☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 85-4353398 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
113 S. La Brea Avenue., 3rd Floor Los Angeles, CA | 90036 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Units, each consisting of one share of Class A common stock, $0.0001 par value, and one-half of one redeemable warrant | SDACU | The Nasdaq Capital Market | ||
Shares of Class A common stock included as part of the units | SDAC | The Nasdaq Capital Market | ||
Redeemable warrants included as part of the units, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 | SDACW | The Nasdaq Capital Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☒ |
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ITEM 1. |
March 31, 2021 | December 31, 2020 | June 30, 2021 | December 31, 2020 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Assets: | ||||||||||||||||
Cash | $ | 1,418,698 | $ | — | $ | 1,314,242 | $ | 0 | ||||||||
Prepaid Expenses | 1,117,045 | — | 900,376 | 0 | ||||||||||||
Total current assets | 2,535,743 | — | 2,214,618 | 0 | ||||||||||||
Deferred offering costs | — | 282,038 | 0 | 282,038 | ||||||||||||
Cash and securities held in Trust Account | 316,251,560 | — | 316,258,757 | 0 | ||||||||||||
Total Assets | $ | 318,787,303 | $ | 282,038 | $ | 318,473,375 | $ | 282,038 | ||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||
Accrued offering costs and expenses | $ | 77,066 | $ | 244,000 | $ | 115,000 | $ | 244,000 | ||||||||
Promissory note - related party | — | 15,450 | 0 | 15,450 | ||||||||||||
Total current liabilities | 77,066 | 259,450 | 115,000 | 259,450 | ||||||||||||
Deferred underwriting fee | 10,631,250 | — | 10,631,250 | 0 | ||||||||||||
Warrant liability | 17,559,350 | — | 25,709,208 | 0 | ||||||||||||
Total liabilities | 28,267,666 | 259,450 | 36,455,458 | 259,450 | ||||||||||||
Commitments and Contingencies | 0 | 0 | ||||||||||||||
Common stock subject to possible redemption, 28,121,412 and no stock at redemption value at March 31, 2021 and December 31, 2020, respectively | 281,214,123 | — | ||||||||||||||
Common stock subject to possible redemption, 27,701,791 and 0 stock at redemption value at June 30, 2021 and December 31, 2020, respectively | 277,017,913 | 0 | ||||||||||||||
Stockholders’ Equity: | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 stock authorized; none issued and outstanding | — | — | ||||||||||||||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 3,503,588 and 0 shares issued and outstanding (excluding 28,121,412 and 0 stock subject to possible redemption) at March 31, 2021 and December 31, 2020, respectively | 350 | — | ||||||||||||||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 7,906,250 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively(1) | 791 | 791 | ||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0 | 0 | ||||||||||||||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 3,923,209 and 0 shares issued and outstanding (excluding 27,701,791 and 0 stock subject to possible redemption) at June 30, 2021 and December 31, 2020, respectively | 392 | 0 | ||||||||||||||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 7,906,250 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively(1) | 791 | 791 | ||||||||||||||
Additional paid-in capital | — | 24,209 | 4,196,168 | 24,209 | ||||||||||||
Retained earnings (accumulated deficit) | 9,304,373 | (2,412 | ) | 802,653 | (2,412 | ) | ||||||||||
Total stockholders’ equity | 9,305,514 | 22,588 | 5,000,004 | 22,588 | ||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 318,787,303 | $ | 282,038 | $ | 318,473,375 | $ | 282,038 |
(1) | Stock count at December 31, 2020 included up to 1,031,250 founder |
For the Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | |||||||||||
Operating costs | $ | 186,143 | $ | 359,059 | $ | 545,202 | ||||||
Loss from Operations | (186,143 | ) | (359,059 | ) | (545,202 | ) | ||||||
Other income (expense): | ||||||||||||
Interest earned on cash and marketable securities held in Trust Account | 1,560 | 7,197 | 8,757 | |||||||||
Offering costs allocated to warrants | (1,027,907 | ) | 0 | (1,027,907 | ) | |||||||
Excess of fair value over cash received for private placement warrants | (1,939,600 | ) | 0 | (1,939,600 | ) | |||||||
