☒ | 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 |
Delaware | 86-1418494 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
100 Crosby Street, Suite 201 New York, New York | 10012 | |
(Address Of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A common stock, $0.0001 par value | LHAA | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | 19 | |||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item | ||||||
Item 6. | 21 | |||||
Item 1. | Condensed Financial Statements |
M arch 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash | $ | 298,462 | $ | 625,442 | ||||
Prepaid expenses | 469,275 | 530,528 | ||||||
Total current assets | 767,737 | 1,155,970 | ||||||
Investments held in Trust Account | 222,703,101 | 222,680,678 | ||||||
Total Assets | $ | 223,470,838 | $ | 223,836,648 | ||||
Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 132,605 | $ | 46,685 | ||||
Accrued expenses | 214,534 | 172,000 | ||||||
Franchise tax payable | 64,160 | 194,023 | ||||||
Total current liabilities | 411,299 | 412,708 | ||||||
Deferred underwriting commissions | 7,793,165 | 7,793,165 | ||||||
Total liabilities | 8,204,464 | 8,205,873 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A common stock subject to possible redemption, $0.0001 par value; 22,266,185 shares issued and outstanding at redemption value of $10.00 per share at March 31, 2022 and December 31, 2021 | 222,661,850 | 222,661,850 | ||||||
Stockholders’ Deficit: | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaNissued or outstanding at March 31, 2022 and December 31, 2021 | 0— | 0— | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 685,324 shares issued and outstanding (excluding 22,266,185 shares subject to possible redemption) at March 31, 2022 and December 31, 2021 | 69 | 69 | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 5,566,546 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 557 | 557 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (7,396,102 | ) | (7,031,701 | ) | ||||
Total stockholders’ deficit | (7,395,476 | ) | (7,031,075 | ) | ||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit | $ | 223,470,838 | $ | 223,836,648 | ||||
Assets: | ||||
Current assets: | ||||
Cash | $ | 648,377 | ||
Prepaid expenses | 663,020 | |||
Total current assets | 1,311,397 | |||
Investments held in Trust Account | 222,675,973 | |||
Total Assets | $ | 223,987,370 | ||
Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit: | ||||
Current liabilities: | ||||
Accounts payable | $ | 8,387 | ||
Accrued expenses | 140,115 | |||
Franchise tax payable | 143,562 | |||
Total current liabilities | 292,064 | |||
Deferred underwriting commissions | 7,793,165 | |||
Total liabilities | 8,085,229 | |||
Commitments and Contingencies | 0 | |||
Class A common stock subject to possible redemption, $0.0001 par value; 22,266,185 shares issued and outstanding at a redemption value of $10.00 per share | 222,661,850 | |||
Stockholders’ Deficit: | ||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0— | |||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 685,324 non-redeemable shares issued and outstanding (excluding 22,266,185 shares subject to possible redemption) | 69 | |||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 5,566,546 shares issued and outstanding | 557 | |||
Additional paid-in capital | 0 | |||
Accumulated deficit | (6,760,335 | ) | ||
Total stockholders’ deficit | (6,759,709 | ) | ||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit | $ | 223,987,370 | ||
For The Three Months Ended September 30, 2021 | For The Period From January 12, 2021 (inception) through September 30, 2021 | |||||||
General and administrative expenses | $ | 297,434 | $ | 562,691 | ||||
Administrative expenses — related party | 30,000 | 68,387 | ||||||
Franchise tax expenses | 50,411 | 143,562 | ||||||
Loss from operations | (377,845 | ) | (774,640 | ) | ||||
Gain on investments held in Trust Account | 2,865 | 14,123 | ||||||
Net loss | $ | (374,980 | ) | $ | (760,517 | ) | ||
Weighted average shares outstanding of Class A common stock, basic and diluted | 22,951,509 | 18,614,216 | ||||||
Basic and diluted net loss per share, Class A common stock | $ | (0.01 | ) | $ | (0.03 | ) | ||
Weighted average shares outstanding of Class B common stock, basic and diluted | 5,566,546 | 5,459,482 | ||||||
Basic and diluted net loss per share, Class B common stock | $ | (0.01 | ) | $ | (0.03 | ) | ||
For The Three Months Ended March 31, 2022 | For The Period From January 12, 2021 (inception) through March 31, 2021 | |||||||
General and administrative expenses | $ | 308,007 | $ | 80,774 | ||||
