☒ | 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 | 98-1555127 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbols | Name of each exchange on which registered | ||
Units, each consisting of one Class A ordinary share, $0.0001 par value, and one-third of one redeemable warrant | TZPSU | The Nasdaq Capital Market | ||
Class A ordinary shares included as part of the units | TZPS | The Nasdaq Capital Market | ||
Warrants included as part of the units, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | TZPSW | The Nasdaq Capital Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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September 30, 2021 | December 31, 2020 | September 30, 2021 | December 31, 2020 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash | $ | 314,746 | $ | — | $ | 314,746 | $ | — | ||||||||
Prepaid expenses and other current assets | 530,541 | — | 530,541 | — | ||||||||||||
Total Current Assets | 845,287 | — | 845,287 | — | ||||||||||||
Deferred offering costs | — | 322,376 | — | 322,376 | ||||||||||||
Investments held in Trust Account | 287,546,397 | — | 287,546,397 | — | ||||||||||||
TOTAL ASSETS | $ | 288,391,684 | $ | 322,376 | $ | 288,391,684 | $ | 322,376 | ||||||||
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accrued expenses | $ | 1,641,306 | $ | — | $ | 1,641,306 | $ | — | ||||||||
Accrued offering costs | — | 178,884 | — | 178,884 | ||||||||||||
Promissory note – related party | — | 123,492 | — | 123,492 | ||||||||||||
Total Current Liabilities | 1,641,306 | 302,376 | 1,641,306 | 302,376 | ||||||||||||
Deferred underwriting fee payable | 10,062,500 | — | 10,062,500 | — | ||||||||||||
Warrant liabilities | 9,292,500 | — | 9,292,500 | — | ||||||||||||
Total Liabilities | 20,996,306 | 302,376 | 20,996,306 | 302,376 | ||||||||||||
Commitments and Contingencies | 0 | 0 | 0 | 0 | ||||||||||||
Class A ordinary shares subject to possible redemption 28,750,000 and 0shares at $10.00 per share redemption value at September 30, 2021 and December 31, 2020, respectively | 287,500,000 | — | ||||||||||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 300,000,000 shares authorized; 28,750,000 and 0shares at $10.00per share redemption value, issued and outstanding, at September 30, 2021 and December 31, 2020, respectively | 287,500,000 | — | ||||||||||||||
Shareholders’ (Deficit) Equity | ||||||||||||||||
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; 300,000,000 shares authorized | 0 | — | ||||||||||||||
Class B ordinary shares, $0.0001 par value; 30,000,000 shares authorized; 7,187,500 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 719 | 719 | 719 | 719 | ||||||||||||
Additional paid-in capital | — | 24,281 | — | 24,281 | ||||||||||||
Accumulated deficit | (20,105,341 | ) | (5,000 | ) | (20,105,341 | ) | (5,000 | ) | ||||||||
Total Shareholders’ (Deficit) Equity | (20,104,622 | ) | 20,000 | (20,104,622 | ) | 20,000 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | $ | 288,391,684 | $ | 322,376 | $ | 288,391,684 | $ | 322,376 | ||||||||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period from August 31, 2020 (Inception) through September 30, 2020 | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period from August 31, 2020 (Inception) through September 30, 2020 | |||||||||||||||||||
General and administrative expenses | $ | 439,597 | $ | 2,205,473 | $ | 5,000 | $ | 439,597 | $ | 2,205,473 | $ | 5,000 | ||||||||||||
Loss from operations | (439,597 | ) | (2,205,473 | ) | (5,000 | ) | (439,597 | ) | (2,205,473 | ) | (5,000 | ) | ||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Income earned on investments held in Trust Account | 3,700 | 46,397 | — | 3,700 | 46,397 | — | ||||||||||||||||||
Interest expense | (3,588 | ) | (14,008 | ) | — | (3,588 | ) | (14,008 | ) | — | ||||||||||||||
Transaction costs allocated to warrant liabilities | — | (791,150 | ) | — | — | (791,150 | ) | — | ||||||||||||||||
Change in fair value of warrant liabilities | 2,655,000 | 11,652,500 | — | 2,655,000 | 11,652,500 | — | ||||||||||||||||||
