UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarter ended ~~March 31,~~June 30, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-39857

EMPOWERMENT & INCLUSION CAPITAL I CORP.

(Exact Name of Registrant as Specified in Its Charter)

Delaware

13-4055608

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

340 Madison Avenue

New York, NY 10173

(Address of principal executive offices)

(212) 468-8655

(Issuer’s telephone number)

Securities registered pursuant to Section 12(b) of the Act:

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	EPWR.U	New York Stock Exchange
Class A common stock, par value $0.0001 per share	EPWR	New York Stock Exchange
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share	EPWR WS	New York Stock Exchange

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act ). Yes ☒ No ☐

As of ~~May 13,~~August 5, 2022, there were 27,600,000 shares of Class A common stock, ~~subject to possible redemption,~~ $0.0001 par value per share, subject to possible redemption and 6,900,000 shares of Class B common stock, $0.0001 par value per share, issued and outstanding.

Table of Contents

EMPOWERMENT & INCLUSION CAPITAL I CORP.

FORM 10-Q FOR THE QUARTER ENDED ~~MARCH 31,~~JUNE 30, 2022

TABLE OF CONTENTS

	Page
Part I. Financial Information
Item 1. Financial Statements
Condensed Balance Sheets as of ~~March 31,~~June 30, 2022 (unaudited) and December 31, 2021	1
Condensed Statements of Operations for the three and six months ended ~~March 31,~~June 30, 2022 and 2021 (unaudited)	2
Condensed Statements of Changes in Stockholders’ Deficit for the three and six months ended ~~March 31,~~June 30, 2022 and 2021 (unaudited)	3
Condensed Statements of Cash Flows for the ~~three~~six months ended ~~March 31,~~June 30, 2022 and 2021 (unaudited)	4
Notes to Condensed Financial Statements (unaudited)	5
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosures About Market Risk	2627
Item 4. Controls and Procedures	2627
Part II. Other Information
Item 1. Legal Proceedings	28
Item 1A. Risk Factors	28
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 3. Defaults Upon Senior Securities	28
Item 4. Mine Safety Disclosures	28
Item 5. Other Information	28
Item 6. Exhibits	29
Part III. Signatures	30

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Interim Financial Statements.

EMPOWERMENT & INCLUSION CAPITAL I CORP.

CONDENSED BALANCE SHEETS

March 31, 2022

December 31, 2021

(Unaudited)

ASSETS

Current assets

Cash

$
250,483

$
98,035
Prepaid expenses

407,436

532,138
Total current assets

657,919

630,173

Investments held in Trust Account

276,051,303

276,026,697
TOTAL ASSETS

$
276,709,222

$
276,656,870

LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT




Current liabilities

Accrued expenses

$
244,054

$
473,362
Total current liabilities

244,054

473,362

Working Capital Promissory Notes

190,000

169,000
Deferred underwriting fee payable

9,660,000

9,660,000
Warrant liabilities

4,050,800

10,660,000
Total liabilities

14,144,854

20,962,362




Commitments and contingencies





Class A common stock subject to possible redemption 27,600,000 shares at $10.00 per share at March 31, 2022, and December 31, 2021

276,000,000

276,000,000


Stockholders’ deficit


Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding

—

—
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 6,900,000 shares issued and outstanding at March 31, 2022, and December 31, 2021

690

690
Stock subscription receivable from stockholders

(5,000)

(5,000)
Additional paid-in capital

—

—
Accumulated deficit

(13,431,322)

(20,301,182)
Total stockholders’ deficit

(13,435,632)

(20,305,492)
TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT

$
276,709,222

$
276,656,870


	June 30, 2022		December 31, 2021
	(Unaudited)
ASSETS
Current assets
Cash	$	16,025	$	98,035
Prepaid expenses		314,402		532,138
Total current assets		330,427		630,173

Investments held in Trust Account		276,401,897		276,026,697
TOTAL ASSETS	$	276,732,324	$	276,656,870

LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT
Current liabilities
Accrued expenses	$	220,490	$	473,362
Income taxes payable		43,842		—
Total current liabilities		264,332		473,362

Working Capital Promissory Notes		80,000		169,000
Deferred underwriting fee payable		9,660,000		9,660,000
Warrant liabilities		1,705,600		10,660,000
Total liabilities		11,709,932		20,962,362

Commitments and contingencies

Class A common stock subject to possible redemption 27,600,000 shares at approximately $10.00 per share at June 30, 2022, and December 31, 2021		276,061,751		276,000,000

Stockholders’ deficit
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding		—		—
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 6,900,000 shares issued and outstanding at June 30, 2022, and December 31, 2021		690		690
Stock subscription receivable from stockholders		(5,000)		(5,000)
Additional paid-in capital		—		—
Accumulated deficit		(11,035,049)		(20,301,182)
Total stockholders’ deficit		(11,039,359)		(20,305,492)
TOTAL LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT	$	276,732,324	$	276,656,870

The accompanying notes are an integral part of ~~the~~these unaudited condensed financial statements.

Table of Contents

EMPOWERMENT & INCLUSION CAPITAL I CORP.

CONDENSED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

March 31,

2022

2021
Operating and formation costs

$
367,946

$
337,047
Loss from operations

(367,946)

(337,047)

Other income (expense):

Interest earned on investments held in Trust Account

24,606

5,898
Transaction costs attributable to Warrant liabilities

—

(633,329)
Change in fair value of Warrant liabilities

6,609,200

3,600,400
Change in fair value of Working Capital Promissory Notes

604,000

—
Total other income, net

7,237,806

2,972,969

Net income

$
6,869,860

$
2,635,922

Basic and diluted weighted average shares outstanding of Class A common stock

27,600,000

23,960,440
Basic and diluted net income per share, Class A common stock

$
0.20

$
0.09

Basic and diluted weighted average shares outstanding of Class B common stock

6,900,000

6,781,319
Basic and diluted net income per share, Class B common stock

$
0.20

$
0.09


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Operating and formation costs	$	303,928	$	305,498	$	671,874	$	642,545
Loss from operations		(303,928)		(305,498)		(671,874)		(642,545)

Other income (expense):
Interest earned on investments held in Trust Account		350,594		6,883		375,200		12,781
Transaction costs attributable to Warrant liabilities		—		—		—		(633,329)
Change in fair value of Warrant liabilities		2,345,200		(3,387,200)		8,954,400		213,200
Change in fair value of Working Capital Promissory Notes		110,000		—		714,000		—
Other income (expense), net		2,805,794		(3,380,317)		10,043,600		(407,348)

Income (Loss) before provision for income taxes		2,501,866		(3,685,815)		9,371,726		(1,049,893)
Provision for income taxes		(43,842)		—		(43,842)		—
Net income (loss)	$	2,458,024	$	(3,685,815)	$	9,327,884	$	(1,049,893)

Basic and diluted weighted average shares outstanding of Class A common stock		27,600,000		27,600,000		27,600,000		25,780,220
Basic and diluted net income (loss) per share, Class A common stock	$	0.07	$	(0.11)	$	0.27	$	(0.03)
Basic and diluted weighted average shares outstanding of Class B common stock		6,900,000		6,900,000		6,900,000		6,840,659
Basic and diluted net income (loss) per share, Class B common stock	$	0.07	$	(0.11)	$	0.27	$	(0.03)

The accompanying notes are an integral part of ~~the~~these unaudited condensed financial statements.

Table of Contents

EMPOWERMENT & INCLUSION CAPITAL I CORP.

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED ~~MARCH 31,~~JUNE 30, 2022

Stock

Subscription

Class B

Receivable

Additional

Total

Common Stock

from

Paid-in

Accumulated

Stockholders’


Shares

Amount

Stockholder

Capital

Deficit

Deficit
Balance — January 1, 2022

6,900,000

$
690

$
(5,000)

$
—

$
(20,301,182)

$
(20,305,492)

Net income

—

—

—

—

6,869,860

6,869,860

Balance – March 31, 2022

6,900,000

$
690

$
(5,000)

$
—

$
(13,431,322)

$
(13,435,632)


				Stock
				Subscription
	Class B			Receivable		Additional				Total
	Common Stock			from		Paid-in		Accumulated		Stockholders’
	Shares	Amount		Stockholder		Capital		Deficit		Deficit
Balance — January 1, 2022	6,900,000	$	690	$	(5,000)	$	—	$	(20,301,182)	$	(20,305,492)

Net income	—		—		—		—		6,869,860		6,869,860

Balance - March 31, 2022	6,900,000	$	690	$	(5,000)	$	—	$	(13,431,322)	$	(13,435,632)

Accretion of Class A common stock subject to redemption	—		—		—		—		(61,751)		(61,751)

Net income	—		—		—		—		2,458,024		2,458,024

Balance – June 30, 2022	6,900,000	$	690	$	(5,000)	$	—	$	(11,035,049)	$	(11,039,359)

FOR THE THREE AND SIX MONTHS ENDED ~~MARCH 31,~~JUNE 30, 2021

Stock

Subscription

Class B

Receivable

Additional

Total

Common Stock

from

Paid-in

Accumulated

Stockholders’


