☒ | 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 |
Cayman Islands | 98-1590223 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
9 West 57th Street, 39th Floor New York, NY | 10019 | |
(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 Class A ordinary share, $0.0001 par value, and one-half of one redeemable warrant | SCUA.U | New York Stock Exchange | ||
Class A ordinary shares included as part of the units | SCUA | New York Stock Exchange | ||
Redeemable warrants included as part of the units, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | SCUA WS | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☒ |
Page No. | |||
24 | |||
Item 4. | 24 | ||
PART II. OTHER INFORMATION | |||
Item 1. | 25 | ||
Item | 25 | ||
25 | |||
Item 3. | 26 | ||
Item | 26 | ||
Item | |||
28 |
Item 1. | Condensed Financial Statements. |
March 31, 2022 | December 31, 2021 | March 31, 2023 (unaudited) | December 31, 2022 | |||||||||||||
(unaudited) | ||||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 0 | $ | 941,792 | $ | - | $ | - | ||||||||
Prepaid expenses | 1,027,167 | 23,767 | 497,199 | 563,385 | ||||||||||||
Total current assets | 1,027,167 | 965,559 | 497,199 | 563,385 | ||||||||||||
Investments held in Trust Account | 234,623,027 | 234,600,723 | 240,641,073 | 237,964,294 | ||||||||||||
Total Assets | $ | 235,650,194 | $ | 235,566,282 | $ | 241,138,272 | $ | 238,527,679 | ||||||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Deficit | ||||||||||||||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 183,195 | $ | 6,000 | $ | 50,314 | $ | 15,803 | ||||||||
Accrued expenses | 35,475 | 157,111 | 1,350 | 1,926 | ||||||||||||
Total current liabilities | 218,670 | 163,111 | 51,664 | 17,729 | ||||||||||||
Working capital loan - related party | 224,260 | 0 | ||||||||||||||
Working capital loan - related party, at fair value | 51,264 | 79,260 | ||||||||||||||
Derivative warrant liabilities | 6,810,000 | 15,140,000 | 2,202,150 | 1,177,555 | ||||||||||||
Deferred underwriting fees | 8,050,000 | 8,050,000 | 8,050,000 | 8,050,000 | ||||||||||||
Total Liabilities | 15,302,930 | 23,353,111 | 10,355,078 | 9,324,544 | ||||||||||||
Commitments and Contingencies (Note 6) | 0 | 0 | ||||||||||||||
Class A ordinary shares; 23,000,000 shares subject to possible redemption at $10.20 per share | 234,600,000 | 234,600,000 | ||||||||||||||
Class A ordinary shares; 23,000,000 shares subject to possible redemption at $10.46 per share and $10.34 per share as of March 31, 2023 and December 31, 2022, respectively | 240,541,073 | 237,864,294 | ||||||||||||||
Shareholders' Deficit: | ||||||||||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; NaN issued and outstanding | 0 | 0 | ||||||||||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 0 non-redeemable shares issued or outstanding | 0 | 0 | ||||||||||||||
Shareholders’ Deficit: | ||||||||||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | - | - | ||||||||||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; no non-redeemable shares issued or outstanding | - | - | ||||||||||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 shares issued and outstanding | 575 | 575 | 575 | 575 | ||||||||||||
Additional paid-in capital | 0 | 0 | - | - | ||||||||||||
Accumulated deficit | (14,253,311 | ) | (22,387,404 | ) | (9,758,454 | ) | (8,661,734 | ) | ||||||||
Total Shareholders' Deficit | (14,252,736 | ) | (22,386,829 | ) | ||||||||||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Deficit | $ | 235,650,194 | $ | 235,566,282 | ||||||||||||
Total Shareholders’ Deficit | (9,757,879 | ) | (8,661,159 | ) | ||||||||||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 241,138,272 | $ | 238,527,679 |
For the Three Months Ended March 31, | ||||||||||||||||
For the Three Months Ended March 31, 2022 | For the Period from March 8, 2021 (inception) through March 31, 2021 | 2023 | 2022 | |||||||||||||
General and administrative expenses | $ | 343,758 | $ | 26,918 | $ | 326,047 | $ | 343,758 | ||||||||
Loss from operations | (343,758 | ) | (26,918 | ) | (326,047 | ) | (343,758 | ) | ||||||||
Other income (expenses): | ||||||||||||||||
Change in fair value of derivative warrant liabilities | 8,330,000 | 0 | (1,024,595 | ) | 8,330,000 | |||||||||||
