☒ | 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 | 85-0525645 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
382 NE 191 Street, #24148 Miami, FL | 33179 | |
(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 and one-third of one Warrant | XPOA.U | The New York Stock Exchange | ||
Class A Common Stock, par value $0.0001 per share | XPOA | The New York Stock Exchange | ||
Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 | XPOA WS | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||
1 | ||||
1 | ||||
2 | ||||
3 | ||||
4 | ||||
5 | ||||
23 | ||||
23 | ||||
Part II. Other Information | ||||
24 | ||||
24 | ||||
24 | ||||
25 | ||||
25 | ||||
25 | ||||
26 | ||||
27 |
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 30,754 | $ | 124,720 | ||||
Prepaid expenses | 123,356 | 176,223 | ||||||
Total Current Assets | 154,110 | 300,943 | ||||||
Cash and marketable securities held in Trust Account | 300,229,704 | 300,183,322 | ||||||
TOTAL ASSETS | $ | 300,383,814 | $ | 300,484,265 | ||||
LIABILITIES, REDEEMABLE COMMON STOCK, AND STOCKHOLDERS’ DEFICIT | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 4,729,547 | $ | 2,889,095 | ||||
Promissory note - related party | 200,000 | 0 | ||||||
Total Current Liabilities | 4,929,547 | 2,889,095 | ||||||
Deferred underwriting fee payable | 10,500,000 | 10,500,000 | ||||||
Warrant liabilities | 12,069,000 | 10,787,400 | ||||||
Total Liabilities | 27,498,547 | 24,176,495 | ||||||
Commitments and Contingencies (Note 6) | 0 | 0 | ||||||
Class A common stock subject to possible redemption, 30,000,000 shares at redemption value at March 31, 2022 and December 31, 2021 | 300,000,000 | 300,000,000 | ||||||
Stockholders’ Deficit | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding | — | — | ||||||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 0ne issued or outstanding | — | — | ||||||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 7,500,000 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 750 | 750 | ||||||
Additional paid-in capital | — | — | ||||||
Accumulated deficit | (27,115,483 | ) | (23,692,980 | ) | ||||
Total Stockholders’ Deficit | (27,114,733 | ) | (23,692,230 | ) | ||||
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ DEFICIT | $ | 300,383,814 | $ | 300,484,265 | ||||
June 30, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 77,404 | $ | 124,720 | ||||
Prepaid expenses | 70,489 | 176,223 | ||||||
Total Current Assets | 147,893 | 300,943 | ||||||
Cash and marketable securities held in Trust Account | 300,626,900 | 300,183,322 | ||||||
TOTAL ASSETS | $ | 300,774,793 | $ | 300,484,265 | ||||
LIABILITIES, REDEEMABLE COMMON STOCK, AND STOCKHOLDERS’ DEFICIT | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 5,291,532 | $ | 2,889,095 | ||||
Income taxes payable | 19,801 | — | ||||||
Promissory note—related party | 420,000 | — | ||||||
Total Current Liabilities | 5,731,333 | 2,889,095 | ||||||
Deferred underwriting fee payable | — | 10,500,000 | ||||||
Warrant liabilities | 6,300,000 | 10,787,400 | ||||||
Total Liabilities | 12,031,333 | 24,176,495 | ||||||
Commitments and Contingencies (Note 6) | 0 | 0 | ||||||
Class A common stock subject to possible redemption, 30,000,000 shares at redemption value at June 30, 2022 and December 31, 2021 | 300,114,082 | 300,000,000 | ||||||
Stockholders’ Deficit | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding | — | — | ||||||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 0ne issued or outstanding (excluding 30,000,000 shares subject to possible redemption at June 30, 2022 and December 31, 2021) | — | — | ||||||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 7,500,000 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 750 | 750 | ||||||
Additional paid-in capital | 10,151,418 | — | ||||||
Accumulated deficit | (21,522,790 | ) | (23,692,980 | ) | ||||
Total Stockholders’ Deficit | (11,370,622 | ) | (23,692,230 | ) | ||||
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ DEFICIT | $ | 300,774,793 | $ | 300,484,265 | ||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating and formation costs | $ | 2,187,285 | $ | 781,872 | $ | 788,202 | $ | 699,331 | $ | 2,975,487 | $ | 1,481,203 | ||||||||||||
Loss from operations | (2,187,285 | ) | (781,872 | ) | (788,202) | (699,331 | ) | (2,975,487 | ) | (1,481,203 | ) | |||||||||||||
Other (expense) income: | ||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest earned on marketable securities held in Trust Account | 48,658 | 58,851 | 378,382 | 12,697 | 427,040 | 71,548 | ||||||||||||||||||
