UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
(Mark One)
| ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
| ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ___________ to ___________
(Exact Name of Registrant as Specified in its Charter)
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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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Registrant’s telephone number, including area code: (
Securities registered pursuant to Section
Title of each class |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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.
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).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of
Large accelerated filer |
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Accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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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
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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Page |
PART I. |
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1 |
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Item 1. |
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1 |
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1 |
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2 |
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Condensed Statement of Changes in Shareholder’s Deficit (unaudited) |
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3 |
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4 |
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5 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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15 |
Item 3. |
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17 |
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Item 4. |
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PART II. |
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19 |
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Item 1. |
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19 |
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Item 1A. |
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19 |
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Item 2. |
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21 |
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Item 3. |
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21 |
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Item 4. |
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21 |
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Item 5. |
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21 |
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Item 6. |
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22 |
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23 |
PART I
Item 1.
AfterNext HealthTech Acquisition Corp.
Condensed
(unaudited)
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June 30, 2022 |
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December 31, 2021 |
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Assets |
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Current assets: |
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Cash |
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$ |
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$ |
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Prepaid expenses |
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Total current assets |
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Investments held in Trust Account |
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Total assets |
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$ |
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$ |
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Liabilities and shareholders' deficit |
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Current liabilities: |
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Accrued professional fees and other expenses |
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$ |
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$ |
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Note payable to Sponsor |
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Derivative liabilities |
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Total current liabilities |
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Deferred underwriting compensation |
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Total liabilities |
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Class A ordinary shares subject to possible redemption; |
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Shareholders' deficit: |
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Preferred shares, $ |
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Class A ordinary shares, $ |
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— |
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— |
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Class F ordinary shares, $ |
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Additional paid-in capital |
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— |
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— |
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Accumulated deficit |
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Total shareholders' deficit |
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( |
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Total liabilities and shareholders' deficit |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed financial statements.
AfterNext HealthTech Acquisition Corp.
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For the Period |
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For the Period |
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For the Three |
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from April 12, 2021 |
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For the Six |
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from April 12, 2021 |
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Months Ended |
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(inception) |
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Months Ended |
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(inception) |
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June 30, 2022 |
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to June 30, 2021 |
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June 30, 2022 |
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to June 30, 2021 |
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Revenue |
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$ |
— |
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$ |
— |
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$ |
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$ |
— |
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Professional fees and other expenses |
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Change in fair value of derivatives |
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( |
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— |
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( |
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— |
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Income (loss) from operations |
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( |
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( |
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Interest income |
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— |
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— |
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Net income (loss) attributable to ordinary shares |
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$ |
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$ |
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$ |
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$ |
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Net income (loss) per ordinary share: |
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Class A ordinary shares - basic and diluted |
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$ |
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$ |
— |
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$ |
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$ |
— |
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Class F ordinary shares - basic and diluted |
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$ |
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$ |
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$ |
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$ |
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Weighted average ordinary shares outstanding: |
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Class A ordinary shares - basic and diluted |
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— |
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— |
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Class F ordinary shares - basic and diluted |
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The accompanying notes are an integral part of these condensed financial statements.
AfterNext HealthTech Acquisition Corp.
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Preferred Shares |
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Class A Ordinary Shares |
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Class F Ordinary Shares |
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Additional |
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Accumulated |
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Shareholders' |
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Shares |
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Amount |
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Shares |
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Amount |
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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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Balance at April 12, 2021 (inception) |
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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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$ |
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$ |
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Sales of Class F ordinary shares to Sponsor on May 3, 2021 at $ |
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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 loss attributable to ordinary shares |
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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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$ |
( |
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( |
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Balance at June 30, 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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$ |
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Preferred Shares |
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Class A Ordinary Shares |
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Class F Ordinary Shares |
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Additional |
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Accumulated |
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Shareholders' |
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Shares |
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Amount |
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Shares |
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Amount |
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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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Balance at 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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$ |
( |
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Net income attributable to ordinary shares |
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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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Balance at March 31, 2022 |
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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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$ |
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Adjustment to increase Class A ordinary shares subject to possible redemption to maximum redemption value as of June 30, 2022 |
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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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( |
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( |
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Net income attributable to ordinary shares |
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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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Balance at June 30, 2022 |
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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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$ |
( |
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The accompanying notes are an integral part of these condensed financial statements.
