Delaware | 001-40977 | 86-2433757 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) |
250 Park Avenue Ste 911 New York, New York | 10177 | |
(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 | FIACU | The Nasdaq Stock Market LLC | ||
Shares of Class A common stock | FIAC | The Nasdaq Stock Market LLC | ||
Redeemable warrants, | FIACW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☒ |
Page | ||
1 | ||
Item 1. | 1 | |
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
Item 2. | 17 | |
Item 3. | 22 | |
Item 4. | 22 | |
23 | ||
Item 1. | 23 | |
Item 1A. | 23 | |
Item 2. | 23 | |
Item 3. | 23 | |
Item 4. | 23 | |
Item 5. | 23 | |
Item 6. | 24 | |
25 |
March 31, | December 31, | June 30, | December 31, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets: | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 760,583 | $ | 1,426,006 | $ | 475,514 | $ | 1,426,006 | ||||||||
Prepaid expenses | 270,793 | 367,169 | 154,963 | 367,169 | ||||||||||||
Total current asset | 1,031,376 | 1,793,175 | 630,477 | 1,793,175 | ||||||||||||
Investment held in Trust Account | 239,572,457 | 237,038,010 | 60,420,423 | 237,038,010 | ||||||||||||
Total assets | $ | 240,603,833 | $ | 238,831,185 | $ | 61,050,900 | $ | 238,831,185 | ||||||||
Liabilities and Stockholders’ Deficit | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable and accrued expenses | $ | 1,140,048 | $ | 1,001,990 | $ | 1,713,945 | $ | 1,001,990 | ||||||||
Due to Sponsor | 150,000 | 120,000 | 180,000 | 120,000 | ||||||||||||
Franchise taxes payable | 50,000 | 63,283 | 20,000 | 63,283 | ||||||||||||
Income taxes payable | 740,756 | 645,442 | 3,908 | 645,442 | ||||||||||||
Excise tax payable | 1,798,606 | — | ||||||||||||||
Promissory note - related party | 487,500 | — | ||||||||||||||
Total current liabilities | 2,080,804 | 1,830,715 | 4,203,959 | 1,830,715 | ||||||||||||
Warrant liability | 1,135,000 | 1,135,000 | 1,589,000 | 1,135,000 | ||||||||||||
Marketing agreement | 150,000 | 150,000 | 150,000 | 150,000 | ||||||||||||
Deferred underwriting commissions | 8,650,000 | 8,650,000 | 8,650,000 | 8,650,000 | ||||||||||||
Total liabilities | 12,015,804 | 11,765,715 | 14,592,959 | 11,765,715 | ||||||||||||
Commitments and Contingencies (Note 6) | ||||||||||||||||
Class A common stock subject to possible redemption, 23,000,000 shares at redemption value of $10.39 and 10.31 per share as of March 31, 2023 and December 31, 2022, respectively | 238,982,284 | 237,020,680 | ||||||||||||||
Class A common stock subject to possible redemption, 5,702,791 and 23,000,000 shares at redemption value of $10.59 and 10.31 per share as of June 30, 2023 and December 31, 2022, respectively | 60,420,423 | 237,020,680 | ||||||||||||||
Stockholders’ Deficit: | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | - | - | — | — | ||||||||||||
Class A common stock, $0.0001 par value; 500,000,000 shares authorized; none issued and outstanding, (excluding 23,000,000 shares subject to possible redemption) | - | - | ||||||||||||||
Class A common stock, $0.0001 par value; 500,000,000 shares authorized; none issued and outstanding, (excluding 5,702,791 and 23,000,000 shares subject to possible redemption) | — | — | ||||||||||||||
Class B common stock, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 shares issued and outstanding | 575 | 575 | 575 | 575 | ||||||||||||
Additional paid-in capital | - | - | — | — | ||||||||||||
Accumulated deficit | (10,394,830 | ) | (9,955,785 | ) | (13,963,057 | ) | (9,955,785 | ) | ||||||||
Total stockholders’ deficit | (10,394,255 | ) | (9,955,210 | ) | (13,962,482 | ) | (9,955,210 | ) | ||||||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit | $ | 240,603,833 | $ | 238,831,185 | $ | 61,050,900 | $ | 238,831,185 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Operating costs | $ | 1,047,442 | $ | 354,046 | $ | 1,541,770 | $ | 757,331 | ||||||||
Marketing service fee | — | 150,000 | — | 150,000 | ||||||||||||
Loss from operations | (1,047,442 | ) | (504,046 | ) | (1,541,770 | ) | (907,331 | ) | ||||||||
Other Income | ||||||||||||||||
