|
Cayman Islands*
(State or other jurisdiction of
incorporation or organization) |
| |
6770
(Primary Standard Industrial
Classification Code Number) |
| |
N/A
(I.R.S. Employer
Identification Number) |
|
|
Gregg A. Noel
Michael J. Mies Skadden, Arps, Slate, Meagher & Flom LLP 525 University Avenue, Suite 1400 Palo Alto, CA 94301 (650) 470-4500 |
| |
Ryan J. Maierson
Thomas G. Brandt Latham & Watkins LLP 811 Main Street, Suite 3700 Houston, TX 77002 (713) 546-5400 |
| |
Patrick H. Shannon
Latham & Watkins LLP 555 Eleventh Street, NW, Suite 1000 Washington, D.C. 20004 (202) 637-2200 |
|
|
Large accelerated filer
☐
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| |
Accelerated filer
☐
|
|
|
Non-accelerated filer
☒
|
| |
Smaller reporting company
☒
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| | | |
Emerging growth company
☒
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| | | | Sincerely, | |
| | | |
Behrooz Abdi
Chief Executive Officer and Chairman of the Board of Directors |
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| | |
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| | | | F-1 | | | |
| | | | II-1 | | |
| ANNEXES | | | | | | | |
| | | | | A-1-1 | | | |
| | | | | A-2-1 | | | |
| | | | | A-3-1 | | | |
| | | | | B-1-1 | | | |
| | | | | B-2-1 | | | |
| | | | | B-3-1 | | | |
| | | | | B-4-1 | | | |
| | | | | C-1 | | | |
| | | | | D-1 | | | |
| | | | | E-1 | | | |
| | | | | F-1 | | | |
| | | | | G-1 | | | |
| | | | | H-1 | | | |
| | | | | I-1 | | | |
| | | | | J-1 | | |
| | |
Share Ownership in New Tempo
|
| |||||||||||||||||||||
| | |
Pro Forma Combined
(Assuming No Redemptions) |
| |
Pro Forma Combined
(Assuming Maximum Redemptions)(1) |
| ||||||||||||||||||
| | |
Number of
Shares |
| |
%
Ownership |
| |
Number of
Shares |
| |
%
Ownership |
| ||||||||||||
Tempo Stockholders(2)(3)(6)(7)
|
| | | | 14,542,197 | | | | | | 54.2% | | | | | | 14,542,197 | | | | | | 55.8% | | |
ACE’s public shareholders
|
| | | | 2,743,228 | | | | | | 10.2% | | | | | | 947,097 | | | | | | 3.7% | | |
Sponsor & related parties(4)(6)
|
| | | | 6,288,755 | | | | | | 23.4% | | | | | | 6,102,925 | | | | | | 23.4% | | |
Third Party PIPE Investors(7)
|
| | | | 2,469,047 | | | | | | 9.2% | | | | | | 3,654,878 | | | | | | 14.0% | | |
Cantor(5) | | | | | 805,000 | | | | | | 3.0% | | | | | | 805,000 | | | | | | 3.1% | | |
Total
|
| | | | 26,848,227 | | | | | | 100% | | | | | | 26,052,097 | | | | | | 100% | | |
| | |
Cayman Constitutional Documents
|
| |
Proposed Organizational Documents
|
|
Authorized Shares (Organizational Documents Proposal A) | | | The Cayman Constitutional Documents authorize 555,000,000 shares, consisting of 500,000,000 ACE Class A ordinary shares, 50,000,000 ACE Class B ordinary shares and 5,000,000 preference shares. | | | The Proposed Organizational Documents authorize 620,000,000 shares, consisting of 600,000,000 shares of New Tempo common stock and 20,000,000 shares of New Tempo preferred stock. | |
| | | See paragraph 7 of the Existing Memorandum. | | | See Article Fourth of the Proposed Certificate of Incorporation. | |
Authorize the Board of Directors to Issue Preferred Stock Without Stockholder Consent (Organizational Documents Proposal B) | | | The Cayman Constitutional Documents authorize the issuance of 5,000,000 preference shares with such designation, rights and preferences as may be determined from time to time by ACE’s board of directors. Accordingly, ACE’s board of directors is empowered under the Cayman Constitutional Documents, without shareholder approval, to issue preferred shares with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of the holders of ordinary shares (except to the extent it may affect the ability of ACE to carry out a conversion of ACE Class B ordinary shares on the Closing Date, as contemplated by the Existing Articles). | | | The Proposed Organizational Documents authorize the Board to issue all or any shares of preferred stock in one or more series and to fix for each such series such voting powers, full or limited, and such designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations, or restrictions thereof, as the Board may determine. | |
| | | See paragraph 7 of the Existing Memorandum and Articles 9 and 28 of the Existing Articles. | | |
See Article Fourth, subsection
(B) of the Proposed Certificate of Incorporation. |
|
Classified Board (Organizational Documents Proposal C) | | | The Cayman Constitutional Documents do not contain a provision that provides the number of classes of ACE’s board of directors. | | |
The Proposed Organizational Documents provide that the Board be divided into three classes with only one class of directors being elected in each year and each class serving a three-year term.
See Article Fifth, subsection (A) of the Proposed Certificate of Incorporation.
|
|
Corporate Name (Organizational Documents Proposal D) | | | The Cayman Constitutional Documents provide that the name of the company is “ACE Convergence Acquisition Corp.” | | | The Proposed Organizational Documents provide that the name of the corporation will be “Tempo Automation Holdings, Inc.” | |
| | | See paragraph 1 of the Existing Memorandum. | | | See Article First of the Proposed Certificate of Incorporation. | |
Perpetual Existence (Organizational Documents | | | The Cayman Constitutional Documents provide that if ACE | | | The Proposed Organizational Documents do not include any | |
| | |
Cayman Constitutional Documents
|
| |
Proposed Organizational Documents
|
|
Proposal D) | | | does not consummate a business combination (as defined in the Cayman Constitutional Documents) by January 30, 2023 (or if such date is further extended at a duly called extraordinary general meeting, such later date), ACE will cease all operations except for the purposes of winding up and will redeem the public shares and liquidate ACE’s trust account. | | | provisions relating to New Tempo’s ongoing existence; the default under the DGCL will make New Tempo’s existence perpetual. | |
| | | See Article 17 of the Cayman Constitutional Documents. | | | Default rule under the DGCL. | |
Exclusive Forum (Organizational Documents Proposal D) | | | The Cayman Constitutional Documents do not contain a provision adopting an exclusive forum for certain shareholder litigation. | | |
The Proposed Organizational Documents adopt Delaware as the exclusive forum for certain stockholder litigation.
See Article Tenth of the Proposed Certificate of Incorporation.
|
|
Takeovers by Interested Stockholders (Organizational Documents Proposal D) | | | The Cayman Constitutional Documents do not provide restrictions on takeovers of ACE by a related shareholder following a business combination. | | |
The Proposed Organizational Documents will have New Tempo governed by Section 203 of the DGCL relating to takeovers by interested stockholders.
Default rule under the DGCL.
|
|
Provisions Related to Status as Blank Check Company (Organizational Documents Proposal D) | | | The Cayman Constitutional Documents include various provisions related to ACE’s status as a blank check company prior to the consummation of a business combination. | | | The Proposed Organizational Documents do not include such provisions related to ACE’s status as a blank check company, which no longer will apply upon consummation of the Merger, as ACE will cease to be a blank check company at such time. | |
| | | See Article 17 of the Cayman Constitutional Documents. | | | | |
| | |
Share Ownership in New Tempo
|
| |||||||||||||||||||||
| | |
Pro Forma Combined
(Assuming No Redemptions) |
| |
Pro Forma Combined
(Assuming Maximum Redemptions)(1) |
| ||||||||||||||||||
| | |
Number of
Shares |
| |
%
Ownership |
| |
Number of
Shares |
| |
%
Ownership |
| ||||||||||||
Tempo Stockholders(2)(3)(6)(7)
|
| | | | 14,542,197 | | | | | | 54.2% | | | | | | 14,542,197 | | | | | | 55.8% | | |
ACE’s public shareholders
|
| | | | 2,743,228 | | | | | | 10.2% | | | | | | 947,097 | | | | | | 3.7% | | |
Sponsor & related parties(4)(6)
|
| | | | 6,288,755 | | | | | | 23.4% | | | | | | 6,102,925 | | | | | | 23.4% | | |
Third Party PIPE Investors(7)
|
| | | | 2,469,047 | | | | | | 9.2% | | | | | | 3,654,878 | | | | | | 14.0% | | |
Cantor(5) | | | | | 805,000 | | | | | | 3.0% | | | | | | 805,000 | | | | | | 3.1% | | |
Total
|
| | | | 26,848,227 | | | | | | 100% | | | | | | 26,052,097 | | | | | | 100% | | |
Name
|
| |
Position
|
|
Joy Weiss | | | President, Chief Executive Officer and Director Nominee | |
Ryan Benton | | | Chief Financial Officer and Secretary and Director Nominee | |
| | |
Tempo Options
|
| |
Tempo RSUs
|
| ||||||||||||||||||
Executive Officers and Directors
|
| |
Vested
|
| |
Unvested
|
| |
Vested
|
| |
Unvested
|
| ||||||||||||
Joy Weiss
|
| | | | 2,218,682 | | | | | | 1,016,454 | | | | | | — | | | | | | 1,500,000 | | |
Ryan Benton
|
| | | | 522,047 | | | | | | 786,791 | | | | | | — | | | | | | 1,500,000 | | |
Ralph Richart
|
| | | | 300,777 | | | | | | 465,400 | | | | | | — | | | | | | 1,500,000 | | |
Matthew Granade
|
| | | | 95,494 | | | | | | 210,089 | | | | | | — | | | | | | 250,000 | | |
Jacqueline Dee Schneider
|
| | | | 102,994 | | | | | | 31,832 | | | | | | — | | | | | | 250,000 | | |
Jeffrey McAlvay
|
| | | | 881,297 | | | | | | — | | | | | | — | | | | | | 250,000 | | |
Sri Chandrasekar
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Zavain Dar
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Sources
|
| | | | | | | |
Uses
|
| | | | | | |
($ in millions)
|
| | | | | | | | | | | | | | | |
Cash and investments held in trust
account(1) |
| | | $ | 28.1 | | | |
Repayment of existing indebtedness(3)
|
| | | | 35.7 | | |
PIPE Investment(2)
|
| | | | 10.5 | | | |
Fees paid through issuance of equity to
Cantor |
| | | | 8.1 | | |
New Tempo Senior Note(6)
|
| | | | 22.0 | | | |
Transaction expenses(5)
|
| | | | 3.6 | | |
August 2022 Bridge Notes(7)
|
| | | | 3.6 | | | | | | | | | | | |
Equity Issuance to Cantor
|
| | | | 8.1 | | | |
Cash to balance sheet(4)
|
| | | | 24.9 | | |
Shareholder Rollover Equity
|
| | | | 245.0 | | | |
Equity to Shareholders
|
| | | | 245.0 | | |
Total sources
|
| | | $ | 317.3 | | | |
Total uses
|
| | | $ | 317.3 | | |
| | | | | | | | | | | |
Pro Forma Condensed Combined
|
| |||||||||
(in thousands, except share and per share data)
|
| |
ACE
|
| |
Tempo
|
| |
No
Redemptions |
| |
Max
Redemptions |
| |||||||||
As of and for the year ended December 31, 2021
|
| | | | | | | | | | | | | | | | | | | | | |
Book value per share
|
| |
$(1.19) and $(4.75)
|
| | | $ | (9.39) | | | | | | N/A | | | | | | N/A | | |
Weighted average shares outstanding – basic and diluted
|
| |
23,000,000 and 5,750,000
|
| | | | 9,819,576 | | | | | | 26,848,227 | | | | | | 26,052,097 | | |
Net income (loss) per share – basic and diluted
|
| |
$0.20 and $0.20
|
| | | $ | (4.89) | | | | | $ | (4.31) | | | | | $ | (4.40) | | |
As of and for the six months ended June 30, 2022
|
| | | | | |||||||||||||||||
Book value per share
|
| |
$(1.99) and $(3.43)
|
| | | $ | (10.97) | | | | | $ | (0.25) | | | | | $ | (0.58) | | |
Weighted average shares outstanding – basic and diluted
|
| |
9,928,678 and 5,750,000
|
| | | | 10,065,695 | | | | | | 26,848,227 | | | | | | 26,052,097 | | |
Net income (loss) per share – basic and diluted
|
| |
$0.58 and $0.58
|
| | | $ | (1.99) | | | | | $ | (0.55) | | | | | $ | (0.55) | | |
($ in millions)
|
| |
2021E
|
| |
2022E
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |||||||||||||||
Total Revenue
|
| | | $ | 146.3 | | | | | $ | 178.4 | | | | | $ | 220.1 | | | | | $ | 271.9 | | | | | $ | 331.0 | | |
Non-GAAP Gross Profit(1)(3)
|
| | | | 61.7 | | | | | | 85.9 | | | | | | 112.8 | | | | | | 150.3 | | | | | | 194.8 | | |
Adjusted EBITDA(2)(3)
|
| | | | 18.0 | | | | | | 35.6 | | | | | | 58.1 | | | | | | 82.3 | | | | | | 110.1 | | |
($ in millions)
|
| |
2021A
|
| |
2022E
|
| |
2023E
|
| |
2024E
|
| |
2025E
|
| |||||||||||||||
Total Revenue
|
| | | $ | 17.4 | | | | | $ | 11.6 | | | | | $ | 17.3 | | | | | $ | 26.0 | | | | | $ | 36.4 | | |
Non-GAAP Gross Profit(1)(3)
|
| | | | 3.1 | | | | | | 2.5 | | | | | | 8.4 | | | | | | 13.7 | | | | | | 19.7 | | |
Adjusted EBITDA(2)(3)
|
| | | | (25.0) | | | | | | (20.7) | | | | | | (5.4) | | | | | | 0.7 | | | | | | 6.6 | | |
Name
|
| |
Position
|
|
Joy Weiss
|
| | President, Chief Executive Officer and Director Nominee | |
Ryan Benton
|
| | Chief Financial Officer and Secretary and Director Nominee | |
| | |
Tempo Options
|
| |
Tempo RSUs
|
| ||||||||||||||||||
Executive Officers and Directors
|
| |
Vested
|
| |
Unvested
|
| |
Vested
|
| |
Unvested
|
| ||||||||||||
Joy Weiss
|
| | | | 2,218,682 | | | | | | 1,016,454 | | | | | | — | | | | | | 1,500,000 | | |
Ryan Benton
|
| | | | 522,047 | | | | | | 786,791 | | | | | | — | | | | | | 1,500,000 | | |
Ralph Richart
|
| | | | 300,777 | | | | | | 465,400 | | | | | | — | | | | | | 1,500,000 | | |
Matthew Granade
|
| | | | 95,494 | | | | | | 210,089 | | | | | | — | | | | | | 250,000 | | |
Jacqueline Dee Schneider
|
| | | | 102,994 | | | | | | 31,832 | | | | | | — | | | | | | 250,000 | | |
Jeffrey McAlvay
|
| | | | 881,297 | | | | | | — | | | | | | — | | | | | | 250,000 | | |
Sri Chandrasekar
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Zavain Dar
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | |
| | |
Cayman Constitutional Documents
|
| |
Proposed Organizational Documents
|
|
Authorized Shares (Organizational Documents Proposal A) | | |
The Cayman Constitutional Documents authorize 555,000,000 shares, consisting of 500,000,000 ACE Class A ordinary shares, 50,000,000 ACE Class B ordinary shares and 5,000,000 preference shares.
