☒ | 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 |
Delaware | 86-1370703 | |
(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 share of Class A Common Stock and one-half of one Redeemable Warrant | SWAGU | The Nasdaq Stock Market LLC | ||
Class A Common Stock, par value $0.0001 per share | SWAG | The Nasdaq Stock Market LLC | ||
Warrants, each exercisable for one share Class A Common Stock for $11.50 per share | SWAGW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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5 | ||||
ASSETS | ||||
Current asset – Cash | $ | 25,001 | ||
Deferred offering costs | 331,691 | |||
TOTAL ASSETS | $ | 356,692 | ||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||
Current liabilities | ||||
Accrued expenses | $ | 1,000 | ||
Accrued offering costs | 169,054 | |||
Promissory note – related party | 162,637 | |||
Total Current Liabilities | 332,691 | |||
Stockholder’s Equity | ||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaNissued and outstanding | 0 | |||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; NaNissued and outstanding | 0 | |||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 5,750,000 shares issued and outstanding (1) | 575 | |||
Additional paid-in capital | 24,425 | |||
Accumulated deficit | (999 | ) | ||
Total Stockholder’s Equity | 24,001 | |||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | $ | 356,692 | ||
ASSETS | ||||
Current assets | ||||
Cash | $ | 660,354 | ||
Prepaid expenses and other current assets | 538,213 | |||
Other receivable – related party | 5,541 | |||
Total Current Assets | 1,204,108 | |||
Marketable securities held in Trust Account | 231,501,771 | |||
TOTAL ASSETS | $ | 232,705,879 | ||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||
Current liabilities | ||||
Accrued expenses | $ | 384,624 | ||
Total Current Liabilities | 384,624 | |||
Deferred underwriting fee payable | 7,982,754 | |||
Total Liabilities | 8,367,378 | |||
Commitments and Contingencies (See Note 7) | 0 | |||
Class A common stock subject to possible redemption, 22,807,868 shares at redemption value | 231,499,860 | |||
Stockholders’ Deficit | ||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | 0 | |||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; NaN shares issued and outstanding, and 22,807,868 subject to possible redemption | 0 | |||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 5,701,967 shares issued and outstanding | 570 | |||
Additional paid-in capital | 0 | |||
Accumulated deficit | (7,161,929 | ) | ||
Total Stockholders’ Deficit | (7,161,359 | ) | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 232,705,879 | ||
Three Months Ended June 30, 2021 | For the ,Period from January 5, 2021 (inception) Through June 30 2021 | |||||||
Operating and formation costs | $ | (1 | ) | $ | 999 | |||
Net income (loss) | $ | 1 | $ | (999 | ) | |||
Weighted average shares outstanding, basic and diluted (1) | 5,000,000 | 5,000,000 | ||||||
Basic and diluted net loss per common share | $ | 0.00 | $ | (0.00 | ) | |||
|
Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholder’s Equity | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance — January 5, 2021 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of Class B common stock to Sponsor (1) | 5,750,000 | 575 | 24,425 | 0 | 25,000 | |||||||||||||||
Net loss | — | 0 | 0 | (1,000 | ) | (1,000 | ) | |||||||||||||
Balance – March 31, 2021 | 5,750,000 | $ | 575 | $ | 24,425 | $ | (1000 | ) | $ | 24,000 | ||||||||||
Net income | — | 0 | 0 | 1 | 1 | |||||||||||||||
Balance – June 30, 2021 | 5,750,000 | $ | 575 | $ | 24,425 | $ | (999 | ) | $ | 24,001 | ||||||||||
Class A Common Stock subject to possible redemption | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity (Deficit) | ||||||||||||||||||||||
Balance – January 5, 2021 (inception) | — | $ | — | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B common stock to Sponsor | — | — | 5,750,000 | 575 | 24,425 | 0 | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | 0 | 0 | (1,000 | ) | (1,000 | ) | |||||||||||||||||||
Balance – March 31, 2021 | — | $ | — | 5,750,000 | $ | 575 | $ | 24,425 | $ | (1,000 | ) | $ | 24,000 | |||||||||||||||
Net loss | — | — | — | 0 | 0 | 1 | 1 | |||||||||||||||||||||
Balance – June 30, 2021 | — | $ | — | 5,750,000 | $ | 575 | $ | 24,425 | $ | (999 | ) | $ | 24,001 | |||||||||||||||
Sale of 20,000,000 Units, net of underwriting discounts and offering expenses | — | — | — | 0 | 0 | 0 | 0 | |||||||||||||||||||||
Proceed s allocated to Public Warrants | — | — | — | 0 | 12,492,109 | 0 | 12,492,109 | |||||||||||||||||||||
Allocated value of transaction costs to warrants | — | — | — | 0 | (737,120 | ) | 0 | (737,120 | ) | |||||||||||||||||||
Adjustment of carrying value to initial redemption value | — | — | — | 0 | (21,762,173 | ) | (6,470,076 | ) | (28,232,249 | ) | ||||||||||||||||||
Sale of 9,000,000 Private Placement Warrants | — | — | — | 0 | 9,982,754 | 0 | 9,982,754 | |||||||||||||||||||||
Forfeiture of Founder Shares | — | — | (48,033 | ) | (5 | ) | 5 | 0 | 0 | |||||||||||||||||||
Net loss | — | — | — | 0 | 0 | (690,854 | ) | (690,854 | ) | |||||||||||||||||||
Balance – September 30, 2021 | — | $ | — | 5,701,967 | $ | 570 | $ | 0 | $ | (7,161,929 | ) | $ | (7,161,359 | ) | ||||||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (999 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||
