☒ | 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 | 001-39639 | 98-1556204 | ||
(State or other jurisdiction of | (Commission File Number) | (IRS Employer Identification No.) |
1450 Brickell Avenue, 31st Floor Miami, FL | 33131 | |||
(Address | (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-third of one redeemable warrant | HIGA.U | New York Stock Exchange | ||||
Class A ordinary shares included as part of the units | HIGA | New York Stock Exchange | ||||
Redeemable warrants included as part of the units | HIGA WS | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | |||||||||
Item 1. | |||||||||
3 | |||||||||
3 | |||||||||
4 | |||||||||
5 | |||||||||
6 | |||||||||
Item 2. | 17 | ||||||||
Item 3. | |||||||||
Item 4. | |||||||||
Item 1. | |||||||||
Item 1A. | |||||||||
Item 2. | |||||||||
Item 3. | |||||||||
Item 4. | |||||||||
Item 5. | |||||||||
Item 6. | 21 | ||||||||
22 | |||||||||
Item 1. | Condensed Financial Statements (unaudited) |
September 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 4,386 | $ | 30,103 | ||||
Prepaid expenses | 609,967 | 1,096,949 | ||||||
Total current assets | 614,353 | 1,127,052 | ||||||
Investments held in Trust Account | 363,978,513 | 363,951,287 | ||||||
Total assets | $ | 364,592,866 | $ | 365,078,339 | ||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,615,714 | $ | 58,206 | ||||
Accrued expenses | 289,009 | 98,579 | ||||||
Due to related party | 21,683 | 0 | ||||||
Total current liabilities | 1,926,406 | 156,785 | ||||||
Deferred underwriting commissions | 12,738,075 | 12,738,075 | ||||||
Derivative warrant liabilities | 12,573,087 | 23,995,840 | ||||||
Total liabilities | 27,237,568 | 36,890,700 | ||||||
Commitments and Contingencies (Note 6) | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, 36,394,500 shares at redemption value of $10 per share | 363,945,000 | 363,945,000 | ||||||
Shareholders’ Deficit | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 950,000,000 shares authorized; NaN issued or outstanding (excluding 36,394,500 shares subject to possible redemption) | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 95,000,000 shares authorized; 9,098,625 shares issued and outstanding | 910 | 910 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (26,590,612 | ) | (35,758,271 | ) | ||||
Total shareholders’ deficit | (26,589,702 | ) | (35,757,361 | ) | ||||
Total Liabilities and Shareholders’ Deficit | $ | 364,592,866 | $ | 365,078,339 | ||||
June 30, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 3,937 | $ | 4,311 | ||||
Prepaid expenses | 189,241 | 495,072 | ||||||
Total current assets | 193,178 | 499,383 | ||||||
Investments held in Trust Account | 364,482,454 | 363,987,687 | ||||||
Total Assets | $ | 364,675,632 | $ | 364,487,070 | ||||
LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION, AND SHAREHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 156,812 | $ | 645,385 | ||||
Due to related party | 1,645,811 | 1,202,797 | ||||||
Accrued expenses | 1,259,523 | 579,866 | ||||||
Total current liabilities | 3,062,146 | 2,428,048 | ||||||
Deferred underwriting commissions | 12,738,075 | 12,738,075 | ||||||
Derivative warrant liabilities | 1,833,575 | 12,822,204 | ||||||
Total liabilities | 17,633,796 | 27,988,327 | ||||||
Commitments and Contingencies (Note 4) | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 36,394,500 shares at $10.01 and 10.00 per share as of June 30, 2022 and December 31, 2021, respectively (1) | 364,382,453 | 363,945,000 | ||||||
Shareholders’ deficit | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 950,000,000 shares authorized; 0ne issued or outstanding (excluding 36,394,500 shares subject to possible redemption) (1) | — | — | ||||||
