Delaware | 85-2693583 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbols | Name of each exchange on which registered | ||
Units, each consisting of one share of Class A common stock and one-half of one redeemable warrant | FSSIU | The Nasdaq Stock Market LLC | ||
Class A common stock, par value $0.0001 per share | FSSI | The Nasdaq Stock Market LLC | ||
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share | FSSIW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☒ |
Page | |||
Part I. Financial Information | |||
1 | |||
1 | |||
2 | |||
3 | |||
4 | |||
5 | |||
16 | |||
18 | |||
18 | |||
Part II. Other Information | |||
Item 1. | Interim Financial Statements. |
June 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 811,376 | $ | 107,601 | ||||
Prepaid expenses | 517,178 | 0 | ||||||
Total Current Assets | 1,328,554 | 107,601 | ||||||
Deferred offering costs | 0 | 289,437 | ||||||
Marketable securities held in Trust Account | 258,769,775 | 0 | ||||||
TOTAL ASSETS | $ | 260,098,329 | $ | 397,038 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 207,215 | $ | 3,952 | ||||
Accrued offering costs | 5,000 | 222,038 | ||||||
Promissory note – related party | 0 | 150,000 | ||||||
Total Current Liabilities | 212,215 | 375,990 | ||||||
Warrant liability | 22,526,000 | 0 | ||||||
Deferred underwriting fee payable | 9,056,250 | 0 | ||||||
Total Liabilities | 31,794,465 | 375,990 | ||||||
Commitments (Note 6) | 0 | 0 | ||||||
Class A common stock subject to possible redemption; 22,330,386 and 0 shares at redemption value at June 30, 2021 and December 31, 2020, respectively | 223,303,860 | 0 | ||||||
Stockholders’ Equity | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | 0 | 0 | ||||||
Class A common stock, $0.0001 par value; 300,000,000 shares authorized; 3,544,614 and 0 shares issued and outstanding (excluding 22,330,386 and 0 shares subject to possible redemption) at June 30, 2021 and December 31, 2020, respectively | 354 | 0 | ||||||
Class B common stock, $0.0001 par value; 30,000,000 shares authorized; 6,468,750 shares issued and outstanding at June 30, 2021 and December 31, 2020 (1) | 647 | 647 | ||||||
Additional paid-in capital | 14,032,744 | 24,353 | ||||||
Accumulated deficit | (9,033,741 | ) | (3,952 | ) | ||||
Total Stockholders’ Equity | 5,000,004 | 21,048 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 260,098,329 | $ | 397,038 |
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 247,256 | $ | 661,275 | ||||
Prepaid expenses | 278,155 | 302,159 | ||||||
Total Current Assets | 525,411 | 963,434 | ||||||
Marketable securities held in Trust Account | 258,803,175 | 258,778,573 | ||||||
TOTAL ASSETS | $ | 259,328,586 | $ | 259,742,007 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accrued expenses and accounts payable | $ | 1,715,309 | $ | 1,746,660 | ||||
Total Current Liabilities | 1,715,309 | 1,746,660 | ||||||
Warrant liabilities | 6,199,720 | 12,265,755 | ||||||
Deferred underwriting fee payable | 9,056,250 | 9,056,250 | ||||||
Total Liabilities | 16,971,279 | 23,068,665 | ||||||
Commitments (Note 6) | 0 | 0 | ||||||
Class A common stock subject to possible redemption; $0.0001 par value; 25,875,000 shares at redemption value at March 31, 2022 and December 31, 2021 | 258,750,000 | 258,750,000 | ||||||
Stockholders’ Deficit | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | 0 | 0 | ||||||
Class A common stock, $0.0001 par value, 300,000,000 shares authorized; NaN issued and outstanding (excluding 25,875,000 shares subject to possible redemption) at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||
Class B common stock, $0.0001 par value; 30,000,000 shares authorized; 6,468,750 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 647 | 647 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (16,393,340 | ) | (22,077,305 | ) | ||||
