☒ | 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 | 001-40775 | 86-3386030 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
333 East New York, NY | 10128 | |
(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 share of Class A Common Stock and one-half of one Redeemable Warrant | INAQ.U | The New York Stock Exchange | ||
Class A Common Stock, $0.0001 par value | INAQ | The New York Stock Exchange | ||
Redeemable Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 | INAQ WS | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||||
Emerging growth company | ☒ |
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5 | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 1. | Legal Proceedings | 26 | ||||
Item | ||||||
Item | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 5. | ||||||
Item 6. |
Assets: | ||||
Current assets: | ||||
Cash | $ | 1,145,160 | ||
Prepaid expenses | 982,850 | |||
Total current assets | 2,128,010 | |||
Investments held in Trust Account | 241,205,192 | |||
Total Assets | $ | 243,333,202 | ||
Liabilities, Class A common stock subject to possible redemption and Stockholders’ Deficit: | ||||
Current liabilities: | ||||
Accounts payable | $ | 127,357 | ||
Accrued expenses | 85,000 | |||
Accrued expenses—related party | 10,000 | |||
Franchise tax payable | 88,817 | |||
Total current liabilities | 311,174 | |||
Deferred underwriting commissions in connection with the Initial Public Offering | 12,000,000 | |||
Derivative liabilities | 14,192,522 | |||
Total Liabilities | 26,503,696 | |||
Commitments and Contingencies | 0 | |||
Class A common stock subject to possible redemption, $0.0001 par value; 24,000,000 shares at $10.05 per share | 241,200,000 | |||
Stockholders’ Deficit: | ||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0 | |||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized | 0 | |||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 6,900,000 shares issued and outstanding (1)(2) | 690 | |||
Additional paid-in capital | 0 | |||
Accumulated deficit | (24,371,184 | ) | ||
Total stockholders’ deficit | (24,370,494 | ) | ||
Total Liabilities, Class A common stock subject to possible redemption and Stockholders’ Deficit | $ | 243,333,202 | ||
June 30, 2022 | December 31, 2021 | |||||||
(unaudited) | ||||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash | $ | 126,504 | $ | 877,937 | ||||
Prepaid expenses | 571,385 | 876,317 | ||||||
Total current assets | 697,889 | 1,754,254 | ||||||
Other Assets | 83,334 | — | ||||||
Investments held in Trust Account | 241,316,750 | 241,187,929 | ||||||
Total Assets | $ | 242,097,973 | $ | 242,942,183 | ||||
Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 94,639 | $ | 34,332 | ||||
Accrued expenses | 72,436 | 155,963 | ||||||
Accrued expenses - related party | 10,000 | 10,000 | ||||||
Franchise tax payable | 41,181 | 140,274 | ||||||
Total current liabilities | 218,256 | 340,569 | ||||||
Deferred underwriting commissions in connection with the Initial Public Offering | 12,000,000 | 12,000,000 | ||||||
Derivative liabilities | 3,860,520 | 10,796,190 | ||||||
Total Liabilities | 16,078,776 | 23,136,759 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A common stock subject to possible redemption, $0.0001 par value; 24,000,000 shares at $10.05 per share at June 30, 2022 and December 31, 2021, respectively | 241,200,000 | 241,200,000 | ||||||
Stockholders’ Deficit: | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding at June 30, 2022 and December 31, 2021, respectively | — | — | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 0 non-redeemable shares issued or outstanding at March 31, 2022 and December 31, 2021, respectively | — | — | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 6,900,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively | 690 | 690 | ||||||
Additional paid-in capital | — | — | ||||||
Accumulated deficit | (15,181,493 | ) | (21,395,266 | ) | ||||
Total stockholders’ deficit | (15,180,803 | ) | (21,394,576 | ) | ||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit | $ | 242,097,973 | $ | 242,942,183 | ||||
For the three months ended September 30, 2021 | For the Period from April 20, 2021 (inception) through September 30, 2021 | |||||||