Class B ordinary shares, $0.0001 par value; 95,000,000 shares authorized; 9,098,625 shares issued and outstanding | 910 | 910 | ||||||
Additional paid-in capital(1) | — | — | ||||||
Accumulated deficit (1) | (17,341,527 | ) | (27,447,167 | ) | ||||
Total shareholders’ deficit (1) | (17,340,617 | ) | (27,446,257 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption, and Shareholders’ Deficit | $ | 364,675,632 | $ | 364,487,070 | ||||
(1) | June 30, 2021 values were restated in Note 2 of the Company’s form 10-Q/A for September 30, 2021 as filed with the SEC on December 29, 2021. |
For The Three Months Ended June 30, 2022 | For The Three Months Ended June 30, 2021 | For The Six Months Ended June 30, 2022 | For The Six Months Ended June 30, 2021 | |||||||||||||
General and administrative expenses | $ | 505,983 | $ | 549,830 | $ | 880,303 | $ | 1,836,085 | ||||||||
Administrative expenses – related party | 30,000 | 30,000 | 60,000 | 60,000 | ||||||||||||
Loss from operations | (535,983 | ) | (579,830 | ) | (940,303 | ) | (1,896,085 | ) | ||||||||
Change in fair value of derivative warrant liabilities | 4,548,219 | (1,648,560 | ) | 10,988,629 | 3,113,970 | |||||||||||
Interest income from investments held in Trust Account | 462,318 | 9,075 | 494,767 | 18,049 | ||||||||||||
Net Income (loss) | $ | 4,474,554 | $ | (2,219,315 | ) | $ | 10,543,093 | $ | 1,235,934 | |||||||
Weighted average shares outstanding of Class A ordinary shares, basic and diluted (1) | 36,394,500 | 36,394,500 | 36,394,500 | 36,394,500 | ||||||||||||
Basic and diluted net income (loss) per share of Class A ordinary shares (1) | $ | 0.10 | $ | (0.05 | ) | $ | 0.23 | $ | 0.03 | |||||||
Weighted average shares outstanding of Class B ordinary shares, basic and diluted (1) | 9,098,625 | 9,098,625 | 9,098,625 | 9,098,625 | ||||||||||||
Basic and diluted net income (loss) per share of Class B ordinary shares (1) | $ | 0.10 | $ | (0.05 | ) | $ | 0.23 | $ | 0.03 | |||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For The Period From September 2, 2020 (inception) through September 30, 2020 | ||||||||||
General and administrative expenses | $ | 356,234 | $ | 2,192,319 | $ | 20,033 | ||||||
Administrative expenses - related party | 30,000 | 90,000 | 0 | |||||||||
Loss from operations | (386,234 | ) | (2,282,319 | ) | (20,033 | ) | ||||||
Interest income from investments held in Trust Account | 9,176 | 27,225 | 0 | |||||||||
Change in fair value of derivative warrant liabilities | 8,308,783 | 11,422,753 | 0 | |||||||||
Net Income (Loss) | $ | 7,931,725 | $ | 9,167,659 | $ | (20,033 | ) | |||||
Weighted average shares outstanding of Class A ordinary shares | 36,394,500 | 36,394,500 | 0 | |||||||||
Basic and diluted net income (loss) per share, Class A ordinary shares | $ | 0.17 | $ | 0.20 | $ | 0.00 | ||||||
Weighted average shares outstanding of Class B ordinary shares | 9,098,625 | 9,098,625 | 9,098,625 | |||||||||
Basic and diluted net income per share, Class B ordinary shares | $ | 0.17 | $ | 0.20 | $ | 0.00 | ||||||
(1) | June 30, 2021 values were restated in Note 2 of the Company’s form 10-Q/A for September 30, 2021 as filed with the SEC on December 29, 2021. |
Ordinary Shares | ||||||||||||||||||||
Class B | ||||||||||||||||||||
Shares | Amount | Additional Paid- In Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||
Balance - January 1, 2021 | 9,098,625 | $ | 910 | $ | 0 | $ | (35,758,271 | ) | $ | (35,757,361 | ) | |||||||||
Net income | — | — | 0— | 3,455,249 | 3,455,249 | |||||||||||||||
