☒ | 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 | 84-3415215 | |
(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 Class A Common Stock, $0.0001 par value, and one-fifth of one redeemable warrant | PICC.U | The New York Stock Exchange | ||
Class A Common Stock, $0.0001 par value | PICC | The New York Stock Exchange | ||
Redeemable warrants, exercisable for shares of common stock at an exercise price of $11.50 per share | PICC WS | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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Item 1. | Interim Financial Statements. |
March 31, | December 31, | |||||||||||||||
June 30, 2021 | December 31, 2020 | 2022 | 2021 | |||||||||||||
(Unaudited) | (Audited) | (unaudited) | ||||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash | $ | 972,835 | $ | 0 | $ | 334,253 | $ | 563,923 | ||||||||
Prepaid expenses | 210,940 | 0 | 103,770 | 135,734 | ||||||||||||
Total Current Assets | 1,183,775 | 0 | 438,023 | 699,657 | ||||||||||||
Deferred offering costs | 0 | 51,025 | ||||||||||||||
Marketable securities held in Trust Account | 276,027,908 | 0 | 276,116,810 | 276,079,114 | ||||||||||||
TOTAL ASSETS | $ | 277,211,683 | $ | 51,025 | $ | 276,554,833 | $ | 276,778,771 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accounts payable and accrued expenses | $ | 160,241 | $ | 851 | $ | 2,054,914 | $ | 1,460,005 | ||||||||
Accrued offering costs | 91,025 | 26,025 | ||||||||||||||
Total Current Liabilities | 251,266 | 26,876 | 2,054,914 | 1,460,005 | ||||||||||||
Warrant liabilities | 15,475,900 | 0 | 5,883,400 | 12,150,500 | ||||||||||||
Deferred underwriting fee payable | 9,660,000 | 0 | 9,660,000 | 9,660,000 | ||||||||||||
TOTAL LIABILITIES | 25,387,166 | 26,876 | 17,598,314 | 23,270,505 | ||||||||||||
Commitments and Contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Class A common stock subject to possible redemption 24,682,451 shares outstanding and NaN outstanding at redemption value as of June 30, 2021 and December 31, 2020, respectively | 246,824,510 | 0 | ||||||||||||||
Stockholders’ Equity | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding | 0 | 0 | ||||||||||||||
Class A common stock, $0.0001 par value; 125,000,000 shares authorized; 2,917,549 and 0 shares issued and outstanding (excluding 24,682,451 and 0 shares subject to possible redemption) as of June 30, 2021 and none on December 31, 2020, respectively | 292 | 0 | ||||||||||||||
Class B common stock, $0.0001 par value; 25,000,000 shares authorized; 6,900,000 shares issued and outstanding, as of June 30, 2021 and December 31, 2020 | 690 | 690 | ||||||||||||||
Class A common stock subject to possible redemption 27,600,000 shares outstanding at redemption value as of March 31, 2022 and December 31, 2021 | 276,000,000 | 276,000,000 | ||||||||||||||
Stockholders’ Deficit | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0shares issued and outstanding | 0 | 0 | ||||||||||||||
Class B common stock, $0.0001 par value; 25,000,000 shares authorized; 6,900,000 shares issued and outstanding, as of March 31, 2022 and December 31, 2021 | 690 | 690 | ||||||||||||||
Additional paid-in capital | 5,137,850 | 24,310 | 0 | 0 | ||||||||||||
Accumulated deficit | (138,825 | ) | (851 | ) | (17,044,171 | ) | (22,492,424 | ) | ||||||||
Total Stockholders’ Equity | 5,000,007 | 24,149 | ||||||||||||||
Total Stockholders’ Deficit | (17,043,481 | ) | (22,491,734 | ) | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 277,211,683 | $ | 51,025 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 276,554,833 | $ | 276,778,771 | ||||||||||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Operating and formation costs | $ | 196,310 | $ | 326,103 | ||||
Loss from operations | (196,310 | ) | (326,103 | ) | ||||
Other income: | ||||||||
Change in fair value of warrants | 6,855,440 | 686,820 | ||||||
Transaction costs allocated to warrant liabilities | 0— | (526,599 | ) | |||||
Interest earned on marketable securities held in Trust Account | 19,281 | 29,746 | ||||||
