☒ | 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 | 98-1563924 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
2550 Sand Hill Road, Suite 150 | ||
Menlo Park, CA | 94025 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A ordinary shares | AGCB | New York Stock Exchange LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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21 | ||||
ITEM 1. | FINANCIAL STATEMENTS |
June 30, | December 31, | |||||||
2021 | 2020 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 553,866 | $ | — | ||||
Prepaid expenses | 577,083 | — | ||||||
Total Current Assets | 1,130,949 | — | ||||||
Deferred offering costs | — | 392,268 | ||||||
Cash and marketable securities held in Trust Account | 450,012,700 | — | ||||||
TOTAL ASSETS | $ | 451,143,649 | $ | 392,268 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 166,201 | $ | — | ||||
Accrued offering costs | — | 252,678 | ||||||
Promissory note – related party | 0 | 119,590 | ||||||
Total Current Liabilities | 166,201 | 372,268 | ||||||
FPA liability | 1,156,478 | — | ||||||
Deferred underwriting fee payable | 15,750,000 | — | ||||||
Total Liabilities | 17,072,679 | 372,268 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption 42,907,096 and 0 shares as of June 30, 2021 and December 31, 202 0 , respectively, at a redemption value of $10.00 per share | 429,070,960 | — | ||||||
Shareholders’ Equity | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding | 0 | — | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 3,192,904 and 0 shares issued and outstanding (excluding 42,907,096 and 0 shares subject to possible redemption) as of June 30, 2021 and December 31, 2020, respectively | 319 | — | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 11,250,000 shares issued and outstanding (1) | 1,125 | 1,125 | ||||||
Additional paid-in capital | 6,647,821 | 23,875 | ||||||
Accumulated deficit | (1,649,255 | ) | (5,000 | ) | ||||
Total Shareholders’ Equity | 5,000,010 | 20,000 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 451,143,649 | $ | 392,268 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash | $ | 19,303 | $ | 398,681 | ||||
Prepaid Expenses | 300,093 | 405,223 | ||||||
Total Current Assets | 319,396 | 803,904 | ||||||
FPA Asset | 133,829 | 394,350 | ||||||
Marketable securities held in Trust Account | 450,064,876 | 450,028,147 | ||||||
TOTAL ASSETS | 450,518,101 | 451,226,401 | ||||||
LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ DEFICIT | ||||||||
Current Liabilities | ||||||||
Accrued expenses and accounts payable | $ | 839,142 | $ | 814,452 | ||||
Accounts payable – related party | 46,219 | 46,219 | ||||||
Total Current Liabilities | 885,361 | 860,671 | ||||||
Deferred underwriting fee payable | 15,750,000 | 15,750,000 | ||||||
Total Liabilities | 16,635,361 | 16,610,671 | ||||||
Commitments and Contingencies (Note 6) | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value, 45,000,000 shares outstanding as of March 31, 2022 and December 31, 2021, respectively, at a redemption value of $10.00 per share | 450,000,000 | 450,000,000 | ||||||
Shareholders’ Deficit | ||||||||
Preference Shares, $0.0001 par value; 1,000,000 shares authorized, 0 shares issued or outstanding | 0 | 0 | ||||||
Class A ordinary shares, $0.0001 par value, 200,000,000 shares authorized, 1,100,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively (excluding 45,000,000 shares subject to redemption) | 110 | 110 | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 11,250,000 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively | 1,125 | 1,125 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (16,118,495 | ) | (15,385,505 | ) | ||||
Total Shareholders’ Deficit | (16,117,260 | ) | (15,384,270 | ) | ||||
TOTAL LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ DEF I CIT | $ | 450,518,101 | $ | 451,226,401 | ||||
THREE MONTHS ENDED | SIX MONTHS ENDED | |||||||
June 30, 2021 | June 30, 2021 | |||||||
