UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM ~~10-Q/A~~

~~Amendment No.1~~10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended ~~September 30, 2021~~March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-39769

HUMANCO ACQUISITION CORP.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		85-3357217
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

P.O. Box 90608

Austin, TX 78709

(Address of principal executive offices)

(512) 535-0440

(Issuer’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Units, each consisting of one share of Class A Common Stock, $0.0001 par value, and one-half of one redeemable Warrant	HMCOU	The Nasdaq Stock Market LLC
Class A Common Stock, par value $0.0001 per share	HMCO	The Nasdaq Stock Market LLC
Redeemable Warrants, each whole Warrant exercisable for one share of Class A Common Stock, each at an exercise price of $11.50 per share	HCMOW	The Nasdaq Stock Market LLC

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ☐

As of ~~November 12, 2021,~~May 16, 2022, there were 31,250,000 shares of Class A common stock, $0.0001 par value, and 7,187,500 shares of Class B common stock, $0.0001 par value, issued and outstanding.

~~EXPLANATORY NOTE~~

HumanCo Acquisition Corp. (the “Company,” “we”, “our” or “us”) is filing this Quarterly Report on Form 10-Q/A (“Amendment No. 1” or the “Amendment”), or this Quarterly Report, to amend our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, originally filed with the Securities and Exchange Commission, or the SEC, on November 12, 2021 (the “Original Filing”), to restate certain of our financial statements (collectively, the “Original Financial Statements”) as a result of a reclassification error related to temporary equity and permanent equity described in more detail below.

~~Restatement Background~~

In connection with the preparation of the Company’s financial statements as of September 30, 2021, the Company’s management, in consultation with its advisors, identified an error made in the Original Financial Statements, arising from the manner in which, as of the closing of the Company’s initial public offering, the Company valued its Class A common stock subject to possible redemption. The Company previously determined the value of such Class A common stock to be equal to the redemption value of such shares of Class A common stock, after taking into consideration the terms of the Company’s Amended and Restated Certificate of Incorporation, under which a redemption cannot result in net tangible assets being less than $5,000,001. Management has now determined, after consultation with its advisors, that the shares of Class A common stock underlying the units issued during the initial public offering can be redeemed or become redeemable subject to the occurrence of future events considered to be outside the Company’s control. Therefore, management has concluded that the redemption value of its shares of Class A common stock subject to possible redemption should reflect the possible redemption of all shares of Class A common stock. As a result, management has noted a reclassification error related to temporary equity and permanent equity. This has resulted in a restatement of the initial carrying value of the shares of Class A common stock subject to possible redemption, with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and shares of Class A common stock.

As a result, on November 24, 2021, the Company's management and the Audit Committee of the Company's board of directors (the "Audit Committee"), after consultation with management, concluded that the Original Financial Statements should no longer be relied upon and are to be restated in order to correct the reclassification error. The Company’s accounting related to temporary equity and permanent equity did not have any effect on the Company’s previously reported investments held in trust or cash.

The financial information that has been previously filed or otherwise reported is superseded by the information in this Amendment, and the financial statements and related financial information contained in such previously filed reports should no longer be relied upon.

~~The restatement is more fully described in Note 2 of the notes to the condensed financial statements included herein.~~

In addition, as required by Rule 12b-15 under the Securities Exchange Act of 1934, as amended, new certifications by the Company’s principal executive officer and principal financial officer are filed as exhibits to this Amendment under Item 6 of Part II hereof.

~~Internal Control and Disclosure Controls Considerations~~

In connection with the restatement, the Company's management has re-evaluated the effectiveness of the Company's disclosure controls and procedures and internal control over financial reporting as of September 30, 2021. The Company's management has concluded that the Company's disclosure controls and procedures and internal control over financial reporting were not effective as of September 30, 2021, due to material weaknesses in internal control over financial reporting solely related to the accounting for temporary equity and permanent equity described above.

~~Items Amended In This Amendment~~

For the convenience of the reader, this Amendment sets forth the Original Filing in its entirety, as amended to reflect the restatement. No attempt has been made in this Amendment to update other disclosures presented in the Original Filing, except as required to reflect the effects of the restatement. The following items have been amended as a result of the restatement:

●

~~Part I – Item 1. Condensed Financial Statements.~~

●

~~Part I – Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.~~

●

~~Part I – Item 4. Controls and Procedures.~~

●

~~Part II – Item 1A. Risk Factors.~~

●

~~Part I1 – Item 6. Exhibits.~~

Except as described above, this Amendment does not amend, update or change any other items or disclosures contained in the Original Filing, and accordingly, this Amendment does not reflect or purport to reflect any information or events occurring after the original filing date or modify or update those disclosures affected by subsequent events. Accordingly, this Amendment should be read in conjunction with the Original Filing and the Company’s other filings with the SEC. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Original Filing.

This Amendment does not reflect adjustments for events occurring after November 12, 2021, the date of the filing of the Original Filing, except to the extent they are otherwise required to be included and discussed herein and did not substantively modify or update the disclosures herein other than as required to reflect the adjustments described above. This Amendment should be read in conjunction with the Company’s Current Reports on Form 8-K filed with the SEC since the date of filing of the Original Filing and all of the Company’s filings after the date hereof.

PART I - FINANCIAL INFORMATION

Item 1.

Interim Financial Statements.

HUMANCO ACQUISITION CORP.

CONDENSED BALANCE SHEETS

	September 30, 2021			December 31, 2020			March 31, 2022			December 31, 2021
	(Unaudited)			(Restated)			(Unaudited)
ASSETS
Current assets
Cash	$	731,464		$	1,193,592		$	553,875		$	339,570
Prepaid expenses and other current assets		371,100			625,421
Prepaid expenses								251,841			283,640
Total Current Assets		1,102,564			1,819,013			805,716			623,210

Cash and marketable securities held in Trust Account		312,507,022			312,508,029			312,522,495			312,514,788
TOTAL ASSETS	$	313,609,586		$	314,327,042		$	313,328,211		$	313,137,998

LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accrued expenses	$	665,233		$	67,337		$	868,631		$	997,815
Accrued offering costs		0			5,000
Total Current Liabilities		665,233			72,337			868,631			997,815

Convertible note – related party								666,697			0
Warrant liabilities		25,122,000			31,607,000			7,584,000			17,775,000
Class A common stock payable								9,880,977			0
Deferred underwriting fee payable		10,062,500			10,062,500			10,062,500			10,062,500
Total Liabilities		35,849,733			41,741,837			29,062,805			28,835,315

Commitments and Contingencies		0			0			0			0

Class A common stock subject to possible redemption, $0.0001 par value; 28,750,000 shares at $10.00 per share at redemption value as of September 30, 2021 and December 31, 2020		287,500,000			287,500,000
Class A common stock subject to possible redemption, $0.0001 par value, 31,250,000 and 28,750,000 shares issued and outstanding at $10.00 per share redemption value as of March 31, 2022 and December 31, 2021, respectively								312,500,000			287,500,000

Stockholders’ Deficit
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding		0			0			0			0
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 2,500,000 shares issued and outstanding (excluding 28,750,000 shares subject to possible redemption) at September 30, 2021 and December 31, 2020		250			250
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 7,187,500 shares issued and outstanding at September 30, 2021 and December 31, 2020		719			719
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; none and 2,500,000 issued and outstanding (excluding 31,250,000 and 28,750,000 shares subject to possible redemption as of March 31, 2022 and December 31, 2021, respectively)								0			250
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 7,187,500 shares issued and outstanding								719			719
Additional paid-in capital		0			0			0			0
Accumulated deficit		(9,741,116	)		(14,915,764	)		(28,235,313	)		(3,198,286	)
Total Stockholders’ Deficit		(9,740,147	)		(14,914,795	)		(28,234,594	)		(3,197,317	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	313,609,586		$	314,327,042		$	313,328,211		$	313,137,998

The accompanying notes are an integral part of the unaudited condensed financial statements.

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HUMANCO ACQUISITION CORP.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021			Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
General and administrative expenses	$	780,474		$	1,354,804		$	355,007		$	229,947
Loss from operations		(780,474	)		(1,354,804	)		(355,007	)		(229,947	)

Other income:
Income earned on marketable securities held in Trust Account		6,423			44,452
Income earned on cash and marketable securities held in Trust Account								7,707			33,062
Class A common stock incentive to new investor								(9,880,977	)		0
Change in fair value of warrant liabilities		3,081,000			6,485,000			10,191,000			474,000
Total other income		3,087,423			6,529,452			317,730			507,062

Net income	$	2,306,949		$	5,174,648
Net income (loss)							$	(37,277)		$	277,115

Weighted average shares outstanding, Class A common stock		31,250,000			31,250,000			31,250,000			31,250,000

Basic and diluted net income per share, Class A common stock	$	0.06		$	0.13
Basic and diluted net income (loss) per share, Class A common stock							$	(0.00)		$	0.01

Weighted average shares outstanding, Class B common stock		7,187,500			7,187,500			7,187,500			7,187,500

Basic and diluted net income per share, Class B common stock	$	0.06		$	0.13
Basic and diluted net income (loss) per share, Class B common stock							$	(0.00)		$	0.01

The accompanying notes are an integral part of the unaudited condensed financial statements.

