☒ | 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 | 86-1370703 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
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 and one-half of one Redeemable Warrant | SWAGU | The Nasdaq Stock Market LLC | ||
Class A Common Stock, par value $0.0001 per share | SWAG | The Nasdaq Stock Market LLC | ||
Warrants, each exercisable for one share Class A Common Stock for $11.50 per share | SWAGW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash | $ | 90,183 | $ | 288,108 | $ | 18,159 | $ | 288,108 | ||||||||
Prepaid expenses | 384,900 | 410,111 | 346,878 | 410,111 | ||||||||||||
Other receivable-related party | 5,000 | — | ||||||||||||||
Total Current Assets | 475,083 | 698,219 | 370,037 | 698,219 | ||||||||||||
Prepaid expenses, non-current | 91,667 | 160,417 | 22,917 | 160,417 | ||||||||||||
Cash and Marketable securities held in Trust Account | 231,529,974 | 231,506,662 | 231,842,586 | 231,506,662 | ||||||||||||
TOTAL ASSETS | $ | 232,096,724 | $ | 232,365,298 | $ | 232,235,540 | $ | 232,365,298 | ||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accrued expenses | $ | 1,917,575 | $ | 1,306,281 | $ | 2,500,875 | $ | 1,306,281 | ||||||||
Income taxes payable | 9,909 | — | ||||||||||||||
Advances from related parties | 7,086 | — | ||||||||||||||
Promissory note – related party | 400,000 | — | ||||||||||||||
Total Current Liabilities | 1,917,575 | 1,306,281 | 2,917,870 | 1,306,281 | ||||||||||||
Promissory note - related party | 300,000 | 0 | ||||||||||||||
Deferred underwriting fee payable | 7,982,754 | 7,982,754 | 7,982,754 | 7,982,754 | ||||||||||||
Total Liabilities | 10,200,329 | 9,289,035 | 10,900,624 | 9,289,035 | ||||||||||||
Commitments and Contingencies (Note 6) | 0 | 0 | 0 | 0 | ||||||||||||
Class A common stock subject to possible redemption, 22,807,868 shares at redemption value at March 31, 2022 and December 31, 2021 | 231,499,860 | 231,499,860 | ||||||||||||||
Class A common stock subject to possible redemption, 22,807,868 shares at redemption value | 231,534,776 | 231,499,860 | ||||||||||||||
Stockholders’ Deficit | — | |||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | 0 | 0 | ||||||||||||||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; NaN shares issued and outstanding, and 22,807,868 subject to possible redemption at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||||||||||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 5,701,967 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 570 | 570 | ||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding | — | — | ||||||||||||||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 0ne shares issued and outstanding, and 22,807,868 subject to possible redemption | — | — | ||||||||||||||
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 5,701,967 shares issued and outstanding | 570 | 570 | ||||||||||||||
Additional paid-in capital | 0 | 0 | — | — | ||||||||||||
Accumulated deficit | (9,604,035 | ) | (8,424,167 | ) | (10,200,430 | ) | (8,424,167 | ) | ||||||||
Total Stockholders’ Deficit | (9,603,465 | ) | (8,423,597 | ) | (10,199,860 | ) | (8,423,597 | ) | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 232,096,724 | $ | 232,365,298 | $ | 232,235,540 | $ | 232,365,298 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | For the Period from January 5, 2021 (Inception) Through June 30, | ||||||||||||||||||||||
Three Months Ended March 31, 2022 | For the Period from January 5, 2021 (Inception) Through March 31, 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating and formation costs | $ | 1,203,180 | $ | 1,000 | $ | 864,182 | $ | (1 | ) | $ | 2,067,362 | $ | 999 | |||||||||||
Loss from operations | (1,203,180 | ) | (1,000 | ) | ||||||||||||||||||||
(Loss) Income from operations | (864,182 | ) | 1 | (2,067,362 | ) | (999 | ) | |||||||||||||||||
Other income: | ||||||||||||||||||||||||
Interest earned on marketable securities held in Trust Account | 23,312 | 0 | 312,612 | — | 335,924 | — | ||||||||||||||||||
