☒ | 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 | 001-40831 | 86-3676785 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS 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 | DSAQ.U | New York Stock Exchange | ||
Class A common stock, par value $0.0001 per share | DSAQ | New York Stock Exchange | ||
Redeemable warrants, each warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | DSAQ.WS | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
1 | |||||
1 | |||||
1 | |||||
2 | |||||
3 | |||||
5 | |||||
18 | |||||
20 | |||||
June 30, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash | $ | 458,156 | $ | 1,041,948 | ||||
Prepaid expenses | 390,208 | 713,140 | ||||||
Total current assets | 848,364 | 1,755,088 | ||||||
Investments held in Trust Account | 234,955,901 | 234,618,018 | ||||||
Total Assets | $ | 235,804,265 | $ | 236,373,106 | ||||
Liabilities, Redeemable Common Stock and Stockholders’ Deficit | ||||||||
Liabilities: | ||||||||
Franchise taxes payable | $ | 34,685 | $ | 60,274 | ||||
Federal income taxes payable | 28,218 | — | ||||||
Due to related party | 667 | 667 | ||||||
Accrued offering costs and expenses | 14,501 | 36,350 | ||||||
Total current liabilities | 78,071 | 97,291 | ||||||
Other liabilitie s | 284,067 | — | ||||||
Warrant liability | 2,320,000 | 11,600,000 | ||||||
Deferred underwriters’ discount | 8,050,000 | 8,050,000 | ||||||
Total Liabilities | 10,732,138 | 19,747,291 | ||||||
Commitments and Contingencies (Note 7) | 0 | 0 | ||||||
Redeemable Class A common stock subject to possible redemption, 23,000,000 shares at redemption value | 234,663,680 | 234,600,000 | ||||||
Stockholders’ Deficit: | ||||||||
Preferred stock, $ 0.0001 par value;1,000,000 shares authorized;0 ne issued and outstanding | — | — | ||||||
Class A common stock, $ 0.0001 par value;380,000,000 shares authorized;0 ne issued or outstanding (excluding23,000,000 shares subject to redemption) | — | — | ||||||
Class B common stock, $ 0.0001 par value;20,000,000 shares authorized;5,750,000 shares issued and outstanding | 575 | 575 | ||||||
Additional paid-in capital | — | — | ||||||
Accumulated deficit | (9,592,128 | ) | (17,974,760 | ) | ||||
Total Stockholders’ Deficit | (9.591,553 | ) | (17,974,185 | ) | ||||
Total Liabilities, Redeemable Common Stock and Stockholders’ Deficit | $ | 235,804,265 | $ | 236,373,106 | ||||
For the three months ended June 30, | For the six months ended June 30, | For the period from March 9, 2021 (inception) through June 30, | ||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Formation and operating costs | $ | 351,290 | $ | — | $ | 1,143,571 | $ | 619 | ||||||||
Loss from operations | $ | (351,290 | ) | — | $ | (1,143,571 | ) | $ | (619 | ) | ||||||
Other income | ||||||||||||||||
Bank interest income | 193 | — | 218 | — | ||||||||||||
Interest on Trust investments | 317,003 | — | 337,883 | — | ||||||||||||
Change in fair value of warrant liability | 3,480,000 | — | 9,280,000 | — | ||||||||||||
Total other income | 3,797,196 | — | 9,618,101 | — | ||||||||||||
Income before provision for income taxes | 3,445,906 | — | 8,474,530 | — | ||||||||||||
Provision for income taxes | (28,218 | ) | — | (28,218 | ) | — | ||||||||||
Net Income (Loss) | $ | 3,417,688 | $ | — | $ | 8,446,312 | $ | (619 | ) | |||||||
Weighted average shares outstanding of Class A common stock | 23,000,000 | — | 23,000,000 | — | ||||||||||||
Basic and diluted net income per share, Class A common stock | $ | 0.12 | $ | — | $ | 0.29 | $ | — | ||||||||
Weighted average shares outstanding of Class B common stock | 5,750,000 | — | 5,750,000 | — | ||||||||||||
Basic and diluted net income per share, Class B common stock | $ | 0.12 | $ | — | $ | 0.29 | $ | — | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash | $ | 709,748 | $ | 1,041,948 | ||||
Prepaid expenses | 529,659 | 713,140 | ||||||
Total current assets | 1,239,407 | 1,755,088 | ||||||
Investments held in Trust Account | 234,638,898 | 234,618,018 | ||||||
Total Assets | $ | 235,878,305 | $ | 236,373,106 | ||||
Liabilities, Redeemable Common Stock and Stockholders’ Deficit | ||||||||
Liabilities: | ||||||||
Franchise taxes payable | $ | 50,000 | $ | 60,274 | ||||
Due to Related Party | 667 | 667 | ||||||
Accrued offering costs and expenses | 323,199 | 36,350 | ||||||
Total current liabilities | 373,866 | 97,291 | ||||||
Warrant liability | 5,800,000 | 11,600,000 | ||||||
Deferred underwriters’ discount | 8,050,000 | 8,050,000 | ||||||
