Amended Quarterly Report (10-q/a)

trueQ3Alpha Capital Acquisition Co0001836547P10DNY--12-31Included an aggregate of up to 750,000 Class B ordinary shares that were intended to be forfeited if the over-allotment option is not exercised in full or in part by the underwriters. In connection with the underwriters’ full exercise of their over-allotment option on February 23, 2021, the 750,000 shares were no longer subject to forfeiture. 0001836547 2021-09-30 0001836547 2020-12-31 0001836547 2021-01-01 2021-09-30 0001836547 2021-07-01 2021-09-30 0001836547 2021-01-01 2021-03-31 0001836547 2021-04-01 2021-06-30 0001836547 2021-02-23 2021-02-23 0001836547 2021-03-31 0001836547 2021-06-30 0001836547 us-gaap:CommonClassBMember 2021-09-30 0001836547 us-gaap:CommonClassAMember 2021-09-30 0001836547 us-gaap:CommonClassBMember us-gaap:OverAllotmentOptionMember 2021-09-30 0001836547 srt:MinimumMember 2021-09-30 0001836547 aspc:PublicWarrantsMember aspc:ShareTriggerPriceTwoMember 2021-09-30 0001836547 aspc:PublicWarrantsMember aspc:ShareTriggerPriceOneMember 2021-09-30 0001836547 us-gaap:USTreasurySecuritiesMember 2021-09-30 0001836547 us-gaap:FairValueInputsLevel3Member 2021-09-30 0001836547 us-gaap:FairValueInputsLevel2Member 2021-09-30 0001836547 us-gaap:FairValueInputsLevel1Member 2021-09-30 0001836547 us-gaap:FairValueInputsLevel3Member aspc:UsTreasurySecuritiesHeldInTrustAccountMember 2021-09-30 0001836547 aspc:UsTreasurySecuritiesHeldInTrustAccountMember us-gaap:FairValueInputsLevel2Member 2021-09-30 0001836547 us-gaap:FairValueInputsLevel1Member aspc:UsTreasurySecuritiesHeldInTrustAccountMember 2021-09-30 0001836547 aspc:UsTreasurySecuritiesHeldInTrustAccountMember 2021-09-30 0001836547 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member 2021-09-30 0001836547 us-gaap:FairValueInputsLevel2Member us-gaap:MoneyMarketFundsMember 2021-09-30 0001836547 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member 2021-09-30 0001836547 us-gaap:MoneyMarketFundsMember 2021-09-30 0001836547 aspc:PrivatePlacementWarrantsMember us-gaap:FairValueInputsLevel3Member aspc:WarrantLiabilityMember 2021-09-30 0001836547 aspc:PrivatePlacementWarrantsMember us-gaap:FairValueInputsLevel2Member aspc:WarrantLiabilityMember 2021-09-30 0001836547 aspc:PrivatePlacementWarrantsMember us-gaap:FairValueInputsLevel1Member aspc:WarrantLiabilityMember 2021-09-30 0001836547 aspc:PrivatePlacementWarrantsMember aspc:WarrantLiabilityMember 2021-09-30 0001836547 aspc:PublicWarrantsMember us-gaap:FairValueInputsLevel3Member aspc:WarrantLiabilityMember 2021-09-30 0001836547 aspc:PublicWarrantsMember us-gaap:FairValueInputsLevel2Member aspc:WarrantLiabilityMember 2021-09-30 0001836547 aspc:PublicWarrantsMember us-gaap:FairValueInputsLevel1Member aspc:WarrantLiabilityMember 2021-09-30 0001836547 aspc:PublicWarrantsMember aspc:WarrantLiabilityMember 2021-09-30 0001836547 us-gaap:CommonClassBMember aspc:SponsorMember 2021-09-30 0001836547 aspc:SponsorMember aspc:SharePriceMoreThanOrEqualsToUsdTwelveMember 2021-09-30 0001836547 aspc:WorkingCapitalLoanMember 2021-09-30 0001836547 us-gaap:MeasurementInputExpectedTermMember 2021-09-30 0001836547 us-gaap:MeasurementInputPriceVolatilityMember 2021-09-30 0001836547 us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-09-30 0001836547 us-gaap:MeasurementInputExpectedDividendRateMember 2021-09-30 0001836547 us-gaap:MeasurementInputSharePriceMember 2021-09-30 0001836547 srt:ScenarioPreviouslyReportedMember 2021-09-30 0001836547 srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember us-gaap:CommonClassAMember 2021-09-30 0001836547 srt:RevisionOfPriorPeriodChangeInAccountingPrincipleAdjustmentMember 2021-09-30 0001836547 us-gaap:CommonClassBMember 2020-12-31 0001836547 us-gaap:CommonClassAMember 2020-12-31 0001836547 aspc:WorkingCapitalLoanMember 2020-12-31 0001836547 us-gaap:CommonClassBMember 2021-01-01 2021-09-30 0001836547 us-gaap:CommonClassAMember 2021-01-01 2021-09-30 0001836547 us-gaap:OverAllotmentOptionMember us-gaap:CommonClassBMember 2021-01-01 2021-09-30 0001836547 srt:MinimumMember 2021-01-01 2021-09-30 0001836547 srt:MaximumMember aspc:PrivatePlacementWarrantsMember 2021-01-01 2021-09-30 0001836547 aspc:PublicWarrantsMember 2021-01-01 2021-09-30 0001836547 aspc:PublicWarrantsMember srt:MaximumMember 2021-01-01 2021-09-30 0001836547 aspc:PublicWarrantsMember us-gaap:CommonClassAMember aspc:ShareTriggerPriceTwoMember 2021-01-01 2021-09-30 0001836547 aspc:ShareTriggerPriceOneMember aspc:PublicWarrantsMember us-gaap:CommonClassAMember 2021-01-01 2021-09-30 0001836547 aspc:PublicWarrantsMember aspc:ShareTriggerPriceTwoMember 2021-01-01 2021-09-30 0001836547 aspc:ShareTriggerPriceOneMember aspc:PublicWarrantsMember 2021-01-01 2021-09-30 0001836547 aspc:PublicWarrantsMember aspc:ShareTriggerPriceOneMember srt:MaximumMember 2021-01-01 2021-09-30 0001836547 aspc:PublicWarrantsMember aspc:ShareTriggerPriceOneMember srt:MinimumMember 2021-01-01 2021-09-30 0001836547 aspc:PublicWarrantsMember srt:MinimumMember 2021-01-01 2021-09-30 0001836547 us-gaap:CommonClassBMember aspc:SponsorMember 2021-01-01 2021-09-30 0001836547 aspc:SharePriceMoreThanOrEqualsToUsdTwelveMember aspc:SponsorMember 2021-01-01 2021-09-30 0001836547 aspc:AdministrativeServiceFeeMember 2021-01-01 2021-09-30 0001836547 us-gaap:WarrantMember 2021-01-01 2021-09-30 0001836547 aspc:ClassACommonStockAndWarrantsMember 2021-01-01 2021-09-30 0001836547 srt:RevisionOfPriorPeriodReclassificationAdjustmentMember 2021-01-01 2021-09-30 0001836547 us-gaap:CommonClassBMember 2021-07-01 2021-09-30 0001836547 us-gaap:CommonClassAMember 2021-07-01 2021-09-30 0001836547 us-gaap:AdditionalPaidInCapitalMember 2021-07-01 2021-09-30 0001836547 us-gaap:RetainedEarningsMember 2021-07-01 2021-09-30 0001836547 aspc:WarrantsMember 2021-07-01 2021-09-30 0001836547 us-gaap:AdditionalPaidInCapitalMember 2021-01-01 2021-03-31 0001836547 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001836547 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001836547 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-01-01 2021-03-31 0001836547 aspc:WarrantsMember 2021-01-01 2021-03-31 0001836547 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassAMember 2021-01-01 2021-03-31 0001836547 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2021-01-01 2021-03-31 0001836547 us-gaap:CommonClassAMember aspc:AsRestatedMember 2021-01-01 2021-03-31 0001836547 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassBMember 2021-01-01 2021-03-31 0001836547 srt:RestatementAdjustmentMember us-gaap:CommonClassBMember 2021-01-01 2021-03-31 0001836547 us-gaap:CommonClassBMember aspc:AsRestatedMember 2021-01-01 2021-03-31 0001836547 srt:ScenarioPreviouslyReportedMember 2021-01-01 2021-03-31 0001836547 srt:RestatementAdjustmentMember 2021-01-01 2021-03-31 0001836547 aspc:AsRestatedMember 2021-01-01 2021-03-31 0001836547 us-gaap:OverAllotmentOptionMember us-gaap:CommonClassBMember 2021-02-23 2021-02-23 0001836547 us-gaap:IPOMember 2021-02-23 2021-02-23 0001836547 us-gaap:OverAllotmentOptionMember 2021-02-23 2021-02-23 0001836547 us-gaap:PrivatePlacementMember 2021-02-23 2021-02-23 0001836547 aspc:SponsorMember 2021-02-23 2021-02-23 0001836547 srt:ChiefExecutiveOfficerMember 2021-02-23 2021-02-23 0001836547 us-gaap:CommonClassAMember aspc:PublicWarrantsMember aspc:ShareTriggerPriceOneMember 2021-02-23 2021-02-23 0001836547 us-gaap:IPOMember 2021-02-23 0001836547 us-gaap:MeasurementInputExpectedTermMember 2021-02-23 0001836547 us-gaap:MeasurementInputPriceVolatilityMember 2021-02-23 0001836547 us-gaap:MeasurementInputRiskFreeInterestRateMember 2021-02-23 0001836547 us-gaap:MeasurementInputExpectedDividendRateMember 2021-02-23 0001836547 us-gaap:MeasurementInputSharePriceMember 2021-02-23 0001836547 us-gaap:OverAllotmentOptionMember aspc:SponsorMember 2021-01-01 2021-01-31 0001836547 us-gaap:OverAllotmentOptionMember aspc:SponsorMember 2021-01-31 0001836547 aspc:SponsorMember 2020-12-11 0001836547 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-04-01 2021-06-30 0001836547 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-04-01 2021-06-30 0001836547 us-gaap:RetainedEarningsMember 2021-04-01 2021-06-30 0001836547 aspc:WarrantsMember 2021-04-01 2021-06-30 0001836547 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001836547 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001836547 aspc:AsRestatedMember us-gaap:CommonClassAMember 2021-04-01 2021-06-30 0001836547 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassBMember 2021-04-01 2021-06-30 0001836547 srt:RestatementAdjustmentMember us-gaap:CommonClassBMember 2021-04-01 2021-06-30 0001836547 aspc:AsRestatedMember us-gaap:CommonClassBMember 2021-04-01 2021-06-30 0001836547 srt:ScenarioPreviouslyReportedMember 2021-04-01 2021-06-30 0001836547 srt:RestatementAdjustmentMember 2021-04-01 2021-06-30 0001836547 us-gaap:CommonClassAMember 2021-11-10 0001836547 us-gaap:CommonClassBMember 2021-11-10 0001836547 srt:ScenarioPreviouslyReportedMember 2021-03-31 0001836547 srt:RestatementAdjustmentMember 2021-03-31 0001836547 aspc:AsRestatedMember 2021-03-31 0001836547 srt:ScenarioPreviouslyReportedMember 2021-06-30 0001836547 srt:RestatementAdjustmentMember 2021-06-30 0001836547 aspc:AsRestatedMember 2021-06-30 0001836547 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001836547 srt:RestatementAdjustmentMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001836547 aspc:AsRestatedMember us-gaap:CommonClassAMember 2021-01-01 2021-06-30 0001836547 srt:ScenarioPreviouslyReportedMember us-gaap:CommonClassBMember 2021-01-01 2021-06-30 0001836547 srt:RestatementAdjustmentMember us-gaap:CommonClassBMember 2021-01-01 2021-06-30 0001836547 aspc:AsRestatedMember us-gaap:CommonClassBMember 2021-01-01 2021-06-30 0001836547 srt:ScenarioPreviouslyReportedMember 2021-01-01 2021-06-30 0001836547 srt:RestatementAdjustmentMember 2021-01-01 2021-06-30 0001836547 aspc:AsRestatedMember 2021-01-01 2021-06-30 0001836547 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-09-30 0001836547 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-09-30 0001836547 aspc:WarrantsMember 2021-09-30 0001836547 us-gaap:RetainedEarningsMember 2021-09-30 0001836547 us-gaap:AdditionalPaidInCapitalMember 2021-09-30 0001836547 us-gaap:RetainedEarningsMember 2020-12-31 0001836547 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001836547 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2020-12-31 0001836547 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2020-12-31 0001836547 aspc:WarrantsMember 2020-12-31 0001836547 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-03-31 0001836547 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-03-31 0001836547 aspc:WarrantsMember 2021-03-31 0001836547 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001836547 us-gaap:RetainedEarningsMember 2021-03-31 0001836547 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-06-30 0001836547 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-06-30 0001836547 aspc:WarrantsMember 2021-06-30 0001836547 us-gaap:AdditionalPaidInCapitalMember 2021-06-30 0001836547 us-gaap:RetainedEarningsMember 2021-06-30 iso4217:USD xbrli:shares xbrli:pure utr:Day utr:Year iso4217:USD xbrli:shares utr:Y

