Delaware | 86-2707040 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
11911 Freedom Drive, Suite 1080 Reston, VA | 20190 | |
(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 and one-half of one redeemable warrant | PACI.U | The New York Stock Exchange | ||
Class A common stock, par value $0.0001 per share (included as part of the Units) | PACI | The New York Stock Exchange | ||
Redeemable Warrants (included as part of the Units) | PACI.WS | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☒ |
Page | ||
PART 1 - FINANCIAL INFORMATION | ||
Item 1. | ||
1 | ||
2 | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
June 30, 2022 (unaudited) | December 31, 2021 | September 30, 2022 (unaudited) | December 31, 2021 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 1,864,710 | $ | 2,579,658 | $ | 1,521,867 | $ | 2,579,658 | ||||||||
Prepaid expenses | 459,537 | 993,608 | 182,315 | 993,608 | ||||||||||||
Total current assets | 2,324,247 | 3,573,266 | 1,704,182 | 3,573,266 | ||||||||||||
Investments held in Trust | 281,921,097 | 281,521,183 | 282,677,920 | 281,521,183 | ||||||||||||
Total Assets | $ | 284,245,344 | $ | 285,094,449 | $ | 284,382,102 | $ | 285,094,449 | ||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Accrued expenses | $ | 215,575 | $ | 159,622 | $ | 231,548 | $ | 159,622 | ||||||||
Total current liabilities | 215,575 | 159,622 | 231,548 | 159,622 | ||||||||||||
Deferred underwriting commission | 9,660,000 | 9,660,000 | 9,660,000 | 9,660,000 | ||||||||||||
Total Liabilities | 9,875,575 | 9,819,622 | 9,891,548 | 9,819,622 | ||||||||||||
Commitments and contingencies (Note 5) | ||||||||||||||||
Temporary Equity: | ||||||||||||||||
Class A common stock subject to possible redemption; $0.0001 par value; 27,600,000 shares at redemption value of $10.21 at June 30, 2022 and $10.20 at December 31, 2021 | 281,661,596 | 281,520,000 | ||||||||||||||
Class A common stock subject to possible redemption; $0.0001 par value; 27,600,000 shares at redemption value of $10.22 at September 30, 2022 and $10.20 at December 31, 2021 | 282,191,951 | 281,520,000 | ||||||||||||||
Stockholders’ Deficit: | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0 | 0 | ||||||||||||||
Class A common stock, $0.0001 par value; 70,000,000 shares authorized; NaN issued and outstanding (excluding 27,600,000 shares subject to possible redemption) | 0 | 0 | ||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | — | — | ||||||||||||||
Class A common stock, $0.0001 par value; 70,000,000 shares authorized; none issued and outstanding (excluding 27,600,000 shares subject to possible redemption) | — | — | ||||||||||||||
Class B common stock, $0.0001 par value; 12,500,000 shares authorized; 6,900,000 shares issued and outstanding | 690 | 690 | 690 | 690 | ||||||||||||
Accumulated deficit | (7,292,517 | ) | (6,245,863 | ) | (7,702,087 | ) | (6,245,863 | ) | ||||||||
Total Stockholders’ Deficit | (7,291,827 | ) | (6,245,173 | ) | (7,701,397 | ) | (6,245,173 | ) | ||||||||
Total Liabilities, Temporary Equity and Stockholders’ Deficit | $ | 284,245,344 | $ | 285,094,449 | $ | 284,382,102 | $ | 285,094,449 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | For the period from March 16, 2021 (inception) through June 30, 2021 | Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2022 | For the period from March 16, 2021 (inception) through September 30, 2021 | |||||||||||||||||||||||||
Formation and operating expenses | $ | 619,518 | $ | (64 | ) | $ | 1,275,111 | $ | (780 | ) | $ | 489,430 | $ | (117 | ) | $ | 1,764,541 | $ | (897 | ) | ||||||||||||