Operating and formation costs | $ | 244,182 | $ | 500,478 | ||||
Loss from operations | (244,182 | ) | (500,478 | ) | ||||
Other income (expense): | ||||||||
Interest earned on marketable securities held in Trust Account | 6,839 | 12,701 | ||||||
Change in fair value of FPA liability | 507,612 | (1,156,478 | ) | |||||
Net income (loss) | $ | 270,269 | $ | (1,644,255 | ) | |||
Weighted average shares outstanding, Class A redeemable ordinary shares | 45,000,000 | 45,000,000 | ||||||
Basic and diluted net income per share, Class A redeemable ordinary shares | $ | (0.00 | ) | $ | (0.00 | ) | ||
Weighted average shares outstanding, Class A and Class B non-redeemable ordinary shares | 12,350,000 | 12,207,182 | ||||||
Basic and diluted net loss per share, Class A and Class B non-redeemable ordinary shares | $ | 0.02 | $ | (0.14 | ) | |||
For the three months ended | For the three months ended | |||||||
March 31, 2022 | March 31, 2021 | |||||||
Operating costs | $ | 509,197 | $ | 256,296 | ||||
Loss from operations | (509,197 | ) | (256,296 | ) | ||||
Other income (expense): | ||||||||
Interest earned on marketable securities held in Trust Account | 36,728 | 5,862 | ||||||
Change in fair value of FPA Asset | (260,521 | ) | (1,664,090 | ) | ||||
Net Loss | $ | (732,990 | ) | $ | (1,914,524 | ) | ||
Weighted average shares outstanding, Class A ordinary shares (1) | 46,100,000 | 40,465,556 | ||||||
Basic and diluted net loss per share, Class A ordinary shares (1) | $ | (0.01) | $ | (0.04 | ) | |||
Weighted average shares outstanding, Class B ordinary shares (1) | 11,250,000 | 11,097,222 | ||||||
Basic and diluted net loss per share, Class B ordinary shares (1) | $ | (0.01 | ) | $ | (0.04 | ) | ||
(1) | Subsequent to March 31, 2021, the Company adjusted its approach in calculating net loss per share to comply with FASB ASC Topic 260, “Earnings Per Share”. In doing so, the Company adopted a pro-rata approach between its two classes of shares. All share and per-share data have been retroactively restated to reflect this change. |
Class A | Class B | Additional | Total | |||||||||||||||||||||||||
Ordinary Shares | Ordinary Shares | Paid-in Capital | Accumulated Deficit | Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | �� | Amount | ||||||||||||||||||||||||
Balance — December 31, 2020 (1) | — | $ | — | 11,250,000 | $ | 1,125 | $ | 23,875 | $ | (5,000 | ) | $ | 20,000 | |||||||||||||||
Sale of 45,000,000 Shares, net of underwriting discounts | 45,000,000 | 4,500 | — | — | 424,690,725 | — | 424,695,225 | |||||||||||||||||||||
Sale of 1,100,000 Private Placement Shares | 1,100,000 | 110 | — | — | 10,999,890 | — | 11,000,000 | |||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (42,880,070 | ) | (4,288 | ) | 0 | 0 | (428,796,412 | ) | 0 | (428,800,700 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | (1,914,524 | ) | (1,914,524 | ) | |||||||||||||||||||
Balance — March 31, 2021 | 3,219,930 | 322 | 11,250,000 | 1,125 | 6,918,078 | (1,919,524 | ) | 5,000,001 | ||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (27,026 | ) | (3 | ) | 0 | 0 | (270,257 | ) | 0 | (270,260 | ) | |||||||||||||||||
Net Income | — | — | — | — | — | 270,269 | 270,269 | |||||||||||||||||||||
Balance – June 30, 2021 | 3,192,904 | $ | 319 | 11,250,000 | $ | 1,125 | $ | 6,647,821 | $ | (1,649,255 | ) | $ | 5,000,010 | |||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — January 1, 2022 | 1,100,000 | $ | 110 | 11,250,000 | $ | 1,125 | $ | 0 | $ | (15,385,505 | ) | $ | (15,384,270 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (732,990 | ) | (732,990 | ) | |||||||||||||||||||
Balance — March 31, 2022 | 1,100,000 | $ | 110 | 11,250,000 | $ | 1,125 | $ | 0 | $ | (16,118,495 | ) | $ | (16,117,260 | ) | ||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — January 1, 2021 | 0 | $ | 0 | 11,250,000 | $ | 1,125 | $ | 23,875 | $ | (5,000 | ) | $ | 20,000 | |||||||||||||||
Sale of 1,100,000 Private Placement Shares | 1,100,000 | 110 | — | — | 10,999,890 | — | 11,000,000 | |||||||||||||||||||||
