☒ | 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 | 001-40914 | 86-2438985 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||
100 Springhouse Drive, Suite 204 Collegeville, | 19426 | |||
(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 share of Class A common stock, $0.0001 par value, one right, and one-half of one redeemable warrant | FEXDU | The Nasdaq Stock Market LLC | ||
Class A Common stock, par value $0.0001 per share | FEXD | The Nasdaq Stock Market LLC | ||
Rights included as part of the units Warrants, each whole warrant exercisable for | FEXDR | The Nasdaq Stock Market LLC | ||
one share of Class A common stock at an exercise price of $11.50 per share | FEXDW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page No. | ||||||
1 | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 5. | ||||||
Item 6. | ||||||
Item 1. | Financial Information |
The accompanying notes are an integral part of these condensed financial statement 1 |
Three months ended March 31, 2022 | From March 5, 2021 (inception) to March 31, 2021 | |||||||
Operating Expenses: | ||||||||
Formation and Operating Costs | $ | 205,943 | $ | 851 | ||||
Total operating expenses | 205,943 | 851 | ||||||
Other Income (Expenses): | ||||||||
Change in fair value of derivative warrant liabilities | 1,708,740 | 0 | ||||||
Change in fair value of derivative forward purchase liability | (161,031 | ) | 0 | |||||
Income from investments held in Trust Account | 11,696 | 0 | ||||||
Total other income (expenses), net | 1,559,405 | 0 | ||||||
Net income (loss) | $ | 1,353,462 | $ | (851 | ) | |||
Basic & diluted net loss per share (Class A) | $ | 0.09 | $ | 0 | ||||
Weighted average number of ordinary shares-basic and diluted (Class A) | 11,557,500 | 0 | ||||||
Basic & diluted net loss per share (Class B) | $ | 0.09 | $ | (0.00 | ) | |||
Weighted average number of ordinary shares-basic and diluted (Class B) 1 | 2,875,000 | 2,500,000 |
1. | For the period from March 5, 2021 (inception) to March 31, 2021, this excludes an aggregate of 375,000 shares of common stock subject to forfeiture to the extent that the underwriters’ over-allotment was not exercised in full or in part. |
Common Stock | ||||||||||||||||||||||||||||
Class A | Class B | Additional Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Share | Amount | |||||||||||||||||||||||||
Balance, March 5, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Share issuance – Class B 1 | — | — | 2,875,000 | 288 | 24,712 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (851 | ) | (851 | ) | |||||||||||||||||||
March 31, 2021 | 0 | $ | 0 | 2,875,000 | $ | 288 | $ | 24,712 | $ | (851 | ) | $ | 24,149 | |||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
Class A | Class B | Additional Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Share | Amount | |||||||||||||||||||||||||
Balance, December 31, 2021 | 57,500 | $ | 6 | 2,875,000 | $ | 288 | $ | 0 | $ | (8,610,118 | ) | $ | (8,609,824 | ) | ||||||||||||||
Net income | — | — | — | — | — | 1,353,462 | 1,353,462 | |||||||||||||||||||||
March 31, 2022 | 57,500 | $ | 6 | 2,875,000 | $ | 288 | $ | 0 | $ | (7,256,656 | ) | $ | (7,256,362 | ) |
September 30, 2021 ( U naudited) | ||||
ASSETS | ||||
Current assets | ||||
Cash | $ | 491 | ||
Deferred offering costs | 198,981 | |||
Total Current Asset s | 199,472 | |||
Total Assets | $ | 199,472 | ||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Current l iabilities | ||||
Accrued e xpenses | $ | 114,987 | ||
Promissory note – related party | 60,418 | |||
Total Liabilities | 175,405 | |||
Stockholders’ Equity: | ||||
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0 | |||
Class A Common Stock, $0.0001 par value; 200,000,000 shares authorized; 0ne issued and outstanding | 0 | |||
Class B Common Stock, par value $0.0001; 20,000,000 shares authorized; 2,875,000 issued and outstanding (1) | 288 | |||
Additional paid-in capital | 24,712 | |||
Accumulated deficit | (933 | ) | ||
Total Stockholders’ Equity | 24,067 | |||
Total Liabilities and Stockholders’ Equity | $ | 199,472 | ||
Includes an aggregate of 375,000 shares of common stock subject to forfeiture to the extent that the underwriters’ over-allotment is not exercised in full or in part. |
For the three months ended September 30, 2021 | For the period from March 5, 2021 (inception) through September 30, 2021 | |||||||
(Unaudited) | (Unaudited) | |||||||
Operating Expenses: | ||||||||
General & administrative expenses | $ | — | $ | 933 | ||||
Total operating expenses | — | 933 | ||||||
Net loss | $ | — | $ | (933 | ) | |||
Basic & diluted net loss per share | $ | (0.00 | ) | $ | (0.00 | ) | ||
Weighted average number of ordinary shares-basic and diluted (1) | 2,500,000 | 2,500,000 | ||||||
Three months ended March 31, 2022 | From March 5, 2021 (inception) to March 31, 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income ( loss) | $ | 1,353,462 | $ | (851 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Change in fair value of derivative forward purchase liability | 161,031 | 0 | ||||||