Change in fair value of warrant liabilities | (454,000 | ) | 2,951,000 | (454,000 | ) | 8,399,000 | ||||||||||
Operating account interest income | 5,646 | 425 | 10,929 | 425 | ||||||||||||
Income from Trust Account | 1,285,554 | 333,080 | 3,820,001 | 352,226 | ||||||||||||
Total other income | 837,200 | 3,284,505 | 3,376,930 | 8,751,651 | ||||||||||||
(Loss) Income before provision for income taxes | (210,242 | ) | 2,780,459 | 1,835,160 | 7,844,320 | |||||||||||
Provision for income taxes | (260,652 | ) | (17,794 | ) | (783,495 | ) | (17,794 | ) | ||||||||
Net (loss) income | $ | (470,894 | ) | $ | 2,762,665 | $ | 1,051,665 | $ | 7,826,526 | |||||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption | 10,264,692 | 23,000,000 | 16,597,166 | 23,000,000 | ||||||||||||
Basic and diluted net (loss) income per share, Class A common stock subject to possible redemption | $ | (0.03 | ) | $ | 0.10 | $ | 0.05 | $ | 0.27 | |||||||
Basic and diluted weighted average shares outstanding, Class B common stock | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 | ||||||||||||
Basic and diluted net (loss) income per share, Class B common stock | $ | (0.03 | ) | $ | 0.10 | $ | 0.05 | $ | 0.27 |
For the Three Months Ended March 31, | ||||||||
2023 | 2022 | |||||||
Operating costs | $ | 494,328 | $ | 403,285 | ||||
Loss from operations | (494,328 | ) | (403,285 | ) | ||||
Other Income | ||||||||
Change in fair value of warrant liabilities | - | 5,448,000 | ||||||
Operating account interest income | 5,283 | - | ||||||
Income from trust account | 2,534,447 | 19,146 | ||||||
Total other income | 2,539,730 | 5,467,146 | ||||||
Income before provision for income taxes | 2,045,402 | 5,063,861 | ||||||
Provision for income taxes | (522,843 | ) | - | |||||
Net income | $ | 1,522,559 | $ | 5,063,861 | ||||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption | 23,000,000 | 23,000,000 | ||||||
Basic and diluted net income per share, Class A common stock subject to possible redemption | $ | 0.05 | $ | 0.18 | ||||
Basic and diluted weighted average shares outstanding, Class B common stock | 5,750,000 | 5,750,000 | ||||||
Basic and diluted net income per share, Class B common stock | $ | 0.05 | $ | 0.18 |
Class B Common Stock | Class B Common Stock | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Stockholders’ Deficit | Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Stockholders’ Deficit | |||||||||||||||||||||||||||||||
Balance as of January 1, 2023 | 5,750,000 | $ | 575 | $ | - | $ | (9,955,785 | ) | $ | (9,955,210 | ) | 5,750,000 | $ | 575 | $ | — | $ | (9,955,785 | ) | $ | (9,955,210 | ) | ||||||||||||||||||
Net income | - | - | - | 1,522,559 | 1,522,559 | — | — | — | 1,522,559 | 1,522,559 | ||||||||||||||||||||||||||||||
Accretion for Class A common stock to redemption amount | - | - | - | (1,961,604 | ) | (1,961,604 | ) | — | — | — | (1,961,604 | ) | (1,961,604 | ) | ||||||||||||||||||||||||||
Balance as of March 31, 2023 | 5,750,000 | $ | 575 | $ | - | $ | (10,394,830 | ) | $ | (10,394,255 | ) | |||||||||||||||||||||||||||||
Balance as of March 31, 2023 | 5,750,000 | 575 | — | (10,394,830 | ) | (10,394,255 | ) | |||||||||||||||||||||||||||||||||
Excise tax payable in connection with redemptions | — | — | — | (1,798,606 | ) | (1,798,606 | ) | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | (470,894 | ) | (470,894 | ) | |||||||||||||||||||||||||||||||||
Remeasurement adjustment of carrying value of Class A common stock to redemption amount | — | — | — | (1,298,727 | ) | (1,298,727 | ) | |||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | 5,750,000 | $ | 575 | $ | — | $ | (13,963,057 | ) | $ | (13,962,482 | ) |
Class B Common Stock | Class B Common Stock | |||||||||||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Stockholders’ Deficit | Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Stockholders’ Deficit | |||||||||||||||||||||||||||||||
Balance as of January 1, 2022 | 5,750,000 | $ | 575 | $ | - | $ | (19,065,219 | ) | $ | (19,064,644 | ) | 5,750,000 | $ | 575 | $ | — | $ | (19,065,219 | ) | $ | (19,064,644 | ) | ||||||||||||||||||
