☒ | 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 | 85-2609730 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Units, each consisting of one share of Common Stock and one-half of one redeemable warrant | ASAXU | The Nasdaq Stock Market LLC | ||
Common Stock, par value $0.0001 per share | ASAX | The Nasdaq Stock Market LLC | ||
Redeemable warrants, exercisable for shares of Common Stock at an exercise price of $11.50 per share | ASAXW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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June 30, 2021 | December 31, 2020 | |||||||
(Unaudited) (Restated) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 133,058 | $ | — | ||||
Prepaid expenses | 708,607 | — | ||||||
Total Current Assets | 841,665 | — | ||||||
Deferred offering costs | — | 110,125 | ||||||
Cash and marketable securities held in Trust Account | 172,529,691 | — | ||||||
TOTAL ASSETS | $ | 173,371,356 | $ | 110,125 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 142,909 | $ | 450 | ||||
Promissory note – related party | 350,000 | 85,302 | ||||||
Total Current Liabilities | 492,909 | 85,752 | ||||||
Warrant liability | 156,750 | — | ||||||
Total Liabilities | 649,659 | 85,752 | ||||||
Commitments | ||||||||
Common stock subject to possible redemption; $0.0001 par value; 17,250,000 and 0 shares at redemption value as of June 30, 2021 and December 31, 2020, respectively | 172,500,000 | — | ||||||
Stockholders’ Equity | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding | — | — | ||||||
Common stock, $0.0001 par value; 50,000,000 shares authorized; 4,787,500 and 4,312,500 shares issued and outstanding (excluding 17,250,000 and 0 shares subject to possible redemption) as of June 30, 2021 and December 31, 2020, respectively (1) | 479 | 431 | ||||||
Additional paid-in capital | 554,160 | 24,569 | ||||||
Accumulated deficit | (332,942 | ) | (627 | ) | ||||
Total Stockholders’ Equity | 221,697 | 24,373 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 173,371,356 | $ | 110,125 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 30,094 | $ | 67,689 | ||||
Prepaid expenses | 255,933 | 344,659 | ||||||
Total Current Assets | 286,027 | 412,348 | ||||||
Cash and marketable securities held in Trust Account | 172,625,112 | 172,561,080 | ||||||
TOTAL ASSETS | $ | 172,911,139 | $ | 172,973,428 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 349,884 | $ | 459,988 | ||||
Promissory note – related party | 1,140,000 | 750,000 | ||||||
Total Current Liabilities | 1,489,884 | 1,209,988 | ||||||
Warrant liabilities | 40,114 | 342,190 | ||||||
Total Liabilities | 1,529,998 | 1,552,178 | ||||||
Commitments | 0 | 0 | ||||||
Common stock subject to possible redemption; $0.0001 par value; 17,250,000 shares at redemption value as of March 31, 2022 and December 31, 2021 | 172,500,000 | 172,500,000 | ||||||
Stockholders’ Deficit | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | — | — | ||||||
Common stock, $0.0001 par value; 50,000,000 shares authorized; 4,787,500 shares issued and outstanding (excluding 17,250,000 shares subject to possible redemption) as of March 31, 2022 and December 31, 2021 | 479 | 479 | ||||||
Additional paid-in capital | 554,160 | 554,160 | ||||||
Accumulated deficit | (1,673,498 | ) | (1,633,389 | ) | ||||
Total Stockholders’ Deficit | (1,118,859 | ) | (1,078,750 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 172,911,139 | $ | 172,973,428 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2021 | |||||||
Formation and operational costs | $ | 289,297 | $ | 509,564 | ||||
Loss from operations | (289,297 | ) | (509,564 | ) | ||||
Other (expense) income: | ||||||||
