☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Cayman Islands | 98-1581691 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
New York, NY 10001 | 10001 | |
( | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each | ||||
Class A ordinary shares included as part of the Units, par value $0.0001 per share | APTM | The Nasdaq Stock Market LLC | ||||
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | APTMW | The Nasdaq Stock Market LLC | ||||
Units, each consisting of one Class A ordinary share and one-third of one redeemable warrant to acquire one Class A ordinary share | APTMU | The Nasdaq Stock Market LLC |
Large accelerated filer ☐ | Accelerated filer | ☐ | ||||
Non-accelerated filer ☒ | Smaller reporting company | ☒ | ||||
Emerging growth company ☒ | ||||||
Page | ||||||
PART 1 - FINANCIAL INFORMATION | ||||||
Item 1. | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
Item 2. | 23 | |||||
Item 3. | 29 | |||||
Item 4. | 29 | |||||
Item 1. | 30 | |||||
Item 1A. | 30 | |||||
Item 2. | 30 | |||||
Item 3. | 30 | |||||
Item 4. | 30 | |||||
Item 5. | 30 | |||||
Item 6. | 30 | |||||
31 |
June 30, 2023 | December 31, 2022 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash | $ | 304,513 | $ | 726,869 | ||||
Prepaid expenses | 60,198 | 193,947 | ||||||
Total current assets | 364,711 | 920,816 | ||||||
Investments held in Trust Account | 293,076,995 | 286,583,051 | ||||||
Total Assets | $ | 293,441,706 | $ | 287,503,867 | ||||
LIABILITIES AND SHAREHOLDERS’ DEFICIT | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 54,892 | $ | 38,866 | ||||
Accounts payable - related party | 24,442 | 15,377 | ||||||
Accrued expenses and other current liabilities | 1,062,220 | 1,214,321 | ||||||
Total current liabilities | 1,141,554 | 1,268,564 | ||||||
Warrant liabilities | 482,367 | 482,367 | ||||||
Deferred underwriting fee payable | 9,887,500 | 9,887,500 | ||||||
Total Liabilities | 11,511,421 | 11,638,431 | ||||||
Commitments (Note 6) | ||||||||
Class A ordinary shares subject to possible redemption, 28,250,000 shares at redemption value | 293,076,995 | 286,583,051 | ||||||
Shareholders’ Deficit | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 865,000 shares issued and outstanding (excluding 28,250,000 shares subject to possible redemption) | 87 | 87 | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 7,062,500 shares issued and outstanding | 706 | 706 | ||||||
Additional paid-in capital | — | — | ||||||
Accumulated deficit | (11,147,503 | ) | (10,718,408 | ) | ||||
Total Shareholders’ Deficit | (11,146,710 | ) | (10,717,615 | ) | ||||
Total Liabilities and Shareholders’ Deficit | $ | 293,441,706 | $ | 287,503,867 |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||
Operating and formation costs | $ | 353,926 | $ | 575,990 | $ | 804,694 | $ | 1,200,530 | ||||||||
Loss from operations | (353,926 | ) | (575,990 | ) | (804,694 | ) | (1,200,530 | ) | ||||||||
Other income: | ||||||||||||||||
Interest income on bank account | 617 | — | 624 | — | ||||||||||||
Interest and dividend income on investments held in Trust Account | 3,453,154 | 381,481 | 6,493,944 | 409,811 | ||||||||||||
Gain related to potential business combination | — | — | 374,975 | — | ||||||||||||
Gain on change in fair value of warrant liabilities | 844,141 | 3,203,124 | — | 7,017,383 | ||||||||||||
Net income | $ | 3,943,986 | $ | 3,008,615 | $ | 6,064,849 | $ | 6,226,664 | ||||||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares | 29,115,000 | 29,115,000 | 29,115,000 | 29,115,000 | ||||||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | 0.11 | $ | 0.08 | $ | 0.17 | $ | 0.17 | ||||||||
