☒ | 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 | 98-1624542 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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, one Redeemable Warrant to acquire one-half of one Class A Ordinary Shares, and one Right to acquireone-tenth of one Class A Ordinary Share | ATAKU | The Nasdaq Stock Market LLC | ||
Class A Ordinary Share, par value $0.0001 per share | ATAK | The Nasdaq Stock Market LLC | ||
Redeemable Warrants, exercisable for Class A Ordinary Shares at an exercise price of $11.50 per share | ATAKW | The Nasdaq Stock Market LLC | ||
Rights to one-tenth of one Class A Ordinary Share | ATAKR | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
AURORA TECHNOLOGY ACQUISITION CORP.
FORMMARCH 31,SEPTEMBER 30, 2022
TABLE OF CONTENTS
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1
Item | 1. Interim Financial Statements. |
March 31, 2022 | December 31, 2021 | September 30, 2022 | December 31, 2021 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash | $ | 593,773 | $ | 65,373 | $ | 257,120 | $ | 65,373 | ||||||||
Prepaid expenses – current | 503,567 | — | 432,070 | — | ||||||||||||
Total Current Assets | 1,097,340 | 65,373 | 689,190 | 65,373 | ||||||||||||
Non-current assets | ||||||||||||||||
Cash and marketable securities held in Trust Account | 204,020,000 | — | 205,175,816 | — | ||||||||||||
Prepaid expenses – non-current | 165,023 | — | ||||||||||||||
Deferred offering costs | — | 307,402 | — | 307,402 | ||||||||||||
Total Non-current Assets | 204,185,023 | 307,402 | 205,175,816 | 307,402 | ||||||||||||
Total Assets | $ | 205,282,363 | $ | 372,775 | $ | 205,865,006 | $ | 372,775 | ||||||||
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable and accrued expenses | $ | 212,020 | $ | 9,947 | $ | 91,222 | $ | 9,947 | ||||||||
Accrued offering costs | 103,884 | 104,990 | 64,512 | 104,990 | ||||||||||||
Promissory note – related party | — | 242,801 | — | 242,801 | ||||||||||||
Total Current Liabilities | 315,904 | 357,738 | 155,734 | 357,738 | ||||||||||||
Non-Current liabilities | ||||||||||||||||
Warrant Liability | 2,143,952 | — | 533,000 | — | ||||||||||||
Deferred underwriter fee payable | 7,070,000 | — | 7,070,000 | — | ||||||||||||
Total Non-current Liabilities | 9,213,952 | — | 7,603,000 | — | ||||||||||||
Total Liabilities | 9,529,856 | 357,738 | 7,758,734 | 357,738 | ||||||||||||
Commitments and Contingencies (Note 8) | 0 | 0 | ||||||||||||||
Class A ordinary shares subject to possible redemption; $0.0001 par value; 500,000,000 shares authorized; 20,200,000 and 0 shares issued and outstanding at redemption value of $10.10per share at March 31, 2022 and December 31, 2021, respectively | 204,020,000 | — | ||||||||||||||
Shareholders’ (Deficit) Equity | ||||||||||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; 0ne issued and outstanding | — | — | ||||||||||||||
Class A ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 303,000 and 0 shares issued and outstanding (excluding 20,200,000and 0 shares subject to possible redemption) at March 31, 2022 and December 31, 2021, respectively | 30 | — | ||||||||||||||
Class B ordinary shares, $0.0001 par value, 50,000,000 shares authorized; 5,050,000 and 5,750,000 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 505 | 575 | ||||||||||||||
Class A ordinary shares subject to possible redemption; $0.0001 par value; 500,000,000 shares authorized; 20,200,000 and no shares issued and outstanding subject to possible redemption at September 30, 2022 and December 31, 2021, respectively | 205,175,816 | — | ||||||||||||||
Shareholders’ Equity (Deficit) | ||||||||||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued and outstanding | — | — | ||||||||||||||
Class A ordinary shares, $0.0001 par value, 500,000,000 shares authorized; 303,000 and 0 shares issued and outstanding (excluding 20,200,000 and no shares subject to possible redemption) at September 30, 2022 and December 31, 2021, respectively | 30 | — | ||||||||||||||
Class B ordinary shares, $0.0001 par value, 50,000,000 shares authorized; 5,050,000 and 5,750,000 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively | 505 | 575 | ||||||||||||||
Additional paid-in capital | — | 24,425 | — | 24,425 | ||||||||||||
Accumulated deficit | (8,268,028 | ) | (9,963 | ) | (7,070,079 | ) | (9,963 | ) | ||||||||