Total other income, net | 2,655,112 | 10,893,739 | — | 2,655,112 | 10,893,739 | — | ||||||||||||||||||
Net income (loss) | $ | 2,215,515 | $ | 8,688,266 | $ | (5,000 | ) | $ | 2,215,515 | $ | 8,688,266 | $ | (5,000 | ) | ||||||||||
Weighted average shares outstanding, Class A ordinary shares | 28,750,000 | 26,538,462 | — | 28,750,000 | 26,538,462 | — | ||||||||||||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | 0.06 | $ | 0.26 | $ | 0 | ||||||||||||||||||
Basic and diluted net income (loss) per share, Class A ordinary shares | $ | 0.06 | $ | 0.26 | $ | 0 | ||||||||||||||||||
Basic weighted average shares outstanding, Class B ordinary shares | 7,187,500 | 7,111,951 | 6,250,000 | 7,187,500 | 7,111,951 | 6,250,000 | ||||||||||||||||||
Basic net income (loss) per share, Class B ordinary shares | $ | 0.06 | $ | 0.26 | $ | (0.00 | ) | |||||||||||||||||
Basic and diluted net income (loss) per share, Class B ordinary shares | $ | 0.06 | $ | 0.26 | $ | (0.00 | ) | |||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ (Deficit) Equity | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ (Deficit) Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance — January 1, 2021 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 24,281 | $ | (5,000 | ) | $ | 20,000 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 24,281 | $ | (5,000 | ) | $ | 20,000 | ||||||||||||||||||||||||||||||
Cash paid in excess of fair value of Private Placement warrants | — | — | — | — | 413,333 | — | 413,333 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cash paid in excess of fair value of Private Placem e nt warrants | — | — | — | — | 413,333 | — | 413,333 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accretion for Class A ordinary shares to redemption amount | — | — | — | — | (437,614 | ) | (28,788,607 | ) | (29,226,221 | ) | — | — | — | — | (437,614 | ) | (28,788,607 | ) | (29,226,221 | ) | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 9,816,388 | 9,816,388 | — | — | — | — | — | 9,816,388 | 9,816,388 | ||||||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2021 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (18,977,219 | ) | $ | (18,976,500 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2021 (as restated) | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (18,977,219 | ) | $ | (18,976,500 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (3,343,637 | ) | (3,343,646 | ) | — | — | — | — | — | (3,343,637 | ) | (3,343,646 | ) | ||||||||||||||||||||||||||||||||||||||
Balance – June 30, 2021 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (22,320,856 | ) | $ | (22,320,137 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance – June 30, 2021 (as restated) | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (22,320,856 | ) | $ | (22,320,137 | ) | ||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 2,215,515 | 2,215,515 | — | — | — | — | — | 2,215,515 | 2,215,515 | ||||||||||||||||||||||||||||||||||||||||||
Balance – September 30, 2021 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (20,105,341 | ) | $ | (20,104,622 | ) | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (20,105,341 | ) | $ | (20,104,622 | ) | ||||||||||||||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — August 31, 2020 (Inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B ordinary shares | — | — | 7,187,500 | 719 | 24,281 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (5,000 | ) | (5,000 | ) | |||||||||||||||||||
Balance – September 30, 2020 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 24,281 | $ | (5,000 | ) | $ | 20,000 | |||||||||||||||
Nine Months Ended September 30, 2021 | For the Period from August 31, 2020 (Inception) through September 30, 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 8,688,266 | $ | (5,000 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Payment of formation costs through issuance of Class B ordinary shares | — | 5,000 | ||||||
Income earned on investments held in Trust Account | (46,397 | ) | — | |||||
Change in fair value of warrant liabilities | (11,652,500 | ) | — | |||||
