☒ | 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 |
Cayman Islands | 001-40174 | 98-1572382 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) |
1 Circle Star Way San Carlos, California | 94070 | |
(Address Of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A ordinary shares, par value $0.0001 per share | SVFB | Nasdaq |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||
PART I. FINANCIAL INFORMATION | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 16 | |||||
Item 3. | 20 | |||||
Item 4. | 20 | |||||
PART II. OTHER INFORMATION | ||||||
Item 1. | 21 | |||||
Item | 21 | |||||
Item | ||||||
Item 3. | 22 | |||||
Item 4. | 22 | |||||
Item 5. | 22 | |||||
Item 6. | 22 |
Item 1. | Condensed Financial Statements |
September 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 1,638,738 | $ | 0 | ||||
Prepaid expenses | 1,047,306 | 7,430 | ||||||
Total current assets | 2,686,044 | 7,430 | ||||||
Investments held in Trust Account | 230,007,797 | — | ||||||
Deferred offering costs associated with the initial public offering | — | 126,750 | ||||||
Total Assets | $ | 232,693,841 | $ | 134,180 | ||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 34,905 | $ | 9,000 | ||||
Accrued expenses | 177,789 | 100,000 | ||||||
Due to related party | 224,321 | — | ||||||
Note payable - related party | — | 17,750 | ||||||
Total current liabilities | 437,015 | 126,750 | ||||||
Deferred underwriting commissions | 8,050,000 | — | ||||||
Total liabilities | 8,487,015 | 126,750 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 23,000,000 and -0- | 230,000,000 | 0 | ||||||
Shareholders’ Equity (Deficit) | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 760,000 and -0- (excluding 23,000,000 shares subject to possible redemption) and December 31 , 2020, respectively | 76 | — | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,750,000 shares issued and outstanding as of September 3 1 , 2021 and December 31 , 2020 | 575 | 575 | ||||||
Additional paid-in capital | — | 24,425 | ||||||
Accumulated deficit | (5,793,825 | ) | (17,570 | ) | ||||
Total shareholders’ equity (deficit) | (5,793,174 | ) | 7,430 | |||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) | $ | 232,693,841 | $ | 134,180 | ||||
March 31, 2021 | December 31, 2020 | |||||||
(Unaudited) (Restated) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 1,096,398 | $ | — | ||||
Due from underwriter | 460,000 | — | ||||||
Prepaid expenses | 1,399,582 | 7,430 | ||||||
Due from related party | 84,420 | — | ||||||
Total current assets | 3,040,400 | 7,430 | ||||||
Investments held in Trust Account | 230,000,768 | — | ||||||
Deferred offering costs associated with the initial public offering | — | 126,750 | ||||||
Total Assets | $ | 233,041,168 | $ | 134,180 | ||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 63,805 | $ | 9,000 | ||||
Accrued expenses | 159,782 | 100,000 | ||||||
Due to related party | 13,844 | — | ||||||
Note payable - related party | — | 17,750 | ||||||
Total current liabilities | 237,431 | 126,750 | ||||||
Deferred underwriting commissions | 8,050,000 | — | ||||||
Total liabilities | 8,287,431 | 126,750 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 23,000,000 and 0 shares issued and outstanding at $10.00 per share as of March 31, 2021 and December 31, 2020, respectively | 230,000,000 | 0 | ||||||
Shareholders’ Equity (Deficit) | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 760,000 and 0 shares issued and outstanding (excluding 23,000,000 and 0 shares subject to possible redemption) as of March 31, 2021 and December 31, 2020, respectively | 76 | — | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,750,000 shares issued and outstanding as of March 31, 2021 and December 31, 2020 (1)(2) | 575 | 575 | ||||||
Additional paid-in capital | 0 | 24,425 | ||||||
Accumulated deficit | (5,246,914 | ) | (17,570 | ) | ||||
Total shareholders’ equity (deficit) | (5,246,263 | ) | 7,430 | |||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) | $ | 233,041,168 | $ | 134,180 | ||||