Shares

Amount

Stockholder

Capital

Deficit

Equity(Deficit)
Balance — January 1, 2021

6,900,000

$
690

$
(5,000)

$
24,310

$
(3,936)

$
16,064

Accretion of Class A common stock subject to redemption

—

—

—

(1,904,310)

(24,128,547)

(26,032,857)

Sale of 7,520,000 Private Placement Warrants

—

—

—

1,880,000

—

1,880,000

Net income

—

—

—

—

2,635,922

2,635,922

Balance – March 31, 2021

6,900,000

$
690

$
(5,000)

$
—

$
(21,496,561)

$
(21,500,871)


				Stock
				Subscription
	Class B			Receivable		Additional				Total
	Common Stock			from		Paid-in		Accumulated		Stockholders’
	Shares	Amount		Stockholder		Capital		Deficit		Equity (Deficit)
Balance — January 1, 2021	6,900,000	$	690	$	(5,000)	$	24,310	$	(3,936)	$	16,064

Accretion of Class A common stock subject to redemption	—		—		—		(1,904,310)		(24,128,547)		(26,032,857)

Sale of 7,520,000 Private Placement Warrants	—		—		—		1,880,000		—		1,880,000

Net income	—		—		—		—		2,635,922		2,635,922

Balance - March 31, 2021	6,900,000	$	690	$	(5,000)	$	—	$	(21,496,561)	$	(21,500,871)

Net loss	—		—		—		—		(3,685,815)		(3,685,815)

Balance – June 30, 2021	6,900,000	$	690	$	(5,000)	$	—	$	(25,182,376)	$	(25,186,686)

The accompanying notes are an integral part of ~~the~~these unaudited condensed financial statements.

Table of Contents

EMPOWERMENT & INCLUSION CAPITAL I CORP.

CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Three Months Ended

March 31,

2022

2021
Cash flows from operating activities:


Net income

$
6,869,860

$
2,635,922
Adjustments to reconcile net income to net cash used in operating activities:

Change in fair value of Working Capital Promissory Notes

(604,000)

—
Change in fair value of Warrant liabilities

(6,609,200)

(3,600,400)
Transaction costs attributable to Warrant liabilities

—

633,329
Interest earned on investments held in Trust Account

(24,606)

(5,898)
Changes in operating assets and liabilities:

Prepaid expenses

124,702

(950,662)
Accrued expenses

(229,308)

110,071
Net cash used in operating activities

(472,552)

(1,177,638)

Cash flows from investing activities:

Investment of cash in Trust Account

—

(276,000,000)
Net cash used in investing activities

—

(276,000,000)


Cash flows from financing activities:


Proceeds from sale of Units, net of underwriting discounts paid

—

270,480,000
Proceeds from sale of Private Placement Warrants

—

7,520,000
Repayment of Promissory Notes – related party

—

(128,302)
Proceeds from Working Capital Promissory Notes

625,000

—
Payment of offering costs

—

(572,080)
Net cash provided by financing activities

625,000

277,299,618


Net change in cash

152,448

121,980
Cash – beginning of period

98,035

—
Cash – end of period

$
250,483

$
121,980

Non-cash investing and financing activities:

Offering costs included in accrued offering costs

$
—

$
84,196
Offering costs paid through promissory note

$
—

$
11,919
Deferred underwriting fee payable

$
—

$
9,660,000


	Six Months Ended
	June 30,
	2022		2021
Cash flows from operating activities:
Net income (loss)	$	9,327,884	$	(1,049,893)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Change in fair value of Working Capital Promissory Notes		(714,000)		—
Change in fair value of Warrant liabilities		(8,954,400)		(213,200)
Transaction costs attributable to Warrant liabilities		—		633,329
Interest earned on investments held in Trust Account		(375,200)		(12,781)
Changes in operating assets and liabilities:
Prepaid expenses		217,736		(808,021)
Accrued expenses		(252,872)		187,899
Income taxes payable		43,842		—
Net cash used in operating activities		(707,010)		(1,262,667)

Cash flows from investing activities:
Investment of cash in Trust Account		—		(276,000,000)
Net cash used in investing activities		—		(276,000,000)

Cash flows from financing activities:
Proceeds from sale of Units, net of underwriting discounts paid		—		270,480,000
Proceeds from sale of Private Placement Warrants		—		7,520,000
Repayment of Promissory Notes – related party		—		(128,302)
Proceeds from Working Capital Promissory Notes		625,000		—
Payment of offering costs		—		(572,080)
Net cash provided by financing activities		625,000		277,299,618

Net change in cash		(82,010)		36,951
Cash – beginning of period		98,035		—
Cash – end of period	$	16,025	$	36,951

Non-cash investing and financing activities:
Offering costs included in accrued offering costs	$	—	$	(84,196)
Offering costs paid through promissory note	$	—	$	11,919
Deferred underwriting fee payable	$	—	$	9,660,000

The accompanying notes are an integral part of ~~the~~these unaudited condensed financial statements.

Table of Contents

EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

Empowerment & Inclusion Capital I Corp. (the “Company”) was initially formed as a Delaware limited liability company on May 29, 1999 under the name of PHX Capital LLC. On September 17, 2020, the Company converted from a limited liability company to a Delaware C Corporation and changed its name to Empowerment & Inclusion Capital I Corp. The Company intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with 1 or more businesses (the “Initial Business Combination”).

The Company is not limited to a particular industry or sector for purposes of consummating an Initial Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.

As of ~~March 31,~~June 30, 2022, the Company had not commenced any operations. All activity through ~~March 31,~~June 30, 2022 relates to the Company’s formation, the initial public offering (“IPO”), which is described below, and subsequent to the IPO, public company-related activities for legal, financial reporting, accounting and auditing compliance and the identification of a target company for an Initial Business Combination. The Company will not generate any operating revenues until after the completion of an Initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest income from the proceeds derived from the IPO.

The registration statement for the Company’s IPO was declared effective on January 7, 2021. On January 12, 2021, the Company consummated the IPO of 27,600,000 units (the “Units”), which includes the full exercise by the underwriter of its over-allotment option in the amount of 3,600,000 Units, at $10.00 per Unit, generating gross proceeds of $276,000,000, which is described in Note 3. Each Unit consists of 1 share of Class A common stock (the “Public Shares”) and one-half of one redeemable warrant (each whole redeemable warrant, a “Public Warrant”).

Simultaneously with the closing of the IPO, the Company consummated the sale of 7,520,000 warrants (the “Private Placement Warrants” and together with the Public Warrants, the “Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to PNC Investment Capital Corp. (“PNCIC”), Jefferies Financial Group Inc. (“Jefferies” and together with PNCIC, the “Sponsors”) and the Company’s Chief Executive Officer (“CEO”), Harold Ford Jr., generating gross proceeds of $7,520,000, which is described in Note 4.

Transaction costs relating to the foregoing amounted to $16,316,186, consisting of $5,520,000 in cash underwriting fees, $9,660,000 and $415,804 of deferred underwriting and legal fees, respectively, with such deferred fees payable contingent upon the close of an Initial Business Combination, and $720,382 of other offering costs. During the year ended December 31, 2021, the Company paid $150,000 in settlement of the outstanding deferred legal fee.

Following the closing of the IPO on January 12, 2021, an amount of $276,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”), located in the United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting certain conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of an Initial Business Combination and (ii) the distribution of the funds held in the Trust Account, as described below.

Table of Contents

EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

The Company’s management has broad discretion with respect to the specific application of the net proceeds of the IPO and the sale of Private Placement Warrants, although substantially all net proceeds are intended to be applied generally toward consummating an Initial Business Combination. There is no assurance that the Company will be able to complete an Initial Business Combination successfully. The Company must complete one or more initial business combinations with one or more operating businesses or assets with a fair market value equal to at least 80% of the net assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the interest earned on the Trust Account). The Company will only complete an Initial Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act.

The Company will provide the holders of the outstanding Public Shares (the “Public Stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of an Initial Business Combination either (i) in connection with a stockholder meeting called to approve the Initial Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of an Initial Business Combination or conduct a tender offer will be made by the Company. The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.00 per Public Share, plus any pro rata interest then in the Trust Account, net of taxes payable). There will be no redemption rights upon the completion of an Initial Business Combination with respect to the Warrants.

The Company will only proceed with an Initial Business Combination if the Company has net tangible assets of at least $5,000,001 following any related redemptions and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Initial Business Combination. If a stockholder vote is not required by applicable law or stock exchange listing requirements and the Company does not decide to hold a stockholder vote for business or other reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing an Initial Business Combination. If, however, stockholder approval of the transaction is required by applicable law or stock exchange listing requirements, or the Company decides to obtain stockholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with an Initial Business Combination, the Sponsors have agreed to vote their Founder Shares (as defined in Note 5) and any Public Shares purchased by them during or after the IPO in favor of approving an Initial Business Combination. Additionally, each Public Stockholder may elect to redeem their Public Shares without voting, and if they do vote, irrespective of whether they vote for or against the proposed transaction.

