☒ | 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 | 001-40741 | 98-1592043 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1400 Old Country Road, Suite 301 Westbury, New York | 11590 | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
KCGI.U | The New York Stock Exchange | |||
Class A ordinary shares | KCGI | The New York Stock Exchange | ||
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | KCGI WS | The New York Stock Exchange |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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Item 6. |
March 31, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 1,877,929 | $ | 2,014,340 | ||||
Prepaid expenses | 220,000 | 268,246 | ||||||
Total current assets | 2,097,929 | 2,282,586 | ||||||
Investments held in Trust Account | 276,248,235 | 276,057,333 | ||||||
Total Assets | $ | 278,346,164 | $ | 278,339,919 | ||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 140,949 | $ | 37,663 | ||||
Accrued expenses | 371,016 | 216,800 | ||||||
Total current liabilities | 511,965 | 254,463 | ||||||
Working Capital Loan—related party | 150,000 | 200,000 | ||||||
Deferred underwriting commissions in connection with the initial public offering | 9,660,000 | 9,660,000 | ||||||
Derivative warrant liabilities | 19,236,000 | 31,853,000 | ||||||
Total Liabilities | 29,557,965 | 41,967,463 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, 27,600,000 shares at redemption value of $10.00 per share at March 31, 2022 and December 31, 2021 | 276,000,000 | 276,000,000 | ||||||
Shareholders’ Deficit | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding at March 31, 2022 and December 31, 2021 | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 100,000,000 shares authorized; 0 non-redeemable shares issued or outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 10,000,000 shares authorized; 6,900,000 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 690 | 690 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (27,212,491 | ) | (39,628,234 | ) | ||||
Total shareholders’ deficit | (27,211,801 | ) | (39,627,544 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 278,346,164 | $ | 278,339,919 | ||||
Assets | ||||
Current assets: | ||||
Cash | $ | 2,294,361 | ||
Prepaid expenses | 339,830 | |||
Total current assets | 2,634,191 | |||
Investments held in Trust Account | 276,030,820 | |||
Total Assets | $ | 278,665,011 | ||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | ||||
Current liabilities: | ||||
Accounts payable | $ | 47,565 | ||
Accrued expenses | 147,068 | |||
Total current liabilities | 194,633 | |||
Working Capital Loan - related party | 150,000 | |||
Deferred underwriting commissions in connection with the initial public offering | 9,660,000 | |||
Derivative warrant liabilities | 22,876,200 | |||
Total Liabilities | 32,880,833 | |||
Commitments and Contingencies | 0 | |||
Class A ordinary shares subject to possible redemption, 27,600,000 shares at $10.00 per share redemption value | 276,000,000 | |||
Shareholders’ Deficit | ||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0— | |||
Class A ordinary shares, $0.0001 par value; 100,000,000 shares authorized; 0 non-redeemable shares issued or outstanding | 0 | |||
Class B ordinary shares, $0.0001 par value; 10,000,000 shares authorized; 6,900,000 shares issued and outstanding | 690 | |||
Additional paid-in capital | 0 | |||
Accumulated deficit | (30,216,512 | ) | ||
Total shareholders’ deficit | (30,215,822 | ) | ||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 278,665,011 | ||
Three Months Ended September 30, 2021 | For The Period From March 19, 2021 (Inception) through September 30, 2021 | |||||||
General and administrative expenses | $ | 104,269 | $ | 138,376 | ||||
Administrative expenses - related party | 40,000 | 40,000 | ||||||
Loss from operations | (144,269 | ) | (178,376 | ) | ||||
Other income (expenses): | ||||||||
Change in fair value of derivative warrant liabilities | 961,800 | 961,800 | ||||||
Offering costs associated with derivative warrant liabilities | (889,172 | ) | (889,172 | ) | ||||
Income from investments held in Trust Account | 30,820 | 30,820 | ||||||
Total other income | 103,448 | 103,448 | ||||||
Net loss | $ | (40,821 | ) | $ | (74,928 | ) | ||
Weighted average shares outstanding of Class A ordinary share, basic and diluted | 27,600,000 | 27,600,000 | ||||||