Unrealized loss on marketable securities held in Trust Account | (10,351 | ) | (1,838 | ) | ||||
Total other income, net | 6,864,370 | 188,129 | ||||||
Net income (loss) | $ | 6,668,060 | $ | (137,974 | ) | |||
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption | 24,015,645 | 24,101,033 | ||||||
Basic and diluted net loss per share, Class A common stock subject to possible redemption | $ | 0.00 | $ | 0.00 | ||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 10,484,355 | 9,413,919 | ||||||
Basic and diluted net loss per share, Non-redeemable common stock | $ | 0.64 | $ | (0.01 | ) | |||
For the Three Months Ended March 31, | For the Three Months Ended March 31, | |||||||
2022 | 2021 | |||||||
Operating and formation costs | $ | 856,543 | $ | 129,793 | ||||
Loss from operations | (856,543 | ) | (129,793 | ) | ||||
Other income (expenses): | ||||||||
Change in fair value of warrant liabilities | 6,267,100 | (6,168,620 | ) | |||||
Transaction costs allocated to warrant liabilities | 0 | (526,599 | ) | |||||
Interest earned on marketable securities held in Trust Account | 35,833 | 10,465 | ||||||
Unrealized gain on marketable securities held in Trust Account | 1,863 | 8,513 | ||||||
Total other income (expense), net | 6,304,796 | (6,676,241 | ) | |||||
Net income (loss) | $ | 5,448,253 | $ | (6,806,034 | ) | |||
Basic and diluted weighted average shares outstanding, Class A common stock | 27,600,000 | 14,885,393 | ||||||
Basic and diluted net income (loss) per share, Class A common stock | $ | 0.16 | $ | (0.32 | ) | |||
Basic and diluted weighted average shares outstanding, Class B common stock | 6,900,000 | 6,485,393 | ||||||
Basic and diluted net income (loss) per share, Class B common stock | $ | 0.16 | $ | (0.32 | ) | |||
Class A Common Stock | Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance – January 1, 2021 | 0 | $ | 0 | 6,900,000 | $ | 690 | $ | 24,310 | $ | (851 | ) | $ | 24,149 | |||||||||||||||
Sale of 27,600,000 Unit, net of underwriting discounts, initial value of public and private placement warrants, and offering expenses | 27,600,000 | 2,760 | — | — | 244,665,582 | — | 244,668,342 | |||||||||||||||||||||
Sale of 7,270,000 Private Placement Warrants | — | — | — | — | 7,270,000 | — | 7,270,000 | |||||||||||||||||||||
Class A common stock subject to possible redemption | (24,015,645 | ) | (2,402 | ) | — | — | (240,154,048 | ) | — | (240,156,450 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | (6,806,034 | ) | (6,806,034 | ) | |||||||||||||||||||
Balance – March 31, 2021 | 3,584,355 | $ | 358 | 6,900,000 | $ | 690 | $ | 11,805,844 | $ | (6,806,885 | ) | $ | 5,000,007 | |||||||||||||||
Change in fair value of Class A common stock subject to possible redemption | (666,806 | ) | (66 | ) | — | — | (6,667,994 | ) | — | (6,668,060 | ) | |||||||||||||||||
Net income | — | — | — | — | — | 6,668,060 | 6,668,060 | |||||||||||||||||||||
Balance – June 30, 2021 | 2,917,549 | $ | 292 | 6,900,000 | $ | 690 | $ | 5,137,850 | $ | (138,825 | ) | $ | 5,000,007 | |||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance – January 1, 2022 | 0 | $ | 0 | 6,900,000 | $ | 690 | $ | 0 | $ | (22,492,424 | ) | $ | (22,491,734 | ) | ||||||||||||||
Net incom e | — | — | — | — | — | 5,448,253 | 5,448,253 | |||||||||||||||||||||
Balance – March 31, 2022 | 0 | $ | 0 | 6,900,000 | $ | 690 | $ | 0 | $ | (17,044,171 | ) | $ | (17,043,481 | ) | ||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity (Deficit) | ||||||||||||||||||||||
Balance – January 1, 2021 | 0 | $ | 0 | 6,900,000 | $ | 690 | $ | 24,310 | $ | (851 | ) | $ | 24,149 | |||||||||||||||
Remeasurement adjustment on redeemable common stock | — | — | — | — | (7,294,310 | ) | (24,037,348 | ) | (31,331,658 | ) | ||||||||||||||||||
Sale of 7,270,000 Private Placement Warrants | — | — | — | — | 7,270,000 | — | 7,270,000 | |||||||||||||||||||||
Net los s | — | — | — | — | — | (6,806,034 | ) | (6,806,034 | ) | |||||||||||||||||||
Balance – March 31, 2021 | 0 | $ | 0 | 6,900,000 | $ | 690 | $ | 0 | $ | (30,844,233 | ) | $ | (30,843,543 | ) | ||||||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (137,974 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of warrant liabilities | (686,820 | ) | ||
