☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Cayman Islands | 001-40272 | 98-1578357 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||
200 Clarendon Boston, MA | 02116 | |||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Units, each consisting of one Class A Ordinary Share, $0.0001 par value, and one redeemable warrant | ACTDU | The Nasdaq Stock Market LLC | ||
Class A Ordinary Shares included as part of the units | ACTD | The Nasdaq Stock Market LLC | ||
Redeemable warrants | ACTDW | The Nasdaq Stock Market LLC | ||
units, each whole warrant exercisable for one Class A Ordinary Share at an exercise price of $11.50 |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page No. | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 19 | |||||
Item 3. | ||||||
Item 4. | 23 | |||||
Item 1. | 23 | |||||
Item 1A. | 23 | |||||
Item 2. | ||||||
Item 3. | 24 | |||||
Item 4. | 24 | |||||
Item 5. | 24 | |||||
Item 6. | 2 5 | |||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 2,797,895 | $ | 1,092,857 | ||||
Prepaid expenses | 1,409,464 | 1,041,828 | ||||||
Total current assets | 4,207,359 | 2,134,685 | ||||||
Investments held in Trust Account | 311,163,203 | 311,171,488 | ||||||
Total Assets | $ | 315,370,562 | $ | 313,306,173 | ||||
Liabilities and Shareholders’ Deficit: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,694,343 | $ | 200,000 | ||||
Accrued expenses | 93,534 | 77,565 | ||||||
Accrued expenses-related party | 10,000 | |||||||
Total current liabilities | 1,797,877 | 277,565 | ||||||
Deferred legal fees | 592,358 | |||||||
Deferred underwriting commissions | 10,890,707 | 10,890,707 | ||||||
Derivative warrant liabilities | 14,724,600 | 16,991,180 | ||||||
Total liabilities | 27,413,184 | 28,751,810 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption; 31,116,305 shares at redemption value of $10.00 | 311,163,050 | 311,163,050 | ||||||
Shareholders’ Deficit: | ||||||||
S hareholders’D eficit: | ||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; NaN issued and outstanding | 0 | 0 | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized (excluding 31,116,305 shares subject to possible redemption) | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 7,779,076 shares issued and outstanding | 778 | 778 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (23,206,450 | ) | (26,609,465 | ) | ||||
Total shareholders’ deficit | (23,205,672 | ) | (26,608,687 | ) | ||||
Total Liabilities and Shareholders’ Deficit | $ | 315,370,562 | $ | 313,306,173 | ||||
For the three months ended September 30, 2021 | For the period January 13, 2021 (inception) through September 30, 2021 | |||||||||||
General and administrative expenses | $ | 128,476 | $ | 750,307 | $ | 1,273,196 | ||||||
Loss from operations | (128,476 | ) | (750,307 | ) | (1,273,196 | ) | ||||||
Other income (expense) | ||||||||||||
Change in fair value of derivative warrant liabilities | 271,160 | 8,958,980 | (1,995,420 | ) | ||||||||
Financing costs - warrant liabilities | (462,620 | ) | 0 | (462,620 | ) | |||||||
Net gain on investments held in Trust Account | 153 | 3,981 | 8,438 | |||||||||
Total other income (expense) | (191,307 | ) | 8,962,961 | (2,449,602 | ) | |||||||
Net loss | $ | (319,783 | ) | $ | 8,212,654 | $ | (3,722,798 | ) | ||||
Weighted average shares outstanding of Class A ordinary shares, basic and diluted | 3,067,805 | |||||||||||
Weighted average shares outstanding of Class A common stock, basic and diluted | 31,116,305 | 23,275,976 | ||||||||||
Basic and diluted net loss per ordinary share | $ | (0.03 | ) | |||||||||
Basic and diluted net Income (loss) per ordinary share | $ | 0.21 | $ | (0.12 | ) | |||||||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted | 6,964,134 | |||||||||||
Weighted average shares outstanding of Class B common stock, basic and diluted | 7,779,076 | 7,551,277 | ||||||||||
Basic and diluted net loss per ordinary share | $ | (0.03 | ) | |||||||||
Basic and diluted net Income (loss) per ordinary share | $ | 0.21 | $ | (0.12 | ) | |||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||