AfterNext HealthTech Acquisition Corp.
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For the Six |
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For the Period from |
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Months Ended |
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April 12, 2021 (inception) |
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June 30, 2022 |
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to June 30, 2021 |
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Cash flows from operating activities: |
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Net income attributable to ordinary shares |
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$ |
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$ |
( |
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Changes in operating assets and liabilities: |
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Prepaid expenses |
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( |
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Change in fair value of derivative liabilities |
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( |
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— |
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Accrued expenses and formation costs |
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Interest on investments held in Trust Account |
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— |
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Net cash provided by (used in) operating activities |
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— |
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Cash flows from operating activities: |
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Proceeds from sale of Class F ordinary shares to Sponsor |
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— |
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Net cash provided by financing activities |
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— |
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Net change in cash |
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Cash at beginning of period |
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— |
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Cash at end of period |
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$ |
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$ |
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The accompanying notes are an integral part of these condensed financial statements.
AfterNext HealthTech Acquisition Corp.
1. Organization and Business Operations
Organization and General
AfterNext HealthTech Acquisition Corp. (the
The Company was formed on April 12, 2021 and as of that date had not commenced operations. On May 3, 2021, the Company was funded with $ The Company The Company intends to finance a Business Combination with proceeds from its Public Offering of units ( Funds will remain in the Trust Account except for the withdrawal of interest earned on the funds that may be released to the Company to pay taxes. The proceeds from the Public Offering and the sale of the Private Placement Warrants will not be released from the Trust Account until the earliest of (i) the completion of the Business Combination, (ii) the redemption of any Public Shares properly submitted in connection with a shareholder vote to amend the amended and restated memorandum and articles of association to modify the substance or timing of the Company The remaining proceeds outside the Trust Account may be used to pay business, legal and accounting due diligence on prospective acquisitions, listing fees and continuing general and administrative expenses. Business Combination After signing a definitive agreement for a Business Combination, the Company will provide the holders of the public shares (the The underwriters have agreed to waive their rights to any deferred underwriting commission held in the Trust Account in the event the Company does not complete the Business Combination and those amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Company If the Company fails to complete the Business Combination, the redemption of the Company If the Company holds a shareholder vote or there is a tender offer for shares in connection with a Business Combination, a Public Shareholder will have the right to redeem its shares for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay taxes. As a result, such ordinary shares are recorded at their redemption amount and classified as temporary equity in accordance with ASC 480, ”
2. Summary of Significant Accounting Policies
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (
Emerging Growth Company
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 Securities and Exchange Act of 1934, as amended) 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 an 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.
Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less. The Company did not have any cash equivalents as of
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 insurance coverage of $
The fair value of the Company
ASC 820 establishes a fair value hierarchy that prioritizes and ranks the level of observability of inputs used to measure investments at fair value. The observability of inputs is impacted by a number of factors, including the type of investment, characteristics specific to the investment, market conditions and other factors. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).
Investments with readily available quoted prices or for which fair value can be measured from quoted prices in active markets will typically have a higher degree of input observability and a lesser degree of judgment applied in determining fair value.
The three levels of the fair value hierarchy under ASC 820 are as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical investments at the measurement date are used.
Level 2 - Pricing inputs are other than quoted prices included within Level 1 that are observable for the investment, either directly or indirectly. Level 2 pricing inputs include quoted prices for similar investments in active markets, quoted prices for identical or similar investments in markets that are not active, inputs other than quoted prices that are observable for the investment, and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 - Pricing inputs are unobservable and include situations where there is little, if any, market activity for the investment. The inputs used in determination of fair value require significant judgment and estimation.