Change in fair value of warrant liability | 12,458,875 | (8,149,858 | ) | 4,309,017 | ||||||||
Total other income (expense) | 9,492,928 | (8,142,661 | ) | 1,350,267 | ||||||||
Net income | $ | 9,306,785 | ||||||||||
Basic and diluted weighted average shares outstanding (1) | 9,887,523 | |||||||||||
Basic and diluted net income per share | $ | 0.94 | ||||||||||
Net (loss) income | $ | (8,501,720 | ) | $ | 805,065 | |||||||
Weighted average shares outstanding, Class A common stock subject to possible redemption | 28,116,801 | 27,837,821 | ||||||||||
Basic and diluted net income per share, Class A common stock subject to possible redemption | 0 | 0 | ||||||||||
Weighted average shares outstanding, Non-redeemable common stock | 11,414,449 | 10,655,204 | ||||||||||
Basic and diluted net (loss) income per share, Non-redeemable common stock | $ | (0.74 | ) | $ | 0.08 |
Class A Common stock | Class B Common stock | Additional Paid-in | Retained | Total Stockholder’s | Class A Common stock | Class B Common stock | Additional Paid-in | Retained | Total Stockholder’s | |||||||||||||||||||||||||||||||||||||||||||||||
Stock | Amount | Stock | Amount | Capital | Earnings | Equity | Stock | Amount | Stock | Amount | Capital | Earnings | Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance as of January 1, 2021 | — | $ | — | 7,906,250 | $ | 791 | $ | 24,209 | $ | (2,412 | ) | $ | 22,588 | 0 | $ | 0 | 7,906,250 | $ | 791 | $ | 24,209 | $ | (2,412 | ) | $ | 22,588 | ||||||||||||||||||||||||||||||
Sale of 31,625,000 Units, net of underwriting discount, offering expenses and fair value of public warrants | 31,625,000 | 3,163 | — | — | 281,187,101 | — | 281,190,264 | 31,625,000 | 3,163 | 0 | 0 | 281,187,101 | 0 | 281,190,264 | ||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | 9,306,785 | 9,306,785 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | - | 0 | - | 0 | 0 | 9,306,785 | 9,306,785 | |||||||||||||||||||||||||||||||||||||||||||||||||
Common stock subject to possible redemption | (28,121,412 | ) | (2,813 | ) | — | — | (281,211,310 | ) | — | (281,214,123 | ) | (28,121,412 | ) | (2,813 | ) | 0 | 0 | (281,211,310 | ) | 0 | (281,214,123 | ) | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 (unaudited) | 3,503,588 | $ | 350 | 7,906,250 | $ | 791 | $ | — | $ | 9,304,373 | $ | 9,305,514 | 3,503,588 | $ | 350 | 7,906,250 | $ | 791 | $ | 0 | $ | 9,304,373 | $ | 9,305,514 |
Balance as of March 31, 2021 (unaudited) | 3,503,588 | $ | 350 | 7,906,250 | $ | 791 | $ | 0 | $ | 9,304,373 | $ | 9,305,514 | ||||||||||||||||
Net loss | - | 0 | - | 0 | 0 | (8,501,720 | ) | (8,501,720 | ) | |||||||||||||||||||
Change in common stock subject to possible redemption | 419,621 | 42 | 0 | 0 | 4,196,168 | 0 | 4,196,210 | |||||||||||||||||||||
Balance as of June 30, 2021 (unaudited) | 3,923,209 | $ | 392 | 7,906,250 | $ | 791 | $ | 4,196,168 | $ | 802,653 | $ | 5,000,004 |
For the six months ended June 30, 2021 | ||||||||
Cash flows from operating activities: | ||||||||
Net Income | $ | 9,306,785 | $ | 805,065 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Interest earned on marketable securities held in Trust Account | (1,560 | ) | (8,757 | ) | ||||
Offering costs allocated to warrants | 1,027,907 | 1,027,907 | ||||||
Excess of fair value over cash received for private placement warrants | 1,939,600 | 1,939,600 | ||||||
Change in fair value of warrant liability | (12,458,875 | ) | (4,309,017 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid assets | (1,117,045 | ) | (900,376 | ) | ||||
Accrued expenses | 77,067 | 115,000 | ||||||
Net cash used in operating activities | (1,226,121 | ) | (1,330,578 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Investment of cash in Trust Account | (316,250,000 | ) | (316,250,000 | ) | ||||
Net cash used in investing activities | (316,250,000 | ) | (316,250,000 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from sale of Units, net of underwriting discounts | 310,175,000 | 310,175,000 | ||||||
Proceeds from sale of Private Warrants | 9,325,000 | 9,325,000 | ||||||
Proceeds from issuance of promissory note to Sponsor | 121,228 | 121,228 | ||||||
Payments on promissory issued to Sponsor | (136,678 | ) | (136,678 | ) | ||||
Payment of deferred offering costs | (589,731 | ) | (589,730 | ) | ||||