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM

10-Q/A

(Amendment No. 1)

 

 

 

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2021

OR

 

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

    

    

    

    

to

    

    

    

    

.

 

 

ALPHA CAPITAL ACQUISITION COMPANY

(Exact name of registrant as specified in its charter)

 

 

 

Cayman Islands		001-40080		98-1574856
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification Number)

1230 Avenue of the Americas
16

th

Floor
New York, NY 10020

(Address of principal executive offices, including zip code)

(732)

838-4533

Registrant’s Telephone Number, Including Area Code

Not Applicable

(Former name or former address, if changed since last report)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Class A ordinary shares, par value $0.0001 per share		ASPC		Nasdaq Capital Market
Redeemable warrants, each one whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50		ASPCW		Nasdaq Capital Market
Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant		ASPCU		Nasdaq Capital Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes

   ☒    No   ☐ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation

S-T

(§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes

   ☒    No   ☐ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a

non-accelerated

filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule

12b-2

of the Exchange Act.

 

Large accelerated filer		☐		Accelerated filer		☐
Non-accelerated filer		☒		Smaller reporting company		☒
Emerging growth company		☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   

☒

    No   ☐ 

As of November 10, 2021, 

23,000,000 Class A ordinary shares, par value $0.0001 per share, and 5,750,000 Class B ordinary shares, par value $0.0001 per share, were issued and outstanding.

 

 

 

---

Table of Contents

EXPLANATORY NOTE

References throughout this Amendment No. 1 to the Quarterly Report on Form

10-Q

to “we,” “us,” the “Company” or “our company” are to Alpha Capital Acquisition Company, unless the context otherwise indicates.

This Amendment No. 1 (“Amendment No. 1”) to the Quarterly Report on Form

10-Q/A

amends the Quarterly Report on Form

10-Q

of Alpha Capital Acquisition Company as of and for the period ended September 30, 2021, as filed with the Securities and Exchange Commission (“SEC”) on November 12, 2021 (the “First Amended Filing”).

On November 12, 2021, Alpha Capital Acquisition Company (the “Company”) filed its Form

10-Q

for the quarterly period ending September 30, 2021 (the “Q3 Form

10-Q”),

which included a Note 2, Revision of Previously Issued Financial Statements, (“Note 2”) that describes a revision to the Company’s classification of its Class A ordinary shares subject to redemption issued as part of the units sold in the Company’s initial public offering (“IPO”) on February 23, 2021. As described in Note 2, upon its IPO, the Company classified a portion of the Class A ordinary shares as permanent equity to maintain net tangible assets greater than $5,000,000 on the basis that the Company will consummate its initial business combination only if the Company has net tangible assets of at least $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. The Company’s management

re-evaluated

the conclusion and determined that the Class A ordinary shares subject to redemption included certain provisions that require classification of the Class A ordinary shares as temporary equity. As a result, management corrected the error by reclassifying all Class A ordinary shares subject to redemption as temporary equity. This resulted in a revision to the initial carrying value of the Class A ordinary shares subject to possible redemption with the offset recorded to additional

paid-in

capital (to the extent available), accumulated deficit and Class A ordinary shares.

In connection with the change in presentation for the Class A ordinary shares subject to redemption, the Company also revised its earnings per share calculation to allocate net income (loss) pro rata to Class A and Class B ordinary shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of ordinary shares share pro rata in the income (loss) of the Company.

The Company determined the changes were not qualitatively material to the Company’s previously issued financial statements and did not restate its financial statements. Instead, the Company revised its previously issued financial statements in Note 2 to its Q3 Form

10-Q.

Although the qualitative factors that management assessed tended to support a conclusion that the misstatements were not material, these factors were not strong enough to overcome the significant quantitative errors in the financial statements. The qualitative and quantitative factors support a conclusion that the misstatements are material on a quantitative basis. As such, upon further consideration of the change, the Company determined the change in classification of the Class A ordinary shares and change to its presentation of earnings per share is material quantitatively and it should restate its previously issued financial statements.

Therefore, on December 22, 2021, the Company’s management and the audit committee of the Company’s board of directors (the “Audit Committee”) concluded that the Company’s previously issued (i) audited balance sheet as of February 23, 2021 (the “Post IPO Balance Sheet”), (ii) unaudited interim financial statements included in the Company’s Quarterly Report on Form

10-Q

for the quarterly period ended March 31, 2021, filed with the SEC on May 28, 2021, and (iii) unaudited interim financial statements included in the Company’s Quarterly Report on Form

10-Q

for the quarterly period ended June 30, 2021, filed with the SEC on August 13, 2021 (collectively, the “Affected Periods”), should be restated to report all Public Shares as temporary equity and should no longer be relied upon. As such, the Company will restate its financial statements for the Affected Periods in this Quarterly Report on Form

10-Q/A.