Change in fair value of warrant liabilities | (1,281,600 | ) | 16,120,000 | 5,769,000 | (640,000 | ) | 4,487,400 | 15,480,000 | ||||||||||||||||
Unrealized gain on marketable securities held in Trust Account | (2,276 | ) | 1,041 | |||||||||||||||||||||
Reduction of deferred underwriting fee | 234,500 | — | 234,500 | — | ||||||||||||||||||||
Unrealized gain (loss) on marketable securities held in Trust Account | 18,814 | (7,324 | ) | 16,538 | (6,283 | ) | ||||||||||||||||||
Other (expense) income, net | (1,235,218 | ) | 16,179,892 | |||||||||||||||||||||
Other income (expense), net | 6,400,696 | (634,627 | ) | 5,165,478 | 15,545,265 | |||||||||||||||||||
Income (loss) before provision for income taxes | 5,612,494 | (1,333,958 | ) | 2,189,991 | 14,064,062 | |||||||||||||||||||
Provision for income taxes | (19,801 | ) | — | (19,801 | ) | — | ||||||||||||||||||
Net (loss) income | $ | (3,422,503 | ) | $ | 15,398,020 | |||||||||||||||||||
Net income (loss) | $ | 5,592,693 | $ | (1,333,958 | ) | $ | 2,170,190 | $ | 14,064,062 | |||||||||||||||
Basic and diluted weighted average shares outstanding, Class A common stock | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | 30,000,000 | ||||||||||||||||||
Basic and diluted net (loss) income per share, Class A common stock | $ | (0.09 | ) | $ | 0.41 | $ | 0.15 | $ | (0.04 | ) | $ | 0.06 | $ | 0.38 | ||||||||||
Basic and diluted weighted average shares outstanding, Class B common stock | 7,500,000 | 7,500,000 | 7,500,000 | 7,500,000 | 7,500,000 | 7,500,000 | ||||||||||||||||||
Basic and diluted net (loss) income per share, Class B common stock | $ | (0.09 | ) | $ | 0.41 | $ | 0.15 | $ | (0.04 | ) | $ | 0.06 | $ | 0.38 | ||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance — January 1, 2022 | 0 | $ | 0 | 7,500,000 | $ | 750 | $ | 0 | $ | (23,692,980 | ) | $ | (23,692,230 | ) | ||||||||||||||
Net loss | — | — | — | — | 0 | (3,422,503 | ) | (3,422,503 | ) | |||||||||||||||||||
Balance – March 31, 2022 | 0 | $ | 0 | 7,500,000 | $ | 750 | $ | 0 | $ | (27,115,483 | ) | $ | (27,114,733 | ) | ||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance — January 1, 2021 | 0 | $ | 0 | 7,500,000 | $ | 750 | $ | 0 | $ | (47,938,357 | ) | $ | (47,937,607 | ) | ||||||||||||||
Net income | — | — | — | — | 0 | 15,398,020 | 15,398,020 | |||||||||||||||||||||
Balance – March 31, 2021 | 0 | $ | 0 | 7,500,000 | $ | 750 | $ | 0 | $ | (32,540,337 | ) | $ | (32,539,587 | ) | ||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance — January 1, 2022 | — | $ | — | 7,500,000 | $ | 750 | $ | — | $ | (23,692,980 | ) | $ | (23,692,230 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (3,422,503 | ) | (3,422,503 | ) | |||||||||||||||||||
Balance – March 31, 2022 | — | $ | — | 7,500,000 | $ | 750 | $ | — | $ | (27,115,483 | ) | $ | (27,114,733 | ) | ||||||||||||||
Remeasurement of Class A ordinary shares to redemption amount | — | — | — | — | (114,082 | ) | — | (114,082 | ) | |||||||||||||||||||
Reduction of deferred underwriting fee | — | — | — | — | 10,265,500 | — | 10,265,500 | |||||||||||||||||||||
Net income | — | — | — | — | — | 5,592,693 | 5,592,693 | |||||||||||||||||||||
Balance – June 30, 2022 | — | $ | — | 7,500,000 | $ | 750 | $ | 10,151,418 | $ | (21,522,790 | ) | $ | (11,370,622 | ) | ||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance — January 1, 2021 | — | $ | — | 7,500,000 | $ | 750 | $ | — | $ | (47,938,357 | ) | $ | (47,937,607 | ) | ||||||||||||||
Net income | — | — | — | — | — | 15,398,020 | 15,398,020 | |||||||||||||||||||||
Balance – March 31, 2021 | — | $ | — | 7,500,000 | $ | 750 | $ | — | $ | (32,540,337 | ) | $ | (32,539,587 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (1,333,958 | ) | (1,333,958 | ) | |||||||||||||||||||
Balance – June 30, 2021 | — | $ | — | 7,500,000 | $ | 750 | $ | — | $ | (33,874,295 | ) | $ | (33,873,545 | ) | ||||||||||||||
Three Months Ended March 31, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net (loss) income | $ | (3,422,503 | ) | $ | 15,398,020 | |||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||||||
Net income | $ | 2,170,190 | $ | 14,064,062 | ||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Interest earned on marketable securities held in Trust Account | (39,820 | ) | (58,851 | ) | (427,040 | ) | (71,548 | ) | ||||||||
Change in fair value of warrant liabilities | 1,281,600 | (16,120,000 | ) | (4,487,400 | ) | (15,480,000 | ) | |||||||||
Unrealized gain on marketable securities held in Trust Account | (6,562 | ) | (1,041 | ) | ||||||||||||
Unrealized (gain) loss on marketable securities held in Trust Account | (16,538 | ) | 6,283 | |||||||||||||