Total Shareholders’ (Deficit) Equity | (8,267,493 | ) | 15,037 | (7,069,544 | ) | 15,037 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | $ | 205,282,363 | $ | 372,775 | $ | 205,865,006 | $ | 372,775 | ||||||||
For the Three Months Ended September 30, 2022 | For the Nine Months Ended September 30, 2022 | For the Period from August 6, 2021 (Inception) Through September 30, 2021 | ||||||||||||||
Formation and operating costs | $ | 797,398 | $ | 219,330 | $ | 1,210,401 | $ | 9,947 | ||||||||
Loss from operations | (797,398 | ) | (219,330 | ) | (1,210,401 | ) | (9,947 | ) | ||||||||
Other income : | ||||||||||||||||
Other income: | ||||||||||||||||
Change in fair value of warrant liability | 3,636,595 | 471,500 | 5,247,547 | — | ||||||||||||
Gain on extinguishment of over-allotment liability | 258,440 | — | 258,440 | — | ||||||||||||
Dividend income on marketable securities held in Trust Account | 902,675 | 1,155,816 | — | |||||||||||||
Other income , net | 3,895,035 | |||||||||||||||
Other income, net | 1,374,175 | 6,661,803 | — | |||||||||||||
Net income | $ | 3,097,637 | ||||||||||||||
Net income (loss) | $ | 1,154,845 | $ | 5,451,402 | $ | (9,947 | ) | |||||||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares subject to possible redemption | 11,446,667 | 20,200,000 | 17,314,286 | — | ||||||||||||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption | $ | 0.19 | $ | 0.05 | $ | 0.24 | — | |||||||||
Basic and diluted weighted average shares outstanding, non-redeemable ordinary shares | 5,200,033 | 5,353,000 | 5,302,571 | 5,000,000 | ||||||||||||
Basic and diluted net income per share, non-redeemable ordinary shares | $ | 0.19 | $ | 0.05 | $ | 0.24 | (0.00 | ) | ||||||||
Class A Ordinary Shares Subject to Possible Redemption | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity (Deficit) | Class A Ordinary Shares Subject to Possible Redemption | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – January 1, 2022 | — | $ | — | — | $ | — | 5,750,000 | $ | 575 | $ | 24,425 | $ | (9,963 | ) | $ | 15,037 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - January 1, 2022 | — | — | — | — | 5,750,000 | 575 | 24,425 | (9,963 | ) | 15,037 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Class A ordinary shares | 20,200,000 | 174,013,413 | — | — | — | — | — | — | — | 20,200,000 | 174,013,413 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurement of Class A ordinary shares to redemption value | — | 30,006,587 | — | — | — | — | (18,650,885 | ) | (11,355,702 | ) | (30,006,587 | ) | — | 30,006,587 | — | — | — | — | (18,650,885 | ) | (11,355,702 | ) | (30,006,587 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||
Forfeiture of Class B shares issued to Sponsor | — | — | — | — | (700,000 | ) | (70 | ) | 70 | — | — | — | — | — | (700,000 | ) | (70 | ) | 70 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Representative Shares | — | — | 303,000 | 30 | — | — | 3,029,970 | — | 3,030,000 | — | — | 303,000 | 30 | — | — | 3,029,970 | — | 3,030,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rights underlying the Units | — | — | — | — | — | — | 15,596,420 | — | 15,596,420 | — | — | — | — | — | — | 15,596,420 | — | 15,596,420 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 3,097,637 | 3,097,637 | — | — | — | — | — | — | — | 3,097,637 | 3,097,637 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2022 (unaudited) | 20,200,000 | $ | 204,020,000 | 303,000 | $ | 30 | 5,050,000 | $ | 505 | $ | — | $ | (8,268,028 | ) | $ | (8,267,493 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - March 31, 2022 (unaudited) | 20,200,000 | 204,020,000 | 303,000 | 30 | 5,050,000 | 505 | — | (8,268,028 | ) | (8,267,493 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurement of Class A ordinary shares to redemption value | — | 253,141 | — | — | — | — | — | (253,141 | ) | (253,141 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 1,198,920 | 1,198,920 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - June 30, 2022 (unaudited) | 20,200,000 | 204,273,141 | 303,000 | 30 | 5,050,000 | 505 | — | (7,322,249 | ) | (7,321,714 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurement of Class A ordinary shares to redemption value | — | 902,675 | — | — | — | — | — | (902,675 | ) | (902,675 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 1,154,845 | 1,154,845 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – September 30, 2022 (unaudited) | 20,200,000 | 205,175,816 | 303,000 | 30 | 5,050,000 | 505 | — | (7,070,079 | ) | (7,069,544 | ) |