The restatement does not (whether or not the change has impact is a known fact) have any impact on its cash position and cash held in the trust account established in connection with the IPO.

After

re-evaluation,

the Company’s management has concluded that in light of the errors described above, a material weakness existed in the Company’s internal control over financial reporting during the Affected Periods and that the Company’s disclosure controls and procedures were not effective. The Company’s remediation plan with respect to such material weakness is described in more detail below in this Quarterly Report on Form

10-Q/A.

 

i

---

Table of Contents

ALPHA CAPITAL ACQUISITION COMPANY

Form

10-Q/A

For the Quarter Ended September 30, 2021

Table of Contents

 

		Page
PART I. FINANCIAL INFORMATION			1
Item 1. Condensed Financial Statements (Unaudited)			1
Unaudited Condensed Balance Sheets as of September 30, 2021 (unaudited) and December 31, 2020			1
Unaudited Condensed Statements of Operations for the Three and Nine Months Ended September 30, 2021			2
Unaudited Condensed Statements of Changes in Shareholders’ Deficit for the Three and Nine Months Ended September 30, 2021			3
Unaudited Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2021			4
Notes to Unaudited Condensed Financial Statements			5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.			18
Item 3. Quantitative and Qualitative Disclosures About Market Risk.			22
Item 4. Controls and Procedures.			22
PART II—OTHER INFORMATION			22
Item 1. Legal Proceedings.			22
Item 1A. Risk Factors.			22
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.			23
Item 3. Defaults upon Senior Securities.			24
Item 4. Mine Safety Disclosures.			24
Item 5. Other Information.			24
Item 6. Exhibits.			25

 

ii

---

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements.

ALPHA CAPITAL ACQUISITION COMPANY

CONDENSED BALANCE SHEETS

 

		September 30, 2021				December 31, 2020
		(unaudited)
Assets
Current assets:
Cash		$	679,887			$	—
Prepaid expenses and other			388,117				—
Deferred offering costs			—				185,996
Total current assets			1,068,004				185,996
Investments held in Trust Account			230,038,825				—
Total Assets		$	231,106,829			$	185,996
Liabilities, Redeemable Shares, and Shareholders’ Deficit
Current liabilities:
Accrued offering costs and expenses		$	22,860			$	166,710
Due to related party			—				402
Promissory note—related party			—				45,000
Total current liabilities			22,860				212,112
Warrant liabilities			10,379,994				—
Deferred underwriting discount			8,050,000				—
Total Liabilities			18,452,854				212,112
Commitments and Contingencies
Class A ordinary shares subject to possible redemption, $0.0001 par value;  23,000,000 shares and 0  shares at $10 per share redemption value at September 30, 2021 and December 31, 2020, respectively			230,000,000				—
Shareholders’ Deficit:
Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding			—				—
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; none issued and outstanding (excluding 23,000,000 shares and 0 shares subject to possible redemption) at September 30, 2021 and December 31, 2020, respectively			—				—
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,750,000 shares issued and outstanding at September 30, 2021 and December 31, 2020			575				575	(1)
Additional paid-in capital			—				24,425
Accumulated deficit			(17,346,600	)			(51,116	)
Total Shareholders’ Deficit			(17,346,025	)			(26,116	)
Total Liabilities, Redeemable Shares, and Shareholders’ Deficit		$	231,106,829			$	185,996

 

(1)

Included an aggregate of up to 750,000 Class B ordinary shares that were intended to be forfeited if the over-allotment option is not exercised in full or in part by the underwriters. In connection with the underwriters’ full exercise of their over-allotment option on February 23, 2021, the 750,000 shares were no longer subject to forfeiture.

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

1

---

Table of Contents

ALPHA CAPITAL ACQUISITION COMPANY

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

 

		For the Three Months Ended September 30, 2021				For the Nine Months Ended September 30, 2021
Formation and operating costs		$	286,108			$	846,394
Loss from operations			(286,108	)			(846,394	)
Other income (expense)
Interest earned on investments held in Trust Account			14,864				38,825
Change in fair value of warrant liabilities			5,334,463				5,695,716
Offering costs allocated to warrants			—				(568,614	)
Total other income, net			5,349,327				5,165,927
Net income		$	5,063,219			$	4,319,533
Weighted average shares outstanding of Class A ordinary shares			23,000,000				18,518,382
Basic and diluted net income per share, Class A ordinary shares		$	0.18			$	0.18
Weighted average shares outstanding of Class B ordinary shares			5,750,000				5,601,648
Basic and diluted net income per share, Class B ordinary shares		$	0.18			$	0.18

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

2

---

Table of Contents

ALPHA CAPITAL ACQUISITION COMPANY

UNAUDITED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ DEFICIT

For the Three and Nine months Ended September 30, 2021

 

		Class A Ordinary Shares								Class B Ordinary Shares								Additional Paid-in Capital				Accumulated Deficit				Total Shareholders’ Deficit
		Shares				Amount				Shares				Amount
Balance as of December 31, 2020			—			$	—				5,750,000			$	575			$	24,425			$	(51,116	)		$	(26,116	)
Cash received in excess of fair value of private placement warrants			—				—				—				—				883,006				—				883,006
Net loss			—				—				—				—				—				(1,734,395	)			(1,734,395	)
Accretion of Class A ordinary shares subject to possible redemption amount			—				—				—				—				(907,431	)			(21,615,017	)			(22,522,448	)
Balance as of March 31, 2021 (unaudited)			—			$	—				5,750,000			$	575			$	—			$	(23,400,528	)		$	(23,399,953	)
Net income			—				—				—				—				—				990,709				990,709
Balance as of June 30, 2021 (unaudited)			—			$	—				5,750,000			$	575			$	—			$	(22,409,819	)		$	(22,409,244	)
Net income			—				—				—				—				—				5,063,219				5,063,219
Balance as of September 30, 2021 (unaudited)			—			$	—				5,750,000			$	575			$	—			$	(17,346,600	)		$	(17,346,025	)

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

3

---

Table of Contents

ALPHA CAPITAL ACQUISITION COMPANY

UNAUDITED CONDENSED STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2021

 

Cash flows from Operating Activities:
Net income		$	4,319,533
Adjustments to reconcile net income to net cash used in operating activities:
Offering costs allocated to warrants			568,614
Change in fair value of warrant liabilities			(5,695,716	)
Interest earned on investments held in Trust Account			(38,825	)
Changes in operating assets and liabilities:
Prepaid expenses and other			(388,117	)
Accrued offering costs and expenses			42,146
Due to related party			(402	)
Net cash used in operating activities			(1,192,767	)
Cash Flows from Investing Activities:
Cash deposited into Trust Account			(230,000,000	)
Net cash used in investing activities			(230,000,000	)
Cash flows from Financing Activities:
Proceeds from Initial Public Offering, net of underwriters’ fees			225,400,000
Proceeds from private placement			7,000,000
Proceeds from promissory note to related party			125,000
Repayment of promissory note to related party			(170,000	)
Payments of offering costs			(482,346	)
Net cash provided by financing activities			231,872,654
Net change in cash			679,887
Cash, beginning of the period			—
Cash, end of the period		$	679,887
Supplemental disclosure of noncash investing and financing activities:
Deferred underwriting commissions charged to additional paid in capital		$	8,050,000

The accompanying notes are an integral part of these unaudited condensed financial statements.

 

4

---

Table of Contents

ALPHA CAPITAL ACQUISITION COMPANY

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

Note 1 — Organization and Business Operations

Organization and General

Alpha Capital Acquisition Company (the “Company”) is a blank check company incorporated as a Cayman Islands exempted company on December 10, 2020. The Company was incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities (a “Business Combination”). The Company is not limited to a particular industry or sector for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

The Company has selected December 31 as its fiscal year end.

As of September 30, 2021, the Company had not commenced any operations. All activity for the period from December 10, 2020 (inception) through September 30, 2021 relates to the Company’s formation and the Initial Public Offering (“IPO”) described below, and since the closing of the IPO, the search for a prospective initial Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company

will generate non-operating income in

the form of interest income from the proceeds derived from the IPO and will recognize changes in the fair value of warrant liabilities as other income (expense).

The Company’s sponsor is Alpha Capital Sponsor LLC, a Cayman Islands limited liability company (the “Sponsor”).

Financing

The registration statement for the Company’s IPO was declared effective on February 18, 2021 (the “Effective Date”). On February 23, 2021, the Company consummated the IPO of 23,000,000 units, including the issuance of 3,000,000 units as a result of the underwriters’ full exercise of the over-allotment option (the “Units” and, with respect to the ordinary shares included in the Units being offered, the “Public Shares”), at $10.00 per Unit, generating gross proceeds of $230,000,000, which is discussed in Note

3

.

Simultaneously with the closing of the IPO, the Company consummated the sale of 7,000,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to the Sponsor, generating gross proceeds of $7,000,000, which is discussed in Note

4

.

Transaction costs amounted to $13,132,346 consisting of $4,600,000 of underwriting discount, $8,050,000 of deferred underwriting discount, and $482,346 of other offering costs.