Interest earned on marketable securities held in Trust Account | (29,746 | ) | ||
Transaction costs allocated to warrant liabilities | 526,599 | |||
Unrealized loss on marketable securities held in Trust Account | 1,838 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (210,940 | ) | ||
Accounts payable and accrued expenses | 159,390 | |||
Net cash used in operating activities | (377,653 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (276,000,000 | ) | ||
Net cash used in investing activitie s | (276,000,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from sale of Units, net of underwriting discounts paid | 270,480,000 | |||
Proceeds from sale of Private Warrants | 7,270,000 | |||
Repayment of promissory note – related party | (125,000 | ) | ||
Proceeds from promissory note – related party | 125,000 | |||
Payment of offering costs | (399,512 | ) | ||
Net cash provided by financing activities | 277,350,488 | |||
Net Change in Cash | 972,835 | |||
Cash – Beginning of period | 0 | |||
Cash – End of period | $ | 972,835 | ||
Non-Cash investing and financing activities: | ||||
Offering costs included in accrued offering costs | $ | 91,025 | ||
Initial classification of Class A common stock subject to possible redemption | 241,993,920 | |||
Change in value of Class A common stock subject to possible redemption | $ | 4,830,590 | ||
Deferred underwriting fee payable | $ | 9,660,000 | ||
For the Three Months Ended March 31, | For the Three Months Ended March 31, | |||||||
2022 | 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 5,448,253 | $ | (6,806,034 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of warrant liabilities | (6,267,100 | ) | 6,168,620 | |||||
Transaction costs allocated to warrant liabilities | 0 | 526,599 | ||||||
Interest earned on marketable securities held in Trust Account | (35,833 | ) | (10,465 | ) | ||||
Unrealized gain on marketable securities held in Trust Account | (1,863 | ) | (8,513 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 31,964 | (21,923 | ) | |||||
Accounts payable and accrued expenses | 594,909 | 124,257 | ||||||
Net cash used in operating activities | (229,670 | ) | (27,459 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Investment of cash in Trust Account | 0 | (276,000,000 | ) | |||||
Net cash used in investing activities | 0 | (276,000,000 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from sale of Units, net of underwriting discounts paid | 0 | 270,480,000 | ||||||
Proceeds from sale of Private Placement Warrants | 0 | 7,270,000 | ||||||
Proceeds from promissory notes – related party | 0 | 125,000 | ||||||
Repayment of promissory notes – related party | 0 | (125,000 | ) | |||||
Payment of offering costs | 0 | (384,062 | ) | |||||
Net cash provided by in financing activities | 0 | 277,365,938 | ||||||
Net Change in Cash | (229,670 | ) | 1,338,479 | |||||
Cash – Beginning | $ | 563,923 | 0 | |||||
Cash – Ending | $ | 334,253 | $ | 1,338,479 | ||||
Non-cash investing and financing activities: | ||||||||
Offering costs included in accrued offering costs | $ | 0 | $ | 106,475 | ||||
Remeasurement adjustment on redeemable common stock | $ | 0 | $ | 31,331,658 | ||||
Deferred underwriting fee payable | $ | 0 | $ | 9,660,000 | ||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Class A Common stock subject to possible redemption | ||||||||
Numerator: Earnings allocable to Class A Common stock subject to possible redemption | ||||||||
Interest earned on marketable securities held in Trust Account | $ | 8,930 | $ | 27,908 | ||||
Less: interest available for payment of taxes | (8,930 | ) | (27,908 | ) | ||||
Net income attributable | $ | 0 | $ | 0 | ||||
Denominator: Weighted Average Class A Common stock subject to possible redemption | ||||||||
Basic and diluted weighted average shares outstanding, Class A Common stock subject to possible redemption | 24,015,645 | 24,101,033 | ||||||