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HUMANCO ACQUISITION CORP.

CONDENSED ~~STATEMENT~~STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(UNAUDITED)

THREE ~~AND NINE~~ MONTHS ENDED ~~SEPTEMBER 30,~~MARCH 31, 2022

	Class A Common Stock						Class B Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
	Shares			Amount			Shares		Amount		Capital		Deficit			Deficit
Balance — December 31, 2021		2,500,000		$	250			7,187,500	$	719	$	0	$	(3,198,286	)	$	(3,197,317	)

Change in value of common stock subject to redemption		(2,500,000	)		(250	)		0		0		0		(24,999,750	)		(25,000,000	)

Net loss		—			0			—		0		0		(37,277)			(37,277)

Balance – March 31, 2022		0		$	0			7,187,500	$	719	$	0	$	(28,235,313	)	$	(28,234,594	)

THREE MONTHS ENDED MARCH 31, 2021

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 2,500,000 $ 250 7,187,500 $ 719 $ 0 $ (14,915,764 ) $ (14,914,795 )

Net income
—

0

—

0

0

277,115

277,115

Balance – March 31, 2021 (unaudited) 2,500,000
250 7,187,500
719
0
(14,638,649 )
(14,637,680 )

Net income
—
0
—
0
0
2,590,584
2,590,584

Balance – June 30, 2021 (unaudited)
2,500,000
250 7,187,500
719
0
(12,048,065 )
(12,047,096 )

Net income
—
0
—
0
0
2,306,949
2,306,949

Balance – September 30, 2021 (unaudited)
2,500,000
$
250 7,187,500
$
719 $
0 $
(9,741,116 ) $
(9,740,147 )

	Class A Common Stock				Class B Common Stock				Additional Paid-in		Accumulated			Total Stockholders’
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
Balance — December 31, 2020		2,500,000	$	250		7,187,500	$	719	$	0	$	(14,915,764	)	$	(14,914,795	)

Net income		—		0		—		0		0		277,115			277,115

Balance – March 31, 2021		2,500,000	$	250		7,187,500	$	719	$	0	$	(14,638,649	)	$	(14,637,680	)

The accompanying notes are an integral part of the unaudited condensed financial statements.

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HUMANCO ACQUISITION CORP.

CONDENSED ~~STATEMENT~~STATEMENTS OF CASH FLOWS

~~NINE MONTHS ENDED SEPTEMBER 30, 2021~~

(UNAUDITED)

				Three Months Ended March 31,			Three Months Ended March 31,
				2022			2021
Cash Flows from Operating Activities:
Net income	$	5,174,648
Adjustments to reconcile net income to net cash used in operating activities:
Net income (loss)				$	(37,277)		$	277,115
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Change in fair value of warrant liabilities		(6,485,000	)		(10,191,000	)		(474,000	)
Interest earned on marketable securities held in Trust Account		(44,452	)
Class A common stock incentive to new investor					9,880,977			0
Interest earned on cash and marketable securities held in Trust Account					(7,707	)		(33,062	)
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		254,321
Prepaid expenses					31,799			54,779
Accrued expenses		597,896			(129,184	)		42,663
Net cash used in operating activities		(502,587	)		(452,392	)		(132,505	)

Cash Flows from Investing Activities:
Cash withdrawn from Trust Account to pay franchise and income taxes		45,459
Net cash provided by investing activities		45,459

Cash Flows from Financing Activities:
Proceeds from convertible promissory note – related party					666,697			0
Payment of offering costs		(5,000	)		0			(5,000	)
Net cash used in financing activities		(5,000	)
Net cash provided by (used in) financing activities					666,697			(5,000	)

Net Change in Cash		(462,128	)		214,305			(137,505	)
Cash – Beginning of period		1,193,592			339,570			1,193,593
Cash – End of period	$	731,464		$	553,875		$	1,056,087

Non-cash investing and financing activities:
Accretion for Class A Common Stock to redemption amount				$	25,000,000		$	0

The accompanying notes are an integral part of the unaudited condensed financial statements.

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HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~(UNAUDITED)

NOTE 1.

DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

HumanCo Acquisition Corp. (the “Company”) was incorporated in Delaware on October 5, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company is not limited to a particular industry or sector for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

As of ~~September 30, 2021,~~March 31, 2022, the Company had not commenced any operations. All activity through ~~September 30, 2021~~March 31, 2022 relates to the Company’s formation, the initial public offering (“Initial Public Offering”), which is described below, and subsequent to the Initial Public Offering, identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest income from the securities held in the Trust Account.

The registration statement for the Company’s Initial Public Offering was declared effective on December 8, 2020. On December 11, 2020, the Company consummated the Initial Public Offering of 28,750,000 units (the “Units”), each consisting of 1 share of Class A common stock and ~~with respect to the~~one-half of one redeemable warrant. The shares of Class A common stock included in the Units sold are referred to as the “Public Shares”), ~~which includes~~and the warrants underlying the Units are referred to as “the Public Warrants”. The Initial Public Offering included full exercise by the underwriter of its over-allotment option in the amount of 3,750,000 Units, at $10.00 per Unit, ~~generating~~and generated gross proceeds of $287,500,000, ~~which is~~as described in Note 4.3.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 8,075,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to HumanCo Acquisition Holdings, LLC (the “Sponsor”), generating gross proceeds of $8,075,000, which is described in Note 5.4.

CAVU Venture Partners III, LP ~~or “CAVU”~~(“CAVU”), a member of the Sponsor, purchased 2,500,000 Units (the “Private Placement Units” and, with respect to the Class A common stock included in the Private Placement Units, the “Private Placement Shares”) at a price of $10.00 per Private Placement Unit for an aggregate purchase price of $25,000,000 in a private placement that occurred simultaneously with the closing of the Initial Public Offering (see Note 5)4 and Note 6).

Transaction costs charged to temporary equity amounted to ~~$16,318,165,~~ $15,513,589, transaction cost charged to statement of operations amounted to $804,576. Total cost consisting of $5,750,000 in cash underwriting fees, $10,062,500 of deferred underwriting fees, and $505,665 of other offering costs.

Following the closing of the Initial Public Offering on December 11, 2020, an amount of $312,500,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”), located in the United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the funds held in the Trust Account, as described below.

On February 15, 2022, certain funds and accounts managed by BlackRock, Inc. (collectively, the “Investors”) each entered into a Unit Purchase Agreement (together, the “Unit Purchase Agreements”) with CAVU pursuant to which the Investors, severally and not jointly, purchased the 2,500,000 Private Placement Units from CAVU.

As a result of the transactions with BlackRock, Inc. described above, the Company recognized a Class A stock payable of $9,880,977 based on the commitment to deliver Class A stock at the closing of the business combination. The value was based on the difference in fair value and the purchase consideration as of the date of grant, which was discounted by the probability of a successful business combination. As such a one time charge was recognized for the incentive granted to the new investors.

On February 15, 2022, the Company entered into a Share Purchase Agreement (together, the “Share Purchase Agreements”) with the Sponsor and each of the Investors. Pursuant to the Share Purchase Agreements, the Sponsor agreed to forfeit an aggregate of 1,370,247 of the Founder Shares (the “Founder Shares”) it owns, and the Company agreed to issue an aggregate of 1,370,247 shares of its Class A common stock (or shares of common stock issuable upon conversion thereof) (the “Investor Shares”) to the Investors at the time of the initial Business Combination, for an aggregate purchase price of $4,900. Like the Founder Shares, the Investor Shares will not be transferable or salable until the earlier of (i) one year after the completion of the initial Business Combination or (ii) subsequent to the initial Business Combination, if the last reported sale price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination or other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property.

On February 15, 2022, the Sponsor and each of the Investors also entered into a Warrant Purchase Agreement (together, the “Warrant Purchase Agreements”) under which the Sponsor sold an aggregate of 2,005,243 of its Private Placement Warrants to the Investors (the “Investor Private Placement Warrants”).