Trust Account

Following the closing of the IPO on February 23, 2021, $230,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was placed in a Trust Account, which can only be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less in money market funds meeting certain conditions

under Rule 2a-7 of

the Investment Company Act, as determined by the Company, until the earliest of: (i) the completion of a Business Combination and (ii) the redemption of any Public Shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association or (iii) absent an initial Business Combination within 24 months from the closing of the IPO (the “Combination Period”), the Company’s return of the funds held in the Trust Account to the Company’s public shareholders as part of the redemption of the Public Shares.

Initial Business Combination

The stock exchange listing rules require that the Business Combination must be with one or more operating businesses or assets with a fair market value equal to at least 80% of the assets held in the Trust Account (excluding the amount of deferred underwriting commissions held in the Trust Account) at the time of the Company’s signing a definitive agreement in connection with the initial Business Combination. The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to successfully effect a Business Combination.

 

5

---

Table of Contents

The Company will provide the holders of the Public Shares (the “Public Shareholders”) with the opportunity to redeem all or a portion of their Class A ordinary shares upon the completion of the Business Combination, either (i) in connection with a general meeting called to approve the Business Combination or (ii) without a shareholder vote by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a proposed Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Shareholders will be entitled to redeem all or a portion of their Public Shares upon the completion of the initial Business Combination

at a per-share price,

payable in cash, equal to the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of the initial Business Combination, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its taxes, divided by the number of then outstanding Public Shares, subject to the limitations and on the conditions described herein. The amount in the Trust Account is initially $10.00 per public

share. The per-share amount

the Company will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters. There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Class A ordinary shares were recorded at redemption value and classified as temporary equity upon the completion of the IPO, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.”

The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 and, if the Company submits its initial Business Combination to its public shareholders for a vote, the Company will complete its initial Business Combination only if it receives an ordinary resolution under Cayman Islands law, which requires the affirmative vote of a majority of the shareholders who attend and vote at a general meeting of the company. If a shareholder vote is not required and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Memorandum and Articles of Association, conduct the redemptions pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”), and file tender offer documents with the SEC prior to completing a Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor, officers and directors have agreed to vote their Founder Shares and any Public Shares purchased during or after the IPO in favor of approving a Business Combination. Additionally, each Public Shareholder may elect to redeem their Public Shares, irrespective of whether they vote for or against a proposed Business Combination.

Notwithstanding the foregoing, if the Company seeks shareholder approval of the Business Combination and the Company does not conduct redemptions in connection with the initial Business Combination pursuant to the tender offer rules, the Company’s amended and restated memorandum and articles of association provide that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from seeking redemption rights with respect to more than an aggregate of 15% of the shares sold in the IPO without the Company’s prior consent.

The Sponsor, officers and directors have agreed (a) to waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of a Business Combination, and (b) waive their redemption rights with respect to their Founder Shares and Public Shares in connection with a shareholder vote to approve an amendment to the Company’s amended and restated memorandum and articles of association, (c) waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if the Company fails to complete the initial Business Combination within the Combination Period, although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if the Company fails to complete a initial Business Combination within the Combination Period and (d) vote any Founder Shares held by them and any Public Shares purchased during or after the IPO (including in open market and privately-negotiated transactions) in favor of the initial Business Combination.

The Company will have until 24 months from the closing of the IPO to consummate a Business Combination. However, if the Company has not completed a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares,

at a per-share price,

payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account (less taxes payable and up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding Public Shares, which redemption will completely extinguish the rights of the Public Shareholders as shareholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining shareholders and its Board of Directors, liquidate and dissolve, subject in each case of clauses (ii) and (iii), to the Company’s obligations under Cayman Islands law to provide for claims of creditors and in all cases subject to the other requirements of applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Period.

 

 

6

---

Table of Contents

In order to protect the amounts held in the Trust Account, the Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $

10.00

per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $

10.00

 per Public Share, due to reductions in the value of trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of the IPO against certain liabilities, including liabilities under the Securities Act. However, the Company has not asked its Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether its Sponsor has sufficient funds to satisfy its indemnity obligations and the Company believes that the Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure that the Sponsor would be able to satisfy those obligations. As a result, if any such claims were successfully made against the Trust Account, the funds available for the initial Business Combination and redemptions could be reduced to less than $

10.00

per public share. In such event, the Company may not be able to complete the initial Business Combination, and holders would receive such lesser amount per share in connection with any redemption of the Public Shares. None of the Company’s officers or directors will indemnify the Company for claims by third parties including, without limitation, claims by vendors and prospective target businesses.

Liquidity and Capital Resources

As of September 30, 2021, the Company had approximately $0.7 million in its operating bank account, and working capital of approximately $1.0 million.

The Company’s liquidity needs up to February 23, 2021 were satisfied through payment from the Sponsor of $25,000 to cover certain offering costs of the Company in exchange for the issuance of the Founder Shares (see Note

5

), the loan under an unsecured promissory note from the Sponsor of $170,000, and payment of certain costs of the Company of $18,694 by an officer of the Company. The Company repaid the promissory note and the amount due to the officer in full in February 2021. Subsequent to the consummation of the Initial Public Offering and Private Placement, the Company’s liquidity needs have been satisfied through the proceeds from the consummation of the Private Placement not held in the Trust Account.

In addition, in order to finance transaction costs in connection with a Business Combination, the Company’s Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, provide the Company Working Capital Loans (see Note

5

). As of September 30, 2021 and December 31, 2020, there were no amounts outstanding under any Working Capital Loans.

Based on the foregoing, management believes that the Company will have sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, the Company will be using these funds for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination.

Note 2 — Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected through December 31, 2021 or any future periods.

The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the final prospectus filed by the Company with the SEC on February 22, 2021 and the audited financial statements and notes thereto included in the Form

8-K/A

filed by the Company with the SEC on December 23, 2021.

 

7

---

Table of Contents

Restatement of Previously Issued Financial Statements

In connection with the preparation of the Company’s financial statements as of September 30, 2021, management determined it should restate its previously reported financial statements. The Company previously determined the Class A ordinary shares subject to possible redemption to be equal to the redemption value of $

10.00 per Class A ordinary share while also taking into consideration its charter’s requirement that a redemption cannot result in net tangible assets being less than $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. Upon review of its financial statements for the period ended September 30, 2021, the Company reevaluated the classification of the Class A ordinary shares and determined that the Class A ordinary shares issued during the Initial Public Offering and pursuant to the exercise of the underwriters’ overallotment can be redeemed or become redeemable subject to the occurrence of future events considered outside the Company’s control under ASC

480-10-S99.

Therefore, management concluded that the carrying value should include all Class A ordinary shares subject to possible redemption, resulting in the Class A ordinary shares subject to possible redemption being classified as temporary equity in its entirety. As a result, management has noted a reclassification adjustment related to temporary equity and permanent equity. Accordingly, effective with this filing, the Company presents all redeemable Class A ordinary shares as temporary equity and to recognize accretion from the initial book value to redemption value at the time of its Initial Public Offering and in accordance with ASC 480. This resulted in an adjustment to the initial carrying value of the Class A ordinary shares subject to possible redemption with the offset recorded to additional

paid-in

capital (to the extent available), accumulated deficit and Class A ordinary shares.

In connection with the change in presentation for the Class A ordinary shares subject to redemption, the Company also restated its earnings per share calculation to allocate net income (loss) evenly to Class A and Class B ordinary shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of ordinary shares share pro rata in the income (loss) of the Company.

There has been no change in the Company’s total assets, liabilities or operating results but a reclassification of

 

$27,315,600

 

from permanent equity (consisting of

 

$273

 from Class A common stock, $

5,700,310

 f

rom additional paid-in capital and

 

$21,615,017

 f

r

o

m accumulated deficit) to temporary equity at IPO, making all redeemable Class A ordinary shares presented as temporary equity at an aggregate redemption value of

$230,000,000.

The impact of the restatement on the Company’s financial statements is reflected in the following table.

