☒ | 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 | 85-2609730 | |
(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 Common Stock and one-half of one redeemable warrant | ASAXU | The Nasdaq Stock Market LLC | ||
Common Stock, par value $0.0001 per share | ASAX | The Nasdaq Stock Market LLC | ||
Redeemable warrants, exercisable for shares of Common Stock at an exercise price of $11.50 per share | ASAXW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
ASTREA ACQUISITION CORP.
FORM
TABLE OF CONTENTS
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March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Current assets | ||||||||||||||||
Cash | $ | 30,094 | $ | 67,689 | $ | 180,958 | $ | 67,689 | ||||||||
Prepaid expenses | 255,933 | 344,659 | 92,227 | 344,659 | ||||||||||||
Total Current Assets | 286,027 | 412,348 | 273,185 | 412,348 | ||||||||||||
Cash and marketable securities held in Trust Account | 172,625,112 | 172,561,080 | 172,719,634 | 172,561,080 | ||||||||||||
TOTAL ASSETS | $ | 172,911,139 | $ | 172,973,428 | $ | 172,992,819 | $ | 172,973,428 | ||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||
Current liabilities | ||||||||||||||||
Accrued expenses | $ | 349,884 | $ | 459,988 | $ | 459,988 | $ | 459,988 | ||||||||
Promissory note – related party | 1,140,000 | 750,000 | ||||||||||||||
Related party loans | 1,200,000 | 750,000 | ||||||||||||||
Total Current Liabilities | 1,489,884 | 1,209,988 | 1,659,988 | 1,209,988 | ||||||||||||
Warrant liabilities | 40,114 | 342,190 | 19,166 | 342,190 | ||||||||||||
Total Liabilities | 1,529,998 | 1,552,178 | 1,679,154 | 1,552,178 | ||||||||||||
Commitments | 0 | 0 | ||||||||||||||
Common stock subject to possible redemption; $0.0001 par value; 17,250,000 shares at redemption value as of March 31, 2022 and December 31, 2021 | 172,500,000 | 172,500,000 | ||||||||||||||
Common stock subject to possible redemption; $0.0001 par value; 17,250,000 shares at redemption value as of June 30, 2022 and December 31, 2021 | 172,500,000 | 172,500,000 | ||||||||||||||
Stockholders’ Deficit | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding | — | — | ||||||||||||||
Common stock, $0.0001 par value; 50,000,000 shares authorized; 4,787,500 shares issued and outstanding (excluding 17,250,000 shares subject to possible redemption) as of March 31, 2022 and December 31, 2021 | 479 | 479 | ||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | — | — | ||||||||||||||
Common stock, $0.0001 par value; 50,000,000 shares authorized; 4,787,500 shares issued and outstanding (excluding 17,250,000 shares subject to possible redemption) as of June 30, 2022 and December 31, 2021 | 479 | 479 | ||||||||||||||
Additional paid-in capital | 554,160 | 554,160 | 554,160 | 554,160 | ||||||||||||
Accumulated deficit | (1,673,498 | ) | (1,633,389 | ) | (1,740,974 | ) | (1,633,389 | ) | ||||||||
Total Stockholders’ Deficit | (1,118,859 | ) | (1,078,750 | ) | (1,186,335 | ) | (1,078,750 | ) | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 172,911,139 | $ | 172,973,428 | $ | 172,992,819 | $ | 172,973,428 | ||||||||
Three Months Ended March 31, | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating and formation costs | $ | 406,217 | $ | 220,267 | $ | 353,232 | $ | 289,297 | $ | 759,449 | $ | 509,564 | ||||||||||||
Loss from operations | (406,217 | ) | (220,267 | ) | (353,232 | ) | (289,297 | ) | (759,449 | ) | (509,564 | ) | ||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Interest earned on marketable securities held in Trust Account | 44,835 | 10,390 | 406,983 | 19,301 | 451,818 | 29,691 | ||||||||||||||||||
Unrealized gain on marketable securities held in Trust Account | 19,197 | — | ||||||||||||||||||||||
Interest income – bank | — | 6 | — | 6 | ||||||||||||||||||||
Unrealized loss on marketable securities held in Trust Account | (142,175 | ) | — | (122,978 | ) | — | ||||||||||||||||||
Change in fair value of warrant liability | 302,076 | 52,250 | 20,948 | (21,375 | ) | 323,024 | 30,875 | |||||||||||||||||
Change in fair value of over-allotment option liability | 0— | 134,105 | — | — | — | 134,105 | ||||||||||||||||||
Transaction costs associated with Initial Public Offering | 0— | (17,428 | ) | — | — | — | (17,428 | ) | ||||||||||||||||
Total other income, net | 366,108 | $ | 179,317 | |||||||||||||||||||||
Total other income (expense), net | 285,756 | (2,068 | ) | 651,864 | 177,249 | |||||||||||||||||||
