☒ | 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 | 85-1144904 | |
(State or Other Jurisdiction of Incorporation) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A common stock, par value $0.0001 per share | WE | The New York Stock Exchange | ||
Warrants, each whole warrant exercisable for one share of Class A common stock | WE WS | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
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2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 18 | |||||
Item 3. | 22 | |||||
Item 4. | 23 | |||||
Item 1. | 23 | |||||
Item 2. | 23 | |||||
Item 6. | 24 |
September 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
Assets: | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 242,155 | $ | 921,049 | $ | 242,155 | $ | 921,049 | ||||||||
Prepaid expenses | 240,705 | 372,412 | 240,705 | 372,412 | ||||||||||||
Total current assets | 482,860 | 1,293,461 | 482,860 | 1,293,461 | ||||||||||||
Investments held in Trust Account | 483,078,641 | 483,227,051 | 483,078,641 | 483,227,051 | ||||||||||||
Total assets | $ | 483,561,501 | $ | 484,520,512 | $ | 483,561,501 | $ | 484,520,512 | ||||||||
Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit: | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 376,731 | $ | 315 | $ | 376,731 | $ | 315 | ||||||||
Accrued expenses | 5,791,175 | 76,695 | 5,791,175 | 76,695 | ||||||||||||
Accrued income tax | 0 | 12,010 | 0 | 12,010 | ||||||||||||
Franchise tax payable | 73,311 | 122,242 | 73,311 | 122,242 | ||||||||||||
Total current liabilities | 6,241,217 | 211,262 | 6,241,217 | 211,262 | ||||||||||||
Deferred underwriting commissions in connection with the initial public offering | 16,905,000 | 16,905,000 | 16,905,000 | 16,905,000 | ||||||||||||
Warrant liabilities | 16,168,533 | 13,292,400 | 16,168,533 | 13,292,400 | ||||||||||||
Total liabilities | 39,314,750 | 30,408,662 | 39,314,750 | 30,408,662 | ||||||||||||
Commitments and Contingencies (Note 5) | 0 | 0 | 0 | 0 | ||||||||||||
Class A common stock subject to possible redemption, $0.0001 par value; 48,300,000 shares at $10.00 per share as of September 30, 2021 and December 31, 2020 | 483,000,000 | 483,000,000 | ||||||||||||||
Class A common stock subject to possible redemption, $0.0001 par value; 48,300,000 shares issued and outstanding at $10.00 per share as of September 30, 2021 and December 31, 2020 | 483,000,000 | 483,000,000 | ||||||||||||||
Stockholders’ Deficit: | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding as of September 30, 2021 and December 31, 2020 | 0— | 0— | 0— | 0— | ||||||||||||
Class A common stock, $0.0001 par value; 87,500,000 shares authorized as of September 30, 2021 and December 31, 2020 | 0 | 0 | 0 | 0 | ||||||||||||
Class B common stock, $0.0001 par value; 12,500,000 shares authorized; 12,075,000 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 1,208 | 1,208 | ||||||||||||||
Class B; no non-redeemable shares issued or outstanding common stock, $0.0001 par value; 12,500,000 shares authorized; 12,075,000 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 1,208 | 1,208 | ||||||||||||||
Accumulated deficit | (38,754,457 | ) | (28,889,358 | ) | (38,754,457 | ) | (28,889,358 | ) | ||||||||
Total stockholders’ deficit | (38,753,249 | ) | (28,888,150 | ) | (38,753,249 | ) | (28,888,150 | ) | ||||||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit | $ | 483,561,501 | $ | 484,520,512 | $ | 483,561,501 | $ | 484,520,512 | ||||||||
For the Three Months Ended | For the Nine Months Ended | For the Period from May 19, 2020 (Inception) | ||||||||||||||
September 30, 2021 | September 30, 2020 | September 30, 2021 | through September 30, 2020 | |||||||||||||