In some cases, the inputs used to measure fair value might fall within different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the investment is categorized in its entirety is determined based on the lowest level input that is significant to the investment. Assessing the significance of a particular input to the valuation of an investment in its entirety requires judgment and considers factors specific to the investment. The categorization of an investment within the hierarchy is based upon the pricing transparency of the investment and does not necessarily correspond to the perceived risk of that investment.
The Company evaluated the Warrants (as defined below in Note 3
Key inputs for the valuation models used to calculate the fair value of the Warrant Securities were as follows,
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June 30, 2022 |
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December 31, 2021 |
Implied volatility |
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Risk-free interest rate |
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Instrument exercise price for one Class A ordinary share |
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$ |
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$ |
Expected term |
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The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid-in capital and accumulated deficit.
The preparation of financial statements in conformity with U.S.
Net Income per Ordinary Share
”. Net income per ordinary share is computed by dividing net income by the weighted average number of ordinary shares outstanding during the period as calculated using the treasury stock method.
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For the Three Months Ended |
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For the Period from April 12, 2021 (inception) |
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Class A |
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Class F |
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Class A |
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Class F |
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Basic and diluted net income per ordinary share: |
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Numerator: |
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Allocation of net income |
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$ |
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$ |
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$ |
— |
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$ |
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Accretion of Class A ordinary shares subject to possible redemption |
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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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$ |
— |
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Denominator: |
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Weighted average ordinary shares outstanding: |
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— |
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Basic and diluted net income per ordinary share |
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$ |
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$ |
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$ |
— |
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$ |
( |
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For the Six Months Ended |
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For the Period from April 12, 2021 (inception) |
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Class A |
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Class F |
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Class A |
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Class F |
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Basic and diluted net income per ordinary share: |
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Numerator: |
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Allocation of net income |
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$ |
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$ |
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$ |
— |
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$ |
( |
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Accretion of Class A ordinary shares subject to possible redemption |
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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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$ |
— |
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Denominator: |
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Weighted average ordinary shares outstanding: |
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— |
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Basic and diluted net income per ordinary share |
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$ |
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$ |
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$ |
— |
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$ |
( |
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Stock-Based Compensation Expense
The Company accounts for stock-based compensation expense in accordance with ASC 718,
9
ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be
There is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with federal income tax regulations, income taxes are not levied on the Company, but rather on the individual owners. United States (
Recent Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, Debt
”). ASU 2020 06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity
In its Public Offering, the Company sold
At the Close Date, $
The Company paid an underwriting discount of
4. Related Party Transactions
On August 6, 2021, the Sponsor transferred
10
forfeited
As of
The Founder Shares are identical to the Class
Additionally, the Sponsor and initial shareholders agreed not to transfer, assign or sell any of its Founder Shares until the earlier of (i) Private Placement Warrants If the Company does not complete the Business Combination within 24 Holders of the Founder Shares and Private Placement Warrants are entitled to registration rights pursuant to a registration rights agreement. The holders of these securities are entitled to make up to three demands that the Company register such securities. In addition, the holders have certain 11 Indemnity The Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a vendor (other than the Company
In connection with the Public Offering, TPG Capital BD, LLC, an affiliate of the Company,
Related Party Note Payable
On August
On November 5, 2021 the Company
Administrative Service Agreement
On the Close Date, the Company entered into an agreement to pay $
Effective August 19, 2021,
Effective November 2, 2021, the Company entered into a promissory note in which the Sponsor committed to lending up to $
5. Investments Held in Trust Account
6. Deferred Underwriting Compensation
The Company is committed to pay the Deferred Discount of
Class A Ordinary Shares
The Company is currently authorized to issue
The Company is currently authorized to issue
8. Fair Value Measurements
The following table presents information about the Company
|
|
As of June 30, 2022 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Warrants |
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||
Private Placement Warrants |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
As of December 31, 2021 |
|
|||||||||||||
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Warrants |
|
$ |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
|
||
Private Placement Warrants |
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
||
Total |
|
$ |
|
|
$ |
|
|
$ |
— |
|
|
$ |
|
|
|
Warrants |
|
|
Private Placement |
|
|
Total |
|
|||
Liabilities: |
|
|
|
|
|
|
|
|
|
|||
Fair value at March 31, 2022 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Change in fair value |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Fair value at June 30, 2022 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
|
|
|
|
|
|
|
|
|
|
|||
Liabilities: |
|
|
|
|
|
|
|
|
|
|||
Fair value at December 31, 2021 |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Change in fair value |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Fair value at June 30, 2022 |
|
$ |
|
|
$ |
|
|
$ |
|
The Company
Management has performed an evaluation of subsequent events through the date of issuance of the condensed financial statements, noting no subsequent events which require adjustment or disclosure.