General and administrative expenses | $ | 110,056 | $ | 110,935 | ||||
Franchise tax expenses | 49,863 | 88,817 | ||||||
Loss from operations | (159,919 | ) | (199,752 | ) | ||||
Other income (expenses): | ||||||||
Change in fair value of derivative warrant liabilities | 1,128,895 | 1,128,895 | ||||||
Offering costs associated with derivative warrant liabilities | 667,601 | 667,601 | ||||||
Income from investments held in Trust Account | (5,192 | ) | (5,192 | ) | ||||
Total other expenses | 1,791,304 | 1,791,304 | ||||||
Net loss | $ | (1,951,223 | ) | $ | (1,991,056 | ) | ||
Weighted average shares outstanding of Class A common stock, basic and diluted | 6,260,870 | 3,865,772 | ||||||
Basic and diluted net loss per common share, Class A common stock | $ | (0.16 | ) | $ | (0.20 | ) | ||
Weighted average shares outstanding of Class B common stock, basic and diluted (1)(2) | 6,000,000 | 6,000,000 | ||||||
Basic and diluted net loss per common share, Class B common stock | $ | (0.16 | ) | $ | (0.20 | ) | ||
For the three months ended June 30, 2022 | For the six months ended June 30, 2022 | For the period from April 20, 2021 (inception) through June 30, 2021 | ||||||||||
General and administrative expenses | $ | 339,509 | $ | 752,586 | $ | 879 | ||||||
Franchise tax expenses | 49,315 | 98,132 | 38,954 | |||||||||
Loss from operations | (388,824 | ) | (850,718 | ) | (39,833 | ) | ||||||
Other income: | ||||||||||||
Change in fair value of derivative warrant liabilities | (3,036,600 | ) | (6,935,670 | ) | — | |||||||
Net gain on investments held in Trust Account | (186,500 | ) | (128,821 | ) | — | |||||||
Total other income | (3,223,100 | ) | (7,064,491 | ) | — | |||||||
Net income (loss) | $ | 2,834,276 | $ | 6,213,773 | $ | (39,833) | ||||||
Weighted average shares outstanding of Class A common stock, basic and diluted | 24,000,000 | 24,000,000 | — | |||||||||
Basic and diluted net income per common share, Class A common stock | $ | 0.09 | $ | 0.21 | $ | — | ||||||
Weighted average shares outstanding of Class B common stock, basic and diluted | 6,000,000 | 6,000,000 | 6,000,000 | |||||||||
Basic and diluted net income (loss) per common share, Class B common stock | $ | 0.09 | $ | 0.21 | $ | (0.01) | ||||||
Common Stock | Total | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-In | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - December 31, 2021 | — | $ | — | 6,900,000 | $ | 690 | $ | — | $ | (21,395,266 | ) | $ | (21,394,576 | ) | ||||||||||||||
Net income | — | — | — | — | — | 3,379,497 | 3,379,497 | |||||||||||||||||||||
Balance - March 31, 2022 (unaudited) | — | — | 6,900,000 | 690 | — | (18,015,769 | ) | (18,015,079 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 2,834,276 | 2,834,276 | |||||||||||||||||||||
Balance - June 30, 2022 (unaudited) | — | $ | — | 6,900,000 | $ | 690 | $ | — | $ | (15,181,493 | ) | $ | (15,180,803 | ) | ||||||||||||||
Common Stock | Total | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-In | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - April 20, 2021 (inception) | 0— | $ | 0— | 0— | $ | 0— | $ | 0— | $ | 0— | $ | 0— | ||||||||||||||||
Issuance of Class B common stock to Sponsor (1)(2) | — | — | 6,900,000 | 690 | 24,310 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (39,833 | ) | (39,833 | ) | |||||||||||||||||||
Balance - June 30, 2021 (unaudited) | — | — | 6,900,000 | 690 | 24,310 | (39,833 | ) | (14,833 | ) | |||||||||||||||||||
Excess of cash received over fair value of private placement warrants | — | — | — | — | 3,219,000 | — | 3,219,000 | |||||||||||||||||||||
Contribution from Sponsor upon transfering Founder Shares to anchor investors | — | — | — | — | 3,199,500 | — | 3,199,500 | |||||||||||||||||||||
Accretion on Class A common stock subject to possible redemption | — | — | — | — | (6,442,810 | ) | (22,380,128 | ) | (28,822,938 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (1,951,223 | ) | (1,951,223 | ) | |||||||||||||||||||
Balance - September 30, 2021 (unaudited) | — | $ | 0 | 6,900,000 | $ | 690 | $ | 0 | $ | (24,371,184 | ) | $ | (24,370,494 | ) | ||||||||||||||
