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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading
Symbol(s)
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Name of each exchange on
which registered
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Large accelerated filer
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☐
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Accelerated filer
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☐
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☒
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Smaller reporting company
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Emerging growth company
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PART I. FINANCIAL INFORMATION
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Item 1.
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F-2
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F-2
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F-3
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F-4
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F-5
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F-6
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Item 2.
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25
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Item 3.
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28
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Item 4.
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28
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PART II. OTHER INFORMATION
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Item 1.
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29
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Item 1A.
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29
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Item 2.
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29
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Item 3.
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30
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Item 4.
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30
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Item 5.
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30
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Item 6.
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31
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32
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Item 1. |
Interim Financial Statements
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September 30,
2022
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December 31,
2021
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(unaudited) |
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ASSETS
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Current assets
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Cash
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$ | $ | ||||||
Prepaid insurance
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Total current assets | ||||||||
Investment held in Trust Account
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Long-term prepaid insurance
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Total Assets
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$
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$ | |||||
LIABILITIES, CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION AND STOCKHOLDERS’ DEFICIT
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Current Liabilities
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Accounts payable | $ | $ | ||||||
Accrued expenses
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Franchise tax payable
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Income tax payable |
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Due to related party
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Total current liabilities
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Deferred underwriting fee payable
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Warrant liabilities
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Total liabilities | ||||||||
Commitments and Contingencies
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Class A common stock subject to possible redemption, $
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Stockholders’ Deficit
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Preferred Stock - $
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Common Stock Class A - $
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Common Stock Class B - $
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Additional paid-in capital
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Accumulated deficit
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(
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)
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( |
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Total stockholders’ deficit
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(
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( |
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Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit
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$
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$ |
For the Three
Months Ended
September 30, 2022
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For the Three
Months Ended
September 30, 2021
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For the Nine
Months Ended
September 30, 2022
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For thee Period
from
April 1, 2021
(Inception)
through
September 30,
2021
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Formation costs and other operating expenses
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$
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$ |
$
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$
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Franchise tax expense
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Loss from operations
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(
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)
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( |
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(
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)
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(
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)
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Other income (expense):
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Income earned on marketable securities held in Trust Account
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Warrant offering expense
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( |
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Offering costs related to transferring founder shares to anchor investors
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( |
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Change in fair value of warrant liabilities
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( |
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(
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)
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Net income (loss) before provision for income taxes
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( |
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) | ||||||||||||
Provision for income taxes
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Net income (loss)
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$
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$ | ( |
) |
$
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$
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(
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)
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Weighted average Class A common stock outstanding, basic and diluted
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Basic and diluted net income (loss) per share, Class A
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$
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$ | ( |
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$
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$
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(
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)
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Weighted average Class B common stock outstanding, basic and diluted
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Basic and diluted net income (loss) per share, Class B
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$
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$ | ( |
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$
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$
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(
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)
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Class B
Common Stock
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Additional |
Accumulated |
Total
Stockholders’
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|||||||||||||||||
Shares
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Amount
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Paid-in Capital
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Deficit
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Deficit
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Balances as of December 31, 2021
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$
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$ |
$
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(
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)
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$
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(
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)
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Net income
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—
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Balances as of March 31, 2022 (unaudited)
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(
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(
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Net income
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—
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Balances as of June 30, 2022 (unaudited)
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(
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(
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Net income | — | |||||||||||||||||||
Accretion of Class A ordinary shares subject
to redemption |
— | ( |
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) | |||||||||||||||
Balances as of September 30, 2022 (unaudited) |
$ |
$ | $ |
( |
) | $ |
( |
) |
Class B
Common Stock
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Additional |
Accumulated |
Total
Stockholders’
Equity
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Shares
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Amount
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Paid-in Capital
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Deficit
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(Deficit)
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Balances as of April 1, 2021 (inception)
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$
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$
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$
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$
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Issuance of Class B common stock to Sponsor
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Net loss
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—
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(
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)
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(
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Balances as of June 30, 2021 (unaudited)
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(
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Excess of cash received over fair value of private placement warrants
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— | — | — | |||||||||||||||||
Forfeiture of Class B common stock |
( |
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) | — | — | ||||||||||||||
Accretion for Class A common stock to redemption amounts |
— | — | ( |
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) | ( |
) | ||||||||||||
Net loss | — | — | — | ( |
) | ( |
) | |||||||||||||
Balances as of September
30, 2021 (unaudited) |
$ |
$ | $ |
( |
) | $ |
( |
) |
For the Period | ||||||||
from April 1, | ||||||||
For the Nine |
2021 (Inception) | |||||||
Months Ended |
through | |||||||
September 30, 2022 | September 30, 2021 | |||||||
Cash flow from operating activities:
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Net income (loss)
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$
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$ | ( |
) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities:
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Interest earned on marketable securities held in trust account
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( |
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Change in fair value of warrant liabilities
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Offering expenses - warrants and anchor investors
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( |
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Changes in operating assets and liabilities:
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Prepaid insurance
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( |