Basic and diluted weighted average shares outstanding, Class B ordinary shares | 7,062,500 | 7,062,500 | 7,062,500 | 7,062,500 | ||||||||||||
Basic and diluted net income per share, Class B ordinary shares | $ | 0.11 | $ | 0.08 | $ | 0.17 | $ | 0.17 |
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance as of January 1, 2023 | 865,000 | $ | 87 | 7,062,500 | $ | 706 | $ | — | $ | (10,718,408 | ) | $ | (10,717,615 | ) | ||||||||||||||
Remeasurement of Class A ordinary shares to redemption amount as of March 31, 2023 | — | — | — | — | — | (3,040,790 | ) | (3,040,790 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 2,120,863 | 2,120,863 | |||||||||||||||||||||
Balance as of March 31, 2023 | 865,000 | 87 | 7,062,500 | 706 | $ | — | (11,638,335 | ) | (11,637,542 | ) | ||||||||||||||||||
Remeasurement of Class A ordinary shares to redemption amount as of June 30, 2023 | — | — | — | — | — | (3,453,154 | ) | (3,453,154 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 3,943,986 | 3,943,986 | |||||||||||||||||||||
Balance as of June 30, 2023 | 865,000 | $ | 87 | 7,062,500 | $ | 706 | $ | - | $ | (11,147,503 | ) | $ | (11,146,710 | ) |
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Deficit | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance as of January 1, 2022 | 865,000 | $ | 87 | 7,062,500 | $ | 706 | $ | — | $ | (15,699,275 | ) | $ | (15,698,482 | ) | ||||||||||||||
Remeasurement of Class A ordinary shares to redemption amount as of March 31, 2022 | — | — | — | — | — | (28,330 | ) | (28,330 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 3,218,049 | 3,218,049 | |||||||||||||||||||||
Balance as of March 31, 2022 | 865,000 | 87 | 7,062,500 | 706 | — | (12,509,556 | ) | (12,508,763 | ) | |||||||||||||||||||
Remeasurement of Class A ordinary shares to redemption amount as of June 30, 2022 | — | — | — | — | — | (381,481 | ) | (381,481 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 3,008,615 | 3,008,615 | |||||||||||||||||||||
Balance as of June 30, 2022 | 865,000 | $ | 87 | 7,062,500 | $ | 706 | $ | — | $ | (9,882,422 | ) | $ | (9,881,629 | ) |
ASSETS | ||||
Current asset - cash | $ | 500,000 | ||
Deferred offering costs | 536,703 | |||
Total Assets | $ | 1,036,703 | ||
LIABILITIES AND SHAREHOLDER’S DEFICIT | ||||
Current liabilities | ||||
Accrued offering costs | $ | 372,065 | ||
Advance from anchor investor | 500,000 | |||
Promissory note - related party | 151,402 | |||
Total current liabilities | 1,023,467 | |||
Warrant liability | 2,036,458 | |||
Total Liabilities | 3,059,925 | |||
Commitments (see Note 6) | 0 | |||
Shareholder’s Deficit | ||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0 | |||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 0ne issued and outstanding | 0 | |||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 7,187,500 shares issued and outstanding (1) | 719 | |||
Additional paid-in capital | 15,948 | |||
Accumulated deficit | (2,039,889 | ) | ||
Total Shareholder’s Deficit | (2,023,222 | ) | ||
Total Liabilities and Shareholder’s Deficit | $ | 1,036,703 | ||
Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 6,064,849 | $ | 6,226,664 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Interest and dividend income on investments held in Trust Account | (6,493,944 | ) | (409,811 | ) | ||||
Gain on change in fair value of warrant liability | — | (7,017,383 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 133,749 | 141,790 | ||||||
Accounts payable | 16,026 | (39,363 | ) | |||||