In order to facilitate the transactions contemplated by the Unit Purchase Agreements, the Share Purchase Agreements and the Warrant Purchase Agreements, on February 15, 2022 the Company, the Sponsor, HMCO Acquisition, LLC, CAVU and members of the Company’s board of directors and/or management team entered into Amendment No. 1 to that certain letter agreement (the “Letter Agreement”), dated as of December 8, 2020 (the “Amendment”). The Amendment (i) removed certain transfer restrictions contained in the Letter Agreement from the Private Placement Warrants and Private Placement Units and (ii) eliminated the waiver of the redemption right by the holder of the Private Placement Units in connection with the Company’s initial Business Combination.

The Company also waived certain transfer restrictions under the Warrant Agreement, dated as of December 8, 2020, between the Company and Continental Stock Transfer & Trust Company, with respect to the Private Placement Warrants purchased by the Investors.

The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering, the sale of Private Placement Warrants and the sale of the Private Placement Units, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete 1 or more initial Business Combinations with one or more operating businesses or assets with a fair market value equal to at least 80% of the net assets held in the Trust Account (as defined below) (excluding any deferred underwriting fees and taxes payable on the interest earned on the Trust Account). The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act.

The Company will provide the holders of the outstanding Public Shares (the “Public Stockholders”) and the Investors with the opportunity to redeem all or a portion of their Public Shares or Private Placement Shares, as applicable, upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company. The Public Stockholders and the Investors will be entitled to redeem their Public Shares or Private Placement Shares, as applicable, for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.00 per Public Share, plus any pro rata interest then in the Trust Account, net of taxes payable). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants.

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HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

The Company will only proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 following any related redemptions and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by applicable law or stock exchange listing requirements and the Company does not decide to hold a stockholder vote for business or other reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transaction is required by applicable law or stock exchange listing requirements, or the Company decides to obtain stockholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Sponsor and CAVU have agreed to vote their Founder Shares ~~(as defined in Note 6), Private Placement Shares~~ and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, each Public Stockholder may elect to redeem their Public Shares without voting, and if they do vote, irrespective of whether they vote for or against the proposed transaction.

Notwithstanding the foregoing, if the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Certificate of Incorporation provides that a Public Stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% of the Public Shares, without the prior consent of the Company.

The Sponsor and CAVU have agreed (a) to waive their redemption rights with respect to the Founder Shares ~~Private Placement Shares~~ and Public Shares held by them in connection with the completion of a Business Combination, (b) to waive their liquidation rights with respect to the Founder ~~Shares and Private Placement~~ Shares if the Company fails to complete a Business Combination by December 11, 2022 and (c) not to propose an amendment to the Certificate of Incorporation (i) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with a Business Combination or to redeem 100% of its Public Shares if the Company does not complete a Business Combination within the Combination Period (as defined below) or (ii) with respect to any other provision relating to stockholders’ rights or pre-business combination activity, unless the Company provides the Public Stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment. However, if the Sponsor or CAVU acquire Public Shares ~~in or~~ after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Period.

The Company will have until December 11, 2022 to complete a Business Combination (the “Combination Period”). If the Company has not completed a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares and Private Placement Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to pay taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares and Private Placement Shares, which redemption will completely extinguish Public Stockholders’ and holders of Private Placement Shares’ rights as stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Period.

In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per public Share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to monies held in the Trust Account nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except for the Company’s independent registered public accounting firm), prospective target businesses and other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.

~~Table of Contents~~

~~HUMANCO ACQUISITION CORP.~~

~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~

~~SEPTEMBER 30, 2021~~

~~(Unaudited)~~

~~NOTE 2.~~

~~RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS~~

In connection with the preparation of the Company’s unaudited condensed financial statements as of September 30, 2021, management identified errors made in its historical financial statements where, at the closing of the Company’s Initial Public Offering, the Company improperly valued its Class A common stock subject to possible redemption. The Company previously determined the Class A common stock subject to possible redemption to be equal to the redemption value of $10.00 per share of Class A common stock while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Management determined that the Class A common stock issued during the Initial Public Offering can be redeemed or become redeemable subject to the occurrence of future events considered outside the Company’s control. Therefore, management concluded that the redemption value should include all shares of Class A common stock subject to possible redemption, resulting in the Class A common stock subject to possible redemption being equal to their redemption value. As a result, management has noted a reclassification error related to temporary equityLiquidity and permanent equity. This resulted in a restatement of the initial carrying value of the Class A common stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock.

Going Concern

In connection with the ~~change~~Company’s assessment of going concern considerations in ~~presentation for the Class A common stock subject~~accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to ~~redemption,~~Continue as a Going Concern,” the Company ~~also restated its loss per share calculated~~has until December 11, 2022 to ~~allocate net loss pro rata~~consummate a Business Combination. It is uncertain that the Company will be able to ~~Class A and Class B common stock. This presentation contemplates~~consummate a Business Combination asby this time. Additionally, the ~~most likely outcome, in which case, both classes~~Company may not have sufficient liquidity to fund the working capital needs of ~~common stock pro rata in~~ the ~~loss~~Company until one year from the issuance of these financial statements. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company. ~~There is no impact~~Management has determined that the liquidity condition and mandatory liquidation, should a Business Combination not occur, and potential subsequent dissolution, raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the ~~reported~~carrying amounts ~~for total~~of assets ~~total~~or liabilities ~~cash flows, or net loss.~~
should the Company be required to liquidate after December 11, 2022. The Company intends to complete a Business Combination before the mandatory liquidation date. Management intends to close on its business combination before mandatory liquidation date.

~~The impact of the restatement on the Company’s financial statements is reflected in the following table.~~

Balance Sheet as of March 31, 2021 (unaudited)
As Previously
Reported
Adjustment As Restated
Class A common stock subject to possible redemption $ 267,862,310 $ 19,637,690 $ 287,500,000
Class A common stock $ 446 $ (196 ) $ 250
Additional paid-in capital $ 13,991,686 $ (13,991,686 ) $ 0
Accumulated deficit $ (8,992,841 ) $ (5,645,808 ) $ (14,638,649 )
Total stockholders’ equity (deficit) $ 5,000,010 $ (19,637,690 ) $ (14,637,680 )
Number of Class A shares subject to possible redemption 26,786,231 1,963,769 28,750,000

Balance Sheet as of June 30, 2021 (unaudited)
As Previously
Reported
Adjustment As Restated
Class A common stock subject to possible redemption $ 270,452,900 $ 17,047,100 $ 287,500,000
Class A common stock $ 420 $ (170 ) $ 250
Additional paid-in capital $ 11,401,122 $ (11,401,122 ) $ 0
Accumulated deficit $ (6,402,257 ) $ (5,645,808 ) $ (12,048,065 )
Total stockholders’ equity (deficit) $ 5,000,004 $ (17,047,100 ) $ (12,047,096 )
Number of Class A shares subject to possible redemption 27,045,290 1,704,710 28,750,000

Statement of Operations for the Three Months March 31, 2021 (unaudited)

As Previously
Reported
Adjustment As Restated
Weighted average shares outstanding, Class A common stock 28,750,000 2,500,000 31,250,000
Basic and diluted earnings per share, Class A common stock $ 0 $ 0.01 $ 0.01
Weighted average shares outstanding, Class B common stock 9,687,500 (2,500,000 ) 7,187,500
Basic and diluted earnings per share, Class B common stock $ 0.03 $ (0.02 ) $ 0.01

Statement of Operations for the Three Months June 30, 2021 (unaudited)
As Previously
Reported
Adjustment As Restated
Weighted average shares outstanding, Class A common stock 28,750,000 2,500,000 31,250,000
Basic and diluted earnings per share, Class A common stock $ 0 $ 0.07 $ 0.07
Weighted average shares outstanding, Class B common stock 9,687,500 (2,500,000 ) 7,187,500
Basic and diluted earnings per share, Class B common stock $ 0.27 $ (0.20 ) $ 0.07

Statement of Operations for the Six Months June 30, 2021 (unaudited)
As Previously
Reported
Adjustment As Restated
Weighted average shares outstanding, Class A common stock 28,750,000 2,500,000 31,250,000
Basic and diluted earnings per share, Class A common stock $ 0 $ 0.07 $ 0.07
Weighted average shares outstanding, Class B common stock 9,687,500 (2,500,000 ) 7,187,500
Basic and diluted earnings per share, Class B common stock $ 0.30 $ (0.23 ) $ 0.07

Statement of Cash Flows for the Three Months March 31, 2021 (audited)
As Previously
Reported
Adjustment As Restated
Non-Cash investing and financing activities:
Change in value of Class A common stock subject to possible redemption $ 277,110 $ (277,110 ) $ 0

Statement of Cash Flows for the Six Months June 30, 2021 (audited)
As Previously
Reported
Adjustment As Restated
Non-Cash investing and financing activities:
Change in value of Class A common stock subject to possible redemption $ 2,687,700 $ (2,867,700 ) $ 0

NOTE 3.2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

Table of Contents

HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form ~~10-K/A~~10-K for the period ended December 31, ~~2020,~~2021, as filed with the SEC on ~~July 7, 2021.~~March 18, 2022. The interim results for the three ~~and nine~~ months ended ~~September 30, 2021~~March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, ~~2021~~2022 or for any future periods.

Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of the condensed financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these financial statements is the determination of the fair value of the warrant liability. Such estimates may be subject to change as more current information becomes available and, accordingly, the actual results could differ significantly from those estimates.

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did 0t have any cash equivalents as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021.

At March 31, 2022 and December 31, 2021, the majority of the assets held in the Trust Account were held in money market funds, which are invested primarily in U.S. Treasury securities. The Company presents its investments in treasury securities on the condensed balance sheets at amortized cost and adjusts for the amortization or accretion of premiums or discounts. The Company presents its investments in money market funds on the condensed balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities are included in interest income in the accompanying condensed statements of operations. The estimated fair value of investments held in the Trust Account are determined using available market information.

Offering Costs

Offering costs consisted of legal, accounting and other expenses incurred through the Initial Public Offering that were directly related to the Initial Public Offering. Offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared to total proceeds received. Offering costs allocated to warrant liabilities were expensed as incurred in the statements of operations. Offering costs associated with the Class A common stock issued were initially charged to temporary equity and then accreted to common stock subject to redemption upon the completion of the Initial Public Offering. Offering costs amounted to $16,318,165, of which $15,513,589 were charged to ~~stockholders’~~temporary equity upon the completion of the Initial Public Offering and $804,576 were expensed to the ~~statement~~condensed statements of operations.

Warrant Liabilities

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ~~ASC~~Accounting Standards Codification (“ASC”) 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). The Company accounts for the Warrants in accordance with the guidance contained in ASC 815-40 under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and ~~adjust~~adjusts the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the statements of operations. The Public Warrants for periods where no observable traded price was available were valued using a Monte Carlo simulation, and the Private Warrants were valued using a Black-Scholes Model. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price was used as the fair value as of each relevant date. The fair value of the private placement warrants ~~have~~has subsequently been measured by reference to the trading price of the Public Warrants.

Table of Contents

HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

Class A Common Stock Subject to Possible Redemption

The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ~~Accounting Standards Codification (“ASC”)~~ASC Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable common stock (including common stock 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, common stock is classified as stockholders’ equity. The Company’s Public Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, public shares of Class A common stock subject to possible redemption is presented as temporary equity, outside of the stockholders’ equity (deficit) section of the Company’s condensed balance sheets.

Holders of Class A common stock issued in the private placement at the time of the ~~IPO have~~Initial Public Offering had waived their redemption rights and as such those 2,500,000 shares of Class A common stock ~~are~~were classified within permanent equity. On February 15,2022, certain funds and accounts managed by the Investors each entered into Unit Purchase Agreements with CAVU, pursuant to which the Investors, severally and not jointly, purchased an aggregate of 2,500,000 Private Placement Units. In order to facilitate the transactions contemplated by the Unit Purchase Agreements, the Share Purchase Agreements and the Warrant Purchase Agreements, on February 15,2022 the Company, the Sponsor, HMCO Acquisition, LLC, CAVU and members of the Company’s board of directors and/or management team entered into the Amendment. The Amendment (i) removed certain transfer restrictions contained in the Letter Agreement from the Private Placement Warrants and Private Placement Units and (ii) eliminated the waiver of the redemption right by the holder of the Private Placement Units in connection with the Company’s initial Business Combination. As a result, the 2,500,000 Class A shares included in the Private Placement Unit are now considered redeemable and accordingly classified in temporary equity.

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable Class A common stock resulted in charges against additional paid-in capital and accumulated deficit.

At ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, Class A common stock reflected in the condensed balance sheets ~~are~~is reconciled in the following table:


Gross proceeds	$	287,500,000
Gross proceeds from Public Units				$	287,500,000
Gross proceeds from Private Placement Unit					25,000,000
Less:
Proceeds allocated to Public Warrants	$	(13,943,750	)		(13,943,750	)
Class A common stock issuance costs	$	(15,513,589	)		(15,513,589	)
Plus:
Accretion of carrying value to redemption value	$	29,457,339			29,457,339
Class A common stock subject to possible redemption	$	287,500,000
Class A common stock subject to possible redemption as of March 31, 2022				$	312,500,000

Income Taxes

The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the Company had deferred tax assets with a full valuation allowance recorded against them.

ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were 0 unrecognized tax benefits and 0 amounts accrued for interest and penalties as of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

The Company’s currently taxable income primarily consists of interest income on the Trust Account. The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible. During the three months ~~and nine months~~ ended ~~September 30,~~March 31, 2022 and 2021, the Company recorded 0 income tax expense. The Company’s effective tax rate for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 was approximately 0%, which differs from the expected income tax rate mainly due to the change in the fair value of the warrant liabilities and the start-up costs (discussed above) which are not currently deductible.

Net Income (Loss) ~~per~~Per Common Share

The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock. Income and losses are shared pro rata between the two classes of shares. Net income ~~(loss)~~ per common share is calculated by dividing the net income ~~(loss)~~ by the weighted average shares of common stock outstanding for the respective period.

The calculation of diluted income (loss) per common share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the warrants is contingent upon the occurrence of future events. The warrants are exercisable to purchase 23,700,000 shares of Class A common stock in the aggregate. As of ~~September 30,~~March 31, 2022 and 2021, the Company did not have ~~any~~other dilutive securities or other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the periods presented. Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the redemption value approximates fair value.

The following table reflects the calculation of basic and diluted net income (loss) per common share (in dollars, except per share amounts):

									Three Months Ended March 31, 2022				Three Months Ended March 31, 2021
	Three Months Ended September 30, 2021				Nine Months Ended September 30, 2021				Class A		Class B		Class A		Class B
	Class A		Class B		Class A		Class B
Basic and diluted net income per common share
Basic and diluted net income (loss) per common share
Numerator:
Allocation of net income, as adjusted	$	1,875,568	$	431,381	$	4,207,031	$	967,617
Allocation of net income (loss), as adjusted									$	(30,307)	$	(6,970)	$	225,297	$	51,818
Denominator:
Basic and diluted weighted average shares outstanding		31,250,000		7,187,500		31,250,000		7,187,500		31,250,000		7,187,500		31,250,000		7,187,500

Basic and diluted net income per common share	$	0.06	$	0.06	$	0.13	$	0.13
Basic and diluted net income (loss) per common share									$	(0.00)	$	(0.00)	$	0.01	$	0.01

Table of Contents

HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash ~~accounts~~account in a financial institution, which, at times, may exceed the Federal Depository Insurance ~~Corporation coverage limit~~Coverage of $250,000. The Company has not experienced losses on ~~these accounts~~this account and management believes the Company is not exposed to significant risks on such account.

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed balance sheets, primarily due to their short-term nature, except for the Warrants (see Note ~~10)~~9).

Recent Accounting Standards

In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have an impact on the Company’s financial statements.

Management does not believe that any ~~other~~ recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed financial statements.

HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

NOTE 4.3.

INITIAL PUBLIC OFFERING

Pursuant to the Initial Public Offering, the Company sold 28,750,000 Units, which includes a full exercise by the underwriters of their over-allotment option in the amount of 3,750,000 Units, at a price of $10.00 per Unit. Each Unit consists of 1 ~~share of Class A common stock~~Public Share and one-half of one ~~redeemable warrant (“~~Public ~~Warrant”).~~Warrant. Each whole Public Warrant entitles the holder to purchase 1 share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 9)8).

NOTE 5.4.

PRIVATE PLACEMENT

Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 8,075,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant (or an aggregate of $8,075,000) from the Company in a private ~~placement.~~placement (see Note 6). Each Private Placement Warrant will be exercisable to purchase 1 share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 9)8). The proceeds from the sale of the Private Placement Warrants were added to the net proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. On February 15, 2022, the Sponsor sold an aggregate of 2,005,243 of its Private Placement Warrants to the Investors (see Note 1).