Basic and diluted net loss per share, Class A ordinary share | $ | (0.00 | ) | $ | (0.00 | ) | ||
Weighted average shares outstanding of Class B ordinary share, basic and diluted | 6,440,217 | 6,220,109 | ||||||
Basic and diluted net loss per share, Class B ordinary share | $ | (0.00 | ) | $ | (0.00 | ) | ||
For The Three Months Ended March 31, 2022 | For The Period From March 19, 2021 (Inception) through March 31, 2021 | |||||||
General and administrative expenses | $ | 382,159 | $ | 18,572 | ||||
Administrative expenses—related party | 60,000 | 0 | ||||||
Loss from operations | (442,159 | ) | (18,572 | ) | ||||
Other income: | ||||||||
Change in fair value of derivative warrant liabilities | 12,617,000 | 0 | ||||||
Change in fair value of Working Capital Loan—related party | 50,000 | 0 | ||||||
Income from investments held in Trust Account | 190,902 | 0 | ||||||
Total other income | 12,857,902 | 0 | ||||||
Net income (loss) | $ | 12,415,743 | $ | (18,572) | ||||
Weighted average shares outstanding of Class A ordinary share, basic and diluted | 27,600,000 | 0 | ||||||
Basic and diluted net income (loss) per share, Class A ordinary share | $ | 0.36 | $ | 0 | ||||
Weighted average shares outstanding of Class B ordinary share, basic and diluted | 6,900,000 | 500,000 | ||||||
Basic and diluted net income (loss) per share, Class B ordinary share | $ | 0.36 | $ | (0.04 | ) | |||
Ordinary Shares | Additional Paid-in Capital | Total Shareholders’ Deficit | ||||||||||||||||||||||||||
Class A | Class B | Accumulated Deficit | ||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance—December 31, 2021 | 0 | $ | 0 | 6,900,000 | $ | 690 | $ | 0— | $ | (39,628,234 | ) | $ | (39,627,544 | ) | ||||||||||||||
Net income | — | — | — | — | 0 | 12,415,743 | 12,415,743 | |||||||||||||||||||||
Balance—March 31, 2022 (Unaudited) | 0 | $ | 0 | 6,900,000 | $ | 690 | $ | 0 | $ | (27,212,491 | ) | $ | (27,211,801) | |||||||||||||||
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance—March 19, 2021 (Inception) | 0 | $ | 0 | 0— | $ | 0— | $ | 0— | $ | 0— | $ | 0— | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | — | — | 7,475,000 | 748 | 24,252 | 0 | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | 0 | (18,572 | ) | (18,572 | ) | |||||||||||||||||||
Balance—March 31, 2021 (Unaudited) | 0 | $ | 0 | 7,475,000 | $ | 748 | $ | 24,252 | $ | (18,572 | ) | $ | 6,428 | |||||||||||||||
Ordinary Shares | Total Shareholders’ | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid- | Accumulated | Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | in Capital | Deficit | (Deficit) | ||||||||||||||||||||||
Balance - March 19, 2021 (inception) | 0 | $ | 0 | 0— | $ | 0— | $ | 0— | $ | 0— | $ | 0— | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | — | — | 6,900,000 | 690 | 24,310 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (18,572 | ) | (18,572 | ) | |||||||||||||||||||
Balance - March 31, 2021 (unaudited) | — | — | 6,900,000 | 690 | 24,310 | (18,572 | ) | 6,428 | ||||||||||||||||||||
Net loss | — | — | — | — | — | (15,535 | ) | (15,535 | ) | |||||||||||||||||||
Balance - June 30, 2021 (unaudited) | — | — | 6,900,000 | 690 | 24,310 | (34,107 | ) | (9,107 | ) | |||||||||||||||||||
Accretion of Class A ordinary shares subject to possible redemption | — | — | — | — | (24,310 | ) | (30,141,584 | ) | (30,165,894 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (40,821 | ) | (40,821 | ) | |||||||||||||||||||
Balance - September 30, 2021 (unaudited) | 0 | $ | 0 | 6,900,000 | $ | 690 | $ | 0 | $ | (30,216,512 | ) | $ | (30,215,822 | ) | ||||||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (74,928 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Change in fair value of derivative warrant liabilities | (961,800 | ) | ||
General and administrative expenses paid by related party in exchange for issuance of Class B ordinary shares | 25,000 | |||
Income from investments held in Trust Account | (30,820 | ) | ||
Offering costs associated with derivative warrant liabilities | 889,172 | |||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (339,830 | ) | ||
Accounts payable | 47,565 | |||
Accrued expenses | (30,132 | ) | ||
Net cash used in operating activities | (475,773 | ) | ||
Cash Flows from Investing Activities | ||||
Cash deposited in Trust Account | (276,000,000 | ) | ||