Special Note Regarding Forward-Looking Statements
All statements other than statements of historical fact included in this Quarterly Report on Form 10-Q including, without limitation, statements under this
We are a blank check company incorporated as a Cayman Islands exempted company and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (
We intend to consummate a Business Combination using cash from the proceeds of our initial public offering (the
Results of Operations
For the three months ended
For the six months ended June 30, 2022 and the period from Inception to June 30, 2021, we earned net income of $6,215,089 and incurred net loss of $43,774, respectively. For the six months ended June 30, 2022 net income consisted primarily of gains from changes in the fair value of derivative liabilities of $6,630,000 and interest income of $346,962, offset by professional expenses of $761,873. For the period from Inception to June 30, 2021 net loss consisted of professional expenses of $43,774 associated with our formation and preparation for our Public Offering.
We anticipate that changes to the fair value of our derivative instruments, consisting of certain of our warrants exercisable for our Class A ordinary shares, may fluctuate significantly in future quarters, but these fluctuations
do not impact our cash flows. Our business activities since
Liquidity and Capital Resources
Prior to the closing of the Public Offering, our only sources of liquidity were an initial sale of Class F ordinary shares (the
15
The registration statement for our Public Offering was declared effective by the SEC on August 11, 2021. In our Public Offering, we sold 25,000,000 Units at a price of $10.00 per Unit, generating proceeds of $250,000,000. Simultaneously with the effectiveness of our Public Offering, we closed the private placement of an aggregate of 4,666,667 warrants to purchase our Class A ordinary shares (the
At On April 6, 2022 , the funds in the Trust Account were invested in specified U.S. government treasury bills with a maturity of 180 days or less and in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations. On November 5, 2021, we borrowed $2,000,000 under an unsecured promissory note from our Sponsor to fund our operating costs and expenses associated with the search for a Business Combination. The note is non-interest bearing. We are able to borrow up to an additional $5,000,000 on the unsecured promissory note. We do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business prior to our Business Combination aside from temporary loans from our Sponsor. However, if our estimates of the costs of identifying a target business, undertaking Off-Balance Sheet Financing Arrangements We have no obligations, assets or liabilities which would be considered off-balance sheet arrangements. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or entered into any non-financial agreements involving assets. Contractual Obligations
Critical Accounting Policies The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires our 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 condensed financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following as our critical accounting policies: Derivative Liabilities We evaluated our Warrants and Private Placement Warrants (collectively, Redeemable Ordinary Shares We recognize changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid-in capital and accumulated deficit. Net Income Per Ordinary Share We comply with accounting and disclosure requirements of Financial Accounting Standards Board (
We have two classes of ordinary shares, Class A ordinary shares and Class F ordinary shares. Earnings and losses are shared pro rata between the two classes of ordinary shares.