See paragraph 7 of the Existing Memorandum.
|
| |
The Proposed Organizational Documents authorize 620,000,000 shares, consisting of 600,000,000 shares of New Tempo common stock and 20,000,000 shares of New Tempo preferred stock.
See Article Fourth of the Proposed Certificate of Incorporation.
|
|
Authorize the Board of Directors to Issue Preferred Stock Without Stockholder Consent (Organizational Documents Proposal B) | | | The Cayman Constitutional Documents authorize the issuance of 5,000,000 preference shares with such designation, rights and preferences as may be determined from time to time by ACE’s board of directors. Accordingly, ACE’s board of directors is empowered under the Cayman Constitutional Documents, without shareholder | | | The Proposed Organizational Documents authorize the Board to issue all or any shares of preferred stock in one or more series and to fix for each such series such voting powers, full or limited, and such designations, preferences and relative, participating, optional or other special rights and such qualifications, limitations, or | |
| | |
Cayman Constitutional Documents
|
| |
Proposed Organizational Documents
|
|
| | |
approval, to issue preferred shares with dividend, liquidation, redemption, voting or other rights which could adversely affect the voting power or other rights of the holders of ordinary shares (except to the extent it may affect the ability of ACE to carry out a conversion of ACE Class B ordinary shares on the Closing Date, as contemplated by the Existing Articles).
See paragraph 7 of the Existing Memorandum and Articles 9 and 28 of the Existing Articles.
|
| |
restrictions thereof, as the Board may determine.
See Article Fourth, subsection (B) of the Proposed Certificate of Incorporation.
|
|
Classified Board (Organizational Documents Proposal C) | | | The Cayman Constitutional Documents do not contain a provision that provides the number of classes of ACE’s board of directors. | | |
The Proposed Organizational Documents provide that the Board be divided into three classes with only one class of directors being elected in each year and each class serving a three-year term.
See Article Fifth, subsection (A) of the Proposed Certificate of Incorporation.
|
|
Corporate Name (Organizational Documents Proposal D) | | |
The Cayman Constitutional Documents provide that the name of the company is “ACE Convergence Acquisition Corp.”
See paragraph 1 of the Existing Memorandum.
|
| |
The Proposed Organizational Documents provide that the name of the corporation will be “Tempo Automation Holdings, Inc.”
See Article First of the Proposed Certificate of Incorporation.
|
|
Perpetual Existence (Organizational Documents Proposal D) | | |
The Cayman Constitutional Documents provide that if ACE does not consummate a business combination (as defined in the Cayman Constitutional Documents) by January 30, 2023 (or if such date is further extended at a duly called extraordinary general meeting, such later date), ACE will cease all operations except for the purposes of winding up and will redeem the public shares and liquidate ACE’s trust account.
See Article 17 of the Cayman Constitutional Documents.
|
| |
The Proposed Organizational Documents do not include any provisions relating to New Tempo’s ongoing existence; the default under the DGCL will make New Tempo’s existence perpetual.
Default rule under the DGCL.
|
|
Exclusive Forum (Organizational Documents Proposal D) | | | The Cayman Constitutional Documents do not contain a provision adopting an exclusive | | | The Proposed Organizational Documents adopt Delaware as the exclusive forum for certain | |
| | |
Assuming No Redemptions
(Shares) |
| |
Assuming Maximum Redemptions
(Shares)(1) |
| ||||||||||||||||||
(in millions)
|
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| |
Number of
Shares |
| |
Percentage of
Outstanding Shares |
| ||||||||||||
Tempo Stockholders(2)(3)(6)(7)
|
| | | | 14,542,197 | | | | | | 54.2% | | | | | | 14,542,197 | | | | | | 55.8% | | |
ACE’s public shareholders
|
| | | | 2,743,228 | | | | | | 10.2% | | | | | | 947,097 | | | | | | 3.7% | | |
Sponsor & related parties(4)(6)
|
| | | | 6,288,755 | | | | | | 23.4% | | | | | | 6,102,925 | | | | | | 23.4% | | |
Third Party PIPE Investors(7)
|
| | | | 2,469,047 | | | | | | 9.2% | | | | | | 3,654,878 | | | | | | 14.0% | | |
Cantor(5) | | | | | 805,000 | | | | | | 3.0% | | | | | | 805,000 | | | | | | 3.1% | | |
Pro Forma Outstanding Shares
|
| | | | 26,848,227 | | | | | | 100% | | | | | | 26,052,097 | | | | | | 100% | | |
| | |
As of June 30, 2022
|
| |
Transaction
Accounting Adjustments (Assuming No Redemptions) (Note 3) |
| | | | |
As of
June 30, 2022 |
| |
Additional
Transaction Accounting Adjustments (Assuming Maximum Redemptions) (Note 3) |
| | | | |
As of
June 30, 2022 |
| | | |||||||||||||||||||||||||
| | |
Tempo
(Historical) |
| |
ACE
(Historical) |
| | | | |
Pro Forma
Combined (Assuming No Redemptions) |
| | | | |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| | | ||||||||||||||||||||||||||||
Deferred underwriting
commissions |
| | | | — | | | | | | 8,050 | | | | | | (8,050) | | | |
[D]
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | ||||
Operating lease liabilities,
long-term |
| | | | 45 | | | | | | — | | | | | | — | | | | | | | | | 45 | | | | | | — | | | | | | | | | 45 | | | | | ||||
Finance lease, long-term
|
| | | | 1,000 | | | | | | — | | | | | | — | | | | | | | | | 1,000 | | | | | | — | | | | | | | | | 1,000 | | | | | ||||
Loan payable, noncurrent
|
| | | | 1,090 | | | | | | — | | | | | | — | | | | | | | | | 1,090 | | | | | | — | | | | | | | | | 1,090 | | | | | ||||
Senior Notes
|
| | | | — | | | | | | — | | | | | | 22,330 | | | |
[C]
|
| | | | 22,330 | | | | | | (7,105) | | | |
[J]
|
| | | | 15,225 | | | | | ||||
Total liabilities
|
| | | | 57,202 | | | | | | 19,796 | | | | | | (25,136) | | | | | | | | | 51,862 | | | | | | (7,105) | | | | | | | | | 44,757 | | | | | ||||
Commitments and Contingencies
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Convertible preferred stock
|
| | | | 75,684 | | | | | | — | | | | | | (75,684) | | | |
[G]
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | ||||
Class A ordinary shares subject to possible redemption
|
| | | | — | | | | | | 83,422 | | | | | | (27,741) | | | |
[F]
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | ||||
| | | | | | | | | | | | | | | | | (55,681) | | | |
[P]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
Stockholders’ (Deficit) Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACE Convergence Acquisition Corp. Class A Ordinary Shares
|
| | | | — | | | | | | — | | | | | | — | | | |
[F]
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | ||||
ACE Convergence Acquisition Corp. Class B Ordinary Shares
|
| | | | — | | | | | | 1 | | | | | | (1) | | | |
[F]
|
| | | | — | | | | | | — | | | | | | | | | — | | | | | ||||
Tempo Automation Holdings, Inc. common stock
|
| | | | — | | | | | | — | | | | | | 1 | | | |
[F]
|
| | | | 3 | | | | | | | | | | | | | | | 3 | | | | | ||||
| | | | | | | | | | | | | | | | | 2 | | | |
[G]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
Additional paid-in capital
|
| | | | 17,857 | | | | | | — | | | | | | 5,420 | | | |
[B]
|
| | | | 198,949 | | | | | | (8,396) | | | |
[J]
|
| | | | 190,553 | | | | | ||||
| | | | | | | | | | | | | | | | | (8,181) | | | |
[E]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | 27,741 | | | |
[F]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | 141,434 | | | |
[G]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | (21,859) | | | |
[H]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | — | | | |
[I]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | 8,849 | | | |
[K]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | 8,050 | | | |
[D]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | 5,000 | | | |
[C]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | 14,638 | | | |
[O]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||
Accumulated deficit
|
| | | | (128,319) | | | | | | (19,750) | | | | | | | | | | | | | | | (205,654) | | | | | | 105 | | | |
[J]
|
| | | | (205,549) | | | | | ||||
| | | | | | | | | | | | | | | | | (329) | | | |
[C]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | (4,398) | | | |
[E]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | 21,859 | | | |
[H]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | (8,849) | | | |
[K]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | (3,590) | | | |
[N]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | 111 | | | |
[O]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | (62,389) | | | |
[G]
|
| | | | | | | | | | | | | | | | | | | | | | | | ||||
Total stockholders’ (deficit) equity
|
| | | | (110,462) | | | | | | (19,749) | | | | | | 123,509 | | | | | | | | | (6,702) | | | | | | (8,291) | | | | | | | | | (14,993) | | | | | ||||
TOTAL LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
| | | $ | 22,424 | | | | | $ | 83,469 | | | | | $ | (60,733) | | | | | | | | $ | 45,160 | | | | | $ | (15,396) | | | | | | | | $ | 29,764 | | | | | ||||
|
| | |
Year Ended December 31, 2021
|
| |
Transaction
Accounting Adjustments (Assuming No Redemptions) (Note 3) |
| | | | |
Year Ended
December 31, 2021 |
| |
Additional
Transaction Accounting Adjustments (Assuming Maximum Redemptions) (Note 3) |
| | | | |
Year Ended
December 31, 2021 |
| | |||||||||||||||||||||||
| | |
Tempo
(Historical) |
| |
ACE
(Historical) |
| | | | |
Pro Forma
Combined (Assuming No Redemptions) |
| | | | |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| | ||||||||||||||||||||||||||
Revenue
|
| | | $ | 17,361 | | | | | | — | | | | | $ | — | | | | | | | | $ | 17,361 | | | | | | — | | | | | | | | $ | 17,361 | | | | ||
Cost of revenue
|
| | | | 14,578 | | | | | | — | | | | | | — | | | |
[CC]
|
| | | | 16,072 | | | | | | — | | | | | | | | | 16,072 | | | | ||
| | | | | | | | | | | | | | | | | 1,494 | | | |
[DD]
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Gross profit (loss)
|
| | | | 2,783 | | | | | | — | | | | | | (1,494) | | | | | | | | | 1,289 | | | | | | — | | | | | | | | | 1,289 | | | | ||
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 9,904 | | | | | | — | | | | | | — | | | |
[CC]
|
| | | | 11,400 | | | | | | — | | | | | | | | | 11,400 | | | | ||
| | | | | | | | | | | | | | | | | 1,496 | | | |
[DD]
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | | 9,817 | | | | | | — | | | | | | — | | | |
[CC]
|
| | | | 9,817 | | | | | | — | | | | | | | | | 9,817 | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
General and administrative
|
| | | | 16,376 | | | | | | 6,943 | | | | | | — | | | |
[CC]
|
| | | | 33,576 | | | | | | — | | | | | | | | | 33,576 | | | | ||
| | | | | — | | | | | | — | | | | | | 5,859 | | | |
[DD]
|
| | | | — | | | | | | | | | | | | | | |||||||
| | | | | | | | | | | | | | | | | 2,148 | | | |
[FF]
|
| |
|
| | | | | | | |
|
| | | | | | | | |||||
| | | | | | | | | | | | | | | | | 2,250 | | | |
[LL]
|
| | | | | | | | | | | | |
|
| | | | | | | | |||
Total operating
expenses |
| | | | 36,097 | | | | | | 6,943 | | | | | | 11,753 | | | | | | | | | 54,793 | | | | | | — | | | | | | | | | 54,793 | | | | ||
Loss from operations
|
| | | | (33,314) | | | | | | (6,943) | | | | | | (13,247) | | | | | | | | | (53,504) | | | | | | — | | | | | | | | | (53,504) | | | | ||
Change in fair value of warrant liability
|
| | | | (4,242) | | | | | | 12,723 | | | | | | 4,242 | | | |
[GG]
|
| | | | 12,723 | | | | | | — | | | | | | | | | 12,723 | | | | ||