Change in fair value of working capital loan - related party | 125,547 | 0 | 253,922 | 125,547 | ||||||||||||
Income from investments held in Trust Account | 22,304 | 0 | 2,676,779 | 22,304 | ||||||||||||
Total other income | 8,477,851 | 0 | 1,906,106 | 8,477,851 | ||||||||||||
Net income (loss) | $ | 8,134,093 | $ | (26,918 | ) | |||||||||||
Net income | $ | 1,580,059 | $ | 8,134,093 | ||||||||||||
Weighted average Class A ordinary shares subject to possible redemption, basic and diluted | 23,000,000 | 0 | 23,000,000 | 23,000,000 | ||||||||||||
Basic and diluted net income (loss) per ordinary share, Class A ordinary shares subject to possible redemption | $ | 0.28 | $ | 0 | ||||||||||||
Basic and diluted net income per ordinary share, Class A subject to possible redemption | $ | 0.05 | $ | 0.28 | ||||||||||||
Weighted average Class B ordinary shares, basic and diluted | 5,750,000 | 3,695,652 | 5,750,000 | 5,750,000 | ||||||||||||
Basic and diluted net income (loss) per ordinary share, Class B ordinary shares | $ | 0.28 | $ | (0.01 | ) | |||||||||||
Basic and diluted net income per ordinary share, Class B | $ | 0.05 | $ | 0.28 |
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||
Additional | Total | |||||||||||||||||||
Class B Ordinary Shares | Paid-in | Accumulated | Shareholders' | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance - December 31, 2021 | 5,750,000 | $ | 575 | $ | 0 | $ | (22,387,404 | ) | $ | (22,386,829 | ) | |||||||||
Net income | - | 0 | 0 | 8,134,093 | 8,134,093 | |||||||||||||||
Balance - March 31, 2022 (unaudited) | 5,750,000 | $ | 575 | $ | 0 | $ | (14,253,311 | ) | $ | (14,252,736 | ) |
For the Three Months Ended March 31, 2023 | ||||||||||||||||||||
Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||||
Class B Ordinary Shares | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance - December 31, 2022 | 5,750,000 | $ | 575 | $ | - | $ | (8,661,734 | ) | $ | (8,661,159 | ) | |||||||||
Remeasurement of Class A ordinary shares to redemption value | - | - | - | (2,676,779 | ) | (2,676,779 | ) | |||||||||||||
Net income | - | - | - | 1,580,059 | 1,580,059 | |||||||||||||||
Balance - March 31, 2023 (unaudited) | 5,750,000 | $ | 575 | $ | - | $ | (9,758,454 | ) | $ | (9,757,879 | ) |
For the Three Months Ended March 31, 2022 | ||||||||||||||||||||
Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||||
Class B Ordinary Shares | ||||||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance - December 31, 2021 | 5,750,000 | $ | 575 | $ | - | $ | (22,387,404 | ) | $ | (22,386,829 | ) | |||||||||
Net income | - | - | - | 8,134,093 | 8,134,093 | |||||||||||||||
Balance - March 31, 2022 (unaudited) | 5,750,000 | $ | 575 | $ | - | $ | (14,253,311 | ) | $ | (14,252,736 | ) |
For the Period from March 8, 2021 (inception) through March 31, 2021 | ||||||||||||||||||||
Additional | Total | |||||||||||||||||||
Class B Ordinary Shares | Paid-in | Accumulated | Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance - March 8, 2021 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of Class B ordinary shares to Sponsor | 5,750,000 | 575 | 24,425 | 0 | 25,000 | |||||||||||||||
Net loss | - | 0 | 0 | (26,918 | ) | (26,918 | ) | |||||||||||||
Balance - March 31, 2021 (unaudited) | 5,750,000 | $ | 575 | $ | 24,425 | $ | (26,918 | ) | $ | (1,918 | ) |
For the Three Months Ended March 31, | ||||||||||||||||
For the Three Months Ended March 31, 2022 | For the Period from March 8, 2021 (inception) through March 31, 2021 | 2023 | 2022 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income (loss) | $ | 8,134,093 | $ | (26,918 | ) | |||||||||||
Adjustments to reconcile net income to net cash loss used in operating activities: | ||||||||||||||||
General and administrative expenses paid in exchange for issuance of Class B ordinary shares to Sponsor | 0 | 25,000 | ||||||||||||||
Net income | $ | 1,580,059 | $ | 8,134,093 | ||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
General and administrative expenses paid by Sponsor under working capital loan | 10,243 | 0 | 3,214 | 10,243 | ||||||||||||
Change in fair value of derivative warrant liabilities | (8,330,000 | ) | 0 | 1,024,595 | (8,330,000 | ) | ||||||||||
