Cayman Islands | 98-1557361 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
150 North Riverside Plaza, Suite 5200 Chicago, Illinois | 60606 | |
(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-half of one redeemable warrant | LNFA.U | The New York Stock Exchange | ||
Class A Ordinary Shares included as part of the units | LNFA | The New York Stock Exchange | ||
Warrants included as part of the units, each whole warrant exercisable for one Class A Ordinary Share at an exercise price of $11.50 | LNFA WS | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
Emerging growth company | ☒ |
Page | ||
PART 1 – FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
Item 2. | ||
Item 3. | 21 | |
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
March 31, 2021 (unaudited) | December 31, 2020 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 1,429,084 | $ | 1,478,928 | ||||
Prepaid expenses | 221,106 | 295,658 | ||||||
Total Current Assets | 1,650,190 | 1,774,586 | ||||||
Marketable securities held in Trust Account | 175,097,723 | 175,089,531 | ||||||
TOTAL ASSETS | $ | 176,747,913 | 176,864,117 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 250,043 | 126,944 | |||||
Accrued offering costs | 350,000 | 350,000 | ||||||
Total Current Liabilities | 600,043 | 476,944 | ||||||
Deferred underwriting fee payable | 6,037,500 | 6,037,500 | ||||||
Warrant Liability | 17,237,279 | 28,062,924 | ||||||
Total Liabilities | 23,874,822 | 34,577,368 | ||||||
Commitments and Contingencies | ||||||||
Class A ordinary shares subject to possible redemption, 14,568,777 and 13,525,788 shares at $10.15 per share at March 31, 2021 and December 31, 2020, respectively | 147,873,086 | 137,286,748 | ||||||
Shareholders’ Equity | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding | — | — | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 2,681,223 and 3,742,212 shares issued and outstanding (excluding 14,568,777 and 13,525,788 shares subject to possible redemption) at March 31, 2021 and December 31, 2020, respectively | 268 | 372 | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 4,312,500 shares issued and outstanding at March 31, 2021 and December 31, 2020 | 431 | 431 | ||||||
Additional paid-in capital | 2,211,724 | 12,797,958 | ||||||
Retained earnings (Accumulated deficit) | 2,787,582 | (7,798,760 | ) | |||||
Total Shareholders’ Equity | 5,000,005 | 5,000,001 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 176,747,913 | 176,864,117 |
September 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 1,232,020 | $ | 1,478,928 | ||||
Prepaid expenses | 77,885 | 295,658 | ||||||
Total Current Assets | 1,309,905 | 1,774,586 | ||||||
Marketable investments held in Trust Account | 175,106,330 | 175,089,531 | ||||||
TOTAL ASSETS | $ | 176,416,235 | 176,864,117 | |||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 925,178 | 126,944 | |||||
Accrued offering costs | 350,000 | 350,000 | ||||||
Total Current Liabilities | 1,275,178 | 476,944 | ||||||
Deferred underwriting fee payable | 6,037,500 | 6,037,500 | ||||||
Warrant Liability | 17,227,857 | 28,062,924 | ||||||
Total Liabilities | 24,540,535 | 34,577,368 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, 17,250,000 shares at $10.15 per share at September 30, 2021 and December 31, 2020 | 175,087,500 | 175,087,500 | ||||||
Shareholders’ Deficit | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding | 0 | 0 | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 0 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 4,312,500 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 431 | 431 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (23,212,231 | ) | (32,801,182 | ) | ||||
Total Shareholders’ Deficit | (23,211,800 | ) | (32,800,751 | ) | ||||
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT | $ | 176,416,235 | 176,864,117 |
Formation and operating costs | $ | 247,495 | ||
Loss from operations | (247,495 | ) | ||