(1) | This number included up to 750,000 Class B ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters. On March 11, 2021, the underwriters exercised the over-allotment option, in full; thus, these shares are 0 longer subject to forfeiture (See Note 4) |
(2) | On January 29, 2021, the Company effected a share dividend of 3,375,000 Class B ordinary shares, and on February 3, 2021, the Sponsor surrendered 500,000 Class B ordinary shares for no consideration. The share dividend and share surrender resulted in an aggregate of 5,750,000 Class B ordinary shares outstanding. All shares and associated amounts have been retroactively restated to reflect the share capitalization. (See Note 4) |
For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2021 | |||||||
General and administrative expenses | $ | 239,027 | $ | 689,522 | ||||
General and administrative expenses - related party | 30,000 | 70,000 | ||||||
Loss from operations | (269,027 | ) | (759,522 | ) | ||||
Other income | ||||||||
Income from investments held in Trust Account | 3,533 | 7,797 | ||||||
Net loss | $ | (265,494 | ) | $ | (751,725 | ) | ||
Basic and diluted weighted average shares outstanding of Class A ordinary shares | 23,760,000 | 17,754,725 | ||||||
Basic and diluted net loss per ordinary share, Class A ordinary shares | $ | (0.01 | ) | $ | (0.03 | ) | ||
Basic and diluted weighted average shares outstanding of Class B ordinary shares | 5,750,000 | 5,560,440 | ||||||
Basic and diluted net loss per ordinary share, Class B ordinary shares | $ | (0.01 | ) | $ | (0.03 | ) | ||
General and administrative expenses | $ | 191,739 | ||
General and administrative expenses - related party | 13,844 | |||
Loss from operations | (205,583 | ) | ||
Income from investments held in Trust Account | 768 | |||
Net loss | $ | (204,815 | ) | |
Basic and diluted weighted average shares outstanding of Class A ordinary shares subject to possible redemption | 5,366,667 | |||
Basic and diluted net loss per ordinary share, Class A ordinary shares subject to possible redemption | $ | (0.02 | ) | |
Basic and diluted weighted average shares outstanding of non-redeemable ordinary shares | 5,352,333 | |||
Basic and diluted net loss per ordinary share, non-redeemable ordinary shares | $ | (0.02 | ) | |
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity (Deficit) | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - December 31, 2020 | 0 | $ | 0 | 5,750,000 | $ | 575 | $ | 24,425 | $ | (17,570 | ) | $ | 7,430 | |||||||||||||||
Sale of private placement shares to Sponsor | 760,000 | 76 | — | — | 7,599,924 | — | 7,600,000 | |||||||||||||||||||||
Accretion of Class A ordinary shares subject to redemption | 0 | 0 | — | — | (7,624,349 | ) | (5,024,529 ) | (12,648,878 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (204,815 | ) | (204,815 | ) | |||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 760,000 | 76 | 5,750,000 | 575 | 0 | (5,246,914 | ) | (5,246,263 | ) | |||||||||||||||||||
Net loss | — | — | — | — | — | (281,417 | ) | (281,417 | ) | |||||||||||||||||||
Balance - June 30, 2021 (unaudited) | 760,000 | $ | 76 | 5,750,000 | $ | 575 | $ | — | $ | (5,528,331 | ) | $ | (5,527,680 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (265,494 | ) | (265,494 | ) | |||||||||||||||||||
Balance - September 30, 2021 (unaudited) | 760,000 | $ | 76 | 5,750,000 | $ | 575 | $ | — | $ | (5,793,825 | ) | $ | (5,793,174 | ) | ||||||||||||||
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity (Deficit) | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - December 31, 2020 | 0 | $ | 0 | 5,750,000 | $ | 575 | $ | 24,425 | $ | (17,570 | ) | $ | 7,430 | |||||||||||||||
Sale of private placement shares to Sponsor in private placement, net of offering costs | 760,000 | 76 | — | — | 7,589,370 | — | 7,589,446 | |||||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption | 0 | 0 | — | — | (7,613,795 | ) | (5,024,529 | ) | (12,638,324 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (204,815 | ) | (204,815 | ) | |||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 760,000 | $ | 76 | 5,750,000 | $ | 575 | $ | 0 | $ | (5,246,914 | ) | $ | (5,246,263 | ) | ||||||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (751,725 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Income from investments held in Trust Account | (7,797 | ) | ||