Class A Ordinary Shares Subject to Possible Redemption | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||
Balance – August 6, 2021 (inception) | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance of Class B ordinary | ||||||||||||||||||||||||||||||||||||
Shares to Sponsor | — | — | — | — | 5,750,000 | 575 | 24,425 | — | 25,000 | |||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | (9,947 | ) | (9,947 | ) | |||||||||||||||||||||||||
Balance as of September 30, 2021 (unaudited) | — | — | — | — | 5,750,000 | 575 | (9,947 | ) | 15,053 |
Cash Flows from Operating Activities: | ||||
Net income | $ | 3,097,637 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Allocation of deferred offering costs for warrant liability | 516,747 | |||
Change in fair value of warrant liability | (3,636,595 | ) | ||
Gain on extinguishment of OA liability | (258,440 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (668,590 | ) | ||
Accounts payable and accrued expenses | 202,073 | |||
Net cash used in operating activities | (747,168 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (204,020,000 | ) | ||
Net cash used in investing activities | (204,020,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from issuance of Class A ordinary shares to Sponsor | 202,000,000 | |||
Payment of underwriting fee | (2,525,000 | ) | ||
Payment of Promissory Note | (242,801 | ) | ||
Payment of deferred offering costs | (406,631 | ) | ||
Proceeds from sale of Private Warrants | 6,470,000 | |||
Net cash provided by financing activities | 205,295,568 | |||
Net Change in Cash | 528,400 | |||
Cash – Beginning | 65,373 | |||
Cash – Ending | $ | 593,773 | ||
Non-Cash Investing and Financing Activities: | ||||
Initial measurement of Class A ordinary shares subject to possible redemption | $ | 174,013,413 | ||
Initial measurement of public warrants and private placement warrants | $ | 5,780,547 | ||
Deferred underwriting fee payable | $ | 7,070,000 | ||
Remeasurement of Class A ordinary shares subject to possible redemption | $ | 30,006,587 | ||
Forfeiture of Founder Shares | $ | (70 | ) | |
Issuance of Representative Shares | $ | 30 | ||
Deferred offering costs included in accrued offering costs | $ | 103,884 |
Nine Months Ended September 30, 2022 | For the Period From August 6, 2021 (Inception) Through September 30, 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | 5,451,402 | (9,947 | ) | |||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Allocation of deferred offering costs for warrant liability | 516,746 | — | ||||||
Change in fair value of warrant liability | (5,247,547 | ) | — | |||||
Gain on extinguishment of OA liability | (258,440 | ) | — | |||||
Dividend income on marketable securities held in Trust Account | (1,155,816 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (432,070 | ) | — | |||||
Accounts payable and accrued expenses | 81,275 | 9,947 | ||||||
Net cash used in operating activities | (1,044,450 | ) | — | |||||
Cash Flows from Investing Activities: | ||||||||
Investment of cash in Trust Account | 204,020,000 | — | ||||||
Net cash used in investing activities | (204,020,000 | ) | — | |||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from issuance of Class A ordinary shares to Sponsor | 202,000,000 | — | ||||||
Payment of underwriting fee | (2,525,000 | ) | — | |||||
Proceeds from sale of Private Warrants | 6,470,000 | — | ||||||
Payment of Promissory Note | (242,801 | ) | — | |||||
Payment of offering costs | (446,002 | ) | — | |||||
Net cash provided by financing activities | 205,256,197 | — | ||||||
Net Change in Cash | 191,747 | — | ||||||
Cash – Beginning | 65,373 | — | ||||||
Cash – Ending | $ | 257,120 | — | |||||
Non-Cash Investing and Financing Activities: | ||||||||
Initial measurement of Class A ordinary shares subject to possible redemption | $ | 174,013,413 | — | |||||
Initial measurement of public warrants and private placement warrants | $ | 5,780,547 | — | |||||
Deferred underwriting fee payable | $ | 7,070,000 | — | |||||