Reduction of deferred underwriting fee | (234,500 | ) | — | |||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid expenses | 52,867 | (7,451 | ) | 105,734 | 48,970 | |||||||||||
Income taxes payable | 19,801 | — | ||||||||||||||
Accounts payable and accrued expenses | 1,840,452 | 629,352 | 2,402,437 | 701,110 | ||||||||||||
Net cash used in operating activities | (293,966 | ) | (159,971 | ) | (467,316 | ) | (731,123 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from promissory note - related party | 200,000 | — | ||||||||||||||
Proceeds from promissory note—related party | 420,000 | — | ||||||||||||||
Net cash provided by financing activities | 200,000 | — | 420,000 | — | ||||||||||||
Net Change in Cash | (93,966 | ) | (159,971 | ) | (47,316 | ) | (731,123 | ) | ||||||||
Cash – Beginning of period | 124,720 | 1,084,557 | 124,720 | 1,084,557 | ||||||||||||
�� | ||||||||||||||||
Cash – End of period | $ | 30,754 | $ | 924,586 | $ | 77,404 | $ | 353,434 | ||||||||
Non-cash investing and financing activities: | ||||||||||||||||
Reduction of deferred underwriting fee | (10,265,500 | ) | — | |||||||||||||
Gross proceeds | $ | 300,000,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | $ | (6,600,000 | ) | |
Class A common stock issuance costs | $ | (16,596,320 | ) | |
Plus: | ||||
Accretion of carrying value to redemption value | $ | 23,196,320 | ||
Class A common stock subject to possible redemption | $ | 300,000,000 | ||
Gross proceeds | $ | 300,000,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | $ | (6,600,000 | ) | |
Class A common stock issuance costs | $ | (16,596,320 | ) | |
Plus: | ||||
Accretion of carrying value to redemption value | $ | 23,196,320 | ||
Class A common stock subject to possible redemption at December 31, 2021 and March 31, 2022 | $ | 300,000,000 | ||
Plus: | ||||
Remeasurement of carrying value to redemption value | $ | 114,082 | ||
Class A common stock subject to possible redemption at June 30, 2022 | $ | 300,114,082 | ||
Three Months Ended March 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net (loss) income per common stock | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net (loss) income, as adjusted | $ | (2,738,002 | ) | $ | (684,501 | ) | $ | 12,318,416 | $ | 3,079,604 | ||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average common stock outstanding | 30,000,000 | 7,500,000 | 30,000,000 | 7,500,000 | ||||||||||||
Basic and diluted net (loss) income per common stock | $ | (0.09 | ) | $ | (0.09 | ) | $ | 0.41 | $ | 0.41 |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||
Basic and diluted net income (loss) per common stock | ||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Allocation of net income (loss), as adjusted | $ | 4,474,154 | $ | 1,118,539 | $ | (1,067,166 | ) | $ | (266,792 | ) | $ | 1,736,152 | $ | 434,038 | $ | 11,251,250 | $ | 2,812,812 | ||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 30,000,000 | 7,500,000 | 30,000,000 | 7,500,000 | 30,000,000 | 7,500,000 | 30,000,000 | 7,500,000 | ||||||||||||||||||||||||
Basic and diluted net income (loss) per common stock | $ | 0.15 | $ | 0.15 | $ | (0.04 | ) | $ | (0.04 | ) | $ | 0.06 | $ | 0.06 | $ | 0.38 | $ | 0.38 |
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 the Company’s assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | Level | March 31, 2022 | Level | December 31, 2021 | Level | June 30, 2022 | Level | December 31, 2021 | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Marketable securities held in Trust Account | 1 | $ | 300,229,704 | 1 | $ | 300,183,322 | ||||||||||||||||||||||||||
Cash and marketable securities held in Trust Account | 1 | $ | 300,626,900 | 1 | $ | 300,183,322 | ||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Warrant Liability – Public Warrants | 1 | $ | 6,705,000 | 1 | $ | 5,993,000 | ||||||||||||||||||||||||||
Warrant Liability – Private Placement Warrants | 2 | 5,364,000 | 2 | $ | 4,794,400 | |||||||||||||||||||||||||||
Warrant Liabilities – Public Warrants | 1 | $ | 3,500,000 | 1 | $ | 5,993,000 | ||||||||||||||||||||||||||
Warrant Liabilities – Private Placement Warrants | 2 | 2,800,000 | 2 | $ | 4,794,400 |
* | Filed herewith. |
** | Furnished. |
(1) | Previously filed as an exhibit to our Current Report on Form 8-K filed on |
DPCM CAPITAL, INC. | ||||||
Date: | By: | /s/ Emil Michael | ||||
Name: | Emil Michael | |||||
Title: | Chief Executive Officer | |||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ Ignacio Tzoumas | ||||
Name: | Ignacio Tzoumas | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |