☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934☒ March 31,June 30, 2021☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934☐ CARNEY TECHNOLOGY ACQUISITION CORP. II(Exact name of registrant as specified in its charter) 533 Airport BlvdSuite 400Burlingame, CA 94010(Address of Principal Executive Offices, including zip code)(619) 736-6855(Registrant’s telephone number, including area code)N/A(Former name, former address and former fiscal year, if changed since last report)
Symbol(s)
on which registered (§☐ Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer☒ Smaller reporting company☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☒ July 9,
Page | ||||||
Item 1. | ||||||
1 | ||||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | ||||||
16 | ||||||
Item 3. | ||||||
18 | ||||||
Item 4. | ||||||
18 | ||||||
Item 1. | 19 | |||||
Item 1A. | ||||||
19 | ||||||
Item 2. | ||||||
19 | ||||||
Item 3. | ||||||
19 | ||||||
Item 4. | ||||||
19 | ||||||
Item 5. | ||||||
19 | ||||||
Item 6. | ||||||
19 | ||||||
20 |
i
March 31, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 644,827 | $ | 835,208 | ||||
Prepaid expenses | 645,386 | 700,867 | ||||||
Total Current Assets | 1,290,213 | 1,536,075 | ||||||
Investment and marketable securities held in Trust Account | 402,542,675 | 402,507,131 | ||||||
TOTAL ASSETS | $ | 403,832,888 | $ | 404,043,206 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities - accrued expenses | $ | 83,799 | $ | 90,763 | ||||
Warrant liability | 11,384,834 | 17,831,667 | ||||||
Deferred underwriting fee payable | 15,137,500 | 15,137,500 | ||||||
TOTAL LIABILITIES | 26,606,133 | 33,059,930 | ||||||
Commitments and Contingencies | ||||||||
Class A common stock subject to possible redemption, 37,222,675 and 36,598,327 shares at $10.00 per share as of March 31, 2021 and December 31, 2020, respectively | 372,226,750 | 365,983,270 | ||||||
Stockholders’ Equity | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | — | — | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 3,927,325 and 4,551,673 shares issued and outstanding (excluding 37,222,675 shares and 36,598,327 subject to possible redemption) at March 31, 2021 and December 31, 2020, respectively. | 393 | 455 | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,062,500 shares issued and outstanding at March 31, 2021 and December 31, 2020 | 1,006 | 1,006 | ||||||
Additional paid-in capital | — | 5,843,734 | ||||||
Retained earnings/(Accumulated deficit) | 4,998,606 | (845,189 | ) | |||||
Total Stockholders’ Equity | 5,000,005 | 5,000,006 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 403,832,888 | $ | 404,043,206 |
June 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 465,183 | $ | 835,208 | ||||
Prepaid expenses | 534,667 | 700,867 | ||||||
Total Current Assets | 999,850 | 1,536,075 | ||||||
Investment and marketable securities held in Trust Account | 402,501,707 | 402,507,131 | ||||||
TOTAL ASSETS | $ | 403,501,557 | $ | 404,043,206 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities - accrued expenses | $ | 99,456 | $ | 90,763 | ||||
Warrant liability | 12,893,667 | 17,831,667 | ||||||
Deferred underwriting fee payable | 15,137,500 | 15,137,500 | ||||||
TOTAL LIABILITIES | 28,130,623 | 33,059,930 | ||||||
Commitments and Contingencies | 0 | 0 | ||||||
Class A common stock subject to possible redemption, 37,037,093 and 36,598,327 shares at $10.00 per share as of June 30, 2021 and December 31, 2020, respectively | 370,370,930 | 365,983,270 | ||||||
Stockholders’ Equity | ||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaNissued and outstanding | 0— | 0— | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 4,112,907 and 4,551,673 shares issued and outstanding (excluding 37,037,093 shares and 36,598,327 subject to possible redemption) at June 30, 2021 and December 31, 2020, respectively. | 411 | 455 | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,062,500 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 1,006 | 1,006 | ||||||
Additional paid-in capital | 1,456,118 | 5,843,734 | ||||||
Retained earnings/(Accumulated deficit) | 3,542,469 | (845,189 | ) | |||||
Total Stockholders’ Equity | 5,000,004 | 5,000,006 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 403,501,557 | $ | 404,043,206 | ||||
THREE MONTHS ENDED MARCH 31, 2021
Formation and operating costs | $ | 238,898 | ||
Loss from operations | (238,898 | ) | ||
Other income: | ||||
Interest earned on marketable securities held in Trust Account | 35,544 | |||
Change in fair value of warrant liabilities | 6,446,833 | |||
Other income | 6,482,377 | |||
Net income | $ | 6,243,479 | ||
Weighted average shares outstanding of Class A redeemable common stock | 40,250,000 | |||
Basic and diluted income per share, Class A redeemable common stock | $ | 0.00 | ||
Weighted average shares outstanding of Class A and B non-redeemable common stock | 10,962,500 | |||
Basic and diluted net income per share, Class A and B non-redeemable common stock | $ | 0.57 |
Three Ended June 30, | Six Months Ended June 30, | |||||||
2021 | 2021 | |||||||
Operating and formation costs | $ | 347,695 | $ | 586,593 | ||||
Loss from operations | (347,695 | ) | (586,593 | ) | ||||
Other income: | ||||||||
Interest earned on marketable securities held in Trust Account | 707 | 36,251 | ||||||
Change in fair value of warrant liabilities | (1,508,833 | ) | 4,938,000 | |||||
Other income (loss), net | (1,508,126 | ) | 4,974,251 | |||||
Income (Loss) before income taxes | (1,855,821 | ) | 4,387,685 | |||||
Benefit (Provision) for income taxes | 0— | 0— | ||||||
Net (loss) income | $ | (1,855,821 | ) | $ | 4,387,658 | |||
Weighted average shares outstanding, Class A redeemable common stock | 40,250,000 | 40,250,000 | ||||||
Basic and diluted income per share, Class A redeemable common stock | $ | 0.00 | $ | 0.00 | ||||
Weighted average shares outstanding, Class B non-redeemable common stock | 10,962,500 | 10,962,500 | ||||||
Basic and diluted income (loss) per share, Class Bnon-redeemable common stock | $ | (0.17 | ) | $ | 0.40 | |||
2
Class A Common Stock | Class B Common Stock | Additional Paid-in | Retained Earnings / (Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit) | Equity | ||||||||||||||||||||||
Balance – January 1, 2021 | 4,551,673 | $ | 455 | 10,062,500 | $ | 1,006 | $ | 5,843,734 | $ | (845,189 | ) | $ | 5,000,006 | |||||||||||||||
Change in value of Class A common stock subject to possible redemption | (624,348 | ) | (62 | ) | — | — | (5,843,734 | ) | (399,684 | ) | (6,243,480 | ) | ||||||||||||||||
Net income | — | — | — | — | — | 6,243,479 | 6,243,479 | |||||||||||||||||||||
Balance – March 31, 2021 | 3,927,325 | $ | 393 | 10,062,500 | $ | 1,006 | $ | — | $ | 4,998,606 | $ | 5,000,005 |
Class A Common Stock | Class B Common Stock | Additional Paid-in | Retained Earnings / (Accumulated | Total Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit) | Equity | ||||||||||||||||||||||
Balance – January 1, 202 1 audited | 4,551,673 | $ | 455 | 10,062,500 | $ | 1,006 | $ | 5,843,734 | $ | (845,189 | ) | $ | 5,000,006 | |||||||||||||||
Change in value of Class A common stock subject to possible redemption | (624,348 | ) | (62 | ) | — | — | (5,843,734 | ) | (399,684 | ) | (6,243,480 | ) | ||||||||||||||||
Net income | — | — | — | — | — | 6,243,479 | 6,243,479 | |||||||||||||||||||||
Balance – March 31, 2021 | 3,927,325 | $ | 393 | 10,062,500 | $ | 1,006 | $ | — | $ | 4,998,606 | $ | 5,000,005 | ||||||||||||||||
Change in value of Class A common stock subject to possible redemption | 185,582 | 18 | — | — | 1,456,118 | 399,684 | 1,855,820 | |||||||||||||||||||||
Net income (loss) | — | — | — | — | — | (1,855,821 | ) | (1,855,821 | ) | |||||||||||||||||||
Balance – June 30, 2021 | 4,112,907 | $ | 411 | 10,062,500 | $ | 1,006 | $ | 1,456,118 | $ | 3,542,469 | $ | 5,000,004 | ||||||||||||||||
3
THREE
Cash Flows from Operating Activities: | ||||
Net income | $ | 6,243,479 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Interest earned on marketable securities held in Trust Account | (35,544 | ) | ||
Change in fair value of warrant liabilities | (6,446,833 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 55,481 | |||
Accrued expenses | (6,964 | ) | ||
Net cash used in operating activities | (190,381 | ) | ||
Net Change in Cash | (190,381 | ) | ||
Cash – Beginning of period | 835,208 | |||
Cash – End of period | $ | 644,827 | ||
Non-Cash financing activities: | ||||
Change in value of Class A common stock subject to possible redemption | $ | 6,243,480 |
Cash Flows from Operating Activities: | ||||
Net income | $ | 4,387,658 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Interest earned on marketable securities held in Trust Account | (36,251 | ) | ||
Change in fair value of warrant liabilities | (4,938,000 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 166,200 | |||
Accrued expenses | 8,693 | |||
Net cash used in operating activities | (411,700 | ) | ||
Cash Flows from Investing Activities: | ||||
Cash withdrawn from Trust Account to pay franchise taxes | 41,675 | |||
Net cash provided by investing activities | 41,675 | |||
Net Change in Cash | (370,025 | ) | ||
Cash – Beginning of period | 835,208 | |||
Cash – End of period | $ | 465,183 | ||
Non-Cash financing activities: | ||||
Change in value of Class A common stock subject to possible redemption | $ | 4,387,660 | ||
MARCH 31,
MARCH 31,
MARCH 31,
sheets.
MARCH 31,
MARCH 31,
Three Months Ended March 31, 2021 | ||||
Redeemable Class A Common Stock | ||||
Numerator: Earnings allocable to Redeemable Class A Common Stock | ||||
Interest Income | $ | 34,544 | ||
Less: Income and Franchise Taxes | (34,544 | ) | ||
Net Earnings | $ | — | ||
Denominator: Weighted Average Redeemable Class A Common Stock | ||||
Redeemable Class A Common Stock, Basic and Diluted | 40,250,000 | |||
Earnings/Basic and Diluted Redeemable Class A Common Stock | $ | 0.00 | ||
Non-Redeemable Class A and B Common Stock | ||||
Numerator: Net income minus Redeemable Net Earnings | ||||
Net Income | $ | 6,243,479 | ||
Redeemable Net Earnings | — | |||
Non-Redeemable Net Income | $ | 6,243,479 | ||
Denominator: Weighted Average Non-Redeemable Class A and B Common Stock | ||||
Non-Redeemable Class A and B Common Stock, Basic and Diluted (1) | 10,962,500 | |||
Income/Basic and Diluted Non-Redeemable Class A and B Common Stock | $ | 0.57 |
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||||||
Redeemable Class A Common Stock | ||||||||||||
Numerator: Earnings allocable to Redeemable Class A Common Stock | ||||||||||||
Interest Income | $ | 707 | $ | 36,251 | ||||||||
Less: Income and Franchise Tax | (707 | ) | (36,251 | ) | ||||||||
Net Earnings (loss) | $ | 0 | $ | 0 | ||||||||
Denominator: Weighted Average Redeemable Class A Common Stock | ||||||||||||
Redeemable Class A Common Stock, Basic and Diluted | 40,250,000 | 40,250,000 | ||||||||||
Earnings/Basic and Diluted Redeemable Class A Common Stock | $ | 0.00 | $ | 0.00 | ||||||||
Non-Redeemable Class A and B Common Stock | ||||||||||||
Numerator: Net income minus Redeemable Net Earnings | ||||||||||||
Net Income (loss) | $ | (1,855,821 | ) | $ | 4,387,658 | |||||||
Redeemable Net Earnings | 0 | 0 | ||||||||||
Non-Redeemable Net Income (Loss) | $ | (1,855,821 | ) | $ | 4,387,658 | |||||||
Denominator: Weighted Average Non-Redeemable Class A and B Common Stock | ||||||||||||
Non-Redeemable Class A and B Common Stock, Basic and Diluted(1) | 10,962,500 | 10,962,500 | ||||||||||