Operating loss | 619,518 | (64 | ) | 1,275,111 | (780 | ) | (489,430 | ) | (117 | ) | (1,764,541 | ) | (897 | ) | ||||||||||||||||||
Interest income - investments held in Trust Account | 373,148 | 0 | 399,913 | 0 | 756,823 | — | 1,156,737 | — | ||||||||||||||||||||||||
Other income | 373,148 | 0 | 399,913 | 0 | 756,823 | — | 1,156,737 | — | ||||||||||||||||||||||||
Loss before income tax | (246,370 | ) | (64 | ) | (875,197 | ) | (780 | ) | ||||||||||||||||||||||||
Income tax | (29,860 | ) | 0 | (29,860 | ) | 0 | ||||||||||||||||||||||||||
Net loss | $ | (276,230 | ) | $ | (64 | ) | $ | (905,058 | ) | $ | (780 | ) | ||||||||||||||||||||
Income (Loss) before income tax | 267,393 | (117 | ) | (607,804 | ) | (897 | ) | |||||||||||||||||||||||||
Income tax expense | (146,608 | ) | — | (176,468 | ) | — | ||||||||||||||||||||||||||
Net income (loss) | $ | 120,785 | $ | (117 | ) | $ | (784,272 | ) | $ | (897 | ) | |||||||||||||||||||||
Class A common stock - weighted average shares outstanding, basic and diluted | 27,600,000 | 0 | 27,600,000 | 0 | 27,600,000 | — | 27,600,000 | — | ||||||||||||||||||||||||
Class A common stock - basic and diluted net loss per share | $ | (0.01 | ) | $ | 0 | $ | (0.03 | ) | $ | 0 | ||||||||||||||||||||||
Class A common stock - basic and diluted net income (loss) per share | $ | 0.00 | | $ | — | $ | (0.02 | ) | $ | — | ||||||||||||||||||||||
Class B common stock - weighted average shares outstanding, basic and diluted (1) | 6,900,000 | 5,000,000 | 6,900,000 | 5,000,000 | 6,900,000 | 5,000,000 | 6,900,000 | 5,000,000 | ||||||||||||||||||||||||
Class B common stock - basic and diluted net loss per share | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.03 | ) | $ | (0.00 | ) | ||||||||||||||||||||
Class B common stock - basic and diluted net income (loss) per share | $ | 0.00 | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.00 | ) |
(1) |
Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | Shares | Amount | Capital | Deficit | Deficit | |||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 6,900,000 | $ | 690 | $ | 0 | $ | (6,245,863 | ) | $ | (6,245,173 | ) | 6,900,000 | $ | 690 | $ | — | $ | (6,245,863 | ) | $ | (6,245,173 | ) | ||||||||||||||||||
Net loss | — | 0 | 0 | (628,828 | ) | (628,828 | ) | — | — | — | (628,828 | ) | (628,828 | ) | ||||||||||||||||||||||||||
Balance, March 31, 2022 | 6,900,000 | 690 | 0 | (6,874,691 | ) | (6,874,001 | ) | 6,900,000 | 690 | — | (6,874,691 | ) | (6,874,001 | ) | ||||||||||||||||||||||||||
Remeasurement of Class A Common Stock to redemption value | — | — | — | (141,596 | ) | (141,596 | ) | — | — | — | (141,596 | ) | (141,596 | ) | ||||||||||||||||||||||||||
Net loss | — | 0 | 0 | (276,230 | ) | (276,230 | ) | — | — | — | (276,230 | ) | (276,230 | ) | ||||||||||||||||||||||||||
Balance, June 30, 2022 | 6,900,000 | $ | 690 | $ | 0 | $ | (7,292,517 | ) | $ | (7,291,827 | ) | 6,900,000 | 690 | — | (7,292,517 | ) | (7,291,827 | ) | ||||||||||||||||||||||
Remeasurement of Class A Common Stock to redemption value | — | — | — | (530,355 | ) | (530,355 | ) | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 120,785 | 120,785 | |||||||||||||||||||||||||||||||||||
Balance, September 30, 2022 | 6,900,000 | $ | 690 | $ | — | $ | (7,702,087 | ) | $ | (7,701,397 | ) |
Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Equity | Shares | Amount | Capital | Deficit | Equity | |||||||||||||||||||||||||||||||
Balance, March 16, 2021 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