Change in fair value of working capital loan - related party | (125,547 | ) | 0 | (253,922 | ) | (125,547 | ) | |||||||||
Income from investments held in Trust Account | (22,304 | ) | 0 | (2,676,779 | ) | (22,304 | ) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid expenses | (1,003,400 | ) | 0 | 66,186 | (1,003,400 | ) | ||||||||||
Accounts payable | 177,195 | 0 | 34,511 | 177,195 | ||||||||||||
Accrued expenses | (121,636 | ) | 1,918 | (576 | ) | (121,636 | ) | |||||||||
Net cash used in operating activities | (1,281,356 | ) | 0 | (222,712 | ) | (1,281,356 | ) | |||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds received from Working Capital Loan - related party | 339,564 | 0 | ||||||||||||||
Proceeds received from working capital loan - related party | 222,712 | 339,564 | ||||||||||||||
Net cash provided by financing activities | 339,564 | 0 | 222,712 | 339,564 | ||||||||||||
Net change in cash | (941,792 | ) | 0 | - | (941,792 | ) | ||||||||||
Cash - beginning of the period | 941,792 | 0 | - | 941,792 | ||||||||||||
Cash - end of the period | $ | 0 | $ | 0 | $ | - | $ | - | ||||||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||||||||||
Deferred offering costs included in accounts payable | $ | 0 | $ | 32,203 | ||||||||||||
Deferred offering costs included in accrued expenses | $ | 0 | $ | 157,660 | ||||||||||||
Remeasurement of Class A ordinary shares to redemption value | $ | 2,676,779 | $ | - |
For the Three Months Ended March 31, 2022 | ||||||||
Class A | Class B | |||||||
Numerator: | ||||||||
Allocation of net income | $ | 6,507,274 | $ | 1,626,819 | ||||
Denominator: | ||||||||
Weighted average ordinary shares outstanding, basic and diluted | 23,000,000 | 5,750,000 | ||||||
Basic and diluted net income per ordinary share | $ | 0.28 | $ | 0.28 |
For the Period from March 8, 2021 (inception) throughMarch 31, 2021 | For the Three Months Ended March 31, 2023 | For the Three Months Ended March 31, 2022 | ||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Allocation of net loss | $ | 0 | $ | (26,918 | ) | |||||||||||||||||||
Allocation of net income | $ | 1,264,047 | $ | 316,012 | $ | 6,507,274 | $ | 1,626,819 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average ordinary shares outstanding, basic and diluted | 0 | 3,695,652 | 23,000,000 | 5,750,000 | 23,000,000 | 5,750,000 | ||||||||||||||||||
Basic and diluted net loss per ordinary share | $ | 0 | $ | (0.01 | ) | |||||||||||||||||||
Basic and diluted net income per ordinary share | $ | 0.05 | $ | 0.05 | $ | 0.28 | $ | 0.28 |
Gross proceeds | $ | 230,000,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants at issuance | (14,950,000 | ) | ||
Offering costs allocated to Class A shares subject to possible redemption | (12,706,476 | ) | ||
Plus: | ||||
Accretion on Class A ordinary shares subject to possible redemption amount | 32,256,476 | |||
Class A ordinary shares subject to possible redemption | $ | 234,600,000 |
Gross proceeds | $ | 230,000,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants at issuance | (14,950,000 | ) | ||
Offering costs allocated to Class A shares subject to possible redemption | (12,706,476 | ) | ||
Plus: | ||||
Accretion on Class A ordinary shares subject to possible redemption | 32,256,476 | |||
Class A ordinary shares subject to possible redemption at December 31, 2021 | $ | 234,600,000 | ||
Remeasurement of Class A ordinary shares to redemption value | 3,264,294 | |||
Class A ordinary shares subject to possible redemption at December 31, 2022 | $ | 237,864,294 | ||
Remeasurement of Class A ordinary shares to redemption value | 2,676,779 | |||
Class A ordinary shares subject to possible redemption at March 31, 2023 | $ | 240,541,073 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 240,641,073 | $ | - | $ | - | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public Warrants | $ | 1,082,150 | $ | - | $ | - | ||||||
Derivative warrant liabilities - Private Placement Warrants | $ | - | $ | - | $ | 1,120,000 | ||||||
Working capital loan - related party | $ | - | $ | - | $ | 51,264 |
March 31, 2022 | ||||||||||||