Interest earned on marketable securities held in Trust
Account |
| | | | — | | | | | | 67 | | | | | | (67) | | | |
[AA]
|
| | | | — | | | | | | | | | | | | | | |||||||
Interest expense
|
| | | | (3,686) | | | | | | — | | | | | | (3,172) | | | |
[BB]
|
| | | | (5,749) | | | | | | 1,009 | | | |
[JJ]
|
| | | | (4,740) | | | | ||
| | | | | | | | | | | | | | | | | 1,109 | | | |
[EE]
|
| | | | | | | | | | | | | | | | | | |||||||
Other financing costs
|
| | | | (8,955) | | | | | | — | | | | | | (34,163) | | | |
[HH]
|
| | | | (71,344) | | | | | | — | | | | | | | | | (71,344) | | | | ||
| | | | | | | | | | | | | | | | | (28,226) | | | |
[II]
|
| | | | | | |||||||||||||||||||
Gain on forgiveness of PPP loan
|
| | | | 2,500 | | | | | | — | | | | | | — | | | | | | | | | 2,500 | | | | | | — | | | | | | | | | 2,500 | | | | ||
Other income (expense),
net |
| | | | (316) | | | | | | — | | | | | | — | | | | | | | | | (316) | | | | | | — | | | | | | | | | (316) | | | | ||
(Loss) income before income taxes
|
| | | | (48,013) | | | | | | 5,847 | | | | | | (73,524) | | | | | | | | | (115,690) | | | | | | 1,009 | | | | | | | | | (114,681) | | | | ||
Income tax (provision) benefit
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | ||
Net (loss) income
|
| | | $ | (48,013) | | | | | $ | 5,847 | | | | | $ | (73,524) | | | | | | | | $ | (115,690) | | | | | $ | 1,009 | | | | | | | | $ | (114,681) | | | |
| | |
Tempo
(Historical) |
| |
ACE
(Historical) |
| |
Pro Forma
Combined — Assuming No Redemptions |
| |||||||||
Net loss per common share – basic and diluted
|
| | | $ | (4.89) | | | | | | | | | | | $ | (4.31) | | |
Basic and diluted weighted average common shares outstanding
|
| | | | 9,819,576 | | | | | | | | | | | | 26,848,227 | | |
Net loss per share, Class A redeemable ordinary shares – basic and diluted
|
| | | | | | | | | $ | 0.20 | | | | | | | | |
Weighted average shares outstanding of Class A redeemable ordinary shares
|
| | | | | | | | | | 23,000,000 | | | | | | | | |
Net loss per share, Class B non-redeemable ordinary shares – basic and diluted
|
| | | | | | | | | $ | 0.20 | | | | | | | | |
Weighted average shares outstanding of Class B non-redeemable ordinary shares
|
| | | | | | | | | | 5,750,000 | | | | | | | | |
| | |
Pro Forma
Combined — Assuming Maximum Redemptions |
| |||
Net loss per common share – basic and diluted
|
| | | $ | (4.40) | | |
Basic and diluted weighted average common shares outstanding
|
| | | | 26,052,097 | | |
| | |
Six Months Ended June 30, 2022
|
| |
Transaction
Accounting Adjustments (Assuming No and Maximum Redemptions) (Note 3) |
| | | | |
Six
Months Ended June 30, 2022 |
| |
Additional
Transaction Accounting Adjustments (Assuming Maximum Redemptions) (Note 3) |
| | | | |
Six
Months Ended June 30, 2022 |
| | |||||||||||||||||||||||
| | |
Tempo
(Historical) |
| |
ACE
(Historical) |
| | | | |
Pro Forma
Combined (Assuming No and Maximum Redemptions) |
| | | | |
Pro Forma
Combined (Assuming Maximum Redemptions) |
| | ||||||||||||||||||||||||||
Revenue
|
| | | $ | 6,753 | | | | | | — | | | | | $ | — | | | | | | | | $ | 6,753 | | | | | | — | | | | | | | | $ | 6,753 | | | | ||
Cost of revenue
|
| | | | 6,032 | | | | | | — | | | | | | — | | | |
[CC]
|
| | | | 6,032 | | | | | | — | | | | | | | | | 6,032 | | | | ||
Gross profit
|
| | | | 721 | | | | | | — | | | | | | — | | | | | | | | | 721 | | | | | | — | | | | | | | | | 721 | | | | ||
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 6,419 | | | | | | — | | | | | | — | | | |
[CC]
|
| | | | 6,419 | | | | | | — | | | | | | | | | 6,419 | | | | ||
Sales and marketing
|
| | | | 5,865 | | | | | | — | | | | | | — | | | |
[CC]
|
| | | | 5,865 | | | | | | — | | | | | | | | | 5,865 | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
General and administrative
|
| | | | 7,986 | | | | | | 2,354 | | | | | | — | | | |
[CC]
|
| | | | 10,340 | | | | | | — | | | | | | | | | 10,340 | | | | ||
Total operating
expenses |
| | | | 20,270 | | | | | | 2,354 | | | | | | — | | | | | | | | | 22,624 | | | | | | — | | | | | | | | | 22,624 | | | | ||
Loss from operations
|
| | | | (19,549) | | | | | | (2,354) | | | | | | — | | | | | | | | | (21,903) | | | | | | — | | | | | | | | | (21,903) | | | | ||
Change in fair value of warrant and derivative liability
|
| | | | 4,089 | | | | | | 11,318 | | | | | | (4,089) | | | |
[GG]
|
| | | | 11,318 | | | | | | — | | | | | | | | | 11,318 | | | | ||
Interest earned on marketable securities held in Trust
Account |
| | | | — | | | | | | 113 | | | | | | (113) | | | |
[AA]
|
| | | | — | | | | | | — | | | | | | | | | — | | | | ||
Interest expense
|
| | | | (4,547) | | | | | | — | | | | | | (1,622) | | | |
[BB]
|
| | | | (4,153) | | | | | | 516 | | | |
[JJ]
|
| | | | (3,637) | | | | ||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 1,765 | | | |
[EE]
|
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | 251 | | | |
[KK]
|
| | | | | | | | | | | | | | | | | | | | | | | ||
Other income (expense),
net |
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | — | | | | | | | | | — | | | | ||
(Loss) income before income taxes
|
| | | | (20,007) | | | | | | 9,077 | | | | | | (3,808) | | | | | | | | | (14,738) | | | | | | 516 | | | | | | | | | (14,222) | | | | ||
Income tax (provision) benefit
|
| | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | | | | | | | | | | | | | | — | | | | ||
Net (loss) income
|
| | | $ | (20,007) | | | | | $ | 9,077 | | | | | $ | (3,808) | | | | | | | | $ | (14,738) | | | | | | 516 | | | | | | | | | (14,222) | | | |
| | |
Tempo
(Historical) |
| |
ACE
(Historical) |
| |
Pro Forma
Combined — Assuming No Redemptions |
| |||||||||
Net loss per common share – basic and diluted
|
| | | $ | (1.99) | | | | | | | | | | | $ | (0.55) | | |
Basic and diluted weighted average common shares outstanding
|
| | | | 10,065,695 | | | | | | | | | | | | 26,848,227 | | |
Net loss per share, Class A redeemable ordinary shares – basic and diluted
|
| | | | | | | | | $ | 0.58 | | | | | | | | |
Weighted average shares outstanding of Class A redeemable ordinary shares
|
| | | | | | | | | | 9,928,678 | | | | | | | | |
Net loss per share, Class B non-redeemable ordinary shares – basic and diluted
|
| | | | | | | | | $ | 0.58 | | | | | | | | |
Weighted average shares outstanding of Class B non-redeemable
|
| | | | | | | | | | | | | | |||||
ordinary shares
|
| | | | | | | | | | 5,750,000 | | | | | | | | |
| | |
Pro Forma
Combined — Assuming Maximum Redemptions |
| | |||||
Net loss per common share – basic and diluted
|
| | | $ | (0.55) | | | | | |
Basic and diluted weighted average common shares outstanding
|
| | | | 26,052,097 | | | | | |
| | |
For the year ended
December 31, 2021 |
| |
For the Six Months Ended
June 30, 2022 |
| ||||||||||||||||||
(in thousands, except share and per share data)
|
| |
Assuming No
Redemption |
| |
Assuming
Maximum Redemption |
| |
Assuming No
Redemption |
| |
Assuming
Maximum Redemption |
| ||||||||||||
Pro forma loss attributable to common stockholders – New Tempo .
|
| | | $ | (115,690) | | | | | $ | (114,681) | | | | | $ | (14,738) | | | | | $ | (14,222) | | |
New Tempo common stock | | | | | | | | | | | | | | | | | | | | | | | | | |
Weighted average shares outstanding – basic and
diluted |
| | | | 26,848,227 | | | | | | 26,052,097 | | | | | | 26,848,227 | | | | | | 26,052,097 | | |
Net loss per share – basic and diluted
|
| | | $ | (4.31) | | | | | $ | (4.40) | | | | | $ | (0.55) | | | | | $ | (0.55) | | |
| | |
Assuming No
Redemption |
| |
Assuming
Maximum Redemption |
| ||||||
Tempo Stockholders(1)
|
| | | | 14,542,197 | | | | | | 14,542,197 | | |
ACE’s public shareholders
|
| | | | 2,743,228 | | | | | | 947,097 | | |
Sponsor and related parties(2)
|
| | | | 6,288,755 | | | | | | 6,102,925 | | |
Third-Party PIPE Investors
|
| | | | 2,469,047 | | | | | | 3,654,878 | | |
Cantor
|
| | | | 805,000 | | | | | | 805,000 | | |
Pro forma weighted average shares outstanding – basic and diluted
|
| | | | 26,848,227 | | | | | | 26,052,097 | | |
| | |
Assuming No
Redemption |
| |
Assuming
Maximum Redemption |
| ||||||
Public warrants and private placement warrants
|
| | | | 18,100,000 | | | | | | 18,100,000 | | |
New Tempo Options
|
| | | | 610,197 | | | | | | 610,197 | | |
New Tempo RSUs
|
| | | | 1,641,564 | | | | | | 1,641,564 | | |
Tempo earnout shares, options and restricted stock units
|
| | | | 7,000,000 | | | | | | 7,000,000 | | |
Name
|
| |
Age
|
| |
Position
|
|
Behrooz Abdi | | |
60
|
| | Chief Executive Officer and Chairman of the Board of Directors | |
Denis Tse | | |
46
|
| | Secretary and Director | |
Minyoung Park | | |
32
|
| | Chief Financial Officer | |
Kenneth Klein | | |
63
|
| | Director | |
Omid Tahernia | | |
62
|
| | Director | |
Ryan Benton | | |
51
|
| | Director | |
Raquel Chmielewski | | |
43
|
| | Director | |
| | |
Six Months Ended
June 30, |
| |
Years Ended
December 31, |
| ||||||||||||||||||
(In thousands)
|
| |
2022
|
| |
2021
|
| |
2021
|
| |
2020
|
| ||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 6,753 | | | | | $ | 7,917 | | | | | $ | 17,361 | | | | | $ | 18,724 | | |
Cost of revenue:
|
| | | | 6,032 | | | | | | 5,551 | | | | | | 14,578 | | | | | | 14,098 | | |
Gross profit
|
| | | | 721 | | | | | | 2,366 | | | | | | 2,783 | | | | | | 4,626 | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 6,419 | | | | | | 3,978 | | | | | | 9,904 | | | | | | 6,690 | | |
Sales and marketing
|
| | | | 5,865 | | | | | | 3,838 | | | | | | 9,817 | | | | | | 7,892 | | |
General and administrative
|
| | | | 7,986 | | | | | | 7,606 | | | | | | 16,376 | | | | | | 8,613 | | |
Total operating expenses
|
| | | | 20,270 | | | | | | 15,422 | | | | | | 36,097 | | | | | | 23,195 | | |
Loss from operations
|
| | | | (19,549) | | | | | | (13,056) | | | | | | (33,314) | | | | | | (18,569) | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (4,546) | | | | | | (847) | | | | | | (3,686) | | | | | | (630) | | |
Other financing cost
|
| | | | — | | | | | | — | | | | | | (8,955) | | | | | | — | | |
Gain on PPP loan forgiveness
|
| | | | — | | | | | | — | | | | | | 2,500 | | | | | | — | | |
Interest income
|
| | | | 3 | | | | | | 1 | | | | | | 3 | | | | | | 49 | | |
Loss on debt extinguishment
|
| | | | — | | | | | | — | | | | | | (319) | | | | | | — | | |
Other expense
|
| | | | (4) | | | | | | — | | | | | | — | | | | | | — | | |
Change in fair value of warrant and derivative liabilities
|
| | | | 4,089 | | | | | | (144) | | | | | | (4,242) | | | | | | 47 | | |
Total other income (expense), net
|
| | | | (458) | | | | | | (990) | | | | | | (14,699) | | | | | | (534) | | |
Loss before income taxes
|
| | | | (20,007) | | | | | | (14,046) | | | | | | (48,013) | | | | | | (19,103) | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1 | | |
Net loss
|
| | | $ | (20,007) | | | | | $ | (14,046) | | | | | $ | (48,013) | | | | | $ | (19,104) | | |
Date of Option Grant
|
| |
# of Options
Granted |
| |
Fair Value of
Underlying Stock* |
| ||||||
1/27/2021
|
| | | | 185,000 | | | | | $ | 1.41 | | |
3/29/2021
|
| | | | 3,056,993 | | | | | $ | 1.51 | | |
3/30/2021
|
| | | | 305,583 | | | | | $ | 1.51 | | |
6/1/2021
|
| | | | 880,874 | | | | | $ | 2.26 | | |
6/25/2021
|
| | | | 204,500 | | | | | $ | 2.55 | | |
7/3/2021
|
| | | | 273,365 | | | | | $ | 2.65 | | |
8/10/2021
|
| | | | 937,731 | | | | | $ | 3.69 | | |
9/28/2021
|
| | | | 566,250 | | | | | $ | 5.46 | | |
11/10/2021
|
| | | | 353,000 | | | | | $ | 6.63 | | |
12/3/2021
|
| | | | 237,000 | | | | | $ | 7.12 | | |
5/16/2022
|
| | | | 3,594 | | | | | $ | 6.42 | | |
| | |
Six Months Ended
June 30, |
