☒ | 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 | 001-39639 | 98-1556204 | ||
(State or other jurisdiction of incorporation or organization) incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
1450 Brickell Avenue, 31st Floor | ||
Miami, FL | 33131 | |
(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 | HIGA.U | New York Stock Exchange | ||
ordinary share, $0.0001 par value, and one-third of one redeemable warrant | ||||
Class A ordinary shares included as part of | HIGA | New York Stock Exchange | ||
the units | ||||
Redeemable warrants included as part of | HIGA WS | New York Stock Exchange | ||
the units |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||||
Emerging growth company | ☒ |
Item 1. | Financial Statements |
June 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 4,461 | $ | 30,103 | ||||
Prepaid expenses | 758,246 | 1,096,949 | ||||||
Total current assets | 762,707 | 1,127,052 | ||||||
Investments held in Trust Account | 363,969,337 | 363,951,287 | ||||||
Total assets | $ | 364,732,044 | $ | 365,078,339 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Liabilities | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,421,593 | $ | 58,206 | ||||
Accrued expenses | 245,250 | 98,579 | ||||||
Due to related party | 21,683 | 0 | ||||||
Total current liabilities | 1,688,526 | 156,785 | ||||||
Deferred underwriting commissions | 12,738,075 | 12,738,075 | ||||||
Derivative warrant liabilities | 20,881,870 | 23,995,840 | ||||||
Total liabilities | 35,308,471 | 36,890,700 | ||||||
Commitments and Contingencies (Note 5) | 0 | |||||||
Class A ordinary shares subject to possible redemption, 32,442,357 and 32,318,763 shares at redemption value of $10.00 per share as of June 30, 2021 and December 31, 2020, respectively | 324,423,570 | 323,187,630 | ||||||
Shareholders’ Equity | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding at June 30, 2021 and December 31, 2020 | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 950,000,000 shares authorized; 3,952,143 and 4,075,737 shares issued and outstanding (excluding 32,442,357 and 32,318,763 shares subject to possible redemption) at June 30, 2021 and December 31, 2020 | 395 | 408 | ||||||
Class B ordinary shares, $0.0001 par value; 95,000,000 shares authorized; 9,098,625 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 910 | 910 | ||||||
Additional paid-in capital | 13,405,320 | 14,641,247 | ||||||
Accumulated deficit | (8,406,622 | ) | (9,642,556 | ) | ||||
Total shareholders’ equity | 5,000,003 | 5,000,009 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 364,732,044 | $ | 365,078,339 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Cash | $ | 4,186 | $ | 4,311 | ||||
Prepaid expenses | 343,001 | 495,072 | ||||||
Total current assets | 347,187 | 499,383 | ||||||
Investments held in Trust Account | 364,020,136 | 363,987,687 | ||||||
Total Assets | $ | 364,367,323 | $ | 364,487,070 | ||||
LIABILITIES , CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 696,996 | $ | 645,385 | ||||
Due to related party | 1,354,820 | 1,202,797 | ||||||
Accrued expenses | 628,356 | 579,866 | ||||||
Total current liabilities | 2,680,172 | 2,428,048 | ||||||
Deferred underwriting commissions | 12,738,075 | 12,738,075 | ||||||
Derivative warrant liabilities | 6,381,794 | 12,822,204 | ||||||
Total liabilities | 21,800,041 | 27,988,327 | ||||||
Commitments and Contingencies (Note 4) | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 36,394,500 shares at $10.00 per share (1) | 363,945,000 | 363,945,000 | ||||||
Shareholders’ deficit | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 950,000,000 shares authorized; 0ne issued or outstanding (excluding 36,394,500 shares subject to possible redemption) (1) | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 95,000,000 shares authorized; 9,098,625 shares issued and outstanding | 910 | 910 | ||||||
Additional paid-in capital(1) | 0 | 0 | ||||||
Accumulated deficit (1) | (21,378,628 | ) | (27,447,167 | ) | ||||
Total shareholders’ deficit (1) | (21,377,718 | ) | (27,446,257 | ) | ||||
Total Liabilities and Shareholders’ Deficit | $ | 364,367,323 | $ | 364,487,070 | ||||