Interest earned on marketable securities held in Trust Account | 19,301 | 29,691 | ||||||
Interest income – bank | 6 | 6 | ||||||
Change in fair value of warrant liability | (21,375 | ) | 30,875 | |||||
Change in fair value of overallotment liability | — | (134,105 | ) | |||||
Transaction costs associated with Initial Public Offering | — | (17,428 | ) | |||||
Total Other (expense) income, net | (2,068 | ) | 177,249 | |||||
Net loss | $ | (291,365 | ) | $ | (332,315 | ) | ||
Basic and diluted weighted average shares outstanding, common stock | 22,037,500 | 17,939,227 | ||||||
Basic and diluted loss per share, common stock | $ | (0.01 | ) | $ | (0.02 | ) | ||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Operating and formation costs | $ | 406,217 | $ | 220,267 | ||||
Loss from operations | (406,217 | ) | (220,267 | ) | ||||
Other income (expense): | ||||||||
Interest earned on marketable securities held in Trust Account | 44,835 | 10,390 | ||||||
Unrealized gain on marketable securities held in Trust Account | 19,197 | — | ||||||
Change in fair value of warrant liability | 302,076 | 52,250 | ||||||
Change in fair value of over-allotment option liability | 0— | 134,105 | ||||||
Transaction costs associated with Initial Public Offering | 0— | (17,428 | ) | |||||
Total other income, net | 366,108 | $ | 179,317 | |||||
Net loss | $ | (40,109 | ) | $ | (40,950 | ) | ||
Basic and diluted weighted average shares outstanding, Common stock | 22,037,500 | $ | 13,795,417 | |||||
Basic and diluted net loss per share, Common stock | $ | (0.00 | ) | $ | (0.00 | ) | ||
Common Stock | Additional Paid in Capital | Accumulated Deficit | Total Stockholders’ Deficit | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance – January 1, 2022 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (1,633,389 | ) | $ | (1,078,750 | ) | |||||||||
Net loss | — | — | — | (40,109 | ) | (40,109 | ) | |||||||||||||
Balance – March 31, 2022 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (1,673,498 | ) | $ | (1,118,859 | ) | |||||||||
Common Stock | Additional Paid in | Accumulated | Total Stockholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
Balance – January 1, 2021 | 4,312,500 | $ | 431 | $ | 24,569 | $ | (627 | ) | $ | 24,373 | ||||||||||
Fair value of Public Warrants | — | — | 6,780,799 | — | 6,780,799 | |||||||||||||||
Sale of 475,000 Private Placement Units | 475,000 | 48 | 4,562,894 | — | 4,562,942 | |||||||||||||||
Elimination of over-allotment option liability | — | — | 614,257 | — | 614,257 | |||||||||||||||
Allocated value of transaction costs to warrants | — | — | (165,442 | ) | — | (165,442 | ) | |||||||||||||
Accretion of common stock to redemption value | — | — | (11,262,350 | ) | — | (11,262,350 | ) | |||||||||||||
Net loss | — | — | — | (40,950 | ) | (40,950 | ) | |||||||||||||
Balance – March 31, 2021 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (41,577 | ) | $ | 513,062 | ||||||||||
Net loss | — | — | — | (291,365 | ) | (291,365 | ) | |||||||||||||
Balance – June 30, 2021 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (332,942 | ) | $ | 221,697 | ||||||||||
Common Stock | Additional Paid in Capital | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance – January 1, 2021 | 4,312,500 | $ | 431 | $ | 24,569 | $ | (627 | ) | $ | 24,373 | ||||||||||
Accretion of Common Stock to redemption value | — | 0— | (11,262,350 | ) | 0— | (11,262,350 | ) | |||||||||||||
Sale of 475,000 Private Placement Units | 475,000 | 48 | 4,562,327 | 0— | 4,562,942 | |||||||||||||||
Fair value of Public Warrants | — | — | 6,780,799 | 0— | 6,780,799 | |||||||||||||||
Allocated value of transaction costs to warrants | — | — | (165,442 | ) | 0— | (165,442 | ) | |||||||||||||