Net income | - | - | - | 5,063,861 | 5,063,861 | — | — | — | 5,063,861 | 5,063,861 | ||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 5,750,000 | $ | 575 | $ | - | $ | (14,001,358 | ) | $ | (14,000,783 | ) | |||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 5,750,000 | 575 | — | (14,001,358 | ) | (14,000,783 | ) | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 2,762,665 | 2,762,665 | |||||||||||||||||||||||||||||||||||
Accretion for Class A common stock to redemption amount | — | — | — | (63,360 | ) | (63,360 | ) | |||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 5,750,000 | $ | 575 | $ | — | $ | (11,302,053 | ) | $ | (11,301,478 | ) |
For the Three Months Ended March 31, | For the Six Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 1,522,559 | $ | 5,063,861 | $ | 1,051,665 | $ | 7,826,526 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Change in fair value of warrant liability | - | (5,448,000 | ) | 454,000 | (8,399,000 | ) | ||||||||||
Income from investments held in Trust Account | (2,534,447 | ) | (19,146 | ) | (3,820,001 | ) | (352,226 | ) | ||||||||
Changes in assets and liabilities: | ||||||||||||||||
Prepaid expenses | 96,376 | 80,140 | 212,206 | 180,657 | ||||||||||||
Accounts payable and accrued expenses | 138,058 | 73,786 | 711,955 | 169,772 | ||||||||||||
Franchise tax payable | (13,283 | ) | (121,096 | ) | (43,283 | ) | (71,096 | ) | ||||||||
Income received from Trust Account | - | 5,428 | ||||||||||||||
Marketing service fee | — | 150,000 | ||||||||||||||
Due to related party | 30,000 | - | 60,000 | — | ||||||||||||
Income taxes payable | 95,314 | - | (641,534 | ) | 17,794 | |||||||||||
Net cash used in operating activities | (665,423 | ) | (365,027 | ) | (2,014,992 | ) | (477,573 | ) | ||||||||
Cash flows from investing activities: | ||||||||||||||||
Trust extension funding | (487,500 | ) | — | |||||||||||||
Cash withdrawn from Trust Account in connection with redemption | 179,860,588 | — | ||||||||||||||
Cash withdrawn from Trust Account to pay taxes obligation | 1,064,500 | 171,210 | ||||||||||||||
Net cash provided by investing activities | 180,437,588 | 171,210 | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Redemption of common stock | (179,860,588 | ) | — | |||||||||||||
Proceeds from issuance of promissory note to related party | 487,500 | — | ||||||||||||||
Net cash used in financing activities | (179,373,088 | ) | — | |||||||||||||
Net change in cash | (665,423 | ) | (365,027 | ) | (950,492 | ) | (306,363 | ) | ||||||||
Cash, beginning of the period | 1,426,006 | 1,393,939 | 1,426,006 | 1,393,939 | ||||||||||||
Cash, end of the period | $ | 760,583 | $ | 1,028,912 | $ | 475,514 | $ | 1,087,576 | ||||||||
Supplemental disclosure of cash flow information: | ||||||||||||||||
Accretion for Class A common stock to redemption amount | $ | 1,961,604 | $ | - | ||||||||||||
Payment of federal income taxes | $ | 427,529 | - | |||||||||||||
Remeasurement adjustment of carrying value of Class A common stock to redemption amount | $ | 3,260,331 | $ | 63,360 | ||||||||||||
Excise tax payable in connection with redemption | $ | 1,798,606 | — |
For the Three Months Ended March 31, | ||||||||||||||||
2023 | 2022 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic diluted net income per share | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income | $ | 1,218,047 | $ | 304,512 | $ | 4,051,089 | $ | 1,012,772 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding | 23,000,000 | 5,750,000 | 23,000,000 | 5,750,000 | ||||||||||||
Basic and diluted net income per share | $ | 0.05 | $ | 0.05 | $ | 0.18 | $ | 0.18 |
For the Three Months Ended June 30, | ||||||||||||||||
2023 | 2022 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic diluted net (loss) income per share | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net (loss) income | $ | (301,372 | ) | $ | (169,522 | ) | $ | 2,210,132 | $ | 552,533 | ||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding | 10,264,692 | 5,750,000 | 23,000,000 | 5,750,000 | ||||||||||||