Change in fair value of warrant liabilities | (1,708,740 | ) | 0 | |||||
Income from investments held in Trust Account | (11,696 | ) | 0 | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (39,712 | ) | 0 | |||||
Accounts payable and accrued liabilities | (168,971 | ) | 846 | |||||
Net cash used in operating activities | $ | (414,626 | ) | $ | (5 | ) | ||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common shares to Sponsor | 0 | 25,000 | ||||||
Payment of offering costs | 0 | (20,000 | ) | |||||
Net cash provided by financing activities | 0 | 5,000 | ||||||
Net increase in cash | (414,626 | ) | 4,995 | |||||
Cash, beginning of period | 612,750 | 0 | ||||||
Cash, end of period | $ | 198,124 | $ | 4,995 | ||||
Supplemental Disclosures of Noncash Financing Activities | ||||||||
Accrued deferred offering costs | $ | 0 | $ | 80,000 |
Shares | Shares amount | Additional paid-in capital | Accumulated Deficit | Total equity | ||||||||||||||||
Balance, March 5, 2021 (inception) | 0 | $ | 0 | $ | 0— | $ | 0— | $ | 0— | |||||||||||
Net los s | — | — | — | (851 | ) | (851 | ) | |||||||||||||
Share issuance (1) | 2,875,000 | 288 | 24,712 | — | 25,000 | |||||||||||||||
Balance, March 15, 202 1 | 2,875,000 | $ | 288 | $ | 24,712 | $ | (851 | ) | $ | 24,149 | ||||||||||
Net loss | — | — | — | (82 | ) | (82 | ) | |||||||||||||
Balance, June 30, 2021 (Unaudited) | 2,875,000 | $ | 288 | $ | 24,712 | $ | (933 | ) | $ | 24,067 | ||||||||||
Net loss | — | — | — | 0 | 0 | |||||||||||||||
Balance, September 30, 2021 (Unaudited) | 2,875,000 | $ | 288 | $ | 24,712 | $ | (933 | ) | $ | 24,067 | ||||||||||
For the period from March 5, 2021 (inception) through September 30, 2021 (Unaudited) | ||||
Cash flows from operating activities: | ||||
Net l oss | $ | (933 | ) | |
Changes in operating assets and liabilities | ||||
Change in accrued expenses | 847 | |||
Net cash used in operating activities | (86 | ) | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of common shares to Sponsor | 25,000 | |||
Proceeds from promissory note from related party | 60,418 | |||
Payment of offering costs | (84,841 | ) | ||
Net cash provided by financing activities | 577 | |||
Net increase in cash | 491 | |||
Cash, beginning of period | 0 | |||
Cash, end of period | $ | 491 | ||
Supplemental Disclosures of Noncash Financing Activities | ||||
Accrued deferred offering costs | $ | 114,140 |
Gross proceeds from IPO | 115,000,000 | |||
Less: | ||||
Proceeds allocated to Public Warrants | (1,380,000 | ) | ||
Class A ordinary share issuance costs | (6,309,800 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | 8,839,800 | |||
Class a ordinary shares subject to redemption | 116,150,000 | |||
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Public Warrants | $ | 0 | $ | 0 | $ | 1,092,500 | ||||||
Private Placement Warrants | 0 | 0 | 904,858 | |||||||||
Warrant Liability | 0 | 0 | 1,997,358 | |||||||||
Forward Purchase Agreement Liability | 0 | 0 | 1,887,939 | |||||||||
Total | $ | 0 | $ | 0 | $ | 3,885,297 | ||||||
Inputs | Public Warrant | Private Placement Warrant | Forward Purchase Units | |||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 10.00 | ||||||
Volatility | 6.5 | % | 6.5 | % | 6.5 | % | ||||||
Expected term | 5.75 years | 5.75 years | 0.75 year | |||||||||
Risk-free rate | 1.33 | % | 1.33 | % | 0.09 | % | ||||||
Probability of acquisition | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Dividend yield | 0 | % | 0 | % | 0 | % |
Inputs | Public Warrant | Private Placement Warrant | Forward Purchase Units | |||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 10.00 | ||||||
Volatility | 8.4 | % | 8.4 | % | 8.4 | % | ||||||
Expected term | | 5.56 years | | 5.56 years | 0.56 year | |||||||
Risk-free rate | 1.30 | % | 1.30 | % | 0.21 | % | ||||||
Probability of acquisition | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Dividend yield | 0 | % | 0 | % | 0 | % |
Inputs | Private Placement Warrant | Forward Purchase Units | ||||||
Exercise price | $ | 11.50 | $ | 10.00 | ||||
Volatility | 5.2 | % | 5.2 | % | ||||
Expected term | 5.31 years | 0.31 year | ||||||
Risk-free rate | 2.39 | % | 0.64 | % | ||||
Probability of acquisition | 60.0 | % | 100.0 | % | ||||
Dividend yield | 0 | % | 0 | % |
Private Placement | Public Warrant | Total Warrant Liability | Forward Purchase Agreement | |||||||||||||
Fair value as of December 31, 2021 | $ | 1,521,098 | 2,185,000 | 3,706,098 | $ | 1,726,908 | ||||||||||
Change in fair value of warrant liabilities | (616,240 | ) | (1,092,500 | ) | (1,708,740 | ) | 161,031 | |||||||||
Fair value as of March 31, 2022 | $ | 904,858 | 1,092,500 | 1,997,358 | $ | 1,887,939 | ||||||||||
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. |
* | Filed herewith. |
** | Furnished. |
FINTECH ECOSYSTEM DEVELOPMENT CORP. | ||||||
Date: | By: | /s/ Jenny Junkeer | ||||
Name: | Jenny Junkeer | |||||
Title: | Chief Financial Officer |