 

		As Previously Reported				Adjustments				As Restated
Balance Sheet at March 31, 2021
Class A ordinary shares subject to possible redemption		$	201,600,040			$	28,399,960			$	230,000,000
Class A ordinary shares			284				(284	)			—
Additional paid-in capital			6,784,659				(6,784,659	)			—
Accumulated deficit		$	(1,785,511	)		$	(21,615,017	)		$	(23,400,528	)
Statement of Operations for the three months ended March 31, 2021
Basic and diluted net income (loss) per share, Class A ordinary shares		$	0.00			$	(0.06	)		$	(0.06	)
Basic and diluted net loss per share, Class B ordinary shares		$	(0.33	)		$	0.27			$	(0.06	)
Statement of Shareholders’ Equity for the three months ended March 31, 2021
Class A ordinary shares subject to possible redemption		$	(201,600,040	)		$	201,600,040			$	—
Accretion of Class A ordinary shares to possible redemption amount		$	—			$	(22,522,448	)		$	(22,522,448	)
Statement of Cash Flows for the three months March 31, 2021
Initial value of Class A ordinary shares subject to possible redemption		$	202,684,400			$	(202,684,400	)		$	—
Change in value of Class A ordinary shares subject to possible redemption		$	(1,084,360	)		$	1,084,360			$	—
Balance Sheet at June 30, 2021
Class A ordinary shares subject to possible redemption		$	202,590,750			$	27,409,250			$	230,000,000
Class A ordinary shares			274				(274	)			—
Additional paid-in capital			5,793,959				(5,793,959	)			—
Accumulated deficit		$	(794,802	)		$	(21,615,017	)		$	(22,409,819	)
Statement of Operations for the three months ended June 30, 2021
Basic and diluted net income (loss) per share, Class A ordinary shares		$	0.00			$	0.03			$	0.03
Basic and diluted net income per share, Class B ordinary shares		$	0.17			$	(0.14	)		$	0.03
Statement of Operations for the six months ended June 30, 2021
Basic and diluted net income (loss) per share, Class A ordinary shares		$	0.00			$	(0.03	)		$	(0.03	)
Basic and diluted net loss per share, Class B ordinary shares		$	(0.14	)		$	0.11			$	(0.03	)
Statement of Shareholders’ Equity for the three months ended June 30, 2021
Class A ordinary shares subject to possible redemption		$	(990,710	)		$	990,710			$	—
Statement of Shareholders’ Equity for the six months ended June 30, 2021
Class A ordinary shares subject to possible redemption		$	(202,590,750	)		$	202,590,750			$	—
Accretion of Class A ordinary shares to possible redemption amount		$	—			$	(22,522,448	)		$	(22,522,448	)
Statement of Cash Flows for the six months ended June 30, 2021
Initial value of Class A ordinary shares subject to possible redemption		$	202,684,400			$	(202,684,400	)		$	—
Change in value of Class A ordinary shares subject to possible redemption		$	(93,650	)		$	93,650			$	—

 

8

---

Table of Contents

Emerging Growth Company Status

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that

apply to non-emerging growth

companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s unaudited condensed financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of the unaudited condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the balance sheet and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these financial statements is the determination of the fair value of the warrant liabilities. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those estimates.

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2021 and December 31, 2020.

Investments Held in Trust Account

Investments held in Trust Account consist of United States Money Market and United States Treasury securities.

The Company classifies its United States Money Market as trading securities. Trading securities are presented on the balance sheet at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments held in Trust Account are included in interest income in the accompanying condensed statement of operations. The estimated fair values of investments held in Trust Account are determined using available market information.

The Company classifies its United States Treasury

securities as held-to-maturity

in accordance with FASB ASC Topic 320 “Investments—Debt and Equity

Securities.” Held-to-maturity

securities are those securities which the Company has the ability and intent to hold until

maturity. Held-to-maturity

treasury securities are recorded at amortized cost and adjusted for the amortization or accretion of premiums or discounts.

 

 

9

---

Table of Contents

A decline in the market

value of held-to-maturity securities

below cost that is deemed to be other than temporary, results in an impairment that reduces the carrying costs to such securities’ fair value. The impairment is charged to earnings and a new cost basis for the security is established. To determine whether an impairment is other than temporary, the Company considers whether it has the ability and intent to hold the investment until a market price recovery and considers whether evidence indicating the cost of the investment is recoverable outweighs evidence to the contrary. Evidence considered in this assessment includes the reasons for the impairment, the severity and the duration of the impairment, changes in value subsequent to

year-end,

forecasted performance of the investee, and the general market condition in the geographic area or industry the investee operates in.

Premiums and discounts are amortized or accreted over the life of

the related held-to-maturity security

as an adjustment to yield using the effective-interest method. Such amortization and accretion is included in the “Trust interest income” line item in the statements of operations. Trust interest income is recognized when earned.

Fair Value Measurements

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

 

•

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.

In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying condensed balance sheets. The fair values of prepaid expenses and other, accounts payable and accrued expenses, due to related party, and promissory note are estimated to approximate the carrying values as of September 30, 2021 and December 31, 2020 due to the short maturities of such instruments.

The fair value of Private Placement Warrants is based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair value. The fair value of the Private Placement Warrants is classified as Level 3. See Note

6

 for additional information on assets and liabilities measured at fair value.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Corporation coverage limits of $250,000. At September 30, 2021 and December 31, 2020, the Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. 

Ordinary Shares Subject to Possible Redemption

The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic

480-10-S99

“Classification and Measurement of Redeemable Securities.” Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.

 

10

---

Table of Contents

Net Income Per Ordinary Share

The Company has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Accretion associated with the redeemable Class A ordinary shares is excluded from earnings per share as the redemption value approximates fair value. Earnings and losses are shared pro rata between the two classes of shares. The 18,500,000 potential ordinary shares for outstanding warrants to purchase the Company’s shares were excluded from diluted earnings per share for the three and nine months ended September 30, 2021 because the warrants are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net income per ordinary share is the same as basic net income per ordinary share for the periods presented. The table below presents a reconciliation of the numerator and denominator used to comput

e

 basic and diluted net income per share for each class of ordinary shares:​​​​​​​

 

 

		For the Three Months Ended September 30, 2021								For the Nine Months Ended September 30, 2021
		Class A				Class B				Class A				Class B
Basic and diluted net income per share:
Numerator:
Allocation of net income		$	4,050,575			$	1,012,644			$	3,316,362			$	1,003,171
Denominator:
Weighted-average shares outstanding			23,000,000				5,750,000				18,518,382				5,601,648
Basic and diluted net income per share		$	0.18			$	0.18			$	0.18			$	0.18

Offering Costs associated with the Initial Public Offering

The Company complies with the requirements of

the ASC 340-10-S99-1 and

SEC Staff Accounting Bulletin (“SAB”) Topic 5A—“Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date. Offering costs are allocated to the separable financial instruments issued in the IPO based on a relative fair value basis compared to total proceeds received. Offering costs associated with warrant liabilities are expensed, and offering costs associated with the Class A ordinary shares are charged to temporary equity.

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are recorded at fair value on the grant

date and re-valued at

each reporting date, with changes in the fair value reported in the statements of operations. Derivative assets and liabilities are classified on the balance sheet as

current or non-current based

on whether

or not net-cash settlement

or conversion of the instrument could be required within 12 months of the balance sheet date. The Company has determined the warrants are a derivative instrument.

Income Taxes

ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30, 2021 and December 31, 2020, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. There is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s condensed financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

 

11

---

Table of Contents

Risks and Uncertainties

Management continues to evaluate the impact of

the COVID-19

pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations, cash flows and/or search for a target company, the specific impact is not readily determinable as of the date of the condensed financial statements. The condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Recent Accounting Pronouncements

In August 2020, the FASB issued Accounting Standards Update (“ASU”)

No. 2020-06,

Debt –debt with Conversion and Other Options (Subtopic

470-20)

and Derivatives and Hedging — Contracts in Entity’ Own Equity (Subtopic

815-40):

Accounting for Convertible Instruments and Contracts in an Entity’ Own Equity (“ASU

2020-06”),

which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity-linked contracts to qualify for the derivative scope exception, and it simplifies the diluted earnings per share calculation in certain areas. For smaller reporting companies, this update is effective for fiscal years beginning after December 15, 2023, and interim periods within those fiscal years. Early adoption is permitted. Management is currently evaluating the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s financial statements.

Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed financial statements.

Note

3

 — Initial Public Offering

Pursuant to the IPO, the Company sold 23,000,000 Units, including 3,000,000 Units as a result of the underwriters’ full exercise of the over-allotment option, at a price of $10.00 per Unit. Each Unit consists of one Class A ordinary

share and one-half of

one redeemable warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one Class A ordinary share at an exercise price of $11.50 per whole share.

An aggregate of $10.00 per Unit sold in the IPO was held in the Trust Account and can only be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less in money market funds meeting certain conditions

under Rule 2a-7 of

the Investment Company Act. As of February 23, 2021, $230,000,000 of the IPO proceeds was held in the Trust Account.

Public Warrants

Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) one year from the closing of the IPO. The Public Warrants will expire five years from the completion of a Business Combination or earlier upon redemption or liquidation.

The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the Class A ordinary shares underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable and the Company will not be obligated to issue a Class A ordinary share upon exercise of a warrant unless the Class A ordinary share issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants.

The Company has agreed that as soon as practicable, but in no event later than 15 business days, after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the Class A ordinary shares issuable upon exercise of the warrants. The Company will use its commercially reasonable efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration or redemption of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the Class A ordinary shares issuable upon exercise of the warrants is not effective by the sixtieth (60th) business day after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration

 

12

---

Table of Contents

statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if the Company’s Class A ordinary shares are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elect, it will not be required to file or maintain in effect a registration statement, and in the event the Company does not so elect, it will use its commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In such event, each holder would pay the exercise price by surrendering each such warrant for that number of Class A ordinary shares equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of Class A ordinary shares underlying the warrants, multiplied the excess of the “fair market value” less the exercise price of the warrants by (y) the fair market value and (B) 0.361. The “fair market value” shall mean the volume weighted average price of the Class A ordinary shares for the 10 trading days ending on the trading day prior to the date on which the notice of exercise is received by the warrant agent.

