☒ | 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 | 001-40914 | 86-2438985 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||
100 Springhouse Drive, Suite 204 Collegeville, PA | 19426 | |||
(Address of principal executive offices) | (Zip Code) |
Title of each Class | Trading Symbol(s) | Name of each exchange on which registered | ||
Units, each consisting of one share of Class A common stock, $0.0001 par value, one right, and one-half of one redeemable warrant | FEXDU | The Nasdaq Stock Market LLC | ||
Class A Common stock, par value $0.0001 per share | FEXD | The Nasdaq Stock Market LLC | ||
Rights included as part of the units Warrants | FEXDR | The Nasdaq Stock Market LLC | ||
each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share | FEXDW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page No. | ||||||
No. | ||||||
1 | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | 21 | |||||
Item 3. | 25 | |||||
Item 4. | 25 | |||||
26 | ||||||
Item 1. | 26 | |||||
Item 1A. | 26 | |||||
Item 2. | 26 | |||||
Item 3. | 26 | |||||
Item 4. | 26 | |||||
Item 5. | 26 | |||||
Item 6. | 27 | |||||
28 |
Item 1. | Financial Information |
March 31, 2022 | December 31, 2021 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 198,124 | $ | 612,750 | ||||
Prepaid expenses | 139,148 | 86,557 | ||||||
Total Current Assets | 337,272 | 699,307 | ||||||
Long-term prepaid expenses | 25,754 | 38,633 | ||||||
Cash held-in Trust Account | 116,163,809 | 116,152,113 | ||||||
Total Assets | $ | 116,526,835 | $ | 116,890,053 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 10,400 | $ | 179,371 | ||||
Total Current Liabilities | 10,400 | 179,371 | ||||||
Derivative Forward purchase liability | 1,887,939 | 1,726,908 | ||||||
Derivative Warrant liabilities | 1,997,358 | 3,706,098 | ||||||
Deferred underwrite fee payable | 3,737,500 | 3,737,500 | ||||||
Total Liabilities | 7,633,197 | 9,349,877 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 6) | 0 | 0 | ||||||
Class A common stock subject to possible redemption; 11,500,000 shares at redemption value of $10.10 per share | 116,150,000 | 116,150,000 | ||||||
Stockholders’ Deficit: | ||||||||
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | 0 | 0 | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 57,500 representative shares issued and outstanding (excludes 11,500,000 shares subject to redemption) | 6 | 6 | ||||||
Class B Common Stock, par value $0.0001; 20,000,000 shares authorized; 2,875,000 issued and outstanding | 288 | 288 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (7,256,656 | ) | (8,610,118 | ) | ||||
Total Stockholders’ Deficit | (7,256,362 | ) | (8,609,824 | ) | ||||
Total Liabilities and Stockholders’ Deficit | $ | 116,526,835 | $ | 116,890,053 | ||||
June 30, | December 31, | |||||||
2022 | 2021 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 18,516 | $ | 612,750 | ||||
Prepaid expenses | 85,619 | 86,557 | ||||||
Total Current Assets | 104,135 | 699,307 | ||||||
Long-term prepaid expenses | 12,878 | 38,633 | ||||||
Cash held-in Trust Account | 116,320,654 | 116,152,113 | ||||||
Total Assets | $ | 116,437,667 | $ | 116,890,053 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 64,428 | $ | 179,371 | ||||
Due to Related party | 20,000 | — | ||||||
Total Current Liabilities | 88,428 | 179,371 | ||||||
Derivative Forward purchase liability | 1,777,116 | 1,726,908 | ||||||
Derivative Warrant liabilities | 1,121,035 | 3,706,098 | ||||||
Deferred underwrite fee payable | 3,737,500 | 3,737,500 | ||||||
Total Liabilities | 6,724,079 | 9,349,877 | ||||||
COMMITMENTS AND CONTINGENCIES (NOTE 6) | 0 | 0 | ||||||