Loss before provision for income taxes | (67,476 | ) | (291,365 | ) | (107,585 | ) | (332,315 | ) | ||||||||||||||||
Net loss | $ | (40,109 | ) | $ | (40,950 | ) | $ | (67,476 | ) | $ | (291,365 | ) | $ | (107,585 | ) | $ | (332,315 | ) | ||||||
Basic and diluted weighted average shares outstanding, Common stock | 22,037,500 | $ | 13,795,417 | 22,037,500 | 22,037,500 | 22,037,500 | 17,939,227 | |||||||||||||||||
Basic and diluted net loss per share, Common stock | $ | (0.00 | ) | $ | (0.00 | ) | $ | 0.00 | $ | (0.01 | ) | $ | 0.00 | $ | (0.02 | ) | ||||||||
Common Stock | Additional Paid in Capital | Accumulated Deficit | Total Stockholders’ Deficit | Common Stock | Additional Paid in | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||||||||||||||
Balance – January 1, 2022 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (1,633,389 | ) | $ | (1,078,750 | ) | 4,787,500 | $ | 479 | $ | 554,160 | $ | (1,633,389 | ) | $ | (1,078,750 | ) | ||||||||||||||||||
Net loss | — | — | — | (40,109 | ) | (40,109 | ) | — | — | — | (40,109 | ) | (40,109 | ) | ||||||||||||||||||||||||||
Balance – March 31, 2022 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (1,673,498 | ) | $ | (1,118,859 | ) | 4,787,500 | 479 | 554,160 | (1,673,498 | ) | (1,118,859 | ) | ||||||||||||||||||||||
Net loss | — | — | — | (67,476 | ) | (67,476 | ) | |||||||||||||||||||||||||||||||||
Balance – June 30, 2022 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (1,740,974 | ) | $ | (1,186,335 | ) | |||||||||||||||||||||||||||||
Common Stock | Additional Paid in Capital | Accumulated Deficit | Total Stockholders’ Equity | Common Stock | Additional Paid in | Accumulated | Total Stockholders’ | |||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||||||||||||||
Balance – January 1, 2021 | 4,312,500 | $ | 431 | $ | 24,569 | $ | (627 | ) | $ | 24,373 | 4,312,500 | $ | 431 | $ | 24,569 | $ | (627 | ) | $ | 24,373 | ||||||||||||||||||||
Accretion of Common Stock to redemption value | — | 0— | (11,262,350 | ) | 0— | (11,262,350 | ) | |||||||||||||||||||||||||||||||||
Fair value of Public Warrants | — | — | 6,780,799 | — | 6,780,799 | |||||||||||||||||||||||||||||||||||
Sale of 475,000 Private Placement Units | 475,000 | 48 | 4,562,327 | 0— | 4,562,942 | 475,000 | 48 | 4,562,894 | — | 4,562,942 | ||||||||||||||||||||||||||||||
Fair value of Public Warrants | — | — | 6,780,799 | 0— | 6,780,799 | |||||||||||||||||||||||||||||||||||
Elimination of over-allotment option liability | — | — | 614,257 | — | 614,257 | |||||||||||||||||||||||||||||||||||
Allocated value of transaction costs to warrants | — | — | (165,442 | ) | 0— | (165,442 | ) | — | — | (165,442 | ) | — | (165,442 | ) | ||||||||||||||||||||||||||
Elimination of over-allotment option liability | — | — | 614,257 | 0— | 614,257 | |||||||||||||||||||||||||||||||||||
Accretion of common stock to redemption value | — | — | (11,262,350 | ) | — | (11,262,350 | ) | |||||||||||||||||||||||||||||||||
Net loss | — | — | — | (40,950 | ) | (40,950 | ) | — | — | — | (40,950 | ) | (40,950 | ) | ||||||||||||||||||||||||||
Balance – March 31, 2021 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (41,577 | ) | $ | 513,062 | 4,787,500 | 479 | 554,160 | (41,577 | ) | 513,062 | ||||||||||||||||||||||||
Net loss | — | — | — | (291,365 | ) | (291,365 | ) | |||||||||||||||||||||||||||||||||
Balance – June 30, 2021 | 4,787,500 | $ | 479 | $ | 554,160 | $ | (332,942 | ) | $ | 221,697 | ||||||||||||||||||||||||||||||
Three Months Ended March 31, | Six months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net loss | $ | (40,109 | ) | $ | (40,950 | ) | $ | (107,585 | ) | $ | (332,315 | ) | ||||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||||||||
Change in fair value of warrant liabilities | (302,076 | ) | (52,250 | ) | (323,024 | ) | (30,875 | ) | ||||||||
Interest earned on marketable securities held in Trust Account | (44,835 | ) | (10,390 | ) | (451,818 | ) | (29,691 | ) | ||||||||
Unrealized gain on marketable securities held in Trust Account | (19,197 | ) | 0— | |||||||||||||
Unrealized gain on marketable securities held in Trust Accountloss | 122,978 | — | ||||||||||||||
Change in fair value of over-allotment option liability | 0— | (134,105 | ) | — | (134,105 | ) | ||||||||||
Transaction costs incurred in connection with Initial Public Offering | 0— | 17,428 | — | 17,428 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid expenses | 88,726 | (840,249 | ) | 252,432 | (708,607 | ) | ||||||||||