Accounts payable - related party | 9,065 | (26,115 | ) | |||||
Accrued expenses and other current liabilities | (152,101 | ) | 392,940 | |||||
Net cash used in operating activities | (422,356 | ) | (731,278 | ) | ||||
Net Change in Cash | (422,356 | ) | (731,278 | ) | ||||
Cash - Beginning of period | 726,869 | 2,124,185 | ||||||
Cash - End of period | $ | 304,513 | $ | 1,392,907 | ||||
Non-cash investing and financing activities | ||||||||
Remeasurement of Class A ordinary shares subject to redemption to redemption value | $ | 6,493,944 | $ | 409,811 |
Three Months Ended June 30, 2021 | For the Period from February 5, 2021 (Inception) Through June 30, 2021 | |||||||
Formation costs | $ | 0 | $ | 11,764 | ||||
Loss from operations | 0 | (11,764 | ) | |||||
Change in fair value of warrant liability | 215,625 | (814,583 | ) | |||||
Loss on sale of warrants | 0 | (1,213,542 | ) | |||||
Net income (loss) | $ | 215,625 | $ | (2,039,889 | ) | |||
Weighted average shares outstanding, basic and diluted (1) | 6,250,000 | 6,250,000 | ||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.03 | $ | (0.33 | ) | |||
Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholder’s Deficit | |||||||||||||||||
Shares | Amount | |||||||||||||||||||
Balance at February 5, 2021 (inception) | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Issuance of Class B ordinary shares to Sponsor (1) | 7,187,500 | 719 | 15,948 | 0 | 16,667 | |||||||||||||||
Net loss | — | — | — | (2,255,514 | ) | (2,255,514 | ) | |||||||||||||
Balance at March 31, 2021 | 7,187,500 | 719 | 15,948 | (2,255,514 | ) | (2,238,847 | ) | |||||||||||||
Net income | — | — | — | 215,625 | 215,625 | |||||||||||||||
Balance at June 30, 2021 | 7,187,500 | $ | 719 | $ | 15,948 | $ | (2,039,889 | ) | $ | (2,023,222 | ) | |||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (2,039,889 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Payment of formation costs through issuance of Class B ordinary shares | 11,764 | |||
Change in fair value of warrant liability | 814,583 | |||
Loss on sale of warrants | 1,213,542 | |||
Net cash provided by (used in) operating activities | 0 | |||
Cash Flows from Financing Activities: | ||||
Advance from anchor investor | 500,681 | |||
Repayment of advance from anchor investor | (681 | ) | ||
Net cash provided by financing activities | 500,000 | |||
Net Change in Cash | 500,000 | |||
Cash - Beginning of period | 0 | |||
Cash - End of period | $ | 500,000 | ||
Non-cash investing and financing activities | ||||
Initial classification of warrant liability | $ | 1,221,875 | ||
Deferred offering included in accrued offering costs | $ | 372,065 | ||
Deferred offering costs included in promissory note—related party | $ | 151,402 | ||
Deferred offering costs paid by an affiliate of the Sponsor in exchange for issuance of Founder Units | $ | 13,236 | ||
Class A ordinary shares subject to possible redemption as of December 31, 2022 | $ | 286,583,051 | ||
Remeasurement of carrying value to redemption value as of March 31, 2023 | 3,040,790 | |||
Class A ordinary shares subject to possible redemption as of March 31, 2023 | 289,623,841 | |||
Remeasurement of carrying value to redemption value as of June 30, 2023 | 3,453,154 | |||
Class A ordinary shares subject to possible redemption as of June 30, 2023 | $ | 293,076,995 |
Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||
Basic and diluted net income per share: | ||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||
