☒ | 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 | 86-2967193 | |
(State or other jurisdiction ofincorporation or organization) | (I.R.S. Employer Identification No.) | |
11110 Sunset Hills Road #2278 Reston, VA | 20190 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbols | Name of each exchange on which registered | ||
Units, each consisting of one Class A common stock and one-half of one redeemable warrant | FLAGU | New York Stock Exchange | ||
Class A common stock, par value $0.0001 per share | FLAG | New York Stock Exchange | ||
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share | FLAGW | New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page | ||||||
Contents | ||||||
1 | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 14 | |||||
Item 3. | 17 | |||||
Item 4. | 17 | |||||
18 | ||||||
Item | 18 | |||||
Item | 18 | |||||
Item | 18 | |||||
Item | 18 | |||||
Item | 18 | |||||
Item | 18 | |||||
Item 6. | 18 | |||||
20 |
Item 1. | Unaudited Condensed Financial Statements |
September 30, | ||||
2021 | ||||
ASSETS | ||||
Current assets | ||||
Cash | $ | 1,197,342 | ||
Prepaid expenses | 807,596 | |||
Total Current Assets | 2,004,938 | |||
Marketable securities held in Trust Account | 230,000,423 | |||
TOTAL ASSETS | $ | 232,005,361 | ||
LIABILITIES, REDEEMABLE CLASS A COMMON STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Current liabilities | ||||
Accrued expenses | $ | 38,163 | ||
Accrued offering costs | 9,738 | |||
Total Current Liabilities | 47,901 | |||
Warrant liability | 12,840,000 | |||
Forward purchase units liability | 42,832 | |||
Deferred underwriting fee payable | 8,050,000 | |||
Total Liabilities | 20,980,733 | |||
Commitments | 0 | |||
Class A Common stock $0.0001 par value; 300,000,000 shares authorized; 23,000,000 shares issued and outstanding subject to possible redemption, at redemption value | 230,000,000 | |||
Stockholders’ Equity (Deficit) | ||||
Preferred stock, $0.0001 par value; 1,000,000 authorized; NaN issued and outstanding | 0 | |||
Class B Common stock, $0.0001 par value; 30,000,000 shares authorized; 5,750,000 shares issued and outstanding | 575 | |||
Additional paid-in capital | 0 | |||
Accumulated deficit | (18,975,947 | ) | ||
Total Stockholders’ Equity (Deficit) | (18,975,372 | ) | ||
TOTAL LIABILITIES, REDEEMABLE CLASS A COMMON STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT) | $ | 232,005,361 | ||
March 31, | December 31, | |||||||
2022 | 2021 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 597,522 | $ | 1,062,653 | ||||
Prepaid expenses – current | 434,985 | 420,908 | ||||||
Total Current Assets | 1,032,507 | 1,483,561 | ||||||
Non-current assets | ||||||||
Marketable securities held in Trust Account | 230,023,555 | 230,004,784 | ||||||
Prepaid expenses – non-current | 178,988 | 280,944 | ||||||
Total Non-current Assets | 230,202,543 | 230,285,728 | ||||||
Total Assets | $ | 231,235,050 | $ | 231,769,289 | ||||
LIABILITIES, CLASS A SHARES SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accrued expenses | $ | 345,315 | $ | 347,146 | ||||
Accounts payable | 41,518 | 63,839 | ||||||
Total Current Liabilities | 386,833 | 410,985 | ||||||
Non-Current liabilities | ||||||||
Warrant Liability | 5,374,850 | 7,469,150 | ||||||
Forward purchase unit liability | 643,204 | 521,184 | ||||||
Deferred underwriter fee payable | 8,050,000 | 8,050,000 | ||||||
Total Non-current Liabilities | 14,068,054 | 16,040,334 | ||||||
Total Liabilities | 14,454,887 | 16,451,319 | ||||||
Commitments and Contingencies (Note 8) | 0 | 0 | ||||||
Class A common stock subject to possible redemption, 23,000,000 shares issued and outstanding at redemption value | 230,023,555 | 230,004,784 | ||||||