Issuance of Class B common stock to Sponsor | 5,750,000 | 575 | 24,425 | 0 | 25,000 | 5,750,000 | 575 | 24,425 | — | 25,000 | ||||||||||||||||||||||||||||||
Net loss | — | 0 | 0 | (716 | ) | (716 | ) | — | — | — | (716 | ) | (716 | ) | ||||||||||||||||||||||||||
Balance, March 31, 2021 | 5,750,000 | 575 | 24,425 | (716 | ) | 24,284 | 5,750,000 | 575 | 24,425 | (716 | ) | 24,284 | ||||||||||||||||||||||||||||
Net loss | — | 0 | 0 | (64) | (64) | — | — | — | (64 | ) | (64 | ) | ||||||||||||||||||||||||||||
Balance, June 30, 2021 | 5,750,000 | $ | 575 | $ | 24,425 | $ | (780 | ) | $ | 24,220 | 5,750,000 | 575 | 24,425 | (780 | ) | 24,220 | ||||||||||||||||||||||||
Net loss | — | — | — | (117 | ) | (117 | ) | |||||||||||||||||||||||||||||||||
Balance, September 30, 2021 | 5,750,000 | $ | 575 | $ | 24,425 | $ | (897 | ) | $ | 24,103 |
(1) |
Includes an aggregate of up to 750,000 shares of Class B common stock subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note |
Six Months ended June 30, 2022 | Period From March 16, 2021 (inception) Through June 30, 2021 | Nine Months ended September 30, 2022 | Period From March 16, 2021 (inception) Through September 30, 2021 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net loss | $ | (905,058 | ) | $ | (780 | ) | $ | (784,272 | ) | $ | (897 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Income earned on Trust assets | (399,913 | ) | 0 | (1,156,737 | ) | — | ||||||||||
Formation and organization costs paid by related party | — | 716 | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Formation and organization costs paid by related party | 0 | 780 | ||||||||||||||
Deferred offering costs | — | (146,468 | ) | |||||||||||||
Accrued formation and offering costs | — | 35,719 | ||||||||||||||
Prepaid expenses | 534,070 | 0 | 811,292 | — | ||||||||||||
Accrued expenses | 55,953 | 0 | 71,926 | — | ||||||||||||
Net cash used in operating activities | (714,948 | ) | 0 | (1,057,791 | ) | (110,930 | ) | |||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from issuance of Class B common stock to Sponsor | — | 25,000 | ||||||||||||||
Proceeds from Promissory Note | — | 110,000 | ||||||||||||||
Net cash provided by activities | — | 135,000 | ||||||||||||||
Net change in cash | (714,948 | ) | 0 | (1,057,791 | ) | 24,070 | ||||||||||
Cash at beginning of period | 2,579,658 | 0 | 2,579,658 | — | ||||||||||||
Cash at end of period | 1,864,710 | $ | 0 | $ | 1,521,867 | $ | 24,070 | |||||||||
Non-cash financing activities: | ||||||||||||||||
Remeasurement of Class A common stock to redemption value | $ | 141,596 | $ | 0 | $ | 671,951 | $ | — | ||||||||
Class B common stock in exchange for stock subscription receivable | $ | 0 | $ | 25,000 | ||||||||||||
Deferred offering costs included in accrued offering cost | $ | 0 | $ | 328,509 | $ | — | $ | 340,869 |
For the Three Months | For the Six Months | For the Three Months | For the Nine Months | |||||||||||||||||||||||||||||
Ended June 30, 2022 | Ended June 30, 2022 | Ended September 30, 2022 | Ended September 30, 2022 | |||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||
Basic and diluted net loss per share | ||||||||||||||||||||||||||||||||
Basic and diluted net income (loss) per share | ||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Allocation of net loss | $ | (220,984 | ) | $ | (55,246 | ) | $ | (724,046 | ) | $ | (181,012 | ) | ||||||||||||||||||||
Allocation of net income (loss) | $ | 96,628 | $ | 24,157 | $ | (627,418 | ) | $ | (156,854 | ) | ||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 27,600,000 | 6,900,000 | 27,600,000 | 6,900,000 | 27,600,000 | 6,900,000 | 27,600,000 | 6,900,000 | ||||||||||||||||||||||||
