☒ | 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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Item 1. | Condensed Financial Statements. |
September 30, 2021 | December 31, 2020 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 314,746 | $ | — | ||||
Prepaid expenses and other current assets | 530,541 | — | ||||||
Total Current Assets | 845,287 | — | ||||||
Deferred offering costs | — | 322,376 | ||||||
Investments held in Trust Account | 287,546,397 | — | ||||||
TOTAL ASSETS | $ | 288,391,684 | $ | 322,376 | ||||
LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 1,641,306 | $ | — | ||||
Accrued offering costs | — | 178,884 | ||||||
Promissory note – related party | — | 123,492 | ||||||
Total Current Liabilities | 1,641,306 | 302,376 | ||||||
Deferred underwriting fee payable | 10,062,500 | — | ||||||
Warrant liabilities | 9,292,500 | — | ||||||
Total Liabilities | 20,996,306 | 302,376 | ||||||
Commitments and Contingencies | 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 | — | ||||||
Shareholders’ (Deficit) Equity | ||||||||
Preference shares, $ 0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 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 | ||||||
Additional paid-in capital | — | 24,281 | ||||||
Accumulated deficit | (20,105,341 | ) | (5,000 | ) | ||||
Total Shareholders’ (Deficit) Equity | (20,104,622 | ) | 20,000 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ (DEFICIT) EQUITY | $ | 288,391,684 | $ | 322,376 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 31,353 | $ | 156,181 | ||||
Prepaid expenses and other current assets | 527,190 | 617,565 | ||||||
Total Current Assets | 558,543 | 773,746 | ||||||
Deferred offering costs | 0— | 0— | ||||||
Investments held in Trust Account | 287,556,052 | 287,552,035 | ||||||
TOTAL ASSETS | $ | 288,114,595 | $ | 288,325,781 | ||||
LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION, AND SHAREHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 2,972,928 | $ | 2,918,641 | ||||
Advance from related parties | 11,032 | 11,032 | ||||||
Promissory note – related party | 350,000 | 200,000 | ||||||
Total Current Liabilities | 3,333,960 | 3,129,673 | ||||||
Deferred underwriting fee payable | 10,062,500 | 10,062,500 | ||||||
Warrant liabilities | 3,835,000 | 7,522,500 | ||||||
Total Liabilities | 17,231,460 | 20,714,673 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption 28,750,000 shares issued and | 287,500,000 | 287,500,000 | ||||||
Shareholders’ Deficit | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 300,000,000 shares authorized; 0ne issued or outstanding (excluding 28,750,000 shares subject to redemption) at March 31, 2022 and December 31, 2021 | 0— | 0— | ||||||
Class B ordinary shares, $0.0001 par value; 30,000,000 shares authorized; 7,187,500 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 719 | 719 | ||||||
Additional paid-in capital | — | 0— | ||||||
Accumulated deficit | (16,617,584 | ) | (19,889,611 | ) | ||||
Total Shareholders’ Deficit | (16,616,865 | ) | (19,888,892 | ) | ||||
TOTAL LIABILITIES, CLASS A ORDINARY SHARES SUBJECT TO POSSIBLE REDEMPTION, AND SHAREHOLDERS’ DEFICIT | $ | 288,114,595 | $ | 288,325,781 | ||||
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 | ||||||
Loss from operations | (439,597 | ) | (2,205,473 | ) | (5,000 | ) | ||||||
Other income (expense): | ||||||||||||
Income earned on investments held in Trust Account | 3,700 | 46,397 | — | |||||||||
Interest expense | (3,588 | ) | (14,008 | ) | — | |||||||
Transaction costs allocated to warrant liabilities | — | (791,150 | ) | — | ||||||||
Change in fair value of warrant liabilities | 2,655,000 | 11,652,500 | — | |||||||||
Total other income, net | 2,655,112 | 10,893,739 | — | |||||||||
Net income (loss) | $ | 2,215,515 | $ | 8,688,266 | $ | (5,000 | ) | |||||
Weighted average shares outstanding, Class A ordinary shares | 28,750,000 | 26,538,462 | — | |||||||||
Basic and diluted net income 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 | |||||||||
Basic net income (loss) per share, Class B ordinary shares | $ | 0.06 | $ | 0.26 | $ | (0.00 | ) | |||||
For the Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
General and administrative expenses | $ | 419,490 | $ | 1,521,768 | ||||
Loss from operations | (419,490 | ) | (1,521,768 | ) | ||||
Other income: | ||||||||
Income earned on investments held in Trust Account | 4,017 | 39,082 | ||||||
Interest expense | — | (4,776 | ) | |||||
Transaction costs allocated to warrant liabilities | — | (791,150 | ) | |||||
Change in fair value of warrant liabilities | 3,687,500 | 12,095,000 | ||||||
Total other income, net | 3,691,517 | 11,338,156 | ||||||
Net income | $ | 3,272,027 | $ | 9,816,388 | ||||
Weighted average shares outstanding, Class A ordinary shares | 28,750,000 | 22,041,667 | ||||||
Basic net income per share, Class A ordinary shares | $ | 0.09 | $ | 0.34 | ||||
Basic weighted average shares outstanding, Class B ordinary shares | 7,187,500 | 6,968,750 | ||||||
Basic net income per share, Class B ordinary shares | $ | 0.09 | $ | 0.34 | ||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — January 1, 2021 | 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 | |||||||||||||||||||||
Accretion for Class A ordinary shares to redemption amount | — | — | — | — | (437,614 | ) | (28,788,607 | ) | (29,226,221 | ) | ||||||||||||||||||
Net income | — | — | — | — | — | 9,816,388 | 9,816,388 | |||||||||||||||||||||
Balance – March 31, 2021 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (18,977,219 | ) | $ | (18,976,500 | ) | ||||||||||||||
Net loss | — | — | — | — | — | (3,343,637 | ) | (3,343,646 | ) | |||||||||||||||||||