Operating expenses | ||||||||||||||||
General and administrative expenses | $ | 2,815,163 | $ | 92,911 | $ | 6,905,678 | $ | 93,312 | ||||||||
Franchise tax expense | 50,411 | 49,315 | 149,589 | 72,379 | ||||||||||||
Loss from operations | (2,865,574 | ) | (142,226 | ) | (7,055,267 | ) | (165,691 | ) | ||||||||
Change in fair value of warrant liabilities | 9,794,399 | (1,243,733 | ) | (2,876,133 | ) | (1,243,733 | ) | |||||||||
Offering costs associated w ith private placement warrants | — | (9,344 | ) | — | (9,344 | ) | ||||||||||
Net gain from investments held in Trust Account | 6,937 | 83,554 | 66,301 | 83,554 | ||||||||||||
Income (loss) before income tax expense | 6,935,762 | (1,311,749 | ) | (9,865,099 | ) | (1,335,214 | ) | |||||||||
Income tax expense | — | 2,347 | — | 2,347 | ||||||||||||
Net income (loss) | $ | 6,935,762 | $ | (1,314,096 | ) | $ | (9,865,099 | ) | $ | (1,337,561 | ) | |||||
Weighted average shares outstanding of Class A common stock, basic and diluted | 48,300,000 | 28,464,130 | 48,300,000 | 20,458,594 | ||||||||||||
Basic and diluted net income (loss) per share, Class A common stock | $ | 0.11 | $ | (0.03 | ) | $ | (0.16 | ) | $ | (0.04 | ) | |||||
Weighted average shares outstanding of Class B common stock, basic and diluted | 12,075,000 | 11,338,859 | 12,075,000 | 11,102,930 | ||||||||||||
Basic and diluted net income (loss) per share, Class B common stock | $ | 0.11 | $ | (0.03 | ) | $ | (0.16 | ) | $ | (0.04 | ) | |||||
Class B Common Stock | Additional Paid-In | Accumulated | Total Stockholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance - December 31, 2020 | 12,075,000 | $ | 1,208 | $ | 0 | $ | (28,889,358 | ) | $ | (28,888,150 | ) | |||||||||
Net loss | — | — | — | (5,617,146 | ) | (5,617,146 | ) | |||||||||||||
Balance - March 31, 2021 (Unaudited) | 12,075,000 | 1,208 | 0 | (34,506,504 | ) | (34,505,296 | ) | |||||||||||||
Net loss | — | — | — | (11,183,715 | ) | (11,183,715 | ) | |||||||||||||
Balance - June 30, 2021 (Unaudited) | 12,075,000 | 1,208 | 0 | (45,690,219 | ) | (45,689,011 | ) | |||||||||||||
Net income | — | — | — | 6,935,762 | 6,935,762 | |||||||||||||||
Balance - September 30, 2021 (Unaudited) | 12,075,000 | $ | 1,208 | $ | 0 | $ | (38,754,457 | ) | $ | (38,753,249 | ) | |||||||||
Class B Common Stock | Additional Paid-In | Accumulated | Total Stockholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance - December 31, 2020 | 12,075,000 | $ | 1,208 | $ | 0 | $ | (28,889,358 | ) | $ | (28,888,150 | ) | |||||||||
Net loss | — | — | — | (5,617,146 | ) | (5,617,146 | ) | |||||||||||||
Balance - March 31, 2021 (Unaudited) - restated, see Note 2 | 12,075,000 | 1,208 | 0 | (34,506,504 | ) | (34,505,296 | ) | |||||||||||||
Net loss | — | — | — | (11,183,715 | ) | (11,183,715 | ) | |||||||||||||
Balance - June 30, 2021 (Unaudited) - restated, see Note 2 | 12,075,000 | 1,208 | 0 | (45,690,219 | ) | (45,689,011 | ) | |||||||||||||
Net income | — | — | — | 6,935,762 | 6,935,762 | |||||||||||||||
Balance - September 30, 2021 (Unaudited) | 12,075,000 | $ | 1,208 | $ | 0 | $ | (38,754,457 | ) | $ | (38,753,249 | ) | |||||||||
Total | ||||||||||||||||||||
Class B Common Stock | Additional Paid-In | Accumulated | Stockholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Equity (Deficit) | ||||||||||||||||
Balance - May 19, 2020 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of Class B common stock to initial stockholders | 12,075,000 | 1,208 | 23,792 | — | 25,000 | |||||||||||||||
Net loss | — | — | — | (23,465 | ) | (23,465 | ) | |||||||||||||
Balance - June 30, 2020 (Unaudited) | 12,075,000 | $ | 1,208 | $ | 23,792 | $ | (23,465 | ) | $ | 1,535 | ||||||||||