Basic and diluted net loss per share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.03 | ) | ||||||||||||||||||||
Basic and diluted net income (loss) per share | $ | 0.00 | $ | 0.0 | $ | (0.02 | ) | $ | (0.02 | ) |
● | 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. |
Description | Level | June 30, 2022 | December 31, 2021 | Level | September 30, 2022 | December 31, 2021 | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Marketable securities held in the Trust Account | 1 | $ | 281,921,097 | $ | 281,521,183 | 1 | $ | 282,677,920 | $ | 281,521,183 |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1A. | RISK FACTORS. |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS. |
No. | Description of Exhibit | |
Amended and Restated Certificate of Incorporation (Incorporated by reference to the corresponding exhibit to the Company’s Current Report on Form 8-K (File No. 001-41104), filed with the SEC on December 6, 2021). | ||
Amended and Restated Bylaws (Incorporated by reference to the corresponding exhibit to the Company’s Current Report on Form 8-K (File No. 001-41104), filed with the SEC on December 6, 2021). | ||
Specimen Unit Certificate (Incorporated by reference to the corresponding exhibit | ||
Specimen Class A common stock Certificate (Incorporated by reference to the corresponding exhibit | ||
Specimen Warrant Certificate (Incorporated by reference to the corresponding exhibit | ||
Warrant Agreement between the Company and Continental Stock Transfer & Trust Company, dated as of | ||
Private Placement Warrants Purchase Agreement, dated November 30, 2021, by and among the Company and PROOF Acquisition Sponsor I, LLC (Incorporated by reference to the corresponding exhibit to the Company’s Current Report on Form 8-K (File No. 001-41104), filed with the SEC on December 6, 2021). | ||
Investment Management Trust Agreement, dated November 30, 2021, by and between the Company and Continental Stock Transfer & Trust Company, as trustee. (Incorporated by reference to the corresponding exhibit to the Company’s Current Report on Form 8-K (File No. 001-41104), filed with the SEC on December 6, 2021). | ||
Registration Rights Agreement, dated November 30, 2021, by and among the Company, PROOF Acquisition Sponsor I, LLC, and the other holders party thereto (Incorporated by reference to the corresponding exhibit to the Company’s Current Report on Form 8-K (File No. 001-41104), filed with the SEC on December 6, 2021). | ||
Letter Agreement, dated November 30, 2021, by and among the Company, PROOF Acquisition Sponsor I, LLC and Officers and Directors of the Company (Incorporated by reference to the corresponding exhibit to the Company’s Current Report on Form 8-K (File No. 001-41104), filed with the SEC on December 6, 2021). | ||
Administrative Services Agreement between PROOF Acquisition Sponsor I, LLC and the Company, dated November 30, 2021. (Incorporated by reference to the corresponding exhibit to the Company’s Current Report on Form 8-K (File No. 001-41104), filed with the SEC on December 6, 2021). | ||
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* | 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. |
PROOF ACQUISITION CORP I | ||||
By: | /s/ John C. Backus, Jr. | |||
Name: | John C. Backus, Jr. | |||
Title: | Chief Executive Officer | |||
(Principal Executive Officer) |
By: | /s/ Steven P. Mullins | |||
Name: | Steven P. Mullins | |||
Title: | Chief Financial Officer | |||
(Principal Financial and Accounting Officer) |