Recent Accounting Pronouncements In August 2020, the FASB issued ASU 2020-06, Debt To date, our efforts have been limited to organizational activities, activities relating to the Public Offering and the identification and evaluation of prospective acquisition targets for a Business Combination. We have neither engaged in any operations nor generated any revenues. As the net proceeds from our Public Offering and the sale of the Private Placement Warrants held in the Trust Account have not been invested, we do not believe we have any material exposure to interest rate risk. We have not engaged in any hedging activities since our Inception. We do not expect to engage in any hedging activities with respect to the market risk to which we are exposed. Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (the 17 processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure. As required by Rules 13a-15 and 15d-15 under the Exchange Act, our During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Factors that could cause our actual results to differ materially from those in this report are any of the risks disclosed in our Annual Report on Form 10-K, which was filed with the SEC on February 9, 2022. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations. The information presented below updates, and should be read in conjunction with, the risk factors disclosed in our Annual Report on Form 10-K, which was filed with the SEC on February 9, 2022. Changes in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our business, including our ability to negotiate and complete our Business Combination and results of operations. We are subject to laws and regulations enacted by national, regional and local governments. In particular, we are required to comply with certain SEC and other legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on the business, investments and results of our operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business, including our ability to negotiate and complete our Business Combination and results of operations. On March 30, 2022, the SEC issued proposed rules (the If we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted, which may make it difficult for us to complete our Business Combination. If we are deemed to be an investment company under the Investment Company Act, our activities may be restricted, including: • In addition, we may have imposed upon us burdensome requirements, including: • In order not to be regulated as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged primarily in a business other than investing, reinvesting or trading of securities and that our activities do not include investing, reinvesting, owning, holding or trading (exclusive of U.S. government securities and cash items) on an unconsolidated basis. Our business is to identify and complete a Business Combination and thereafter to operate the post-transaction business or assets for the long term. We do not plan to buy businesses or assets with a view to resale or profit from their resale. We do not plan to buy unrelated businesses or assets or to be a passive investor. The 2022 Proposed Rule under the Investment Company Act would provide a safe harbor for SPACs from the definition of We do not believe that our principal activities currently make us an investment company subject to the Investment Company Act. The proceeds held in the Trust Account have been invested by the trustee only in U.S. government treasury bills with a maturity of 180 days or less or in money market funds investing solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. Because the proceeds have been held in a non-interest-bearing account until recently, we believe we are not an investment company. Although the 2022 Proposed Rules, including the proposed safe harbor rule, have not yet been adopted, and one or more elements of the 2022 Proposed Rules, including the proposed safe harbor rule, may not be adopted or may be adopted in a revised form, we do not have an agreement in place with a target for a Business Combination. Accordingly, we may not be able to complete our Business Combination within the 24-month period. If the 2022 Proposed Rules are adopted as proposed or in similar form, therefore, we may fall outside of the proposed safe harbor and the SEC could deem us to be subject to regulation as an investment company for purposes of the Investment Company Act. Nevertheless, we intend to comply with the terms of the proposed safe harbor rule, including the duration component of that rule. As a result, we do not believe that the SEC would deem us to be an investment company for purposes of the Investment Company Act. However, if we were deemed to be subject to the Investment Company Act, compliance with these additional regulatory burdens would require additional expenses for which we have not allotted funds and may hinder our ability to consummate a Business Combination. If we are unable to complete our Business Combination within the required period, we will Our search for a Business Combination, and any target business with which we may ultimately consummate a