Redemption of warrants when the price per Class A ordinary share equals or exceeds $18.00

Once the warrants become exercisable, the Company may redeem the outstanding warrants (except as described with respect to the Private Placement Warrants):

 

•

in whole and not in part;

 

•

at a price of $0.01 per warrant;

 

•

upon no 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 three business days before the Company sends the notice of redemption to the warrant holders (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like).

If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

 

Redemption of warrants when the price per Class A ordinary share equals or exceeds $10.00

Once the warrants become exercisable, the Company may redeem the outstanding warrants:

 

•

in whole and not in part;

 

•

at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption; provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares determined based on the redemption date and the fair market value of the Class A ordinary shares;

 

•

if, and only if, the Reference Value (as defined above under “Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00”) equals or exceeds $10.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like); and

 

•

if the Reference Value is less than $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above.

In addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per Class A ordinary share (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of its Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $10.00 and $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 100% and 180% of the higher of the Market Value and the Newly Issued Price, respectively.

 

13

---

Table of Contents

Note 4 — Private Placement

Simultaneously with the closing of the IPO, the Sponsor purchased an aggregate of 7,000,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, for an aggregate purchase price of $7,000,000, in a private placement. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless.

The Private Placement Warrants are identical to the warrants sold in the IPO except that the Private Placement Warrants, so long as they are held by the Sponsor or its permitted transferees, (i) will not be redeemable by the Company, (ii) may not (including the Class A ordinary shares issuable upon exercise of these warrants), subject to certain limited exceptions, be transferred, assigned or sold by the holders until 30 days after the completion of the initial Business Combination, (iii) may be exercised by the holders on a cashless basis and (iv) will be entitled to registration rights. The Private Placement Warrants (including the Class A ordinary shares issuable upon exercise thereof) may not, subject to certain limited exceptions, be transferred, assigned or sold by the holder.

Note 5 — Related Party Transactions

Founder Shares

As of September 30, 2021, the Company temporarily issued to an officer of the Company, and subsequently assigned to the Sponsor, 5,750,000 Class B ordinary shares, par value $0.0001 (the “Founder Shares”), with a consideration of $25,000, or approximately $0.004 per share, to cover certain offering and formation costs of the Company. In January 2021, the founder shares were assigned to the Sponsor for the same purchase price initially paid by the officer of the Company. The Founder Shares included an aggregate of up to 750,000 shares that were intended to be forfeited depending on the extent to which the underwriters’ over-allotment option was exercised, so that the number of Founder Shares would equal, on an

as-converted basis,

approximately 20% of the Company’s issued and outstanding ordinary shares after the IPO. In connection with the underwriters’ full exercise of their over-allotment option on February 23, 2021, the 750,000 shares are no longer subject to forfeiture.

The Sponsor, and certain officers of the Company, have agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earliest of: (A) one year after the completion of a Business Combination and (B) the date following the completion of the initial Business Combination on which the Company completes a liquidation, merger, share exchange or other similar transaction that results in all of the shareholders having the right to exchange their ordinary shares for cash, securities or other property (the

“Lock-up”).

Notwithstanding the foregoing, if the closing price of the Company’s Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share

sub-divisions,

share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any

30-trading

day period commencing at least 150 days after the initial Business Combination, the Founder Shares will be released from the

Lock-up.

Promissory Note — Related Party

On December 11, 2020, the Company issued an unsecured promissory note (the “P

r

omissory Note”) to an officer of the Company, pursuant to which the Company may borrow up to an aggregate principal amount of $250,000. On January 26, 2021 the Promissory Note was assigned to the Sponsor. The Promissory

Note was non-interest

bearing and payable on the earlier of (i) December 31, 2021 or (ii) the completion of the IPO. As of September 30, 2021 and December 31, 2020, there were $0 and $45,000, respectively, outstanding under the Promissory Note.

Related Party Loans

In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required on a

non-interest

basis (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible into Private Placement Warrants of the post-Business Combination entity at a price of $1.00 per warrant at the option of the lender. The warrants would be identical to the Private Placement Warrants. Except as set forth above, the terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. As of September 30, 2021 and December 31, 2020, the Company had no Working Capital Loans.

 

14

---

Table of Contents

Administrative Service Fee

Commencing on the date of the IPO, the Company began paying its Sponsor or an affiliate thereof up to $55,000 per month for office space, utilities, salaries or other cash compensation paid to consultants to the Sponsor, secretarial and administrative support services provided to members of the Company’s management team and other expenses and obligations of the Sponsor. Upon completion of the initial Business Combination or its liquidation, the Company will cease paying these monthly fees. During the three and nine months ended September 30, 2021, the Company incurred an aggregate amount of $155,850 and $473,539 of administrative service fees.

Note 6 — Recurring Fair Value Measurements

Investments Held in Trust Account

As of September 30, 2021, investment in the Company’s Trust Account consisted of $613 in U.S. Money Market and $230,038,212 in U.S. Treasury Securities. The Company classifies its United States Treasury securities as

held-to-maturity

in accordance with FASB ASC 320 “Investments — Debt and Equity Securities”.

Held-to-maturity

treasury securities are recorded at amortized cost and adjusted for the amortization or accretion of premiums or discounts. The Company considers all investments with original maturities of more than three months but less than one year to be short-term investments. The carrying value approximates the fair value due to its short-term maturity. The carrying value, excluding gross unrealized holding loss and fair value of held to maturity securities on September 30, 2021 are as follows:

 

		Carrying Value/ Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value as of September 30, 2021
U.S. Treasury Securities		$	230,038,212			$	—			$	(4,218	)		$	230,033,994
		$	230,038,212			$	—			$	(4,218	)		$	230,033,994

Recurring Fair Value Measurements

The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of September 30, 2021, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

 

		Total				Quoted Prices In Active Markets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Other Unobservable Inputs (Level 3)
Assets:
U.S. Money Market held in Trust Account		$	613			$	613			$	—			$	—
U.S. Treasury Securities held in Trust Account			230,038,212				230,038,212				—				—
		$	230,038,825			$	230,038,825			$	—			$	—
Liabilities:
Warrant Liability – Public Warrants		$	6,325,000			$	6,325,000			$	—			$	—
Warrant Liability – Private Placement Warrants			4,054,994				—				—				4,054,994
		$	10,379,994			$	6,325,000			$	—			$	4,054,994

There were no assets or liabilities measured at fair value on a recurring basis as of December 31, 2020.

Initial Measurement

The estimated fair value of the Warrants on February 23, 2021 was determined using Level 3 inputs. Inherent in a Monte-Carlo simulation model are assumptions related to expected

share-price volatility (pre-merger and

post-merger), expected term, dividend yield and risk-free interest rate. The Company estimates the volatility of its ordinary shares based on management’s understanding of the volatility associated with instruments of other similar entities. The risk-free interest rate is based on the U.S. Treasury Constant Maturity similar to the expected remaining life of the warrants. The expected life of the warrants is simulated based on management

 

15

---

Table of Contents

assumptions regarding the timing and likelihood of completing a business combination. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero. Once the warrants become exercisable, the Company may redeem the outstanding warrants when the price per ordinary share equals or exceeds $18.00. The assumptions used in calculating the estimated fair values at the end of the reporting period represent the Company’s best estimate. However, inherent uncertainties are involved. If factors or assumptions change, the estimated fair values could be materially different.

The key inputs into the Monte Carlo simulation model for the warrant liabilities were as follows at initial measurement:

 

Input		February 23, 2021 (Initial Measurement)
Expected term (years)			6.53
Expected volatility			14.5	%
Risk-free interest rate			0.85	%
Ordinary share price		$	9.57
Dividend yield			0.00	%

Subsequent Measurement

The fair value of the Public Warrants at September 30, 2021 is classified as Level 1 due to the use of an observable market quote in an active market. As of September 30, 2021, the aggregate value of Public Warrants was $6,325,000.

The estimated fair value of the Private Placement Warrants on September 30, 2021 is determined using Level 3 inputs. Inherent in a Monte-Carlo simulation model are assumptions related to expected

share-price volatility (pre-merger and

post-merger), expected term, dividend yield and risk-free interest rate. The Company estimates the volatility of its ordinary shares based on management’s understanding of the volatility associated with instruments of other similar entities. The risk-free interest rate is based on the U.S. Treasury Constant Maturity similar to the expected remaining life of the warrants. The expected life of the warrants is simulated based on management assumptions regarding the timing and likelihood of completing a business combination. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero. Once the warrants become exercisable, the Company may redeem the outstanding warrants when the price per ordinary share equ

a

ls or exceeds $18.00. The assumptions used in calculating the estimated fair values at the end of the reporting period represent the Company’s best estimate. However, inherent uncertainties are involved. If factors or assumptions change, the estimated fair values could be materially different.