Common Stock | Total | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-In | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance - April 20, 2021 (inception) | — | $ | — | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Issuance of Class B common stock to Sponsor | — | — | 6,900,000 | 690 | 24,310 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (39,833 | ) | (39,833 | ) | |||||||||||||||||||
Balance - June 30, 2021 (unaudited) | — | $ | — | 6,900,000 | $ | 690 | $ | 24,310 | $ | (39,833 | ) | $ | (14,833 | ) | ||||||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (1,991,056 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of derivative warrant liabilities | 1,128,895 | |||
Offering costs associated with derivative liabilities | 667,601 | |||
Income from investments held in Trust Account | (5,192 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (982,850 | ) | ||
Accounts payable | 18,212 | |||
Accrued expenses - related party | 10,000 | |||
Franchise tax payable | 88,817 | |||
Net cash used in operating activities | (1,065,573 | ) | ||
Cash Flows from Investing Activities | ||||
Cash deposited in Trust Account | (241,200,000 | ) | ||
Net cash used in investing activities | (241,200,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from note payable to related party | 25,000 | |||
Repayment of note payable to related party | (163,132 | ) | ||
Proceeds received from initial public offering, gross | 240,000,000 | |||
Proceeds received from private placement | 8,700,000 | |||
Offering costs paid | (5,151,135 | ) | ||
Net cash provided by financing activities | 243,410,733 | |||
Net increase in cash | 1,145,160 | |||
Cash - beginning of the period | 0— | |||
Cash - end of the period | $ | 1,145,160 | ||
Supplemental disclosure of noncash activities: | ||||
Offering costs paid by Sponsor in exchange for issuance of Class B common stock | $ | 25,000 | ||
Offering costs included in accounts payable | $ | 109,145 | ||
Offering costs included in accrued expenses | $ | 85,000 | ||
Offering costs paid by Sponsor under note payable - related party | $ | 138,132 | ||
Deferred underwriting commissions in connection with the Initial Public Offering | $ | 12,000,000 |
For the six months ended June 30, 2022 | For the period from April 20, 2021 (inception) through June 30, 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 6,213,773 | $ | (39,833 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of derivative warrant liabilities | (6,935,670 | ) | — | |||||
Net gain on investments held in Trust Account | (128,821 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 221,598 | — | ||||||
Accounts payable | 60,307 | 879 | ||||||
Accrued expenses - related party | 1,473 | — | ||||||
Franchise tax payable | (99,093 | ) | 38,954 | |||||
Net cash used in operating activities | (666,433 | ) | — | |||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from note payable to related party | — | 25,000 | ||||||
Offering costs paid | (85,000 | ) | — | |||||
Net cash (used in) provided by financing activities | (85,000 | ) | 25,000 | |||||
Net change in cash | (751,433 | ) | 25,000 | |||||
Cash - beginning of the period | 877,937 | — | ||||||
Cash - end of the period | $ | 126,504 | $ | 25,000 | ||||
Supplemental disclosure of noncash financing activities: | ||||||||
Offering costs paid by the Sponsor in exchange for issuance of Class B common stock | $ | — | $ | 25,000 | ||||
Offering costs included in accounts payable | $ | — | $ | 60,020 | ||||
Offering costs included in accrued expenses | $ | — | $ | 255,875 | ||||
Offering costs paid by Sponsor under promissory note | $ | — | $ | 25,000 |
For the Period from April 20, | ||||||||||||||||
For the Three Months Ended | 2021 (inception) through | |||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | $ | (996,369 | ) | $ | (954,854 | ) | $ | (780,169 | ) | $ | (1,210,887 | ) | ||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average common shares outstanding | 6,260,870 | 6,000,000 | 3,865,772 | 6,000,000 | ||||||||||||
Basic and diluted net loss per common share | $ | (0.16 | ) | $ | (0.16 | ) | $ | (0.20 | ) | $ | (0.20 | ) | ||||