Total Stockholders’ Deficit | (16,392,693 | ) | (22,076,658 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 259,328,586 | $ | 259,742,007 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2021 | |||||||
Operating and formation costs | $ | 278,985 | $ | 468,485 | ||||
Loss from operations | (278,985 | ) | (468,485 | ) | ||||
Other expenses: | ||||||||
Change in fair value of warrant liability | (8,447,250 | ) | (8,045,000 | ) | ||||
Transaction cost – warrants | 0 | (536,079 | ) | |||||
Interest earned on marketable securities held in Trust Account | 9,213 | 19,775 | ||||||
Other expenses, net | (8,438,037 | ) | (8,561,304 | ) | ||||
Loss before income taxes | (8,717,022 | ) | (9,029,789 | ) | ||||
Benefit (Provision) for income taxes | 0 | 0 | ||||||
Net loss | $ | (8,717,022 | ) | $ | (9,029,789 | ) | ||
Weighted-average shares outstanding, Class A redeemable common stock subject to possible redemption | 23,201,141 | 23,192,559 | ||||||
Basic and diluted earnings (loss) per share, Class A redeemable common stock subject to possible redemption | $ | 0.00 | $ | 0.00 | ||||
Weighted-average shares outstanding, Class B non-redeemable common stock subject to possible redemption | 9,142,609 | 8,586,221 | ||||||
Basic and diluted loss per share, Class B non-redeemable common stock subject to possible redemption | $ | (0.95 | ) | $ | (1.05 | ) |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Operating and formation costs | $ | 406,672 | $ | 189,500 | ||||
Loss from operations | (406,672 | ) | (189,500 | ) | ||||
Other income (expenses): | ||||||||
Change in fair value of warrant liabilities | 6,066,035 | 402,250 | ||||||
Transaction costs incurred in connection with the Initial Public Offering | 0 | (536,079 | ) | |||||
Interest earned on marketable securities held in Trust Account | 24,602 | 10,562 | ||||||
Total other income (expenses), net | 6,090,637 | (123,267 | ) | |||||
Net income (loss) | $ | 5,683,965 | $ | (312,767 | ) | |||
Weighted-average shares outstanding, Class A common stock | 25,875,000 | 17,537,500 | ||||||
Basic and diluted income (loss) per share, Class A common stock | $ | 0.18 | $ | (0.01 | ) | |||
Weighted-average shares outstanding, Class B common stock | 6,468,750 | 6,196,875 | ||||||
Basic and diluted income (loss) per share, Class B common stock | $ | 0.18 | $ | (0.01 | ) |
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance — January 1, 2022 | 0 | $ | 0 | 6,468,750 | $ | 647 | $ | 0 | $ | (22,077,305 | ) | $ | (22,076,658 | ) | ||||||||||||||
Net income | — | 0 | — | 0 | 0 | 5,683,965 | 5,683,965 | |||||||||||||||||||||
Balance – March 31, 2022 | 0 | $ | 0 | 6,468,750 | $ | 647 | 0 | $ | (16,393,340 | ) | $ | (16,392,693 | ) |
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balance — January 1, 2021 | 0 | $ | 0 | 6,468,750 | $ | 647 | $ | 24,353 | $ | (3,952 | ) | $ | 21,048 | |||||||||||||||
Sale of 25,875,000 Units, net of underwriting discounts, initial fair value of public warrants and other offering costs | 25,875,000 | 2,588 | 0 | 0 | 235,301,017 | 0 | 235,303,605 | |||||||||||||||||||||
Cash paid in excess of fair value for private warrants | — | — | — | — | 2,009,000 | — | 2,009,000 | |||||||||||||||||||||
Class A common stock subject to possible redemption | (23,201,141 | ) | (2,321 | ) | 0 | 0 | (232,018,557 | ) | 0 | (232,020,878 | ) | |||||||||||||||||
Net loss | — | 0 | — | 0 | 0 | (312,767 | ) | (312,767 | ) | |||||||||||||||||||
Balance – March 31, 2021 | 2,673,859 | $ | 267 | 6,468,750 | $ | 647 | $ | 5,315,813 | $ | (316,719 | ) | $ | 5,000,008 | |||||||||||||||
Change in value of common stock subject to redemption | 870,755 | 87 | 0 | 0 | 8,716,931 | 0 | 8,717,018 | |||||||||||||||||||||
Net Loss | — | 0 | — | 0 | 0 | (8,717,022 | ) | (8,717,022 | ) | |||||||||||||||||||
Balance – June 30, 2021 | 3,544,614 | $ | 354 | 6,468,750 | $ | 647 | $ | 14,032,744 | $ | (9,033,741 | ) | $ | 5,000,004 |