Remeasurement of Class A ordinary shares subject to possible redemption | $ | 31,162,403 | — | |||||
Forfeiture of Founder Shares | $ | (70 | ) | — | ||||
Issuance of Representative Shares | $ | 30 | — | |||||
Deferred offering costs included in accrued offering costs | $ | 64,512 | 49,156 | |||||
Non-cash borrowings against the promissory note | $ | — | 25,000 | |||||
Deferred offering costs paid by Sponsor in exchange for issuance of Class B ordinary shares | $ | — | 25,000 |
Gross proceeds from initial public offering | $ | 202,000,000 | ||
Less: | ||||
Proceeds allocated to public warrants | (3,521,870 | ) | ||
Offering costs allocated to Class A ordinary shares subject to possible redemptio n | (13,079,620 | ) | ||
Fair value allocated to rights | (15,596,420 | ) | ||
Plus: | ||||
Proceeds allocated to private warrants | 4,211,323 | |||
Re-measurement of Class A ordinary shares subject to possible redemption | 30,006,587 | |||
Class A ordinary shares subject to possible redemption, March 31, 2022 | $ | 204,020,000 | ||
Gross proceeds from initial public offering | $ | 202,000,000 | ||
Less: | ||||
Proceeds allocated to public warrants | (3,521,870 | ) | ||
Offering costs allocated to Class A ordinary shares subject to possible redemption | (13,079,620 | ) | ||
Fair value allocated to rights | (15,596,420 | ) | ||
Plus: | ||||
Proceeds allocated to private warrants | 4,211,323 | |||
Re-measurement of Class A ordinary shares subject to possible redemption | 31,162,403 | |||
Class A ordinary shares subject to possible redemption, September 30, 2022 | $ | 205,175,816 | ||
Three Months Ended March 31, 2022 | Three Months Ended September 30, 2022 | |||||||
Class A ordinary shares subject to possible redemption | ||||||||
Numerator: Income attributable to Class A ordinary shares subject to possible redemption | ||||||||
Net income | $ | 2,130,009 | $ | 912,921 | ||||
Net income attributable to Class A ordinary shares subject to possible redemption | $ | 2,130,009 | $ | 912,921 | ||||
Denominator: Weighted average Class A ordinary shares subject to possible redemption | ||||||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares subject to possible redemption | 11,446,667 | 20,200,000 | ||||||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption | $ | 0.19 | $ | 0.05 | ||||
Non-Redeemable ordinary shares | ||||||||
Numerator: Net income | ||||||||
Net income | $ | 967,628 | $ | 241,924 | ||||
Net income attributable to non-redeemable Class A and Class B ordinary shares | $ | 967,628 | $ | 241,924 | ||||
Denominator: Weighted average non-redeemable ordinary shares | ||||||||
Basic and diluted weighted average shares outstanding, non-redeemable ordinary shares | 5,200,033 | 5,353,000 | ||||||
Basic and diluted net income per share, non-redeemable ordinary shares | $ | 0.19 | $ | 0.05 | ||||
Nine Months Ended September 30, 2022 | ||||
Class A ordinary shares subject to possible redemption | ||||
Numerator: Income attributable to Class A ordinary shares subject to possible redemption | ||||
Net income | $ | 4,173,309 | ||
Net income attributable to Class A ordinary shares subject to possible redemption | $ | 4,173,309 | ||
Denominator: Weighted average Class A ordinary shares subject to possible redemption | ||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares subject to possible redemption | 17,314,286 | |||
Basic and diluted net income per share, Class A ordinary shares subject to possible redemption | $ | 0.24 | ||
Non-Redeemable ordinary shares | ||||
Numerator: Net income | ||||
Net income | $ | 1,278,093 | ||
Net income attributable to non-redeemable Class A and Class B ordinary shares | $ | 1,278,093 | ||
Denominator: Weighted average non-redeemable ordinary shares | ||||
Basic and diluted weighted average shares outstanding, non-redeemable ordinary shares | 5,302,571 | |||
Basic and diluted net income per share, non-redeemable ordinary shares | $ | 0.24 | ||
Public Warrants | Private Placement Warrants | Warrant Liability | ||||||||||
Derivative warrant liabilities at December 31, 2021 | $ | — | $ | — | $ | — | ||||||
Initial fair value at issuance of public and private placement warrants | 3,521,870 | 2,258,677 | 5,780,547 | |||||||||
Change in fair value | (1,905,870 | ) | (1,730,725 | ) | (3,636,595 | ) | ||||||
