☒ | 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 | (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 |
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | (Audited) | (Unaudited) | ||||||||||||||
ASSETS | ||||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 4,386 | $ | 30,103 | $ | 4,186 | $ | 4,311 | ||||||||
Prepaid expenses | 609,967 | 1,096,949 | 343,001 | 495,072 | ||||||||||||
Total current assets | 614,353 | 1,127,052 | 347,187 | 499,383 | ||||||||||||
Investments held in Trust Account | 363,978,513 | 363,951,287 | 364,020,136 | 363,987,687 | ||||||||||||
Total assets | $ | 364,592,866 | $ | 365,078,339 | ||||||||||||
Total Assets | $ | 364,367,323 | $ | 364,487,070 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||||||||||
LIABILITIES , CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ DEFICIT | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 1,615,714 | $ | 58,206 | $ | 696,996 | $ | 645,385 | ||||||||
Due to related party | 1,354,820 | 1,202,797 | ||||||||||||||
Accrued expenses | 289,009 | 98,579 | 628,356 | 579,866 | ||||||||||||
Due to related party | 21,683 | 0 | ||||||||||||||
Total current liabilities | 1,926,406 | 156,785 | 2,680,172 | 2,428,048 | ||||||||||||
Deferred underwriting commissions | 12,738,075 | 12,738,075 | 12,738,075 | 12,738,075 | ||||||||||||
Derivative warrant liabilities | 12,573,087 | 23,995,840 | 6,381,794 | 12,822,204 | ||||||||||||
Total liabilities | 27,237,568 | 36,890,700 | 21,800,041 | 27,988,327 | ||||||||||||
Commitments and Contingencies (Note 6) | 0 | 0 | ||||||||||||||
Class A ordinary shares subject to possible redemption, 36,394,500 shares at redemption value of $10 per share | 363,945,000 | 363,945,000 | ||||||||||||||
Shareholders’ Deficit | ||||||||||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0— | 0— | ||||||||||||||
Class A ordinary shares, $0.0001 par value; 950,000,000 shares authorized; NaN issued or outstanding (excluding 36,394,500 shares subject to possible redemption) | 0 | 0 | ||||||||||||||
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 | 910 | 910 | ||||||||||||
Additional paid-in capital | 0 | 0 | ||||||||||||||
Accumulated deficit | (26,590,612 | ) | (35,758,271 | ) | ||||||||||||
Additional paid-in capital(1) | 0 | 0 | ||||||||||||||
Accumulated deficit (1) | (21,378,628 | ) | (27,447,167 | ) | ||||||||||||
Total shareholders’ deficit | (26,589,702 | ) | (35,757,361 | ) | ||||||||||||
Total shareholders’ deficit (1) | (21,377,718 | ) | (27,446,257 | ) | ||||||||||||
Total Liabilities and Shareholders’ Deficit | $ | 364,592,866 | $ | 365,078,339 | $ | 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 September 30, 2021 | Nine Months Ended September 30, 2021 | For The Period From September 2, 2020 (inception) through September 30, 2020 | ||||||||||
General and administrative expenses | $ | 356,234 | $ | 2,192,319 | $ | 20,033 | ||||||
Administrative expenses - related party | 30,000 | 90,000 | 0 | |||||||||
Loss from operations | (386,234 | ) | (2,282,319 | ) | (20,033 | ) | ||||||
Interest income from investments held in Trust Account | 9,176 | 27,225 | 0 | |||||||||
Change in fair value of derivative warrant liabilities | 8,308,783 | 11,422,753 | 0 | |||||||||
Net Income (Loss) | $ | 7,931,725 | $ | 9,167,659 | $ | (20,033 | ) | |||||
Weighted average shares outstanding of Class A redeemable ordinary shares | 36,394,500 | 36,394,500 | 0 | |||||||||
Basic and diluted net income (loss) per share, Class A | $ | 0.17 | $ | 0.20 | $ | 0.00 | ||||||
Weighted average shares outstanding of Class B non-redeemable ordinary shares | 9,098,625 | 9,098,625 | 9,098,625 | |||||||||
Basic and diluted net income per share, Class B ordinary shares | $ | 0.17 | $ | 0.20 | $ | 0.00 | ||||||
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 | ||||||||||||||||||||
Class B | ||||||||||||||||||||
Shares | Amount | Additional Paid- In Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||
Balance - January 1, 2021 | 9,098,625 | $ | 910 | $ | 0 | $ | (35,758,271 | ) | $ | (35,757,361 | ) | |||||||||
Net income | — | — | 0— | 3,455,249 | 3,455,249 | |||||||||||||||
Balance - March 31, 2021 (unaudited) | 9,098,625 | $ | 910 | $ | 0 | $ | (32,303,022 | ) | $ | (32,302,112 | ) | |||||||||
Net loss | — | — | 0— | (2,219,315 | ) | (2,219,315 | ) | |||||||||||||