Business Combination, may be materially adversely affected by the geopolitical conditions resulting from the recent invasion of United States and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the recent invasion of Any of the abovementioned factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian invasion of extensive period of time, our ability to consummate a Business Combination, or the operations of a target business with which we In addition, the recent invasion of On May 3, 2021, our Sponsor purchased 20,000,000 of our Class F ordinary shares for an aggregate purchase price of $25,000, or approximately $0.001 per share. Prior to the Sponsor On August 6, 2021, our Sponsor transferred 40,000 Class F ordinary shares to each of our independent directors (together, with the Sponsor, the Initial Shareholders) at a purchase price of approximately $0.004 per share. On August 11, 2021, we forfeited 12,812,500 Founder Shares for no consideration. On September 25, 2021, we forfeited 937,500 Founder Shares for no consideration. On the Close date, we completed the sale of the Private Placement Warrants for proceeds of $7,000,000. The sales of the above securities by the Company were deemed to be exempt from registration under the Securities Act, in reliance on Section 4(a)(2) of the Securities Act as transactions by an issuer not involving a public offering. On August 11, 2021, our registration statement on Form S-1, as amended, (File No. 333-257815) was declared effective by the SEC for the Public Offering pursuant to which we sold an aggregate of 25,000,000 Units at an offering price to the public of $10.00 per Unit for an aggregate offering price of $250,000,000. Goldman Sachs Net proceeds of $250,000,000 from the Public Offering and the sale of the Private Placement Warrants, including deferred underwriting discounts of $8,750,000, were deposited into the Trust Account on the Close Date. We paid $5,000,000 in underwriting discounts and incurred offering costs of $1,147,561 related to the Public Offering. In addition, the Underwriters agreed to defer $8,750,000 in underwriting discounts, which amount will be payable when and if a Business Combination is consummated. We also repaid $750,000 in non-interest bearing loans made to us by our Sponsor to cover expenses related to the Public Offering. No payments were made by us to directors, officers or persons owning ten percent or more of our Class A ordinary shares or to their associates, or to our affiliates. There has been no material change in the planned use of proceeds from the Public Offering as described in our Annual Report on Form 10-K, which was filed with the SEC on February 9, 2022.
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q. Exhibit Number Description 3.1* 31.1** 31.2** 32.1*** 32.2*** 101.INS** 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. 101.SCH** Inline XBRL Taxonomy Extension Schema Document 101.CAL** Inline XBRL Taxonomy Extension Calculation Linkbase Document 101.DEF** Inline XBRL Taxonomy Extension Definition Linkbase Document 101.LAB** Inline XBRL Taxonomy Extension Label 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)
* Incorporated herein by reference as indicated. *
* Filed herewith. |
***
Furnished herewith. This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
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.
|
|
AFTERNEXT HEALTHTECH ACQUISITION CORP. |
|
|
|
|
|
Date: August 4, 2022 |
|
By: |
/s/ R. Halsey Wise |
|
|
|
R. Halsey Wise |
|
|
|
Chief Executive Officer |
|
|
|
|
Date: August 4, 2022 |
|
By: |
/s/ Martin Davidson |
|
|
|
Martin Davidson |
|
|
|
Chief Financial Officer (Principal Financial and Accounting Officer) |
CERTIFICATION PURSUANT TO
RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, R. Halsey Wise, certify that:
4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) |
[Omitted];
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 4, 2022 |
|
By: |
|
/s/ R. Halsey Wise |
|
|
|
|
R. Halsey Wise |
|
|
|
|
President (Principal Executive Officer) |
CERTIFICATION PURSUANT TO
RULES 13a-14(a) AND 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002
I, Martin Davidson, certify that:
1.
I have reviewed this Quarterly Report on Form 10-Q of AfterNext HealthTech Acquisition Corp.;
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) |
[Omitted];
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: August 4, 2022 |
|
By: |
|
/s/ Martin Davidson |
|
|
|
|
Martin Davidson |
|
|
|
|
Chief Financial Officer (Principal Financial and Accounting Officer) |
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of AfterNext HealthTech Acquisition Corp. (the
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: August 4, 2022 |
|
By: |
|
/s/ R. Halsey Wise |
|
|
|
|
R. Halsey Wise |
|
|
|
|
President (Principal Executive Officer) |
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of AfterNext HealthTech Acquisition Corp. (the
(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: August 4, 2022 |
|
By: |
|
/s/ Martin Davidson |
|
|
|
|
Martin Davidson |
|
|
|
|
Chief Financial Officer (Principal Financial and Accounting Officer) |