Excess cash received over the fair value of the private warrants | — | — | 3,031,600 | — | 3,031,600 | |||||||||||||||
Offering costs associated with public warrants | (964,454 | ) | — | (964,454 | ) | |||||||||||||||
Accretion on Class A common stock subject to possible redemption amount | — | — | (2,090,938 | ) | (24,079,042 | ) | (26,169,980 | ) | ||||||||||||
Net loss | — | — | — | (1,314,096 | ) | (1,314,096 | ) | |||||||||||||
Balance - September 30, 2020 (Unaudited) | 12,075,000 | $ | 1,208 | $ | 0 | $ | (25,416,603 | ) | $ | (25,415,395 | ) | |||||||||
For the Nine Months Ended September 30, 2021 | For the Period from May 19, 2020 (Inception) through September 30, 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (9,865,099 | ) | $ | (1,337,561 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
General and administrative expenses paid by related party | 0— | 381 | ||||||
Change in fair value of warrant liabilities | 2,876,133 | 1,243,733 | ||||||
Offering costs associated with private placement warrants | 0 | 9,344 | ||||||
Net gain from investments held in Trust Account | (66,301 | ) | (83,554 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 131,707 | (456,593 | ) | |||||
Accounts payable | 376,416 | 6,115 | ||||||
Accrued expenses | 5,714,480 | (5,000 | ) | |||||
Accrued income tax | (12,010 | ) | 2,347 | |||||
Franchise tax payable | (48,931 | ) | 72,379 | |||||
Net cash used in operating activities | (893,605 | ) | (548,409 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Interest released from Trust Account | 214,711 | 0— | ||||||
Cash deposited in Trust Account | 0 | (483,000,000 | ) | |||||
Net cash provided by (used in) investing activities | 214,711 | (483,000,000 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Repayment of note payable to related party | 0 | (195,475 | ) | |||||
Proceeds received from initial public offering, gross | 0 | 483,000,000 | ||||||
Proceeds received from private placement | 0 | 11,660,000 | ||||||
Offering costs paid | — | (9,943,684 | ) | |||||
Net cash provided by financing activities | 0 | 484,520,841 | ||||||
Net (decrease) increase in cash | (678,894 | ) | 972,432 | |||||
Cash - beginning of the period | 921,049 | 0— | ||||||
Cash - end of the period | $ | 242,155 | $ | 972,432 | ||||
Supplemental Cash Flow Information | ||||||||
Cash paid for income taxes | $ | 34,957 | $ | 0— | ||||
Supplemental disclosure of noncash activities: | ||||||||
Offering costs paid by related party in exchange for issuance of Class B common stock | $ | 0— | $ | 25,000 | ||||
Offering costs included in accrued expenses | $ | 0— | $ | 75,000 | ||||
Offering costs included in note payable | $ | 0— | $ | 195,094 | ||||
Deferred underwriting commissions in connection with the initial public offering | $ | 0 | $ | 16,905,000 | ||||
As of March 31 , 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Unaudited Condensed Balance Sheet | ||||||||||||
Total assets | $ | 484,346,355 | 0 | $ | 484,346,355 | |||||||
Total liabilities | $ | 35,851,651 | 0 | $ | 35,851,651 | |||||||
Class A common stock subject to possible redemption | 443,494,700 | 39,505,300 | 483,000,000 | |||||||||
Stockholders’ equity (deficit) | ||||||||||||
Preferred stock | 0 | 0 | 0 | |||||||||
Class A common stock | 395 | (395 | ) | 0 | ||||||||
Class B common stock | 1,208 | 0 | 1,208 | |||||||||
Additional paid-in-capital | 15,425,863 | (15,425,863 | ) | 0 | ||||||||
Accumulated deficit | (10,427,462 | ) | (24,079,042 | ) | (34,506,504 | ) | ||||||
Total stockholders’ equity (deficit) | 5,000,004 | (39,505,300 | ) | (34,505,296 | ) | |||||||
Total liabilities, Class A common stock subject to possible redemption and stockholders’ equity (deficit) | $ | 484,346,355 | $ | 0 | $ | 484,346,355 | ||||||
