☒ | 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 | 001-41312 | 98-1600571 | ||
(State or other jurisdiction of | (Commission File Number) | (I.R.S. Employer Identification No.) |
375 Park Avenue New York, New York | 10152 | ||||
(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 ordinary share, par value $0.0001 per share, and one-half of one redeemable warrant | SPCMU | The Nasdaq Stock Market LLC | ||
Class A ordinary shares, par value $0.0001 per share | SPCM | The Nasdaq Stock Market LLC | ||
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share, par value $0.0001 per share, at an exercise price of $11.50 per share | SPCMW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 1,453,976 | $ | 25,000 | ||||
Total Current Assets | 1,453,976 | 25,000 | ||||||
Deferred offering costs | 0 | 237,659 | ||||||
Investments held in Trust Account | 266,529,853 | 0 | ||||||
TOTAL ASSETS | $ | 267,983,829 | $ | 262,659 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accrued offering costs and expenses | $ | 400,598 | $ | 80,308 | ||||
Promissory note - related party | 0 | 171,257 | ||||||
Due to related party | 9,000 | 0 | ||||||
Total Current Liabilities | 409,598 | 251,565 | ||||||
Deferred underwriting fee payable | 9,056,250 | 0 | ||||||
Warrant liabilities | 15,640,213 | 0 | ||||||
Total Liabilities | 25,106,061 | 251,565 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; and 0 shares - at redemption value of $10.30 pershare at March 31, 2022 and December 31, 202 1 | 266,512,500 | 0 | ||||||
Shareholders’ Equity (Deficit): | ||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; 0ne issued or outstanding | 0 | 0 | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 0ne issued or outstanding (excluding 25,875,000 and 0shares subject to possible redemption) at March 31, 2022 and December 31, 2021, respectively | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 6,468,750 issued and outstanding | 647 | 647 | ||||||
Additional paid-in capital | 0 | 24,353 | ||||||
Accumulated deficit | (23,635,379 | ) | (13,906 | ) | ||||
Total Shareholders’ Equity (Deficit) | (23,634,732 | ) | 11,094 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY (DEFICIT) | $ | 267,983,829 | $ | 262,659 | ||||
June 30, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 946,452 | $ | 25,000 | ||||
Prepaid expenses | 485,385 | — | ||||||
Total Current Assets | 1,431,837 | 25,000 | ||||||
Deferred offering costs | — | 237,659 | ||||||
Investments held in Trust Account | 266,901,838 | — | ||||||
TOTAL ASSETS | $ | 268,333,675 | $ | 262,659 | ||||
LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS' EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accrued offering costs and expenses | $ | — | $ | 80,308 | ||||
Promissory note - related party | — | 171,257 | ||||||
Related party loans | 66,539 | — | ||||||
Total Current Liabilities | 66,539 | 251,565 | ||||||
Deferred underwriting fee payable | 9,056,250 | — | ||||||
Warrant liabilities | 4,540,000 | — | ||||||
Total Liabilities | 13,662,789 | 251,565 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 25,875,000and 0 shares - at redemption valueat June 30, 2022 and December 31, 2021 , | 266,901,838 | — | ||||||
Shareholders' Equity (Deficit): | ||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; 0ne issued or outstanding | — | — | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 0ne issued or outstanding (excluding 25,875,000 and 0 shares subject to possible redemption) at June 30, 2022 and December 31, 2021, respectively | — | — | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 6,468,750 issued and outstanding | 647 | 647 | ||||||
Additional paid-in capital | — | 24,353 | ||||||
Accumulated deficit | (12,231,599 | ) | (13,906 | ) | ||||
Total Shareholders' Equity (Deficit) | (12,230,952 | ) | 11,094 | |||||
TOTAL LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION AND SHAREHOLDERS' EQUITY (DEFICIT) | $ | 268,333,675 | $ | 262,659 | ||||
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Period From May 4, 2021 (Inception) through June 30, 2021 | ||||||||||||||
Formation and operating costs | $ | 91,077 | $ | 405,470 | $ | 496,547 | $ | 13,906 | ||||||||
Loss from operations | (91,077 | ) | (405,470 | ) | (496,547 | ) | (13,906 | ) | ||||||||
Other income: | ||||||||||||||||
Change in fair value of warrant liabilities | 533,537 | 11,100,213 | 11,633,750 | — | ||||||||||||
Interest earned on investments held in Trust Account | 17,353 | 371,985 | 389,338 | — | ||||||||||||
Total other income | 550,890 | 11,472,198 | 12,023,088 | — | ||||||||||||
Net income | $ | 459,813 | ||||||||||||||