Notwithstanding the foregoing, if the Company seeks stockholder approval of an Initial Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Certificate of Incorporation will provide that a Public Stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% of the Public Shares, without the prior consent of the Company.

The Sponsors have agreed (i) to waive their redemption rights with respect to the Founder Shares and Public Shares held by them in connection with the completion of an Initial Business Combination and (ii) not to propose an amendment to the Certificate of Incorporation (a) to modify the substance or timing of the Company’s obligation to allow redemptions in connection with a Business Combination or to redeem 100% of its Public Shares if the Company does not complete an Initial Business Combination within the Combination Period (as defined below) or (b) with respect to any other provision relating to stockholders’ rights or pre-business combination activity, unless the Company provides the Public Stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment.

Table of Contents

EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

The Company will have until January 12, 2023 to complete an Initial Business Combination (the “Combination Period”). If the Company has not completed an Initial Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to pay taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors (the “Board”), dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Warrants, which will expire worthless if the Company fails to complete an Initial Business Combination within the Combination Period.

The Sponsors have agreed to waive their liquidation rights with respect to the Founder Shares if the Company fails to complete an Initial Business Combination within the Combination Period. However, if the Sponsors acquired Public Shares in or after the IPO, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete an Initial Business Combination within the Combination Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 5) held in the Trust Account in the event that the Company does not complete an Initial Business Combination within the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the IPO price per Unit ($10.00).

In order to protect the amounts held in the Trust Account, the Sponsors have agreed to be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the trust assets, less taxes payable; provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to monies held in the Trust Account, nor will it apply to any claims under the Company’s indemnity of the underwriters of the IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsors will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsors will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except for the Company’s independent registered public accounting firm), prospective target businesses and other entities with which the Company does business execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.

Liquidity, Capital Resources and Going Concern

As of ~~March 31,~~June 30, 2022, the Company had ~~$250,483~~$16,025 in its operating bank account and working capital of ~~$463,749.~~$66,095. On July 8, 2022, working capital increased by $278,314 after the Company transferred a portion of the interest earned from the Trust Account to its operating account for Delaware franchise taxes paid since the IPO. In order to fund working capital deficiencies or finance transaction costs in connection with an Initial Business Combination, the Sponsors or an affiliate of the Sponsors, or certain of the Company’s officers and directors, may but are not obligated to loan the Company additional funds as may be required (the “Working Capital Loans”), of which up to $1,000,000 was committed by our Sponsors on January 7, 2021, when the Company issued convertible promissory notes in favor of the Sponsors pursuant to which the Company may borrow up to an aggregate principal amount of $1,000,000 for working capital (the “Working Capital Promissory Notes”) (see Note 5). As of ~~March 31,~~June 30, 2022 and December 31, 2021, the Company has drawn upon the Working Capital Promissory Notes totaling $1,000,000 and $375,000, with a fair value of ~~$190,000~~$80,000 and $169,000, respectively (see Note 9).

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EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2022

(Unaudited)

Combination is not completed, the Company may use a portion of the proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans.

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~~EMPOWERMENT & INCLUSION CAPITAL I CORP.~~

~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~

~~MARCH 31, 2022~~

~~(Unaudited)~~

The Company may raise additional capital through loans or additional investments from the Sponsors or its stockholders, officers, directors or third parties. The Company’s officers and directors and the Sponsors may but are not obligated to (except as described above), loan the Company funds, from time to time, in whatever amount they deem reasonable in their sole discretion, to meet the Company’s working capital needs. Based on the foregoing, the Company believes that it will have sufficient working capital and borrowing capacity from the Sponsors or an affiliate of the Sponsors, or certain of the Company’s officers and directors, to meet its needs through the earlier of the consummation of an Initial Business Combination or at least one year from the date that the unaudited condensed financial statements were issued.

In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2014-15, Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern, the Company has until January 12, 2023, to consummate an Initial Business Combination. It is uncertain that the Company will be able to consummate an Initial Business Combination by this time. If an Initial Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company. Management has determined that the liquidity condition described above and date for mandatory liquidation and subsequent dissolution raise substantial doubt about the Company’s ability to continue as a going concern. Management intends to complete an initial business combination before the mandatory liquidation date; however, it is uncertain whether management will succeed in doing so. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after January 12, 2023.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in unaudited condensed financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as filed with the SEC on March 9, ~~2022.~~2022 (the “Form 10-K”). The interim results for the three and six months ended ~~March 31,~~June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future periods.

Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

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EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company that is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of the unaudited condensed financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.

Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited condensed financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these unaudited condensed financial statements is the determination of the fair value of the Warrant liabilities and the Working Capital Promissory Notes. Accordingly, the actual results could differ significantly from those estimates.

Offering Costs

Offering costs consisted of legal, accounting and other expenses incurred through the balance sheet date that were directly related to the IPO. Offering costs amounted to $16,316,186, of which $15,682,857 was charged to temporary equity upon the completion of the IPO and $633,329 was expensed to the condensed statements of operations (see Note 1).

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did ~~not~~0t have any cash equivalents as of ~~March 31,~~June 30, 2022 and December 31, 2021.

Class A Common Stock Subject to Possible Redemption

The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in FASB Accounting Standards Codification (“ASC”) Topic 480, Distinguishing Liabilities from Equity (“ASC 480”). Class A common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ deficit. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, at ~~March 31,~~June 30, 2022 and December 31, 2021, Class A common stock subject to possible redemption is presented as temporary equity, outside of the stockholders’ deficit section of the Company’s condensed balance sheets.

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid in capital and accumulated deficit.

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EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

At ~~March 31,~~June 30, 2022 and December 31, 2021, the Class A common stock reflected in the condensed balance sheets is reconciled in the following table:


Gross proceeds	$	276,000,000	$	276,000,000
Less:
Proceeds Allocated to Public Warrants				(10,350,000)
Class A common stock issuance costs		(15,705,459)		(15,682,857)
Plus:
Accretion of carrying value to redemption value		15,705,459		26,032,857

Class A common stock subject to possible redemption	$	276,000,000
Class A common stock subject to possible redemption, December 31, 2021			$	276,000,000
Plus:
Accretion of carrying value to redemption value				61,751

Class A common stock subject to possible redemption, June 30, 2022			$	276,061,751

Warrant Liabilities

The Company accounts for Warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 and FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480 and meet all the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own common stock, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding.

The Company accounts for the Warrants as liabilities in accordance with the guidance contained in FASB ASC Topic 815-40, Derivatives and Hedging, Contracts in Entity’s Own Equity (“ASC 815-40”), under which the Warrants do not meet the criteria for equity treatment and are measured at fair value at inception and on a recurring basis, with changes in fair value recorded in the statement of operations (see Note 9).

For issued or modified warrants that meet all the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. The fair value of the Warrants was estimated using a Monte Carlo simulation approach (see Note 9). For periods subsequent to the detachment of the Public Warrants from the Units, the closing price of the Public Warrants was used as the fair value as of each relevant date.

Convertible Working Capital Promissory Notes

The Company accounts for its convertible Working Capital Promissory Notes under ASC 815. Under section 815-15-25 of ASC 815, the election can be made at the inception of a financial instrument to account for the instrument under the fair value option under FASB ASC Topic 825, Financial Instruments (“ASC 825”). The Company has made such election for its Working Capital Promissory Notes. Using the fair value option, the Working Capital Promissory Notes are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the ~~notes~~Working Capital Promissory Notes are recognized as a non-cash gain or loss on the condensed statements of operations (see Note 5)9).

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EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

Income Taxes

The Company ~~follows the asset and liability method of accounting~~accounts for income taxes under FASB ASC Topic 740, Income Taxes (“ASC 740”). ~~Deferred tax assets and liabilities are recognized for~~ASC 740 requires the ~~estimated future tax consequences attributable to differences between the financial statements carrying amounts~~recognition of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities for both the expected impact of differences between the unaudited condensed financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a ~~change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are~~valuation allowance to be established when ~~necessary, to reduce~~it is more likely than not that all or a portion of deferred tax assets ~~to the amount expected to~~will not be realized. As of ~~March 31,~~June 30, 2022 and December 31, 2021, the ~~Company had a~~Company’s deferred tax asset ~~of approximately $298,000 and $226,000, respectively. A~~had a full valuation allowance ~~has been~~ recorded ~~at each date.~~

against it. The Company’s current taxable income primarily consists of interest earned on the Trust Account. The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible. During the three months ended March 31, 2022 and 2021, the Company recorded 0 income tax expense. The Company’s effective tax rate differs from the statutory tax rate of 21% for the three months and six months ended ~~March 31,~~June 30, 2022 ~~was approximately 0%, which differs from the expected income tax rate~~and 2021 due to changes in fair value in Warrant liability, changes in fair value in the ~~start-up costs (discussed above), which are not currently deductible.~~Working Capital Promissory Notes, and changes in the valuation allowance on the deferred tax assets.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and a measurement ~~attribute~~process for ~~the~~ financial statement recognition and measurement of a tax ~~positions~~position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be ~~more likely than not~~more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were 0no unrecognized tax benefits and 0 amounts accrued for interest and penalties as of ~~March 31,~~June 30, 2022 and December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income ~~tax examinations~~taxation by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

Net Income (Loss) per Common Share

The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, Earnings Per Share. Net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Income and losses are shared pro rata between the two classes of shares. ~~The Company applies the two-class method in calculating earnings per share.~~ Accretion associated with the redeemable shares of Class A common stock is excluded from earnings per share as the redemption value approximates fair value.

The calculation of diluted income (loss) per share does not consider the effect of the Warrants issued in connection with (i) the IPO, (ii) the private placement, or (iii) the convertible feature of the Working Capital Loans since the exercise of the Warrants is contingent upon the occurrence of future events. The Warrants are exercisable to purchase 21,320,000 shares of Class A common stock in the aggregate. The Working Capital Loans made to the Company may be convertible into warrants of the post-business combination entity at a price of $1.00 per warrant. As of ~~March 31,~~June 30, 2022 and 2021, the Company did not have any other dilutive securities or other contracts that could potentially be exercised or converted into common stock and then share in the earnings of the Company.

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EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

The following table reflects the calculation of basic and diluted net income (loss) per common share (in dollars, except per share amounts):



	Three Months Ended				Three Months Ended				Three Months Ended				Three Months Ended				Six Months Ended				Six Months Ended
	March 31, 2022				March 31, 2021				June 30, 2022				June 30, 2021				June 30, 2022				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 income per common share
Numerator:
Allocation of net income, as adjusted	$	5,495,888	$	1,373,972	$	2,054,464	$	581,458
Denominator:
Basic weighted average shares outstanding		27,600,000		6,900,000		23,960,440		6,781,319
Basic and diluted net income per common share	$	0.20	$	0.20	$	0.09	$	0.09
Allocation of net income (loss)									$	1,966,419	$	491,605	$	(2,948,652)	$	(737,163)	$	7,462,307	$	1,865,577	$	(829,728)	$	(220,165)
Denominator
Basic and diluted weighted average shares outstanding										27,600,000		6,900,000		27,600,000		6,900,000		27,600,000		6,900,000		25,780,220		6,840,659
Basic and diluted net income (loss) per common share									$	0.07	$	0.07	$	(0.11)		(0.11)	$	0.27	$	0.27	$	(0.03)	$	(0.03)

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which at times may exceed the Federal ~~Depository~~Deposit Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, Fair Value Measurement (“ASC 820”), approximates the carrying amounts represented in the accompanying condensed balance sheets, primarily due to their short-term nature, except for the ~~warrant~~Warrant liabilities and the Working Capital Promissory Notes (see Note 9).

Recent Accounting Standards

Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed financial statements.

NOTE 3. INITIAL PUBLIC OFFERING

Pursuant to the IPO, the Company sold 27,600,000 Units, which includes a full exercise by the underwriters of their over-allotment option in the amount of 3,600,000 Units, at a price of $10.00 per Unit. Each Unit consists of 1 share of Class A common stock and one-half of one Public Warrant. Each whole Public Warrant entitles the holder to purchase 1 share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 8).

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EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2022

(Unaudited)

NOTE 4. PRIVATE PLACEMENT

Simultaneously with the closing of the IPO, the Sponsors and the Company’s CEO purchased an aggregate of 7,520,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant ($7,520,000 in the aggregate) from the Company in a private placement. Each Private Placement Warrant is exercisable to purchase 1 share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 8). The proceeds from the sale of the Private Placement Warrants were added to the net proceeds from the IPO held in the Trust Account. If the Company does not complete an Initial Business Combination within the Combination Period, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless.

Pursuant to a letter agreement entered into between the Sponsors and the Company’s CEO dated September 21, 2020, the Sponsors transferred to the CEO a number of Private Placement Warrants equal to 20% of the outstanding Private Placement Warrants acquired by the Sponsors upon consummation of the IPO (the “CEO Warrants”).

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~~EMPOWERMENT & INCLUSION CAPITAL I CORP.~~

~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~

~~MARCH 31, 2022~~

~~(Unaudited)~~

Unless otherwise determined by Board, if prior to the consummation of the Initial Business Combination the CEO (i) resigns from the Company as CEO or (ii) is removed or otherwise terminated by the Board, the CEO Warrants shall be forfeited at no cost back to the Sponsors (on a pro rata basis).

No shares of Class A common stock of the Company will be delivered pursuant to any exercise of a CEO Warrant until payment in full of the exercise price is received by the Company and the holder has paid to the Company an amount equal to any taxes required to be withheld or paid upon exercise of the CEO Warrants.

Pursuant to a letter agreement entered into between the Sponsors and the Company’s Chief Financial Officer (“CFO”), Virginia Henkels, dated November 4, 2020, the Sponsors transferred to the CFO a number of Private Placement Warrants equal to 7% of the outstanding Private Placement Warrants acquired by the Sponsors upon consummation of the IPO (the “CFO Warrants”).

Unless otherwise determined by the Board, if prior to the consummation of the Initial Business Combination the CFO (i) resigns from the Company as CFO, (ii) is removed or otherwise terminated by the Board or (iii) dies, the CFO Warrants shall be forfeited at no cost back to the Sponsors (on a pro rata basis).

No shares of Class A common stock of the Company will be delivered pursuant to any exercise of a CFO Warrant until payment in full of the exercise price is received by the Company and the holder has paid to the Company an amount equal to any taxes required to be withheld or paid upon exercise of the CFO Warrants.

NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

In 1999, Jefferies subscribed for an aggregate of 1,000 shares of the Company’s membership interests for $5,000. On September 17, 2020, in connection with the Company’s conversion to a C Corporation, the Company converted the 1,000 membership interests owned by Jefferies into 1,150,000 shares of the Company’s Class B common stock. Also, on September 17, 2020, PNCIC paid $20,000 to cover certain offering costs of the Company in consideration for 4,600,000 shares of the Company’s Class B common stock. As a result, there were 5,750,000 shares of Class B common stock issued and outstanding (the “Founder Shares”). On January 7, 2021, the Company effected a 1:1.2 stock split of its Class B common stock, resulting in an aggregate of 6,900,000 shares of Class B common stock outstanding. All share and per share amounts have been retroactively restated to give effect to this stock split as of January 1, 2019.

Excluding the effect of the stock split discussed above, on September 21, 2020, PNCIC transferred 1,150,000 Founder Shares to the Company’s CEO. On November 4, 2020, PNCIC transferred 301,875 Founder Shares to the Company’s CFO, and Jefferies transferred 100,625 Founder Shares to the CFO.

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EMPOWERMENT & INCLUSION CAPITAL I CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2022

(Unaudited)

The Founder Shares included an aggregate of up to 900,000 shares subject to forfeiture, to the extent that the underwriters’ over-allotment option was not exercised in full or in part, so that the number of Founder Shares would equal, on an as-converted basis, approximately 20% of the Company’s issued and outstanding common stock after the IPO. As a result of the underwriters’ election to fully exercise their over-allotment option, no Founder Shares are currently subject to forfeiture.

The Sponsors have agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (i) one year after the completion of an Initial Business Combination or (ii) subsequent to an Initial Business Combination, (a) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after an Initial Business Combination, or (b) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Public Stockholders having the right to exchange their shares of common stock for cash, securities or other property.

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~~EMPOWERMENT & INCLUSION CAPITAL I CORP.~~

~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~

~~MARCH 31, 2022~~

~~(Unaudited)~~

Administrative Services Agreement

The Company entered into an agreement on January 12, 2021, commencing February 1, 2021 through the earlier of the Company’s consummation of a business combination and its liquidation, to pay an affiliate of PNCIC approximately $10,000 per month for office space, utilities, and secretarial and administrative support. For the three and six months ended ~~March 31,~~June 30, 2022, the Company incurred and paid $29,211 and $58,422, respectively, in fees for these services. For the three and six months ended June 30, 2021, the Company incurred and paid $29,211 and ~~$19,474,~~$48,685, respectively, in fees for these services.

Promissory Note — Related Party

On September 17, 2020, the Company issued unsecured promissory notes in favor of the Sponsors (the “Promissory Notes”), pursuant to which the Company could borrow up to an aggregate principal amount of $300,000. The Promissory Notes were non-interest bearing and payable on the earlier of (i) March 31, 2021 or (ii) the consummation of the IPO. The outstanding balance under the Promissory Notes of $128,302 was repaid at the closing of the IPO on January 12, ~~2021.~~2021 and is no longer available.

Related Party Loans

On January 7, 2021, the Company issued the Working Capital Promissory Notes in favor of the Sponsors pursuant to which the Company may borrow up to an aggregate principal amount of $1,000,000 for working capital. In addition, in order to finance transaction costs in connection with a business combination, the Sponsors or an affiliate of the Sponsors, or certain of the Company’s officers and directors, may but are not obligated to provide the Company with additional Working Capital Loans.

The Working Capital Promissory Notes are non-interest bearing and payable upon the consummation of an Initial Business Combination. The Working Capital Promissory Notes are convertible, at the lender’s option, into warrants to purchase shares of Class A common stock at a conversion price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. Given this conversion feature, the Company has elected the fair value option for recording the Working Capital Promissory Notes (see Note 9).

