☒ | 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 | 98-1555920 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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 redeemable warrant | FINMU | The Nasdaq Capital Markets | ||
Class A Ordinary Shares included as part of the units | FINM | The Nasdaq Capital Markets | ||
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 | FINMW | The Nasdaq Capital Markets |
Large, accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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June 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash | $ | 425,128 | $ | — | $ | 108,676 | $ | — | ||||||||
Prepaid expenses | 594,001 | — | 594,579 | — | ||||||||||||
Total Current Assets | 1,019,129 | — | 703,255 | — | ||||||||||||
Deferred offering costs | — | 464,908 | — | 464,908 | ||||||||||||
Investments held in Trust Account | 414,086,925 | — | 414,130,861 | — | ||||||||||||
TOTAL ASSETS | $ | 415,106,054 | $ | 464,908 | $ | 414,834,116 | $ | 464,908 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable and accrued expenses | $ | 316,320 | $ | 0 | $ | 1,363,127 | $ | 0 | ||||||||
Accrued offering costs | 0 | 298,420 | 0 | 298,420 | ||||||||||||
Promissory note – related party | 0 | 146,488 | 0 | 146,488 | ||||||||||||
Total Current Liabilities | 316,320 | 444,908 | 1,363,127 | 444,908 | ||||||||||||
Warrant liabilities | 24,370,933 | — | 16,522,666 | — | ||||||||||||
Deferred underwriting fee payable | 14,490,000 | — | 14,490,000 | — | ||||||||||||
Total Liabilities | 39,177,253 | 444,908 | 32,375,793 | 444,908 | ||||||||||||
Commitments and Contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Class A ordinary shares subject to possible redemption 37,092,880 and 0 shares at $10.00 per share redemption value as of June 30, 2021 and December 31, 2020, respectively | 370,928,800 | — | ||||||||||||||
Shareholders’ Equity | ||||||||||||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 41,400,000 and 0 shares subject to possible redemption at redemption value at September 30, 2021, and December 31, 2020, respectively | 414,000,000 | — | ||||||||||||||
Shareholders’ (Deficit) Equity | ||||||||||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; 0ne issued or outstanding | 0— | 0— | 0— | 0— | ||||||||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 4,307,120 and 0 shares issued and outstanding (excluding 37,092,880 and no shares subject to possible redemption) as of June 30, 2021 and December 31, 2020, respectively | 431 | — | ||||||||||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 10,350,000 shares issued and outstanding as of June 30, 2021 and December 31, 2020 (1) | 1,035 | 1,035 | ||||||||||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 10,350,000 shares issued and outstanding as of September 30, 202 1 , and December 31, 2020(1) | 1,035 | 1,035 | ||||||||||||||
Additional paid-in capital | 425,584 | 23,965 | 0 | 23,965 | ||||||||||||
Retained earnings/(Accumulated deficit) | 4,572,951 | (5,000 | ) | |||||||||||||
Accumulated deficit | (31,542,712 | ) | (5,000 | ) | ||||||||||||
Total Shareholders’ Equity | 5,000,001 | 20,000 | ||||||||||||||
Total Shareholders’ (Deficit) Equity | (31,541,677 | ) | 20,000 | |||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 415,106,054 | $ | 464,908 | ||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | $ | 414,834,116 | $ | 464,908 | ||||||||||||
(1) | As of December 31, 2020, included an aggregate of up to 1,350,000 Class B ordinary shares that were subject to forfeiture depending on the extent to which the underwriters’ over-allotment option was exercised (see Note 2,875,000 Class B ordinary shares, which the Company canceled, resulting in8,625,000 Class B ordinary shares issued and outstanding (see Note 8,625,000 to10,350,000 shares (see Note per-share amounts have been retroactively restated for the share cancellation and capitalization. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2021 | |||||||
Operating and formation costs | $ | 44,527 | $ | 1,911,507 | ||||
Loss from operations | (44,527 | ) | (1,911,507 | ) | ||||
Other income (expense): | ||||||||
Change in fair value of warrant liabilities | (9,294,000 | ) | 6,402,533 | |||||