Balance - March 31, 2021 (unaudited) | 9,098,625 | $ | 910 | $ | 0 | $ | (32,303,022 | ) | $ | (32,302,112 | ) | |||||||||
Net loss | — | — | 0— | (2,219,315 | ) | (2,219,315 | ) | |||||||||||||
Balance - June 30, 2021 (unaudited) | 9,098,625 | $ | 910 | $ | 0 | $ | (34,522,337 | ) | $ | (34,521,427 | ) | |||||||||
Net income | — | — | 0— | 7,931,725 | 7,931,725 | |||||||||||||||
Balance - September 30, 2021 (unaudited) | 9,098,625 | $ | 910 | $ | 0 | $ | (26,590,612 | ) | $ | (26,589,702 | ) | |||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||
Class B | Paid-In | Accumulated | Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||
Balance as of January 1, 2022 | 9,098,625 | $ | 910 | $ | — | $ | (27,447,167 | ) | $ | (27,446,257 | ) | |||||||||
Net income | — | — | — | 6,068,539 | 6,068,539 | |||||||||||||||
Balance as of March 31, 2022 (unaudited) | 9,098,625 | 910 | 0— | (21,378,628 | ) | (21,377,718 | ) | |||||||||||||
Accretion of Class A ordinary shares to redemption value | — | — | — | (437,453 | ) | (437,453 | ) | |||||||||||||
Net income | — | — | — | 4,474,554 | 4,474,554 | |||||||||||||||
Balance as of June 30, 2022 (unaudited) | 9,098,625 | $ | 910 | $ | — | $ | (17,341,527 | ) | $ | (17,340,617 | ) | |||||||||
Ordinary Shares | ||||||||||||||||||||
Class B | ||||||||||||||||||||
Shares | Amount | Additional In Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||
Balance as of September 3, 2020 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of ordinary shares to Sponsor | 9,098,625 | 910 | — | — | 910 | |||||||||||||||
Net loss | — | — | 0— | (20,033 | ) | (20,033 | ) | |||||||||||||
Balance as of September 30, 2020 (unaudited) | 9,098,625 | $ | 910 | $ | 0 | $ | (20,033 | ) | $ | (19,123 | ) | |||||||||
Ordinary Shares | Additional | Total | ||||||||||||||||||
Class B | Paid-In | Accumulated | Shareholders’ | |||||||||||||||||
Shares | Amount | Capital (1) | Deficit (1) | Deficit (1) | ||||||||||||||||
Balance as of January 1, 2021 | 9,098,625 | $ | 910 | $ | — | $ | (35,758,271 | ) | $ | (35,757,361 | ) | |||||||||
Net income | — | — | — | 3,455,249 | 3,455,249 | |||||||||||||||
Balance as of March 31, 2021 (unaudited) | 9,098,625 | 910 | 0— | (32,303,022 | ) | (32,302,112 | ) | |||||||||||||
Net loss | — | — | — | (2,219,315 | ) | (2,219,315 | ) | |||||||||||||
Balance as of June 30, 2021 (unaudited) | 9,098,625 | $ | 910 | $ | — | $ | (34,522,337 | ) | $ | (34,521,427 | ) | |||||||||
(1) | June 30, 2021 values were restated in Note 2 of the Company’s form 10-Q/A for September 30, 2021 as filed with the SEC on December 29, 2021. |
Nine Months Ended September 30, 2021 | For The Period From September 2, 2020 (inception) through September 30, 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 9,167,659 | $ | (20,033 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of derivative warrant liabilities | (11,422,753 | ) | — | |||||
Interest income from investments held in Trust Account | (27,225 | ) | — | |||||
General and administrative expenses paid by Sponsor in exchange for issuance of Class B ordinary shares | — | 20,033 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 486,981 | — | ||||||
Accounts payable | 1,557,508 | — | ||||||
Accrued expenses | 190,430 | — | ||||||
Net cash used in operating activities | (47,400 | ) | 0 | |||||
Cash Flows from Financing Activities: | ||||||||
Advances from related party | 21,683 | — | ||||||
Net cash provided by financing activities | 21,683 | — | ||||||
Net decrease in cash | (25,717 | ) | — | |||||
Cash - beginning of period | 30,103 | — | ||||||
Cash - end of period | $ | 4,386 | $ | — | ||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||