Net cash used in investing activities | (276,000,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Proceeds from Working Capital Loan - related party | 150,000 | |||
Proceeds received from initial public offering, gross | 276,000,000 | |||
Proceeds received from private placement | 8,520,000 | |||
Offering costs paid | (5,899,866 | ) | ||
Net cash provided by financing activities | 278,770,134 | |||
Net change in cash | 2,294,361 | |||
Cash - beginning of the period | 0 | |||
Cash - end of the period | $ | 2,294,361 | ||
Supplemental disclosure of non-cash financing activities: | ||||
Offering costs included in accrued expenses | $ | 177,200 | ||
Deferred underwriting commissions in connection with the initial public offering | $ | 9,660,000 |
For The Three Months Ended March 31, 2022 | For The Period From March 19, 2021 (Inception) through March 31, 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 12,415,743 | $ | (18,572) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of derivative warrant liabilities | (12,617,000 | ) | 0 | |||||
Change in fair value of Working Capital Loan—related party | (50,000 | ) | 0 | |||||
General and administrative expenses paid by related party in exchange for issuance of Class B ordinary shares | 0 | 18,572 | ||||||
Income from investments held in Trust Account | (190,902 | ) | 0 | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 48,246 | 0 | ||||||
Accounts payable | 103,286 | 0 | ||||||
Accrued expenses | 154,216 | 0 | ||||||
Net cash used in operating activities | (136,411 | ) | 0 | |||||
Net change in cash | (136,411 | ) | 0 | |||||
Cash—beginning of the period | 2,014,340 | 0 | ||||||
Cash—end of the period | $ | 1,877,929 | $ | 0 | ||||
Supplemental disclosure of non-cash financing activities: | ||||||||
Prepaid expenses paid by related party in exchange for issuance of Class B ordinary shares | $ | 0 | $ | 6,428 | ||||
Offering costs included in accrued expenses | $ | 0 | $ | 22,850 |
As of August 17, 2021 | As Reported | Adjustment | As Restated | |||||||||
Total assets | $ | 278,757,881 | $ | 278,757,881 | ||||||||
Total liabilities | $ | 33,862,711 | $ | 33,862,711 | ||||||||
Class A ordinary shares subject to possible redemption | 239,895,160 | 36,104,840 | 276,000,000 | |||||||||
Preference shares | 0 | 0 | 0 | |||||||||
Class A ordinary shares | 361 | (361 | ) | 0 | ||||||||
Class B ordinary shares | 690 | 0 | 690 | |||||||||
Additional paid-in capital | 5,962,894 | (5,962,894 | ) | 0 | ||||||||
Accumulated deficit | (963,935 | ) | (30,141,585 | ) | (31,105,520 | ) | ||||||
Total shareholders’ equity (deficit) | $ | 5,000,010 | $ | (36,104,840 | ) | $ | (31,104,830 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) | $ | 278,757,881 | $ | 0 | $ | 278,757,881 | ||||||
For the Three Months Ended September 30, 2021 | For The Period From March 19, 2021 (Inception) through September 30, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net loss per ordinary share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss | (33,098 | ) | (7,723 | ) | (61,147 | ) | (13,781 | ) | ||||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average ordinary shares outstanding | 27,600,000 | 6,440,217 | 27,600,000 | 6,220,109 | ||||||||||||
Basic and diluted net loss per ordinary share | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||
For The Three Months Ended March 31, 2022 | For The Period From March 19, 2021 (Inception) through March 31, 2021 | |||||||||||
Class A | Class B | Class B | ||||||||||
Basic and diluted net income (loss) per ordinary share: | ||||||||||||
Numerator: | ||||||||||||
Allocation of net income (loss) | $ | 9,932,594 | $ | 2,483,149 | $ | (18,572 | ) | |||||
Denominator: | ||||||||||||
Basic and diluted weighted average ordinary shares outstanding | 27,600,000 | 6,900,000 | 500,000 | |||||||||
Basic and diluted net income (loss) per ordinary share | $ | 0.36 | $ | 0.36 | $ | (0.04 | ) | |||||
Gross proceeds | $ | 276,000,000 | ||
Less: | ||||
Fair value of Public Warrants at issuance | (15,318,000 | ) | ||
Offering costs allocated to Class A ordinary shares subject to possible redemption | (14,847,894 | ) | ||
Plus: | ||||
Accretion on Class A ordinary shares subject to possible redemption amount | 30,165,894 | |||
Class A ordinary shares subject to possible redemption | $ | 276,000,000 | ||
Gross proceeds | $ | 276,000,000 | ||
Less: | ||||