Administrative expenses - related party | 30,000 | 8,387 | ||||||
Franchise tax expenses | 48,817 | 32,672 | ||||||
Loss from operations | (386,824 | ) | (121,833 | ) | ||||
Gain on investments held in Trust Account | 22,423 | 3,238 | ||||||
Net loss | $ | (364,401 | ) | $ | (118,595 | ) | ||
Weighted average shares outstanding of Class A common stock, basic and diluted | 22,951,509 | 7,434,996 | ||||||
Basic and diluted net loss per share, Class A common stock | $ | (0.01 | ) | $ | (0.01 | ) | ||
Weighted average shares outstanding of Class B common stock, basic and diluted | 5,566,546 | 5,183,529 | ||||||
Basic and diluted net loss per share, Class B common stock | $ | (0.01 | ) | $ | (0.01 | ) | ||
Common Stock | Total Stockholders’ Deficit | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-In Capital | Accumulated Deficit | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - December 31, 2021 | 685,324 | $ | 69 | 5,566,546 | $ | 557 | $ | — | $ | (7,031,701 | ) | $ | (7,031,075 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (364,401 | ) | (364,401 | ) | |||||||||||||||||||
Balance - March 31, 2022 (Unaudited) | 685,324 | $ | 69 | 5,566,546 | $ | 557 | $ | — | $ | (7,396,102 | ) | $ | (7,395,476 | ) | ||||||||||||||
Common Stock | Total Stockholders’ Deficit | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-In Capital | Accumulated Deficit | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - January 12, 2021 (inception) | — | $ | — | — | $ | — | $ | — | $ | — | $ | 0— | ||||||||||||||||
Issuance of Class B common stock to Sponsor | 0 | — | 5,750,000 | 575 | 24,425 | — | 25,000 | |||||||||||||||||||||
Sale of private placement shares to Sponsor in private placement | 685,324 | 69 | — | — | 6,853,171 | — | 6,853,240 | |||||||||||||||||||||
Forfeiture of Class B common stock | — | — | (183,454 | ) | (18 | ) | 18 | — | — | |||||||||||||||||||
Accretion of Class A common stock subject to possible redemption | — | — | — | — | (6,877,614 | ) | (5,999,818 | ) | (12,877,432 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (118,595 | ) | (118,595 | ) | |||||||||||||||||||
Balance - March 31, 2021 (Unaudited) | 685,324 | $ | 69 | 5,566,546 | $ | 557 | $ | — | $ | (6,118,413 | ) | $ | (6,117,787 | ) | ||||||||||||||
Common Stock | Total Stockholders’ Deficit | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-In Capital | Accumulated Deficit | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — January 12, 2021 (inception) | 0— | $ | — | — | $ | $ | — | $ | — | $ | 0— | |||||||||||||||||
Issuance of Class B common stock to Sponsor | 0— | — | 5,750,000 | 575 | 24,425 | — | 25,000 | |||||||||||||||||||||
Sale of private placement shares to Sponsor in private placement | 685,324 | 69 | — | — | 6,853,171 | — | 6,853,240 | |||||||||||||||||||||
Forfeiture of Class B common stock | — | — | (183,454 | ) | (18 | ) | 18 | — | — | |||||||||||||||||||
Accretion of Class A common stock subject to possible redemption | — | — | — | — | (6,877,614 | ) | (5,999,818 | ) | (12,877,432 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (118,595 | ) | (118,595 | ) | |||||||||||||||||||
Balance—March 31, 2021 (unaudited) (Restated, see Note 2) | 685,324 | 69 | 5,566,546 | 557 | — | (6,118,413 | ) | (6,117,787 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (266,942 | ) | (266,942 | ) | |||||||||||||||||||
Balance—June 30, 2021 (unaudited) (Restated, see Note 2) | 685,324 | 69 | 5,566,546 | 557 | — | (6,385,355 | ) | (6,384,729 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (374,980 | ) | (374,980 | ) | |||||||||||||||||||
Balance—September 30, 2021 (unaudited) | 685,324 | $ | 69 | 5,566,546 | $ | 557 | $ | — | $ | (6,760,335 | ) | $ | (6,759,709 | ) | ||||||||||||||
For The Three Months Ended March 31, 2022 | For The Period From January 12, 2021 (inception) through March 31, 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (364,401 | ) | $ | (118,595 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Gain on investments held in Trust Account | (22,423 | ) | (3,238 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 61,253 | (883,372 | ) | |||||
Accounts payable | 85,920 | 943,568 | ||||||
Accrued expenses | 42,534 | 4,321 | ||||||
Franchise tax payable | (129,863 | ) | 32,672 | |||||
Net cash used in operating activities | (326,980 | ) | (24,644 | ) | ||||
Cash Flows from Investing Activities | ||||||||
Cash deposited in Trust Account | — | (222,661,850 | ) | |||||
Net cash used in investing activities | — | (222,661,850 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Repayment of note payable to related party | — | (65,093 | ) | |||||