Stockholders’ Deficit | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0— | 0— | ||||||
Class A common stock, $0.0001 par value, 300,000,000 shares authorized; 0 shares issued and outstanding (excluding 23,000,000 shares subject to possible redemption) | 0— | 0 | ||||||
Class B common stock, $0.0001 par value, 30,000,000 shares authorized; 5,750,000 shares issued and outstanding | 575 | 575 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (13,243,967 | ) | (14,687,389 | ) | ||||
Total Stockholders’ Deficit | (13,243,392 | ) | (14,686,814 | ) | ||||
TOTAL LIABILITIES, CLASS A SHARES SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT | $ | 231,235,050 | $ | 231,769,289 | ||||
For the period from | ||||||||
For the | March 24, 2021 (inception) | |||||||
Three Months Ended | Through | |||||||
September 30, | September 30, | |||||||
2021 | 2021 | |||||||
Operating costs | $ | 1,094,880 | $ | 1,178,183 | ||||
Loss from operations | (1,094,880 | ) | (1,178,183 | ) | ||||
Other income (loss): | ||||||||
Unrealized gain on marketable securities held in Trust Account | 423 | 423 | ||||||
Change in fair value of warrant liability | 283,000 | 283,000 | ||||||
Change in fair value of forward purchase units | (11,832 | ) | (11,832 | ) | ||||
Other income (loss), net | 271,591 | 271,591 | ||||||
Loss before provision for income taxes | (823,289 | ) | (906,592 | ) | ||||
Provision for income taxes | 0 | 0 | ||||||
Net Loss | $ | (823,289 | ) | $ | (906,592 | ) | ||
Weighted average shares outstanding of redeemable Class A common stock | 4,000,000 | 2,300,000 | ||||||
Basic and diluted net income per share, redeemable Class A common stock | $ | 2.89 | $ | 6.14 | ||||
Weighted average shares outstanding of Class B common stock | 5,750,000 | 5,750,000 | ||||||
Basic and diluted net loss per share, nonredeemable Class A and Class B common stock | $ | (2.15 | ) | $ | (2.62 | ) | ||
For the Three Months Ended March 31, 2022 (unaudited) | ||||
Operating costs | $ | 528,858 | ||
Loss from operations | (528,858 | ) | ||
Other income (expense): | ||||
Change in fair value of warrant liability | 2,094,300 | |||
Change in fair value of forward purchase unit liability | (122,020 | ) | ||
Interest income on marketable securities held in Trust Account | 16,505 | |||
Unrealized gain on marketable securities held in Trust Account | 2,266 | |||
Other income, net | 1,991,051 | |||
Net income | $ | 1,462,193 | ||
Weighted average shares outstanding of redeemable Class A common stock | 23,000,000 | |||
Basic and diluted net income per share, redeemable Class A common stock | $ | 0.05 | ||
Weighted average shares outstanding of non-redeemable Class B common stock | 5,750,000 | |||
Basic and diluted net income per share, non-redeemable Class B common stock | $ | 0.05 |
Class A Common stock Subject to Possible Redemption | Class B Common stock | Additional Paid-in | Accumulated | Total Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance – December 31, 2021 (audited) | 23,000,000 | $ | 230,004,784 | 5,750,000 | $ | 575 | $ | 0 | $ | (14,687,389 | ) | $ | (14,686,814 | ) | ||||||||||||||
Remeasurement of Class A common stock to redemption value | — | 18,771 | — | — | — | (18,771 | ) | (18,771 | ) | |||||||||||||||||||
Net income | — | — | — | — | — | 1,462,193 | 1,462,193 | |||||||||||||||||||||
Balance – March 31, 2022 (unaudited) | 23,000,000 | $ | 230,023,555 | 5,750,000 | $ | 575 | $ | — | $ | (13,243,967 | ) | $ | (13,243,392 | ) | ||||||||||||||
Common stock subject to possible redemption | Common stock | Additional | Total stockholders’ equity and redeemable Class A common stock | |||||||||||||||||||||||||