Balance - June 30, 2021 (unaudited) | 9,098,625 | $ | 910 | $ | 0 | $ | (34,522,337 | ) | $ | (34,521,427 | ) | |||||||||
Net income | — | — | 0— | 7,931,725 | 7,931,725 | |||||||||||||||
Balance - September 30, 2021 (unaudited) | 9,098,625 | $ | 910 | $ | 0 | $ | (26,590,612 | ) | $ | (26,589,702 | ) | |||||||||
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 | ||||||||||||||||||||
Class B | ||||||||||||||||||||
Shares | Amount | Additional Paid- | Accumulated | Shareholders’ | ||||||||||||||||
In Capital | Deficit | Equity | ||||||||||||||||||
Balance as of September 3, 2020 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of ordinary shares to Sponsor | 9,098,625 | 910 | — | — | 910 | |||||||||||||||
Net loss | — | — | 0— | (20,033 | ) | (20,033 | ) | |||||||||||||
Balance as of September 30, 2020 (unaudited) | 9,098,625 | $ | 910 | $ | 0 | $ | (20,033 | ) | $ | (19,123 | ) | |||||||||
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. |
Nine Months Ended September 30, 2021 | For The Period From September 2, 2020 (inception) through September 30, 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 9,167,659 | $ | (20,033 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of derivative warrant liabilities | (11,422,753 | ) | — | |||||
Interest income from investments held in Trust Account | (27,225 | ) | — | |||||
General and administrative expenses paid by Sponsor in exchange for issuance of Class B ordinary shares | — | 20,033 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 486,981 | — | ||||||
Accounts payable | 1,557,508 | — | ||||||
Accrued expenses | 190,430 | — | ||||||
Net cash used in operating activities | (47,400 | ) | 0 | |||||
Cash Flows from Financing Activities: | ||||||||
Advances from related party | 21,683 | — | ||||||
Net cash provided by financing activities | 21,683 | — | ||||||
Net decrease in cash | (25,717 | ) | — | |||||
Cash - beginning of period | 30,103 | — | ||||||
Cash - end of period | $ | 4,386 | $ | — | ||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||
Deferred offering costs included in accounts payable | $ | — | $ | 30,255 | ||||
Deferred offering costs included in accrued expenses | $ | — | $ | 259,000 | ||||
Deferred offering costs paid through promissory note - related party | $ | — | $ | 206,500 | ||||
Deferred offering costs paid through the issuance of ordinary shares to Sponsor | $ | — | $ | 25,000 | ||||
For the Three | For the Three | |||||||
Months Ended | Months Ended | |||||||
March 31, 2022 | March 31, 2021 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 6,068,539 | $ | 3,455,249 | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Net gain from investments held in Trust Account | (32,449 | ) | (8,975 | ) | ||||
Change in fair value of derivative warrant liabilities | (6,440,410 | ) | (4,762,530 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 152,071 | 164,077 | ||||||
Accounts payable | 51,611 | 1,166,201 | ||||||
Accrued expenses | 48,490 | (60,829 | ) | |||||
Due to related party | 152,023 | 21,280 | ||||||
Net cash used in operating activities | (125 | ) | (25,527 | ) | ||||
Net decrease in cash | (125 | ) | (25,527 | ) | ||||
Cash - beginning of period | 4,311 | 30,103 | ||||||
Cash - end of period | $ | 4,186 | $ | 4,576 | ||||
As of December 31, 2020 | ||||||||||||
As Previously | Revision | |||||||||||
Reported | Adjustment | As Revised | ||||||||||
Balance Sheet | ||||||||||||
Ordinary shares subject to possible redemption | 323,187,630 | 40,757,370 | 363,945,000 | |||||||||
Shareholders’ equity (deficit) | ||||||||||||
Class A ordinary shares - $0.0001 par value | 408 | (408 | ) | 0 | ||||||||
Class B ordinary shares - $0.0001 par value | 910 | 0 | 910 | |||||||||
Additional paid-in capital | 14,641,247 | (14,641,247 | ) | 0 | ||||||||
Accumulated deficit | (9,642,556 | ) | (26,115,715 | ) | (35,758,271 | ) | ||||||
Total shareholders’ equity (deficit) | 5,000,009 | (40,757,370 | ) | (35,757,361 | ) | |||||||
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 | $ | 363,978,513 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public | $ | 8,658,014 | $ | — | $ | — | ||||||
Derivative warrant liabilities - Private | $ | — | $ | 3,915,073 | $ | — |
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 |