Net cash provided by financing activities | 318,894,819 | 318,894,820 | ||||||
Net change in cash | 1,418,698 | 1,314,242 | ||||||
Cash, beginning of period | — | 0 | ||||||
Cash, end of the period | $ | 1,418,698 | $ | 1,314,242 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Initial classification of common stock subject to possible redemption | $ | 273,244,055 | 273,244,055 | |||||
Change in common stock subject to possible redemption | $ | 7,970,068 | 3,773,858 | |||||
Deferred underwriters’ discount payable charged to additional paid-in capital | $ | 10,631,250 | 10,631,250 | |||||
Initial classification of warrant liability | $ | 30,018,225 | 30,018,225 |
As of February 9, 2021 | As of February 9, 2021 | |||||||||||||||||||||||
As Previously Reported | Restatement Adjustment | As Restated | As Previously Reported | Restatement Adjustment | As Restated | |||||||||||||||||||
Total assets | $ | 320,609,714 | $ | — | $ | 320,609,714 | $ | 320,609,714 | $ | 0 | $ | 320,609,714 | ||||||||||||
Liabilities and stockholders’ equity: | ||||||||||||||||||||||||
Total current liabilities | $ | 1,716,178 | $ | — | $ | 1,716,178 | $ | 1,716,178 | $ | 0 | $ | 1,716,178 | ||||||||||||
Stock warrant liabilities | — | 30,018,225 | 30,018,225 | 0 | 30,018,225 | 30,018,225 | ||||||||||||||||||
Total liabilities | 12,347,428 | 30,018,225 | 42,365,653 | 12,347,428 | 30,018,225 | 42,365,653 | ||||||||||||||||||
Class A common stock, $0.0001 par value; stock subject to possible redemption | 303,262,280 | (30,018,225 | ) | 273,244,055 | ||||||||||||||||||||
Class A common stock, $0.0001 par value; stock subject to possible redemption | 303,262,280 | (30,018,225 | ) | 273,244,055 | ||||||||||||||||||||
Stockholders’ equity | ||||||||||||||||||||||||
Preference stock - $0.0001 par value | — | — | — | |||||||||||||||||||||
Class A common stock - $0.0001 par value | 130 | 300 | 430 | |||||||||||||||||||||
Class B common stock - $0.0001 par value | 791 | — | 791 | |||||||||||||||||||||
Preference stock - $0.0001 par value | 0 | 0 | 0 | |||||||||||||||||||||
Class A common stock - $0.0001 par value | 130 | 300 | 430 | |||||||||||||||||||||
Class B common stock - $0.0001 par value | 791 | 0 | 791 | |||||||||||||||||||||
Additional paid-in-capital | 5,009,271 | 2,966,822 | 7,976,093 | 5,009,271 | 2,966,822 | 7,976,093 | ||||||||||||||||||
Accumulated deficit | (10,186 | ) | (2,967,122 | ) | (2,977,308 | ) | (10,186 | ) | (2,967,122 | ) | (2,977,308 | ) | ||||||||||||
Total stockholders’ equity | 5,000,006 | — | 5,000,006 | 5,000,006 | 0 | 5,000,006 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 320,609,714 | $ | — | $ | 320,609,714 | $ | 320,609,714 | $ | 0 | $ | 320,609,714 |
Three Months Ended March 31, 2021 | For the Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | ||||||||||
Net income | $ | 9,306,785 | ||||||||||
Redeemable Class A Common Stock | ||||||||||||
Numerator: Earnings allocable to Redeemable Class A Common Stock | ||||||||||||
Interest earned on cash and marketable securities held in Trust Account | $ | 7,197 | $ | 8,757 | ||||||||
Less: Income available to the Company to pay taxes | (7,197 | ) | (8,757 | ) | ||||||||
Net income allocable to shares subject to possible redemption | $ | 0 | $ | 0 | ||||||||
Denominator: Weighted Average Redeemable Class A Common Stock | ||||||||||||
Basic and diluted weighted average shares outstanding | 28,116,801 | 27,837,821 | ||||||||||
Basic and diluted net income per share | $ | 0 | $ | 0 | ||||||||
Non-Redeemable Class A and Class B Common Stock | ||||||||||||
Numerator: Net Income minus Net Earnings | ||||||||||||
Net (loss) income | $ | (8,501,720 | ) | $ | 805,065 | |||||||
Less: Income attributable to common stock subject to possible redemption | (1,236 | ) | 0 | 0 | ||||||||
Adjusted net income | $ | 9,305,549 | $ | (8,501,720 | ) | $ | 805,065 | |||||
Weighted average stock outstanding, basic and diluted | 9,887,523 | |||||||||||
Basic and diluted net income per share | $ | 0.94 | ||||||||||
Denominator: Weighted Average Non-Redeemable Class A and Class B Common Stock | ||||||||||||
Basic and diluted weighted average shares outstanding | 11,414,449 | 10,655,204 | ||||||||||
Basic and diluted net (loss) income per common share | $ | (0.74 | ) | $ | 0.08 |