The key inputs into the Monte Carlo simulation model for the Private Placement Warrants were as follows at September 30, 2021:

 

Input		September 30, 2021
Expected term (years)			6.21
Expected volatility			10.7	%
Risk-free interest rate			1.19	%
Ordinary share price		$	9.73
Dividend yield			0.00	%

 

16

---

Table of Contents

The following table sets forth a summary of the changes in the fair value of the warrant liability (Level 3) for the nine months ended September 30, 2021:

 

		Warrant Liability
Fair value as of January 1, 2021		$	—
Initial fair value of warrant liabilities upon issuance at IPO			16,075,710
Change in fair value			876,171
Fair value as of March 31, 2021		$	16,951,881
Transfer out of Level 3 to Level 1			(9,315,564	)
Change in fair value			(1,237,424	)
Fair value as of June 30, 2021		$	6,398,893
Change in fair value			(2,343,899	)
Fair value as of September 30, 2021		$	4,054,994

Transfers to/from Levels 1, 2, and 3 are recognized at the end of the reporting period. There was a transfer out of Level 3 to Level 1 for the fair value of the Public Warrants when they began to trade separately from the Units during the nine months ended September 30, 2021.

Note 7 — Commitments and Contingencies

Registration Rights

The holders of the (i) Founder Shares, which were issued in a private placement prior to the closing of the IPO, (ii) Private Placement Warrants, which were issued in a private placement simultaneously with the closing of the IPO and the Class A ordinary shares underlying such Private Placement Warrants and (iii) Private Placement Warrants that may be issued upon conversion of Working Capital Loans will have registration rights to require the Company to register a sale of any of its securities held by them pursuant to a registration rights agreement. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company registers such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the Company’s completion of its initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

Underwriting Agreement

The Company granted the

underwriters a 45-day option

from February 23, 2021 to purchase up to an additional 3,000,000 units to cover over-allotments. On February 23, 2021, the underwriters fully exercised the over-allotment option.

On February 23, 2021, the Company paid an underwriting discount of $4,600,000. Additionally, the underwriters will be entitled to a deferred underwriting discount of 3.5% of the gross proceeds of the IPO held in the Trust Account, or $8,050,000, upon the completion of the Company’s initial Business Combination.

Note 8 — Class A Ordinary Shares Subject to Possible Redemption

The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic

480-10-S99

“Classification and Measurement of Redeemable Securities.” Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.

 

17

---

Table of Contents

As of September 30, 2021, the Class A ordinary shares reflected on the balance sheet are reconciled in the following table:

 

Gross proceeds from IPO		$	230,000,000
Less:
Proceeds allocated to Public Warrants			(9,958,716	)
Class A ordinary shares issuance costs			(12,563,732	)
Plus:
Accretion of carrying value to redemption value			22,522,448
Class A ordinary shares subject to possible redemption		$	230,000,000

Note 9 — Shareholders’ Equity

Preference shares

— The Company is authorized to issue 1,000,000 preference shares with a par value of $0.0001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, 2021 and December 31, 2020 there were no preference shares issued or outstanding.

Class

 A Ordinary Shares

— The Company is authorized to issue 200,000,000 Class A ordinary shares with a par value of $0.0001 per share. Holders of Class A ordinary shares are entitled to one vote for each share. As of September 30, 2021 and December 31, 2020, there were no Class A ordinary shares issued and outstanding, excluding 23,000,000 and 0 Class A ordinary shares subject to possible redemption, respectively.

Class

 B Ordinary Shares

— The Company is authorized to issue 20,000,000 Class B ordinary shares with a par value of $0.0001 per share. Holders of the Class B ordinary shares are entitled to one vote for each share. At September 30, 2021 and December 31, 2020, there were 5,750,000 Class B ordinary shares (the “Founder Shares”) issued and outstanding. The Founder Shares included an aggregate of up to 750,000 shares that were intended to be forfeited depending on the extent to which the underwriters’ over-allotment option is exercised, so that the number of

Founder Shares will equal, on an as-converted basis, approximately 20% of the Company’s issued and outstanding ordinary shares after the IPO. In connection with the underwriters’ full exercise of their over-allotment option on February 23, 2021, the 750,000 shares are no longer subject to forfeiture. 

Holders of Class A ordinary shares and Class B ordinary shares will vote together as a single class on all other matters submitted to a vote of shareholders, except as required by law.

The Class B ordinary shares will automatically convert into Class A ordinary shares concurrently with or immediately following the consummation of the initial Business Combination on a

one-for-one

basis, subject to adjustment for share

sub-divisions,

share capitalizations, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the case that ad

d

itional Class A ordinary shares or equity-linked securities are issued or deemed issued in connection with the Company Business Combination, the number of Class A ordinary shares issuable upon conversion of all Founder Shares will equal, in the aggregate, 20% of the total number of Class A ordinary shares outstanding after such conversion (after giving effect to any redemptions of Class A ordinary shares by public shareholders), including the total number of Class A ordinary shares issued, or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the consummation of a Business Combination, excluding any Class A ordinary shares or equity-linked securities exercisable for or convertible into Class A ordinary shares issued, or to be issued, to any seller in a Business Combination and any Private Placement Warrants issued to the Sponsor, officers or directors upon conversion of Working Capital Loans; provided that such conversion of Founder Shares will never occur on a less than

one-for-one basis.

Note 10 — Subsequent Events

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the unaudited condensed financial statements were issued. The Company did not identify any subsequent events that would have required adjustment or disclosure in the unaudited condensed financial statements, other than the restatement discussed in Note 2.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

References to the “Company,” “our,” “us” or “we” refer to Alpha Capital Acquisition Company. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited condensed financial statements and the notes thereto contained elsewhere in this report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

 

18

---

Table of Contents

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report

on Form 10-Q/A includes

forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other SEC filings.

Overview

We are a blank check company incorporated on December 10, 2020 as a Cayman Islands exempted company and incorporated for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. We have not selected any specific business combination target and we have not, nor has anyone on our behalf, engaged in any substantive discussions directly or indirectly, with any business combination target with respect to an initial business combination with us. While we may pursue an initial business combination target in any industry, we intend to focus our search on companies in the technology sector, primarily in Latin America. We intend to effectuate our initial business combination using cash from the proceeds of this offering and the private placement of the private placement warrants, the proceeds of the sale of our shares in connection with our initial business combination (pursuant to forward purchase agreements or backstop agreements we may enter into following the consummation of this offering or otherwise), shares issued to the owners of the target, debt issued to bank or other lenders or the owners of the target, or a combination of the foregoing.

The issuance of additional shares in connection with a business combination to the owners of the target or other investors:

 

•

may significantly dilute the equity interest of investors in this 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 preferred 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; and

 

•

may adversely affect prevailing market prices for our Class A ordinary shares and/or warrants.

Similarly, if we issue debt securities or otherwise incur significant debt to bank or other lenders or the owners of a target, it could result in:

 

•

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 security is payable on demand;

 

•

our inability to obtain necessary additional financing if the debt security contains covenants restricting our ability to obtain such financing while the debt security is outstanding;

 

•

our inability to pay dividends on our Class A ordinary shares;

 

19

---

Table of Contents

•

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.

We expect to incur significant costs in the pursuit of our initial business combination. We cannot assure you that our plans to raise capital or to complete our initial Business Combination will be successful.

Results of Operations

Our entire activity since inception up to September 30, 2021 relates to our formation, the Initial Public Offering and, since the closing of the Initial Public Offering, a search for a Business Combination candidate. We will not be generating any operating revenues until the closing and completion of our initial Business Combination, at the earliest.

For the three months ended September 30, 2021, we had net income of $5,063,219, which consisted of $14,864 in interest earned on marketable securities held in the Trust Account and $5,334,463 in change in fair value of warrants, offset by $286,108 in formation and operating costs.

For the nine months ended September 30, 2021, we had net income of $4,319,533, which consisted of $38,825 in interest earned on marketable securities held in the Trust Account and $5,695,716 in change in fair value of warrants, offset by $846,394 in formation and operating costs and $568,614 in issuance costs allocated to the warrant liabilities.

Liquidity and Capital Resources

As of September 30, 2021, we had approximately $0.7 million in our operating bank account, and working capital of approximately $1.0 million.

Our liquidity needs up to February 23, 2021 were satisfied through payment from the Sponsor of $25,000 to cover our certain offering costs in exchange for the issuance of the founder shares, the loan under an unsecured promissory note from the Sponsor of $170,000, and payment of our certain costs of $18,694 by our officer. We repaid the promissory note and the amount due to the officer in full in February 2021. Subsequent to the consummation of the Initial Public Offering and Private Placement, our liquidity needs have been satisfied through the proceeds from the consummation of the Private Placement not held in the Trust Account.

In addition, in order to finance transaction costs in connection with a Business Combination, our Sponsor or an affiliate of the Sponsor, or certain of our officers and directors may, but are not obligated to, provide us Working Capital Loans. To date, there were no amounts outstanding under any Working Capital Loans.

Based on the foregoing, management believes that we will have sufficient working capital and borrowing capacity to meet our needs through the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, we will be using these funds for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination.