Total Liabilities | 14,223,866 | 19,747,291 | ||||||
Commitments and Contingencies (Note 7) | 0 | 0 | ||||||
Redeemable Class A common stock subject to possible redemption, 23,000,000 shares at redemption value of $10.20 | 234,600,000 | 234,600,000 | ||||||
Stockholders’ Deficit: | ||||||||
Preferred stock, $0.0001 par valu e; 1,000,000 shares authorized; NaNissued and outstanding | 0 | 0 | ||||||
Class A common stock, $0.0001 par value; 380,000,000 shares authorized; NaNissued or outstanding (excluding 23,000,000 shares subject to redemption) | 0 | 0 | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 5,750,000 shares issued and outstanding | 575 | 575 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (12,946,136 | ) | (17,974,760 | ) | ||||
Total Stockholders’ Deficit | (12,945,561 | ) | (17,974,185 | ) | ||||
Total Liabilities, Redeemable Common Stock and Stockholders’ Deficit | $ | 235,878,305 | $ | 236,373,106 | ||||
Class B Common stock | Additional | Accumulated | Total Stockholders’ | |||||||||||||||||
Shares | Amount | Paid-in Capital | Deficit | Deficit | ||||||||||||||||
Balance as of December 31, 2021 | 5,750,000 | $ | 575 | $ | — | $ | (17,974,760 | ) | $ | (17,974,185 | ) | |||||||||
Net income | — | — | — | 5,028,624 | 5,028,624 | |||||||||||||||
Balance as of March 31, 2022 (unaudited) | 5,750,000 | $ | 575 | $ | — | $ | (12,946,136 | ) | $ | (12,945,561 | ) | |||||||||
Accretion of carrying value to redemption value | (63,680 | ) | (63,680 | ) | ||||||||||||||||
Net income | — | — | — | 3,417,688 | 3,417,688 | |||||||||||||||
Balance as of June 30, 2022 (unaudited) | 5,750,000 | $ | 575 | $ | — | $ | (9,592,128 | ) | $ | (9,591,553 | ) | |||||||||
Class B Common stock | Additional | Accumulated | Total Stockholder’s | |||||||||||||||||
Shares | Amount | Paid-in Capital | Deficit | Deficit | ||||||||||||||||
Balance as of March 9, 2021 (inception) | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Net loss | — | — | — | (619 | ) | (619 | ) | |||||||||||||
Balance as of March 31, 2021 (unaudited) | — | $ | — | $ | — | $ | (619 | ) | $ | (619 | ) | |||||||||
Class B common stock issued to Sponsor | 5,750,000 | 575 | 24,425 | — | 25,000 | |||||||||||||||
Net loss | — | — | — | — | — | |||||||||||||||
Balance as of June 30, 2021 (unaudited) | — | $ | 575 | $ | — | $ | (619 | ) | $ | 24,381 | ||||||||||
For the three months ended March 31, 2022 | For the period from March 9, 2021 (inception) through March 31, 2021 | |||||||
Formation and operating costs | $ | 792,281 | $ | 619 | ||||
Loss from operations | $ | (792,281 | ) | (619 | ) | |||
Other Income | — | — | ||||||
Bank interest income | 25 | 0 | ||||||
Interest on Trust investments | 20,880 | 0 | ||||||
Change in fair value of warrant liability | 5,800,000 | 0 | ||||||
Total other income | 5,820,905 | 0 | ||||||
Net Income (Loss) | $ | 5,028,624 | | $ | (619 | ) | ||
Weighted average shares outstanding of Class A common stock | 23,000,000 | 0 | ||||||
Basic and diluted net income per share, Class A common stock | $ | 0.17 | $ | 0 | ||||
Weighted average shares outstanding of Class B common stock | 5,750,000 | 0 | ||||||
Basic and diluted net income (loss) per share, Class B common stock | $ | 0.17 | $ | 0 | ||||
For the six months ended June 30, | For the Period from March 9, 2021 (Inception) through June 30, | |||||||
2022 | 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 8,446,312 | $ | (619 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of warrant liability | (9,280,000 | ) | — | |||||
Interest earned on investments held in Trust Account | (337,883 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid assets | 322,932 | — | ||||||
Taxes payable | 2,629 | — | ||||||
Accrued offering costs and expenses | 262,218 | 619 | ||||||
Net cash used in operating activitie | (583,792 | ) | — | |||||
Cash flows from financing activities: | ||||||||
Proceeds from sale of common stock to initial stockholders | — | 25,000 | ||||||
Net cash provided by financing activities | — | 25,000 | ||||||
Net change in cash | (583,792 | ) | 25,000 | |||||
Cash, beginning of the period | 1,041,948 | — | ||||||
Cash, end of the period | $ | 458,156 | 25,000 | |||||
Supplemental disclosure of non-cash investing and financing activities: | ||||||||
Deferred offering costs included in accrued offering costs and expenses | — | 105,000 | ||||||
Accretion of carrying value to redemption value | 63,680 | — | ||||||