Net income (loss) | $ | 11,066,728 | $ | 11,526,541 | $ | (13,906 | ) | |||||||||
Weighted average shares outstanding, Class A ordinary shares subject to possible redemption | 8,050,000 | 25,875,000 | 17,011,740 | — | ||||||||||||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption | $ | 0.03 | $ | 0.34 | $ | 0.49 | $ | — | ||||||||
Weighted average shares outstanding, Class B non-redeemable ordinary shares | 6,468,750 | 6,468,750 | 6,468,750 | 7,500,000 | (1) | |||||||||||
Basic and diluted net income per share, Class B non-redeemable ordinary shares | $ | 0.03 | $ | 0.34 | $ | 0.49 | $ | (0.00 | ) | |||||||
(1) | This number excludes an aggregate of up to 1,125,000 Class B ordinary shares subject to forfeiture if the over- allotment option is not exercised in full or in part by the underwriters (see Note 5). |
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity (Deficit) | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - January 1, 2022 | 0 | $ | 0 | 6,468,750 | $ | 647 | $ | 24,353 | $ | (13,906 | ) | $ | 11,094 | |||||||||||||||
Sale of 25,875,000 Units, net of underwritting discounts, initial value of public warrants and other offering costs | 25,875,000 | 2,588 | 0 | 0 | 235,766,077 | — | 235,768,665 | |||||||||||||||||||||
Cash paid in excess of fair value of Private Placement Warrants | — | — | — | — | 6,638,196 | — | 6,638,196 | |||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (25,875,000 | ) | (2,588 | ) | — | — | (242,428,626 | ) | (24,081,286 | ) | (266,512,500 | ) | ||||||||||||||||
Net income | — | — | — | — | — | 459,813 | 459,813 | |||||||||||||||||||||
Balance - March 31, 2022 (unaudited) | 0 | $ | 0 | 6,468,750 | $ | 647 | $ | 0 | $ | (23,635,379 | ) | $ | (23,634,732 | ) | ||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2022 | ||||||||||||||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders' Equity (Deficit) | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - January 1, 2022 | — | $ | — | 6,468,750 | $ | 647 | $ | 24,353 | $ | (13,906 | ) | $ | 11,094 | |||||||||||||||
Sale of 25,875,000 Units, net of underwritting discounts, initial value of public warrants and other offering costs | 25,875,000 | 2,588 | — | — | 235,766,077 | — | 235,768,665 | |||||||||||||||||||||
Cash paid in excess of fair value of Private Placement Warrants | — | — | — | — | 6,638,196 | — | 6,638,196 | |||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (25,875,000 | ) | (2,588 | ) | — | — | (242,428,626 | ) | (24,081,286 | ) | (266,512,500 | ) | ||||||||||||||||
Net income | — | — | — | — | — | 459,813 | 459,813 | |||||||||||||||||||||
Balance - March 31, 2022 | — | — | 6,468,750 | 647 | — | (23,635,379 | ) | (23,634,732 | ) | |||||||||||||||||||
Accretion of Class A common Stock to Redemption Value | — | — | — | — | — | (389,338 | ) | (389,338 | ) | |||||||||||||||||||
Adjustment of offering costs previously included in accretio n | — | — | — | — | — | 726,390 | 726,390 | |||||||||||||||||||||
Net income | — | — | — | — | — | 11,066,728 | 11,066,728 | |||||||||||||||||||||
Balance - June 30, 2022 | — | $ | — | 6,468,750 | $ | 647 | $ | — | $ | (12,231,599 | ) | $ | (12,230,952 | ) | ||||||||||||||
PERIOD FROM MAY 4, 2021 (INCEPTION) THROUGH JUNE 30, 2021 | ||||||||||||||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - May 4, 2021 (inception) | — | $ | — | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor (1) | — | — | 8,625,000 | 863 | 24,137 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (13,906 | ) | (13,906 | ) | |||||||||||||||||||
Balance - June 30, 2021 | — | $ | — | 8,625,000 | $ | 863 | $ | 24,137 | $ | (13,906 | ) | $ | 11,094 | |||||||||||||||
(1) | The Class B ordinary shares outstanding include up to 1,125,000 shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 5). |
Six Months Ended June 30, 2022 | Period from May 4, 2021 (Inception) through June 30, 2021 | |||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income | $ | 459,813 | ||||||||||
Adjustment to reconcile net income to net cash used in operating activities: | ||||||||||||
Interest earned on investments held in Trust Account | (17,353 | ) | ||||||||||
Net income (loss) | $ | 11,526,541 | $ | (13,906 | ) | |||||||
Adjustment to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Accrued interest earned on investments held in Trust Account | (185,166 | ) | — | |||||||||
Change in fair value of warrant liabilities | (533,537 | ) | (11,633,750 | ) | — | |||||||
Accrued offering costs and expenses | (13,906 | ) | 13,906 | |||||||||
Changes in operating assets and liabilities | ||||||||||||