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 234,623,027 | $ | 0 | $ | 0 | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public Warrants | $ | 3,450,000 | $ | 0 | $ | 0 | ||||||
Derivative warrant liabilities - Private Placement Warrants | $ | 0 | $ | 0 | $ | 3,360,000 | ||||||
Working capital loan - related party | $ | 0 | $ | 0 | $ | 224,260 |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 237,964,294 | $ | - | $ | - | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public Warrants | $ | 596,275 | $ | - | $ | - | ||||||
Derivative warrant liabilities - Private Placement Warrants | $ | - | $ | - | $ | 581,280 | ||||||
Working capital loan - related party | $ | - | $ | - | $ | 79,260 |
Description | Level 1 | Level 2 | Level 3 | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 234,600,723 | $ | 0 | $ | 0 | ||||||
Liabilities: | ||||||||||||
Derivative liabilities – Public Warrants | $ | 0 | $ | 0 | $ | 7,636,000 | ||||||
Derivative liabilities – Private Warrants | $ | 0 | $ | 0 | $ | 7,504,000 |
March 31, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 11.50 | $ | 11.50 | ||||||||
Stock price | $ | 10.07 | $ | 9.67 | $ | 10.44 | $ | 10.26 | ||||||||
Volatility | 5.51 | % | 13.0 | % | 13.07 | % | 6.85 | % | ||||||||
Risk-free rate | 1.56% - 2.57 | % | 1.53 | % | 4.70% - 4.80 | % | 4.57% - 4.62 | % | ||||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % | ||||||||
Years to expected initial Business Combination date | 0.94 | 0.94 | 0.19 | 0.44 | ||||||||||||
Years to expiration | 5 | 5 | 5 | 5 | ||||||||||||
Probability of a business combination | 65 | % | 90 | % | 5 | % | 10 | % |
Level 3 Rollforward: | ||||||||
Warrants | Working capital loan - related party | |||||||
Level 3 - Liabilities at December 31, 2021 | $ | 15,140,000 | 0 | |||||
Transfer of Public Warrants to Level 1 | (7,636,000 | ) | 0 | |||||
Change in fair value of private placement warrants | (4,144,000 | ) | 0 | |||||
Issuance of working capital loan - related party | 0 | 349,807 | ||||||
Change in fair value of working capital loan - related party | 0 | (125,547 | ) | |||||
Level 3 - Liabilities & working capital loan at March 31, 2022 | $ | 3,360,000 | $ | 224,260 |
Level 3 Rollforward: | Working capital loan - | |||||||
Warrants | related party | |||||||
Level 3 - Warrant Liabilities & working capital loan at December 31, 2022 | $ | 581,280 | $ | 79,260 | ||||
Borrowing under working capital loan - related party | - | 225,926 | ||||||
Change in fair value of warrant liabilities | 538,720 | - | ||||||
Change in fair value of working capital loan - related party | - | (253,922 | ) | |||||
Level 3 - Warrant Liabilities & working capital loan at March 31, 2023 | $ | 1,120,000 | $ | 51,264 |
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. |
Exhibit number | Description of exhibit |
Amended and Restated Memorandum and Articles of Association (1) | |
Warrant Agreement between Continental Stock Transfer & Trust Company and the Company (1) | |
Form of Specimen Unit Certificate (incorporated by reference to Exhibit 4.1 to the Company’s Form S-1, filed on October 15, 2021 (File No. 333-260302)) | |
Form of Specimen Class A Ordinary Share Certificate (incorporated by reference to Exhibit 4.2 to the Company’s Form S-1, filed on October 15, 2021 (File No. 333-260302)) | |
Form of Specimen Warrant Certificate (incorporated by reference to Exhibit 4.3 to the Company’s Form S-1, filed on October 15, 2021 (File No. 333-260302)) |
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-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) and 15(d)-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. |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase. |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase. |
101.LAB* | XBRL Taxonomy Extension Label Linkbase. |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase. |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101). |
* | Filed herewith. |
** | Furnished herewith |
SCULPTOR ACQUISITION CORP I | |||
Date: | May | By: | /s/ Steven Orbuch |
Name: | Steven Orbuch | ||
Title: | Chief Executive Officer (Principal Executive Officer) |
Date: | May | By: | /s/ Dava Ritchea |
Name: | Dava Ritchea | ||
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |