QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) | |
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(Address of principal executive offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
Page |
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3 | ||||
3 | ||||
3 | ||||
4 | ||||
5 | ||||
6 | ||||
7 | ||||
22 | ||||
28 | ||||
28 | ||||
30 | ||||
30 | ||||
30 | ||||
30 | ||||
31 | ||||
31 | ||||
31 | ||||
31 | ||||
33 |
March 31, 2022 |
December 31, 2021 |
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(Unaudited) |
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Assets |
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Current Assets |
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Cash |
$ | $ | ||||||
Prepaid expenses |
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Due from related party |
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Total current assets |
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Prepaid expenses, Non-current |
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Cash and securities held in Trust Account |
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Total Assets |
$ | $ | ||||||
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Liabilities and Stockholders’ Deficit: |
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Current liabilities: |
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Accounts payable and accrued expenses |
$ |
$ |
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Convertible promissory note—related party, at fair value |
— | |||||||
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Total current liabilities |
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Warrant liability |
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Total liabilities |
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Commitments and Contingencies (Note 6) |
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Common stock subject to possible redemption, |
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Stockholders’ Deficit: |
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Preferred stock, $ |
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Common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
( |
) | ( |
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Total Stockholders’ Deficit |
( |
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Total Liabilities and Stockholders’ Deficit |
$ |
$ |
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For the three months ended March 31, |
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2022 |
2021 |
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Operating expenses: |
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General and administrative costs |
$ | $ | ||||||
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Loss from operations |
( |
) |
( |
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Other income (expense) |
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Interest earned on cash and securities held in Trust Account |
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Warrant issuance costs |
( |
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Change in fair value of warrants |
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Total other income |
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Net income |
$ |
$ |
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Basic and diluted weighted average Common Stock subject to redemption |
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Basic and diluted net income per Common Stock subject to redemption |
$ |
$ |
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Basic and diluted weighted average Common Stock |
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Basic and diluted net income per Common Stock |
$ |
$ |
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Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
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Balance as of January 1, 2022 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
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Net income |
— | — | — | |||||||||||||||||
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Balance as of March 31, 2022 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
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Common Stock |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders’ Deficit |
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Shares |
Amount |
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Balance as of January 1, 2021 |
$ |
$ |
$ |
( |
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$ |
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Sale of |
— | — | — | |||||||||||||||||
Issuance of representative shares |
— | |||||||||||||||||||
Issuance of representative warrants |
— | — | — | |||||||||||||||||
Subsequent remeasurement under ASC480-10-S99, |
— | — | ( |
) | ( |
) | ( |
) | ||||||||||||
Net Income |
— | — | — | |||||||||||||||||
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Balance as of March 31, 2021 |
$ |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||
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For the three months ended March 31, |
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2022 |
2021 |
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Cash flows from Operating Activities: |
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Net income |
$ | $ | ||||||
Adjustments to reconcile net income to net cash used in operating activities: |
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Operating expenses paid by sponsor |
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Interest earned on cash and securities held in Trust account |
( |
) | ||||||
Warrant issuance costs |
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Change in fair value of warrants |
( |
) | ( |
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Changes in current assets and current liabilities: |
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Prepaid expenses |
( |
) | ||||||
Due from related party |
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Accounts payable and accrued expenses |
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Net cash used in operating activities |
( |
) | ( |
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Cash Flows from Investing Activities: |
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Investment held in Trust Account |
( |
) | ||||||
Interest withdrawn from Trust account |