Basic and diluted net income per share, Class A Common stock subject to possible redemption | $ | 0.00 | $ | 0.00 | ||||
Non-Redeemable Common Stock | ||||||||
Numerator: Net Income (Loss) minus Net Earnings | ||||||||
Net income (loss) | $ | 6,668,060 | $ | (137,974 | ) | |||
Net income (loss) allocable to Class A Common stock subject to possible redemption | 0 | 0 | ||||||
Non-Redeemable Net Income (Loss) | $ | 6,668,060 | $ | (137,974 | ) | |||
Denominator: Weighted Average Non-redeemable Common stock | ||||||||
Basic and diluted weighted average shares outstanding, Non-redeemable common stock | 10,484,355 | 9,413,919 | ||||||
Basic and diluted net loss per share, Non-redeemable common stock | $ | 0.64 | $ | (0.01 | ) | |||
For the Three Months Ended March 31, | For the Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per common stock | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss), as adjusted | $ | 4,358,602 | $ | 1,089,651 | $ | (4,740,607 | ) | $ | (2,065,427 | ) | ||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average shares outstanding | 27,600,000 | 6,900,000 | 14,885,393 | 6,485,393 | ||||||||||||
Basic and diluted net income (loss) per common stock | $ | 0.16 | $ | 0.16 | $ | (0.32 | ) | $ | (0.32 | ) |
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. |
Level | February 08, 2021 | June 30, 2021 | ||||||||||
Assets: | ||||||||||||
Marketable securities held in Trust Account | 1 | $ | — | $ | 276,027,908 | |||||||
Liabilities: | ||||||||||||
Warrant Liability – Public Warrants | 1 | $ | 11,711,970 | 6,679,200 | ||||||||
Warrant Liability – Private Placement Warrants | 3 | 8,892,720 | 8,796,700 |
Level | December 31, 2021 | March 31, 2022 | ||||||||||
Assets: | ||||||||||||
Marketable securities held in Trust Account | 1 | $ | 276,079,114 | $ | 276,116,810 | |||||||
Liabilities: | ||||||||||||
Warrant Liability – Private Placement Warrants | 1 | 6,906,500 | 3,344,200 | |||||||||
Warrant Liability – Public Warrants | 2 | 5,244,000 | 2,539,200 |
At February 8, 2021 (Initial Measurement) | As of June 30, 2021 | |||||||
Stock price | $ | 10.00 | $ | 9.75 | ||||
Strike price | $ | 11.50 | $ | 11.50 | ||||
Term (in years) | 6.00 | 5.61 | ||||||
Volatility | 24.0 | % | 18.2 | % | ||||
Risk-free rate | 0.65 | % | 0.97 | % | ||||
Private Placement(1) | Public | Warrant Liabilities | ||||||||||
Initial measurement on February 8, 2021 | $ | 11,711,970 | $ | 8,892,720 | 20,604,690 | |||||||
Change in valuation inputs or other assumptions | 981,450 | 745,200 | 1,726,650 | |||||||||
Fair value as of March 31, 2021 | 12,693,420 | 9,637,920 | 22,331,340 | |||||||||
Change in valuation inputs or other assumptions | (3,896,720 | ) | (2,958,720 | ) | (6,855,440 | ) | ||||||
Fair value as of June 30, 2021 | $ | 8,796,700 | $ | 6,679,200 | 15,475,900 | |||||||
Private Placement | Public | Warrant Liabilities | ||||||||||
Fair value as of December 31, 2021 | $ | 6,906,500 | $ | 5,244,000 | $ | 12,150,500 | ||||||
Change in valuation inputs or other assumptions | (3,562,300 | ) | (2,704,800 | ) | (6,267,100 | ) | ||||||
Fair value as of March 31, 2022 | $ | 3,344,200 | $ | 2,539,200 | $ | 5,883,400 |
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 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 6. | Exhibits |
No. | Description of Exhibit | |
31.1* | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2* | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1** | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2** | 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* | Inline XBRL Instance | |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104* | The cover page from the Company’s Quarterly report on Form 10-Q for the quarter ended |
* | Filed herewith. |
** | Furnished. |
PIVOTAL INVESTMENT CORPORATION III | ||||||
Date: | By: | /s/ Kevin Griffin | ||||
Name: | Kevin Griffin | |||||
Title: | Chief Executive Officer and | |||||
(Principal Executive Officer Officer) | ||||||
Date: | By: | /s/ Jim Brady | ||||
Name: | Jim Brady | |||||
Title: | Chief Financial Officer | |||||
(Principal Financial and Accounting Officer) |