On August 20, 2021, the Company drew an aggregate of $275,000 on the Working Capital Promissory Notes. Subsequently, on December 15, 2021, the Company drew an aggregate of $100,000 on the Working Capital Promissory Notes, bringing the outstanding balance as of December 31, 2021 to $375,000 with a fair value of $169,000 (see Note 9). On January 4, 2022, the Company drew an aggregate of $400,000 on the Working Capital Promissory Notes, and on March 23, 2022 drew the remaining $225,000, bringing the outstanding balance on the Working Capital Promissory Notes as of ~~March 31,~~June 30, 2022 to $1,000,000 with a fair value of ~~$190,000~~$80,000 (see Note 9).

If the Company completes an Initial Business Combination, the Company will repay the Working Capital Loans, including the Working Capital Promissory Notes, out of the proceeds of the Trust Account released to the Company. In the event that an Initial Business Combination is not completed, the Company may use a portion of the proceeds held outside the Trust Account to repay the Working

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NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2022

(Unaudited)

Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. The Working Capital Loans would either be repaid upon consummation of a business combination, without interest, or at the lender’s discretion, up to $1,500,000 of such Working Capital Loans made to the Company may be convertible into warrants of the post-business combination entity at a price of $1.00 per warrant. Such warrants would be identical to the Private Placement Warrants. As of ~~March 31,~~June 30, 2022, the Company drew an aggregate of $1,000,000 on the Working Capital Promissory Notes, of which ~~$250,000~~$750,000 was drawn from a Working Capital Promissory Note with PNCIC and ~~$750,000~~$250,000 was drawn from a Working Capital Promissory Note with Jefferies. Given the convertible feature contained within the Working Capital Promissory Notes, the Company has elected the fair value option for accounting purposes and recorded a change in fair value of ~~$604,000~~$110,000 and $714,000 related to the Working Capital Promissory Notes for the three and six months ended ~~March 31,~~June 30, 2022, respectively, as described in Note 9.

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~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~

~~MARCH 31, 2022~~

~~(Unaudited)~~

Initial Public Offering

Jefferies, one of our Sponsors, acted as a lead underwriter in our IPO. Solebury Capital LLC, an affiliate of one of our Sponsors, acted as a financial advisor in connection with our IPO. We have agreed to pay Solebury Capital LLC up to 3.5% of the gross spread earned by the underwriters for their services. As of ~~March 31,~~June 30, 2022, we paid Jefferies $5,520,000 of underwriting fees of which Solebury Capital LLC received $193,200. An additional $9,660,000 of underwriting fees have been deferred and are payable contingent upon the closing of an Initial Business Combination.

We are under no obligation to engage any of the underwriters or financial advisors that provided services to us in our IPO to provide any services for us in the future, including with respect to a business combination, although we are not prohibited from doing so. Any of the underwriters or financial advisors that provided services to us in our IPO may introduce us to potential target businesses or assist us in raising additional capital in the future.

NOTE 6. COMMITMENTS AND CONTINGENCIES

Risks and Uncertainties

Management continues to evaluate the impact of the COVID-19 pandemic and has concluded that while it is reasonably possible that the continuing impacts of the pandemic could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, a specific material adverse impact is not readily determinable as of the date of these unaudited condensed financial statements. The unaudited condensed financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Registration Rights

Pursuant to a registration rights agreement entered into on January 12, 2021, the holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to the Company’s Class A common stock). The holders of at least 15% of these securities will be entitled to make up to 3 demands, excluding short form registration demands, that the Company register such securities. In addition, these holders will have certain “piggy-back” registration rights to include such securities in other registration statements filed by the Company and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable lock-up period. The registration rights agreement does not contain liquidating damages or other cash settlement provisions resulting from delays in registering the Company’s securities. The Company will bear the costs and expenses incurred in connection with filing any such registration statements. Notwithstanding the

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(Unaudited)

foregoing, Jefferies may not exercise its demand and “piggyback” registration rights after five and seven years, respectively, from the effective date of the registration statement and may not exercise its demand rights on more than one occasion.

Underwriting and Legal Agreement

The underwriters are entitled to a deferred fee of $0.35 per Unit, or $9,660,000 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes an Initial Business Combination, subject to the terms of the underwriting agreement.

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~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~

~~MARCH 31, 2022~~

~~(Unaudited)~~

NOTE 7. STOCKHOLDERS’ DEFICIT

Preferred Stock— The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.0001 per share with such designations, voting and other rights and preferences as may be determined from time to time by the Board. At ~~March 31,~~June 30, 2022 and December 31, 2021, there were 0 shares of preferred stock issued or outstanding.

Class A Common Stock— The Company is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of Class A common stock are entitled to 1 vote for each share. At ~~March 31,~~June 30, 2022 and December 31, 2021, there were 27,600,000 shares of Class A common stock issued and outstanding subject to possible redemption which are presented as temporary equity.

Class B Common Stock— The Company is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. Holders of Class B common stock are entitled to 1 vote for each share. At ~~March 31,~~June 30, 2022 and December 31, 2021, there were 6,900,000 shares of Class B common stock issued and outstanding.

Holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders except as otherwise required by law; provided that only holders of Class B common stock will have the right to vote on the election of directors prior to the Initial Business Combination. The shares of Class B common stock will automatically convert into Class A common stock concurrently with or immediately following the consummation of an Initial Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock or equity-linked securities are issued or deemed issued in connection with an Initial Business Combination, the number of shares of Class A common stock issuable upon conversion of all Founder Shares will equal, in the aggregate, 20% of the total number of shares of Class A common stock outstanding after such conversion (after giving effect to any redemptions of shares of Class A common stock by Public Stockholders), including the total number of shares of Class A common stock issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued by the Company in connection with or in relation to the consummation of an Initial Business Combination, excluding any shares of Class A common stock or equity-linked securities exercisable for or convertible into shares of Class A common stock issued or to be issued to any seller in an Initial Business Combination and any private placement-equivalent warrants issued to the Sponsors, officers or directors upon conversion of Working Capital Loans; provided that such conversion of Founder Shares will never occur on a less than one-for-one basis.

NOTE 8. WARRANTS

As of ~~March 31,~~June 30, 2022 and December 31, 2021, there were 13,800,000 Public Warrants outstanding. Public Warrants may only be exercised for a whole number of shares. No fractional Public Warrants will be issued upon separation of the Units and only whole Public Warrants will trade. The Public Warrants will become exercisable on the later of (i) 30 days after the completion of an Initial Business Combination and (ii) 12 months from the closing of the IPO. The Public Warrants will expire five years after the completion of an Initial Business Combination or earlier upon redemption or liquidation.

The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a Warrant and will have no obligation to settle such Warrant exercise unless a registration statement under the Securities Act with respect to the shares of Class A common stock underlying the Warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying

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NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2022

(Unaudited)

its obligations with respect to registration. No Warrant will be exercisable and the Company will not be obligated to issue shares of Class A common stock upon exercise of a Warrant unless Class A common stock issuable upon such Warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the Warrants.

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~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~

~~MARCH 31, 2022~~

~~(Unaudited)~~

The Company has agreed that as soon as practicable, but in no event later than 15 business days after the closing of an Initial Business Combination, the Company will use its best efforts to file with the SEC a registration statement registering the issuance of the shares of Class A common stock issuable upon exercise of the Warrants, to cause such registration statement to become effective and to maintain a current prospectus relating to those shares of Class A common stock until the Warrants expire or are redeemed, as specified in the warrant agreement; provided, however, that the Private Placement Warrants issued to Jefferies will not be exercisable more than five years from the effective date of the registration statement in accordance with FINRA rules. If a registration statement covering the shares of Class A common stock issuable upon exercise of the Warrants is not effective by the 60thth business day after the closing of an Initial Business Combination, Warrant holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise the Warrants on a “cashless basis” pursuant to the exemption provided by Section 3(a)(9) of the Securities Act or another exemption.

Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00. Once the Warrants become exercisable, the Company may call the Warrants for redemption:

●

in whole and not in part;

●

at a price of $0.01 per Warrant;

●

upon not less than 30 days’ prior written notice of redemption to each Warrant holder; and

●

if, and only if, the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30 trading day period ending 3 business days before the Company sends the notice of redemption to the warrant holders.

If and when the Warrants become redeemable by the Company, the Company may not exercise its redemption right if the issuance of shares of common stock upon exercise of the Warrants is not exempt from registration or qualification under applicable state blue sky laws or the Company is unable to effect such registration or qualification.

Redemption of Warrants when the price per share of Class A common stock equals or exceeds $10.00. Once the Warrants become exercisable, the Company may redeem the outstanding Warrants:

●

in whole and not in part;

●

at a price of $0.10 per Warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their Warrants on a cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the shares of Class A common stock;

●

if the closing price of the shares of Class A common stock for any 20 trading days within a 30 trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the Warrant holders is less than $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants.