Class A common stock subject to possible redemption; 11,500,000 shares at redemption value | 116,150,000 | 116,150,000 | ||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued and outstanding | — | — | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 57,500 representative shares issued and outstanding (excludes 11,500,000 shares subject to redemption) | 6 | 6 | ||||||
Class B Common Stock, par value $0.0001; 20,000,000 shares authorized; 2,875,000 issued and outstanding | 288 | 288 | ||||||
Additional paid-in capital | — | — | ||||||
Accumulated deficit | (6,436,706 | ) | (8,610,118 | ) | ||||
Total Stockholders’ Deficit | (6,436,412 | ) | (8,609,824 | ) | ||||
Total Liabilities and Stockholders’ Deficit | $ | 116,437,667 | $ | 116,890,053 | ||||
Three months ended March 31, 2022 | From March 5, 2021 (inception) to March 31, 2021 | For the three months ended | For the six months ended June 30, 2022 | From March 5, 2021 (inception) to June 30, 2021 | ||||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Formation and Operating Costs | $ | 205,943 | $ | 851 | ||||||||||||||||||||
June 30, 2022 | June 30, 2021 | For the six months ended June 30, 2022 | From March 5, 2021 (inception) to June 30, 2021 | |||||||||||||||||||||
Operating Expenses | ||||||||||||||||||||||||
General and administrative | $ | 324,041 | $ | 82 | $ | 529,984 | $ | 933 | ||||||||||||||||
Total operating expenses | 205,943 | 851 | 324,041 | 82 | 529,984 | 933 | ||||||||||||||||||
Other Income (Expenses): | ||||||||||||||||||||||||
Other Income (Expenses) | ||||||||||||||||||||||||
Change in fair value of derivative warrant liabilities | 1,708,740 | 0 | 876,323 | — | 2,585,063 | — | ||||||||||||||||||
Change in fair value of derivative forward purchase liability | (161,031 | ) | 0 | 110,823 | — | (50,208 | ) | — | ||||||||||||||||
Income from investments held in Trust Account | 11,696 | 0 | 156,845 | — | 168,541 | — | ||||||||||||||||||
Total other income (expenses), net | 1,559,405 | 0 | 1,143,991 | — | 2,703,396 | — | ||||||||||||||||||
Net income (loss) | $ | 1,353,462 | $ | (851 | ) | |||||||||||||||||||
Basic & diluted net loss per share (Class A) | $ | 0.09 | $ | 0 | ||||||||||||||||||||
Net (Loss) Income | $ | 819,950 | $ | (82 | ) | $ | 2,173,412 | $ | (933 | ) | ||||||||||||||
Basic & diluted net income (loss) per share (Class A) | $ | 0.06 | $ | (0.00 | ) | $ | 0.15 | $ | (0.00 | ) | ||||||||||||||
Weighted average number of ordinary shares-basic and diluted (Class A) | 11,557,500 | 0 | 11,557,500 | — | 11,557,500 | — | ||||||||||||||||||
Basic & diluted net loss per share (Class B) | $ | 0.09 | $ | (0.00 | ) | $ | 0.06 | $ | (0.00 | ) | $ | 0.15 | $ | (0.00 | ) | |||||||||
Weighted average number of ordinary shares-basic and diluted (Class B) 1 | 2,875,000 | 2,500,000 | 2,875,000 | 2,500,000 | 2,875,000 | 2,500,000 | ||||||||||||||||||
1. | For the period from March 5, 2021 (inception) to |
Common Stock | ||||||||||||||||||||||||||||
Class A | Class B | Additional Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Share | Amount | |||||||||||||||||||||||||
Balance, March 5, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||||||||||
Share issuance – Class B 1 | — | — | 2,875,000 | 288 | 24,712 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (851 | ) | (851 | ) | |||||||||||||||||||
March 31, 2021 | 0 | $ | 0 | 2,875,000 | $ | 288 | $ | 24,712 | $ | (851 | ) | $ | 24,149 | |||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
Class A | Class B | Additional Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||
Shares | Amount | Share | Amount | |||||||||||||||||||||||||
Balance, December 31, 2021 | 57,500 | $ | 6 | 2,875,000 | $ | 288 | $ | 0 | $ | (8,610,118 | ) | $ | (8,609,824 | ) | ||||||||||||||
Net income | — | — | — | — | — | 1,353,462 | 1,353,462 | |||||||||||||||||||||
March 31, 2022 | 57,500 | $ | 6 | 2,875,000 | $ | 288 | $ | 0 | $ | (7,256,656 | ) | $ | (7,256,362 | ) |