| | | | | | | | | | | | | |||||||||
(In thousands)
|
| |
2022
|
| |
2021
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Statement of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 6,753 | | | | | $ | 7,917 | | | | | $ | (1,164) | | | | | | -15% | | |
Cost of revenue
|
| | | | 6,032 | | | | | | 5,551 | | | | | | 481 | | | | | | 9% | | |
Gross profit
|
| | | | 721 | | | | | | 2,366 | | | | | | (1,645) | | | | | | -70% | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 6,419 | | | | | | 3,978 | | | | | | 2,441 | | | | | | 61% | | |
Sales and marketing
|
| | | | 5,865 | | | | | | 3,838 | | | | | | 2,027 | | | | | | 53% | | |
General and administrative
|
| | | | 7,986 | | | | | | 7,606 | | | | | | 380 | | | | | | 5% | | |
Total operating expenses
|
| | | | 20,270 | | | | | | 15,422 | | | | | | 4,848 | | | | | | 31% | | |
Loss from operations
|
| | | | (19,549) | | | | | | (13,056) | | | | | | (6,493) | | | | | | 50% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (4,546) | | | | | | (847) | | | | | | (3,699) | | | | | | 437% | | |
Interest income
|
| | | | 3 | | | | | | 1 | | | | | | 2 | | | | | | 200% | | |
Other expense
|
| | | | (4) | | | | | | — | | | | | | (4) | | | | | | N.M. | | |
Change in fair value of warrant and derivative liabilities
|
| | | | 4,089 | | | | | | (144) | | | | | | 4,233 | | | | | | 2940% | | |
Total other income (expense), net
|
| | | | (458) | | | | | | (990) | | | | | | 532 | | | | | | -54% | | |
Loss before income taxes
|
| | | | (20,007) | | | | | | (14,046) | | | | | | (5,961) | | | | | | 42% | | |
Income tax provision
|
| | | | — | | | | | | — | | | | | | — | | | | | | N.M. | | |
Net loss
|
| | |
$
|
(20,007)
|
| | | |
$
|
(14,046)
|
| | | |
$
|
(5,961)
|
| | | | | 42% | | |
| | |
Years Ended
December 31, |
| | | | | | | | | | | | | |||||||||
(In thousands)
|
| |
2021
|
| |
2020
|
| |
$ Change
|
| |
% Change
|
| ||||||||||||
Statement of Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 17,361 | | | | | $ | 18,724 | | | | | $ | (1,363) | | | | | | -7% | | |
Cost of revenue
|
| | | | 14,578 | | | | | | 14,098 | | | | | | 480 | | | | | | 3% | | |
Gross profit
|
| | | | 2,783 | | | | | | 4,626 | | | | | | (1,843) | | | | | | -40% | | |
Operating expenses | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 9,904 | | | | | | 6,690 | | | | | | 3,214 | | | | | | 48% | | |
Sales and marketing
|
| | | | 9,817 | | | | | | 7,892 | | | | | | 1,925 | | | | | | 24% | | |
General and administrative
|
| | | | 16,376 | | | | | | 8,613 | | | | | | 7,763 | | | | | | 90% | | |
Total operating expenses
|
| | | | 36,097 | | | | | | 23,195 | | | | | | 12,902 | | | | | | 56% | | |
Loss from operations
|
| | | | (33,314) | | | | | | (18,569) | | | | | | (14,745) | | | | | | 79% | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | (3,686) | | | | | | (630) | | | | | | (3,056) | | | | | | 485% | | |
Other financing cost
|
| | | | (8,955) | | | | | | — | | | | | | (8,955) | | | | | | 100% | | |
Gain on PPP loan forgiveness
|
| | | | 2,500 | | | | | | — | | | | | | 2,500 | | | | | | 100% | | |
Loss on debt extinguishment
|
| | | | (319) | | | | | | — | | | | | | (319) | | | | | | 100% | | |
Interest income
|
| | | | 3 | | | | | | 49 | | | | | | (46) | | | | | | -94% | | |
Change in fair value of warrants
|
| | | | (4,242) | | | | | | 47 | | | | | | (4,289) | | | | | | -9126% | | |
Total other income (expense), net
|
| | | | (14,699) | | | | | | (534) | | | | | | (14,165) | | | | | | 2653% | | |
Loss before income taxes
|
| | | | (48,013) | | | | | | (19,103) | | | | | | (28,910) | | | | | | 151% | | |
Income tax provision
|
| | | | — | | | | | | 1 | | | | | | (1) | | | | | | -100% | | |
Net loss
|
| | |
$
|
(48,013)
|
| | | |
$
|
(19,104)
|
| | | |
$
|
(28,909)
|
| | | | | 151% | | |
| | |
For the Six Months
Ended June 30, |
| | | | |||||||||
(in thousands)
|
| |
2022
|
| |
2021
|
| | ||||||||
Net cash used in operating activities
|
| | | $ | (16,953) | | | | | $ | (10,012) | | | | ||
Net cash used in investing activities
|
| | | $ | (24) | | | | | $ | (191) | | | | ||
Net cash provided by financing activities
|
| | | $ | 16,205 | | | | | $ | 17,855 | | | |
| | |
For the Years Ended
December 31, |
| | | | |||||||||
(in thousands)
|
| |
2021
|
| |
2020
|
| | ||||||||
Net cash used in operating activities
|
| | | $ | (30,228) | | | | | $ | (13,904) | | | | ||
Net cash used in investing activities
|
| | | $ | (622) | | | | | $ | (2,307) | | | | ||
Net cash provided by financing activities
|
| | | $ | 16,288 | | | | | $ | 10,088 | | | |
| | |
Common Stock
|
| |
Preferred Stock
|
| |
Capital Stock
|
| |||||||||||||||||||||||||||
Name and Address of Beneficial Owner(1)
|
| |
Number of
Shares of Common Stock |
| |
% of Shares
of Common Stock |
| |
Number of
Shares Beneficially Owned |
| |
% of Shares
Beneficially Owned |
| |
Number of
Shares Beneficially Owned |
| |
% of Shares
Beneficially Owned |
| ||||||||||||||||||
5% Holders of Tempo | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Lux Ventures IV, L.P.(2)
|
| | | | — | | | | | | — | | | | | | 7,762,830 | | | | | | 16.11% | | | | | | 7,762,830 | | | | | | 12.69% | | |
Point72 Ventures Investments, LLC(3)
|
| | | | 2,363,000 | | | | | | 18.21% | | | | | | 20,178,431 | | | | | | 41.86% | | | | | | 22,541,431 | | | | | | 36.85% | | |
SQN and Affiliates(4)
|
| | | | 437,333 | | | | | | 3.37% | | | | | | 5,434,040 | | | | | | 11.27% | | | | | | 5,871,373 | | | | | | 9.60% | | |
Directors and Executive Officers of Tempo
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Joy Weiss
|
| | | | 2,811,613 | | | | | | 17.81% | | | | | | — | | | | | | — | | | | | | 2,811,613 | | | | | | 4.39% | | |
Ryan Benton
|
| | | | 808,037 | | | | | | 5.86% | | | | | | — | | | | | | — | | | | | | 808,037 | | | | | | 1.30% | | |
Ralph Richart
|
| | | | 575,912 | | | | | | 4.25% | | | | | | — | | | | | | — | | | | | | 575,912 | | | | | | * | | |
Matthew Granade(5)
|
| | | | 284,362 | | | | | | 2.14% | | | | | | 118,546 | | | | | | * | | | | | | 402,908 | | | | | | * | | |
Sri Chandrasekar
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Zavain Dar
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Jeffrey McAlvay
|
| | | | 5,981,297 | | | | | | 43.17% | | | | | | — | | | | | | — | | | | | | 5,981,297 | | | | | | 9.64% | | |
Jacqueline Schneider
|
| | | | 113,605 | | | | | | * | | | | | | — | | | | | | — | | | | | | 113,605 | | | | | | * | | |
All Tempo directors and executive officers as a group (eight individuals)
|
| | | | 10,574,826 | | | | | | 57.32% | | | | | | 118,546 | | | | | | * | | | | | | 10,693,372 | | | | | | 16.04% | | |
Name
|
| |
Age
|
| |
Position
|
|
Joy Weiss | | |
62
|
| | President, Chief Executive Officer and Director | |
Ryan Benton | | |
51
|
| | Chief Financial Officer, Secretary and Director | |
Behrooz Abdi | | |
60
|
| | Director | |
Matthew Granade | | |
46
|
| | Director | |
Omid Tahernia | | |
62
|
| | Director | |
Jacqueline (“Jackie”) Schneider | | |
57
|
| | Director | |
Name and Principal Position
|
| |
Year
|
| |
Salary
($)(1) |
| |
Bonus ($)
|
| |
Option
Awards ($)(2) |
| |
Non-Equity
Incentive Plan Compensation ($) |
| |
All Other
Compensation ($) |
| |
Total
|
| |||||||||||||||||||||
Joy Weiss
|
| | | | 2021 | | | | | | 450,075 | | | | | | — | | | | | | 1,543,727 | | | | | | — | | | | | | — | | | | | | 1,993,802 | | |
President and Chief Executive Officer
|
| | | | 2020 | | | | | | 390,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 390,000 | | |
Ryan Benton
|
| | | | 2021 | | | | | | 375,075 | | | | | | — | | | | | | 186,397 | | | | | | — | | | | | | — | | | | | | 561,472 | | |
Chief Financial Officer
|
| | | | 2020 | | | | | | 149,772 | | | | | | — | | | | | | 502,332 | | | | | | — | | | | | | — | | | | | | 652,104 | | |
Ralph Richart
|
| | | | 2021 | | | | | | 342,583 | | | | | | — | | | | | | 250,647 | | | | | | — | | | | | | — | | | | | | 593,230 | | |
Chief Technology Officer
|
| | | | 2020 | | | | | | 295,000 | | | | | | — | | | | | | 194,587 | | | | | | — | | | | | | — | | | | | | 489,587 | | |
| | | | | | | | | | | |
Option Awards
|
| ||||||||||||||||||||||||
Name
|
| |
Grant Date
|
| |
Vesting Start
Date |
| |
Notes
|
| |
Number of
Securities Underlying Unexercised Options (#) Exercisable |
| |
Number of
Securities Underlying Unexercised Options (#) Unexercisable |
| |
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) |
| |
Option
Exercise Price ($) |
| |
Option
Expiration Date |
| ||||||||||||
Joy Weiss
|
| |
4/27/2015
|
| |
1/26/2015
|
| |
(1)(5)(6)(8)
|
| | | | 31,250 | | | | | | | | | | | | | | | | | | 0.046 | | | |
4/26/2025
|
|
| | |
1/20/2016
|
| |
12/17/2015
|
| |
(1)(5)(6)(8)
|
| | | | 60,000 | | | | | | | | | | | | | | | | | | 0.33 | | | |
1/19/2026
|
|
| | |
1/24/2018
|
| |
12/18/2017
|
| |
(1)(5)(6)(8)
|
| | | | 100,000 | | | | | | | | | | | | | | | | | | 0.97 | | | |
1/23/2028
|
|
| | |
11/8/2019
|
| |
9/23/2019
|
| |
(1)(5)(6)
|
| | | | 1,519,205 | | | | | | | | | | | | | | | | | | 1.46 | | | |
11/7/2029
|
|
| | |
3/29/2021
|
| |
N/A
|
| |
(2)(6)
|
| | | | | | | | | | | | | | | | 508,227 | | | | | | 0.94 | | | |
3/28/2031
|
|
| | |
3/29/2021
|
| |
9/23/2021
|
| |
(1)(5)(6)
|
| | | | 127,056 | | | | | | 889,398 | | | | | | | | | | | | 0.94 | | | |
3/28/2031
|
|
Ryan Benton
|
| |
7/29/2020
|
| |
N/A
|
| |
(2) (5)(6)
|
| | | | | | | | | | | | | | | | 258,368 | | | | | | 0.94 | | | |
7/28/2030
|
|
| | |
7/29/2020
|
| |
7/13/2020
|
| |
(3)(6)(7)
|
| | | | 290,664 | | | | | | 484,441 | | | | | | | | | | | | 0.94 | | | |
7/28/2030
|
|
| | |
7/3/2021
|
| |
7/2/2021
|
| |
(3)(5)(6)
|
| | | | | | | | | | 275,365 | | | | | | | | | | | | 2.82 | | | |
7/2/2031
|
|
Ralph Richart
|
| |
8/3/2018
|
| |
8/2/2018
|
| |
(1)(5)(6)
|
| | | | 7,500 | | | | | | | | | | | | | | | | | | 0.97 | | | |
8/2/2028
|
|
| | |
7/25/2019
|
| |
4/30/2019
|
| |
(3)(5)(6)
|
| | | | 73,333 | | | | | | 3,6667 | | | | | | | | | | | | 1.46 | | | |
7/24/2029
|
|
| | |
7/29/2020
|
| |
7/29/2020
|
| |
(4)(5)(6)
|
| | | | 58,125 | | | | | | 105,995 | | | | | | | | | | | | 0.94 | | | |
7/28/2030
|
|
| | |
11/4/2020
|
| |
11/4/2020
|
| |
(4)(5)(6)
|
| | | | 67,212 | | | | | | 163,232 | | | | | | | | | | | | 0.94 | | | |
11/3/2030
|
|
| | |
3/29/2021
|
| |
N/A
|
| |
(6)(9)
|
| | | | | | | | | | | | | | | | 254,113 | | | | | | 0.94 | | | |
3/28/2031
|
|
Name
|
| |
Fees
Earned or Paid in Cash ($) |
| |
Option
Awards ($)(1)(2) |
| |
All
Other Compensation ($) |
| |
Total ($)
|
| ||||||||||||
Matthew Granade
|
| | | | — | | | | | | 307,457 | | | | | | — | | | | | | 307,457 | | |
Jacqueline Dee Schneider
|
| | | | — | | | | | | 128,399 | | | | | | 1,241(3) | | | | | | 129,640 | | |
|
•
Annual cash retainer
|
| | | $ | 42,000 | | |
|
•
Additional annual retainer for the chairperson of the Board
|
| | | $ | 40,000 | | |
|
•
Additional annual retainer for the lead independent director
|
| | | $ | 15,000 | | |
|
•
Annual cash retainer for service as the Chair of a Committee of the Board:
|
| | |||||
|
•
Audit Committee
|
| | | $ | 20,000 | | |
|
•
Compensation Committee
|
| | | $ | 15,000 | | |
|
•
Nominating and Governance Committee
|
| | | $ | 10,000 | | |
|
•
Annual cash retainer for service as a member (non-Chair) of a Committee of the Board:
|
| | |||||
|
•
Audit Committee
|
| | | $ | 10,000 | | |
|
•
Compensation Committee
|
| | | $ | 7,500 | | |
|
•
Nominating and Governance Committee
|
| | | $ | 5,000 | | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Number of
Ordinary Shares(2) |
| |
% of Class A
Ordinary Shares |
| |
% of Class B
Ordinary Shares |
| |
% of ACE
Ordinary Shares(2) |
| |
Assuming No Redemptions
|
| |
Assuming Max Redemptions
|
| ||||||||||||||||||||||||||||||
Name and Address of
Beneficial Owner(1) |
| |
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| ||||||||||||||||||||||||||||||||||||
5% Holders of ACE | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ACE Convergence Acquisition
LLC(3) |
| | | | 3,160,570 | | | | | | — | | | | | | 54.97% | | | | | | 37.21% | | | | | | 2,707,738 | | | | | | 10.09% | | | | | | 2,521,908 | | | | | | 9.68% | | |
Sunny Siu(4)
|
| | | | 1,678,500 | | | | | | — | | | | | | 29.19% | | | | | | 19.76% | | | | | | 1,078,500 | | | | | | 4.14% | | | | | | 1,078,500 | | | | | | 4.02% | | |
ACE Equity Partners International Pte. Ltd(11)
|
| | | | 755,930 | | | | | | — | | | | | | 13.15% | | | | | | 8.90% | | | | | | 2,347,517 | | | | | | 8.74% | | | | | | 2,347,517 | | | | | | 9.01% | | |
Castle Creek Arbitrage, LLC(14)
|
| | | | 688,810 | | | | | | 25.12% | | | | | | — | | | | | | 8.11% | | | | | | 688,810 | | | | | | 2.57% | | | | | | 688,810 | | | | | | 2.64% | | |
Weiss Asset Management LP(15)
|
| | | | 759,026 | | | | | | 27.67% | | | | | | — | | | | | | 8.94% | | | | | | 759,026 | | | | | | 2.83% | | | | | | 759,026 | | | | | | 2.91% | | |
Linden Advisors LP(16)
|
| | | | 1,159,594 | | | | | | 42.27% | | | | | | — | | | | | | 13.65% | | | | | | 1,159,594 | | | | | | 4.32% | | | | | | 1,159,594 | | | | | | 4.45% | | |
Directors and Executive Officers Pre-Business Combination
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Behrooz Abdi(5)
|
| | | | 3,160,570 | | | | | | — | | | | | | 54.97% | | | | | | 37.21% | | | | | | 2,707,738 | | | | | | 10.09% | | | | | | 2,521,908 | | | | | | 9.68% | | |
Denis Tse(12)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Minyoung Park
|
| | | | 10,000 | | | | | | — | | | | | | * | | | | | | * | | | | | | 10,000 | | | | | | * | | | | | | 10,000 | | | | | | * | | |
Kenneth Klein
|
| | | | 40,000 | | | | | | — | | | | | | * | | | | | | * | | | | | | 40,000 | | | | | | * | | | | | | 40,000 | | | | | | * | | |
Omid Tahernia
|
| | | | 35,000 | | | | | | — | | | | | | * | | | | | | * | | | | | | 35,000 | | | | | | * | | | | | | 35,000 | | | | | | * | | |
Ryan Benton(6)
|
| | | | 35,000 | | | | | | — | | | | | | * | | | | | | * | | | | | | 176,414 | | | | | | * | | | | | | 176,414 | | | | | | * | | |
Raquel Chmielewski
|
| | | | 35,000 | | | | | | — | | | | | | * | | | | | | * | | | | | | 35,000 | | | | | | * | | | | | | 35,000 | | | | | | * | | |
All ACE directors and executive officers as a group
(seven individuals) |
| | | | 3,315,570 | | | | | | — | | | | | | 57.66% | | | | | | 39.04% | | | | | | 3,004,152 | | | | | | 11.13% | | | | | | 2,818,322 | | | | | | 10.76% | | |
Directors and Executive Officers Post-Business Combination
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Behrooz Abdi(5)
|
| | | | 3,160,570 | | | | | | — | | | | | | 54.97% | | | | | | 37.21% | | | | | | 2,707,738 | | | | | | 10.09% | | | | | | 2,521,908 | | | | | | 9.68% | | |
Joy Weiss(7)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 492,058 | | | | | | 1.80% | | | | | | 492,058 | | | | | | 1.85% | | |
Ryan Benton(6)
|
| | | | 35,000 | | | | | | — | | | | | | * | | | | | | * | | | | | | 176,414 | | | | | | * | | | | | | 176,414 | | | | | | * | | |
Matthew Granade
|
| | | | — | | | | | | — | | | | | | * | | | | | | * | | | | | | 70,513 | | | | | | * | | | | | | 70,513 | | | | | | * | | |
Omid Tahernia
|
| | | | 35,000 | | | | | | — | | | | | | * | | | | | | * | | | | | | 35,000 | | | | | | * | | | | | | 35,000 | | | | | | * | | |
Jacqueline Dee Schneider
|
| | | | — | | | | | | — | | | | | | * | | | | | | * | | | | | | 19,882 | | | | | | * | | | | | | 19,882 | | | | | | * | | |
All New Tempo directors and executive officers as a group
(6 individuals) |
| | | | 3,230,570 | | | | | | — | | | | | | 56.18% | | | | | | 38.04% | | | | | | 3,501,604 | | | | | | 12.70% | | | | | | 3,315,774 | | | | | | 12.38% | | |
5% Holders of New Tempo Post-Business Combination
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | |
Pre-Business Combination
|
| |
Post-Business Combination
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Number of
Ordinary Shares(2) |
| |
% of Class A
Ordinary Shares |
| |
% of Class B
Ordinary Shares |
| |
% of ACE
Ordinary Shares(2) |
| |
Assuming No
Redemptions |
| |
Assuming Max
Redemptions |
| ||||||||||||||||||||||||||||||
Name and Address of
Beneficial Owner(1) |
| |
Number of
Shares |
| |
%
|
| |
Number of
Shares |
| |
%
|
| ||||||||||||||||||||||||||||||||||||
Point72 Ventures Investments,
LLC(9) |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 6,830,105 | | | | | | 25.44% | | | | | | 6,830,105 | | | | | | 26.22% | | |
Lux Ventures IV, L.P.(8)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,847,047 | | | | | | 14.33% | | | | | | 3,707,674 | | | | | | 14.23% | | |
SQN and Affiliates(17)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,720,881 | | | | | | 13.86% | | | | | | 4,677,869 | | | | | | 17.96% | | |
Structural and Affiliates(18)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,093,089 | | | | | | 7.80% | | | | | | 2,615,655 | | | | | | 10.04% | | |
Name
|
| |
Shares of Series A
Preferred Stock |
| |
Total Purchase
Price |
| ||||||
Lux Ventures IV, L.P.(1)
|
| | | | 5,222,387 | | | | | $ | 6,000,000.43 | | |
Total | | | | | 5,222,387 | | | | | $ | 6,000,000.43 | | |
Name
|
| |
Shares of Series B
Preferred Stock |
| |
Total Purchase
Price |
| ||||||
Lux Ventures IV, L.P.(1)
|
| | | | 1,606,888 | | | | | $ | 4,429,680.84 | | |
Point72 Ventures Investments, LLC(2)
|
| | | | 2,176,528 | | | | | $ | 5,999,997.74 | | |
Total | | | | | 3,783,416 | | | | | $ | 10,429,678.58 | | |
Name
|
| |
Shares of Series C
Preferred Stock |
| |
Total Purchase
Price |
| ||||||
Alcor Investments, LLC(1)
|
| | | | 118,546 | | | | | $ | 444,441.76 | | |
Lux Ventures IV, L.P.(2)
|
| | | | 933,555 | | | | | $ | 3,499,998.52 | | |
Point72 Ventures Investments, LLC(3)
|
| | | | 8,001,903 | | | | | $ | 29,999,998.59 | | |
Total | | | | | 15,232,197 | | | | | $ | 33,499,997.11 | | |
| | |
Delaware
|
| |
Cayman Islands
|
|
Stockholder/Shareholder Approval of Business Combinations
|
| |
Mergers generally require approval of a majority of all outstanding shares.
Mergers in which less than 20% of the acquirer’s stock is issued generally do not require acquirer stockholder approval.
Mergers in which one corporation owns 90% or more of a second corporation may be completed without the vote of the second corporation’s board of directors or stockholders.
The Proposed Organizational Documents will not alter any of these provisions.
|
| |
Mergers require a special resolution, and any other authorization as may be specified in the relevant articles of association. Parties holding certain security interests in the constituent companies must also consent.
All mergers (other than parent/subsidiary mergers) require shareholder approval — there is no exception for smaller mergers.
Where a bidder, through a tender offer has received acceptance, of at least 90% or more of the shares in a Cayman Islands company to which the offer relates, it can compulsorily acquire the shares of the remaining shareholders and thereby become the sole shareholder.
A Cayman Islands company may also be acquired through a “scheme of arrangement” sanctioned by a Cayman Islands court and approved by 50%+1 in number and 75% in value of shareholders in attendance and voting at a shareholders’ meeting.
|
|
| | |
Delaware
|
| |
Cayman Islands
|
|
Stockholder/Shareholder Votes for Routine Matters
|
| | Generally, approval of routine corporate matters that are put to a stockholder vote require the affirmative vote of the majority of shares present in person or represented by proxy at the meeting and entitled to vote on the subject matter. The Proposed Organizational Documents will not alter this provision. | | | Under the Cayman Islands Companies Act and the Cayman Constitutional Documents, routine corporate matters may be approved by an ordinary resolution (being a resolution passed by a simple majority of the shareholders as being entitled to do so). | |
Appraisal Rights
|
| | Generally, a stockholder of a publicly traded corporation does not have appraisal rights in connection with a merger. The Proposed Organizational Documents will not provide for appraisal rights. | | | Minority shareholders that dissent from a merger are entitled to be paid the fair market value of their shares, which if necessary may ultimately be determined by the court. | |
Inspection of Books and Records
|
| | Any stockholder may inspect the corporation’s books and records for a proper purpose during the usual hours for business. | | | Shareholders generally do not have any rights to inspect or obtain copies of the register of shareholders or other corporate records of a company. | |
Stockholder/Shareholder Lawsuits
|
| | A stockholder may bring a derivative suit subject to procedural requirements (including adopting Delaware as the exclusive forum as per Organizational Documents Proposal D). | | | In the Cayman Islands, the decision to institute proceedings on behalf of a company is generally taken by the company’s board of directors. A shareholder may be entitled to bring a derivative action on behalf of the company, but only in certain limited circumstances. | |
Fiduciary Duties of Directors
|
| | Directors must exercise a duty of care and duty of loyalty and good faith to the company and its stockholders. | | |
A director owes fiduciary duties to a company, including to exercise loyalty, honesty, and good faith to the company as a whole.
In addition to fiduciary duties, directors of ACE owe a duty of care, diligence, and skill.
Such duties are owed to the company but may be owed direct to creditors or shareholders in certain limited circumstances.
|
|
| | |
Delaware
|
| |
Cayman Islands
|
|
Indemnification of Directors and Officers
|
| | A corporation is generally permitted to indemnify its directors and officers acting in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation. The Proposed Certificate of Incorporation will provide for indemnification of directors to the extent permissible under Delaware law. | | | A Cayman Islands company generally may indemnify its directors or officers except with regard to fraud or willful default. | |
Limited Liability of Directors
|
| | Delaware law permits limiting or eliminating the monetary liability of a director to a corporation or its stockholders, except with regard to breaches of duty of loyalty, intentional misconduct, unlawful repurchases or dividends, or improper personal benefit. The Proposed Certificate of Incorporation will limit a director’s liability to the extent permissible under Delaware law. | | | Liability of directors may be limited, except with regard to their own fraud or willful default. | |
Corporate Opportunity
|
| | The Proposed Certificate of Incorporation will be silent on the issue of the application of the doctrine of corporate opportunity. | | | The Cayman Constitutional Documents provide that ACE renounces its interest in any corporate opportunity offered to any director or officer of ACE which may be an opportunity for such director, on the one hand, or ACE, on the other. | |
| | |
Page
|
|
Audited Consolidated Financial Statements | | | | |
| | | ||
| | | ||
| | | ||
| | | ||
| | | ||
| | |
| Unaudited Condensed Consolidated Financial Statements | | | | |
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | |
|
TEMPO AUTOMATION, INC.