Transaction costs related to warrant liabilities | 791,150 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses and other current assets | (530,541 | ) | — | |||||
Accrued expenses | 1,641,306 | — | ||||||
Net cash used in operating activities | (1,108,716 | ) | — | |||||
Cash Flows from Investing Activities: | ||||||||
Investment of cash into Trust Account | (287,500,000 | ) | — | |||||
Net cash used in investing activities | (287,500,000 | ) | — | |||||
Cash Flows from Financing Activities: | ||||||||
Proceeds from sale of Units, net of underwriting discounts paid | 281,750,000 | — | ||||||
Proceeds from sale of Private Placement Warrants | 7,750,000 | — | ||||||
Repayment of promissory note - related party | (123,492 | ) | — | |||||
Payment of offering costs | (453,046 | ) | — | |||||
Net cash provided by financing activities | 288,923,462 | — | ||||||
Net Change in Cash | 314,746 | — | ||||||
Cash – Beginning | 0 | — | ||||||
Cash – Ending | $ | 314,746 | $ | — | ||||
Non-cash investing and financing activities: | ||||||||
Deferred underwriting fee payable | $ | 10,062,500 | $ | — | ||||
Deferred offering costs included in accrued offering costs | $ | — | $ | 50,000 | ||||
Deferred offering costs paid through promissory note - related party | $ | — | $ | 35,153 | ||||
Deferred offering costs paid by Sponsor in exchange for the issuance of Class B ordinary shares | $ | — | $ | 20,000 | ||||
Balance Sheet as of January 22, 2021 (audited) | As Previously Reported | Adjustment | As Revised | |||||||||
Class A ordinary shares subject to possible redemption | $ | 252,915,960 | $ | 34,584,040 | $ | 287,500,000 | ||||||
Class A ordinary shares | $ | 346 | $ | (346 | ) | $ | — | |||||
Additional paid-in capital | $ | 5,794,714 | $ | (5,794,714 | ) | $ | — | |||||
Accumulated deficit | $ | (795,777 | ) | $ | (28,788,980 | ) | $ | (29,584,757 | ) | |||
Total Shareholders’ (Deficit) Equity | $ | 5,000,002 | $ | (34,584,040 | ) | $ | (29,584,038 | ) |
As Previously Reported | Adjustment | As Restated | ||||||||||
Condensed Balance Sheet as of March 31, 2021 (Unaudited) | ||||||||||||
Class A ordinary shares subject to possible redemption | $ | 263,523,499 | $ | 23,976,501 | $ | 287,500,000 | ||||||
Class A ordinary shares | $ | 240 | $ | (240 | ) | $ | — | |||||
Retained earnings (accumulated deficit) | $ | 4,999,051 | $ | (23,976,270 | ) | $ | (18,977,219 | ) | ||||
Total Shareholders’ Equity (Deficit) | $ | 5,000,010 | $ | (23,976,510 | ) | $ | (18,976,500 | ) | ||||
Condensed Balance Sheet as of June 30, 2021 (Unaudited) | ||||||||||||
Class A ordinary shares subject to possible redemption | $ | 260,179,860 | $ | 27,320,140 | $ | 287,500,000 | ||||||
Class A ordinary shares | $ | 273 | $ | (273 | ) | $ | — | |||||
Retained earnings (accumulated deficit) | $ | 4,999,011 | $ | (27,319,867 | ) | $ | (22,320,856 | ) | ||||
Total Shareholders’ Equity (Deficit) | $ | 5,000,003 | $ | (27,320,140 | ) | $ | (22,320,137 | ) | ||||
Condensed Statement of Cash Flows for the Three Months Ended March 31, 2021 (Unaudited) | ||||||||||||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 252,915,960 | $ | (252,915,960 | ) | $ | — | |||||
Change in value of Class A ordinary shares subject to possible redemption | $ | 10,607,530 | $ | (10,607,530 | ) | $ | — | |||||
Condensed Statement of Cash Flows for the Six Months Ended June 30, 2021 (Unaudited) | ||||||||||||
Initial classification of Class A ordinary shares subject to possible redemption | $ | 252,915,960 | $ | (252,915,960 | ) | $ | — | |||||
Change in value of Class A ordinary shares subject to possible redemption | $ | 7,263,900 | $ | (7,263,900 | ) | $ | — | |||||
As Previously Reported | Adjustment | As Restated | ||||||||||
Condensed Statement of Operations for the Three Months Ended March 31, 2021 (Unaudited) | ||||||||||||
Weighted average shares outstanding, Class A ordinary shares | 28,750,000 | (6,708,333 | ) | 22,041,667 | ||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | — | $ | 0.34 | $ | 0.34 | ||||||