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity (Deficit) | ||||||||||||||||||||||
Balance — January 1, 2021 | 0 | $ | 0 | 6,468,750 | $ | 647 | $ | 24,353 | $ | (3,952 | ) | $ | 21,048 | |||||||||||||||
Remeasurement for Class A common stock subject to redemption amount | — | — | — | — | (2,033,353 | ) | (21,413,041 | ) | (23,446,394 | ) | ||||||||||||||||||
Cash paid in excess of fair value for private warrants | — | 0 | — | 0 | 2,009,000 | 0 | 2,009,000 | |||||||||||||||||||||
Net loss | — | 0 | — | 0 | 0 | (312,767 | ) | (312,767 | ) | |||||||||||||||||||
Balance – March 31, 2021 | 0 | $ | 0 | 6,468,750 | $ | 647 | 0 | $ | (21,729,760 | ) | $ | (21,729,113 | ) |
Three Months Ended March 31, | ||||||||||||
2022 | 2021 | |||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net loss | $ | (9,029,789 | ) | |||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
Net income (loss) | $ | 5,683,965 | $ | (312,767 | ) | |||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Interest earned on marketable securities held in Trust Account | (19,775 | ) | (24,602 | ) | (10,562 | ) | ||||||
Change in fair value of warrant liability | 8,045,000 | |||||||||||
Change in fair value of warrant liabilities | (6,066,035 | ) | (402,250 | ) | ||||||||
Transaction costs incurred in connection with IPO | 536,079 | 0 | 536,079 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses | (517,178 | ) | 24,004 | (615,637 | ) | |||||||
Accrued expenses | 203,263 | |||||||||||
Accrued expenses and accounts payable | (31,351 | ) | 115,483 | |||||||||
Net cash used in operating activities | (782,400 | ) | (414,019 | ) | (689,654 | ) | ||||||
Cash Flows from Investing Activities: | ||||||||||||
Investment of cash in Trust Account | (258,750,000 | ) | ||||||||||
Investment in Trust Account | 0 | (258,750,000 | ) | |||||||||
Net cash used in investing activities | (258,750,000 | ) | 0 | (258,750,000 | ) | |||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from sale of Units, net of underwriting discounts paid | 253,575,000 | 0 | 253,575,000 | |||||||||
Proceeds from sale of Private Placement Warrants | 7,175,000 | 0 | 7,175,000 | |||||||||
Repayment of promissory note – related party | (150,000 | ) | 0 | (150,000 | ) | |||||||
Payment of offering costs | (363,825 | ) | 0 | (313,613 | ) | |||||||
Net cash provided by financing activities | 260,236,175 | 0 | 260,286,387 | |||||||||
Net Change in Cash | 703,775 | (414,019 | ) | 846,733 | ||||||||
Cash – Beginning of period | 107,601 | 661,275 | 107,601 | |||||||||
Cash – End of period | $ | 811,376 | $ | 247,256 | $ | 954,334 | ||||||
Non-Cash Investing and Financing Activities: | ||||||||||||
Offering costs included in accrued offering costs | $ | 5,000 | $ | 0 | $ | 55,212 | ||||||
Initial classification of Class A common stock subject to possible redemption | $ | 246,278,570 | $ | 0 | $ | 258,750,000 | ||||||
Change in value of Class A common stock subject to possible redemption | $ | (22,974,710 | ) | |||||||||
Deferred underwriting fee payable | $ | 9,056,250 | $ | 0 | $ | 9,056,250 |
Gross proceeds | $ | 258,750,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | (9,315,000 | ) | ||
Class A common stocks issuance costs | (14,131,394 | ) | ||
Plus: | ||||
Remeasurement of carrying value to redemption value | 23,446,394 | |||
Class A common stocks subject to possible redemption | $ | 258,750,000 |
Three Months Ended March 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per common share | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss), as adjusted | $ | 4,547,172 | $ | 1,136,793 | $ | (231,106 | ) | $ | (81,661 | ) | ||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average shares outstanding | 25,875,000 | 6,468,750 | 17,537,500 | 6,196,875 | ||||||||||||