Transfer of public warrants to Level 1 measurement | (1,616,000 | ) | — | (1,616,000 | ) | |||||||
Level 3 derivative warrant liabilities as of March 31, 2022 | $ | — | $ | 527,952 | $ | 527,952 | ||||||
Public Warrants | Private Placement Warrants | Warrant Liability | ||||||||||
Derivative warrant liabilities at December 31, 2021 | $ | — | $ | — | $ | — | ||||||
Initial fair value at issuance of public and private placement warrants | 3,521,870 | 2,258,677 | 5,780,547 | |||||||||
Change in fair value | (1,905,870 | ) | (1,730,725 | ) | (3,636,595 | ) | ||||||
Transfer of public warrants to Level 1 measurement | (1,616,000 | ) | — | (1,616,000 | ) | |||||||
Level 3 derivative warrant liabilities as of March 31, 2022 | — | 527,952 | 527,952 | |||||||||
Change in fair value | — | (280,952 | ) | (280,952 | ) | |||||||
Level 3 derivative warrant liabilities as of June 30, 2022 | — | 247,000 | 247,000 | |||||||||
Change in fair value | — | (118,000 | ) | (118,000 | ) | |||||||
Level 3 derivative warrant liabilities as of September 30, 2022 | $ | — | $ | 129,000 | $ | 129,000 | ||||||
(Level 1) | (Level 2) | (Level 3) | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash and marketable securities held in trust account | $ | 204,020,000 | $ | — | $ | — | $ | 205,175,816 | $ | — | $ | — | ||||||||||||
Liabilities | ||||||||||||||||||||||||
Public Warrants | $ | 1,616,000 | $ | — | $ | — | $ | 404,000 | $ | — | $ | — | ||||||||||||
Private Placement Warrants | $ | — | $ | — | $ | 527,952 | $ | — | $ | — | $ | 129,000 |
Public Warrants | Private Placement Warrants | Total Derivative Warrant Liability | ||||||||||
Fair value at August 6, 2021 (inception) | — | — | — | |||||||||
Derivative warrant liabilities as of December 31, 2021 | $ | — | �� | $ | — | $ | — | |||||
Initial fair value at issuance | 3,521,870 | 2,258,677 | 5,780,547 | |||||||||
Change in fair value | (1,905,870 | ) | (1,730,725 | ) | (3,636,595 | ) | ||||||
Derivative warrant liabilities as of March 31, 2022 | $ | 1,616,000 | $ | 527,952 | $ | 2,143,952 | ||||||
Public Warrants | Private Placement Warrants | Total Derivative Warrant Liability | ||||||||||
Fair value at August 6, 2021 (inception) | — | — | — | |||||||||
Derivative warrant liabilities as of December 31, 2021 | $ | — | $ | — | $ | — | ||||||
Initial fair value at issuance | 3,521,870 | 2,258,677 | 5,780,547 | |||||||||
Change in fair value | (1,905,870 | ) | (1,730,725 | ) | (3,636,595 | ) | ||||||
Derivative warrant liabilities as of March 31, 2022 | $ | 1,616,000 | $ | 527,952 | $ | 2,143,952 | ||||||
Change in fair value | (858,500 | ) | (280,952 | ) | (1,139,452 | ) | ||||||
Derivative warrant liabilities as of June 30, 2022 | $ | 757,500 | $ | 247,000 | $ | 1,004,500 | ||||||
Change in fair value | (353,500 | ) | (118,000 | ) | (471,500 | ) | ||||||
Derivative warrant liabilities as of September 30, 2022 | $ | 404,000 | $ | 129,000 | $ | 533,000 | ||||||
Private Placement Warrants | ||||||||
March 31, | ||||||||
Input | 2022 | Private Placement Warrants September 30, 2022 | ||||||
Ordinary share price | $ | 9.86 | $ | 10.02 | ||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Risk-free rate of interest | 2.40 | % | 4.00 | % | ||||
Volatility | 1.92 | % | 0.00 | % | ||||
Term | 5.84 | 5.34 | ||||||
Warrant to buy one share (unadjusted for the probability of dissolution) | $ | 0.08 | $ | 0.02 | ||||
Dividend yield | 0.00 | % | 0.00 | % |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
References in this quarterly report on Form
Special Note Regarding Forward-Looking Statements
This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act’), that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s registration statement and prospectus for the IPO (as defined below) filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Overview
We are Cayman Islands exempted company incorporated on August 6, 2021 for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more target businesses. While we may pursue an initial business combination target in any business, industry or geographical location, we intend to focus our search on targets founded by Asian or Asian American entrepreneurs who are building a global enterprise supported by forward thinking vision and innovative technology in predictable growth businesses with substantial revenue potential in frontier technologies including but not limited to artificial intelligence, blockchain, quantum computing, and electric vehicles. We intend to effectuate our initial business combination using cash from the proceeds of the IPO (as defined below) and the private placement of Private Placement Warrants (as defined below), our capital stock, debt or a combination of cash, stock and debt.