Simultaneously with the closing of the ~~IPO,~~Initial Public Offering, CAVU purchased 2,500,000 Private Placement Units at a price of $10.00 per Private Placement Unit for an aggregate purchase price of $25,000,000 in a private ~~placement.~~placement (see Note 1). Each Private Placement Unit consists of 1 Private Placement Share and one-half of one redeemable warrant (“CAVU Private Placement Warrant”). Each whole CAVU Private Placement Warrant will entitle the holder to purchase 1 share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 9)8). IfOn February 15, 2022, the ~~Company seeks stockholder approval in connection with a Business Combination, CAVU has agreed to vote its~~Investors purchased the 2,500,000 Private Placement ~~Shares and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination.~~

Units from CAVU has agreed, subject to limited exceptions, not to transfer, assign or sell any of the Private Placement Shares until the earlier to occur of: (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Public Stockholders having the right to exchange their shares of common stock for cash, securities or other property.(see Note 1).

NOTE 6.5.

RELATED PARTY TRANSACTIONS

Founder Shares

On October 12, 2020, the Sponsor purchased 6,468,750 ~~shares (the “Founder Shares”) of the Company’s Class B common stock~~Founder Shares for an aggregate price of $25,000. In November 2020, the Sponsor transferred 25,000 shares of Class B common stock to each of the independent directors, 75,000 shares of Class B common stock to the Chief Executive Officer, 25,000 shares of Class B common stock to the Chief Operating Officer and 10,000 shares of Class B common stock to a financial analyst. On December 8, 2020, the Company effected a stock dividend of 718,750 shares of Class B common stock, resulting in an aggregate of 7,187,500 Founder Shares outstanding.
On February 15, 2022, the Sponsor agreed to forfeit an aggregate of 1,370,247 of the Founder Shares it owns to the Investors at the time of the initial Business Combination (see Note 1).

The Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Public Stockholders having the right to exchange their shares of common stock for cash, securities or other property.

Promissory Note — Related Party

On October 12, 2020, the Sponsor issued an unsecured promissory note to the Company (the “Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $300,000. The Promissory Note was non-interest bearing and payable on the earlier of (i) March 31, 2021 or (ii) the consummation of the Initial Public Offering. The outstanding balance under the Promissory Note of $183,000 was repaid at the closing of the Initial Public Offering on December 11, 2020. Borrowings are no longer available under the Promissory Note.

Related Party Loans

In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $2,000,000 of such Working Capital Loans may be convertible into warrants of the post-Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. As

On February 15, 2022, the Company issued a Working Capital Loan in the principal amount of ~~September 30, 2021~~$2,000,000, $666,697 of which has been drawn down as of March 31, 2022, to the Sponsor. The Working Capital Loan does not bear interest and ~~December 31, 2020, there were 0 amounts outstanding under~~is repayable in full upon consummation of the initial Business Combination. If the Company does not complete a Business Combination, the Working Capital ~~Loans.~~Loan shall not be repaid and all amounts owed under it will be forgiven. Upon the consummation of a Business Combination, the Sponsor shall have the option, but not the obligation, to convert the principal balance of the Working Capital Loan, in whole or in part, to warrants of the Company, at a price of $1.00 per warrant, the terms of which will be identical to the terms of the Private Placement Warrants. The Working Capital Loan is subject to customary events of default, the occurrence of which automatically trigger the unpaid principal balance of the Working Capital Loan and all other sums payable with regard to the Working Capital Loan becoming immediately due and payable.

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HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

NOTE 7.6.

COMMITMENTS AND CONTINGENCIES

Risks and Uncertainties

In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. As a result of this action, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. Further, the impact of this action and related sanctions on the world economy are not determinable as of the date of these condensed financial statements and the specific impact on the Company’s financial condition, results of operations, and cash flows is also not determinable as of the date of these financial statements.

Management continues to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Registration Rights

Pursuant to a registration rights agreement entered into on December 10, 2020, HMCO Acquisition, LLC, a member of the Sponsor, and CAVU will have rights to require the Company to register any of the securities held by them for resale under the Securities Act pursuant to a registration and stockholder rights agreement to be signed prior to or on the effective date of the Initial Public Offering. These holders will be entitled to make up to 3 demands, excluding short form registration demands, that the Company register such securities for sale under the Securities Act. In addition, the holders of the Founder Shares, Private Placement Shares, CAVU Private Placement Warrants, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any Class A common stock issuable upon the exercise of the CAVU Private Placement Warrants, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the Company’s completion of its initial business combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements. The registration and stockholder rights agreement does not contain liquidated damages or other cash settlement provisions resulting from delays in registering ~~our~~the Company’s securities. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

The Company also entered into a Registration Rights Agreement on February 15, 2022 with each of the Investors, which provides for customary demand and piggy-back registration rights for the Investors on the Private Placement Units now owned by them, the Investor Shares and the Investor Private Placement Warrants.

Underwriting Agreement

The underwriters are entitled to a deferred fee of $0.35 per Unit, or $10,062,500 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.

NOTE 8.7.

STOCKHOLDERS’ ~~EQUITY~~DEFICIT

Preferred Stock — The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. At ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, there were 0 shares of preferred stock issued or outstanding.

Class A Common Stock — The Company is authorized to issue 100,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to one vote for each share. At ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, there were NaN and 2,500,000 shares of Class A common stock issued and outstanding, respectively, excluding 31,250,000 and 28,750,000 shares of Class A common stock subject to possible redemption, respectively, which are presented as temporary equity.

Class B Common Stock — The Company is authorized to issue 10,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders of Class B common stock are entitled to one vote for each share. At ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, there were 7,187,500 shares of common stock issued and outstanding.

Holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters submitted to a vote of ~~our shareholders~~the Company’s stockholders except as otherwise required by law.

The shares of Class B common stock will automatically convert into Class A common stock at the time of a Business Combination, or earlier at the option of the holder, on a 1-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in ~~this prospectus~~the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination, any private placement-equivalent units and their underlying securities issued to the Sponsor or its affiliates upon conversion of loans made to the Company).

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HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

NOTE 9.8.

WARRANTS

As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021, there were 15,625,000 Public Warrants outstanding. Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation.

The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable and the Company will not be obligated to issue shares of Class A common stock upon exercise of a warrant unless Class A common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants.

The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of a Business Combination, it will use its best efforts to file with the SEC a registration statement covering the shares of Class A common stock issuable upon exercise of the warrants, to cause such registration statement to become effective and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed, as specified in the warrant agreement. If a registration statement covering the shares of Class A common stock issuable upon exercise of the warrants is not effective by the 60th business day after the closing of a Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the foregoing, if a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective within a specified period following the consummation of a Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act, provided that such exemption is available. If that exemption, or another exemption, is not available, holders will not be able to exercise their warrants on a cashless basis.

Redemptions of warrants when the price of Class A common stock equals or exceeds $18.00 — Once the warrants become exercisable, the Company may redeem the Public Warrants:

●

in whole and not in part;

●

at a price of $0.01 per warrant;

●

upon not less than 30 days’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and;

●

if, and only if, the reported last sale price of the Company’s Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

Redemption of warrants when the price per share of Class common stock equals or exceeds $10.00 — Commencing ninety days after the warrants become exercisable, the Company may redeem the outstanding Public Warrants:

●

in whole and not in part;

●

at a price of $0.10 per warrant provided that holders will be able to exercise their warrants prior to redemption and receive that number of shares of Class A common stock determined based on the redemption date and the “fair market value” of the Company’s Class A common stock;

●

upon a minimum of 30 days’ prior written notice of redemption;

●

if, and only if, the last reported sale price of the Company’s Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrant holders;

●

if, and only if, there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating thereto is available throughout the 30-day period after the written notice of redemption is given.

The exercise price and number of Class A common stock issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of Public Warrants will not receive any of such funds with respect to their Public Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such Public Warrants. Accordingly, the Public Warrants may expire worthless.

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HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, (i) in the case of any such issuance to the Sponsor, CAVU or their affiliates, without taking into account any Founder Shares or Private Placement Shares held by the Sponsor or CAVU or such affiliates, as applicable, prior to such issuance, and (ii) to the extent that such issuance is made to the Sponsor or CAVU or any of their respective affiliates, without taking into account the transfer of Founder Shares, Private Placement Shares or Private Placement Warrants (including if such transfer is effectuated as a surrender to the Company and subsequent reissuance by the Company) by the Sponsor or CAVU in connection with such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the Company’s initial Business Combination on the date of the consummation of such initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price and the $10.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price.

As of ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021, there were 8,075,000 Private Placement Warrants outstanding. The Private Placement Warrants and CAVU Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and CAVU Private Placement Warrants and the Class A common stock issuable upon the exercise of the Private Placement Warrants and CAVU Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants and CAVU Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants and CAVU Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants and CAVU Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

NOTE ~~10.~~9.

FAIR VALUE MEASUREMENTS

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

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 our assessment of the assumptions that market participants would use in pricing the asset or liability.