(1) | March 31, 2021 values were restated in Note 2 of the Company’s form 10-Q/A for September 30, 2021 as filed with the SEC on December 29, 2021. |
Three Months ended June 30, 2021 | Six Months ended June 30, 2021 | |||||||
General and administrative expenses | $ | 549,830 | $ | 1,836,085 | ||||
Administrative expenses - related party | 30,000 | 60,000 | ||||||
Loss from operations | (579,830 | ) | (1,896,085 | ) | ||||
Change in fair value of derivative warrant liabilities | (1,648,560 | ) | 3,113,970 | |||||
Net gain from investments held in Trust Account | 9,075 | 18,049 | ||||||
Net Income (Loss) | $ | (2,219,315 | ) | $ | 1,235,934 | |||
Weighted average shares outstanding of Class A redeemable ordinary shares | 36,394,500 | 36,394,500 | ||||||
Basic and diluted net income (loss) per share, Class A | $ | 0.00 | $ | 0.00 | ||||
Weighted average shares outstanding of Class B non-redeemable ordinary shares | 9,098,625 | 9,098,625 | ||||||
Basic and diluted net (loss) income per share, Class B ordinary shares | $ | (0.24 | ) | $ | 0.13 | |||
For the Three | For the Three | |||||||
Months Ended | Months Ended | |||||||
March 31, 2022 | March 31, 2021 | |||||||
General and administrative expenses | $ | 374,320 | $ | 1,286,256 | ||||
Administrative expenses – related party | 30,000 | 30,000 | ||||||
Loss from operations | (404,320 | ) | (1,316,256 | ) | ||||
Change in fair value of derivative warrant liabilities | 6,440,410 | 4,762,530 | ||||||
Net gain from investments held in Trust Account | 32,449 | 8,975 | ||||||
Net income | $ | 6,068,539 | $ | 3,455,249 | ||||
Weighted average shares outstanding of Class A ordinary shares subject to possible redemption, basic and diluted | 36,394,500 | 36,394,500 | ||||||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption (1) | $ | 0.13 | $ | 0.08 | ||||
Weighted average shares outstanding of Class B non-redeemable ordinary shares, basic and diluted | 9,098,625 | 9,098,625 | ||||||
Basic and diluted net income per share, Class B non-redeemable ordinary shares(1) | $ | 0.13 | $ | 0.08 | ||||
(1) | March 31, 2021 values were restated in Note 2 of the Company’s form 10-Q/A for September 30, 2021 as filed with the SEC on December 29, 2021. |
Ordinary Shares | Additional Paid-in Capital | Total Shareholders’ Equity | ||||||||||||||||||||||||||
Class A | Class B | Accumulated Deficit | ||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - January 1, 202 1 | 4,075,737 | $ | 408 | 9,098,625 | $ | 910 | $ | 14,641,248 | $ | (9,642,556 | ) | $ | 5,000,009 | |||||||||||||||
Change in value of Class A ordinary shares subject to possible redemption | (345,525 | ) | (35 | ) | — | — | (3,455,216 | ) | — | (3,455,250 | ) | |||||||||||||||||
Net Income | — | — | — | — | 3,455,249 | 3,455,249 | ||||||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 3,730,212 | $ | 375 | 9,098,625 | $ | 910 | $ | 11,186,032 | $ | (6,187,307 | ) | $ | 5,000,008 | |||||||||||||||
Change in Class A shares subject to possible redemption | 221,931 | 22 | — | — | 2,219,288 | — | 2,219,310 | |||||||||||||||||||||
Net Income | — | — | — | — | — | (2,219,315 | ) | (2,219,315 | ) | |||||||||||||||||||
Balance - June 30, 2021 (unaudited) | 3,952,143 | $ | 395 | 9,098,625 | $ | 910 | $ | 13,405,320 | $ | (8,406,622 | ) | $ | 5,000,003 | |||||||||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||
Class B | Paid-In | Accumulated | Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance as of January 1, 2022 | 9,098,625 | $ | 910 | $ | 0 | $ | (27,447,167 | ) | $ | (27,446,257 | ) | |||||||||
Net incom e | — | — | — | 6,068,539 | 6,068,539 | |||||||||||||||
Balance as of March 31, 2022 (unaudited) | 9,098,625 | $ | 910 | $ | 0— | $ | (21,378,628 | ) | $ | (21,377,718 | ) | |||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||
Class B | Paid-In | Accumulated | Shareholders’ | |||||||||||||||||
Shares | Amount | Capital (1) | Deficit (1) | Deficit (1) | ||||||||||||||||
Balance as of January 1, 2021 | 9,098,625 | $910 | $ | 0 | $ | (35,758,271 | ) | $ | (35,757,361 | ) | ||||||||||
Net incom e | — | — | — | 3,455,249 | 3,455,249 | |||||||||||||||