|
| |||
| Audited Financial Statements | | | | |
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | |
| Unaudited Condensed Financial Statements | | | | |
| | | | ||
| | | | ||
| | | | ||
| | | | ||
| | | |
| | |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 8,390 | | | | | $ | 792,416 | | |
Prepaid expenses
|
| | | | 113,140 | | | | | | 343,839 | | |
Total Current Assets
|
| | | | 121,530 | | | | | | 1,136,255 | | |
Cash and marketable securities held in Trust Account
|
| | | | 230,158,259 | | | | | | 230,091,362 | | |
TOTAL ASSETS
|
| | | $ | 230,279,789 | | | | | $ | 231,227,617 | | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 6,260,642 | | | | | $ | 859,811 | | |
Promissory note – related party
|
| | | | 527,756 | | | | | | — | | |
Total current liabilities
|
| | | | 6,788,398 | | | | | | 859,811 | | |
Warrant liability
|
| | | | 12,766,082 | | | | | | 25,489,000 | | |
Deferred underwriting fee payable
|
| | | | 8,050,000 | | | | | | 8,050,000 | | |
TOTAL LIABILITIES
|
| | | | 27,604,480 | | | | | | 34,398,811 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A ordinary shares subject to possible redemption, 23,000,000 shares issued and outstanding at redemption value of $10.00 per share
|
| | | | 230,000,000 | | | | | | 230,000,000 | | |
Shareholders’ Deficit | | | | | | | | | | | | | |
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued or outstanding
|
| | | | — | | | | | | — | | |
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized;
excluding 23,000,000 shares subject to possible redemption |
| | | | — | | | | | | — | | |
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 shares issued and outstanding
|
| | | | 575 | | | | | | 575 | | |
Additional paid-in capital
|
| | | | — | | | | | | — | | |
Accumulated deficit
|
| | | | (27,325,266) | | | | | | (33,171,769) | | |
Total Shareholders’ Deficit
|
| | | | (27,324,691) | | | | | | (33,171,194) | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT
|
| | | $ | 230,279,789 | | | | | $ | 231,227,617 | | |
| | |
Year Ended
December 31, 2021 |
| |
For the Period
from March 31, 2020 (Inception) through December 31, 2020 |
| ||||||
Operating costs
|
| | | $ | 6,943,312 | | | | | $ | 1,125,460 | | |
Loss from operations
|
| | | | (6,943,312) | | | | | | (1,125,460) | | |
Other income (expense): | | | | | | | | | | | | | |
Change in fair value of warrant liability
|
| | | | 12,722,918 | | | | | | (7,487,000) | | |
Offering costs allocated to warrant liability
|
| | | | — | | | | | | (667,259) | | |
Interest earned on marketable securities held in Trust Account
|
| | | | 66,897 | | | | | | 91,362 | | |
Total other income (expense), net
|
| | |
|
12,789,815
|
| | | |
|
(8,062,897)
|
| |
Net income (loss)
|
| | | $ | 5,846,503 | | | | | $ | (9,188,357) | | |
Weighted average shares outstanding of Class A ordinary shares
|
| | | | 23,000,000 | | | | | | 16,353,211 | | |
Basic and diluted net income (loss) per ordinary share, Class A
|
| | | $ | 0.20 | | | | | $ | (0.42) | | |
Weighted average shares outstanding of Class B ordinary shares
|
| | | | 5,750,000 | | | | | | 5,529,817 | | |
Basic and diluted net income (loss) per ordinary share, Class B
|
| | | $ | 0.20 | | | | | $ | (0.42) | | |
| | |
Class A
Ordinary Shares |
| |
Class B
Ordinary Shares |
| |
Additional
Paid-in Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – March 31, 2020 (inception)
|
| | | | — | | | | | $ | — | | | | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Issuance of Class B ordinary shares to Sponsor
|
| | | | — | | | | | | — | | | | | | 5,750,000 | | | | | | 575 | | | | | | 24,425 | | | | | | — | | | | | | 25,000 | | |
Accretion for Class A ordinary shares subject to redemption amount
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (24,425) | | | | | | (23,983,412) | | | | | | (24,007,837) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (9,188,357) | | | | | | (9,188,357) | | |
Balance – December 31, 2020
|
| | |
|
—
|
| | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (33,171,769) | | | | | $ | (33,171,194) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 5,846,503 | | | | | | 5,846,503 | | |
Balance – December 31, 2021
|
| | |
|
—
|
| | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (27,325,266) | | | | | $ | (27,324,691) | | |
| | |
Year Ended
December 31, 2021 |
| |
For the Period
from March 31, 2020 (Inception) through December 31, 2020 |
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 5,846,503 | | | | | $ | (9,188,357) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on marketable securities held in Trust Account
|
| | | | (66,897) | | | | | | (91,362) | | |
Change in fair value of warrant liability
|
| | | | (12,722,918) | | | | | | 7,487,000 | | |
Offering cost allocated to warrants
|
| | | | — | | | | | | 667,259 | | |
Payment of formation costs through promissory note- related party
|
| | | | — | | | | | | 1,548 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | 230,699 | | | | | | (343,839) | | |
Accounts payable and accrued expenses
|
| | | | 5,400,831 | | | | | | 859,811 | | |
Net cash used in operating activities
|
| | | | (1,311,782) | | | | | | (607,940) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash in Trust Account
|
| | | | — | | | | | | (230,000,000) | | |
Net cash used in investing activities
|
| | | | — | | | | |
|
(230,000,000)
|
| |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from issuance of Class B ordinary shares to Sponsor
|
| | | | — | | | | | | 25,000 | | |
Proceeds from sale of Units, net of underwriting discounts paid
|
| | | | — | | | | | | 225,400,000 | | |
Proceeds from sale of Private Placement Warrants
|
| | | | — | | | | | | 6,600,000 | | |
Proceeds from promissory note – related party
|
| | | | 527,756 | | | | | | 62,558 | | |
Repayment of promissory note – related party
|
| | | | — | | | | | | (186,760) | | |
Payment of offering costs
|
| | | | — | | | | | | (500,442) | | |
Net cash provided by financing activities
|
| | | | 527,756 | | | | | | 231,400,356 | | |
Net Change in Cash
|
| | | | (784,026) | | | | | | 792,416 | | |
Cash – Beginning
|
| | | | 792,416 | | | | |
|
—
|
| |
Cash – Ending | | | | $ | 8,390 | | | | | $ | 792,416 | | |
Non-cash investing and financing activities: | | | | | | | | | | | | | |
Offering costs paid through promissory note – related party
|
| | | $ | — | | | | | $ | 122,654 | | |
Deferred underwriting fee payable
|
| | | $ | — | | | | | $ | 8,050,000 | | |
|
Gross proceeds
|
| | | $ | 230,000,000 | | |
| Less: | | | | | | | |
|
Proceeds allocated to Public Warrants
|
| | | | (11,270,000) | | |
|
Class A ordinary shares issuance costs
|
| | | | (12,737,837) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 24,007,837 | | |
|
Class A ordinary shares subject to possible redemption
|
| | | $ | 230,000,000 | | |
| | |
Year Ended
December 31, 2021 |
| |
For the Period from
March 31, 2020 (Inception) through December 31, 2020 |
| ||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||
Basic and diluted net income (loss) per ordinary share
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income (loss), as adjusted
|
| | | $ | 4,677,202 | | | | | $ | 1,169,301 | | | | | $ | (7,350,686) | | | | | $ | (1,837,671) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares outstanding
|
| | | | 23,000,000 | | | | | | 5,750,000 | | | | | | 16,353,211 | | | | | | 5,529,817 | | |
Basic and diluted net income (loss) per ordinary share
|
| | | $ | 0.20 | | | | | $ | 0.20 | | | | | $ | (0.42) | | | | | $ | (0.42) | | |
| | |
Held-To-Maturity
|
| |
Amortized
Cost |
| |
Gross
Holding Gain |
| |
Fair
Value |
| |||||||||
December 31, 2020
|
| |
U.S. Treasury Securities (Matured on 1/28/21)*
|
| | | | 230,091,280 | | | | | | 7,515 | | | | | | 230,098,795 | | |
Description
|
| |
Markets
(level) |
| |
December 31,
2021 |
| |
December 31,
2020 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Cash and marketable securities held in Trust Account
|
| | | | 1 | | | | | $ | 230,157,661 | | | | | $ | 230,098,795 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Warrant Liability – Public Warrants
|
| | | | 1 | | | | | $ | 7,820,000 | | | | | $ | 15,985,000 | | |
Warrant Liability – Private Placement
|
| | | | 3 | | | | | $ | 4,946,082 | | | | | $ | 9,504,000 | | |
Input:
|
| |
December 31,
2021 |
| |
December 31,
2020 |
| ||||||
Risk-free interest rate
|
| | | | 1.26% | | | | | | 0.36% | | |
Expected term (years)
|
| | | | 5.28 | | | | | | 5.49 | | |
Expected volatility
|
| | | | 18.8% | | | | | | 22.7% | | |
Exercise price
|
| | | $ | 11.50 | | | | | $ | 11.50 | | |
Stock Price
|
| | | $ | 9.96 | | | | | $ | 10.22 | | |
| | |
Private
Placement |
| |
Public
|
| ||||||
Fair value as of May 28, 2020
|
| | | | — | | | | | | — | | |
Initial measurement on July 30, 2020
|
| | | $ | 6,732,000 | | | | | $ | 11,270,000 | | |
Transfer from Level 3 to Level 1
|
| | | | — | | | | | | (11,270,000) | | |
Change in fair value
|
| | | | 2,772,000 | | | | | | — | | |
Fair value as of December 31, 2020
|
| | | $ | 9,504,000 | | | | | | — | | |
Change in fair value
|
| | | | (4,557,918) | | | | | | — | | |
Fair value as of December 31, 2021
|
| | | $ | 4,946,082 | | | | | | — | | |
| | |
June 30,
2022 |
| |
December 31,
2021 |
| ||||||
| | |
(Unaudited)
|
| | | | | | | |||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | — | | | | | $ | 8,390 | | |
Prepaid expenses
|
| | | | 46,945 | | | | | | 113,140 | | |
Total Current Assets
|
| | | | 46,945 | | | | | | 121,530 | | |
Cash and marketable securities held in Trust Account
|
| | | | 83,421,902 | | | | | | 230,158,259 | | |
TOTAL ASSETS
|
| | | $ | 83,468,847 | | | | | $ | 230,279,789 | | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses
|
| | | $ | 7,691,833 | | | | | $ | 6,260,642 | | |
Promissory note – related party
|
| | | | 829,295 | | | | | | 527,756 | | |
Advance from related party
|
| | | | 277,426 | | | | | | — | | |
Convertible promissory note
|
| | | | 1,500,000 | | | | | | — | | |
Total current liabilities
|
| | | | 10,298,554 | | | | | | 6,788,398 | | |
Warrant liability
|
| | | | 1,448,000 | | | | | | 12,766,082 | | |
Deferred underwriting fee payable
|
| | | | 8,050,000 | | | | | | 8,050,000 | | |
TOTAL LIABILITIES
|
| | | | 19,796,554 | | | | | | 27,604,480 | | |
Commitments and Contingencies | | | | | | | | | | | | | |
Class A ordinary shares subject to possible redemption, 8,202,277 and 23,000,000 shares issued and outstanding at redemption value of $10.17 and $10.00 per share at June 30, 2022 and December 31, 2021, respectively
|
| | | | 83,421,902 | | | | | | 230,000,000 | | |
Shareholders’ Deficit | | | | | | | | | | | | | |
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued or outstanding
|
| | | | — | | | | | | — | | |
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized;
no shares issued or outstanding excluding 8,202,277 and 23,000,000 shares subject to possible redemption at June 30, 2022 and December 31, 2021, respectively |
| | | | — | | | | | | — | | |
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 shares issued and outstanding at June 30, 2022 and December 31, 2021
|
| | | | 575 | | | | | | 575 | | |
Additional paid-in capital
|
| | | | — | | | | | | — | | |
Accumulated deficit
|
| | | | (19,750,184) | | | | | | (27,325,266) | | |
Total Shareholders’ Deficit
|
| | | | (19,749,609) | | | | | | (27,324,691) | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ DEFICIT
|
| | | $ | 83,468,847 | | | | | $ | 230,279,789 | | |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||
| | |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||
Operating costs
|
| | | $ | 1,215,503 | | | | | $ | 885,864 | | | | | $ | 2,354,400 | | | | | $ | 2,138,846 | | |
Loss from operations
|
| | | | (1,215,503) | | | | | | (885,864) | | | | | | (2,354,400) | | | | | | (2,138,846) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrant liability
|
| | | | 11,245,389 | | | | | | (171,825) | | | | | | 11,318,082 | | | | | | (10,483,385) | | |
Interest earned on cash and marketable securities held in Trust Account
|
| | | | 105,409 | | | | | | 15,095 | | | | | | 113,123 | | | | | | 55,208 | | |
Total other income (expense), net
|
| | | | 11,350,798 | | | | | | (156,730) | | | | | | 11,431,205 | | | | | | (10,428,177) | | |
Net income (loss)
|
| | | $ | 10,135,295 | | | | | $ | (1,042,594) | | | | | $ | 9,076,805 | | | | | $ | (12,567,023) | | |
Weighted average shares outstanding of Class A ordinary shares
|
| | | | 8,202,277 | | | | | | 23,000,000 | | | | | | 9,928,678 | | | | | | 23,000,000 | | |
Basic and diluted net income (loss) per share, Class A ordinary shares
|
| | | $ | 0.73 | | | | | $ | (0.04) | | | | | $ | 0.58 | | | | | $ | (0.44) | | |