Class A | Class B | paid-in | Accumulated | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | capital | deficit | |||||||||||||||||||||||
Balance — March 24, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Issuance of Class B common stock to Sponsor | — | — | 4,605,750 | 461 | 19,564 | — | 20,025 | |||||||||||||||||||||
Issuance of Class B common stock to Metric | — | — | 1,144,250 | 114 | 4,861 | — | 4,975 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (10,000 | ) | (10,000 | ) | |||||||||||||||||||
Balance — April 30, 2021 (audited) | 0 | 0 | 5,750,000 | 575 | 24,425 | (10,000 | ) | 15,000 | ||||||||||||||||||||
Net loss | — | — | — | — | — | (73,303 | ) | (73,303 | ) | |||||||||||||||||||
Balance — June 30, 2021 (unaudited) | 0 | 0 | 5,750,000 | 575 | 24,425 | (83,303 | ) | (58,303 | ) | |||||||||||||||||||
Issuance of Class A common stock | 23,000,000 | 198,363,610 | — | — | — | — | — | |||||||||||||||||||||
Excess fair value of founder shares from anchor agreement | — | 11,491,876 | — | — | — | — | — | |||||||||||||||||||||
Deemed capital contribution from issuance of private placement warrants | — | — | — | — | 2,081,733 | — | 2,081,733 | |||||||||||||||||||||
Forward purchase units liability | — | — | — | — | (31,000 | ) | — | (31,000 | ) | |||||||||||||||||||
Accretion of Class A redeemable shares | — | 20,144,513 | — | — | (2,075,158 | ) | (18,069,355 | ) | (20,144,513 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (823,289 | ) | (823,289 | ) | |||||||||||||||||||
Balance – September 30, 2021 (unaudited) | 23,000,000 | $ | 230,000,000 | 5,750,000 | $ | 575 | $ | 0 | $ | (18,975,947 | ) | $ | (18,975,372 | ) | ||||||||||||||
For the Three Months Ended March 31, 2022 (unaudited) | ||||
Cash Flows from Operating Activities: | ||||
Net income | $ | 1,462,193 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Interest earned on marketable securities held in Trust Account | (16,505 | ) | ||
Unrealized gain on marketable securities held in Trust Account | (2,266 | ) | ||
Change in fair value of warrant liability | (2,094,300 | ) | ||
Change in fair value of forward purchase unit liability | 122,020 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 87,879 | |||
Accounts payable | (1,831 | ) | ||
Accrued expenses | (22,321 | ) | ||
Net cash used in operating activities | (465,131 | ) | ||
Net Change in Cash | (465,131 | ) | ||
Cash – Beginning | 01,062,653 | |||
Cash – Ending | $ | 597,522 | ||
Non-Cash Investing and Financing Activities: | ||||
Remeasurement of Class A common stock subject to possible redemption | $ | 18,711 | ||
Cash Flows used in Operating Activities: | ||||
Net loss | $ | (906,592 | ) | |
Adjustments to reconcile net cash provided by operating activities: | ||||
Unrealized gain on short-term investments | (423 | ) | ||
Change in fair value of warrant liability | (283,000 | ) | ||
Change in fair value of forward purchase units | 11,832 | |||
Allocation of deferred offering cost for warrant liability | 989,674 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (807,596 | ) | ||
Deferred offering costs | (630,391 | ) | ||
Accrued expenses | 38,163 | |||
Net cash used in operating activities | (1,588,333 | ) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash in Trust Account | (230,000,000 | ) | ||
Net cash used in investing activities | (230,000,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from issuance of Class A common stock | 230,000,000 | |||
Proceeds from sale of warrants | 5,095,733 | |||
Proceeds from promissory note – related party | 188,804 | |||
Payment of promissory note – related party | (188,804 | ) | ||
Payments for underwriting fee | (2,335,058 | ) | ||
Proceeds from issuance of Class B common stock to Sponsor | 20,025 | |||