Other income: | ||||
Change in fair value of warrants | 10,825,645 | |||
Interest earned on marketable securities held in Trust Account | 8,192 | |||
Net Income | $ | 10,586,342 | ||
Weighted average shares outstanding of Class A redeemable ordinary shares | 17,250,000 | |||
Basic and diluted net income per share, Class A redeemable ordinary shares | $ | 0.00 | ||
Weighted average shares outstanding of Class B non-redeemable ordinary shares | 4,312,500 | |||
Basic and diluted net loss per share, Class B non-redeemable ordinary shares | $ | 2.45 |
Three Months Ended September 30, | Nine Months Ended September 30, | For the Period from August 20, 2020 (Inception) through September 30, | ||||||||||
2021 | 2021 | 2020 | ||||||||||
General and administrative expenses | $ | 814,197 | $ | 1,262,915 | $ | 5,000 | ||||||
Loss from operations | (814,197 | ) | (1,262,915 | ) | (5,000 | ) | ||||||
Other income (loss): | ||||||||||||
Change in fair value of warrant liabilities | 2,469,841 | 10,835,067 | 0 | |||||||||
Interest earned on marketable investments held in Trust Account | 2,253 | 16,799 | 0 | |||||||||
Total other income (loss), net | 2,472,094 | 10,851,866 | 0 | |||||||||
Net income (loss) | $ | 1,657,897 | $ | 9,588,951 | $ | (5,000 | ) | |||||
Weighted average shares outstanding of Class A ordinary shares | 17,250,000 | 17,250,000 | 0 | |||||||||
Basic and diluted net income per ordinary share, Class A ordinary shares | $ | 0.08 | $ | 0.44 | $ | 0 | ||||||
Weighted average shares outstanding of Class B ordinary shares | 4,312,500 | 4,312,500 | 3,750,000 | |||||||||
Basic and diluted net income per ordinary share, Class B ordinary shares | $ | 0.08 | $ | 0.44 | $ | 0 |
Class B Ordinary Shares | Additional Paid in | Retained Earnings/ | Total Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | (Accumulated Deficit) | Deficit | ||||||||||||||||
Balance — January 1, 2021 | 4,312,500 | $ | 431 | $ | 0 | $ | (32,801,182 | ) | $ | (32,800,751 | ) | |||||||||
Net income | — | 0 | 0 | 10,586,342 | 10,586,342 | |||||||||||||||
Balance — March 31, 2021 (unaudited) | 4,312,500 | 431 | 0 | (22,214,840 | ) | (22,214,409 | ) | |||||||||||||
Net loss | — | 0 | 0 | (2,655,288 | ) | (2,655,288 | ) | |||||||||||||
Balance — June 30, 2021 (unaudited) | 4,312,500 | 431 | 0 | (24,870,128 | ) | (24,869,697 | ) | |||||||||||||
Net income | — | 0 | 0 | 1,657,897 | 1,657,897 | |||||||||||||||
Balance — September 30, 2021 (unaudited) | 4,312,500 | $ | 431 | $ | 0 | $ | (23,212,231 | ) | $ | (23,211,800 | ) |
Class B Ordinary Shares | Additional Paid in | Accumulated | Total Shareholders’ | |||||||||||||||||
Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||
Balance – August 20, 2020 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of Class B ordinary shares to Sponsor | 4,312,500 | 431 | 24,569 | 0 | 25,000 | |||||||||||||||
Net loss | — | 0 | 0 | (5,000 | ) | (5,000 | ) | |||||||||||||
Balance – September 30, 2020 | 4,312,500 | $ | 431 | $ | 24,569 | $ | (5,000 | ) | $ | 20,000 |
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid in | Retained Earnings/ | Total Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | (Accumulated Deficit) | Equity | ||||||||||||||||||||||
Balance — January 1, 2021 | 3,742,212 | $ | 372 | 4,312,500 | $ | 431 | $ | 12,797,958 | $ | (7,798,760 | ) | $ | 5,000,001 | |||||||||||||||
Change in valuation of Class A Ordinary shares subject to possible redemption | (1,042,989 | ) | (104 | ) | — | — | (10,586,234 | ) | — | (10,586,338 | ) | |||||||||||||||||
Net income | — | — | — | — | — | 10,586,342 | 10,586,342 | |||||||||||||||||||||
Balance — March 31, 2021 (unaudited) | 2,681,223 | $ | 268 | 4,312,500 | $ | 431 | $ | 2,221,724 | $ | 2,787,582 | $ | 5,000,005 |
Nine Months Ended September 30, | For the Period from August 20, 2020 (Inception) through September 30 | |||||||
2021 | 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 9,588,951 | $ | (5,000 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of warrants | (10,835,067 | ) | 0 | |||||