Interest earned on investments held in Trust Account | 70,027 | 86,925 | ||||||
Other income (expense), net | (9,223,973 | ) | 6,489,458 | |||||
Net (loss) income | $ | (9,268,500 | ) | $ | 4,577,951 | |||
Weighted average shares outstanding of Class A redeemable ordinary shares | 41,400,000 | 41,400,000 | ||||||
Basic and diluted income per share, Class A redeemable ordinary shares | $ | 0.00 | $ | 0.00 | ||||
Weighted average shares outstanding of Class B non-redeemable ordinary shares | 10,350,000 | 10,238,122 | ||||||
Basic and diluted net (loss) income per share, Class B non-redeemable ordinary shares | $ | (0.90 | ) | $ | 0.44 | |||
For The Three Months Ended September 30, | Nine months Ended September 30, | For the Period from September 2, 2020 (Inception) through September 30, | ||||||||||
2021 | 2021 | 2020 | ||||||||||
Operating and formation costs | $ | 1,362,681 | $ | 3,274,188 | $ | 5,000 | ||||||
Loss from operations | (1,362,681 | ) | (3,274,188 | ) | (5,000 | ) | ||||||
Other income: | ||||||||||||
Interest earned on investments held in Trust Account | 43,936 | 130,861 | — | |||||||||
Change in fair value of warrant liabilities | 7,848,267 | 14,250,800 | — | |||||||||
Total other income | 7,892,203 | 14,381,661 | — | |||||||||
Net income (loss) | $ | 6,529,522 | $ | 11,107,473 | $ | (5,000 | ) | |||||
Weighted average shares outstanding of Class A ordinary shares | 41,400,000 | 39,269,118 | — | |||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | 0.13 | $ | 0.22 | $ | — | ||||||
Weighted average shares outstanding of Class B ordinary shares | 10,350,000 | 10,275,824 | 9,000,000 | |||||||||
Basic and diluted net income per share, Class B ordinary shares | $ | 0.13 | $ | 0.22 | $ | — | ||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance – January 1, 2021 | 0 | $ | 0 | 10,350,000 | $ | 1,035 | $ | 23,965 | $ | (5,000 | ) | $ | 20,000 | |||||||||||||||
Accretion for Class A Ordinary Shares subject to redemption | — | — | — | — | (92,499 | ) | (42,645,185 | ) | (42,737,684 | ) | ||||||||||||||||||
Sale of 6,853,333 Private Placement Warrants | — | — | — | — | 68,534 | — | 68,534 | |||||||||||||||||||||
Net income | — | — | — | — | — | 13,846,451 | 13,846,451 | |||||||||||||||||||||
Balance – March 31, 2021 (unaudited) | 0 | 0 | 10,350,000 | 1,035 | 0 | (28,803,734 | ) | (28,802,699 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (9,268,500 | ) | (9,268,500 | ) | |||||||||||||||||||
Balance – June 30, 2021 (unaudited) | 0 | 0 | 10,350,000 | $ | 1,035 | $ | 0 | $ | (38,072,234 | ) | $ | (38,071,199 | ) | |||||||||||||||
Net income | — | — | — | — | — | 6,529,522 | 6,529,522 | |||||||||||||||||||||
Balance – September 30, 2021 (unaudited) | 0 | $ | 0 | 10,350,000 | $ | 1,035 | $ | 0 | $ | (31,542,712 | ) | $ | (31,541,677 | ) | ||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | (Accumulated Deficit) Retained Earnings | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance – January 1, 2021 | 0 | $ | 0 | 10,350,000 | $ | 1,035 | $ | 23,965 | $ | (5,000 | ) | $ | 20,000 | |||||||||||||||
Sale of 41,400,000 Units, net of warrant liabilities related to public warrants, underwriting discounts and offering expenses | 41,400,000 | 4,140 | — | — | 371,258,176 | — | 371,262,316 | |||||||||||||||||||||
Cash paid in excess of fair value of Private Placement Warrants | — | — | — | — | 68,534 | — | 68,534 | |||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (38,019,730 | ) | (3,802 | ) | — | — | (371,350,675 | ) | (8,842,823 | ) | (380,197,300 | ) | ||||||||||||||||
Net income | — | — | — | — | — | 13,846,451 | 13,846,451 | |||||||||||||||||||||
Balance – March 31, 2021 (unaudited) | 3,380,270 | 338 | 10,350,000 | 1,035 | 0 | 4,998,628 | 5,000,001 | |||||||||||||||||||||
Change in value of Class A ordinary shares subject to possible redemption | 926,850 | 93 | — | — | 425,584 | 8,842,823 | 9,268,500 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (9,268,500 | ) | (9,268,500 | ) | |||||||||||||||||||
Balance – June 30, 2021 (unaudited) | 4,307,120 | $ | 431 | 10,350,000 | $ | 1,035 | $ | 425,584 | $ | 4,572,951 | $ | 5,000,001 | ||||||||||||||||
Cash Flows from Operating Activities: | ||||
Net income | $ | 4,577,951 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Interest earned on investments held in Trust Account | (86,925 | ) | ||