The Company classifies its U.S. Treasury and equivalent securities as held-to-maturity in accordance with ASC Topic 320 “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying condensed balance sheets and adjusted for the amortization or accretion of premiums or discounts.

At ~~September 30, 2021,~~March 31, 2022, assets held in the Trust Account were comprised of ~~$312,507,022~~$312,522,495 in cash and money market funds which are invested primarily in U.S. Treasury Securities. During the ~~nine~~three months ended ~~September~~ ~~30, 2021,~~March 31, 2022, the Company ~~withdrew $45,459 of~~did 0t withdraw any interest income from the Trust Account to pay ~~taxes~~.taxes.

At December 31, ~~2020,~~2021, assets held in the Trust Account were comprised of ~~$91~~$312,514,788 in cash and ~~$312,507,938~~money market funds which are invested primarily in U.S. Treasury ~~securities.~~Securities. During the three months ended March 31, 2021, the Company did 0t withdraw any interest income from the Trust Account to pay taxes.

~~The following table presents information about the gross holding gains (losses) and fair value of held-to-maturity securities at December 31, 2020:~~

Held-To-Maturity
Amortized
Cost

Gross
Holding
Loss

Fair
Value

December 31, 2020
U.S. Treasury Securities (Matured on 3/11/2021)
$ 312,507,938 $ (10,694 ) $ 312,497,244

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HUMANCO ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~SEPTEMBER 30, 2021~~MARCH 31, 2022

~~(Unaudited)~~

(UNAUDITED)

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at ~~September 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

Assets:		September 30, 2021			December 31, 2020		March 31, 2022				December 31, 2021
Marketable securities held in Trust Account	1	$	312,507,022	1	$	312,497,244
							Level		Fair Value		Level		Fair Value
Cash and marketable securities held in Trust Account								1	$	312,522,495		1	$	312,514,788

Liabilities:
Warrant Liability – Public Warrants	1	$	16,562,500	3	$	20,625,000		1	$	5,000,000		1	$	11,718,750
Warrant Liability – Private Placement Warrants	2	$	8,559,500	3	$	10,982,000		2	$	2,584,000		2	$	6,056,250

The Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities in the ~~condensed~~ balance sheets. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the ~~condensed~~ statements of operations.

Level 2 financial liabilities consist of the Private Placement Warrant liability. The subsequent measurement of the Private Placement Warrants after the detachment of the Public Warrants from the Units are classified as Level 2 due to the use of an observable market quote for a similar asset in an active market.

~~The fair value of the Private Placement Warrants was estimated at December 31, 2020 to be $1.36 using the modified Black-Scholes option pricing model and the following assumptions:~~

December 31,
2020

Risk-free interest rate 0.57 %
Expected Term 6.45
Dividend yield 0.00 %
Expected volatility 17.5 %
Exercise price $ 11.50
Unit Price $ 10.36

~~The following table presents the changes in the fair value of the Level 3 warrant liabilities:~~

Private Placement
Public
Warrants
Warrant Liabilities
Fair value as of December 31, 2020
$ 10,982,000 $ 20,625,000 $ 31,607,000
Change in fair value (1,372,750 ) 0 (1,372,750 )
Transfer to Level 2 (9,609,250 ) (9,609,250 )
Transfer to Level 1 0
(20,625,000 ) (20,625,000 )
Fair value as of September 30, 2021
$ 0 $ 0 $ 0

~~Transfers~~Transfers to/from Levels 1, 2 and 3 are recognized at the beginning of the reporting period in which a change in valuation technique or methodology occurs. The estimated fair value of the Public Warrants transferred from a Level 3 measurement to a Level 1 measurement when the Public Warrants were separately listed and traded during the ~~nine~~year ended March 31, 2021 was $20,312,500. There were 0 transfers to/from Levels 1, 2 and 3 during the three months ended ~~September 30, 2021 was $20,625,000.~~ March 31, 2022.

The ~~estimated~~following table presents the changes in the fair value of ~~the Private Placement Warrants transferred from a Level 3 measurement to a Level 2 fair value measurement during the nine months ended September 30, 2021 was $9,609,250.~~warrant liabilities:

	Private Placement			Public Warrants			Warrant Liabilities
Fair value as of December 31, 2020	$	10,982,000		$	20,625,000		$	31,607,000
Change in fair value		(161,500	)		(312,500	)		(474,000	)
Transfer to level 1		0			(20,312,500	)		(20,312,500	)
Fair value as of March 31, 2021	$	10,820,500		$	0		$	10,820,500

NOTE ~~11.~~10.

SUBSEQUENT EVENTS

The Company evaluated subsequent events and transactions that occurred after the condensed balance sheet date up to the date that the condensed financial statements were issued. Based upon this review, ~~other than as described in Note 2,~~ the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed financial statements.

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Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

References in this report (the “Quarterly Report”) to “we,” “us” or the “Company” refer to HumanCo Acquisition Corp. References to our “management” or our “management team” refer to our officers and directors, and references to the “Sponsor” refer to HumanCo Acquisition Holdings, LLC. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations gives effect to the restatement of our financial statements for the periods ended December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021. Management identified errors made in its historical financial statements where, at the closing of our Initial Public Offering, we improperly valued our Class A common stock subject to possible redemption. We previously determined the Class A common stock subject to possible redemption to be equal to the redemption value of $10.00 per share of Class A common stock while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Management determined that the Class A common stock issued during the Initial Public Offering can be redeemed or become redeemable subject to the occurrence of future events considered outside of the Company’s control. Therefore, management concluded that the redemption value should include all Class A common stock subject to possible redemption, resulting in the Class A common stock subject to possible redemption being equal to their redemption value. As a result, management has noted a reclassification error related to temporary equity and permanent equity. This resulted in a restatement to the initial carrying value of the Class A common stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock.

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 and Section 21E of 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 Form 10-Q including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the completion of the Proposed Business Combination (as defined below), 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, including that the conditions of the Proposed Business Combination are not satisfied. 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 Annual Report on Form ~~10-K/A~~10-K 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 a blank check company formed under the laws of the State of Delaware on October 5, 2020 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. We intend to effectuate our Business Combination using cash from the proceeds of the Initial Public Offering and the sale of the Private Placement ~~Warrant,~~Units, Private Placement Warrants, our capital stock, debt or a combination of cash, stock and debt.

We expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete a Business Combination will be successful.

Results of Operations

We have neither engaged in any operations (other than searching for a Business Combination after our Initial Public Offering) nor generated any revenues to date. Our only activities from October 5, 2020 (inception) through ~~September 30, 2021~~March 31, 2022 were organizational activities, those necessary to prepare for the Initial Public Offering, described below, and identifying a target company for a Business Combination. We do not expect to generate any operating revenues until after the completion of our Business Combination. We generate non-operating income in the form of interest income on cash and marketable securities held in the Trust Account. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the three months ended ~~September 30, 2021,~~March 31, 2022, we had a net ~~income~~loss of ~~$2,306,949,~~$37,277, which consists of interest ~~income~~earned on cash and marketable securities held in the Trust Account of ~~$6,423,~~$7,707, Class A stock incentive to new investor of $9,880,977 and a change in the fair value of the warrant liabilities of ~~$3,081,000,~~$10,191,000, offset by general and administrative expenses of ~~$780,474.~~$355,007.

For the ~~nine~~three months ended ~~September 30,~~March 31, 2021, we had a net income of ~~$5,174,648,~~$277,115, which consists of interest ~~income~~earned on cash and marketable securities held in the Trust Account of ~~$44,452,~~$33,062, and a change in the fair value of the warrant liabilities of ~~$6,485,000,~~$474,000, offset by general and administrative expenses of ~~$1,354,804.~~$229,947.

Liquidity and Capital Resources

On December 11, 2020, we consummated the Initial Public Offering of 28,750,000 Units, at $10.00 per Unit, generating gross proceeds of $287,500,000. Simultaneously with the closing of the Initial Public Offering, we consummated the sale of 8,075,000 ~~Private Placement~~Sponsor Warrants at a price of $1.00 per ~~Private Placement~~Sponsor Warrant in a private placement to ~~HumanCo Acquisition Holdings, LLC,~~our sponsor, generating gross proceeds of $8,075,000. In addition, simultaneously with the consummation of the Initial Public Offering, we consummated a private placement of 2,500,000 Private Placement Units at a price of $10.00 per Private Placement Unit, generating gross proceeds of $25,000,000.