Common Stock | ||||||||||||||||||||||||||||
Class A | Class B | Additional | ||||||||||||||||||||||||||
Paid-in | Accumulated | |||||||||||||||||||||||||||
Shares | Amount | Share | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
Balance, March 5, 2021 (inception) | — | $ | — | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Share issuance – Class B 1 | — | — | 2,875,000 | 288 | 24,712 | — | 25,000 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (851 | ) | (851 | ) | |||||||||||||||||||
March 31, 2021 | — | $ | — | 2,875,000 | $ | 288 | $ | 24,712 | $ | (851 | ) | $ | 24,149 | |||||||||||||||
Net loss | — | — | — | — | — | ( 82 | ) | ( 82 | ) | |||||||||||||||||||
June 30, 2021 | — | $ | — | 2,875,000 | $ | 288 | $ | 24,712 | $ | (933 | ) | $ | 24,067 | |||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
Class A | Class B | Additional | ||||||||||||||||||||||||||
Paid-in | Accumulated | |||||||||||||||||||||||||||
Shares | Amount | Share | Amount | Capital | Deficit | Total | ||||||||||||||||||||||
Balance, December 31, 2021 | 57,500 | $ | 6 | 2,875,000 | $ | 288 | $ | — | $ | (8,610,118 | ) | $ | (8,609,824 | ) | ||||||||||||||
Net income | — | — | — | — | — | 1,353,462 | 1,353,462 | |||||||||||||||||||||
March 31, 2022 | 57,500 | $ | 6 | 2,875,000 | $ | 288 | $ | — | $ | (7,256,656 | ) | $ | (7,256,362 | ) | ||||||||||||||
Net income | — | — | — | — | — | 819,950 | 819,950 | |||||||||||||||||||||
June 30, 2022 | 57,500 | $ | 6 | 2,875,000 | $ | 288 | $ | — | $ | (6,436,706 | ) | $ | (6,436,412 | ) | ||||||||||||||
1. | Includes an aggregate of 375,000 shares of common stock subject to forfeiture to the extent that the underwriters’ over-allotment is not exercised in full or in part. |
Three months ended March 31, 2022 | From March 5, 2021 (inception) to March 31, 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income ( loss) | $ | 1,353,462 | $ | (851 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Change in fair value of derivative forward purchase liability | 161,031 | 0 | ||||||
Change in fair value of warrant liabilities | (1,708,740 | ) | 0 | |||||
Income from investments held in Trust Account | (11,696 | ) | 0 | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (39,712 | ) | 0 | |||||
Accounts payable and accrued liabilities | (168,971 | ) | 846 | |||||
Net cash used in operating activities | $ | (414,626 | ) | $ | (5 | ) | ||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common shares to Sponsor | 0 | 25,000 | ||||||
Payment of offering costs | 0 | (20,000 | ) | |||||
Net cash provided by financing activities | 0 | 5,000 | ||||||
Net increase in cash | (414,626 | ) | 4,995 | |||||
Cash, beginning of period | 612,750 | 0 | ||||||
Cash, end of period | $ | 198,124 | $ | 4,995 | ||||
Supplemental Disclosures of Noncash Financing Activities | ||||||||
Accrued deferred offering costs | $ | 0 | $ | 80,000 |
Six months ended June 30, 2022 | From March 5, 2021 (inception) to June 30, 2021 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 2,173,412 | $ | (933 | ) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
Change in fair value of derivative forward purchase liability | 50,208 | — | ||||||
Change in fair value of warrant liabilities | (2,585,063 | ) | — | |||||
Income from investments held in Trust Account | (168,541 | ) | — | |||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 26,693 | — | ||||||
Accounts payable and accrued liabilities | (110,943 | ) | 847 | |||||
Due to related party | 20,000 | — | ||||||
Net cash used in operating activities | $ | (594,234 | ) | $ | (86 | ) | ||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of common shares to Sponsor | — | 25,000 | ||||||
Proceeds from promissory note from related parties | — | 60,418 | ||||||
Payment of offering costs | — | (84,841 | ) | |||||