On February 9, 2022, we consummated our initial public offering (the “IPO”) of 20,200,000 of our units (the “Units”) which includes the partial exercise of the underwriters’ over-allotment option. Each Unit consisted of one Class A ordinary share, one redeemable warrant entitling the holder to purchase
On March 17, 2022, we announced that the holders of the Units may elect to separately trade the Class A ordinary shares, Public Warrants and rights included in the Units, commencing on March 21, 2022. Any Units not separated continue to trade on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbol “ATAKU.” Any underlying Class A Ordinary Shares, Public Warrants and Rights that are separated trade on the Nasdaq under the symbols “ATAK,” “ATAKW” and “ATAKR,” respectively.
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At March 31,September 30, 2022, we had cash of $593,773,$257,120, prepaids of $668,590,$432,070, and cash held in a Trust Account of $204,020,000,$205,175,816, current liabilities of $315,904,$155,734, deferred underwriting commission payable of $7,070,000 and $2,143,952$533,000 of warrant liabilities. Further, we expect to continue to incur significant costs in the pursuit of our acquisition plans.
Results of Operations
We have neither engaged in any operations nor generated any revenues to date. Our only activities from August 6, 2021 (inception) through March 31,September 30, 2022 were organizational activities, those necessary to prepare for the IPO, described below, and after the IPO, identifying a target company for our initial business combination. We do not expect to generate any operating revenues until after the completion of our initial business combination. We generate
For the three months ended March 31,September 30, 2022, we had net income of $3,097,637,$1,154,845, which consists of formation and operating expenses of $797,398,$219,330, offset by a gain of $3,636,595$471,500 for the change in fair value of the warrant liability and a gain of $902,675 for dividend income on marketable securities held in the Trust Account.
For the nine months ended September 30, 2022, we had net income of $5,451,402, which consists of formation and operating expenses of $1,210,401, offset by a gain of $5,247,547 for the change in fair value of the warrant liability, a gain of $258,440 foron the extinguishment of the over-allotment liability.
Liquidity and Capital Resources
On February 9, 2022, we consummated our IPO of 20,200,000 of Units, which includes the partial exercise of the underwriters’ over-allotment option. Each Unit consists of one Class A ordinary share, one Public Warrant entitling the holder to purchase
Simultaneously with the consummation of the IPO, we consummated the private placement (“Private Placement”) of 6,470,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant, generating gross proceeds of $6,470,000. The Private Placement Warrants were sold to the Sponsor. The Private Placement Warrants are identical to the Public Warrants sold in the IPO as part of the Units, except that the Private Warrants are
Following the closing of the IPO and the private placement of Private Placement Warrants, an aggregate amount of $204,020,000 has been placed in the trust account (the “Trust Account”) established in connection with the IPO. Transaction costs amounted to $29,192,787 consisting of $2,525,000 of underwriting fees, $7,070,000 of deferred underwriting fees, over-allotment option liability of $258,440, $3,030,000 for issuance of representative shares, $15,596,420 fair value of rights underlying the Units, and $712,927 of actual offering costs. In addition, $1,468,333 of cash was held outside of the Trust Account, which is available for the payment of offering costs and for working capital purposes. As a result of the underwriters’ partial exercise of the over-allotment option, 50,000 Class B ordinary shares are no longer subject to forfeiture.