Change in fair value of warrants | (6,402,533 | ) | ||
Transaction costs associated with the Initial Public Offering | 1,172,873 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (594,001 | ) | ||
Accounts payable and accrued expenses | 316,320 | |||
Net cash used in operating activities | (1,016,315 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash into Trust Account | (414,000,000 | ) | ||
Net cash used in investing activities | (414,000,000 | ) | ||
Cash Flows from Financing Activities | ||||
Proceeds from sale of Units, net of underwriting discounts paid | 405,720,000 | |||
Proceeds from sale of Private Placement Warrants | 10,280,000 | |||
Repayment of promissory note – related party | (146,488 | ) | ||
Payment of offering costs | (412,069 | ) | ||
Net cash provided by financing activities | 415,441,443 | |||
Net Change in Cash | 425,128 | |||
Cash – Beginning of period | 0 | |||
Cash – End of period | $ | 425,128 | ||
Non-Cash investing and financing activities: | ||||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 365,177,970 | ||
Change in value of Class A ordinary shares subject to possible redemption | $ | 5,750,824 | ||
Deferred underwriting fee payable | $ | 14,490,000 | ||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — September 2, 2020 (Inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B Ordinary Shares to Sponsor | — | — | 10,350,000 | 1,035 | 23,965 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (5,000 | ) | (5,000 | ) | |||||||||||||||||||
Balance — September 30, 2020 (unaudited) | 0 | $ | 0 | 10,350,000 | $ | 1,035 | $ | 23,965 | $ | (5,000 | ) | $ | 20,000 | |||||||||||||||
Nine months Ended September 30, | For the Period from September 2, 2020 (Inception) Through September 30, | |||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 11,107,473 | $ | (5,000 | ) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Change in fair value of warrant liabilities | (14,250,800 | ) | 0 | |||||
Interest earned on investments held in Trust Account | (130,861 | ) | 0 | |||||
Transaction costs allocated to warrants | 1,172,873 | 0 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (594,579 | ) | 0 | |||||
Accounts payable and accrued expenses | 1,060,524 | 5,000 | ||||||
Net cash used in operating activities | (1,635,370 | ) | 0 | |||||
Cash Flows from Investing Activities: | ||||||||
Investment of cash into trust Account | (414,000,000 | ) | 0 | |||||
Net cash used in investing activities | (414,000,000 | ) | 0 | |||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from sale of Units, net of underwriting discount paid | 405,720,000 | 0 | ||||||
Proceeds from sale of Private Placement Units | 10,280,000 | 0 | ||||||
Repayment of promissory note – related party | (146,488 | ) | ||||||
Payment of offering costs | (109,466 | ) | 0 | |||||
Net cash provided by financing activities | 415,744,046 | 0 | ||||||
Net Change in Cash | 108,676 | 0 | ||||||
Cash – Beginning of period | 0 | 0 | ||||||
Cash – End of period | $ | 108,676 | $ | 0 | ||||
Non-Cash investing and financing activities: | ||||||||
Offering costs included in accrued offering costs | $ | 4,183 | $ | 0 | ||||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 414,000,000 | $ | 0 | ||||
Deferred underwriting fee payable | $ | 14,490,000 | $ | 0 | ||||
Balance Sheet as of January 15, 2021 (audited) | As Previously Reported | Adjustment | As Revised | |||||||||
Class A ordinary shares subject to possible redemption | $ | 365,177,974 | $ | 48,822,026 | $ | 414,000,000 | ||||||
Class A ordinary shares | $ | 488 | $ | (488 | ) | $ | — | |||||
Additional paid-in capital | $ | 6,176,353 | $ | (6,176,353 | ) | $ | — | |||||
Accumulated deficit | $ | (1,177,873 | ) | $ | (42,645,185 | ) | $ | (43,823,058 | ) | |||
Total Shareholders’ Equity (Deficit) | $ | 5,000,003 | $ | (48,822,026 | ) | $ | (43,822,023 | ) |
Gross proceeds | $ | 414,000,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | (20,562,000 | ) | ||
Class A ordinary shares issuance costs | (22,175,684 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | 42,737,684 | |||
Class A ordinary shares subject to possible redemption | $ | 414,000,000 | ||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2021 | 2021 | |||||||||||