Accrued expenses | (110,104 | ) | 89,200 | — | 142,459 | |||||||||||
Net cash used in operating activities | (427,595 | ) | (971,316 | ) | (507,017 | ) | (1,075,706 | ) | ||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Investment in cash into Trust Account | 0— | (172,500,000 | ) | — | (172,500,000 | ) | ||||||||||
Cash withdrawn from Trust Account to pay franchise and income taxes | 170,286 | — | ||||||||||||||
Net cash used in investing activities | 0— | (172,500,000 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 170,286 | (172,500,000 | ) | |||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from sale of Units, net of underwriting discounts | 0— | 169,050,000 | — | 169,050,000 | ||||||||||||
Proceeds from sale of Private Placement Units | 0— | 4,750,000 | — | 4,750,000 | ||||||||||||
Proceeds from promissory note – related party | 390,000 | 350,000 | 450,000 | 350,000 | ||||||||||||
Repayment of promissory note – related party | 0— | (85,302 | ) | — | (85,302 | ) | ||||||||||
Payment of offering costs | 0— | (355,934 | ) | — | (355,934 | ) | ||||||||||
Net cash provided by financing activities | 390,000 | 173,708,764 | 450,000 | 173,708,764 | ||||||||||||
Net Change in Cash | (37,595 | ) | 237,448 | 113,269 | 133,058 | |||||||||||
Cash – Beginning of period | 67,689 | 0— | 67,689 | — | ||||||||||||
Cash – End of period | $ | 30,094 | $ | 237,448 | $ | 180,958 | $ | 133,058 | ||||||||
Non-cash investing and financing activities: | ||||||||||||||||
Initial Classification of Warrant Liability | $ | 0— | $ | 187,625 | $ | — | $ | 187,625 | ||||||||
Gross proceeds | $ | 172,500,000 | ||
Less: | ||||
Proceeds allocated to Public Warrants | (6,780,799 | ) | ||
Common stock issuance costs | (3,733,189 | ) | ||
Overallotment Liability | (748,362 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | 11,262,350 | |||
Common stock subject to possible redemption | $ | 172,500,000 |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Basic and diluted net loss per common stock | ||||||||
Numerator: | ||||||||
Allocation of net loss, as adjusted | $ | (40,109 | ) | $ | (40,950 | ) | ||
Denominator: | ||||||||
Basic and diluted weighted average shares outstanding | 22,037,500 | 13,795,417 | ||||||
Basic and diluted net loss per common stock | $ | (0.00 | ) | $ | (0.00 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Basic and diluted net loss per common stock | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net loss, as adjusted | $ | (67,476 | ) | $ | (291,365 | ) | $ | (107,585 | ) | $ | (332,315 | ) | ||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average shares outstanding | 22,037,500 | 22,037,500 | 22,037,500 | 17,939,227 | ||||||||||||
Basic and diluted net loss per common stock | $ | 0.00 | $ | (0.01 | ) | 0.00 | (0.02 | ) |
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 | $ | 172,625,112 | $ | 172,561,080 | 1 | $ | 172,719,634 | $ | 172,561,080 | ||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Warrant Liability – Private Warrants | 3 | $ | 40,114 | $ | 342,190 | 3 | $ | 19,166 | $ | 342,190 |
Input | December 31, 2021 | March 31, 2022 | December 31, 2021 | June 30, 2022 | ||||||||||||
Risk-free interest rate | 1.18 | % | 2.44 | % | 1.18 | % | 2.97 | % | ||||||||
Effective expiration date (1) | 6/23/2026 | 6/23/2026 | 6/23/2026 | 12/14/2025 | ||||||||||||
Dividend yield | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
Expected volatility | 10.6 | % | 4.8 | % | 10.6 | % | 3.6 | % | ||||||||
Exercise price | $ | 11.50 | $ | 11.50 | $ | 11.50 | $ | 11.50 | ||||||||
Unit Price | $ | 9.88 | $ | 9.77 | $ | 9.88 | $ | 9.78 | ||||||||
Probability of De-SPAC transaction | 75 | % | 90 | % | 75 | % | 60 | % |
(1) | The effective expiration date equals the probability-weighted average between a 2.0 year life of the warrants in the event there is no de-SPAC transaction and the contractual life if a transaction is closed. |
Private Warrant Liability | ||||
Fair value as of December 31, 2021 | $ | 342,190 | ||
Change in fair value | (20,948 | ) | ||
Fair value as of June 30, 2022 | $ | 19,166 | ||
Private Warrant Liability | ||||
Fair value as of December 31, 2021 | $ | 342,190 | ||
Change in fair value | (302,076 | ) | ||
Fair value as of March 31, 2022 | $ | 40,114 | ||
Overallotment Option | ||||