As of March 31,September 30, 2022, we had marketable securities held in the Trust Account of $204,020,000$205,175,816 consisting of money market funds which invest U.S. Treasury securities. Interest income on the balance in the Trust Account may be used by us to pay taxes. Through March 31, 2021,September 30, 2022, we have not withdrawn any interest earned on the Trust Account.
For the threenine months March 31,ended September 30, 2022, net cash used in operating activities was $747,168.$1,044,450. Net income of $3,097,637$5,451,402 was affected by offering costs allocation of $516,746, a change in the fair value of our warrant liability of $3,636,595,$5,247,547, dividend income on marketable securities held in Trust Account of $1,155,816, gain on extinguishment of the over-allotment liability of $258,440, an increase in prepaid assets of $668,590,$432,070, offset by an increase in accounts payable and accrued expenses of $202,073.
For the threenine months March 31,ended September 30, 2022, net cash used in investing activities was $204,020,000 for our investment in the Trust Account.
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For the threenine months March 31,ended September 30, 2022, net provided by in financing activities was $205,295,568$205,256,197 primarily from the sale of the Units and Private Placement Warrants in the amount of $205,945,000, net of underwriting discounts as well as receipt of the related party receivable of $22,199.$205,945,000. This was offset by the $265,000$242,801 repayment of a related party promissory note, and payment of $406,631 in deferred offering costs which includes a decrease in accrued offering costs of $1,106.
We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (less income taxes payable), to complete our initial business combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our initial business combination, the remaining proceeds held in the Trust Account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.
As of March 31,September 30, 2022, we had cash of $593,773$257,120 outside the Trust Account. We intend to use the funds held outside the Trust Account primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete our initial business combination.
In order to fund working capital deficiencies or finance transaction costs in connection with initial business combination, the Sponsor, or certain of our officers and directors or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete initial business combination, we would repay such loaned amounts. In the event that the initial business combination does not close, we may use a portion of the working capital held outside the Trust Account to repay such loaned amounts but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into private placement warrant at a price of $1.00 per private placement warrant, at the option of the lender. The private placement warrants would be identical to the Private Placement Warrants.
We do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business. However, if our estimate of the costs of identifying a target business, undertaking
Off-Balance
We have no obligations, assets or liabilities, which would be considered
Contractual obligations
We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than an agreement to pay the Sponsor a monthly fee of $10,000 for office space, utilities and secretarial and administrative support. We began incurring these fees on February 9, 2022 and will continue to incur these fees monthly until the earlier of the completion of the initial business combination and our liquidation.
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The underwriter of the IPO is entitled to a deferred discount of $0.35 per Unit, or $7,070,000 in the aggregate. The deferred discount will become payable to the underwriter from the amounts held in the Trust Account solely in the event that we complete a Business Combination, subject to the terms of the underwriting agreement.
Critical Accounting Policies
The preparation of condensed financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following critical accounting policies:
Warrant Liabilities
We account for the warrants underlying the Units and the private placement warrants in accordance with the guidance contained in ASC 815 under which the public warrants and the private placement warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Under ASC
Class A Ordinary Shares Subject to Possible Redemption
The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480. Class A ordinary shares subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, Class A ordinary shares are classified as shareholders’ equity. Our Class A ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at March 31,September 30, 2022, Class A ordinary shares subject to possible redemption is presented at redemption value as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet.
Net Income (Loss) per Ordinary Share
Net loss per share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during the period. Ordinary shares subject to possible redemption at March 31,September 30, 2022, which are not currently redeemable and are not redeemable at fair value, have been excluded from the calculation of basic net loss per ordinary share since such shares, if redeemed, only participate in their pro rata share of the trust account earnings. The Company has not considered the effect of the warrants sold in the initial public offering and the private placement to purchase an aggregate of 6,470,000 private placement warrants in the calculation of diluted loss per share, since the exercise of the warrants is contingent upon the occurrence of future events and the inclusion of such warrants would be anti-dilutive. As a result, diluted net loss per ordinary share is the same as basic net loss per ordinary share for the periods presented.