Changes in operating assets and liabilities: | ||||
Accrued expenses | 1,000 | |||
Net cash provided by operating activities | 1 | |||
Cash flows from financing activities: | ||||
Proceeds from issuance of common stock to Sponsor | 25,000 | |||
Proceeds from promissory note – related party | 162,637 | |||
Payment of offering costs | (162,637 | ) | ||
Net cash provided by financing activities | 25,000 | |||
Net Change in Cash | 25,001 | |||
Cash – Beginning of period | 0 | |||
Cash – End of period | $ | 25,001 | ||
Non-Cash investing and financing activities: | ||||
Deferred offering costs included in accrued offering costs | $ | 169,054 | ||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (691,853 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Interest earned on marketable securities held in Trust Account | (1,911 | ) | ||
Change in fair value of over-allotment option liability | 61,353 | |||
Fair value of forfeited over-allotment option | (17,445 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses and other current assets | (538,213 | ) | ||
Other receivable – related party | (5,541 | ) | ||
Accrued expenses | 384,624 | |||
Net cash used in operating activities | (808,986 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (231,499,860 | ) | ||
Net cash used in investing activities | (231,499,860 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from issuance of Class B common stock to Sponsor | 25,000 | |||
Proceeds from sale of Units, net of underwriting discounts paid | 223,517,106 | |||
Proceeds from sale of Private Placements Warrants | 9,982,754 | |||
Proceeds from promissory note – related party | 174,060 | |||
Repayment of promissory note – related party | (174,060 | ) | ||
Payment of offering costs | (555,660 | ) | ||
Net cash provided by financing activities | 232,969,200 | |||
Net Change in Cash | 660,354 | |||
Cash – Beginning of period | 0 | |||
Cash – End of period | $ | 660,354 | ||
Non-Cash investing and financing activities: | ||||
Initial value of over-allotment option liability | $ | 211,034 | ||
Elimination of over-allotment option liability | $ | (254,942 | ) | |
Accretion for Class A common stock to redemption amount | $ | 28,969,369 | ||
Deferred underwriting fee payable | $ | 7,982,754 | ||
Forfeiture of Founder Shares | $ | (5 | ) | |
Condensed Balance Sheet as ofSeptember 30 , 2021 (unaudited ) | As Previously Reported | Adjustment | As Restated | |||||||||
OA Liability | $ | 211,034 | $ | (211,034 | ) | $ | 0 | |||||
Total Liabilities | $ | 8,578,412 | $ | (211,034 | ) | $ | 8,367,378 | |||||
Temporary Equity | $ | 231,499,860 | $ | 0 | $ | 231,499,860 | ||||||
Additional Paid inCapital | $ | 0 | $ | 0 | $ | 0 | ||||||
( AccumulatedDeficit) Retained Earnings | $ | (7,372,963 | ) | $ | 211,034 | $ | (7,161,929 | ) | ||||
Total Stockholders’ Equity | $ | (7,372,393 | ) | $ | 211,034 | $ | (7,161,359 | ) | ||||
Condensed Statements of Operations for the period from January 5, 2021 (inception) through September 30, 2021 (unaudited) | ||||||||||||
Net Loss | $ | (647,945 | ) | $ | (43,908 | ) | $ | (691,853 | ) |
Gross proceeds | $ 228,078,680 | |||
Less: | ||||
Proceeds allocated to Public Warrants | (12,492,109 | ) | ||
Class A common stock issuance costs | (12,318,960 | ) | ||
Add: | ||||
Adjustment of carrying value to initial redemption value | 28,232,249 | |||
Class A common stock subject to possible redemption | $ 231,499,860 | |||
Three Months Ended September 30, 2021 | For the Period from January 5, 2021 (Inception) Through September 30, 2020 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net loss per common share | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss, as adjusted | $ | (503,124 | ) | $ | (187,730 | ) | $ | (351,839 | ) | $ | (340,014 | ) | ||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average shares outstanding | 14,565,744 | 5,434,914 | 5,338,839 | 5,159,411 | ||||||||||||
Basic and diluted net loss per ordinary share | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.07 | ) | $ | (0.07 | ) |
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 | September 30, 2021 | ||||||||||
Assets: | ||||||||||||
Marketable securities held in Trust Account | 1 | $ | 231,501,771 |
August 4, 2021 | August 2, 2021 | |||||||
Stock Price | $ | 10.04 | $ | 10.00 | ||||
Exercise Price | $ | 10.00 | $ | 10.00 | ||||
Volatility | 5.00 | % | 5.00 | % | ||||
Term (days) | 43 | 45 | ||||||
Dividend Yield | 0.00 | 0.00 | ||||||
Risk Free Rate-Daily Treasury Yield Curve | 0.05 | % | 0.05 | % |
Over-allotment Option Liability | ||||
Fair value as of January 5, 2021 | $ | 0 | ||
Initial measurement on August 2, 2021 | 211,034 | |||
Change in fair value at August 4, 2021 | 61,353 | |||
Fair value of forfeited over-allotment option at August 4, 2021 | (17,445 | ) | ||
Elimination of over-allotment liability at August 4, 2021 | (254,942 | ) | ||
Fair value as of September 30, 2021 | $ | 0 | ||
* | Filed herewith. |
** | Furnished. |
SOFTWARE ACQUISITION GROUP INC. III | ||||||
Date: | February 14, 2022 | By: | /s/ Jonathan S. Huberman | |||
Name: | Jonathan S. Huberman | |||||
Title: | Chief Executive Officer and Chief Financial Officer | |||||
(Principal Executive and Financial Officer) |