For the Three Months Ended March 31, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Unaudited Condensed Statement of Operations | ||||||||||||
Net loss | $ | (5,617,146) | $ | 0 | $ | (5,617,146) | ||||||
Weighted average shares outstanding of Class A common stock, basic and diluted | 48,300,000 | 0 | 48,300,000 | |||||||||
Basic and diluted net income (loss) per share of Class A common stock | $ | 0.00 | $ | (0.09 | ) | $ | (0.09 | ) | ||||
Weighted average shares outstanding of Class B common stock, basic and diluted | 12,075,000 | 0 | 12,075,000 | |||||||||
Basic and diluted net loss per share of Class B common stock | $ | (0.47 | ) | $ | 0.38 | $ | (0.09 | ) | ||||
For the Three Months Ended March 31, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Unaudited Condensed Statement of Cash Flows - Supplemental disclosure of noncash activities: | ||||||||||||
Change in fair value of Class A common stock subject to possible redemption | $ | (5,617,140 | ) | $ | 5,617,140 | $ | 0 |
As of June 30, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Unaudited Condensed Balance Sheet | ||||||||||||
Total assets | $ | 483,900,536 | 0 | $ | 483,900,536 | |||||||
Total liabilities | $ | 46,589,547 | 0 | $ | 46,589,547 | |||||||
Class A common stock subject to possible redemption | 432,310,980 | 50,689,020 | 483,000,000 | |||||||||
Stockholders’ equity (deficit) | ||||||||||||
Preferred stock | 0 | 0 | 0 | |||||||||
Class A common stock | 507 | (507 | ) | 0 | ||||||||
Class B common stock | 1,208 | 0 | 1,208 | |||||||||
Additional paid-in-capital | 26,609,471 | (26,609,471 | ) | 0 | ||||||||
Accumulated deficit | (21,611,177 | ) | (24,079,042 | ) | (45,690,219 | ) | ||||||
Total stockholders’ equity (deficit) | 5,000,009 | (50,689,020 | ) | (45,689,011 | ) | |||||||
Total liabilities, Class A common stock subject to possible redemption and stockholders’ equity (deficit) | $ | 483,900,536 | $ | 0 | $ | 483,900,536 | ||||||
For the Three Months Ended June 30, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Unaudited Condensed Statement of Operations | ||||||||||||
Net loss | $ | (11,183,715 | ) | $ | 0 | $ | (11,183,715 | ) | ||||
Weighted average shares outstanding of Class A common stock, basic and diluted | 48,300,000 | 0 | 48,300,000 | |||||||||
Basic and diluted net income (loss) per share of Class A common stock | $ | 0.00 | $ | (0.19 | ) | $ | (0.19 | ) | ||||
Weighted average shares outstanding of Class B common stock, basic and diluted | 12,075,000 | 0 | 12,075,000 | |||||||||
Basic and diluted net loss per share of Class B common stock | $ | (0.93 | ) | $ | 0.74 | $ | (0.19 | ) | ||||
For the Six Months Ended June 30, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Unaudited Condensed Statement of Operations | ||||||||||||
Net loss | $ | (16,800,861 | ) | $ | 0 | $ | (16,800,861 | ) | ||||
Weighted average shares outstanding of Class A common stock, basic and diluted | 48,300,000 | 0 | 48,300,000 | |||||||||
Basic and diluted net income (loss) per share of Class A common stock | $ | 0.00 | $ | (0.28 | ) | $ | (0.28 | ) | ||||
Weighted average shares outstanding of Class B common stock, basic and diluted | 12,075,000 | 0 | 12,075,000 | |||||||||
Basic and diluted net loss per share of Class B common stock | $ | (1.39 | ) | $ | 1.11 | $ | (0.28 | ) | ||||
For the Six Months Ended June 30, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Unaudited Condensed Statement of Cash Flows - Supplemental disclosure of noncash activities: | ||||||||||||
Change in fair value of Class A common stock subject to possible redemption | $ | (16,800,860 | ) | $ | 16,800,860 | $ | 0 |