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The Company’s statement of operations includes a presentation of net income (loss) per ordinary share subject to possible redemption and allocates the net income (loss) into the two classes of shares in calculating net earnings (loss) per ordinary share, basic and diluted. For redeemable Class A ordinary shares, net earnings (loss) per ordinary share is calculated by dividing the net loss by the weighted average number of Class A ordinary shares subject to possible redemption outstanding since original issuance. For
Recent Accounting Standards
In August 2020, the Financial Accounting Standards Board issued ASU
Our management does not believe that there are any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our balance sheet.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
As of March 31,September 30, 2022, we were not subject to any market or interest rate risk. Following the consummation of our IPO, the net proceeds of our IPO, including amounts in the Trust Account, have been invested in U.S. government treasury bills, notes or bonds with a maturity of 180 days or less or in certain money market funds that invest solely in U.S. treasuries. Due to the short-term nature of these investments, we believe there will be no associated material exposure to interest rate risk.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Under the supervision and with the participation of our management, including our co-principal executive officers and principal financial and accounting officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)15d- 15(e) under the Exchange Act) as of the end of the fiscal quarter ended March 31,September 30, 2022. Based on this evaluation, our principal executive officer and principal financial and accounting officer have concluded that during the period covered by this Quarterly Report, our disclosure controls and procedures were not effective due to a material weakness in our internal controls over financial reporting, specifically those surrounding accrued expenses and accounting for complex financial instruments. In light of the material weakness, we performed additional analysis as deemed necessary to ensure that our financial statements were prepared in accordance with U.S. generally accepted accounting principles. Accordingly, management believes that the financial statements included in this Quarterly Report on Form 10-Q present fairly in all material respects our financial position, results of operations and cash flows for the periods presented.
Remediation Activities
Following the determination of the material weakness, we implemented a remediation plan to enhance our processes for identifying and appropriately applying applicable accounting requirements for complex financial instruments. We plan to continue to enhance our review procedures of evaluating and implementing the accounting standards that apply to our financial statements, including through additional analyses by our personnel and third-party professionals with whom we consult regarding complex financial instruments. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects.
Changes in Internal Controls over Financial Reporting
Other than as described above, there was no change in our internal control over financial reporting that occurred during the period ended March 31, 2022September 30,2022 covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II—OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 1A. Risk Factors
As of the date of this Quarterly Report, except as set forth below, there have been no material changes to the risk factors described in our final prospectus filed with the SEC on February 7, 2022. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.
Changes in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our business, including our ability to negotiate and complete our initial business combination, and results of operations.
We are subject to laws and regulations enacted by national, regional and local governments. In particular, we are required to comply with certain SEC and other legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our business, investments and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business, including our ability to negotiate and complete an initial business combination, and results of operations.
On March 30, 2022, the SEC issued proposed rules relating to, among other items, enhancing disclosures in business combination transactions involving special purpose acquisition companies (“SPACs”) and private operating companies; amending the financial statement requirements applicable to transactions involving shell companies; effectively eliminating the safe harbor relating to the use of projections in SEC filings in connection with proposed business combination transactions; increasing the potential liability of certain participants in proposed business combination transactions; and the extent to which SPACs could become subject to regulation under the Investment Company Act of 1940. These rules, if adopted, whether in the form proposed or in revised form, may materially adversely affect our ability to negotiate and complete our initial business combination and may increase the costs and time related thereto.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information
None.
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Item 6. Exhibits
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report:
No. | Description of Exhibit | |
31.1* | ||
31.2* | ||
32.1* | Certification of Principal Executive Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2* | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS* | Inline XBRL Instance | |
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 Labels 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) |
* | Filed herewith. |
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SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934, as amended, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
AURORA TECHNOLOGY ACQUISITION CORP. | ||||||
Date: | By: | /s/ Zachary Wang | ||||
Name: | Zachary Wang | |||||
Title: | Chief Executive Officer | |||||
Date: | By: | /s/ Yida Gao | ||||
Name: | Yida Gao | |||||
Title: | Chief Financial Officer |
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