Net cash provided by financing activities | — | 577 | ||||||
Net change in cash | (594,234 | ) | 491 | |||||
Cash, beginning of period | 612,750 | — | ||||||
Cash, end of period | $ | 18,516 | $ | 491 | ||||
Supplemental Disclosures of Noncash Financing Activities Accrued deferred offering costs | $ | — | $ | 114,140 | ||||
Gross proceeds from IPO | 115,000,000 | |||
Less: | ||||
Proceeds allocated to Public Warrants | (1,380,000 | ) | ||
Class A ordinary share issuance costs | (6,309,800 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | 8,839,800 | |||
Class a ordinary shares subject to redemption | 116,150,000 | |||
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) | ||||||||||||||||||
Public Warrants | $ | 0 | $ | 0 | $ | 1,092,500 | $ | 575,000 | $ | — | $ | — | ||||||||||||
Private Placement Warrants | 0 | 0 | 904,858 | — | — | 546,035 | ||||||||||||||||||
Warrant Liability | 0 | 0 | 1,997,358 | 575,000 | — | 546,035 | ||||||||||||||||||
Forward Purchase Agreement Liability | 0 | 0 | 1,887,939 | — | — | 1,777,116 | ||||||||||||||||||
Total | $ | 0 | $ | 0 | $ | 3,885,297 | $ | 575,000 | $ | — | $ | 2,323,151 | ||||||||||||
Inputs | Public Warrant | Private Placement Warrant | Forward Purchase Units | |||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 10.00 | ||||||
Volatility | 6.5 | % | 6.5 | % | 6.5 | % | ||||||
Expected term | 5.75 years | 5.75 years | 0.75 year | |||||||||
Risk-free rate | 1.33 | % | 1.33 | % | 0.09 | % | ||||||
Probability of acquisition | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Dividend yield | 0 | % | 0 | % | 0 | % |
Inputs | Public Warrant | Private Placement Warrant | Forward Purchase Units | |||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 10.00 | ||||||
Volatility | 8.4 | % | 8.4 | % | 8.4 | % | ||||||
Expected term | 5.56 years | 5.56 years | 0.56 year | |||||||||
Risk-free rate | 1.30 | % | 1.30 | % | 0.21 | % | ||||||
Probability of acquisition | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Dividend yield | 0 | % | 0 | % | 0 | % |
Inputs | Private Placement Warrant | Forward Purchase Units | ||||||
Exercise price | $ | 11.50 | $ | 10.00 | ||||
Volatility | 5.2 | % | 5.2 | % | ||||
Expected term | 5.31 years | 0.31 year | ||||||
Risk-free rate | 2.39 | % | 0.64 | % | ||||
Probability of acquisition | 60.0 | % | 100.0 | % | ||||
Dividend yield | 0 | % | 0 | % |
Inputs | Private Placement Warrant | Forward Purchase Units | ||||||
Exercise price | $ | 11.50 | $ | 10.00 | ||||
Volatility | 2.7 | % | 5.2 | % | ||||
Expected term | 5.31 years | 0.31 year | ||||||
Risk-free rate | 2.97 | % | 1.89 | % | ||||
Probability of acquisition | 60.0 | % | 100.0 | % | ||||
Dividend yield | 0 | % | 0 | % |
Private Placement | Public Warrant | Total Warrant Liability | Forward Purchase Agreement | |||||||||||||
Fair value as of December 31, 2021 | $ | 1,521,098 | 2,185,000 | 3,706,098 | $ | 1,726,908 | ||||||||||
Change in fair value of warrant liabilities | (616,240 | ) | (1,092,500 | ) | (1,708,740 | ) | 161,031 | |||||||||
Fair value as of March 31, 2022 | $ | 904,858 | 1,092,500 | 1,997,358 | $ | 1,887,939 | ||||||||||
Private Placement | Public Warrant | Total Warrant Liability | Forward Purchase Agreement | |||||||||||||
Fair value as of December 31, 2021 | $ | 1,521,098 | 2,185,000 | 3,706,098 | $ | 1,726,908 | ||||||||||
Change in fair value of warrant liabilities | (975,063 | ) | (1,610,000 | ) | (2,585,063 | ) | 50,208 | |||||||||
Fair value as of June 30, 2022 | $ | 546,035 | 575,000 | 1,121,035 | $ | 1,777,116 | ||||||||||
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. |
* | Filed herewith. |
** | Furnished. |
FINTECH ECOSYSTEM DEVELOPMENT CORP. | ||||||
Date: August 12 , 2022 | By: | /s/ Jenny Junkeer | ||||
Name: | Jenny Junkeer | |||||
Title: | Chief Financial Officer |