Redeemable Class A Ordinary Shares | ||||||||||||
Numerator: Earnings allocable to Redeemable Class A Ordinary Shares | ||||||||||||
Interest Income | $ | 70,027 | $ | 86,925 | ||||||||
Redeemable Net Income | $ | 70,027 | $ | 86,925 | ||||||||
Denominator: Weighted Average Redeemable Class A Ordinary Shares | ||||||||||||
Redeemable Class A Ordinary Shares, Basic and Diluted | 41,400,000 | 41,400,000 | ||||||||||
Earnings/Basic and Diluted Redeemable Class A Ordinary Shares | $ | 0.00 | $ | 0.00 | ||||||||
Non-Redeemable B Ordinary Shares | ||||||||||||
Numerator: Net Income (Loss) minus Redeemable Net Earnings | ||||||||||||
Net Income (Loss) | $ | (9,268,500 | ) | $ | 4,577,951 | |||||||
Redeemable Net Income | (70,027 | ) | (86,925 | ) | ||||||||
Non-Redeemable Net Income (Loss) | $ | (9,338,527 | ) | $ | 4,491,026 | |||||||
Denominator: Weighted Average Non-Redeemable Class B Ordinary Shares | ||||||||||||
Non-Redeemable Class B Ordinary Shares, Basic and Diluted | 10,350,000 | 10,238,122 | ||||||||||
Income (Loss)/Basic and Diluted Non-Redeemable Class B Ordinary Shares | $ | (0.90 | ) | $ | 0.44 | |||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period from September 2, 2020 (Inception) Through September 30, 2020 | ||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||
Basic and diluted net loss per ordinary share | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Allocation of net income, as adjusted | $ | 5,223,618 | $ | 1,305,904 | $ | 8,803,738 | $ | 2,303,735 | $ | 0 | $ | (5,000 | ) | |||||||||||
Denominator: | ||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 41,400,000 | 10,350,000 | 39,269,118 | 10,275,824 | 0 | 9,000,000 | ||||||||||||||||||
Basic and diluted net income per ordinary share | $ | 0.13 | $ | 0.13 | $ | 0.22 | $ | 0.22 | $ | 0 | $ | 0 |
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. |
Held-To-Maturity | Level | Amortized Cost | Gross Holding Loss | Fair Value | ||||||||||||||
June 30, 2021 | U.S. Treasury Securities (Mature on 7/15/2021) | 1 | $ | 414,073,508 | $ | (5,790 | ) | $ | 414,067,718 | |||||||||
Held-To-Maturity | Level | Amortized Cost | Gross Holding Loss | Fair Value | ||||||||||||||||
September 30, 2021 | U.S. Treasury Securities | 1 | $ | 414,129,733 | $ | (7,440 | ) | $ | 414,122,293 | |||||||||||
Description | Level | June 30, 2021 | Level | September 30, 2021 | ||||||||||||
Liabilities: | ||||||||||||||||
Warrant Liabilities – Public Warrants | 1 | $ | 16,284,000 | 1 | $ | 11,040,000 | ||||||||||
Warrant Liabilities – Private Placement Warrants | 2 | $ | 8,086,933 | 2 | $ | 5,482,666 |
June 30, 2021 | ||||
Stock Price | $ | 9.68 | ||
Exercise Price | $ | 11.50 | ||
Volatility | 18.40 | % | ||
Term (years) | 0.54 | |||
Dividend Yield | 0.00 | % | ||
Risk Free Rate | 0.96 | % |
Private Placement | Public | Warrant Liabilities | Private Placement | Public | Warrant Liabilities | |||||||||||||||||||
Fair value as of January 1, 2021 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||
Initial measurement on January 15, 2021 | 10,211,466 | 20,562,000 | 30,773,466 | |||||||||||||||||||||
Change in fair value | (5,808,533 | ) | (10,488,000 | ) | (15,696,533 | ) | ||||||||||||||||||
Initial measurement on January 15th, 2021 | 10,211,466 | 20,562,000 | 30,773,466 | |||||||||||||||||||||
Change in valuation inputs or other assumptions | (5,808,533 | ) | (10,488,000 | ) | (15,696,533 | ) | ||||||||||||||||||
Transfer to Level 1 | 0 | (10,074,000 | ) | (10,074,000 | ) | 0 | (10,074,000 | ) | (10,074,000 | ) | ||||||||||||||
Transfer to Level 2 | (5,002,933 | ) | 0 | (5,002,933 | ) | (5,002,933 | ) | 0 | (5,002,933 | ) | ||||||||||||||
Fair value as of June 30, 2021 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
Fair value as of September 30, 2021 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||||
* | Filed herewith. |
MARLIN TECHNOLOGY CORPORATION | ||||||
Date: | By: | /s/ Nick Kaiser | ||||
Name: | Nick Kaiser | |||||
Title: | Chief Executive Officer and Director | |||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ Michael Nutting | ||||
Name: | Michael Nutting | |||||
Title: | Chief Financial Officer and Director | |||||
(Principal Financial and Accounting Officer) |