Accretion to Class A ordinary shares subject to possible redemption | — | — | — | — | (11,023,765 | ) | (14,281,010 | ) | (25,304,775 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (1,914,524 | ) | (1,914,524 | ) | |||||||||||||||||||
Balance — March 31, 2021 | 1,100,000 | $ | 110 | 11,250,000 | $ | 1,125 | $ | 0 | $ | (16,200,534 | ) | $ | (16,199,299 | ) | ||||||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (1,644,255 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of FPA liability | 1,156,478 | |||
Interest earned on marketable securities held in Trust account | (12,701 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (577,083 | ) | ||
Accrued expenses | 166,201 | |||
Net cash used in operating activities | (911,360 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (450,000,000 | ) | ||
Net cash used in investing activities | (450,000,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from sale of Class A ordinary shares, net of underwriting discounts paid | 441,000,000 | |||
Proceeds from sale of Private Placement Shares | 11,000,000 | |||
Repayment of promissory note – related party | (144,544 | ) | ||
Payment of offering costs | (390,230 | ) | ||
Net cash provided by financing activities | 451,465,226 | |||
Net Change in Cash | 553,866 | |||
Cash – Beginning of period | 0 | |||
Cash – End of period | $ | 553,866 | ||
Non-Cash investing and financing activities: | ||||
Offering costs paid through promissory note | $ | 24,955 | ||
Deferred underwriting fee payable | $ | 15,750,000 | ||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 430,715,220 | ||
Change in value of Class A ordinary shares subject to possible redemption | $ | (1,644,260 | ) | |
For the three months ended March 31, 2022 | For the three months ended March 31, 2021 | |||||||
Cash flow from Operating Activities: | ||||||||
Net loss | $ | (732,990 | ) | $ | (1,914,524 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Interest earned on marketable securities held in Trust Account | (36,728 | ) | (5,862 | ) | ||||
Changes in fair value of FPA | 260,521 | 1,664,090 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 105,130 | (692,333 | ) | |||||
Accrued Expenses | 24,689 | 93,926 | ||||||
Net cash used in operating activities | (379,378 | ) | (854,703 | ) | ||||
Cash Flow from Investing Activities: | ||||||||
Investment of cash in Trust Account | 0 | (450,000,000 | ) | |||||
Net cash used in investing activities | 0 | (450,000,000 | ) | |||||
Cash flows from Financing Activities: | ||||||||
Proceeds from sale of Units, net of underwriting discounts paid | 0 | 441,000,000 | ||||||
Proceeds from sale of private placement units | 0 | 11,000,000 | ||||||
Repayment of promissory note – related party | 0 | (144,545 | ) | |||||
Payment of offering costs | 0 | (390,230 | ) | |||||
Net cash provided by financing activities | 0 | 451,465,225 | ||||||
Net change in cash | (379,378 | ) | 610,522 | |||||
Cash – Beginning of period | 398,681 | 0 | ||||||
Cash – End of Period | $ | 19,303 | $ | 610,522 | ||||
Non-Cash investing and financing activities: | ||||||||
Offering costs paid through promissory note | $ | 0 | $ | 24,955 | ||||
Deferred underwriting fee payable | $ | — | $ | 15,750,000 | ||||
Gross Proceeds | $ | 450,000,000 | ||
Less: | ||||
Class A ordinary shares issuance costs | $ | (25,304,776 | ) | |
Plus: | ||||
Accretion of carrying value to redemption value | $ | 25,304,776 | ||
Class A ordinary shares subject to possible redemption | $ | 450,000,000 | ||
For the three months ended March 31, 2022 | For the three months ended March 31, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net loss per ordinary share | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | $ | (589,204 | ) | $ | (143,786 | ) | $ | (1,502,485 | ) | $ | (412,039 | ) | ||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average shares outstanding | 46,100,000 | 11,250,000 | 40,465,556 | 11,097,222 | ||||||||||||
Basic and diluted net loss per ordinary share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | (0.04 | ) | ||||