Fair value of Public Warrants at issuance | (15,318,000 | ) | ||
Offering costs allocated to Class A ordinary shares subject to possible redemption | (14,883,816 | ) | ||
Plus: | ||||
Remeasurement of Class A ordinary shares subject to possible redemption to redemption value | 30,201,816 | |||
Class A ordinary shares subject to possible redemption | $ | 276,000,000 | ||
Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account - U.S. Treasury Securities (1) | $ | 276,029,958 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities - Public Warrants | $ | — | $ | — | $ | 14,697,000 | ||||||
Derivative warrant liabilities - Private Warrants | $ | — | $ | — | $ | 8,179,200 | ||||||
Working Capital Loan - related party | $ | — | $ | — | $ | 150,000 |
March 31, 2022 Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account-U.S. TreasurySecurities (1) | $ | 276,244,809 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities-Public Warrants | $ | 12,420,000 | $ | — | $ | 0 | ||||||
Derivative warrant liabilities-Private Warrants | $ | — | $ | — | $ | 6,816,000 | ||||||
Working Capital Loan-related party | $ | — | $ | — | $ | 150,000 |
(1) | Excludes |
December 31, 2021 Description | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Investments held in Trust Account-U.S. Treasury Securities (1) | $ | 276,055,957 | $ | — | $ | — | ||||||
Liabilities: | ||||||||||||
Derivative warrant liabilities-Public Warrants | $ | 20,493,000 | $ | — | $ | 0 | ||||||
Derivative warrant liabilities-Private Warrants | $ | — | $ | — | $ | 11,360,000 | ||||||
Working Capital Loan-related party | $ | — | $ | — | $ | 200,000 |
(1) | Excludes $1,376 of cash balance held within the Trust Account |
At initial issuance | As of September 30, 2021 | |||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 9.55 | $ | 9.66 | ||||
Volatility | 13.2 | % | 12.1 | % | ||||
Term (years) | 6 | 5.87 | ||||||
Risk-free rate | 0.91 | % | 1.12 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
As of March 31, 2022 | As of December 31, 2021 | |||||||
Exercise price | $ | 11.50 | $ | 11.50 | ||||
Stock price | $ | 9.93 | $ | 9.83 | ||||
Volatility | 6.9 | % | 14.4 | % | ||||
Term (years) | 5.70 | 5.62 | ||||||
Risk-free rate | 2.38 | % | 1.31 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
Derivative warrant liabilities at March 19, 2021 (inception) | $ | 0 | ||
Issuance of Public and Private Warrants | 23,838,000 | |||
Change in fair value of derivative warrant liabilities | (961,800 | ) | ||
Derivative warrant liabilities at September 30, 2021 (unaudited) | $ | 22,876,200 | ||
Derivative warrant liabilities at March 19, 2021 (inception) | $ | 0 | ||
Issuance of Public and Private Warrants | 23,838,000 | |||
Transfer of Public Warrants out of Level 3 | (14,697,000 | ) | ||
Change in fair value of derivative warrant liabilities | 2,219,000 | |||
Derivative warrant liabilities at December 31, 2021 | 11,360,000 | |||
Change in fair value of derivative warrant liabilities | (4,544,000 | ) | ||
Derivative warrant liabilities at March 31, 2022 (Unaudited) | $ | 6,816,000 | ||
Fair value of Working Capital Loan - related party at March 19, 2021 | $ | 0 | ||
Initial fair value of Working Capital Loan - related party | 150,000 | |||
Change in fair value of Working Capital Loan - related party | 0 | |||
Working Capital Loan - related party at September 30, 2021 (unaudited) | $ | 150,000 | ||
Fair value of Working Capital Loan - related party at March 19, 2021 (inception) | $ | 0 | ||
Initial fair value of Working Capital Loan - related party | 150,000 | |||
Change in fair value of Working Capital Loan - related party | 50,000 | |||
Working Capital Loan - related party at December 31, 2021 | 200,000 | |||
Change in fair value of Working Capital Loan - related party | (50,000 | ) | ||
Working Capital Loan - related party at March 31, 2022 (Unaudited) | $ | 150,000 | ||
101.INS* | Inline XBRL Instance Document. | ||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | ||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||
104. | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
* | Filed herewith. |
** | 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. |
KENSINGTON CAPITAL ACQUISITION CORP. V | ||||||
Date: | By: | /s/ Justin Mirro | ||||
Name: | Justin Mirro | |||||
Title: | Chief Executive Officer | |||||
(Principal Executive Officer) |