Proceeds from issuance of Class B common stock to Metric | 4,975 | |||
Net cash provided by financing activities | 232,785,675 | |||
Net Change in Cash | 1,197,342 | |||
Cash — Beginning of period | 0 | |||
Cash — End of period | $ | 1,197,342 | ||
Supplemental cash flow information – Non-Cash investing and financing activities: | ||||
Initial classification of Class A common stock subject to possible redemption | $ | 230,000,000 | ||
Deferred offering cost included in accrued offering cost | $ | 9,738 | ||
Initial fair value of warrant liability | $ | 12,840,000 | ||
Initial fair value of forward purchase units liability | $ | 42,832 | ||
Deferred underwriter fees liability | $ | 8,050,000 | ||
For the Period From | ||||||||
March 24, 2021 (inception) | ||||||||
Three Months Ended | Through | |||||||
September 30, 2021 | September 30, 2021 | |||||||
Net loss | $ | (823,289 | ) | $ | (906,592 | ) | ||
Accretion of temporary equity to redemption value | (20,144,513 | ) | (20,144,513 | ) | ||||
Net loss including accretion of temporary equity to redemption value | $ | (20,967,802 | ) | $ | (21,051,105 | ) |
Three Months Ended | ||||
March 31, 2022 | ||||
Net income for the three months ended March 31, 2022 | $ | 1,462,193 | ||
Accretion of temporary equity to redemption value | (18,771 | ) | ||
Net income including accretion of temporary equity to redemption value | $ | 1,443,422 | ||
Three Months Ended March 31, 2022 | ||||||||
Class A | Class B | |||||||
Total number of shares | 23,000,000 | 5,750,000 | ||||||
Ownership percentage | 80 | % | 20 | % | ||||
Allocation of net income based on ownership percentage | $ | 1,169,755 | $ | 292,439 | ||||
Less: Allocation of accretion based on ownership percentage | (15,017 | ) | (3,754 | ) | ||||
Plus: Accretion applicable to Class A redeemable shares | 18,771 | 0 | ||||||
Total income by Class | $ | 1,173,509 | $ | 288,684 | ||||
Weighted average shares outstanding | 23,000,000 | 5,750,000 | ||||||
Income per share | $ | 0.05 | $ | 0.05 |
For the Period From | ||||||||||||||||
March 24, 2021 (inception) | ||||||||||||||||
Three Months Ended | Through | |||||||||||||||
September 30, 2021 | September 30, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss including accretion of temporary equity | $ | (8,602,175 | ) | $ | (12,365,627 | ) | $ | (6,014,601 | ) | $ | (15,036,504 | ) | ||||
Accretion of temporary equity to redemption value | 20,144,513 | 0 | 20,144,513 | 0 | ||||||||||||
Allocation of Net income (loss) | $ | 11,542,338 | $ | (12,365,627 | ) | $ | 14,129,912 | $ | (15,036,504 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted average shares outstanding | 4,000,000 | 5,750,000 | 2,300,000 | 5,750,000 | ||||||||||||
Basic and diluted net income (loss ) per share | $ | 2.89 | $ | (2.15 | ) | $ | 6.14 | $ | (2.62 | ) |
Forward Purchase | Public | Private Placement | Total Level 3 | |||||||||||||
Units | Warrants | Warrants | Financial Instruments | |||||||||||||
Level 3 financial instruments as of December 31, 2021 | 521,184 | 0 | 1,718,000 | 2,239,184 | ||||||||||||
Change in fair value | 122,020 | — | (482,000 | ) | (359,980 | ) | ||||||||||
Level 3 financial instruments as of March 31, 2022 | $ | 643,204 | $ | 0 | $ | 1,236,000 | $ | 1,879,204 | ||||||||
Private Placement Warrants Exercisable for Class A common stock | Public Warrants | Forward Purchase Liability | ||||||||||
Balance March 24, 2021 (inception) | $ | 0— | $ | 0— | $ | 0— | ||||||
Change in fair value of warrant issuance | 3,014,000 | 10,109,000 | 31,000 | |||||||||
Fair Value at September 14, 2021 | 3,014,000 | 10,109,000 | 31,000 | |||||||||
Change in fair value of warrant liability | (58,000 | ) | (225,000 | ) | 11,832 | |||||||