Weighted average shares outstanding, Class B ordinary shares | 6,966,292 | (2,458 | ) | 6,968,750 | ||||||||
Basic and diluted net income per share, Class B ordinary shares | $ | 1.40 | $ | (1.06 | ) | $ | 0.34 | |||||
Condensed Statement of Operations for the Three Months Ended June 30, 2021 (Unaudited) | ||||||||||||
Weighted average shares outstanding, Class A ordinary shares | 28,750,000 | — | 28,750,000 | |||||||||
Basic and diluted net loss per share, Class A ordinary shares | $ | — | $ | (0.09 | ) | $ | (0.09 | ) | ||||
Weighted average shares outstanding, Class B ordinary shares | 7,187,500 | — | 7,187,500 | |||||||||
Basic net loss per share, Class B ordinary shares | $ | (0.47 | ) | $ | 0.38 | $ | (0.09 | ) | ||||
Diluted weighted average shares outstanding, Class B ordinary shares | 7,187,500 | (7,187,500 | ) | — | ||||||||
Diluted net loss per share, Class B ordinary shares | (0.47 | ) | 0.47 | — | ||||||||
Condensed Statement of Operations for the Six Months Ended June 30, 2021 (Unaudited) | ||||||||||||
Weighted average shares outstanding, Class A ordinary shares | 28,750,000 | (3,335,635 | ) | 25,414,365 | ||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | — | $ | 0.20 | $ | 0.20 | ||||||
Basic weighted average shares outstanding, Class B ordinary shares | 7,073,550 | (5,179 | ) | 7,078,729 | ||||||||
Basic net income per share, Class B ordinary shares | $ | 0.91 | $ | (0.71 | ) | $ | 0.20 | |||||
Diluted weighted average shares outstanding, Class B ordinary shares | 7,187,500 | — | 7,187,500 | |||||||||
Diluted net income per share, Class B ordinary shares | 0.89 | (0.69 | ) | 0.20 |
Gross proceeds | $ | 287,500,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | (13,608,333 | ) | ||
Class A ordinary shares issuance costs | (15,617,888 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | 29,226,221 | |||
Class A ordinary shares subject to possible redemption | $ | 287,500,000 | ||
Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period From August 31, 2020 (Inception) Through September 30, 2020 | Three Months Ended September 30, 2021 | Nine Months Ended September 30, 2021 | For the Period From August 31, 2020 (Inception) Through September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||||||||||||
Basic and diluted net income (loss) per ordinary share | ||||||||||||||||||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of net income (loss), as adjusted | $ | 1,772,412 | $ | 443,103 | $ | 6,852,018 | $ | 1,836,248 | $ | 0 | $ | (5,000 | ) | |||||||||||||||||||||||||||||||||||
Allocation of net income (loss) | $ | 1,772,412 | $ | 443,103 | $ | 6,852,018 | $ | 1,836,248 | $ | 0 | $ | (5,000 | ) | |||||||||||||||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 28,750,000 | 7,187,500 | 26,538,462 | 7,111,951 | 0 | 6,250,000 | 28,750,000 | 7,187,500 | 26,538,462 | 7,111,951 | 0 | 6,250,000 | ||||||||||||||||||||||||||||||||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.06 | $ | 0.06 | $ | 0.26 | $ | 0.26 | $ | 0 | $ | (0.00 | ) | $ | 0.06 | $ | 0.06 | $ | 0.26 | $ | 0.26 | $ | 0 | $ | (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. |
Level | Fair Value | Level | Fair Value | |||||||||||||||||
Assets: | ||||||||||||||||||||
September 30, 2021 | Investment held in Trust Account - Money Market Fund | 1 | $ | 287,546,397 | Investment held in Trust Account – Money Market Fund | 1 | $ | 287,546,397 | ||||||||||||
Liabilities: | ||||||||||||||||||||
September 30, 2021 | Warrant Liability – Public Warrants | 1 | 6,037,500 | Warrant Liability – Public Warrants | 1 | 6,037,500 | ||||||||||||||
September 30, 2021 | Warrant Liability – Private Placement Warrants | 2 | 3,255,000 | Warrant Liability – Private Placement Warrants | 2 | 3,255,000 |
* | Filed herewith. |
TZP STRATEGIES ACQUISITION CORP. | ||||||
Date: | By: | /s/ Samuel Katz | ||||
Name: | Samuel Katz | |||||
Title: | Chief Executive Officer and Director | |||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ Sheera Michael | ||||
Name: | Sheera Michael | |||||
Title: | (Principal Financial Officer and | |||||
Principal Accounting Officer) |