Deferred offering costs included in accounts payable | $ | $ | 30,255 | |||||
Deferred offering costs included in accrued expenses | $ | $ | 259,000 | |||||
Deferred offering costs paid through promissory note — related party | $ | $ | 206,500 | |||||
Deferred offering costs paid through the issuance of ordinary shares to Sponsor | $ | $ | 25,000 | |||||
For the Six | For the Six | |||||||
Months Ended | Months Ended | |||||||
June 30, 2022 | June 30, 2021 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 10,543,093 | $ | 1,235,934 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Interest income from investments held in Trust Account | (494,767 | ) | (18,049 | ) | ||||
Change in fair value of derivative warrant liabilities | (10,988,629 | ) | (3,113,970 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 305,831 | 338,702 | ||||||
Accounts payable | (488,573 | ) | 1,363,387 | |||||
Accrued expenses | 679,657 | 146,671 | ||||||
Due to related party | 443,014 | 21,683 | ||||||
Net cash used in operating activities | (374 | ) | (25,642 | ) | ||||
Net decrease in cash | (374 | ) | (25,642 | ) | ||||
Cash - beginning of period | 4,311 | 30,103 | ||||||
Cash - end of period | $ | 3,937 | $ | 4,461 | ||||
Supplemental disclosure of noncash investing and financing activities: | ||||||||
Accretion of Class A ordinary shares to redemption value | $ | 437,453 | $ | — | ||||
As of March 31, 2021 | ||||||||||||
Condensed Balance Sheet | As Previously Reported | Restatement Adjustment | As Restated | |||||||||
Class A ordinary shares subject to possible redemption | $ | 326,642,880 | $ | 37,302,120 | $ | 363,945,000 | ||||||
Shareholders’ Equity | ||||||||||||
Class A ordinary shares, $0.0001 par value | $ | 373 | $ | (373 | ) | $ | — | |||||
Class B ordinary shares, $0.0001 par value | $ | 910 | $ | — | $ | 910 | ||||||
Additional paid-in capital | $ | 11,186,032 | $ | (11,186,032 | ) | $ | — | |||||
Accumulated deficit | $ | (6,187,307 | ) | $ | (26,115,715 | ) | $ | (32,303,022 | ) |
Three Months Ended March 31, 2021 | ||||||||||||
Condensed Statement of Operations | As Previously Reported | Restatement Adjustment | As Restated | |||||||||
Weighted average shares outstanding of Class A ordinary shares | 36,394,500 | — | 36,394,500 | |||||||||
Basic and diluted net income per ordinary share, Class A | $ | — | $ | 0.08 | $ | 0.08 | ||||||
Weighted average shares outstanding of Class B ordinary shares | 9,098,625 | — | 9,098,625 | |||||||||
Basic and diluted net loss per ordinary share, Class B | $ | 0.38 | $ | (0.30 | ) | $ | 0.08 |
As of June 30, 2021 | ||||||||||||
Condensed Balance Sheet | As Previously Reported | Restatement Adjustment | As Restated | |||||||||
Class A ordinary shares subject to possible redemption | $ | 324,423,570 | $ | 39,521,430 | $ | 363,945,000 | ||||||
Shareholders’ equity (deficit) | ||||||||||||
Class A ordinary shares, $0.0001 par value | $ | 395 | $ | (395 | ) | $ | — | |||||
Class B ordinary shares, $0.0001 par value | $ | 910 | $ | — | $ | 910 | ||||||
Additional paid-in capital | $ | 13,405,320 | $ | (13,405,320 | ) | $ | — | |||||
Accumulated deficit | $ | (8,406,622 | ) | $ | (26,115,715 | ) | $ | (34,522,337 | ) |
Three Months Ended June 30, 2021 | ||||||||||||
Condensed Statement of Operations | As Previously Reported | Restatement Adjustment | As Restated | |||||||||
Weighted average shares outstanding of Class A ordinary shares | 36,394,500 | — | 36,394,500 | |||||||||
Basic and diluted net loss per ordinary share, Class A | $ | — | $ | (0.05 | ) | $ | (0.05 | ) | ||||
Weighted average shares outstanding of Class B ordinary shares | 9,098,625 | — | 9,098,625 | |||||||||