Fair Value at September 30, 2021 | $ | 2,956,000 | $ | 9,884,000 | $ | 42,832 | ||||||
Description | Level | September 30, 2021 | ||||||
Assets: | ||||||||
Marketable securities held in Trust Account | 1 | $ | 230,000,423 | |||||
Liabilities: | ||||||||
Public warrants | 3 | $ | 9,884,000 | |||||
Private warrants | 3 | $ | 2,956,000 | |||||
Forward Purchase Liability | 3 | $ | 42,832 |
March 31, 2022 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Assets | ||||||||||||
Cash and marketable securities held in trust account | $ | 230,023,555 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||
Public Warrants | $ | 4,138,850 | $ | — | $ | — | ||||||
Private Placement Warrants | $ | — | $ | — | $ | 1,236,000 | ||||||
Forward Purchase Units | $ | — | $ | — | $ | 643,204 |
December 31, 2021 | ||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||
Assets | ||||||||||||
Cash and marketable securities held in trust account | $ | 230,004,784 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||
Public Warrants | $ | 5,751,150 | $ | — | $ | — | ||||||
Private Placement Warrants | $ | — | $ | — | $ | 1,718,000 | ||||||
Forward Purchase Units | $ | — | $ | — | $ | 521,184 |
Public Warrants | Private Placement Warrants | Forward Purchase Units | ||||||||||
Derivative warrant liabilities as of December 31, 2021 | 5,751,150 | 1,718,000 | 521,184 | |||||||||
Change in fair value | (1,612,300 | ) | (482,000 | ) | 122,020 | |||||||
Derivative warrant liabilities as of March 31, 2022 | $ | 4,138,850 | $ | 1,236,000 | $ | 643,204 | ||||||
Input | Public Warrants | Private Warrants | ||||||
Common stock price | $ | 9.5103 | $ | 9.5103 | ||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Risk-free rate of interest | 1.15 | % | 1.15 | % | ||||
Volatility | 15.40 | % | 15.40 | % | ||||
Term | 5.94 | 5.94 | ||||||
Warrant to buy one share (unadjusted for the probability of dissolution) | $ | 0.9550 | $ | 0.9667 | ||||
Warrant to buy one share (adjusted for the probability of dissolution) | $ | 0.8595 | $ | 0.8701 | ||||
Dividend yield | 0.00 | % | 0.00 | % |
Private Placement Warrants | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
Input | ||||||||
Ordinary share price | $ | 9.89 | $ | 9.81 | ||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Risk-free rate of interest | 2.40 | % | 1.32 | % | ||||
Volatility | 6.20 | % | 9.88 | % | ||||
Term | 5.44 | 5.69 | ||||||
Warrant to buy one share | $ | 0.36 | $ | 0.51 | ||||
Dividend yield | 0.00 | % | 0.00 | % |
Input | Forward Purchase Liability | |||
Probability of an acquisition occurring | 90.00 | % | ||
Unit price at time of initial public offering | $ | 10.00 | ||
Risk-free rate of interest | 1.00 | |||
Time to the acquisition | 0.08 | % |
Forward Purchase Liability | ||||||||
March 31, 2022 | December 31, 2021 | |||||||
Input | ||||||||
Probability of an acquisition | 75.00 | % | 85.00 | % | ||||
Unit price | $ | 10.13 | $ | 10.10 | ||||
Risk-free rate of interest | 0.94 | % | 0.27 | % | ||||
Time to acquisition | 0.44 | 0.69 |
Item 2. |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. |
Item 4. |
Item 5. |
Item 6. |
* | Filed herewith. |
** | Furnished herewith. |
(1) | Previously filed as an exhibit to our current Report on Form 8-K filed on September 15, 2021. |
(2) | Previously filed as an exhibit to our Registration Statement on Form S-1 filed on August 24, 2021. |
FIRST LIGHT ACQUISITION GROUP, INC. | ||||||
Date: | By: | /s/ William J. Weber | ||||
William J. Weber | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ Michael J. Alber | ||||
Michael J. Alber | ||||||
Chief Financial Officer | ||||||
(Principal Financial and Accounting Officer) |