For the ~~nine~~three months ended ~~September 30, 2021,~~March 31, 2022, cash used in operating activities was ~~$502,587.~~$452,392. Net ~~income~~loss of ~~$5,174,648~~$37,277 was affected by a change in the fair value of the warrant liabilities of ~~$6,485,000~~$10,191,000, Class A stock incentive to new investor of $9,880,977 and interest earned on cash and marketable securities held in the Trust Account of ~~$44,452.~~$7,707. Changes in operating assets and liabilities used $97,385 of cash for operating activities.

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For the three months ended March 31, 2021, cash used in operating activities was $132,505. Net income of $277,115 was affected by a change in the fair value of the warrant liabilities of $474,000 and interest earned on cash and marketable securities held in the Trust Account of $33,062. Changes in operating assets and liabilities provided ~~$852,217~~$97,442 of cash for operating activities.

As of ~~September 30, 2021,~~March 31, 2022, we had ~~$312,507,022~~$312,522,495 in cash held in the Trust ~~Account.~~Account (including approximately $22,000 of interest income available for withdrawal for Delaware and Federal income tax payments) consisting of U.S. Treasury Bills and Money Market. 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 Business Combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our 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 ~~September 30, 2021,~~March 31, 2022, we had cash of ~~$731,464.~~$553,875. 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 a Business Combination.

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In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, ~~the Sponsor,~~our sponsor or an affiliate of our 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 a Business Combination, we would repay such loaned amounts. In the event that a 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. We have issued our sponsor a promissory note for up to $2,000,000 in working capital loans, of which we have drawn down $666,697 as of March 31, 2022. Up to $2,000,000 of such ~~Working Capital Loans may be~~working capital loans are convertible into warrants of the post-Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the ~~Private Placement~~Sponsor 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 in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our Business Combination. Moreover, we may need to obtain additional financing either to complete our Business Combination or because we become obligated to redeem a significant number of our Public Shares upon consummation of our Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination.

~~Off-Balance Sheet Arrangements~~Going Concern

We have no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of September 30, 2021. We do not participate in transactions that create relationships with unconsolidated entities orThe accompanying financial ~~partnerships, often referred to as variable interest entities, which would~~statements have been ~~established~~prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, if the Company is unable to raise additional funds to alleviate liquidity needs as well as complete a Business Combination by the close of business on December 11, 2022, then the Company will cease all operations except for the purpose of ~~facilitating off-balance sheet arrangements. We have~~liquidating. This date for mandatory liquidation and subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not ~~entered into~~include any ~~off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments~~adjustments that might result from the outcome of ~~other entities, or purchased any non-financial assets.~~this uncertainty.

Contractual Obligations

The underwriters are entitled to a deferred fee of $0.35 per Unit, or $10,062,500 in the aggregate. The deferred fee will become payable to the underwriters 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~~Liability

We account for the Warrants in accordance with the guidance contained in ASC 815-40 under which the Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, we classify the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our statements of operations. The ~~Private Warrants and the~~ Public Warrants for periods where no observable traded price was available ~~are~~were valued using a ~~Black Scholes option pricing model.~~Monte Carlo simulation, and the Private Warrants were valued using a Black-Scholes Model. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price was used as the fair value as of each relevant date.

Class A Common Stock Subject to Possible Redemption

We account for our Class A common stock subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that feature redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within our control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. Our Public Class A common stock features certain redemption rights that are considered to be outside of our control and subject to occurrence of uncertain future events. Accordingly, shares of Public Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ equity (deficit) section of our balance sheets.

Net Income (Loss) ~~per~~Per Common Share

Recent Accounting Standards

~~In August 2020,~~Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. We adopted ASU 2020-06 effective January 1, 2021. The adoption of ASU 2020-06 did not have an impact on ourCompany’s condensed financial statements.

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Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed financial statements.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Not required for smaller reporting companies.

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act ~~such as this Quarterly Report,~~ is recorded, processed, summarized, and reported within the time period specified in the SEC’s rules and forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including the chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure. ~~Our management evaluated, with~~

As required by Rules 13a-15 and 15d-15 under the ~~participation~~Exchange Act, our Chief Executive Officer and Chief Operating Officer carried out an evaluation of ~~our chief executive officer~~the effectiveness of the design and ~~chief financial officer (our “Certifying Officers”), the effectiveness~~operation of our disclosure controls and procedures as of ~~September 30, 2021, pursuant to Rule 13a-15(b) under the Exchange Act.~~March 31, 2022. Based upon ~~that~~their evaluation, our ~~Certifying Officers~~Chief Executive Officer and Chief Operating Officer concluded that, due to the events that led to the Company’s restatement of its financial statements to restate the Company’s Class A common stock subject to possible redemption as described in the Explanatory Note to this Amendment, as of September 30, 2021, our disclosure controls and procedures were not effective.

~~We do not expect~~ that our disclosure controls and procedures ~~will prevent all errors~~(as defined in Rules 13a-15(e) and ~~all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable,~~15d-15(e) under the Exchange Act) were not ~~absolute, assurance that~~effective, due solely to the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

~~Changes in Internal Control over Financial Reporting~~

~~There was no change~~material weakness in our internal control over financial reporting that occurred during the fiscal quarter ended September 30, 2021 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 as the circumstances that ledrelated to the ~~restatement of~~Company’s accounting for complex financial instruments. As a result, we performed additional analysis as deemed necessary to ensure that our financial statements ~~described~~were prepared in ~~this Amendment had not yet been identified. In light of~~accordance with U.S. GAAP. Accordingly, management believes that the ~~restatement of our~~ financial statements included in this ~~Amendment,~~Annual Report present fairly in all material respects our financial position, results of operations and cash flows for the period presented.

Management previously identified a material weakness in internal controls related to the accounting for complex financial instruments. While we ~~plan to enhance our~~have processes to identify and appropriately apply applicable accounting requirements, we plan to ~~better evaluate~~continue to enhance our system of evaluating and ~~understand~~implementing the ~~nuances of the complex~~ accounting standards that apply to our financial ~~statements. Our plans at this time include providing~~statements, including through enhanced ~~access to accounting literature, research materials and documents and increased communication among~~analyses by our personnel and third-party professionals with whom we consult regarding complex accounting applications. 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 Control over Financial Reporting

There were no changes in our internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

None

Item 1A.

Risk Factors

Factors that could cause our actual results to differ materially from those in this report include the risk factors described in our Annual Report on Form ~~10-KA~~10-K filed with the SEC. As of the date of this Report, there have been no material changes to the risk factors disclosed in our Annual Report on Form ~~10-KA~~10-K filed with the SEC.

We have identified a material weakness in our internal control over financial reporting. This material weakness could continue to adversely affect our ability to report our results of operations and financial condition accurately and in a timely manner.

Our management is responsible for establishing and maintaining adequate internal control over financial reporting designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Our management is likewise required, on a quarterly basis, to evaluate the effectiveness of our internal controls and to disclose any changes and material weaknesses identified through such evaluation in those internal controls. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

As described elsewhere in this Quarterly Report, we identified a material weakness in our internal control over financial reporting related to the accounting for a significant and unusual transaction related to the improper valuation of our Class A common stock subject to possible redemption at the closing of our initial public offering. As a result of this material weakness, our management concluded that our internal control over financial reporting was not effective as of September 30, 2021. This material weakness resulted in a material misstatement of the initial carrying value of the Class A common stock subject to possible redemption for the affected periods.

To respond to this material weakness, we plan to increase communication among our personnel and third-party professionals with whom we consult regarding complex accounting applications. 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. For a discussion of management’s consideration of the material weakness identified related to our accounting for a significant and unusual transaction related to the improper valuation of our Class A common stock subject to possible redemption, see Note 2 to the accompanying condensed financial statements, as well as Part I, Item 4: Controls and Procedures included in this Quarterly Report.

Any failure to maintain such internal control could adversely impact our ability to report our financial position and results from operations on a timely and accurate basis. If our financial statements are not accurate, investors may not have a complete understanding of our operations. Likewise, if our financial statements are not filed on a timely basis, we could be subject to sanctions or investigations by the stock exchange on which our common stock is listed, the SEC or other regulatory authorities. In either case, there could result a material adverse effect on our business. Ineffective internal controls could also cause investors to lose confidence in our reported financial information, which could have a negative effect on the trading price of our stock.

We can give no assurance that the measures we have taken and plan to take in the future will remediate the material weakness identified or that any additional material weaknesses or restatements of financial results will not arise in the future due to a failure to implement and maintain adequate internal control over financial reporting or circumvention of these controls. In addition, even if we are successful in strengthening our controls and procedures, in the future those controls and procedures may not be adequate to prevent or identify irregularities or errors or to facilitate the fair presentation of our financial statements.