For the Three Months Ended June 30, 2022 | For the Six Months Ended June 30, 2022 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income per common share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income | $ | 2,267,421 | $ | 566,855 | $ | 4,971,018 | $ | 1,242,755 | ||||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average common shares outstanding | 24,000,000 | 6,000,000 | 24,000,000 | 6,000,000 | ||||||||||||
Basic and diluted net income per common share | $ | 0.09 | $ | 0.09 | $ | 0.21 | $ | 0.21 | ||||||||
For the period from April 20, 2021 (inception) through June 30, 2021 | ||||||||
Class A | Class B | |||||||
Basic and diluted net loss per common share: | ||||||||
Numerator: | ||||||||
Allocation of net loss | $ | — | $ | (39,833 | ) | |||
Denominator: | ||||||||
Basic and diluted weighted average common shares outstanding | — | 6,000,000 | ||||||
Basic and diluted net loss per common share | $ | — | $ | (0.01 | ) |
Gross proceeds from Initial Public Offering | $ | 240,000,000 | $ | 240,000,000 | ||||
Less: | ||||||||
Fair value of Public Warrants at issuance | (7,582,627 | ) | (7,582,627 | ) | ||||
Offering costs allocated to Class A common stock subject to possible redemption | (20,040,311 | ) | (20,050,096 | ) | ||||
Plus: | ||||||||
Accrection on Class A common stock subject to possible redemption amount | 28,822,938 | |||||||
Accretion on Class A common stock subject to possible redemption amount | 28,832,723 | |||||||
Class A common stock subject to possible redemption | $ | 241,200,000 | $ | 241,200,000 | ||||
Quoted Prices in Active | Significant Other | Significant Other | ||||||||||
Markets | Observable Inputs | Unobservable Inputs | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account - U.S. Treasury Securities | $ | 241,205,192 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative liabilities - public warrants | $ | — | $ | — | $ | 8,160,000 | ||||||
Derivative liabilities - private warrants | $ | — | $ | — | $ | 6,003,000 | ||||||
Derivative liabilities - Over-allotment option | $ | — | $ | — | $ | 29,522 |
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 - U.S. Treasury Securities | $ | 241,316,750 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative liabilities—public warrants | $ | 2,158,800 | $ | — | $ | — | ||||||
Derivative liabilities—private warrants | $ | — | $ | — | $ | 1,701,720 |
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 - U.S. Treasury Securities | $ | 241,187,929 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative liabilities—public warrants | $ | 6,240,000 | $ | — | $ | — | ||||||
Derivative liabilities—private warrants | $ | — | $ | — | $ | 4,556,190 |
At initial issuance | As of September 30, 2021 | June 30, 2022 | December 31, 2021 | |||||||||
Exercise price | $11.50 | $11.50 | $ | 11.50 | $ | 11.50 | ||||||
Stock price | $9.47 - $9.63 | $9.53 - $9.69 | $ | 9.82 | $ | 9.77 | ||||||
Volatility | 10.0% - 15.0% | 10.0% - 15.0% | 2.0 | % | 10.0 | % | ||||||
Risk-free rate | 0.94% | 1.10% | 3.02 | % | 1.31 | % | ||||||
Dividend yield | 0.0% | 0.0% | 0.0 | % | 0.0 | % |
Derivative liabilities at April 20, 2021 (inception) | $ | 0 | ||
Issuance of Public and Private Warrants | 13,041,000 | |||
Over-allotment option | 22,627 | |||
Change in fair value of derivative warrant liabilities | 1,128,895 | |||
Derivative liabilities at September 30, 2021 | $ | 14,192,522 | ||
Derivative liabilities at December 31, 2021 | $ | 4,556,190 | ||
Change in fair value of derivative warrant liabilities | (1,619,070 | ) | ||
Derivative liabilities at March 31, 2022 | $ | 2,937,120 | ||
Change in fair value of derivative warrant liabilities | (1,235,400 | ) | ||
Derivative liabilities at June 30, 2022 | $ | 1,701,720 | ||
* | Filed herewith. |
** | Furnished herewith. |
(1) | Incorporated by reference to the Current Report on Form 8-K of Insight Acquisition Corp. filed with the Securities and Exchange Commission on September 7, 2021 (Commission FileNo. 001-40775). |
(2) | Incorporated by reference to the Form S-1 of Insight Acquisition Corp. filed with the Securities and ExchangeCommission on August 11, 2021 (Registration Number333-258727). |
Dated: | INSIGHT ACQUISITION CORP. | |||||||
By: | /s/ Jeff Gary | |||||||
Name: | Jeff Gary | |||||||
Title: | Chief Executive Officer and Chief Financial Officer |