Income/Basic and Diluted Non-Redeemable Class A and B CommonStock | $ | (0.17 | ) | $ | 0.040 | |||||||
(1) | The weighted average non-redeemable common stock for the three and six months ended |
sheet,sheets, primarily due to their short-term nature, except for the Warrants (see Note 9). (“
CARNEY TECHNOLOGY ACQUISITION CORP. II
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 2021
(Unaudited)
MARCH 31,
11
MARCH 31,
MARCH 31,
MARCH 31,
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 |
withdrew $
Held-To-Maturity | Amortized Cost | Gross Holding Gain | Fair Value | |||||||||||
December 31, 2020 | U.S. Treasury Securities (Matured on 03/18/2021) 1 | $ | 201,256,191 | $ | 1,629 | $ | 201,257,820 | |||||||
1 The matured securities were reinvested in a U.S. Treasury Securities Money Market Fund
1 | The matured securities were reinvested in a U.S. Treasury Securities Money Market Fund |
Description | Level | March 31, 2021 | December 31, 2020 | |||||||||
Assets: | ||||||||||||
Investments – U.S. Treasury Securities Money Market Fund | 1 | $ | 402,542,675 | $ | 201,250,937 | |||||||
Investments – U.S. Treasury Securities (Matured on 03/18/2021) | 1 | $ | — | $ | 201,257,820 | |||||||
Liabilities: | ||||||||||||
Warrant Liability – Public Warrants | 1 | $ | 11,135,834 | $ | 17,441,667 | |||||||
Warrant Liability – Placement Warrants | 3 | $ | 249,000 | $ | 390,000 | |||||||
Description | Level | June 30, 2021 | December 31, 2020 | |||||||||
Assets: | ||||||||||||
Investments – U.S. Treasury Securities Money Market Fund | 1 | $ | 402,501,707 | $ | 201,250,937 | |||||||
Investments – U.S. Treasury Securities (Matured on 03/18/2021) | 1 | $ | — | $ | 201,257,820 | |||||||
Liabilities: | ||||||||||||
Warrant Liability – Public Warrants | 1 | $ | 12,611,667 | $ | 17,441,667 | |||||||
Warrant Liability – Placement Warrants | 3 | $ | 282,000 | $ | 390,000 |
MARCH 31,
Input: | December 31, 2020 | |||
Risk-free interest rate | 0.43 | % | ||
Expected term (years) | 5.5 | |||
Expected volatility | 20.0 | % | ||
Exercise price | $ | 11.50 | ||
Implied Fair Value of Class A common stock | $ | 9.83 |
Input: | June 30, 2021 | December 31, 2020 | ||||||
Risk-free interest rate | 0.83 | % | 0.43 | % | ||||
Expected term (years) | 5.5 | 5.5 | ||||||
Expected volatility | 16.9 | % | 20.0 | % | ||||
Exercise price$ | $ | 11.50 | $ | 11.50 | ||||
Implied Fair Value of Class A common stock | $ | 9.71 | $ | 9.83 |
Private Placement | Public | Warrant Liabilities (Level 3) | ||||||||||
Fair value as of January 1, 2021 | $ | 390,000 | $ | 17,441,667 | $ | 17,831,667 | ||||||
Transfers to Level 1 | — | (17,441,667 | ) | (17,441,667 | ) | |||||||
Change in fair value | (141,000 | ) | — | (141,000 | ) | |||||||
Fair value as of March 31, 2021 | $ | 249,000 | $ | — | $ | 249,000 |
Private Placement | Public | Warrant Liabilities (Level 3) | ||||||||||
Fair value as of January 1, 2021 | $ | 390,000 | $ | 17,441,667 | $ | 17,831,667 | ||||||
Transfers to Level 1 | 0 | (17,441,667 | ) | (17,441,667 | ) | |||||||
Change in fair value | (108,000 | ) | 0 | (108,000 | ) | |||||||
Fair value as of June 30, 2021 | $ | 282,000 | $ | 0 | $ | 282,000 | ||||||
$347,695.
No. | Description of Exhibit | |
31.1* | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1** | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS* | XBRL Instance Document | |
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.SCH* | XBRL Taxonomy Extension Schema Document | |
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB* | XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. | |
** | Furnished. |
CARNEY TECHNOLOGY ACQUISITION CORP. II | ||||||
Date: | ||||||
By: | /s/ David Roberson | |||||
Name: | David Roberson | |||||
Title: | Chief Executive Officer, Chief Financial Officer and Chairman of the Board of Directors | |||||
(Principal Executive Officer and Principal Financial Officer) |
20