Deferred offering costs paid by sponsor under the promissory note | — | 25,000 | ||||||
Class B Common stock | Additional | Accumulated | Total Stockholders’ | |||||||||||||||||
Shares | Amount | Paid-in Capital | Deficit | Deficit | ||||||||||||||||
Balance as of December 31, 2021 | 5,750,000 | $ | 575 | $ | 0 | $ | (17,974,760 | ) | $ | (17,974,185 | ) | |||||||||
Net income | 0 | 0 | 0 | 5,028,624 | 5,028,624 | |||||||||||||||
Balance as of March 31, 2022 (unaudited) | 5,750,000 | $ | 575 | $ | 0 | $ | (12,946,136 | ) | $ | (12,945,561 | ) | |||||||||
Class B Common stock | Additional | Accumulated | Total Stockholder’s | |||||||||||||||||
Shares | Amount | Paid-in Capital | Deficit | Deficit | ||||||||||||||||
Balance as of March 9, 2021 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Net loss | 0 | 0 | 0 | (619 | ) | (619 | ) | |||||||||||||
Balance as of March 31, 2021 (unaudited) | 0 | $ | 0 | $ | 0 | $ | (619 | ) | $ | (619 | ) | |||||||||
For the three months ended March 31, 2022 | For the Period from March 9, 2021 (Inception) through March 31, 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 5,028,624 | $ | (619 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of warrant liability | (5,800,000 | ) | 0 | |||||
Interest earned on investments held in Trust Account | (20,880 | ) | 0 | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid assets | 183,481 | 0 | ||||||
Taxes payable | (10,274 | ) | 0 | |||||
Accrued offering costs and expenses | 286,849 | 619 | ||||||
Net cash used in operating activities | (332,200 | ) | 0 | |||||
Net change in cash | (332,200 | ) | 0 | |||||
Cash, beginning of the period | 1,041,948 | 0 | ||||||
Cash, end of the period | $ | 709,748 | $ | 0 | ||||
For the three months ended June 30, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per share of common stock: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 2,683,206 | $ | 670,802 | $ | — | $ | — | ||||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 23,000,000 | 5,750,000 | — | — | ||||||||||||
Basic and diluted net income per common stock | $ | 0.12 | $ | 0.12 | $ | — | $ | — |
For the three months ended March 31, 2022 | For the period from March 9, 2021 (inception) through March 31, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per share of common stock: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 4,022,899 | $ | 1,005,725 | $ | 0 | $ | (619 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 23,000,000 | 5,750,000 | 0 | 0 | ||||||||||||
Basic and diluted net income (loss) per common stock | $ | 0.17 | $ | 0.17 | $ | 0 | $ | 0 | ||||||||
For the six months ended June 30, | For the period from March 9, 2021 (inception) through June 30, | |||||||||||||||
2022 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per share of common stock: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 6,706,106 | $ | 1,676,526 | $ | — | $ | (619 | ) | |||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 23,000,000 | 5,750,000 | — | — | ||||||||||||
Basic and diluted net income per common stock | $ | 0.29 | $ | 0.29 | $ | — | $ | — |
Gross proceeds from the Public Offering | $ | 234,600,000 | $ | 234,600,000 | ||||
Less: | ||||||||
Proceeds allocated to Public Warrants | (8,740,000 | ) | (8,740,000 | ) | ||||
Common stock issuance costs | (12,634,977 | ) | (12,634,977 | ) | ||||
21,374,977 | ||||||||
Contingently redeemable common stock at December 31, 2021 | $ | 234,600,000 | ||||||
Plus: | ||||||||
Accretion of carrying value to redemption value | 21,374,977 | 63,680 | ||||||
Contingently redeemable common stock | $ | 234,600,000 | ||||||
Contingently redeemable common stock at June 30, 2022 | $ | 234,663,680 |
• | if, and only if, the closing price of the common stock equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant for any 20 trading days within a 30-trading day period endingthree trading days before the Company sends the notice of redemption to the warrant holders. |
Amortized Cost and Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value as of December 31, 2021 | |||||||||||||
Cash | $ | 898 | $ | — | $ | — | $ | 898 | ||||||||
U.S. Treasury Securities | 234,617,120 | — | (9,623 | ) | 234,607,497 | |||||||||||
$ | 234,618,018 | $ | — | $ | (9,623 | ) | $ | 234,608,395 |
* | 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. |
DIRECT SELLING ACQUISITION CORP. | ||||||
Date: | /s/ Dave Wentz | |||||
Dave Wentz | ||||||
Chief Executive Officer |