Interest earned on marketable investments held in Trust Account | (16,799 | ) | 0 | |||||
Formation cost paid by Sponsor in exchange for issuance of founder shares | 0 | 5,000 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 217,773 | 0 | ||||||
Accrued expenses | 798,234 | 0 | ||||||
Net cash used in operating activities | (246,908 | ) | 0 | |||||
Net Change in Cash | (246,908 | ) | 0 | |||||
Cash – Beginning | 1,478,928 | 0 | ||||||
Cash – Ending | $ | 1,232,020 | $ | 0 | ||||
Non-Cash Investing and Financing Activities: | ||||||||
Offering costs included in accrued offering costs | $ | 0 | $ | 62,450 | ||||
Offering costs paid by Sponsor in exchange for issuance of founder shares | $ | 0 | $ | 20,000 | ||||
Offering costs paid through promissory note | $ | 0 | $ | 4,000 |
Cash Flows from Operating Activities: | ||||
Net loss | $ | 10,586,342 | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of warrants | (10,825,645 | ) | ||
Interest earned on marketable securities held in Trust Account | (8,192 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 74,552 | |||
Accrued expenses | 123,099 | |||
Net cash used in operating activities | (49,844 | ) | ||
Net Change in Cash | (49,844 | ) | ||
Cash – Beginning | 1,478,928 | |||
Cash – Ending | $ | 1,428,084 | ||
Non-Cash Investing and Financing Activities: | ||||
Change in value of Class A ordinary shares subject to possible redemption | $ | 10,586,338 |
Balance Sheet as of December 31, 2020 (audited) | As Previously Reported | Adjustment | As Revised | |||||||||
Class A ordinary shares subject to possible redemption | $ | 137,286,748 | $ | 37,800,752 | $ | 175,087,500 | ||||||
Class A ordinary shares | $ | 372 | $ | (372 | ) | $ | 0 | |||||
Additional paid-in capital | $ | 12,797,958 | $ | (12,797,958 | ) | $ | 0 | |||||
Accumulated deficit | $ | (7,798,760 | ) | $ | (25,002,422 | ) | $ | (32,801,182 | ) | |||
Total Shareholders’ Equity (Deficit) | $ | 5,000,001 | $ | (37,800,752 | ) | $ | (32,800,751 | ) |
Gross proceeds | $ | 175,087,500 | ||
Less: | ||||
Proceeds allocated to Public Warrants | $ | (13,196,250 | ) | |
Class A ordinary shares issuance costs | $ | (9,243,241 | ) | |
Excess funds in trust from sale of Private Warrants | $ | (2,587,500 | ) | |
Plus: | ||||
Accretion of carrying value to redemption value | $ | 25,026,991 | ||
Class A ordinary shares subject to possible redemption | $ | 175,087,500 |
For the Three Months Ended March 31, 2021 | ||||
Class A Ordinary Shares | ||||
Numerator: Earnings allocable to Class A Ordinary Shares | ||||
Interest Income | $ | 8,192 | ||
Net Earnings | $ | 8,192 | ||
Denominator: Weighted Average Redeemable Class A Ordinary Shares | | |||
Redeemable Class A Ordinary Shares, Basic and Diluted | 17,250,000 | |||
Earnings/Basic and Diluted Redeemable Class A Ordinary Shares | — | |||
Class B Ordinary Shares | ||||
Numerator: Net Income minus Net Earnings | ||||
Net Income (Loss) | $ | 10,586,342 | ||
Net Earnings | $ | (8,192 | ) | |
Net Loss | $ | 10,578,150 | ||
Denominator: Weighted Average Non-Redeemable Class B Ordinary Shares | ||||
Non-Redeemable Class B Ordinary Shares, Basic and Diluted | 4,312,500 | |||
Loss/Basic and Diluted Class B Ordinary Shares | $ | 2.45 |
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period from August 20, 2020 (Inception) Through September 30, 2020 | ||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||
Basic and diluted net loss per ordinary share | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Allocation of net loss, as adjusted | $ | 1,326,318 | $ | 331,579 | $ | 7,671,161 | $ | 1,917,790 | $ | 0 | $ | (5,000 | ) | |||||||||||
Denominator: | ||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 17,250,000 | 4,312,500 | 17,250,000 | 4,312,500 | 0 | 3,750,000 | ||||||||||||||||||
Basic and diluted net loss per ordinary share | $ | 0.08 | $ | 0.08 | $ | 0.44 | $ | 0.44 | $ | 0 | $ | 0 |