General and administrative expenses paid by related party under note payable | 45,840 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (1,020,276 | ) | ||
Accounts payable | 27,715 | |||
Accrued expenses | 94,344 | |||
Due to related party | 172,821 | |||
Net cash used in operating activities | (1,439,078 | ) | ||
Cash Flows from Investing Activities: | ||||
Cash deposited in Trust Account | (230,000,000 | ) | ||
Net cash used in investing activities | (230,000,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Repayment of note payable to related party | (364,934 | ) | ||
Proceeds received from initial public offering, gross | 230,000,000 | |||
Proceeds received from private placement | 7,600,000 | |||
Offering costs paid | (4,157,250 | ) | ||
Net cash provided by financing activities | 233,077,816 | |||
Net increase in cash | 1,638,738 | |||
Cash - beginning of the period | 0 | |||
Cash - end of the period | $ | 1,638,738 | ||
Supplemental disclosure of noncash investing and financing activities: | ||||
Offering costs included in accounts payable | $ | 7,190 | ||
Offering costs included in accrued expenses | $ | 83,444 | ||
Offering costs paid by related party under note payable | $ | 272,744 | ||
Offering costs included in due to related party | $ | 51,500 | ||
Reversal of offering costs included in accrued expenses in prior year | $ | 100,000 | ||
Prepaid expenses paid by related party through note payable | $ | 19,600 | ||
Outstanding accounts payable balance paid by related party under note payable | $ | 9,000 | ||
Deferred underwriting commissions | $ | 8,050,000 |
Cash Flows from Operating Activities: | ||||
Net loss | $ | (204,815 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Income from investments held in Trust Account | (768 | ) | ||
General and administrative expenses paid by related party under note payable | 45,840 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (1,372,552 | ) | ||
Due from related party | (84,420 | ) | ||
Accounts payable | 5,115 | |||
Accrued expenses | 76,338 | |||
Due to related party | 13,844 | |||
Net cash used in operating activities | (1,521,418 | ) | ||
Cash Flows from Investing Activities: | ||||
Cash deposited in Trust Account | (230,000,000 | ) | ||
Net cash used in investing activities | (230,000,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Repayment of note payable to related party | (364,934 | ) | ||
Proceeds received from initial public offering, gross | 230,000,000 | |||
Proceeds received from private placement | 7,600,000 | |||
Offering costs paid | (4,617,250 | ) | ||
Net cash provided by financing activities | 232,617,816 | |||
Net increase in cash | 1,096,398 | |||
Cash - beginning of the period | 0 | |||
Cash - end of the period | $ | 1,096,398 | ||
Supplemental disclosure of noncash investing and financing activities: | ||||
Offering costs included in accounts payable | $ | 58,690 | ||
Offering costs included in accrued expenses | $ | 83,444 | ||
Offering costs paid by related party under note payable | $ | 272,744 | ||
Reversal of offering costs included in accrued expenses in prior year | $ | 100,000 | ||
Prepaid expenses paid by related party through note payable | $ | 19,600 | ||
Outstanding accounts payable balance paid by related party under note payable | $ | 9,000 | ||
Deferred underwriting commissions | $ | 8,050,000 | ||
Underwriters’ reimbursements in connection with the offering in accounts receivable | $ | 460,000 |
For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2021 | |||||||||||||||
Class A shares | Class B shares | Class A shares | Class B shares | |||||||||||||
Basic and diluted net loss per ordinary share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | $ | (213,763 | ) | $ | (51,731 | ) | $ | (572,446 | ) | $ | (179,279 | ) | ||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average ordinary share outstanding | 23,760,000 | 5,750,000 | 17,754,725 | 5,560,440 | ||||||||||||
Basic and diluted net loss per ordinary share | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.03 | ) | ||||