Fair value as of August 11, 2020 | $ | |||
Fair value at issuance February 8, 2021 | 748,362 | |||
Change in fair value February 18, 2021 | (134,105 | ) | ||
Elimination of overallotment liability February 18, 2021 | (614,257 | ) | ||
Fair Value at June 30, 2021 | $ | — | ||
PART II—OTHER INFORMATION
Item 1A. Risk Factors
As of the date of this Quarterly Report, there have been no material changes with respect to those risk factors previously disclosed in our Annual Report on Form
We may adversely affect our business, including our ability to negotiate and complete our Business Combination and results of operations.
On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (H.R. 5376) (the “IRA”), which, among other things, imposes a 1% excise tax on any domestic corporation that repurchases its stock after December 31, 2022 (the “Excise Tax”). The Excise Tax is imposed on the fair market value of the repurchased stock, with certain exceptions. Because we are a Delaware corporation and regulations enacted by national, regional and local governments. In particular,our securities will trade on Nasdaq following the date of this prospectus, we will be requireda “covered corporation” within the meaning of the IRA following this offering. While not free from doubt, absent any further guidance from Congress, the Excise Tax may apply to comply with certain SEC and other legal requirements. Compliance with, and monitoringany redemptions of applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our business, investments and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business,common stock after December 31, 2022, including our ability to negotiate and complete our Business Combination and results of operations.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
On February 8, 2021, we consummated the Initial Public Offering of 15,000,000 Units. The Units were sold at an offering price of $10.00 per unit, generating total gross proceeds of $150,000,000. EarlyBirdCapital, Inc. acted as sole book-running manager of the Initial Public Offering. The securities in the offering were registered under the Securities Act on registration statement on Form
Simultaneous with the consummation of the Initial Public Offering, the Sponsor consummated the private placement of an aggregate of 430,000 Units at a price of $10.00 per Private Unit, generating total proceeds of $4,300,000. Each Private Unit consists of one share of common stock (“Private Share”) and
The Private Warrants are identical to the warrants underlying the Units sold in the Initial Public Offering, except that the Private Warrants are not transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.
On February 18, 2021, the underwriters exercised their over-allotment option in full, resulting in the sale of an additional 2,250,000 Units for gross proceeds of $22,500,000, less the underwriters’ discount of $450,000. In connection with the underwriters’ exercise of their over-allotment option, the Company also consummated the sale of an additional 45,000 Private Units at $10.00 per Private Unit, generating total proceeds of $450,000. A total of $22,500,000 was deposited into the Trust Account.
Of the gross proceeds received from the Initial Public Offering, the exercise of the over-allotment option and the Private Units, an aggregate of $172,500,000 was placed in the Trust Account.
We paid a total of $3,450,000 in underwriting discounts and commissions and $466,059 for other costs and expenses related to the Initial Public Offering.
For a description of the use of the proceeds generated in our Initial Public Offering, see Part I, Item 2 of this Form
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Item 6. Exhibits
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form
* | Filed herewith. |
Legal to updated Exhibit and Printer will remove extra page
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SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
ASTREA ACQUISITION CORP. | ||||||
Date: | By: | /s/ Felipe Gonzalez | ||||
Name: | Felipe Gonzalez | |||||
Title: | Chief Executive Officer and Director | |||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ Jose Luis Cordova | ||||
Name: | Jose Luis Cordova | |||||
Title: | Chief Financial Officer and Director | |||||
(Principal Financial and Accounting Officer) |
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