Weighted average shares outstanding of Class B
ordinary shares |
| | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | | | | | 5,750,000 | | |
Basic and diluted net income (loss) per share, Class B ordinary shares
|
| | | $ | 0.73 | | | | | $ | (0.04) | | | | | $ | 0.58 | | | | | $ | (0.44) | | |
| | |
Class A Ordinary
Shares |
| |
Class B Ordinary
Shares |
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2022
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (27,325,266) | | | | | $ | (27,324,691) | | |
Accretion for Class A ordinary shares to redemption amount
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (492,136) | | | | | | (492,136) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,058,490) | | | | | | (1,058,490) | | |
Balance – March 31, 2022 (unaudited)
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (28,875,892) | | | | | $ | (28,875,317) | | |
Accretion for Class A ordinary shares to redemption amount
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,009,587) | | | | | | (1,009,587) | | |
Net income
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 10,135,295 | | | | | | 10,135,295 | | |
Balance – June 30, 2022
(unaudited) |
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (19,750,184) | | | | | $ | (19,749,609) | | |
| | |
Class A Ordinary
Shares |
| |
Class B Ordinary
Shares |
| |
Additional
Paid in Capital |
| |
Accumulated
Deficit |
| |
Total
Shareholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance – January 1, 2021
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (33,171,769) | | | | | $ | (33,171,194) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (11,524,429) | | | | | | (11,524,429) | | |
Balance – March 31, 2021 (unaudited)
|
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (44,696,198) | | | | | $ | (44,695,623) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,042,594) | | | | | | (1,042,594) | | |
Balance – June 30, 2021
(unaudited) |
| | | | — | | | | | $ | — | | | | | | 5,750,000 | | | | | $ | 575 | | | | | $ | — | | | | | $ | (45,738,792) | | | | | $ | (45,738,217) | | |
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Cash Flows from Operating Activities: | | | | | | | | | | | | | |
Net income (loss)
|
| | | $ | 9,076,805 | | | | | $ | (12,567,023) | | |
Adjustments to reconcile net income (loss) to net cash used in operating activities:
|
| | | | | | | | | | | | |
Interest earned on cash and marketable securities held in Trust
Account |
| | | | (113,123) | | | | | | (55,209) | | |
Change in fair value of warrant liability
|
| | | | (11,318,082) | | | | | | 10,483,385 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Prepaid expenses
|
| | | | 66,195 | | | | | | 107,811 | | |
Accounts payable and accrued expenses
|
| | | | 1,431,191 | | | | | | 1,150,713 | | |
Net cash used in operating activities
|
| | | | (857,014) | | | | | | (880,323) | | |
Cash Flows from Investing Activities: | | | | | | | | | | | | | |
Investment of cash into Trust Account
|
| | | | (1,230,341) | | | | | | — | | |
Cash withdrawn from Trust Account in connection with redemption
|
| | | | 148,079,821 | | | | | | — | | |
Net cash provided by investing activities
|
| | | | 146,849,480 | | | | | | — | | |
Cash Flows from Financing Activities: | | | | | | | | | | | | | |
Proceeds from promissory note – related party
|
| | | | 301,539 | | | | | | 90,000 | | |
Advance from related party
|
| | | | 277,426 | | | | | | | | |
Convertible promissory note
|
| | | | 1,500,000 | | | | | | | | |
Redemption of ordinary shares
|
| | | | (148,079,821) | | | | | | — | | |
Net cash (used in) provided financing activities
|
| | | | (146,000,856) | | | | | | 90,000 | | |
Net Change in Cash
|
| | | | (8,390) | | | | | | (790,323) | | |
Cash – Beginning of period
|
| | | | 8,390 | | | | | | 792,416 | | |
Cash – End of period
|
| | | $ | — | | | | | $ | 2,093 | | |
|
Gross proceeds
|
| | | $ | 230,000,000 | | |
| Less: | | | | | | | |
|
Proceeds allocated to Public Warrants
|
| | | | (11,270,000) | | |
|
Class A ordinary shares issuance costs
|
| | | | (12,737,837) | | |
| Plus: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 24,007,837 | | |
|
Class A ordinary shares subject to possible redemption, December 31, 2021
|
| | | $ | 230,000,000 | | |
| Less: | | | | | | | |
|
Redemption of Class A Ordinary Shares
|
| | | | (148,079,821) | | |
| Add: | | | | | | | |
|
Accretion of carrying value to redemption value
|
| | | | 1,009,587 | | |
|
Class A ordinary shares subject to possible redemption, June 30, 2022
|
| | |
$
|
83,421,902
|
| |
| | |
Three Months Ended
June 30, |
| |
Six Months Ended
June 30, |
| ||||||||||||||||||||||||||||||||||||||||||
| | |
2022
|
| |
2021
|
| |
2022
|
| |
2021
|
| ||||||||||||||||||||||||||||||||||||
| | |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| |
Class A
|
| |
Class B
|
| ||||||||||||||||||||||||
Basic and diluted net income (loss) per ordinary share
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Numerator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allocation of net income
(loss) |
| | | $ | 5,958,346 | | | | | $ | 4,176,949 | | | | | $ | (834,075) | | | | | | (208,519) | | | | | $ | 5,747,977 | | | | | $ | 3,328,828 | | | | | $ | (10,053,618) | | | | | | (2,513,405) | | |
Denominator: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted weighted average shares
outstanding |
| | | | 8,202,277 | | | | | | 5,750,000 | | | | | | 23,000,000 | | | | | | 5,750,000 | | | | | | 9,928,678 | | | | | | 5,750,000 | | | | | | 23,000,000 | | | | | | 5,750,000 | | |
Basic and diluted net income
(loss) per ordinary share |
| | | $ | 0.73 | | | | | $ | 0.73 | | | | | $ | (0.04) | | | | | | (0.04) | | | | | $ | 0.58 | | | | | $ | 0.58 | | | | | $ | (0.44) | | | | | | (0.44) | | |
Description
|
| |
Markets
(level) |
| |
June 30,
2022 |
| |
December 31,
2021 |
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Cash and Marketable Securities held in Trust Account
|
| | | | 1 | | | | | $ | 83,421,902 | | | | | $ | 230,158,259 | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Warrant Liability – Public Warrants
|
| | | | 1 | | | | | $ | 920,000 | | | | | $ | 7,820,000 | | |
Warrant Liability – Private Placement
|
| | | | 3 | | | | | $ | 528,000 | | | | | $ | 4,946,082 | | |
Input:
|
| |
December 31,
2021 |
| |||
Risk-free interest rate
|
| | | | 1.26% | | |
Expected term (years)
|
| | | | 5.28 | | |
Expected volatility
|
| | | | 18.8% | | |
Exercise price
|
| | | $ | 11.50 | | |
Stock Price
|
| | | $ | 9.96 | | |
| | |
Private
Placement |
| |
Public
|
| ||||||
Fair value as of January 1, 2022
|
| | | | 4,946,082 | | | | | | — | | |
Change in fair value
|
| | | | (295,793) | | | | | | — | | |
Fair value as of March 31, 2022
|
| | | $ | 4,650,289 | | | | | | — | | |
Change in fair value
|
| | | | (4,122,289) | | | | | | — | | |
Fair value as of June 30, 2022
|
| | | $ | 528,000 | | | | | | — | | |
| | |
Private
Placement |
| |
Public
|
| ||||||
Fair value as of January 1, 2021
|
| | | | 9,504,000 | | | | | | — | | |
Change in fair value
|
| | | | 3,871,560 | | | | | | — | | |
Fair value as of March 31, 2021
|
| | | $ | 13,375,560 | | | | | | — | | |
Change in fair value
|
| | | | (115,675) | | | | | | — | | |
Fair value as of June 30, 2021
|
| | | $ | 13,259,885 | | | | | | — | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,864 | | | | | $ | 17,340 | | |
Accounts receivable, net
|
| | | | 2,918 | | | | | | 2,713 | | |
Inventory
|
| | | | 879 | | | | | | 168 | | |
Contract assets
|
| | | | 1,219 | | | | | | 608 | | |
Prepaid expenses and other current assets
|
| | | | 892 | | | | | | 535 | | |
Total current assets
|
| | | | 8,772 | | | | | | 21,364 | | |
Property and equipment, net
|
| | | | 8,891 | | | | | | 10,602 | | |
Operating leases – right of use asset
|
| | | | 1,323 | | | | | | 2,109 | | |
Restricted cash
|
| | | | 320 | | | | | | 406 | | |
Other noncurrent assets
|
| | | | 2,925 | | | | | | 257 | | |
Total assets
|
| | | $ | 22,231 | | | | | $ | 34,738 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ DEFICIT
|
| | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 1,583 | | | | | $ | 467 | | |
Contract liabilities
|
| | | | 175 | | | | | | 80 | | |
Accrued liabilities
|
| | | | 3,971 | | | | | | 933 | | |
Accrued compensation and related benefits
|
| | | | 1,249 | | | | | | 604 | | |
Operating lease liability, current
|
| | | | 1,111 | | | | | | 987 | | |
Finance lease, current
|
| | | | 1,091 | | | | | | 906 | | |
Loan payable, current
|
| | | | 10,486 | | | | | | 1,978 | | |
Total current liabilities
|
| | | | 19,666 | | | | | | 5,955 | | |
Operating lease liability, noncurrent
|
| | | | 546 | | | | | | 1,657 | | |
Finance lease, noncurrent
|
| | | | 1,606 | | | | | | 2,697 | | |
Loan payable, noncurrent
|
| | | | 11,351 | | | | | | 4,418 | | |
Other noncurrent liabilities
|
| | | | 5,573 | | | | | | 341 | | |
Total liabilities
|
| | | | 38,742 | | | | | | 15,068 | | |
Commitment and contingencies (Note 15) | | | | | | | | | | | | | |
Convertible preferred stock | | | | | | | | | | | | | |
Convertible preferred stock, $0.00001 par value. 31,058,244 and 39,982,670 shares authorized at December 31, 2021 and 2020, respectively; 29,520,187 shares issued and outstanding at December 31, 2021 and 2020 (liquidation preference of $74,496 at December 31, 2021 and 2020)
|
| | | | 75,684 | | | | | | 75,684 | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Common stock, $0.00001 par value. 63,299,666 and 66,000,000 shares authorized
at December 31, 2021 and 2020, respectively; 10,037,305 and 9,773,097 shares issued and outstanding at December 31, 2021 and 2020, respectively |
| | | | — | | | | | | — | | |
Additional paid in capital
|
| | | | 16,117 | | | | | | 4,285 | | |
Accumulated deficit
|
| | | | (108,312) | | | | | | (60,299) | | |
Total stockholders’ deficit
|
| | | | (92,195) | | | | | | (56,014) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit
|
| | | $ | 22,231 | | | | | $ | 34,738 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Revenue
|
| | | $ | 17,361 | | | | | $ | 18,724 | | |
Cost of revenue
|
| | | | 14,578 | | | | | | 14,098 | | |
Gross profit
|
| | | | 2,783 | | | | | | 4,626 | | |
Operating expenses | | | | | | | | | | | | | |
Research and development
|
| | | | 9,904 | | | | | | 6,690 | | |
Sales and marketing
|
| | | | 9,817 | | | | | | 7,892 | | |
General and administrative
|
| | | | 16,376 | | | | | | 8,613 | | |
Total operating expenses
|
| | | | 36,097 | | | | | | 23,195 | | |
Loss from operations
|
| | | | (33,314) | | | | | | (18,569) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense
|
| | | | (3,686) | | | | | | (630) | | |
Other financing cost
|
| | | | (8,955) | | | | | | — | | |
Gain on PPP loan forgiveness
|
| | | | 2,500 | | | | | | — | | |
Loss on debt extinguishment
|
| | | | (319) | | | | | | | | |
Interest income
|
| | | | 3 | | | | | | 49 | | |
Change in fair value of warrants
|
| | | | (4,242) | | | | | | 47 | | |
Total other income (expense), net
|
| | | | (14,699) | | | | | | (534) | | |
Loss before income taxes
|
| | | | (48,013) | | | | | | (19,103) | | |
Income tax provision
|
| | | | — | | | | | | 1 | | |
Net loss
|
| | | $ | (48,013) | | | | | $ | (19,104) | | |
Net loss attributable per share to common stockholders, basic and diluted
|
| | | | (4.89) | | | | | | (1.96) | | |
Weighted-average shares used to compute net loss attributable per share to common stockholders, basic and diluted
|
| | | | 9,819,576 | | | | | | 9,755,174 | | |
| | |
Convertible Preferred Stock
|
| | |
Common Stock
|
| |
Additional
Paid-in- Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at January 1, 2020
|
| | | | 29,520,187 | | | | | $ | 75,684 | | | | | | | 9,740,717 | | | | | $ | — | | | | | $ | 2,900 | | | | | $ | (41,195) | | | | | $ | (38,295) | | |
Net loss
|
| | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| | | | | — | | | | | | — | | | | | | (19,104) | | | | | | (19,104) | | |
Issuance of common stock upon exercise of stock options | | | |
|
—
|
| | | |
|
—
|
| | | | | | 18,681 | | | | | | — | | | | | | 22 | | | | | | — | | | | | | 22 | | |
Issuance of common stock awards
|
| | |
|
—
|
| | | |
|
—
|
| | | | | | 13,699 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Issuance of common stock warrants
|
| | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| | | | | — | | | | | | 107 | | | | | | — | | | | | | 107 | | |
Stock-based compensation
|
| | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| | | | | — | | | | | | 1,256 | | | | | | — | | | | | | 1,256 | | |
Balance at December 31, 2020
|
| | |
|
29,520,187
|
| | | |
|
75,684
|
| | | | |
|
9,773,097
|
| | | | | — | | | | |
|
4,285
|
| | | |
|
(60,299)
|
| | | |
|