Critical Accounting Policies and Estimates

The preparation of the unaudited condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. We have identified the following as our critical accounting policies:

 

20

---

Table of Contents

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are recorded at fair value on the grant date and

re-valued

at each reporting date, with changes in the fair value reported in the statements of operations. Derivative assets and liabilities are classified on the balance sheet as current

or non-current

based on whether or

not net-cash

settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The Company has determined the warrants are a derivative instrument.

Ordinary Shares Subject to Possible Redemption

The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic

480-10-S99

“Classification and Measurement of Redeemable Securities.” Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, Class A ordinary shares subject to possible redemption is presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet.

Net Income Per Ordinary Share

The Company has two classes of shares, which are referred to as Class A ordinary shares and Class B ordinary shares. Earnings and losses are shared pro rata between the two classes of shares. The 18,500,000 potential ordinary shares for outstanding warrants to purchase the Company’s shares were excluded from diluted earnings per share for the three and nine months ended September 30, 2021 because the warrants are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net income per ordinary share is the same as basic net income per ordinary share for the periods.

Off-Balance Sheet Arrangements

As of September 30, 2021, we did not

have any off-balance sheet

arrangements as defined in Item 303(a)(4)(ii)

of Regulation S-K.

JOBS Act

The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is

required for non-emerging growth

companies. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions we may not be required to, among other things, (i) provide an independent registered public accounting firm’s attestation report on our system of internal controls over financial reporting pursuant to Section 404, (ii) provide all of the compensation disclosure that may be

required of non-emerging growth

public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the report of the independent registered public accounting firm providing additional information about the audit and the financial statements (auditor discussion and analysis), and (iv) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. These exemptions will apply for a period of five years following the completion of this offering or until we are no longer an “emerging growth company,” whichever is earlier.

 

21

---

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company as defined by Rule

12b-2

of the Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures.

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under Securities Exchange Act of 1934, as amended (the “Exchange Act”) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

As required by Rules

13a-15

and

15d-15

under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of September 30, 2021, due to the material weakness in accounting for complex financial instruments. In light of this material weakness, we performed additional analysis as deemed necessary to ensure that our unaudited interim financial statements were prepared in accordance with U.S. generally accepted accounting principles. Accordingly, management believes that the financial statements included in this Quarterly Report on Form

10-Q/A

present fairly in all material respects our financial position, results of operations and cash flows for the periods presented.

It is noted that the

non-cash

adjustments to the financial statements do not impact the amounts previously reported for our cash and cash equivalents or total assets. In light of this material weakness, we performed additional analysis as deemed necessary to ensure that our unaudited interim financial statements were prepared in accordance with U.S. generally accepted accounting principles.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the fiscal quarter of 2021 covered by this Quarterly Report on Form

10-Q/A

that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. In light of the material weakness, we have enhanced our processes to identify and appropriately apply applicable accounting requirements to better evaluate and understand the nuances of the complex accounting standards that apply to our financial statements. Our plans at this time include providing enhanced access to accounting literature, research materials and documents and increased communication among our personnel and third-party professionals with whom we consult regarding complex accounting applications. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.

PART II—OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

Factors that could cause our actual results to differ materially from those in this Quarterly Report on Form

10-Q

are any of the risks described in our final prospectus relating to the Initial Public Offering dated February 18, 2021 filed with the SEC on February 22, 2021 (the “Prospectus”) and in our quarterly report on Form

10-Q

for the three months ended March 31, 2021 (the “First Quarter 2021

10-Q”).

As of the date of this Quarterly Report, there have been no material changes to the risk factors described in the Prospectus or the First Quarter 2021

10-Q,

except as described below. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

 

22

---

Table of Contents

We have identified material weaknesses in our internal control over financial reporting. These material weaknesses could continue to adversely affect our ability to report our results of operations and financial condition accurately and in a timely manner.

On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the SEC (the “SEC Staff”) issued a statement entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Staff Statement”). After consideration of the guidance in the SEC Staff Statement, the Company concluded that, in light of the SEC Staff Statement, it was appropriate to revise the previously issued balance sheet as of February 23, 2021. As part of such process, the Company identified a material weakness in its internal control over financial reporting related to the accounting treatment of the warrants due to a failure to correctly apply the complex accounting standards that apply to the Company’s financial statements. This material weakness was remediated during the fiscal quarter ended September 30, 2021.

In addition, in connection with the preparation of the Company’s financial statements as of September 30, 2021, management

re-evaluated

the classification of the redeemable Class A ordinary shares. The Board, in consultation with management and upon the recommendation of the audit committee of the Board, concluded that the previously issued financial statements as of February 23, 2021 and for the for the quarterly periods ended March 31, 2021, June 30, 2021 and September 30, 2021 should be restated to report all Class A ordinary shares as temporary equity. As part of such process, management concluded that the Company’s disclosure controls and procedures were not effective as of September 30, 2021, due to a failure to correctly apply the complex accounting standards that apply to the Company’s financial statements, including with respect to certain complex equity instruments and equity linked instruments, which resulted in the material weakness in the Company’s internal control over financial reporting. See Note 2 for additional information regarding the restatement and the related financial statement effects.

Management is responsible for establishing and maintaining adequate internal controls over financial reporting designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Management is likewise required, on a quarterly basis, to evaluate the effectiveness of the Company’s internal controls and to disclose any changes and material weaknesses identified through such evaluation of those internal controls. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected and corrected on a timely basis.

The material weakness relating to warrant accounting was remediated during the fiscal quarter ended September 30, 2021. The Company has taken a number of measures to remediate the material weakness relating to classification of the Class A ordinary shares; however, if the Company is unable to remediate its material weakness in a timely manner, or if the Company identifies additional material weaknesses, it may be unable to provide required financial information in a timely or reliable manner and it may materially incorrectly report financial information. Likewise, if the Company’s financial statements are not filed on a timely basis as a public company, it could be subject to sanctions or investigations by NASDAQ, the SEC or other regulatory authorities, which could result in a material adverse effect on the Company’s business. The existence of material weaknesses or significant deficiencies in internal control over financial reporting could adversely affect the Company’s reputation or investor perceptions of the Company, which could have a negative effect on the trading price of the Company’s securities. In addition, the Company may incur additional costs to remediate the material weakness in its internal control over financial reporting.

The Company can give no assurance that the measures it has taken and plans to take in the future will remediate the material weakness identified or that any additional material weaknesses or restatements of financial results will not arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or circumvention of these controls or otherwise.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

In December 2020, an executive officer purchased 5,750,000 Class B ordinary shares for a capital contribution of $25,000, or approximately $0.004 per share. In January 2021, such 5,750,000 shares of the Company’s Class B ordinary shares were transferred to the Sponsor for the same purchase price initially paid by the executive officer of the Company, of which up to 750,000 shares were subject to forfeiture if the over-allotment option was not exercised by the underwriters in full. On February 19, 2021, the underwriters exercised their over-allotment option in full; hence, the 750,000 Founder Shares are no longer subject to forfeiture and the Sponsor holds 5,750,000 Class B ordinary shares.

 

23

---

Table of Contents

Our Sponsor is an accredited investor for purposes of Rule 501 of Regulation D. Each of the equity holders in our Sponsor is an accredited investor under Rule 501 of Regulation D. The sole business of our Sponsor is to act as the Company’s sponsor in connection with this offering. The limited liability company agreement of our Sponsor provides that its membership interests may only be transferred to our officers or directors or other persons affiliated with our Sponsor, or in connection with estate planning transfers.

Substantially concurrently with the closing of our Initial Public Offering, pursuant to the Private Placement Warrants Purchase Agreement, the Company completed the private sale of an aggregate of 7,000,000 warrants (the “Private Placement Warrants”) to our Sponsor at a purchase price of $1.00 per Private Placement Warrant, generating gross proceeds to the Company of $7,000,000. The Private Placement Warrants are identical to the Warrants sold in the Initial Public Offering, except that the Private Placement Warrants, so long as they are held by our Sponsor or its permitted transferees, (i) are not redeemable by the Company, (ii) may not (including the Class A ordinary shares issuable upon exercise of such Private Placement Warrants), subject to certain limited exceptions, be transferred, assigned or sold by such holders until 30 days after the completion of the Company’s initial business combination, (iii) may be exercised by the holders on a cashless basis and (iv) will be entitled to registration rights. No underwriting discounts or commissions were paid with respect to such sale. The issuance of the Private Placement Warrants was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.

Item 3. Defaults upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

 

24

---

Table of Contents

Item 6. Exhibits.

 

Exhibit Number		Description
31.1*		Certification of Chief Executive Officer (Principal 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.
31.2*		Certification of Chief Financial Officer (Principal Financial and Accounting 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.
32.1**		Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of Chief Financial Officer (Principal Financial and Accounting 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
EXHIBIT 104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

*	Filed herewith.

**

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.

 

25

---

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

By:		/s/ Rahim Lakhani
		Name:     Rahim Lakhani
		Title:       Chief Financial Officer

Dated: December 28, 2021

 

26