Class B | Paid-in | Accumulated | Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance—January 13, 2021 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of Class B ordinary shares to Sponsor | 7,906,250 | 791 | 24,209 | — | 25,000 | |||||||||||||||
Accretion on Class A ordinary shares subject to possible redemption | — | — | (199,953 | ) | (22,886,667 | ) | (23,086,620 | ) | ||||||||||||
Sale of private placement warrants to Sponsor less fair value of private warrants | 175,731 | 175,731 | ||||||||||||||||||
Forfeiture of Class B ordinary shares from Sponsor | (127,174 | ) | (13 | ) | 13 | — | — | |||||||||||||
Net loss | — | — | — | (319,783 | ) | (319,783 | ) | |||||||||||||
Balance—March 31, 2021 (unaudited) | 7,779,076 | $ | 778 | $ | — | $ | (23,206,450 | ) | $ | (23,205,672 | ) | |||||||||
Net loss | — | — | — | (11,615,669 | ) | (11,615,669 | ) | |||||||||||||
Balance—June 30, 2021 (unaudited) | 7,779,076 | $ | 778 | $ | — | $ | (34,822,119 | ) | $ | (34,821,341 | ) | |||||||||
Net loss | — | — | — | 8,212,654 | 8,212,654 | |||||||||||||||
Balance—September 30, 2021 (unaudited) | 7,779,076 | $ | 778 | $ | — | $ | (26,609,465 | ) | $ | (26,608,687 | ) | |||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||
Class B | Paid-in | Accumulated | Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance - January 13, 2021 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of Class B ordinary shares to Sponsor | 7,906,250 | 791 | 24,209 | — | 25,000 | |||||||||||||||
Accretion on Class A ordinary shares subject to possible redemption | — | — | (199,953 | ) | (22,886,667 | ) | (23,086,620 | ) | ||||||||||||
Sale of private placement warrants to Sponsor less fair value of private warrants | — | — | 175,731 | — | 175,731 | |||||||||||||||
Forfeiture of Class B ordinary shares from Sponsor | (127,174 | ) | (13 | ) | 13 | — | — | |||||||||||||
Net loss | — | — | — | (319,783 | ) | (319,783 | ) | |||||||||||||
Balance - March 31, 2021, as restated (unaudited) | 7,779,076 | $ | 778 | $ | 0 | $ | (23,206,450 | ) | $ | (23,205,672 | ) | |||||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (319,783 | ) | $ | (3,722,798 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
General and administrative expenses paid by related party in exchange for issuance of Class B ordinary shares | 25,000 | 25,000 | ||||||
General and administrative expenses paid by related party under promissory note | 26,800 | 26,800 | ||||||
Change in fair value of derivative warrant liabilities | (271,160 | ) | 1,995,420 | |||||
Financing costs - warrant liabilities | 462,620 | |||||||
Financing costs—warrant liabilities | 462,620 | |||||||
Net gain on investments held in Trust Account | (153 | ) | (8,438 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (1,409,464 | ) | (1,041,828 | ) | ||||
Accounts payable | 1,442,343 | |||||||
Accrued expenses | 23,534 | 7,565 | ||||||
Accrued expenses-related party | 10,000 | |||||||
Deferred legal fees | 592,358 | |||||||
Net cash used in operating activities | (10,263 | ) | (1,663,301 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Cash deposited in Trust Account | (311,163,050 | ) | (311,163,050 | ) | ||||
Net cash used in investing activities | (311,163,050 | ) | (311,163,050 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from note payable to related party | 100 | 100 | ||||||
Repayment of note payable to related party | (171,742 | ) | (171,742 | ) | ||||
Proceeds received from initial public offering | 311,163,050 | 311,163,050 | ||||||
Proceeds received from private placement | 9,223,261 | 9,223,261 | ||||||
Offering costs paid | (6,243,461 | ) | (6,295,461 | ) | ||||
Net cash provided by financing activities | 313,971,208 | 313,919,208 | ||||||
Net increase in cash | 2,797,895 | 1,092,857 | ||||||
Cash - beginning of the period | 0 | |||||||
Cash—beginning of the period | 0 | |||||||
Cash - ending of the period | $ | 2,797,895 | ||||||
Cash—end of the period | $ | 1,092,857 | ||||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||
Offering costs included in accounts payable | $ | 252,000 | $ | 200,000 | ||||
Offering costs included in accrued expenses | $ | 70,000 | $ | 70,000 | ||||
Offering costs paid by related party under promissory note | $ | 144,842 | $ | 144,842 | ||||