Elimination of over-allotment option liability | — | — | 614,257 | 0— | 614,257 | |||||||||||||||
Net loss | — | — | — | (40,950 | ) | (40,950 | ) | |||||||||||||
Balance – March 31, 2021 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (41,577 | ) | $ | 513,062 | ||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (332,315 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of warrant liability | (30,875 | ) | ||
Change in fair value of overallotment liability | (134,105 | ) | ||
Interest earned on marketable securities held in Trust Account | (29,691 | ) | ||
Transaction costs associated with Initial Public Offering | 17,428 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (708,607 | ) | ||
Accrued expenses | 142,459 | |||
Net cash used in operating activities | (1,075,706 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash into Trust Account | $ | (172,500,000 | ) | |
Net cash used in investing activities | (172,500,000 | ) | ||
Cash Flows from Financing Activities | ||||
Proceeds from sale of Units, net of underwriting discounts paid | $ | 169,050,000 | ||
Proceeds from sale of Private Placement Units | 4,750,000 | |||
Repayment of promissory note – related party | (85,302 | ) | ||
Promissory note – related party | 350,000 | |||
Payment of offering costs | (355,934 | ) | ||
Net cash provided by used in financing activities | 173,708,764 | |||
Net Change in Cash | 133,058 | |||
Cash – Beginning of period | — | |||
Cash – End of period | $ | 133,058 | ||
Non-Cash investing and financing activities: | ||||
Initial classification of Warrant Liability | $ | 187,625 | ||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (40,109 | ) | $ | (40,950 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Change in fair value of warrant liabilities | (302,076 | ) | (52,250 | ) | ||||
Interest earned on marketable securities held in Trust Account | (44,835 | ) | (10,390 | ) | ||||
Unrealized gain on marketable securities held in Trust Account | (19,197 | ) | 0— | |||||
Change in fair value of over-allotment option liability | 0— | (134,105 | ) | |||||
Transaction costs incurred in connection with Initial Public Offering | 0— | 17,428 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 88,726 | (840,249 | ) | |||||
Accrued expenses | (110,104 | ) | 89,200 | |||||
Net cash used in operating activities | (427,595 | ) | (971,316 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Investment in cash into Trust Account | 0— | (172,500,000 | ) | |||||
Net cash used in investing activities | 0— | (172,500,000 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from sale of Units, net of underwriting discounts | 0— | 169,050,000 | ||||||
Proceeds from sale of Private Placement Units | 0— | 4,750,000 | ||||||
Proceeds from promissory note – related party | 390,000 | 350,000 | ||||||
Repayment of promissory note – related party | 0— | (85,302 | ) | |||||
Payment of offering costs | 0— | (355,934 | ) | |||||
Net cash provided by financing activities | 390,000 | 173,708,764 | ||||||
Net Change in Cash | (37,595 | ) | 237,448 | |||||
Cash – Beginning of period | 67,689 | 0— | ||||||
Cash – End of period | $ | 30,094 | $ | 237,448 | ||||
Non-cash investing and financing activities: | ||||||||
Initial Classification of Warrant Liability | $ | 0— | $ | 187,625 | ||||
As Previously Reported (1) | Adjustment related to Common Stock Subject to Possible Redemption | Adjustment related to Overallotment Liability | As Restated | |||||||||||||
Condensed Balance Sheet as of June 30, 2021 (unaudited) | ||||||||||||||||
Common stock subject to possible redemption | $ | 167,721,690 | $ | 4,778,310 | $ | — | $ | 172,500,000 | ||||||||
Common stock | $ | 527 | $ | (48 | ) | $ | — | $ | 479 | |||||||