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Net cash provided by (used in) investing activities |
( |
) | ||||||
Cash flows from Financing Activities: |
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Proceeds from initial public offering, net of underwriting discounts paid |
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Proceeds from private placement |
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Proceeds from issuance of convertible promissory note - related party |
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Repayment of promissory note to related party |
( |
) | ||||||
Payments of offering costs |
( |
) | ||||||
Net cash provided by financing activities |
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Net change in cash |
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Cash, beginning of the period |
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Cash, end of the period |
$ | $ | ||||||
Supplemental disclosure of noncash investing and financing activities: |
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Fair value of representative shares |
$ | $ | ||||||
Fair value of representative warrants |
$ | $ | ||||||
Initial value of common stock subject to possible redemption, including over-allotment as restated |
$ | $ | ||||||
Change in value of common stock subject to possible redemption |
$ | $ | ||||||
Reclassification of additional paid-in capital to retained earnings |
$ | $ | ||||||
Initial fair value of warrant liability, as restated |
$ | $ | ||||||
Offering costs paid by Sponsor under promissory note |
$ | $ | ||||||
Offering costs in accrued offering costs |
$ | $ | ||||||
Amortized Cost and Carrying Value |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value as of March 31, 2022 |
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U.S. Money Market |
$ | $ | $ | $ | ||||||||||||
U.S. Treasury Securities |
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$ | $ | $ | $ |
Amortized Cost and Carrying Value |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value as of December 31, 2021 |
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U.S. Money Market |
$ | $ | $ | $ | ||||||||||||
U.S. Treasury Securities |
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$ | $ | $ | $ |
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Redeemable Common Stock |
Non-Redeemable Common Stock |
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For the three months ended March 31, 2022 |
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Allocation of net income including common stock subject to redemption outstanding |
$ | $ | ||||||
Weighted Average Common Stock |
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Basic and Diluted net income per share |
$ | $ | ||||||
For the three months ended March 31, 2021 |
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Allocation of net income including common stock subject to possible redemption |
$ | $ | ||||||
Weighted Average Common Stock |
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Basic and Diluted net income per share |
$ | $ |
Gross proceeds from public issuance |
$ | |||
Less: |
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Proceeds allocated to public warrants |
( |
) | ||
Redeemable common stock issuance costs |
( |
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Plus: |
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Accretion of carrying value to redemption value |
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Contingently redeemable common stock |
$ | |||
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• | 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 (the “30-day redemption period”) to each warrant holder; and |
• | if, and only if, the reported last sale price of the Common Stock equals or exceeds $per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any trading days within a -trading day period ending on the third trading day prior to the date the Company sends to the notice of redemption to the warrant holders. |
Warrant liability at December 31, 2021 |
$ | |||
Change in fair value of warrant liabilities |
( |
) | ||
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|
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Warrant liabilities at March 31, 2022 |
$ |
March 31, 2022 |
December 31, 2021 |
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Exercise price |
$ | $ | ||||||
Share price |
$ | $ | ||||||
Volatility |
% | % | ||||||
Expected life of the options to convert |
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Risk-free rate |
% | % | ||||||
Dividend yield |
% | % | ||||||
Likelihood of completing a business combination |
% | % |
March 31, 2022 |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Liabilities: |
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Warrant liability - Public Warrants |
$ | $ | $ | — | $ | — | ||||||||||
Warrant liability - Private Warrants |
— | — | ||||||||||||||
Convertible promissory note – related party |
— | — | ||||||||||||||
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$ | $ | $ | — | $ | ||||||||||||
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December 31, 2021 |
Quoted Prices In Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
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Liabilities: |
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Warrant liability - Public Warrants |
$ | $ | $ | — | $ | — | ||||||||||
Warrant liability - Private Warrants |
— | — | ||||||||||||||
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$ | $ | $ | — | $ | ||||||||||||
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March 31, 2022 |
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Risk-free interest rate |
$ | % | ||
Time to Expiration (in years) |
$ | |||
Expected volatility |
% | |||
Exercise price |
$ | |||
Dividend yield |
% | |||
Stock Price |
$ | |||
Probability of transaction |
% |
101.LAB | Inline XBRL Taxonomy Extension Labels Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
+ | Certain of the exhibits and schedules to this exhibit have been omitted in accordance with Regulation S-K Item 601(b)(2). The Registrant agrees to furnish supplementally a copy of all omitted exhibits and schedules to the SEC upon its request. |
ISLEWORTH HEALTHCARE ACQUISITION CORP. | ||||||
Date: May 20, 2022 |
By: | /s/ Robert Whitehead | ||||
Name: | Robert Whitehead | |||||
Title: | Chief Executive Officer | |||||
By: | /s/ Dan Halvorson | |||||
Name: | Dan Halvorson | |||||
Title: | Chief Financial Officer |