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Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

On December 11, 2020, we consummated the Initial Public Offering of 28,750,000 Units. The Units were sold at an offering price of $10.00 per unit, generating total gross proceeds of $287,500,000. The securities in the offering were registered under the Securities Act on registration statement on Form S-1 (Nos. 333-250630 and 333-251205). The Securities and Exchange Commission declared the registration statements effective on December 8, 2020.

Simultaneous with the consummation of the Initial Public Offering, the Company consummated the sale of ~~private placement warrants of~~(i) an aggregate of 8,075,000 Private Placement Warrants to the Sponsor at a price of $1.00 per Private Placement Warrant, generating total proceeds of ~~$8,075,000.~~ $8,075,000 and (ii) 2,500,000 Private Placement Units to CAVU at a price of $10.00 per Private Placement Unit, generating gross proceeds of $25,000,000.

The Private Placement Warrants are identical to the warrants underlying the Units sold in the Initial Public Offering, except that the Private Warrants are not transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions. On February 15, 2022, the Sponsor sold an aggregate of 2,005,243 of its Private Placement Warrants to the Investors.

Each Private Placement Unit consists of one Private Placement Share and one-half of one redeemable warrant (“CAVU Private Placement Warrant”). Each whole CAVU Private Placement Warrant will entitle the holder to purchase one share of Class A common stock at a price of $11.50 per share. The issuance was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

~~The~~ On February 15, 2022, CAVU sold the Private ~~Warrants are identical~~Placement Units to the warrants underlying the Units sold in the Initial Public Offering, except that the Private Warrants are not transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.Investors.

We paid a total of $5,750,000 in underwriting discounts and commissions and $505,665 for other costs and expenses and deferred an additional $10,062,500 of underwriting fees related to the Initial Public Offering.

For a description of the use of the proceeds generated in our Initial Public Offering, see Part I, Item 2 of this Form 10-Q.

Item 3.

Defaults Upon Senior Securities

None

Item 4.

Mine Safety Disclosures

None

Item 5.

Other Information

None

Item 6.

Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

No.		Description of Exhibit
10.1		Form of Share Purchase Agreement, dated February 15, 2022, between HumanCo Acquisition Corp., HumanCo Acquisition Holdings, LLC and each of the Investors (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on February 18, 2022 (File No. 001-39769))
10.2		Amendment No. 1 to Letter Agreement, dated February 15, 2022, by and among HumanCo Acquisition Corp., HumanCo Acquisition Holdings, LLC, HMCO Acquisition, LLC, CAVU Venture Partners III, LP and the insiders named therein (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed on February 18, 2022 (File No. 001-39769))
10.3		Waiver of Transfer Restrictions, dated February 15, 2022, by HumanCo Acquisition Corp. and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed on February 18, 2022 (File No. 001-39769))
10.4		Registration Rights Agreement, dated February 15, 2022, by and among HumanCo Acquisition Corp. and each of the Investors (incorporated by reference to Exhibit 10.4 to the Company’s Current Report on Form 8-K, filed on February 18, 2022 (File No. 001-39769))
10.5		Promissory Note, dated February 15, 2022, issued by HumanCo Acquisition Corp. to HumanCo Acquisition Holdings, LLC (incorporated by reference to Exhibit 10.5 to the Company’s Current Report on Form 8-K, filed on February 18, 2022 (File No. 001-39769))
31.1*		Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**		Certification of Principal Executive Officer 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*		XBRL Instance Document
101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document
101.SCH*		XBRL Taxonomy Extension Schema Document
101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document

*	Filed herewith.
**	Furnished herewith

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~~SIGNATURES~~SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	HUMANCO ACQUISITION CORP.

Date: ~~January 25,~~May 16, 2022	By:	/s/ Ross Berman
	Name:	Ross Berman
	Title:	Chief Executive Officer
		(Principal Executive Officer)

Date: ~~January 25,~~May 16, 2022	By:	/s/ Amy Zipper
	Name:	Amy Zipper
	Title:	Chief Operating Officer
		(Principal Financial and Accounting Officer)

			Page
Part I. Financial Information			1
	Item 1. Interim Financial Statements		1
		Condensed Balance Sheets as of ~~September 30, 2021~~March 31, 2022 (Unaudited) and December 31, ~~2020~~2021	1
		~~Unaudited~~ Condensed Statements of Operations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 (Unaudited)	2
		~~Unaudited~~ Condensed ~~Statement~~Statements of Changes in Stockholders’ Deficit for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2022 and 2021 (Unaudited)	3
		~~Unaudited~~ Condensed ~~Statement~~Statements of Cash Flows for the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and 2021 (Unaudited)	4
		Notes to Condensed Financial Statements (Unaudited)	5
	Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		1615
	Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk		18
	Item 4. Controls and Procedures		18
Part II. Other Information			18
	Item 1. Legal Proceedings		18
	Item 1A. Risk Factors		18
	Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		19
	Item 3. Defaults Upon Senior Securities		19
	Item 4. Mine Safety Disclosures		19
	Item 5. Other Information		19
	Item 6. Exhibits		19
Part III. Signatures			20

Balance Sheet as of March 31, 2021 (unaudited)	As Previously Reported			Adjustment			As Restated
Class A common stock subject to possible redemption	$	267,862,310		$	19,637,690		$	287,500,000
Class A common stock	$	446		$	(196	)	$	250
Additional paid-in capital	$	13,991,686		$	(13,991,686	)	$	0
Accumulated deficit	$	(8,992,841	)	$	(5,645,808	)	$	(14,638,649	)
Total stockholders’ equity (deficit)	$	5,000,010		$	(19,637,690	)	$	(14,637,680	)
Number of Class A shares subject to possible redemption		26,786,231			1,963,769			28,750,000

Balance Sheet as of June 30, 2021 (unaudited)	As Previously Reported			Adjustment			As Restated
Class A common stock subject to possible redemption	$	270,452,900		$	17,047,100		$	287,500,000
Class A common stock	$	420		$	(170	)	$	250
Additional paid-in capital	$	11,401,122		$	(11,401,122	)	$	0
Accumulated deficit	$	(6,402,257	)	$	(5,645,808	)	$	(12,048,065	)
Total stockholders’ equity (deficit)	$	5,000,004		$	(17,047,100	)	$	(12,047,096	)
Number of Class A shares subject to possible redemption		27,045,290			1,704,710			28,750,000

Statement of Operations for the Three Months March 31, 2021 (unaudited)	As Previously Reported			Adjustment			As Restated
Weighted average shares outstanding, Class A common stock		28,750,000			2,500,000			31,250,000
Basic and diluted earnings per share, Class A common stock	$	0		$	0.01		$	0.01
Weighted average shares outstanding, Class B common stock		9,687,500			(2,500,000	)		7,187,500
Basic and diluted earnings per share, Class B common stock	$	0.03		$	(0.02	)	$	0.01

Statement of Operations for the Three Months June 30, 2021 (unaudited)	As Previously Reported			Adjustment			As Restated
Weighted average shares outstanding, Class A common stock		28,750,000			2,500,000			31,250,000
Basic and diluted earnings per share, Class A common stock	$	0		$	0.07		$	0.07
Weighted average shares outstanding, Class B common stock		9,687,500			(2,500,000	)		7,187,500
Basic and diluted earnings per share, Class B common stock	$	0.27		$	(0.20	)	$	0.07

Statement of Operations for the Six Months June 30, 2021 (unaudited)	As Previously Reported			Adjustment			As Restated
Weighted average shares outstanding, Class A common stock		28,750,000			2,500,000			31,250,000
Basic and diluted earnings per share, Class A common stock	$	0		$	0.07		$	0.07
Weighted average shares outstanding, Class B common stock		9,687,500			(2,500,000	)		7,187,500
Basic and diluted earnings per share, Class B common stock	$	0.30		$	(0.23	)	$	0.07

Statement of Cash Flows for the Three Months March 31, 2021 (audited)	As Previously Reported			Adjustment			As Restated
Non-Cash investing and financing activities:
Change in value of Class A common stock subject to possible redemption	$	277,110		$	(277,110	)	$	0

Statement of Cash Flows for the Six Months June 30, 2021 (audited)	As Previously Reported			Adjustment			As Restated
Non-Cash investing and financing activities:
Change in value of Class A common stock subject to possible redemption	$	2,687,700		$	(2,867,700	)	$	0

	Held-To-Maturity		Amortized Cost				Gross Holding Loss				Fair Value
December 31, 2020	U.S. Treasury Securities (Matured on 3/11/2021)		$	312,507,938			$	(10,694	)		$	312,497,244

	December 31, 2020
Risk-free interest rate		0.57	%
Expected Term		6.45
Dividend yield		0.00	%
Expected volatility		17.5	%
Exercise price	$	11.50
Unit Price	$	10.36