Total other income | 23,312 | 0 | 312,612 | — | 335,924 | — | ||||||||||||||||||
(Loss) Income before provision for income taxes | (551,570 | ) | 1 | (1,731,438 | ) | (999 | ) | |||||||||||||||||
Provision for income taxes | (9,909 | ) | — | (9,909 | ) | — | ||||||||||||||||||
Net loss | $ | (1,179,868 | ) | $ | (1,000 | ) | ||||||||||||||||||
Net (loss) income | $ | (561,479 | ) | $ | 1 | $ | (1,741,347 | ) | $ | (999 | ) | |||||||||||||
Basic and diluted weighted average shares outstanding, Class A common stock | 22,807,868 | 0 | 22,807,868 | — | 22,807,868 | — | ||||||||||||||||||
Basic and diluted net loss per share, Class A | $ | (0.04 | ) | $ | 0 | $ | (0.02 | ) | $ | — | $ | (0.06 | ) | $ | — | |||||||||
Basic and diluted weighted average shares outstanding, Class B common stock | 5,701,967 | 5,000,000 | 5,701,967 | 5,000,000 | 5,701,967 | 5,000,000 | ||||||||||||||||||
Basic and diluted net loss per share, Class B | $ | (0.04 | ) | $ | (0.00 | ) | ||||||||||||||||||
Basic and diluted net (loss) income per share, Class B | $ | (0.02 | ) | $ | 0.00 | $ | (0.06 | ) | $ | (0.00 | ) | |||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | |||||||||||||||||||||||||||||||||||||||||||
Balance – January 1, 2022 | 0 | $ | 0 | 5,701,967 | $ | 570 | $ | 0 | $ | (8,424,167 | ) | $ | (8,423,597 | ) | — | $ | — | 5,701,967 | $ | 570 | $ | — | $ | (8,424,167) | $ | (8,423,597) | ||||||||||||||||||||||||||||||
Net loss | — | — | — | 0 | 0 | (1,179,868 | ) | (1,179,868 | ) | — | — | — | — | — | (1,179,868) | (1,179,868) | ||||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2022 | 0 | $ | 0 | 5,701,967 | $ | 570 | $ | 0 | $ | (9,604,035 | ) | $ | (9,603,465 | ) | — | — | 5,701,967 | 570 | — | (9,604,035) | (9,603,465) | |||||||||||||||||||||||||||||||||||
Remeasurement of Class A common stock to redemption value | — | — | — | — | — | (34,916) | (34,916) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (561,479) | (561,479) | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance – June 30, 2022 | — | $ | — | 5,701,967 | $ | 570 | $ | — | $ | (10,200,430) | $ | (10,199,860) | ||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | Class A Common Stock | Class B Common Stock | Additional Paid-in | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity | Shares | Amount | Shares | Amount | Capital | Deficit | Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance – January 5, 2021 (inception) | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | — | $ | — | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Issuance of Class B common stock to Sponsor | — | — | 5,750,000 | 575 | 24,425 | 0 | 25,000 | — | — | 5,750,000 | 575 | 24,425 | — | 25,000 | ||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | 0 | 0 | (1,000 | ) | (1,000 | ) | — | — | — | — | — | (1,000 | ) | (1,000 | ) | ||||||||||||||||||||||||||||||||||||||
Balance – March 31, 2021 | 0 | $ | 0 | 5,750,000 | $ | 575 | $ | 24,425 | $ | (1,000 | ) | $ | 24,000 | — | — | 5,750,000 | 575 | 24,425 | (1,000 | ) | 24,000 | |||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1 | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance – June 30, 2021 | — | $ | — | 5,750,000 | $ | 575 | $ | 24,425 | $ | (999 | ) | $ | 24,001 | |||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | For the Period from January 5, 2021 (Inception) through March 31, 2021 | Six Months Ended June 30, 2022 | For the Period from January 5, 2021 (Inception) through June 30, 2021 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net loss | $ | (1,179,868 | ) | $ | (1,000 | ) | $ | (1,741,347) | $ | (999) | ||||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||||||||||
Interest earned on marketable securities held in Trust Account | (23,312 | ) | 0 | (335,924) | — | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid expenses | 93,961 | 0 | 200,733 | — | ||||||||||||
Other receivable – related party | (5,000) | — | ||||||||||||||
Accrued expenses | 611,294 | 1,000 | 1,194,594 | 1,000 | ||||||||||||