Balance as of March 31, 2021 (unaudited) | 9,098,625 | $ | $910 | $ | 0— | $ | (32,303,022 | ) | $ | (32,302,112 | ) | |||||||||
(1) | March 31, 2021 values were restated in Note 2 of the Company’s form 10-Q/A for September 30, 2021 as filed with the SEC on December 29, 2021. |
Cash Flows from Operating Activities: | ||||||||||||
For the Three | For the Three | |||||||||||
Months Ended | Months Ended | |||||||||||
March 31, 2022 | March 31, 2021 | |||||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 1,235,934 | $ | 6,068,539 | $ | 3,455,249 | ||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||
Net gain from investments held in Trust Account | (18,049 | ) | (32,449 | ) | (8,975 | ) | ||||||
Change in fair value of derivative warrant liabilities | (3,113,970 | ) | (6,440,410 | ) | (4,762,530 | ) | ||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses | 338,702 | 152,071 | 164,077 | |||||||||
Accounts payable | 1,363,387 | 51,611 | 1,166,201 | |||||||||
Accrued expenses | 146,671 | 48,490 | (60,829 | ) | ||||||||
Due to related party | 21,683 | 152,023 | 21,280 | |||||||||
Net cash used in operating activities and net decrease in cash | (25,642 | ) | ||||||||||
Cash - beginning of the period | 30,103 | |||||||||||
Cash - end of the period | $ | 4,461 | ||||||||||
Net cash used in operating activities | (125 | ) | (25,527 | ) | ||||||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||||||
Change in value of Class A ordinary shares subject to possible redemption | $ | 1,235,940 | ||||||||||
Net decrease in cash | (125 | ) | (25,527 | ) | ||||||||
Cash - beginning of period | 4,311 | 30,103 | ||||||||||
Cash - end of period | $ | 4,186 | $ | 4,576 | ||||||||
For The Three | For The Three | |||||||
Months Ended | Months Ended | |||||||
March 31, 2022 | March 31, 2021 | |||||||
Redeemable Class A Ordinary Shares | ||||||||
Numerator: Net income allocable to Redeemable Class A Ordinary Shares | $ | 4,854,831 | $ | 2,764,199 | ||||
Denominator: Weighted Average Share Outstanding, Redeemable Class A Ordinary Shares | 36,394,500 | 36,394,500 | ||||||
Basic and diluted net income per share, Redeemable Class A Ordinary Shares | $ | 0.13 | $ | 0.08 | ||||
Non-Redeemable Class B Ordinary Shares | ||||||||
Numerator: Net income allocable to non-redeemable Class B Ordinary Shares | $ | 1,213,708 | $ | 691,050 | ||||
Denominator: Weighted Average Non-Redeemable Class B Ordinary Shares | 9,098,625 | 9,098,625 | ||||||
Basic and diluted net income per share, Non- Redeemable Class B Ordinary Shares | $ | 0.13 | $ | 0.08 | ||||
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 | $ | 363,969,337 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public | $ | 13,829,910 | $ | — | $ | — | ||||||
Derivative warrant liabilities - Private | $ | — | $ | 7,051,960 | $ | — |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Marketable securities held in Trust Account | $ | 364,020,136 | $ | — | $ | — | $ | 364,020,136 | ||||||||
Liabilities: | ||||||||||||||||
Public Warrants | $ | 4,226,615 | $ | — | $ | — | $ | 4,226,615 | ||||||||
Private Placement Warrants | — | 2,155,179 | — | 2,155,179 | ||||||||||||
Total liabilities | $ | 4,226,615 | $ | 2,155,179 | $ | — | $ | 6,381,794 | ||||||||
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 | $ | 363,951,287 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public | $ | 15,892,270 | $ | — | $ | — | ||||||
Derivative warrant liabilities - Private | $ | — | $ | 8,103,570 | $ | — |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Marketable securities held in Trust Account | $ | 363,987,687 | $ | — | $ | — | $ | 363,987,687 | ||||||||
Liabilities: | ||||||||||||||||
Public Warrants | $ | 8,492,050 | $ | — | $ | — | $ | 8,492,050 | ||||||||
Private Placement Warrants | — | 4,330,154 | — | 4,330,154 | ||||||||||||
Total liabilities | $ | 8,492,050 | $ | 4,330,154 | $ | — | $ | 12,822,204 | ||||||||
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. |
* | 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. |
Dated: | H.I.G. ACQUISITION CORP. | |||||||
By: | /s/ Timur Akazhanov | |||||||
Name: | Timur Akazhanov | |||||||
Title: | Chief Financial Officer |