Proceeds from issuance of Class B common stock to Sponsor | — | 25,000 | ||||||
Proceeds received from initial public offering | — | 222,661,850 | ||||||
Proceeds received from private placement | — | 6,853,240 | ||||||
Offering costs paid | — | (4,630,880 | ) | |||||
Net cash provided by financing activities | — | 224,844,117 | ||||||
Net increase in cash | (326,980 | ) | 2,157,623 | |||||
Cash - beginning of the period | 625,442 | 0— | ||||||
Cash - end of the period | $ | 298,462 | $ | 2,157,623 | ||||
Supplemental disclosure of noncash activities: | ||||||||
Offering costs included in accounts payable | $ | — | $ | 318,294 | ||||
Offering costs included in accrued expenses | $ | — | $ | 70,000 | ||||
Offering costs paid by related party under promissory note | $ | — | $ | 65,093 | ||||
Deferred underwriting commissions in connection with the initial public offering | $ | — | $ | 7,793,165 | ||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (760,517 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Gain on investments held in Trust Account | (14,123 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (663,020 | ) | ||
Accounts payable | 8,387 | |||
Accrued expenses | 70,115 | |||
Franchise tax payable | 143,562 | |||
Net cash used in operating activities | (1,215,596 | ) | ||
Cash Flows from Investing Activities | ||||
Cash deposited in Trust Account | (222,661,850 | ) | ||
Net cash used in investing activities | (222,661,850 | ) | ||
Cash Flows from Financing Activities: | ||||
Repayment of note pay able to related party | (65,093 | ) | ||
Proceeds from issuance of Class B common stock to Sponsor | 25,000 | |||
Proceeds received from initial public offering | 222,661,850 | |||
Proceeds received from private placement | 6,853,240 | |||
Offering costs paid | (4,949,174 | ) | ||
Net cash provided by financing activities | 224,525,823 | |||
Net increase in cash | 648,377 | |||
Cash — beginning of the period | 0— | |||
Cash — end of the period | $ | 648,377 | ||
Supplemental disclosure of noncash activities: | ||||
Offering costs included in accrued expenses | $ | 70,000 | ||
Offering costs paid by related party under promissory note | $ | 65,093 | ||
Deferred underwriting commissions in connection with the initial public offering | $ | 7,793,165 | ||
As of March 31, 2021 (unaudited) | As Reported | Adjustment | As Restated | |||||||||
Total assets | $ | 225,706,083 | $ | — | $ | 225,706,083 | ||||||
Total liabilities | $ | 9,162,020 | $ | — | $ | 9,162,020 | ||||||
Class A common stock subject to redemption at $10.00 per share | $ | 211,544,060 | $ | 11,117,790 | $ | 222,661,850 | ||||||
Preferred stock | 0— | — | — | |||||||||
Class A common stock | 180 | (111 | ) | 69 | ||||||||
Class B common stock | 557 | — | 557 | |||||||||
Additional paid-in capital | 5,117,861 | (5,117,861 | ) | — | ||||||||
Accumulated deficit | (118,595 | ) | (5,999,818 | ) | (6,118,413 | ) | ||||||
Total stockholders’ equity (deficit) | $ | 5,000,003 | $ | (11,117,790 | ) | $ | (6,117,787 | ) | ||||
Total Liabilities, Class A common stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) | $ | 225,706,083 | $ | — | $ | 225,706,083 | ||||||
Shares of Class A common stock subject to redemption | 21,154,406 | 1,111,779 | 22,266,185 | |||||||||
Shares of Class A common stock | 1,797,103 | (1,111,779 | ) | 685,324 |
Three months ended March 31, 2021 (unaudited) | ||||||||||||
Supplemental Disclosure of Noncash Financing Activities | ||||||||||||
Initial value of Class A common stock subject to possible redemption | $ | 211,596,640 | $ | (211,596,640 | ) | $ | — | |||||
Change in value of Class A common stock subject to possible redemption | $ | (52,580 | ) | $ | 52,580 | | $ | — |
As of June 30, 2021 (unaudited) | As Reported | Adjustment | As Restated | |||||||||
Total assets | $ | 224,323,964 | $ | — | $ | 224,323,964 | ||||||
Total liabilities | $ | 8,046,843 | $ | — | $ | 8,046,843 | ||||||
Class A common stock subject to redemption at $10.00 per share | $ | 211,277,120 | $ | 11,384,730 | $ | 222,661,850 | ||||||
Preferred stock | 0— | — | — | |||||||||
Class A common stock | 182 | (113 | ) | 69 | ||||||||
Class B common stock | 557 | — | 557 | |||||||||
Additional paid-in capital | 5,384,799 | (5,384,799 | ) | — | ||||||||
Accumulated deficit | (385,537 | ) | (5,999,818 | ) | (6,385,355 | ) | ||||||
Total stockholders’ equity (deficit) | $ | 5,000,001 | $ | (11,384,730 | ) | $ | (6,384,729 | ) | ||||
Total Liabilities, Class A common stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) | $ | 224,323,964 | $ | — | $ | 224,323,964 | ||||||