) | ||||||
Accounts payable
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Accrued expenses
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(
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)
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Franchise tax payable
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Income tax payable
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Due to related party
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Net Cash used in Operating Activities
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(
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)
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( |
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Cash flow from investing activities:
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Investment held in Trust Account
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( |
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Net Cash used in Investing Activities
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( |
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Cash flow from financing activities:
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Proceeds received from initial public offering
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Proceeds from Promissory note payable
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Repayments of Promissory note payable
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( |
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Proceeds from private warrants
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Payment of offering costs
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( |
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Net Cash used in Financing Activities | ||||||||
Net change in cash
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(
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)
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Cash at the beginning of the period
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Cash at the end of the period
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$
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$ | |||||
Non-cash investing and financing activities:
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Offering costs included in accrued offering costs
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$ | $ | ||||||
Deferred underwriting commissions
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$ | $ | ||||||
Offering costs paid by Sponsor in exchange for issuance of Class B common stock
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$ | $ | ||||||
Offering costs included in Due to Sponsor
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$ |
$ |
For the Three Months Ended
September 30, 2022
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For the Three Month Ended
September 30, 2021
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For the Nine Months ended
September 30, 2022
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For the Period
from April 1,
2021 (inception)
through September 30, 2021
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Class A
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Class B
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Class A | Class B | Class A | Class B | Class A |
Class B
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EPS
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Numerator: Net income (loss)
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Allocation of net income (loss)
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$
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$
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$ | ( |
) | $ | ( |
) | $ | $ | $ | ( |
) | $ | ( |
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Denominator:
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Basic and diluted weighted average shares outstanding
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Basic and diluted net income (loss) per common stock
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$
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$
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$ | ( |
) | $ | ( |
) | $ | $ | $ | ( |
) | $ | ( |
) |
Gross Proceeds
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$
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Less:
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Proceeds allocated to Public Warrants
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(
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)
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Class A common stock issuance costs
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(
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)
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Add:
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Accretion of carrying value to redemption value
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Class A common stock subject to possible redemption at December 31, 2021
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Accretion of carrying value to redemption value
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Class A common stock subject to possible redemption at September 30, 2022 |
$ |
●
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in whole and not in part;
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● |
at a price of $
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● |
upon a minimum of
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● |
if, and only if, the last reported sale price of the Class A common stock equals or exceeds $
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●
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in whole and not in part;
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● |
at a price of $
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● |
upon a minimum of
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● |
if, and only if, the last reported sale price of the Class A common stock equals or exceeds $
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● |
if, and only if, there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and a current
prospectus relating thereto available throughout the
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● |
if, and only if, the last reported sale price of the Company’s Class A common stock is less than $
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As of September 30,
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As of December 31,
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Description
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Level
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2022
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2021
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Assets:
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Investments held in Trust Account
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1
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$
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$
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Liabilities:
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Private Placement Warrants
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3
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$
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$
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Public Warrants
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2
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$
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$
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Public Warrants |
1 | $ | $ |
Input
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As of December 31,
2021
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Risk-free interest rate
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%
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Expected term (years)
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Expected volatility
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%
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Exercise price
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$
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Public stock price
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$
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• |
The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants.
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• |
The expected life of the warrants is assumed to be equivalent to their remaining contractual term.
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• |
The Company estimates the volatility of its shares of common stock based on historical volatility that matches the expected remaining life of the warrants.
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• |
The dividend rate is based on the historical rate, which the Company anticipates to remain at zero.
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Input
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As of September 30,
2022
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Risk-free interest rate
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%
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Expected term (years)
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Expected volatility
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%
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Exercise price
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$
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Public stock price
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$
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Private Placement
Warrants
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Fair value as of December 31, 2021
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$
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Change in valuation inputs or assumptions(1)
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(
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)
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Fair value as of March 31, 2022
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Change in valuation inputs or assumptions(1)
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( |
) | ||
Fair value as of June 30, 2022
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Change in valuation inputs or assumptions(1) | ( |
) | ||
Fair value as of September 30, 2022(2) | $ |
(1) |
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(2) |
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ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
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ITEM 4. |
CONTROLS AND PROCEDURES.
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ITEM 1. |
LEGAL PROCEEDINGS.
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ITEM 1A. |
RISK FACTORS.
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ITEM 2. |
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
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ITEM 3. |
DEFAULTS UPON SENIOR SECURITIES.
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ITEM 4. |
MINE SAFETY DISCLOSURES.
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ITEM 5. |
OTHER INFORMATION.
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ITEM 6. |
EXHIBITS
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Exhibit
Number
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Description
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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.
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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.
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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.
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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.
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101.INS*
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Inline 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.
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101.SCH*
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Inline XBRL Taxonomy Extension Schema Document.
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101.CAL*
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Inline XBRL Taxonomy Extension Calculation Linkbase Document.
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101.DEF*
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Inline XBRL Taxonomy Extension Definition Linkbase Document.
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101.LAB*
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Inline XBRL Taxonomy Extension Label Linkbase Document.
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101.PRE*
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Inline XBRL Taxonomy Extension Presentation Linkbase Document.
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104*
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Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document, which is contained in Exhibit 101).
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AXONPRIME INFRASTRUCTURE ACQUISITION CORPORATION
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Date: November 18, 2022
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/s/ Dinakar Singh
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Dinakar Singh
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Chief Executive Officer and Principal Financial Officer
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(Duly Authorized and Principal Executive Officer)
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