Three M onths | ||||
Ended June 30, | ||||
2021 | ||||
Redeemable Class A Ordinary Shares | ||||
Numerator: Earnings allocable to Redeemable Class A Ordinary Shares | ||||
Interest Income | $ | 6,389 | ||
Net Earnings | $ | 6,389 | ||
Denominator: Weighted Average Redeemable Class A Ordinary Shares | ||||
Redeemable Class A Ordinary Shares, Basic and Diluted | 45,000,000 | |||
Earnings/Basic and Diluted Redeemable Class A Ordinary Shares | $ | 0.00 | ||
Non-Redeemable Class B Ordinary Shares | ||||
Numerator: Net Income minus Redeemable Net Earnings | ||||
Net Income | $ | 270,269 | ||
Redeemable Net Earnings | 6,839 | |||
Non-Redeemable NetIncome | $ | 263,430 | ||
Denominator: Weighted Average Non-Redeemable Class A and Class B Ordinary Shares | ||||
Non-Redeemable Class A and Class B Ordinary Shares, Basic and Diluted | 12,350,000 | |||
Loss/Basic and Diluted Non-Redeemable Class A and Class B Ordinary Shares | $ | 0.02 | ||
Six Months | ||||
Ended June 30, | ||||
2021 | ||||
Redeemable Class A Ordinary Shares | ||||
Numerator: Earnings allocable to Redeemable Class A Ordinary Shares | ||||
Interest Income | $ | 12,701 | ||
Net Earnings | $ | 12,701 | ||
Denominator: Weighted Average Redeemable Class A Ordinary Shares | ||||
Redeemable Class A Ordinary Shares, Basic and Diluted | 45,000,000 | |||
Earnings/Basic and Diluted Redeemable Class A Ordinary Shares | $ | 0.00 | ||
Non-Redeemable Class B Ordinary Shares | ||||
Numerator: Net Income minus Redeemable Net Earnings | ||||
Net Income | $ | (1,644,255) | ||
Redeemable Net Earnings | 12,701 | |||
Non-Redeemable Net Loss | $ | (1,656,956) | ||
Denominator: Weighted Average Non-Redeemable Class A and Class B Ordinary Shares | ||||
Non-Redeemable Class A and Class B Ordinary Shares, Basic and Diluted | 12,207,182 | |||
Loss/Basic and Diluted Non-Redeemable Class A and Class B Ordinary Shares | $ | (0.14 | ) | |
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: | ||||||||||||||||||||
Investments held in Trust Account – U.S. Treasury Securities Money Market Fund | 1 | $ | 450,012,700 | 1 | $ | 450,064,876 | $ | 450,028,147 | ||||||||||||
Liabilities: | ||||||||||||||||||||
FPA Liability | 3 | $ | 1,156,478 | |||||||||||||||||
FPA Asset | 3 | $ | 133,829 | $ | 394,350 |
Input | March 31, 2022 | December 31, 2021 | ||||||
Risk-free interest rate | 1.3 | % | 0.3 | % | ||||
Years to expected initial business combination date | 0.75 | 0.75 | ||||||
Conditional probability of Securities Issued | 33.3 | % | 66.7 | % | ||||
Fair value of security at valuation date | $ | (0.08 | ) | $ | (0.12 | ) |
Input | J 0 ,2021 | January 11 ,2021 | ||||||
Risk-free interest | 0.1 | % | 0.1 | % | ||||
Years to expected IBC date | 1.00 | 1.5 | ||||||
Conditional probability of Securities Issued | 90.0 | % | 85.0 | % | ||||
Fair value of security at valuation date | $ | 10.25 | $ | 9.98 |
FPA Liability | FPA (Asset) Liability | |||||||
Fair value, January 11, 202 1 | $ | 73,207 | ||||||
Fair value, January 11, 2021 | $ | 0 | ||||||
Recognized loss on change in fair value | 1,590,883 | 1,664,090 | ||||||
Fair value, March 31, 2021 | 1,664,090 | $ | 1,664,090 | |||||
Fair value, December 31, 2021 | $ | (394,350 | ) | |||||
Recognized gain on change in fair value | (507,612 | ) | 260,521 | |||||
Fair value, June 30, 202 1 | $ | 1,156,478 | ||||||
Fair value, March 31, 2022 | $ | (133,829 | ) | |||||
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 FROM REGISTERED SECURITIES. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
ITEM 4. | MINE SAFETY DISCLOSURES. |
ITEM 5. | OTHER INFORMATION. |
ITEM 6. | EXHIBITS. |
* | Filed herewith. |
** | Furnished. |
ALTIMETER GROWTH CORP. 2 | ||||||
Date: | /s/ Brad Gerstner | |||||
Name: Title: | Brad Gerstner Chief Executive Officer, President and Chairman (Principal Executive Officer) | |||||
Date: | /s/ Hab Siam | |||||
Name: Title: | Hab Siam General Counsel (Principal Financial and Principal Accounting Officer) |