Balance – June 30, 2021 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (22,320,856 | ) | $ | (22,320,137 | ) | ||||||||||||||
Net income | — | — | — | — | — | 2,215,515 | 2,215,515 | |||||||||||||||||||||
Balance – September 30, 2021 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (20,105,341 | ) | $ | (20,104,622 | ) | ||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in | Accumulated | Total Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance — January 1, 2022 | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (19,889,611 | ) | $ | (19,888,892 | ) | ||||||||||||||
Net income | — | — | — | — | — | 3,272,027 | 3,272,027 | |||||||||||||||||||||
Balance – March 31, 2022 (unaudited) | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (16,617,584 | ) | $ | (16,616,865 | ) | ||||||||||||||
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 | |||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in | Accumulated | Total Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity (Deficit) | ||||||||||||||||||||||
Balance — January 1, 2021 | 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 | |||||||||||||||||||||
Accretion for Class A ordinary shares to redemption amount | — | — | — | — | (437,614 | ) | (28,788,607 | ) | (29,226,221 | ) | ||||||||||||||||||
Net income | — | — | — | — | — | 9,816,388 | 9,816,388 | |||||||||||||||||||||
Balance – March 31, 2021 (unaudited) | 0 | $ | 0 | 7,187,500 | $ | 719 | $ | 0 | $ | (18,977,219 | ) | $ | (18,976,500 | ) | ||||||||||||||
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 | ||||
For the Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 3,272,027 | $ | 9,816,388 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Income earned on investments held in Trust Account | (4,017 | ) | (39,082 | ) | ||||
Change in fair value of warrant liabilities | (3,687,500 | ) | (12,095,000 | ) | ||||
Transaction costs allocated to warrant liabilities | — | 791,150 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses and other current assets | 90,375 | (365,021 | ) | |||||
Accrued expenses | 54,287 | 1,405,284 | ||||||
Net cash used in operating activities | (274,828 | ) | (486,281 | ) | ||||
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 | ||||||
Proceeds from advances from related party | — | — | ||||||
Proceeds from promissory note – related party | 150,000 | — | ||||||
Repayment of promissory note – related party | — | (123,492 | ) | |||||
Payment of offering costs | — | (453,046 | ) | |||||
Net cash provided by financing activities | 150,000 | 288,923,462 | ||||||
Net Change in Cash | (124,828 | ) | 937,181 | |||||
Cash – Beginning | 156,181 | — | ||||||
Cash – Ending | $ | 31,353 | $ | 937,181 | ||||
Non-cash investing and financing activities: | ||||||||
Deferred underwriting fee payable | $ | — | $ | 10,062,500 | ||||
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 | ) |
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 | ||||||||||||||||||||||
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 | ) | |||||||||||
Denominator: | ||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 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 | ) |
For the Three Months Ended March 31, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income per ordinary share | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income, adjusted for | $ | 2,617,622 | $ | 654,405 | $ | 7,458,340 | $ | 2,358,048 | ||||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average shares outstanding | 28,750,000 | 7,187,500 | 22,041,667 | 6,968,750 | ||||||||||||
Basic and diluted net income per ordinary share | $ | 0.09 | $ | 0.09 | $ | 0.34 | $ | 0.34 |
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 |
Level | Fair Value | |||||||||
Assets: | ||||||||||
September 30, 2021 | Investment held in Trust Account - Money Market Fund | 1 | $ | 287,546,397 | ||||||
Liabilities: | ||||||||||
September 30, 2021 | Warrant Liability – Public Warrants | 1 | 6,037,500 | |||||||
September 30, 2021 | Warrant Liability – Private Placement Warrants | 2 | 3,255,000 |
March 31, 2022 | Level | Fair Value | ||||||
Assets: | ||||||||
Investment held in Trust Account –Money Market Fund | 1 | $ | 287,556,052 | |||||
Liabilities: | ||||||||
Warrant Liability – Public Warrants | 1 | 2,491,667 | ||||||
Warrant Liability – Private Placement Warrants | 2 | 1,343,333 |
December 31, 2021 | ||||||||
Assets: | ||||||||
Investment held in Trust Account –Money Market Fund | 1 | $ | 287,552,035 | |||||
Liabilities: | ||||||||
Warrant Liability – Public Warrants | 1 | 4,887,500 | ||||||
Warrant Liability – Private Placement Warrants | 2 | 2,635,000 |
Item 2. |
Item 3. |
Item 4. |
Item 1. |
Item 1A. | Risk Factors |
Item 2. |
Item 3. |
Item 4. |
Item 5. |
Item 6. |
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 Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1* | 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 | |
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 | |
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||
Inline XBRL Taxonomy Extension Schema Document | ||
Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||
Inline XBRL Taxonomy Extension Definition Linkbase Document | ||
Inline XBRL Taxonomy Extension | ||
Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||
104 | Cover Page Interactive Data File |
* | Filed herewith. |
TZP STRATEGIES ACQUISITION CORP. | ||||||
Date: | May 16, 2022 | By: | /s/ Samuel Katz | |||
Name: | Samuel Katz | |||||
Title: | Chief Executive Officer and Director | |||||
(Principal Executive Officer) | ||||||
Date: | May 16, 2022 | By: | /s/ Sheera Michael | |||
Name: | Sheera Michael | |||||
Title: | (Principal Financial Officer and | |||||
Principal Accounting Officer) |