Level 1 | Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Valuation adjustments and block discounts are not being applied. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these securities does not entail a significant degree of judgment. |
Level 2 | Valuations based on (i) quoted prices in active markets for similar assets and liabilities, (ii) quoted prices in markets that are not active for identical or similar assets, (iii) inputs other than quoted prices for the assets or liabilities, or (iv) inputs that are derived principally from or corroborated by market through correlation or other means. |
Level 3 | Valuations based on inputs that are unobservable and significant to the overall fair value measurement. |
● | in whole and not in part; |
● | at a price of $0.01 per warrant; |
● | upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and |
● | if, and only if, the last reported sale price of the Class A common stock for any 20 trading days within a 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders (the “Reference Value”) equals or exceeds $18.00 per shares (as adjusted for stock sub-divisions, stock capitalizations, reorganizations, recapitalizations and the like). |
● | 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 by reference to the “fair market value” of the Class A common stock (as defined below in the immediately following paragraph) except as otherwise described below; |
● | if, and only if, the Reference Value equals or exceeds $10.00 per share (as adjusted for stock sub-divisions, stock capitalizations, reorganizations, recapitalizations and the like); and |
● | if the Reference Value is less than $18.00 per share (as adjusted for stock sub-divisions, stock 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. |
March 31, | Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | June 30, | Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||||||||||||||
2021 | (Level 1) | (Level 2) | (Level 3) | 2021 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
U.S. Money Market held in Trust Account | $ | 316,251,560 | $ | 316,251,560 | $ | - | $ | - | $ | 316,258,757 | $ | 316,258,757 | $ | 0 | $ | 0 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Public Warrants Liability | $ | 10,910,625 | $ | - | $ | 10,910,625 | $ | - | $ | 15,021,875 | $ | 15,021,875 | $ | 0 | $ | 0 | ||||||||||||||||
Private Placement Warrants Liability | 6,648,725 | - | - | 6,648,725 | 10,687,333 | 0 | 0 | 10,687,333 | ||||||||||||||||||||||||
$ | 17,559,350 | $ | - | $ | 10,910,625 | $ | 6,648,725 | $ | 25,709,208 | $ | 15,021,875 | $ | 0 | $ | 10,687,333 |
Fair Value at January 1, 2021 | $ | - | $ | 0 | ||||
Initial fair value of public and private warrants | 30,018,225 | 30,018,225 | ||||||
Change in fair value of public and private warrants | (12,458,875 | ) | (12,458,875 | ) | ||||
Public warrants reclassified to Level 2 | (10,910,625 | ) | ||||||
Fair Value at March 31, 2021 | $ | 6,648,725 | ||||||
Public Warrants reclassified to Level 1 | (10,910,625 | ) | ||||||
Fair Value of private warrants at March 31, 2021 | 6,648,725 | |||||||
Change in fair value of private warrants | 4,038,608 | |||||||
Fair Value of private warrants at June 30, 2021 | $ | 10,687,333 |
Inputs | (Initial Measurement) February 29, 2021 | March 31, 2021 | (Initial Measurement) February 29, 2021 | June 30, 2021 | ||||||||||||
Risk-free interest rate | 0.64 | % | 1.11 | % | 0.64 | % | 0.98 | % | ||||||||
Expected term remaining (years) | 5.93 | 5.79 | 5.93 | 5.63 | ||||||||||||
Expected volatility | 24.1 | % | 14.8 | % | 24.1 | % | 18.9 | % | ||||||||
Stock price | $ | 9.37 | $ | 9.61 | $ | 9.37 | $ | 9.70 |
ITEM 3. |
ITEM 6. | EXHIBITS. |
No. | Description of Exhibit | |
101.INS* | Inline XBRL Instance Document | |
(the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document). | ||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
104* | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
** | Furnished. |
Sustainable Development Acquisition I Corp. | ||
Date: | /s/ Nicole Neeman Brady | |
Name: | Nicole Neeman Brady | |
Title: | Chief Executive Officer and Director | |
(Principal Executive Officer) | ||
Date: | /s/ Eric Techel | |
Name: | Eric Techel | |
Title: | Chief Financial Officer | |
(Principal Financial and Principal Accounting Officer) |