Due to related party | 9,000 | |||||||||||
Prepaid expenses | (485,385 | ) | — | |||||||||
Related party loans | 66,539 | — | ||||||||||
Net cash used in operating activities | (82,077 | ) | (725,127 | ) | — | |||||||
Cash Flows from Investing Activities: | ||||||||||||
Investment of cash in Trust Account | (266,512,500 | ) | (266,716,672 | ) | — | |||||||
Net cash used in investing activities | (266,512,500 | ) | (266,716,672 | ) | — | |||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from sale of Units, net of underwriting discounts paid | 253,575,000 | 253,575,000 | — | |||||||||
Proceeds from sale of Private Placement Warrants | 15,437,500 | |||||||||||
Proc e eds from sale of Private Placement Warrants | 15,437,500 | — | ||||||||||
Payment of promissory note - related party | (300,000 | ) | (300,000 | ) | — | |||||||
Payment of offering cost | (688,947 | ) | ||||||||||
Payment of offering costs | (349,249 | ) | — | |||||||||
Proceeds from issuance of Class B ordinary shares to Sponsor | — | 25,000 | ||||||||||
Net cash provided by financing activities | 268,023,553 | 268,363,251 | 25,000 | |||||||||
Net Change in Cash | 1,428,976 | 921,452 | 25,000 | |||||||||
Cash - Beginning of period | 25,000 | 25,000 | — | |||||||||
Cash - End of period | $ | 1,453,976 | $ | 946,452 | $ | 25,000 | ||||||
Non-cash investing and financing activities: | ||||||||||||
Initial classification of Class A common stock subject to possible redemption | $ | 266,512,500 | $ | — | ||||||||
Deferred underwriting fee payable | $ | 9,056,250 | $ | 9,056,250 | $ | — | ||||||
Offering cost included in accrued offering costs and expenses | $ | 320,290 | ||||||||||
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | Period From May 4, 2021 (Inception) through June 30, 2021 | ||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Allocation of net income | $ | 265,578 | $ | 194,235 | $ | 8,853,382 | $ | 2,213,346 | $ | 8,351,040 | $ | 3,175,501 | $ | — | $ | (13,906 | ) | |||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 8,050,000 | 6,468,750 | 25,875,000 | 6,468,750 | 17,011,740 | 6,468,750 | — | 7,500,000 | ||||||||||||||||||||||||
Basic and diluted net income per share | $ | 0.03 | $ | 0.03 | $ | 0.34 | $ | 0.34 | $ | 0.49 | $ | 0.49 | $ | — | $ | (0.00 | ) | |||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Investments held in Trust Account | $ | 266,529,853 | $ | 266,529,853 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Private placement warrants | $ | 8,524,588 | $ | — | $ | — | $ | 8,524,588 | ||||||||
Public warrants | 7,115,625 | — | — | 7,115,625 | ||||||||||||
Total liabilities measured at fair value | $ | 15,640,213 | $ | — | $ | — | $ | 15,640,213 | ||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Investments held in the Trust Account | $ | 266,901,838 | $ | 266,901,838 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Private placement warrants | $ | 2,470,000 | $ | — | $ | 2,470,000 | $ | — | ||||||||
Public warrants | 2,070,000 | 2,070,000 | — | — | ||||||||||||
Total liabilities measured at fair value | $ | 4,540,000 | $ | 2,070,000 | $ | 2,470,000 | $ | — | ||||||||
Risk-free interest rate | 2.41 | % | ||
Time to maturity (years) | 5.59 | |||
Volatility before initial Business Combination | 5.0 | % | ||
Volatility after initial Business Combination | 7.5 | % | ||
Exercise price | $ | 11.50 | ||
Underlying share price | $ | 9.79 | ||
Dividend yield Volatility (private placement warrants) | | 0 7.0 | % % |
Private Placement Warrants | Public Warrants | |||||||
Fair value as of March 4, 2022 (IPO) | $ | 8,799,375 | $ | 7,374,375 | ||||
Change in valuation inputs or other assumptions | (274,787 | ) | (258,750 | ) | ||||
Fair value as of March 31, 2022 | $ | 8,524,588 | $ | 7,115,625 | ||||
Level 3 rollforward | Private Placement Warrants | Public Warrants | ||||||
Fair Value as of March 4, 2022 (IPO) | $ | 8,799,375 | $ | 7,374,375 | ||||
Change in valuation inputs or other assumptions | (274,787 | ) | (258,750 | ) | ||||
Fair Value as of March 31, 2022 | $ | 8,524,588 | $ | 7,115,625 | ||||
Transfer out | (8,524,588 | ) | (7,115,625 | ) | ||||
Fair Value as of June 30, 2022 | $ | — | $ | — | ||||
101.INS | Inline XBRL Instance Document | ||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | 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, as amended, except as shall be expressly set forth by specific reference in such filing. |
SOUND POINT ACQUISITION CORP I, LTD | ||||||
Date: | By: | /s/ David Grill | ||||
Name: | David Grill | |||||
Title: | Chief Financial Officer (Authorized Signatory and Principal Financial Officer) |