Net income | $ | 3,174,049 | $ | 769,937 | $ | 2,421,279 | $ | 587,336 | $ | 4,880,881 | $ | 1,183,968 | $ | 5,011,107 | $ | 1,215,557 | ||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 29,115,000 | 7,062,500 | 29,115,000 | 7,062,500 | 29,115,000 | 7,062,500 | 29,115,000 | 7,062,500 | ||||||||||||||||||||||||
Basic and diluted net income per share | $ | 0.11 | $ | 0.11 | $ | 0.08 | $ | 0.08 | $ | 0.17 | $ | 0.17 | $ | 0.17 | $ | 0.17 |
Description | Amount at Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
June 30, 2023 | ||||||||||||||||
Assets | ||||||||||||||||
Investments held in Trust Account: | ||||||||||||||||
Money Market investments | $ | 293,076,995 | $ | 293,076,995 | $ | — | $ | — | ||||||||
Liabilities | ||||||||||||||||
Warrant liability – Founder Warrants | $ | 94,167 | $ | — | $ | 94,167 | $ | — | ||||||||
Warrant liability – Private Placement Warrants | $ | 11,533 | $ | — | $ | 11,533 | $ | — | ||||||||
Warrant liability – Public Warrants | $ | 376,667 | $ | 376,667 | $ | — | $ | — | ||||||||
December 31, 2022 | ||||||||||||||||
Assets | ||||||||||||||||
Investments held in Trust Account: | ||||||||||||||||
Money Market investments | $ | 286,583,051 | $ | 286,583,051 | $ | — | $ | — | ||||||||
Liabilities | ||||||||||||||||
Warrant liability – Founder Warrants | $ | 94,167 | $ | — | $ | 94,167 | $ | — | ||||||||
Warrant liability – Private Placement | 11,533 | — | 11,533 | — | ||||||||||||
Warrant liability – Public Warrants | 376,667 | 376,667 | — | — |
Description | Amount at Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
June 30, 2021 | ||||||||||||||||
Liabilities | ||||||||||||||||
Warrant liability – Founder Warrants | $ | 2,036,458 | $ | 0 | $ | 0 | $ | 2,036,458 |
As of June 30, 2021 | At February 5, 2021 (Initial Measurement) | |||||||
Stock price | $ | 9.65 | $ | 9.58 | ||||
Strike price | $ | 11.50 | $ | 11.50 | ||||
Term (in years) | 5.5 | 5.5 | ||||||
Volatility | 20.0 | % | 25.0 | % | ||||
Risk-free rate | 1.0 | % | 0.6 | % | ||||
Dividend yield | 0 | % | 0 | % | ||||
Probability of successful Proposed Public Offering | 80.0 | % | 38.0 | % | ||||
Probability of completing a Business Combination | 80.0 | % | 80.0 | % | ||||
Fair value of warrants | $ | 0.85 | $ | 0.51 |
Fair value as of December 31, 2021 | $ | 2,061,150 | ||
Change in fair value of Private Placement Warrants and Founder Warrants | (1,083,425 | ) | ||
Fair value as of March 31, 2022 | 977,725 | |||
Change in fair value of Private Placement Warrants and Founder Warrants | (660,625 | ) | ||
Fair value as of June 30, 2022 | 317,100 | |||
Change in fair value of Private Placement Warrants and Founder Warrants | (26,425 | ) | ||
Fair value as of September 30, 2022 | 290,675 | |||
Change in fair value of Private Placement Warrants and Founder Warrants | (184,975 | ) | ||
Transfer of Private Warrants, and Founder Warrants to Level 2 measurement | (105,700 | ) | ||
Fair value as of December 31, 2022 | $ | — |
Warrant Liability | ||||
Initial measurement at February 5, 2021 | $ | 1,221,875 | ||
Change in fair value | 1,030,208 | |||
Fair value as of March 31, 2021 | 2,252,083 | |||
Change in fair value | (215,625 | ) | ||
Fair value as of June 30, 2021 (un audited) | $ | 2,036,458 | ||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk. |
ITEM 6. | EXHIBITS |
* | Filed herewith. |
** | Furnished. |
Alpha Partners Technology Merger Corp. | |||||||
Date: August 21, 2023 | By: | /s/ Matthew R. Krna | |||||
Matthew R. Krna | |||||||
Chief Executive Officer |
Alpha Partners Technology Merger Corp. | |||||||
Date: August 21, 2023 | By: | /s/ Sean O’Brien | |||||
Sean O’Brien | |||||||
Chief Financial Officer |