• |
our potential ability to obtain additional financing to complete our initial Business Combination;
|
• |
our pool of prospective target businesses;
|
• |
our ability to consummate an initial Business Combination due to the uncertainty resulting from the COVID-19 pandemic;
|
• |
the ability of our officers and directors to generate a number of potential Business Combination opportunities;
|
• |
our public securities’ potential liquidity and trading;
|
• |
the lack of a market for our securities;
|
• |
the use of proceeds not held in the Trust Account or available to us from interest income on the Trust Account balance;
|
• |
the Trust Account not being subject to claims of third parties;
|
• |
our financial performance following our IPO; or
|
• |
the other risks and uncertainties discussed in “Risk Factors” and our other reports filed with the SEC, including our Form 10-K/A.
|
• |
may significantly dilute the equity interest of investors in our initial public offering, which dilution would increase if the anti-dilution provisions in the Class B ordinary shares resulted in the issuance of Class A ordinary shares
on a greater than one-to-one basis upon conversion of the Class B ordinary shares;
|
• |
may subordinate the rights of holders of Class A ordinary shares if preference shares are issued with rights senior to those afforded our Class A ordinary shares;
|
• | could cause a change in control if a substantial number of our Class A ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors; |
• |
may have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us;
|
• |
may adversely affect prevailing market prices for our units, Class A ordinary shares and/or warrants; and
|
• |
may not result in adjustment to the exercise price of our warrants.
|
• |
default and foreclosure on our assets if our operating revenues after an initial Business Combination are insufficient to repay our debt obligations;
|
• |
acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver
or renegotiation of that covenant;
|
• |
our immediate payment of all principal and accrued interest, if any, if the debt is payable on demand;
|
• |
our inability to obtain necessary additional financing if the debt contains covenants restricting our ability to obtain such financing while the debt is outstanding;
|
• |
our inability to pay dividends on our Class A ordinary shares;
|
• |
using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our Class A ordinary shares if declared, expenses, capital expenditures, acquisitions and
other general corporate purposes;
|
• |
limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;
|
• |
increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and
|
• |
limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who
have less debt.
|
Item 3. |
Quantitative and Qualitative Disclosure About Market Risk
|
Item 4. |
Controls and Procedures
|
Item 1A. |
Risk Factors.
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities
|
Item 3. |
Defaults Upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits.
|
Exhibit
Number
|
Description
|
|
Certification of Co-Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Co-Chief Executive Officer and Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
||
Certification of Co-Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
Certification of Co-Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
||
101.INS*
|
XBRL Instance Document
|
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB*
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
104*
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
|
Date: August 16, 2023
|
Twin Ridge Capital Acquisition Corp.
|
|
By:
|
/s/ William P. Russell, Jr.
|
|
Name:
|
William P. Russell, Jr.
|
|
Title:
|
Co-Chief Executive Officer and Chief Financial Officer
|