Additional paid-in capital | $ | 5,449,666 | $ | (4,778,262 | ) | $ | (117,244) | $ | 554,160 | |||||||
Accumulated deficit | $ | (450,186 | ) | $ | — | $ | 117,244 | $ | (332,942 | ) | ||||||
Total Stockholders’ Equity (Deficit) | $ | 5,000,007 | $ | (4,778,310 | ) | $ | — | $ | 221,697 | |||||||
Number of Shares subject to possible redemption | 16,772,169 | 477,831 | — | 17,250,000 | ||||||||||||
Condensed Statement of Operations for the Three Months Ended June 30, 2021 (Unaudited) | ||||||||||||||||
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | 16,801,305 | (16,801,305 | ) | — | — | |||||||||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 5,236,195 | (5,236,195 | ) | — | — | |||||||||||
Basic and diluted net loss per share, Non-redeemable common stock | $ | (0.06 | ) | $ | 0.06 | $ | — | $ | — | |||||||
Basic and diluted weighted average shares outstanding, Common stock | — | 22,037,500 | — | 22,037,500 | ||||||||||||
Basic and diluted net loss per share, Common stock | $ | — | (0.01 | ) | $ | — | $ | (0.01 | ) |
Condensed Statement of Operations for the Six months ended June 30, 2021 (Unaudited) | ||||||||||||||||
Transaction costs | $ | (567 | ) | — | $ | (16,871 | ) | $ | (17,428 | ) | ||||||
Change in fair value of overallotment liability | $ | — | — | $ | 134,105 | $ | 134,105 | |||||||||
Net loss | $ | (449,559 | ) | — | $ | 117,244 | $ | (332,315 | ) | |||||||
Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption | 27,584,102 | (27,584,102 | ) | — | — | |||||||||||
Basic and diluted net income per share, Common stock subject to possible redemption | $ | — | — | $ | — | $ | — | |||||||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 4,211,844 | (4,211,844 | ) | — | — | |||||||||||
Basic and diluted net loss per share, Non-redeemable common stock | $ | (0.11 | ) | $ | 0.11 | $ | — | $ | — | |||||||
Basic and diluted weighted average shares outstanding, Common stock | — | 17,939,227 | — | 17,939,227 | ||||||||||||
Basic and diluted net loss per share, Common stock | $ | — | $ | (0.03 | ) | $ | 0.01 | $ | (0.02 | ) | ||||||
Condensed Statement of Changes in Shareholders’ Equity (Deficit) for the Three Months ended June 30, 2021 (Unaudited) | ||||||||||||||||
Total shareholders’ equity (deficit) | $ | 5,000,009 | $ | (4,778,310 | ) | $ | — | $ | 221,697 | |||||||
Condensed Statement of Cash Flows for the Six months ended June 30, 2021 (Unaudited) | ||||||||||||||||
Net loss | $ | (449,559 | ) | $ | — | $ | 117,244 | $ | (332,315 | ) | ||||||
Change in fair value of overallotment liability | $ | — | $ | — | $ | (134,105 | ) | $ | (134,105 | ) | ||||||
Transactions costs | $ | 567 | $ | — | $ | 16,871 | $ | 17,428 | ||||||||
Non-cash investing and financing activities | ||||||||||||||||
Initial classification of common stock ordinary shares subject to possible redemption | $ | 168,170,685 | $ | 4,329,315 | $ | — | $ | 172,500,000 | ||||||||
Change in value of common stock ordinary shares subject to possible redemption | $ | (448,995 | ) | $ | 448,995 | $ | — | | $ | — | ||||||
Accretion of common stock subject to possible redemption | $ | — | (3,916,059 | ) | $ | (7,346,291 | ) | $ | (11,262,350 | ) |
Gross proceeds | $ | 172,500,000 | $ | 172,500,000 | ||||
Less: | ||||||||
Proceeds allocated to Public Warrants | 6,780,799 | (6,780,799 | ) | |||||
Common stock issuance costs | 3,733,189 | (3,733,189 | ) | |||||
Overallotment Liability | 748,362 | (748,362 | ) | |||||
Plus: | ||||||||
Adjustment of carrying value to redemption value | 11,262,350 | |||||||
Accretion of carrying value to redemption value | 11,262,350 | |||||||
Common stock subject to possible redemption | $ | 172,500,000 | $ | 172,500,000 | ||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Basic and diluted net income ( loss) per common stock | ||||||||