Basic and diluted net loss per ordinary share, Class B | $ | (0.24 | ) | $ | 0.19 | $ | (0.05 | ) |
Six Months Ended June 30, 2021 | ||||||||||||
Condensed Statement of Operations | As Previously Reported | Restatement Adjustment | As Restated | |||||||||
Weighted average shares outstanding of Class A ordinary shares | 36,394,500 | — | 36,394,500 | |||||||||
Basic and diluted net income per ordinary share, Class A | $ | — | $ | 0.03 | $ | 0.03 | ||||||
Weighted average shares outstanding of Class B ordinary shares | 9,098,625 | — | 9,098,625 | |||||||||
Basic and diluted net loss per ordinary share, Class B | $ | 0.13 | $ | (0.10 | ) | $ | 0.03 |
For The Three Months Ended June 30, 2022 | For The Three Months Ended June 30, 2021 | For The Six Months Ended June 30, 2022 | For The Six Months Ended June 30, 2021 | |||||||||||||
Redeemable Class A Ordinary Shares | ||||||||||||||||
Numerator: Net income (loss) allocable to Redeemable Class A Ordinary Shares | $ | 3,579,643 | $ | (1,775,452 | ) | $ | 8,434,474 | $ | 988,747 | |||||||
Denominator: Weighted Average Share Outstanding, Redeemable Class A Ordinary Shares | 36,394,500 | 36,394,500 | 36,394,500 | 36,394,500 | ||||||||||||
Basic and diluted net income (loss) per share, Class A subject to possible redemption | $ | 0.10 | $ | (0.05 | ) | $ | 0.23 | $ | 0.03 | |||||||
Non-Redeemable Class B Ordinary Shares | ||||||||||||||||
Numerator: Net income (loss) allocable to non-redeemable Class B Ordinary Shares | $ | 894,911 | $ | (443,863 | ) | $ | 2,108,619 | $ | 247,187 | |||||||
Denominator: Weighted Average Non-Redeemable Class B Ordinary Shares | 9,098,625 | 9,098,625 | 9,098,625 | 9,098,625 | ||||||||||||
Basic and diluted net income (loss) per share, Class B non-redeemable ordinary shares | $ | 0.10 | $ | (0.05 | ) | $ | 0.23 | $ | 0.03 | |||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Marketable securities held in Trust Account | $ | 364,482,454 | $ | — | $ | — | $ | 364,482,454 | ||||||||
Liabilities: | ||||||||||||||||
Public Warrants | $ | 1,214,363 | $ | — | $ | — | $ | 1,214,363 | ||||||||
Private Placement Warrants | — | 619,212 | — | 619,212 | ||||||||||||
Total liabilities | $ | 1,214,363 | $ | 619,212 | $ | — | $ | 1,833,575 | ||||||||
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 363,978,513 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public | $ | 8,658,014 | $ | — | $ | — | ||||||
Derivative warrant liabilities - Private | $ | — | $ | 3,915,073 | $ | — |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account | $ | 363,951,287 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public | $ | 15,892,270 | $ | — | $ | — | ||||||
Derivative warrant liabilities - Private | $ | — | $ | 8,103,570 | $ | — |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Marketable securities held in Trust Account | $ | 363,987,687 | $ | — | $ | — | $ | 363,987,687 | ||||||||
Liabilities: | ||||||||||||||||
Public Warrants | $ | 8,492,050 | $ | — | $ | — | $ | 8,492,050 | ||||||||
Private Placement Warrants | — | 4,330,154 | — | 4,330,154 | ||||||||||||
Total liabilities | $ | 8,492,050 | $ | 4,330,154 | $ | — | $ | 12,822,204 | ||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 3. | Defaults upon Senior Securities |
Item 4. | Mine Safety Disclosures. |
Item 5. | Other Information. |
Item 6. | Exhibits. |
* |
Incorporated by reference to Exhibit 3.1 to the registrant’s Current Report on Form 8-K filed with the SEC |
Dated: | H.I.G. ACQUISITION CORP. | |||||||
By: | /s/ Timur Akazhanov | |||||||
Name: Timur Akazhanov | ||||||||
Title: | Chief Financial Officer |