If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the Warrants may be adjusted in certain circumstances, including in the event of a stock dividend, recapitalization, reorganization, merger or consolidation. However, except as described below, the Warrants will not be adjusted for the issuance of Class A common stock at a price below their exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants. If the Company is unable to complete an Initial Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of Warrants will not receive any of such funds with

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JUNE 30, 2022

(Unaudited)

respect to their Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such Warrants. Accordingly, the Warrants may expire worthless.

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~~NOTES TO CONDENSED FINANCIAL STATEMENTS~~

~~MARCH 31, 2022~~

~~(Unaudited)~~

In addition, if the Company issues additional shares of common stock or equity-linked securities for capital raising purposes in connection with the closing of an Initial Business Combination at an issue price or effective issue price of less than $9.20 per share of common stock (with such issue price or effective issue price to be determined in good faith by the Board, and in the case of any such issuance to the Company’s initial stockholders or their respective affiliates, without taking into account any Founder Shares held by the Sponsors, as applicable, prior to such issuance) (the “Newly Issued Price”), the exercise price of the Warrants will be adjusted (to the nearest cent) to be equal to 115% of the Newly Issued Price.

As of ~~March 31,~~June 30, 2022 and December 31, 2021, there were 7,520,000 Private Placement Warrants outstanding. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the IPO, except that the Private Placement Warrants and the Class A common stock issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or saleable until after the completion of an Initial Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and will be non-redeemable, except as described above, so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.

NOTE 9. FAIR VALUE MEASUREMENTS

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used to value the assets and liabilities:

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.

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NOTES TO CONDENSED FINANCIAL STATEMENTS

~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at ~~March 31,~~June 30, 2022 and December 31, 2021 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:


		March 31,		December 31,			June 30,		December 31,
Description	Level	2022		2021		Level	2022		2021
Assets:
Investments held in Trust Account - U.S. Treasury Securities Money Market Fund	1	$	276,051,303	$	276,026,697	1	$	276,401,897	$	276,026,697

Liabilities:
Working Capital Promissory Notes	2	$	190,000	$	169,000	2	$	80,000	$	169,000

Warrant liability - Public Warrants	1	$	2,622,000	$	6,900,000	1	$	1,104,000	$	6,900,000
Warrant liability - Private Placement Warrants	2		1,428,800		3,760,000	2		601,600		3,760,000
Total Warrant liabilities		$	4,050,800	$	10,660,000		$	1,705,600	$	10,660,000

At ~~March 31,~~June 30, 2022 and December 31, 2021, assets held in the Trust Account were comprised of ~~$276,051,303~~$276,401,897 and $276,026,697, respectively, in money market funds which are invested primarily in U.S. Treasury ~~Securities.~~Securities, which are presented on the condensed balance sheet at fair value. Through ~~March 31,~~June 30, 2022 and December ~~21,~~31, 2021, the Company had no withdrawals of interest earned on the Trust Account.

The Warrants are accounted for as liabilities in accordance with ASC 815-40 and are measured at fair value at inception and on a recurring basis, with changes in fair value recorded in the statements of operations.

At issuance, the Warrant liability for the Warrants was valued as of January 12, 2021 using a Monte Carlo simulation, which is considered to be a Level 3 fair value measurement. Subsequent to the detachment of the Public Warrants from the Units, the Public Warrants are valued based on the quoted market price, under the ticker EPWR WS, which is a Level 1 fair value measurement. The Private Placement Warrants have substantially the same terms as the Public Warrants, and therefore are valued based on the quoted market price of the Public Warrants as of ~~March 31,~~June 30, 2022 and December 31, 2021. However, since the Private Placement Warrants are not actively traded, they are listed as a Level 2 in the fair value hierarchy table above.

The following table presents the changes in the fair value of Level 3 Warrant liabilities:


	Private				Warrant		Private				Warrant
	Placement		Public		Liabilities		Placement		Public		Liabilities
Initial measurement on January 12, 2021	$	5,640,000	$	10,350,000	$	15,990,000	$	5,640,000	$	10,350,000	$	15,990,000
Transfer to Level 1 during the three months ended March 31, 2021		—		(10,350,000)		(10,350,000)		—		(10,350,000)		(10,350,000)
Change in fair value of Private Placement Warrants from January 12 to March 31, 2021		(150,400)		—		(150,400)
Fair value of Level 3 warrant liabilities as of March 31, 2021	$	5,489,600	$	—	$	5,489,600
Change in fair value of Private Placement Warrants from January 12 to June 30, 2021								(75,200)		—		(75,200)
Transfer to Level 2 during the three months ended September 30, 2021								(5,564,800)		—		(5,564,800)
Fair value of Level 3 Warrant liabilities as of December 31,2021							$	—	$	—	$	—

Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period in which a change in valuation technique or methodology occurs. The estimated fair value of the Public Warrants transferred from a Level 3 measurement to a Level 1 fair value measurement during the ~~three months~~year ended ~~March~~December 31, 2021 was $10,350,000 at the time of transfer. ~~There were no transfers~~The estimated fair value of the Private Placement Warrants transferred from a Level 3 measurement to ~~Level 1 or~~a Level 2 fair value measurement during the ~~three month period~~year ended ~~March~~December 31, ~~2022.~~

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~~MARCH 31,~~JUNE 30, 2022

(Unaudited)

2021 was $5,564,800 at the time of transfer. There were no transfers to/from during the three- and six-month period ended June 30, 2022.

The Company elected the fair value option for recording the Working Capital Promissory Notes. The Working Capital Promissory Notes are convertible into warrants identical to the Private Placement Warrants. As noted above, similar to the Private Placement Warrants, as of ~~March 31,~~June 30, 2022, the Working Capital Promissory Notes were valued based on the quoted market price of the Public Warrants as if they had been converted to warrants. However, they are not actively traded, and as such are listed as a Level 2 in the fair value hierarchy table above.

The following table presents the changes in the fair value of the Level 2 Working Capital Promissory Notes:


Fair value as of January 1, 2022	$	169,000	$	169,000
Proceeds received from Working Capital Promissory Notes		625,000		625,000
Change in fair value		(604,000)		(604,000)
Fair value as of March 31, 2022	$	190,000	$	190,000
Change in fair value				(110,000)
Fair value as of June 30, 2022			$	80,000

NOTE 10. SUBSEQUENT EVENTS

On July 8, 2022, the Company transferred $278,314 of interest earned from the Trust Account to its operating account for Delaware franchise taxes paid since the IPO from the operating account.

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the condensed financial statements were issued. Based upon this review, other than as described above, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the condensed financial statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

References in this Quarterly Report on Form 10-Q (this “Quarterly Report”) to “we,” “us,” “our” or the “Company” refer to Empowerment & Inclusion Capital I Corp. References to our “management” or our “management team” refer to our officers and directors. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Special Note Regarding Forward-Looking Statements

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements other than statements of historical fact included in this Quarterly Report, including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position and business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “may,” “plan,” “intend,” “estimate,” “seek” or the negative of these terms and variations and similar words and expressions are intended to identify such forward-looking statements. Forward-looking statements inherently involve many risks and uncertainties that could cause actual results to differ materially from those projected in these statements. Such forward-looking statements relate to future events or future performance but reflect management’s current beliefs based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking ~~statements. The following include some,~~statements, including, but not ~~all, of~~limited to, the ~~factors that could cause actual results or events to differ materially from those anticipated:~~following: (i) our ability to select an appropriate target business or businesses; (ii) our ability to complete our Initial Business ~~Combination;~~Combination, including due to recent increases in inflation in the United States and elsewhere, which could make it more difficult for us to consummate a business combination; (iii) our expectations around the performance of the prospective target business or businesses; (iv) our success in retaining or recruiting, or changes required in, our management team following our Initial Business Combination; (v) our management team allocating their time to other businesses and potentially having conflicts of interest with our business or in approving our Initial Business Combination, as a result of which they would then receive expense reimbursements; (vi) our potential ability to obtain additional financing to complete our Initial Business Combination; (vii) our pool of prospective target businesses; (viii) the ability of our management team to generate a number of potential business combination opportunities; (ix) our public securities’ potential liquidity and trading; (x) the lack of a market for our securities; (xi) the use of proceeds not held in the Trust Account or available to us from interest income on the Trust Account balance; (xii) the Trust Account not being subject to claims of third parties; or (xiii) our financial performance following our IPO.

For additional risk factors, please refer to the Risk Factors section of our ~~Annual Report on~~ Form ~~10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on March 9, 2022 (the “Form 10-K”).~~10-K. Except as expressly required by applicable securities law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Overview

We are a blank check company incorporated in Delaware for the purpose of effecting an Initial Business Combination.

We are a special purpose acquisition company driven by a unique and purpose-driven mission: to partner with a company making a positive difference in the world and support its growth to create value for all stakeholders. To share in that value creation, each of our Sponsors intends to donate all of their respective Founders Shares and warrants to initiatives supporting the economic empowerment and inclusion of underrepresented groups. It is our and our Sponsors’ core belief that by both empowering businesses focused on making a positive difference in the world and our Sponsors using their profits and at-risk capital to reinvest in our communities, we and our Sponsors can deliver significant stockholder value while also promoting a more inclusive economy and society.