Basic and diluted net income (loss) per common share | $ | 0.18 | $ | 0.18 | $ | (0.01 | ) | $ | (0.01 | ) |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Class A common stock subject to possible redemption | ||||||||
Numerator: Earnings allocable to Class A common stock subject to possible redemption | ||||||||
Interest earned on marketable securities held in Trust Account | $ | 9,213 | $ | 19,775 | ||||
Less: interest available for payment of taxes | (9,213 | ) | (19,775 | ) | ||||
Net Income attributable | $ | 0 | $ | 0 | ||||
Denominator: Weighted-Average Class A ordinary shares subject to possible redemption | ||||||||
Basic and diluted weighted-average shares outstanding, Class A common stock subject to possible redemption | 23,201,141 | 23,192,559 | ||||||
Basic and diluted net income per share, Class A common stock subject to possible redemption | $ | 0.00 | $ | 0.00 | ||||
Non-Redeemable Common Stock | ||||||||
Numerator: Net Loss minus Net Earnings | ||||||||
Net loss | $ | (8,717,022 | ) | $ | (9,029,789 | ) | ||
Less: Net income allocable to Class A common stock subject to possible redemption | 0 | 0 | ||||||
Non-Redeemable Net Loss | $ | (8,717,022 | ) | $ | (9,029,789 | ) | ||
Denominator: Weighted-Average Non-redeemable common stock | ||||||||
Basic and diluted weighted-average shares outstanding, Non-Redeemable Common stock | 9,142,609 | 8,586,221 | ||||||
Basic and diluted net loss per share, Non-Redeemable Common stock | $ | (0.95 | ) | $ | (1.05 | ) |
Level 1: | Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. | |
Level 2: | Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. | |
Level 3: | Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | Level | June 30, 2021 | Level | March 31, 2022 | December 31, 2021 | |||||||||||||||
Assets: | ||||||||||||||||||||
Marketable securities held in Trust Account | 1 | $ | 258,769,775 | 1 | $ | 258,803,175 | $ | 258,778,573 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Warrant Liability – Public Warrants | 1 | 14,490,000 | 1 | 3,988,011 | 7,891,875 | |||||||||||||||
Warrant Liability – Private Placement Warrants | 3 | 8,036,000 | 3 | 2,211,709 | 4,373,880 |
Input | March 31, 2022 | December 31, 2021 | ||||||
Market price of public shares | $ | 9.79 | $ | 9.71 | ||||
Risk-free rate | 2.45 | % | 1.18 | % | ||||
Dividend yield | 0.00 | % | 0.00 | % | ||||
Volatility | 6.7 | % | 12.9 | % | ||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Effective expiration date | June 26, 2026 | June 26, 2026 |
Input | ||||
Market price of public shares | $ | 9.73 | ||
Risk-free rate | 0.88 | % | ||
Dividend yield | 0.00 | % | ||
Volatility | 18.8 | % | ||
Exercise price | $ | 11.50 | ||
Effective expiration date | 6/13/26 |
| Private Placement | Public | Warrant Liabilities | |||||||||
Fair value as of January 1, 2021 | $ | 0 | $ | 0 | $ | 0 | ||||||
Initial measurement on January 29, 2021 | 5,166,000 | 9,315,000 | 14,481,000 | |||||||||
Change in valuation inputs or other assumptions | 2,870,000 | 5,175,000 | 8,045,000 | |||||||||
Fair value as of June 30, 2021 | $ | 8,036,000 | $ | 14,490,000 | $ | 22,526,000 |
| Private Placement Warrants | |||
Fair value as of January 1, 2022 | $ | 4,373,880 | ||
Change in valuation inputs or other assumptions | (2,162,171 | ) | ||
Fair value as of March 31, 2022 | $ | 2,211,709 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
No. | Description of Exhibit | |
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101.INS* | XBRL Instance Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. |
FORTISTAR SUSTAINABLE SOLUTIONS CORP. | ||
Date: | By: | /s/ Nadeem Nisar |
Name: | Nadeem Nisar | |
Title: | Chief Executive Officer | |
(Principal Executive Officer) | ||
Date: | By: | /s/ Scott Contino |
Name: | Scott Contino | |
Title: | Chief Financial Officer | |
(Principal Financial and Accounting Officer) |