Deferred underwriting commissions | $ | 10,890,707 | $ | 10,890,707 | ||||
Forfeiture of Class B ordinary shares from Sponsor | $ | 13 | $ | 13 |
As of March 25, 2021 | As Previously Reported | Warrant Adjustment | Temporary Equity Adjustment | As Restated | ||||||||||||
Total assets | $ | 314,189,950 | $ | — | $ | — | $ | 314,189,950 | ||||||||
Total current liabilities | $ | 525,842 | — | — | $ | 525,842 | ||||||||||
Deferred underwriting commissions | 10,890,707 | — | — | 10,890,707 | ||||||||||||
Derivative warrant liabilities | — | 14,995,760 | — | 14,995,760 | ||||||||||||
Total liabilities | 11,416,549 | 14,995,760 | — | 26,412,309 | ||||||||||||
Class A common stock subject to redemption | 297,773,400 | (14,995,760 | ) | 28,385,410 | 311,163,050 | |||||||||||
Preferred stock | 0 | 0 | 0 | — | ||||||||||||
Class A common stock | 134 | 150 | (284 | ) | — | |||||||||||
Class B common stock | 791 | — | — | 791 | ||||||||||||
Additional paid-in captial | 5,035,976 | 462,470 | — 5,498,446 | — | ||||||||||||
Accumulated deficit | (36,900 | ) | (462,620 | ) | (22,886,680 | ) | (23,386,200 | ) | ||||||||
Total stockholder’s equity | $ | 5,000,001 | $ | — | $ | (28,385,410 | ) | $ | (23,385,409 | ) | ||||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) | $ | 314,189,950 | $ | — | $ | — | $ | 314,189,950 | ||||||||
Class A ordinary shares subject to possible redemption | 29,777,340 | $ | (1,499,576 | ) | $ | 2,838,541 | 31,116,305 | |||||||||
Class A ordinary shares | 1,338 965 | $ | 1,499,576 | $ | (2,838,541 | ) | — |
March 31, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Class A ordinary shares subject to possible redemption | $ | 282,957,370 | $ | 28,205,680 | $ | 311,163,050 | ||||||
Class A ordinary shares—$0.0001 par value | 282 | (282 | ) | — | ||||||||
Additional paid-in-capital | 5,318,731 | (5,318,731 | ) | — | ||||||||
Accumulated deficit | (319,783 | ) | (22,886,667 | ) | (23,206,450 | ) | ||||||
Total Stockholders’ Equity (Deficit) | 5,000,008 | (28,205,680 | ) | (23,205,672 | ) | |||||||
Class A ordinary shares subject to possible redemption | 28,295,737 | 2,820,568 | 31,116,305 | |||||||||
Class A ordinary shares | 2,820,568 | (2,820,568 | ) | — |
Statement of changes in Shareholders’ Deficit for the period from January 13, 2021 (inception) through March 31, 2021 (unaudited) | As Previously Reported | Adjustment | As Restated | |||||||||
Sale of units in initial public offering, less fair value of public warrants | $ | 305,214,820 | $ | (305,214,820 | ) | $ | — | |||||
Offering costs | (17,138,390 | ) | 17,138,390 | — | ||||||||
Remeasurement of Class A ordinary shares subject to possible redemption | — | (23,086,620 | ) | (23,086,620 | ) | |||||||
Shares subject to possible redemption | (282,957,370 | ) | 282,957,370 | — |
Supplemental Disclosure of Noncash Financing Activities: | As Previously Reported | Adjustment | As Restated | |||||||||
Initial value of Class A ordinary shares subject to possible redemption | $ | 282,777,640 | $ | (282,777,640 | ) | $ | — | |||||
Change in value of Class A ordingary shares subject to possible redemption | 179,730 | (179,730 | ) | — |
For the period from January 13, 2021 (inception) through March 31, 2021: | Earnings per Share | |||||||||||
As Reported | Adjustment | As Adjusted | ||||||||||
Net loss | $ | (319,783 | ) | $ | — | $ | (319,783 | ) | ||||
Weighted average shares outstanding - Class A ordinary share | 28,282,899 | (25,215,094 | ) | 3,067,805 | ||||||||
Basic and dilued earnings per share - Class A ordinary shares | $ | — | $ | (0.03 | ) | $ | (0.03 | ) | ||||
Weighted average shares outstanding - Class B ordinary share | 7,243,737 | (279,603 | ) | 6,964,134 | ||||||||
Basic and dilued earnings per share - Class B ordinary shares | $ | (0.04 | ) | $ | 0.01 | $ | (0.03 | ) |
For the period from January 13, 2021 (inception) through March 31, 2021 | For the period January 13, 2021 | |||||||||||||||||||||||
Class A | Class B | For the Three Months Ended | (inception) through September 30, | |||||||||||||||||||||
Basic and diluted net income (loss) per ordinary share | ||||||||||||||||||||||||
September 30, 2021 | 2021 | |||||||||||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||||||||||