Basic and diluted net (loss) income per share | $ | (0.03 | ) | $ | (0.03 | ) | $ | 0.10 | $ | 0.10 |
For the Six Months Ended June 30, | ||||||||||||||||
2023 | 2022 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic diluted net income per share | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income | $ | 778,232 | $ | 273,433 | $ | 6,261,221 | $ | 1,565,305 | ||||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding | 16,597,166 | 5,750,000 | 23,000,000 | 5,750,000 | ||||||||||||
Basic and diluted net income per share | $ | 0.05 | $ | 0.05 | $ | 0.27 | $ | 0.27 | |
March 31, 2023 | December 31, 2022 | |||||||
As of beginning of the period | $ | 237,020,680 | $ | 234,600,000 | ||||
Plus: | ||||||||
Remeasurement adjustment of carrying value to redemption value | 1,961,604 | 2,420,680 | ||||||
Class A common stock subject to possible redemption | $ | 238,982,284 | $ | 237,020,680 |
June 30, 2023 | December 31, 2022 | |||||||
As of beginning of the period | $ | 237,020,680 | $ | 234,600,000 | ||||
Less: | ||||||||
Redemptions | (179,860,588 | ) | — | |||||
Plus: | ||||||||
Remeasurement adjustment of carrying value to redemption value | 3,260,331 | 2,420,680 | ||||||
Class A common stock subject to possible redemption | $ | 60,420,423 | $ | 237,020,680 |
• | if, and only if, the closing price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant) 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. |
• | if, and only if, the closing price of the Company’s Class A common stock equals or exceeds $10.00 per public share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant) for any 20 trading days within the 30-trading day period ending three trading days before the Company sends the notice of redemption to the warrant holders; and |
• | if the closing price of the Class A common stock for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant), 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, 2023 | June 30, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Investments held in Trust Account | $ | 239,572,457 | $ | - | $ | - | $ | 60,420,423 | $ | — | $ | — | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Public Warrants | $ | 575,000 | $ | - | $ | - | $ | 805,000 | $ | — | $ | — | ||||||||||||
Private Warrants | $ | - | $ | - | $ | 560,000 | $ | — | $ | — | $ | 784,000 | ||||||||||||
Working Capital Loan conversion option | $ | — | $ | — | $ | — |
December 31, 2022 | December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Investments held in Trust Account | $ | 237,038,010 | $ | - | $ | - | $ | 237,038,010 | $ | — | $ | — | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Public Warrants | $ | 575,000 | $ | - | $ | - | $ | 575,000 | $ | — | $ | — | ||||||||||||
Private Warrants | $ | - | $ | - | $ | 560,000 | $ | — | $ | — | $ | 560,000 |
Input | March 31, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | ||||||||||||
Risk-free interest rate | 3.55 | % | 3.95 | % | 4.07 | % | 3.95 | % | ||||||||
Expected term to initial Business Combination (years) | 0.59 | 0.25 | 0.25 | 0.25 | ||||||||||||
Expected volatility | de minimis | de minimis | de minimis | de minimis | ||||||||||||
Common stock price | $ | 10.40 | $ | 10.18 | $ | 10.52 | $ | 10.18 | ||||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
Fair Value at December 31, 2022 – private warrants | $ | 560,000 | $ | 560,000 | ||||
Change in fair value | - | — | ||||||
Fair Value at March 31, 2023 – private warrants | $ | 560,000 | $ | 560,000 | ||||
Change in fair value | 224,000 | |||||||
Fair Value at June 30, 2023 – private warrants | $ | 784,000 |
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 | |
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.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. |
** | 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. |
FOCUS IMPACT ACQUISITION CORP. | ||
/s/ Carl Stanton | ||
Name: | Carl Stanton | |
Title: | Chief Executive Officer | |
(Principal Executive Officer) | ||
/s/ Ernest Lyles | ||
Name: | Ernest Lyles | |
Title: | Chief Financial Officer | |
(Principal Financial and Accounting Officer) |