For the Three Months Ended March 31, 2021 | ||||||||
Class A ordinary shares subject to possible redemption | Non-redeemable ordinary shares | |||||||
Basic and diluted net loss per ordinary share: | ||||||||
Numerator: | ||||||||
Allocation of net loss | $ | (102,544 | ) | $ | (102,271 | ) | ||
Denominator: | ||||||||
Basic and diluted weighted average ordinary share outstanding | 5,366,667 | 5,352,333 | ||||||
Basic and diluted net loss per ordinary share | $ | (0.02 | ) | $ | (0.02 | ) | ||
As of September 30, 2021 | ||||||||
Gross proceeds | $ | 230,000,000 | $ | 230,000,000 | ||||
Less: | ||||||||
Class A ordinary shares issuance costs | (12,648,878 | ) | (12,638,324 | ) | ||||
Plus: | ||||||||
Accretion of carrying value to redemption value | 12,648,878 | 12,638,324 | ||||||
Class A ordinary shares subject to possible redemption | $ | 230,000,000 | $ | 230,000,000 | ||||
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||||||||
Investments held in Trust Account | $ | 230,007,797 | 0 | 0 | $ | 230,000,768 | 0 | 0 |
As of March 31, 2021 | As Previously Reported | Adjustment | As Restated | |||||||||
Total assets | $ | 233,041,168 | — | $ | 233,041,168 | |||||||
Total liabilities | $ | 8,287,431 | — | $ | 8,287,431 | |||||||
Class A ordinary shares subject to possible redemption | 219,753,730 | 10,246,270 | 230,000,000 | |||||||||
Preference shares | — | — | — | |||||||||
Class A ordinary shares | 178 | (102 | ) | 76 | ||||||||
Class B ordinary shares | 575 | — | 575 | |||||||||
Additional paid-in capital | 5,221,639 | (5,221,639 | ) | — | ||||||||
Accumulated deficit | (222,385 | ) | (5,024,529 | ) | (5,246,914 | ) | ||||||
Total shareholders’ equity (deficit) | $ | 5,000,007 | $ | (10,246,270 | ) | $ | (5,246,263 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) | $ | 233,041,168 | $ | — | $ | 233,041,168 |
Statement of Shareholders’ Equity (Deficit) as of March 31, 2021 (unaudited) | As Previously Reported | Adjustment | As Restated | |||||||||
Sale of Class A ordinary shares in initial public offering, gross | $ | 230,000,000 | $ | (230,000,000 | ) | $ | — | |||||
Offering costs | $ | (12,648,878 | ) | $ | 12,648,878 | $ | — | |||||
Sale of private placement shares to Sponsor in private placement | $ | 7,600,000 | $ | (7,600,000 | ) | $ | — | |||||
Shares subject to possible redemption | $ | (219,753,730 | ) | $ | 219,753,730 | $ | — | |||||
Sale of private placement shares to Sponsor in private placement, net of offering costs | $ | — | $ | 7,589,446 | $ | 7,589,446 | ||||||
Accretion of Class A ordinary shares subject to redemption | $ | — | $ | (12,638,324 | ) | $ | (12,638,324 | ) | ||||
Total shareholders’ equity (deficit) | $ | 5,000,007 | $ | (10,246,270 | ) | $ | (5,246,263 | ) |
Form 10-Q: Three Months Ended March 31, 2021 | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Supplemental Disclosure of Noncash Financing Activities: | ||||||||||||
Initial value of Class A ordinary shares subject to possible redemption | $ | 219,445,280 | $ | (219,445,280 | ) | $ | — | |||||
Change in value of Class A ordinary shares subject to possible redemption | $ | 308,450 | $ | (308,450 | ) | $ | — |
EPS for Class A ordinary shares | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Form 10-Q (March 31, 2021) — three months ended March 31, 2021 | ||||||||||||
Weighted average shares outstanding | 21,945,997 | (16,579,330 | ) | 5,366,667 | ||||||||
Basic and diluted earnings per ordinary share | $ | — | $ | (0.02 | ) | $ | (0.02 | ) |
EPS for non-redeemable ordinary shares | ||||||||||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Form 10-Q (March 31, 2021) — three months ended March 31, 2021 | ||||||||||||
Weighted average shares outstanding | 5,598,267 | (245,934 | ) | 5,352,333 | ||||||||
Basic and diluted earnings per ordinary share | $ | (0.04 | ) | $ | 0.02 | $ | (0.02 | ) |
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 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. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
Dated: bruary 10, 22 | SVF INVESTMENT CORP. 2 | |||||
By: | /s/ Munish Varma | |||||
Name: | Munish Varma | |||||
Title: | Chief Executive Officer |