■ | in whole and not in part; | |
■ | at a price of $0.01 per warrant; | |
■ | upon a minimum of 30 days’ prior written notice of redemption; and | |
■ | if, and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share (as adjusted) for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. |
■ | in whole and not in part; | |
■ | at a price of $0.10 per warrant; | |
■ | upon a minimum of 30 days’ prior written notice of redemption; provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares determined based on the redemption date and the fair market value of the Class A ordinary shares; | |
■ | if, and only if, the closing price of the Class A ordinary shares equal or exceeds $10.00 per public share (as adjusted) for any 20 trading days within the 30-trading day period ending three trading days before the Company send the notice of redemption of the warrant holders; and | |
■ | if the closing price of the Class A ordinary shares for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants. |
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. |
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. |
Unobservable inputs based on an assessment of the assumptions that market participants would use in pricing the asset or liability. |
Description | Level | March 31, 2021 | December 31, 2020 | Level as of September 30, 2021 | September 30, 2021 | December 31, 2020 | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Marketable securities held in Trust Account – U.S. Treasury Securities Money Market Fund | 1 | $ | 175,097,723 | $ | 175,089,531 | |||||||||||||||||||
Marketable investments held in Trust Account – U.S. Treasury Securities Money Market Fund | 1 | $ | 175,106,330 | $ | 175,089,531 | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Warrant liability – Public Warrants | 3 | - | 14,403,750 | 1 | 5,131,875 | 0 | ||||||||||||||||||
Warrant liability – Public Warrants | 1 | 5,778,750 | - | 3 | 0 | 14,403,750 | ||||||||||||||||||
Warrant liability – Private Placement Warrants | 3 | 11,458,529 | 13,659,174 | 3 | 12,095,982 | 13,659,174 |
Fair value as of January 1, 2021 | $ | 28,062,954 | ||
Change in fair value | (10,825,645 | ) | ||
Transfer of Public warrants to level 1 | (5,778,750 | ) | ||
Fair value as of March 31, 2021 | $ | 11,458,529 |
Fair value as of January 1, 2021 | $ | 28,062,924 | ||
Change in fair value | (10,825,645 | ) | ||
Transfer of Public warrants to level 1 | (5,778,750 | ) | ||
Fair value as of March 31, 2021 | 11,458,529 | |||
Change in fair value | 1,081,281 | |||
Fair value as of June 30, 2021 | 12,539,810 | |||
Change in fair value | (443,828 | ) | ||
Fair value as of September 30, 2021 | $ | 12,095,982 |
Input | September 30, 2021 | December 31, 2020 | ||||||
Risk-free interest rate | 0.98 | % | 0.56 | % | ||||
Trading days per year | 252 | 252 | ||||||
Volatility | 22.0 | % | 28.0 | % | ||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock Price | $ | 10.00 | $ | 9.54 |
Input | March 31, 2021 (Private Warrants) | December 31, 2020 (Private Warrants) | December 31, 2020 (Public Warrants) | |||||||||
Risk-free interest rate | 0.92 | % | 0.56 | % | 0.56 | % | ||||||
Trading days per year | 252 | 252 | 252 | |||||||||
Expected volatility | 22.0 | % | 28.0 | % | 28.0 | % | ||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 11.50 | ||||||
Stock Price | $ | 9.85 | $ | 9.54 | $ | 9.54 |
ITEM 2. |
ITEM 3. |
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 |
No. | Description of Exhibit | |
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||
101.INS* | XBRL Instance Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. |
** | Furnished. |
L&F ACQUISITION CORP. | ||
Date: | /s/ Adam Gerchen | |
Name: | Adam Gerchen | |
Title: | Chief Executive Officer | |
(Principal Executive Officer) | ||
Date: November 12, 2021 | /s/ Tom Gazdziak | |
Name: | Tom Gazdziak | |
Title: | Chief Financial Officer | |
(Principal Financial and Accounting Officer) |