Basic and diluted net income (loss) per common share: | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Allocation of net income (loss) | $ | (97,791 | ) | $ | (221,992 | ) | $ | 6,570,123 | $ | 1,642,531 | $ | (2,810,882 | ) | $ | (911,916 | ) | ||||||||
Denominator: | ||||||||||||||||||||||||
Basic and diluted weighted average ordinary shares outstanding | 3,067,805 | 6,964,134 | ||||||||||||||||||||||
Basic and diluted weighted average common shares outstanding | 31,116,305 | 7,779,076 | 23,275,976 | 7,551,277 | ||||||||||||||||||||
Basic and diluted net income (loss) per ordinary share | $ | (0.03 | ) | $ | (0.03 | ) | ||||||||||||||||||
Basic and diluted net income (loss) per common share | $ | 0.21 | $ | 0.21 | $ | (0.12 | ) | $ | (0.12 | ) | ||||||||||||||
Gross Proceeds | $ | 311,163,050 | ||
Less: | ||||
Offering costs allocated to Class A shares subject to possible redemption | (17,138,390 | ) | ||
Proceeds allocated to Public Warrants at issuance | (5,948,230 | ) | ||
Plus: | ||||
Accretion on Class A ordinary shares subject to possible redemption amount | 23,086,620 | |||
Class A ordinary shares subject to possible redemption | $ | 311,163,050 | ||
Gross Proceeds | $ | 311,163,050 | ||
Less: | — | |||
Offering costs allocated to Class A shares subject to possible redemption | (17,138,390 | ) | ||
Proceeds allocated to Public Warrants at issuance | (5,948,230 | ) | ||
Plus: | ||||
Accretion on Class A ordinary shares subject to possible redemption amount | 22,086,620 | |||
Class A ordinary shares subject to possible redemption | $ | 311,163,050 | ||
Quoted | ||||||||||||||||||||||||
Prices | Significant | Significant | ||||||||||||||||||||||
in | Other | Other | ||||||||||||||||||||||
Active | Observable | Unobservable | ||||||||||||||||||||||
Markets | Inputs | Inputs | ||||||||||||||||||||||
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | (Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Investments held in Trust Account | $ | 311,163,203 | $ | — | $ | — | $ | 311,171,488 | $ | — | $ | — | ||||||||||||
Liabilities: | ||||||||||||||||||||||||
Derivative warrant liabilities—public | $ | — | $ | — | $ | 5,801,650 | ||||||||||||||||||
Derivative warrant liabilities—private | $ | — | $ | — | $ | 8,922,950 | ||||||||||||||||||
Derivative warrant liabilities-public | $ | 6,845,590 | $ | — | $ | — | ||||||||||||||||||
Derivative warrant liabilities-private | $ | — | $ | — | $ | 10,145,590 |
March 22, | September | |||||||||||||||
March 22, 2021 | As of March 31, 2021 | 2021 | 30, 2021 | |||||||||||||
Share price | $ | 9.81 | $ | 9.81 | $ | 9.81 | $ | 9.76 | ||||||||
Volatility | 14.3 | % | 14.0 | % | 14.3 | % | 15.5 | % | ||||||||
Expected life of the options to convert | 6.53 | 6.50 | 6.53 | 6.00 | ||||||||||||
Risk-free rate | 1.23 | % | 1.28 | % | 1.2 | % | 1.1 | % | ||||||||
Dividend yield | 0 | 0 | 0 | 0 |
Derivative warrant liabilities at January 13, 2021 (inception) | $ | 0 | ||
Issuance of Public and Private Warrants | 14,995,760 | |||
Change in fair value of derivative warrant liabilities | (271,160 | ) | ||
Derivative warrant liabilities at March 31, 2021 | $ | 14,724,600 | ||
Public | Private | Total | ||||||||||
Derivative warrant liabilities at January 13, 2021 (inception) | $ | 0 | $ | 0 | $ | 0 | ||||||
Issuance of Public and Private Warrants | 5,948,230 | 9,047,530 | 14,995,760 | |||||||||
Change in fair value of derivative warrant liabilities | (146,580 | ) | (124,580 | ) | (271,160 | ) | ||||||
Derivative warrant liabilities at March 31, 2021 | 5,801,650 | 8,922,950 | 14,724,600 | |||||||||
Change in fair value of derivative warrant liabilities | 4,653,430 | 6,572,130 | 11,225,560 | |||||||||
Transfer to Level 1 | (10,455,080 | ) | 0 | (10,455,080 | ) | |||||||
Derivative warrant liabilities at June 30, 2021 | 0 | 15,495,080 | 15,495,080 | |||||||||
Change in fair value of derivative warrant liabilities | 0 | (5,349,490 | ) | (5,349,490 | ) | |||||||
Derivative warrant liabilities at September 30, 2021 | $ | 0 | $ | 10,145,590 | $ | 10,145,590 | ||||||
ARCLIGHT CLEAN TRANSITION CORP. II | ||
By: | /s/ John F. Erhard | |
Name: | John F. Erhard | |
Title: | Chief Executive Officer |