Income taxes payable | 9,909 | — | ||||||||||||||
Net cash used in operating activities | (497,925 | ) | 0 | |||||||||||||
Net cash (used in) provided by operating activities | (677,035) | 1 | ||||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from issuance of Class B common stock to Sponsor | 0 | 25,000 | — | 25,000 | ||||||||||||
Advances from related party | 7,086 | — | ||||||||||||||
Proceeds from promissory note – related party | 300,000 | 94,937 | 400,000 | 162,637 | ||||||||||||
Payment of offering costs | 0 | (94,937 | ) | — | (162,637) | |||||||||||
Net cash provided by financing activities | 300,000 | 25,000 | 407,086 | 25,000 | ||||||||||||
Net Change in Cash | (197,925 | ) | 25,000 | (269,949) | 25,001 | |||||||||||
Cash – Beginning | 288,108 | 0 | 288,108 | — | ||||||||||||
Cash – Ending | $ | 90,183 | $ | 25,000 | $ | 18,159 | $ | 25,001 | ||||||||
Non-Cash Investing and Financing Activities: | ||||||||||||||||
Offering costs included in accrued offering costs | $ | 0 | $ | 115,009 | $ | — | $ | 169,054 | ||||||||
Remeasurement of Class A common stock to redemption value | $ | 34,916 | $ | — | ||||||||||||
Gross proceeds | $ | 228,078,680 | $ | 228,078,680 | ||||
Less: | ||||||||
Proceeds allocated to Public Warrants | (12,492,109 | ) | (12,492,109 | ) | ||||
Class A common stock issuance costs | (12,318,960 | ) | (12,318,960 | ) | ||||
Add: | ||||||||
Adjustment of carrying value to initial redemption value | 28,232,249 | 28,232,249 | ||||||
Class A common stock subject to possible redemption | $ | 231,499,860 | ||||||
Class A common stock subject to possible redemption, December 31, | $ | 231,499,860 | ||||||
Add: | ||||||||
Adjustment of carrying value to redemption value | — | |||||||
Class A common stock subject to possible redemption, March 31, 2022 | 231,499,860 | |||||||
Add: | ||||||||
Adjustment of carrying value to | 34,916 | |||||||
Class A common stock subject to possible redemption, June 30, 2022 | $231,534,776 |
Three Months Ended March 31, 2022 | For the Period from January 5, 2021 (Inception) Through March 31, 2021 | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | For the Period from January 5, 2021 (Inception) Through June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
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 loss per common share | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted net (loss) income per common share | ||||||||||||||||||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of net loss, as adjusted | $ | (943,894 | ) | $ | (235,974 | ) | $ | 0 | $ | (1,000 | ) | |||||||||||||||||||||||||||||||||||||
Allocation of net (loss) income, as adjusted | $ | (449,183 | ) | $ | (112,296 | ) | $ | — | $ | 1 | $ | (1,393,078 | ) | $ | (348,269 | ) | $ | — | $ | (999 | ) | |||||||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted weighted average shares outstanding | 22,807,868 | 5,701,967 | 0 | 5,000,000 | 22,807,868 | 5,701,967 | — | 5,000,000 | 22,807,868 | 5,701,967 | — | 5,000,000 | ||||||||||||||||||||||||||||||||||||
Basic and diluted net loss per ordinary share | $ | (0.04 | ) | $ | (0.04 | ) | $ | 0 | $ | (0.00 | ) | |||||||||||||||||||||||||||||||||||||
Basic and diluted net (loss) income per ordinary share | $ | (0.02 | ) | $ | (0.02 | ) | $ | — | $ | 0.00 | $ | (0.06 | ) | $ | (0.06 | ) | $ | — | $ | (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. |
Description | Level | March 31, 2022 | December 31, 2021 | Level | June 30, 2022 | December 31, 2021 | ||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Marketable securities held in Trust Account | 1 | $ | 231,529,974 | $ | 231,506,662 | 1 | $ | 231,842,586 | $ | 231,506,662 |
* | Filed herewith. |
** |
SOFTWARE ACQUISITION GROUP INC. III | ||||||
Date: August 12, 2022 | ||||||
By: | /s/ Jonathan S. Huberman | |||||
Name: | Jonathan S. Huberman | |||||
Title: | Chief Executive Officer and Chief Financial Officer | |||||
(Principal Executive and Financial Officer) |