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We are not limited to a particular industry or sector for purposes of consummating our Initial Business Combination. Rather, we seek to identify a business with a strong, dedicated management team that will benefit from access to public capital markets to support its growth. In particular, we see the opportunity to create significant value by partnering with a well-managed company that can leverage the strategic resources of our management team and Sponsors during and after the Initial Business Combination. We are seeking a partner that is focused on delivering products, solutions or services that move society forward, whether that means empowering people,

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advancing diversity and inclusion, broadening accessibility, increasing societal well-being, or enhancing sustainability. While we are industry agnostic, we are firm in our belief that profit and mission can be mutually re-enforcing to help create a better, more inclusive world.

IPO and Initial Business Combination

On January 12, 2021, we consummated our IPO of 27,600,000 Units, which included the full exercise by the underwriter of its over-allotment option in the amount of 3,600,000 Units, at $10.00 per Unit, generating gross proceeds of $276,000,000. Each Unit consists of one share of Class A common stock and one-half of one Public Warrant. Each whole Public Warrant entitles the holder to purchase one Class A common stock at $11.50 per share, subject to adjustment. Simultaneously with the closing of the IPO, we consummated the sale of 7,520,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant in a private placement to PNCIC, Jefferies and our CEO, generating gross proceeds of $7,520,000.

We will have until 24 months from the closing of the IPO, or January 12, 2023, to consummate an Initial Business Combination. If we have not completed an Initial Business Combination within such 24-month Combination Period, we will (i) cease all operations except for the purpose of winding up; (ii) as promptly as reasonably possible but not more than 10 business days thereafter, redeem 100% of the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned and not previously released to us to pay our taxes, if any (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then issued and outstanding Public Shares, which redemption will completely extinguish the rights of the Public Stockholders as stockholders (including the right to receive further liquidating distributions, if any); and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining Public Stockholders and our Board, liquidate and dissolve, subject in each case to our obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to our Warrants, which will expire worthless if we fail to complete our Initial Business Combination within the Combination Period.

We expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete a business combination will be successful.

The issuance of additional shares of our stock in a business combination could:

●

significantly dilute the equity interest of investors, which dilution would increase if the anti-dilution provisions in the Class B common stock resulted in the issuance of Class A common stock on a greater than one-to-one basis upon conversion of the Class B common stock;

●

subordinate the rights of holders of Class A common stock if shares of preferred stock are issued with rights senior to those afforded our Class A common stock;

●

cause a change in control if a substantial number of shares of our Class A common stock are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present management team;

●

have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; and

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adversely affect prevailing market prices for our shares and/or warrants.

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Similarly, if we issue debt securities or otherwise incur significant indebtedness, it could result in:

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default and foreclosure on our assets if our operating revenues after an Initial Business Combination are insufficient to repay our debt obligations;

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acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;

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our immediate payment of all principal and accrued interest, if any, if the debt is payable on demand;

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our inability to obtain necessary additional financing if the debt contains covenants restricting our ability to obtain such financing while the debt is outstanding;

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our inability to pay dividends on our Class A common stock; and

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increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; as well as limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes, and other disadvantages compared to our competitors who have less debt.

Results of Operations

Since our inception on May 29, 1999 through ~~March 31,~~June 30, 2022, we have only engaged in activities related to our organization, our IPO, post-IPO public company related activities for legal, financial reporting, accounting and auditing compliance, and the identification and evaluation of target businesses for a business combination. We have neither engaged in any operations nor generated any revenues to date. We do not expect to generate any operating revenues until after the completion of an Initial Business Combination. We generate small amounts of non-operating income in the form of interest income on investments held after the IPO. We will continue to incur public company expenses, as well as expenses for due diligence activities until we complete a business combination.

Results of Operations – Three Months Ended ~~March 31,~~June 30, 2022

For the three months ended ~~March 31,~~June 30, 2022, we had a net income of ~~$6,869,860,~~$2,458,024, which consisted of a change in fair value of Warrant liabilities of ~~$6,609,200,~~$2,345,200, change in the fair value of the Working Capital Promissory Notes of ~~$604,000,~~$110,000, and interest earned on investments held in the Trust Account of ~~$24,606,~~$350,594, partially offset by operating costs of ~~$367,946.~~$303,928 and provision for income taxes of $43,842.

Results of Operations – ~~Three~~Six Months Ended ~~March 31, 2021~~June 30, 2022

For the ~~three~~six months ended ~~March 31, 2021,~~June 30, 2022, we had a net income of ~~$2,635,922,~~$9,327,884, which consisted of a change in ~~the~~ fair value of Warrant liabilities of ~~$3,600,400~~$8,954,400, change in the fair value of the Working Capital Promissory Notes of $714,000, and interest earned on investments held in the Trust Account of ~~$5,898,~~$375,200, partially offset by operating costs of $671,874 and provision for income taxes of $43,842.

Results of Operations – Three Months Ended June 30, 2021

For the three months ended June 30, 2021, we had a net loss of $3,685,815, which consisted of operating and formation costs of ~~$337,047~~$305,498 and a change in fair value of Warrant liabilities of $3,387,200, offset by interest earned on investments held in the Trust Account of $6,883.

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Results of Operations – Six Months Ended June 30, 2021

For the six months ended June 30, 2021, we had a net loss of $1,049,893, which consisted of operating and formation costs of $642,545 and transaction costs attributable to Warrant liabilities of ~~$633,329.~~$633,329, offset by change in the fair value of Warrant liabilities of $213,200 and interest earned on investments held in the Trust Account of $12,781.

Liquidity and Capital Resources

We intend to effectuate our Initial Business Combination using the net cash from the IPO and sale of Private Placement Warrants, our capital stock, debt or a combination of cash, stock and debt, including proceeds from the Working Capital Loans that are described below.

Proceeds from IPO

Following the IPO, the full exercise of the over-allotment option by the underwriters and the sale of the Private Placement Warrants, a total of $276,000,000 was placed in the Trust Account. As of ~~March 31,~~June 30, 2022, we had investments held in the Trust Account of ~~$276,051,303~~$276,401,897 (including ~~$51,303~~$401,897 of interest) consisting of U.S. Treasury Bills with a maturity of 185 days or less. Interest income on the balance in the Trust Account may be used by us to pay taxes. Through ~~March 31,~~June 30, 2022, we have not withdrawn any interest earned from the Trust Account.

As of ~~March 31,~~June 30, 2022, we had ~~$250,483~~$16,025 of cash held outside the Trust Account.

On July 8, 2022, we transferred $278,314 of interest earned from the Trust Account to the operating account outside of the Trust for reimbursement of Delaware franchise taxes paid from the operating account. We intend to use the funds held outside the Trust Account and any additional proceeds from the Working Capital Loans primarily to pay public company related expenses, identify and

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evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete an Initial Business Combination.

We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (less income taxes payable), to complete an Initial Business Combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete an Initial Business Combination, the remaining proceeds held in the Trust Account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

Proceeds from Working Capital Loans

In order to fund working capital deficiencies or finance transaction costs in connection with an Initial Business Combination, our Sponsors, their affiliates, or certain of our officers and directors may provide us with Working Capital Loans, of which up to $1,000,000 have been committed by our Sponsors in the form of Working Capital Promissory Notes as described below. In addition, in order to finance transaction costs in connection with a business combination, our Sponsors or their affiliates, or certain of our officers and directors, may, but are not obligated to, loan the Company additional funds as may be required.

On January 7, 2021, we issued the Working Capital Promissory Notes in favor of our Sponsors, pursuant to which we may borrow up to an aggregate principal amount of $1,000,000 for working capital. The Working Capital Promissory Notes are non-interest bearing, payable upon the consummation of a business combination, and convertible, at the lender’s option, into warrants to purchase shares of Class A common stock at a conversion price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. The Working Capital Promissory Notes are adjusted to the fair value of the underlying warrants at the end of each period.

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On August 20, 2021, we drew an aggregate of $275,000 on the Working Capital Promissory Notes. Subsequently, on December 15, 2021, we drew an aggregate of $100,000 on the Working Capital Promissory Notes, bringing the outstanding balance as of December 31, 2021 to $375,000. For the year ended December 31, 2021, there was a change in fair value of $206,000 leaving a recorded balance of $169,000. On January 4, 2022, we drew an additional $400,000 on the Working Capital Promissory Notes and, on March 23, 2022, we drew the remaining $225,000, bringing the outstanding balance to $1,000,000 as of ~~March 31,~~June 30, 2022. For the three and six months ended ~~March 31,~~June 30, 2022, there was a change in fair value of ~~$604,000~~$110,000 and $714,000, respectively, leaving a recorded balance of ~~$190,000.~~$80,000 as of June 30, 2022.

If we complete an Initial Business Combination, we will repay the Working Capital Loans out of the proceeds of the Trust Account released to us. ~~In the event that~~If an Initial Business Combination is not completed, we may use a portion of the proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. The Working Capital Loans would either be repaid upon consummation of an Initial Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post-business combination entity. Such warrants would be identical to the Private Placement Warrants.