Shares of Class A common stock subject to redemption | 21,127,712 | 1,138,473 | 22,266,185 | |||||||||
Shares of Class A common stock | 1,823,797 | (1,138,473 | ) | 685,324 |
Six months ended June 30, 2021 (unaudited) | ||||||||||||
Supplemental Disclosure of Noncash Financing Activities | ||||||||||||
Initial value of Class A common stock subject to possible redemption | $ | 211,596,640 | $ | (211,596,640 | ) | $ | — | |||||
Change in value of Class A common stock subject to possible redemption | $ | (319,520 | ) | $ | 319,520 | $ | — |
Earnings (Loss) Per Share | ||||||||||||
As Reported | Adjustment | As Restated | ||||||||||
Three Months Ended March 31, 2021 (unaudited) | ||||||||||||
Net loss | $ | (118,595 | ) | $ | — | $ | (118,595 | ) | ||||
Weighted average shares outstanding - Class A common stock | 22,266,185 | (14,831,189 | ) | 7,434,996 | ||||||||
Basic and diluted earnings per share - Class A common stock | $ | — | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Weighted average shares outstanding - Class B common stock | 5,405,535 | (222,006 | ) | 5,183,529 | ||||||||
Basic and diluted earnings per share - Class B common stock | $ | (0.02 | ) | $ | 0.01 | $ | (0.01 | ) |
Earnings (Loss) Per Share | ||||||||||||
As Reported | Adjustment | As Restated | ||||||||||
Three Months Ended June 30, 2021 (unaudited) | ||||||||||||
Net loss | $ | (266,942 | ) | $ | — | $ | (266,942 | ) | ||||
Weighted average shares outstanding - Class A common stock | 22,266,185 | 685,324 | 22,951,509 | |||||||||
Basic and diluted earnings per share - Class A common stock | $ | — | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Weighted average shares outstanding - Class B common stock | 6,251,870 | (685,324 | ) | 5,566,546 | ||||||||
Basic and diluted earnings per share - Class B common stock | $ | (0.04 | ) | $ | 0.03 | $ | (0.01 | ) |
Earnings (Loss) Per Share | ||||||||||||
As Reported | Adjustment | As Restated | ||||||||||
Six Months Ended June 30, 2021 (unaudited) | ||||||||||||
Net loss | $ | (385,537 | ) | $ | — | $ | (385,537 | ) | ||||
Weighted average shares outstanding - Class A common stock | 22,266,185 | (6,115,123 | ) | 16,151,062 | ||||||||
Basic and diluted earnings per share - Class A common stock | $ | — | $ | (0.02 | ) | $ | (0.02 | ) | ||||
Weighted average shares outstanding - Class B common stock | 5,880,946 | (482,265 | ) | 5,398,681 | ||||||||
Basic and diluted earnings per share - Class B common stock | $ | (0.07 | ) | $ | 0.05 | $ | (0.02 | ) |
For The Three Months Ended March 31, 2022 | For The Period From January 12, 2021 (inception) through March 31, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net loss per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | (293,272 | ) | (71,129 | ) | (69,878 | ) | (48,717 | ) | ||||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average common shares outstanding | 22,951,509 | 5,566,546 | 7,434,996 | 5,183,529 | ||||||||||||
Basic and diluted net loss per common share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | ||||
For the Three Months Ended September 30, 2021 | For The Period From January 12, 2021 (inception) through September 30, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net loss per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | $ | (301,786 | ) | $ | (73,194 | ) | $ | (588,045 | ) | $ | (172,472 | ) | ||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average common shares outstanding | 22,951,509 | 5,566,546 | 18,614,216 | 5,459,482 | ||||||||||||
Basic and diluted net loss per common share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.03 | ) | ||||
Gross proceeds | $ | 222,661,850 | ||
Less: | ||||
Offering costs allocated to Class A common stock subject to possible redemption | (12,877,432 | ) | ||
Plus: | ||||
Accretion on Class A common stock subject to possible redemption amount | 12,877,432 | |||
Class A common stock subject to possible redemption | $ | 222,661,850 | ||
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Funds that invest in U.S. Treasury Securities | $ | 222,703,101 | $ | 0— | $ | 0— |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Funds that invest in U.S. Treasury Securities | $ | 222,675,973 | $ | 0— | $ | 0— |
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Funds that invest in U.S. Treasury Securities | $ | 222,680,678 | $ | 0— | $ | 0— |
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. |
* | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
Dated: | LERER HIPPEAU ACQUISITION CORP. | |||||
By: | /s/ Eric Hippeau | |||||
Name: | Eric Hippeau | |||||
Title: | Chief Executive Officer |