Numerator: | ||||||||
Allocation of net income (loss), as adjusted | $ | (291,365 | ) | $ | (332,315 | ) | ||
Denominator: | ||||||||
Basic and diluted weighted average shares outstanding | 22,037,500 | 17,939,227 | ||||||
Basic and diluted net income (loss) per common stock | $ | (0.01 | ) | $ | (0.02 | ) |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Basic and diluted net loss per common stock | ||||||||
Numerator: | ||||||||
Allocation of net loss, as adjusted | $ | (40,109 | ) | $ | (40,950 | ) | ||
Denominator: | ||||||||
Basic and diluted weighted average shares outstanding | 22,037,500 | 13,795,417 | ||||||
Basic and diluted net loss per common stock | $ | (0.00 | ) | $ | (0.00 | ) |
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. |
Description | Level | June 30, 2021 | Level | March 31, 2022 | December 31, 2021 | |||||||||||||||
Assets: | ||||||||||||||||||||
Marketable securities held in Trust Account | 1 | $ | 172,529,691 | 1 | $ | 172,625,112 | $ | 172,561,080 | ||||||||||||
Liabilities: | ||||||||||||||||||||
Warrant Liability – Private Placement Warrants | 3 | $ | 156,750 | |||||||||||||||||
Warrant Liability – Private Warrants | 3 | $ | 40,114 | $ | 342,190 |
Input | February 8, 2021 (Initial Measurement) | |||
Risk-free interest rate | 0.54 | % | ||
Effective expiration date | 6/23/2026 | |||
Dividend yield | 0.00 | % | ||
Expected volatility | 15.1 | % | ||
Exercise price | $ | 11.50 | ||
Unit Price | $ | 9.61 |
Input | ||||
Risk-free interest rate | 0.97 | % | ||
Effective expiration date | 6/23/2026 | |||
Dividend yield | 0.00 | % | ||
Expected volatility | 11.7 | % | ||
Exercise price | $ | 11.50 | ||
Unit Price | $ | 9.64 |
Input | December 31, 2021 | March 31, 2022 | ||||||||||
Risk-free interest rate | 0.86 | % | 1.18 | % | 2.44 | % | ||||||
Effective expiration date | 6/23/2026 | |||||||||||
Effective expiration date (1) | 6/23/2026 | 6/23/2026 | ||||||||||
Dividend yield | 0.00 | % | 0.00 | % | 0.00 | % | ||||||
Expected volatility | 13.4 | % | 10.6 | % | 4.8 | % | ||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 11.50 | ||||||
Unit Price | $ | 9.66 | $ | 9.88 | $ | 9.77 | ||||||
Probability of De-SPAC transaction | 75 | % | 90 | % |
(1) | The effective expiration date equals the probability-weighted average between a 2.0 year life of the warrants in the event there is no de-SPAC transaction and the contractual life if a transaction is closed. |
Private Warrant Liability | ||||
Fair value as of August 11, 2020 | $ | 0— | ||
Initial measurement on February 8, 2021 (IPO) | 169,850 | |||
Initial measurement on February 18, 2021 (Over allotment) | 17,775 | |||
Change in valuation inputs or other assumptions | (30,875 | ) | ||
Fair value as of June 30, 2021 | $ | 156,750 | ||
Private Warrant Liability | ||||
Fair value as of December 31, 2021 | $ | 342,190 | ||
Change in fair value | (302,076 | ) | ||
Fair value as of March 31, 2022 | $ | 40,114 | ||
Overallotment Option | ||||
Fair value as of August 11, 2020 | $ | |||
Fair value at issuance February 8, 2021 | 748,362 | |||
Change in fair value February 18, 2021 | (134,105 | ) | ||
Elimination of overallotment liability February 18, 2021 | (614,257 | ) | ||
Fair Value at | $ | |||
* | Filed herewith. |
ASTREA ACQUISITION CORP. | ||||||
Date: August | By: | /s/ Felipe Gonzalez | ||||
Name: | Felipe Gonzalez | |||||
Title: | Chief Executive Officer and Director | |||||
(Principal Executive Officer) | ||||||
Date: August | By: | /s/ Jose Luis Cordova | ||||
Name: | Jose Luis Cordova | |||||
Title: | Chief Financial Officer and Director | |||||
(Principal Financial and Accounting Officer) |