For the Three Months Ended | For the Nine Months Ended | For the Three Months Ended | For the Nine Months Ended | |||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | September 30, 2021 | September 30, 2021 | |||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Allocation of net income (loss) | $ | 5,548,610 | $ | 1,387,152 | $ | (7,892,080 | ) | $ | (1,973,019 | ) | $ | 5,548,610 | $ | 1,387,152 | $ | (7,892,080 | ) | $ | (1,973,019 | ) | ||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average common stock outstanding, basic and diluted | 48,300,000 | 12,075,000 | 48,300,000 | 12,075,000 | 48,300,000 | 12,075,000 | 48,300,000 | 12,075,000 | ||||||||||||||||||||||||
Basic and diluted net per share of common stock | $ | 0.11 | $ | 0.11 | $ | (0.16 | ) | $ | (0.16 | ) | $ | 0.11 | $ | 0.11 | $ | (0.16 | ) | $ | (0.16 | ) | ||||||||||||
For the Three Months Ended | For the Period from May 19, 2020 (Inception) | |||||||||||||||||||||||||||||||
September 30, 2020 | through September 30, 2020 | |||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Allocation of net loss | $ | (939,743 | ) | $ | (374,353 | ) | $ | (867,025 | ) | $ | (470,536 | ) | ||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average common stock outstanding, basic and diluted | 28,464,130 | 11,338,859 | 20,458,594 | 11,102,930 | ||||||||||||||||||||||||||||
Basic and diluted net loss per share of common stock | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | ||||||||||||||||||||
For the Three Months Ended | For the Period from May 19, 2020 (Inception) | |||||||||||||||
September 30, 2020 | through September 30, 2020 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | $ | (939,743 | ) | $ | (374,353 | ) | $ | (867,025 | ) | $ | (470,536 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average common stock outstanding, basic and diluted | 28,464,130 | 11,338,859 | 20,458,594 | 11,102,930 | ||||||||||||
Basic and diluted net loss per share of common stock | $ | (0.03 | ) | $ | (0.03 | ) | $ | (0.04 | ) | $ | (0.04 | ) | ||||
Gross proceeds received from Initial Public Offering and over-allotment | $ | 483,000,000 | ||
Less: | ||||
Offering costs allocated to Class A common stock | (26,169,980 | ) | ||
Plus: | ||||
Accretion on Class A common stock to redemption value | 26,169,980 | |||
Class A common stock subject to possible redemption | $ | 483,000,000 | ||
Fair Value Measured as of September 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments held in Trust Account - U.S. Treasury Securities | $ | 483,078,641 | $ | — | $ | — | $ | 483,078,641 | ||||||||
Liabilities: | ||||||||||||||||
Warrant liabilities | $ | — | $ | 16,168,533 | $ | — | $ | 16,168,533 |
Fair Value Measured as of December 31, 2020 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments held in Trust Account—U.S. Treasury Securities | $ | 483,227,051 | $ | — | $ | — | $ | 483,227,051 | ||||||||
Liabilities: | ||||||||||||||||
Warrant liabilities | $ | — | $ | 13,292,400 | $ | — | $ | 13,292,400 |
Warrant liabilities at December 31, 2020 | $ | 13,292,400 | ||
Change in fair value of warrant liabilities | 3,342,533 | |||
Warrant liabilities at March 31, 2021 | 16,634,933 | |||
Change in fair value of warrant liabilities | 9,327,999 | |||
Warrant liabilities at June 30, 2021 | 25,962,932 | |||
Change in fair value of warrant liabilities | (9,794,399 | ) | ||
Warrant liabilities at September 30, 2021 | $ | 16,168,533 | ||
* | 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: | WEWORK INC. | |||||
By: | /s/ Benjamin Dunham | |||||
Name: | Benjamin Dunham | |||||
Title: | Chief Financial Officer (Principal Financial Officer) |