We do believe we will need to obtain additional funds to meet the expenditures required for operating our business. In addition, if our estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an Initial Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to an Initial Business Combination. Moreover, we may need to obtain additional financing either to complete an Initial Business Combination or because we become obligated to redeem a significant number of our Public Shares upon consummation of an Initial Business Combination, in which case we may issue additional securities or incur debt in connection with such Initial Business Combination. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion of an Initial Business Combination. If we are unable to complete an Initial Business Combination because we do not have sufficient funds available to us, we will be forced to cease operations and liquidate the Trust Account. In addition, following an Initial Business Combination, if cash on hand is insufficient, we may need to obtain additional financing to meet our obligations.

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Going Concern

We have until January 12, 2023 to consummate an Initial Business Combination. It is uncertain that we will be able to consummate an Initial Business Combination by this time. If an Initial Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company. Management has determined that the liquidity condition and date for mandatory liquidation and subsequent dissolution raise substantial doubt about our ability to continue as a going concern. Management intends to complete an initial business combination before the mandatory liquidation date; however, it is uncertain whether management will succeed in doing so. No adjustments have been made to the carrying amounts of assets or liabilities should we be required to liquidate after January 12, 2023.

Summary of Cash Flows – ~~Three~~Six Months Ended ~~March 31,~~June 30, 2022

For the ~~three~~six months ended ~~March 31,~~June 30, 2022, cash used in operating activities was ~~$472,552.~~$707,010. Net income of ~~$6,869,860~~$9,327,884 was affected by interest earned on investments held in the Trust Account of ~~$24,606,~~$375,200, change in the fair value of Working Capital Promissory Notes of ~~$604,000,~~$714,000, and change in fair value of ~~warrant~~Warrant liabilities of ~~$6,609,200.~~$8,954,400. Changes in operating assets and liabilities provided ~~$104,606~~$8,706 of cash for operating activities. Net cash provided by financing activities was $625,000 generated from the proceeds of the Working Capital Promissory Notes.

As of ~~March 31,~~June 30, 2022, we had ~~$250,483~~$16,025 of cash held outside the Trust Account. We intend to use the funds held outside the Trust Account and any additional proceeds from the Working Capital Loans primarily to pay public company related expenses; identify and evaluate target businesses; perform business due diligence on prospective target businesses; travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners; review corporate documents and material agreements of prospective target businesses; and structure, negotiate and complete an Initial Business Combination.

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Summary of Cash Flows – ~~Three~~Six Months Ended ~~March 31,~~June 30, 2021

For the ~~three~~six months ended ~~March 31,~~June 30, 2021, cash used in operating activities was ~~$1,177,638.~~$1,262,667. Net ~~income~~loss of $2,635,922 was affected by interest earned on investments held in the Trust Account of ~~$5,898,~~$12,781, change in fair value of ~~warrant~~Warrant liabilities of ~~$3,600,400,~~$633,329, and transaction costs attributable to ~~warrant~~Warrant liabilities of $633,329. Changes in operating assets and liabilities used ~~$840,591~~$620,122 of cash for operating activities. During the ~~three~~six months ended ~~March 31,~~June 30, 2021, we used $276,000,000 in investing activities to fund our Trust Account and generated $277,299,618 in financing activities from our IPO and sale of Private Placement Warrants, net of underwriting fees, offering costs, and the repayment of a promissory note to a related party (see Note 5 to the Condensed Financial Statements)

Commitments and Contingencies

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than an agreement to pay an affiliate of PNCIC a total of $10,000 per month for office space, utilities, and secretarial and administrative support. We began incurring these fees on January 12, 2021 and will continue to incur these fees monthly until the earlier of the completion of an Initial Business Combination or the Company’s liquidation.

Critical Accounting Estimates

The preparation of condensed financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following critical accounting policies:

Class A Common Stock Subject to Possible Redemption

We account for our Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Class A common stock subject to mandatory redemption is classified as a liability instrument and measured at fair value. Conditionally redeemable

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common stock (including common stock that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at ~~March 31,~~June 30, 2022 and December 31, 2021, Class A common stock subject to possible redemption is presented as temporary equity, outside of the stockholders’ deficit section of the Company’s condensed balance sheets.

Net Income (Loss) Per Common Share

Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common stock outstanding for the period. ~~The Company applies~~Income and losses are shared pro rata between the ~~two-class method in calculating earnings per share.~~two classes of common stock. Accretion associated with the redeemable shares of Class A common stock is excluded from earnings per share as the redemption value approximates fair value.

Warrant Liabilities

We account for the Warrants in accordance with ASC 815-40 under which the Warrants do not meet the criteria for equity classification and must be recorded as liabilities. As the Warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants are measured at fair value at inception and at each reporting date in accordance with ASC 820, with changes in fair value recognized in the statement of operations in the period of change.

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Convertible Working Capital Promissory Notes

The Company accounts for its convertible Working Capital Promissory Notes under ASC 815. Under section 815-15-25 of ASC 815, the election can be made at the inception of a financial instrument to account for the instrument under the fair value option under ASC 825. The Company has made such election for its Working Capital Promissory Notes. Using the fair value option, the Working Capital Promissory Notes are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the notes are recognized as a non-cash gain or loss on the condensed statements of operations (see Note 5 to the Condensed Financial Statements).

Recent Accounting Pronouncements

Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed financial statements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are a smaller reporting company as defined in Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures ~~are controls and other procedures that~~ are designed to ensure that information required to be disclosed by us in our ~~reports filed or submitted under the~~ Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and ~~forms. Disclosure controls~~forms, and ~~procedures include, without limitation, controls and procedures designed to ensure~~ that such information ~~required to be disclosed in our reports filed or submitted under the Exchange Act~~ is accumulated and communicated to our management, including our ~~Chief Executive Officer~~principal executive officer and ~~Chief Financial Officer,~~principal financial officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

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~~Evaluation of Disclosure Controls and Procedures~~

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of ~~March 31,~~June 30, 2022. Based ~~upon their~~on this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures ~~(as defined~~were effective.

Remediation of a Material Weakness in ~~Rules 13a-15 (e)~~Internal Control Over Financial Reporting

We recognize the importance of the control environment as it sets the overall tone for the Company and ~~15d-15 (e) under~~is the ~~Exchange Act) were not effective due~~foundation for all other components of internal control. Consequently, we have designed and implemented remediation measures to address the material weakness ~~associated with~~identified in our Form 10-K and our Form 10-Q for the ~~accounting for certain~~quarter ended March 31, 2022 related to the Company’s financial reporting of complex financial ~~instruments.~~

~~Management has implemented remediation steps~~instruments and in order to ~~improve~~enhance our internal control over financial reporting. Specifically, we expanded and improved our review process for complex securities and related accounting standards. We plan to further improve this process by enhancing access to accounting literature, identification of third-party professionals with whom to consult regarding complex accounting applications and consideration of additional staff with the requisite experience and training to supplement existing accounting professionals.

~~Changes in Internal Control Over Financial Reporting~~

There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2022 covered by this Quarterly Report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting, except for the below:

Management performed additional accounting and financial analyses and other post-closing procedures, including consulting with subject matter experts related to the accounting for certain complex financial instruments, and has identified a material weakness in internal controls related to the accounting for complex equity instruments. In light of the material weakness identified and the resulting restatement, although we have processes to identify and appropriately apply applicable accounting requirements, we plan to enhanceenhanced our processes to identify and appropriately apply applicable accounting requirements to better evaluate and understand the nuances of the complex accounting standards that apply to our financial ~~statements. Our plans at this time include~~statements, including providing enhanced access to accounting literature, research materials and documents and ~~increased~~increasing communication among our personnel and third-party professionals with whom we consult regarding financial reporting of complex ~~accounting applications.~~financial instruments. The ~~elements~~foregoing actions were completed as of ~~our remediation plan can only be accomplished over time,~~March 31, 2022 and we concluded during the quarter ended June 30, 2022 that the previously identified material weakness in internal control over financial reporting was remediated.

Changes in Internal Control over Financial Reporting

As described above, the Company made changes to its internal control over financial reporting during the quarter ended March 31, 2022 and effectively maintained these controls during the quarter ended June 30, 2022, although the Company can offer no assurance that these ~~initiatives~~changes will ultimately have the intended effects. Otherwise, there was no change in our internal control over financial reporting that occurred during the fiscal quarter ended June 30, 2022 covered by this Quarterly Report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 1A. Risk Factors

Factors that could cause our actual results to differ materially from those in this Quarterly Report include the risk factors described in the Form 10-K. As of the date of this Quarterly Report, there have been no material changes to such risk factors as previously disclosed in the Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

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Item 6. Exhibits

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.


No.		Description of Exhibit
31.1*		Certification of Principal Executive 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.
31.2*		Certification of 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 Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification of 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 - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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
104		Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

* Filed herewith.

** Furnished herewith.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	EMPOWERMENT & INCLUSION CAPITAL I CORP.

Date: ~~May 13,~~August 5, 2022	By:	/s/ Harold Ford Jr.
	Name:	Harold Ford Jr.
	Title:	Chief Executive Officer
		(Principal Executive Officer and Duly Authorized Officer)