(56,014)
|
| |
Net loss
|
| | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| | | | | — | | | | | | — | | | | | | (48,013) | | | | | | (48,013) | | |
Issuance of common stock upon exercise of stock options | | | |
|
—
|
| | | |
|
—
|
| | | | | | 264,208 | | | | | | — | | | | | | 126 | | | | | | — | | | | | | 126 | | |
Issuance of common stock warrants
|
| | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| | | | | — | | | | | | 9,168 | | | | | | — | | | | | | 9,168 | | |
Stock-based compensation
|
| | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| | | | | — | | | | | | 2,538 | | | | | | — | | | | | | 2,538 | | |
Balance at December 31, 2021
|
| | |
|
29,520,187
|
| | | | $ | 75,684 | | | | | |
|
10,037,305
|
| | | | $ | — | | | | |
$
|
16,117
|
| | | |
$
|
(108,312)
|
| | | |
$
|
(92,195)
|
| |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (48,013) | | | | | $ | (19,104) | | |
Adjustments to reconcile net loss to cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 3,770 | | | | | | 2,232 | | |
Stock-based compensation
|
| | | | 2,538 | | | | | | 1,256 | | |
Noncash other financing cost
|
| | | | 8,955 | | | | | | — | | |
Loss on debt extinguishment
|
| | | | 319 | | | | | | — | | |
Noncash operating lease expense
|
| | | | 786 | | | | | | 685 | | |
Bad debt expense
|
| | | | 91 | | | | | | 175 | | |
Change in fair value of warrants
|
| | | | 4,242 | | | | | | (47) | | |
Gain on PPP loan forgiveness
|
| | | | (2,500) | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | (297) | | | | | | 2,789 | | |
Inventory
|
| | | | (711) | | | | | | 355 | | |
Prepaid expenses and other current assets
|
| | | | (1,244) | | | | | | 252 | | |
Other noncurrent assets
|
| | | | (1,817) | | | | | | (207) | | |
Accounts payable
|
| | | | 1,109 | | | | | | (1,217) | | |
Accrued liabilities
|
| | | | 3,776 | | | | | | (467) | | |
Other noncurrent liabilities
|
| | | | (245) | | | | | | 157 | | |
Operating lease liabilities
|
| | | | (987) | | | | | | (763) | | |
Net cash used in operating activities
|
| | | | (30,228) | | | | | | (13,904) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (622) | | | | | | (2,307) | | |
Net cash used in investing activities
|
| | | | (622) | | | | | | (2,307) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from financing lease
|
| | | | — | | | | | | 4,000 | | |
Principal payments under finance lease obligations
|
| | | | (906) | | | | | | (397) | | |
Proceeds from issuance of debt
|
| | | | 33,000 | | | | | | 5,620 | | |
Payment of debt issuance costs
|
| | | | (765) | | | | | | (37) | | |
Proceeds from PPP Loan
|
| | | | — | | | | | | 2,500 | | |
Debt repayment
|
| | | | (14,998) | | | | | | (1,620) | | |
Proceeds from exercise of stock options
|
| | | | 126 | | | | | | 22 | | |
Payment of deferred transaction costs
|
| | | | (169) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 16,288 | | | | | | 10,088 | | |
Net decrease in cash, cash equivalents and restricted cash
|
| | | | (14,562) | | | | | | (6,123) | | |
Cash, cash equivalents and restricted cash at beginning of period
|
| | | | 17,746 | | | | | | 23,869 | | |
Cash, cash equivalents and restricted cash at end of period
|
| | | $ | 3,184 | | | | | $ | 17,746 | | |
Supplemental disclosures of cash flow information | | | | | | | | | | | | | |
Cash paid for income taxes
|
| | | $ | 7 | | | | | $ | 72 | | |
Cash paid for interest
|
| | | $ | 2,446 | | | | | $ | 514 | | |
Noncash investing and financing activities | | | | | | | | | | | | | |
Issuance of common stock warrants
|
| | | $ | 9,168 | | | | | $ | 107 | | |
Unpaid deferred transaction costs
|
| | | $ | 1,757 | | | | | $ | — | | |
Extinguishment of debt
|
| | | $ | 6,000 | | | | | $ | — | | |
Borrowing of debt
|
| | | $ | 6,000 | | | | | $ | — | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Accounts receivable, net
|
| | | $ | 2,918 | | | | | $ | 2,713 | | |
Contract assets
|
| | | | 1,219 | | | | | | 608 | | |
Contract liabilities
|
| | | | 175 | | | | | | 80 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cash and cash equivalents
|
| | | $ | 2,864 | | | | | $ | 17,340 | | |
Restricted cash
|
| | | | 320 | | | | | | 406 | | |
Total cash, cash equivalents and restricted cash shown in the statement of cash flows
|
| | | $ | 3,184 | | | | | $ | 17,746 | | |
| | |
Useful Lives
|
|
Computer equipment
|
| |
3
|
|
Software | | |
5
|
|
Furniture and fixtures
|
| |
3
|
|
Leasehold improvements
|
| | Shorter of useful life or remaining lease term | |
Manufacturing equipment
|
| |
10
|
|
| | |
As of
September 30, 2021 As Originally Reported |
| |
Correction of
Immaterial Error |
| |
As of
September 30, 2021 As Corrected |
| |||||||||
Balance Sheet | | | | | | | | | | | | | | | | | | | |
Other noncurrent liabilities
|
| | | $ | 3,160 | | | | | $ | 765 | | | | | $ | 3,925 | | |
Total liabilities
|
| | |
|
45,039
|
| | | |
|
765
|
| | | |
|
45,804
|
| |
Accumulated deficit
|
| | | | (83,922) | | | | | | (765) | | | | | | (84,687) | | |
Total stockholders’ deficit
|
| | |
|
(77,713)
|
| | | |
|
(765)
|
| | | |
|
(78,478)
|
| |
Statement of Operations | | | | | | | | | | | | | | | | | | | |
Other income (expense), net | | | | | | | | | | | | | | | | | | | |
Change in fair value of warrants
|
| | | | (1,575) | | | | | | (765) | | | | | | (2,340) | | |
Total other income (expense), net
|
| | | | (1,141) | | | | | | (765) | | | | | | (1,906) | | |
Net loss
|
| | | $ | (23,623) | | | | | $ | (765) | | | | | $ | (24,388) | | |
Net loss per share
|
| | | $ | (2.41) | | | | | $ | (0.07) | | | | | $ | (2.48) | | |
Statement of Cash Flows | | | | | |||||||||||||||
Net loss
|
| | | $ | (23,623) | | | | | $ | (765) | | | | | $ | (24,388) | | |
(Gain)/loss on change in fair value of warrant
liabilities |
| | | | 1,575 | | | | | | 765 | | | | | | 2,340 | | |
Net cash used in operating activities
|
| | | $ | (20,833) | | | | | $ | — | | | | | $ | (20,833) | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Raw materials
|
| | | $ | 158 | | | | | $ | 111 | | |
Work in progress
|
| | | | 721 | | | | | | 57 | | |
Total inventory
|
| | | $ | 879 | | | | | $ | 168 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Prepaid expense
|
| | | $ | 650 | | | | | $ | 458 | | |
Other current assets
|
| | | | 242 | | | | | | 77 | | |
Total prepaid expenses and other current assets
|
| | | $ | 892 | | | | | $ | 535 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Manufacturing equipment
|
| | | $ | 9,732 | | | | | $ | 9,197 | | |
Leasehold improvements
|
| | | | 4,811 | | | | | | 4,811 | | |
Computer equipment
|
| | | | 489 | | | | | | 395 | | |
Office furniture and fixtures
|
| | | | 462 | | | | | | 462 | | |
Software
|
| | | | 248 | | | | | | 248 | | |
Total property and equipment
|
| | | | 15,742 | | | | | | 15,113 | | |
Less accumulated depreciation
|
| | | | (6,851) | | | | | | (4,511) | | |
Total property and equipment, net
|
| | | $ | 8,891 | | | | | $ | 10,602 | | |
| | |
Year ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Cost of goods sold
|
| | | $ | 530 | | | | | $ | 1,125 | | |
Research and development
|
| | | | 574 | | | | | | 901 | | |
Sales and marketing
|
| | | | 137 | | | | | | 124 | | |
General and administrative
|
| | | | 1,101 | | | | | | 42 | | |
Total depreciation expense
|
| | | $ | 2,342 | | | | | $ | 2,192 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Deferred transaction costs
|
| | | $ | 1,926 | | | | | $ | — | | |
Noncurrent prepaid expenses
|
| | | | 749 | | | | | | 7 | | |
Deposits
|
| | | | 250 | | | | | | 250 | | |
Total other noncurrent assets
|
| | | $ | 2,925 | | | | | $ | 257 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Accrued legal fees(1)
|
| | | $ | 1,517 | | | | | $ | — | | |
Accrued professional fees
|
| | | | 866 | | | | | | — | | |
Accrued liabilities
|
| | | | 774 | | | | | | 414 | | |
Accrued sales and business taxes
|
| | | | 241 | | | | | | 267 | | |
Accrued cost of revenue
|
| | | | 236 | | | | | | — | | |
Customer refund liability
|
| | | | 205 | | | | | | 80 | | |
Warranty liability
|
| | | | 54 | | | | | | 56 | | |
Other accrued liabilities
|
| | | | 78 | | | | | | 116 | | |
Total accrued expenses
|
| | | $ | 3,971 | | | | | $ | 933 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Accrued payroll taxes
|
| | | $ | 356 | | | | | $ | 254 | | |
Accrued commissions
|
| | | | 121 | | | | | | 109 | | |
Accrued payroll
|
| | | | 41 | | | | | | 79 | | |
Accrued bonus
|
| | | | 647 | | | | | | 49 | | |
Other accrued benefits
|
| | | | 84 | | | | | | 113 | | |
Total accrued compensation and related benefits
|
| | | $ | 1,249 | | | | | $ | 604 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Warrant liabilities
|
| | | $ | 5,573 | | | | | $ | 87 | | |
Other noncurrent liabilities
|
| | | | — | | | | | | 254 | | |
Total other noncurrent liabilities
|
| | | $ | 5,573 | | | | | $ | 341 | | |
| | |
As of December 31, 2021
|
| |||||||||||||||||||||
| | |
SQN Term Loan
Tranche 1 |
| |
SQN Term Loan
Tranche 2 |
| |
SQN Equipment
Loan |
| |
Total
|
| ||||||||||||
Total notes payable
|
| | | $ | 10,000 | | | | | $ | 10,000 | | | | | $ | 2,302 | | | | | $ | 22,302 | | |
Add: accretion of final interest payable
|
| | | | 108 | | | | | | 79 | | | | | | 56 | | | | | | 243 | | |
Less: loan payable, current
|
| | | | (9,702) | | | | | | — | | | | | | (784) | | | | | | (10,486) | | |
Less: unamortized debt discount
|
| | | | (406) | | | | | | (218) | | | | | | (84) | | | | | | (708) | | |
Total loan payable, noncurrent
|
| | | $ | — | | | | | $ | 9,861 | | | | | $ | 1,490 | | | | | $ | 11,351 | | |
| | |
As of December 31, 2020
|
| |||||||||||||||
| | |
PPP Loan
|
| |
SVB Term Loan
|
| |
Total
|
| |||||||||
Total notes payable
|
| | | $ | 2,500 | | | | | $ | 4,000 | | | | | $ | 6,500 | | |
Less: loan payable, current
|
| | | | (972) | | | | | | (1,006) | | | | | | (1,978) | | |
Less: unamortized debt discount
|
| | | | — | | | | | | (104) | | | | | | (104) | | |
Total loan payable, noncurrent
|
| | | $ | 1,528 | | | | | $ | 2,890 | | | | | $ | 4,418 | | |
| | |
As of
December 31, 2021 |
| |||
2022
|
| | | $ | 10,829 | | |
2023
|
| | | | 10,906 | | |
2024
|
| | | | 567 | | |
Total future principal payments
|
| | | $ | 22,302 | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Conversion of convertible preferred stock
|
| | | | 29,520,187 | | | | | | 29,520,187 | | |
Shares reserved for exercise of warrants
|
| | | | 3,419,304 | | | | | | 305,891 | | |
Outstanding stock options
|
| | | | 16,508,725 | | | | | | 10,364,039 | | |
Shares available for future issuance under 2015 Plan
|
| | | | 1,050,574 | | | | | | 859,468 | | |
Total shares of common stock reserved
|
| | | | 50,498,790 | | | | | | 41,049,585 | | |
| | |
As of December 31, 2021
|
| |||||||||||||||||||||
| | |
Authorized shares
|
| |
Shares issued and
outstanding |
| |
Capital Raised
|
| |
Aggregate liquidation
preference |
| ||||||||||||
Shares designated as: | | | | | | | | | | | | | | | | | | | | | | | | | |
Series A Preferred Stock
|
| | | | 7,048,031 | | | | | | 6,963,183 | | | | | $ | 8,000 | | | | | $ | 8,000 | | |
Series A-1 Preferred Stock
|
| | | | 1,528,501 | | | | | | 1,528,501 | | | | | | 502 | | | | | | 502 | | |
Series A-2 Preferred Stock
|
| | | | 1,541,170 | | | | | | 1,541,170 | | | | | | 760 | | | | | | 760 | | |
Series B Preferred Stock
|
| | | | 7,358,928 | | | | | | 7,320,385 | | | | | | 20,000 | | | | | | 20,180 | | |
Series C Preferred Stock
|
| | | | 12,083,866 | | | | | | 10,669,200 | | | | | | 40,000 | | | | | | 40,000 | | |
Series C-1 Preferred Stock
|
| | | | 1,497,748 | | | | | | 1,497,748 | | | | | | 5,054 | | | | | | 5,054 | | |
| | | | | 31,058,244 | | | | | | 29,520,187 | | | | | $ | 74,316 | | | | | $ | 74,496 | | |
| | |
As of December 31, 2020
|
| |||||||||||||||||||||
| | |
Authorized shares
|
| |
Shares issued and
outstanding |
| |
Capital Raised
|
| |
Aggregate liquidation
preference |
| ||||||||||||
Shares designated as: | | | | | | | | | | | | | | | | | | | | | | | | | |
Series A Preferred Stock
|
| | | | 7,048,031 | | | | | | 6,963,183 | | | | | $ | 8,000 | | | | | $ | 8,000 | | |
Series A-1 Preferred Stock
|
| | | | 1,528,501 | | | | | | 1,528,501 | | | | | | 502 | | | | | | 502 | | |
Series A-2 Preferred Stock
|
| | | | 1,541,170 | | | | | | 1,541,170 | | | | | | 760 | | | | | | 760 | | |
Series B Preferred Stock
|
| | | | 7,397,470 | | | | | | 7,320,385 | | | | | | 20,000 | | | | | | 20,180 | | |
Series C Preferred Stock
|
| | | | 10,669,200 | | | | | | 10,669,200 | | | | | | 40,000 | | | | | | 40,000 | | |
Series C-1 Preferred Stock(1)
|
| | | | 1,497,748 | | | | | | 1,497,748 | | | | | | 5,054 | | | | | | 5,054 | | |
Series C-2 Preferred Stock
|
| | | | 10,300,550 | | | | | | — | | | | | | — | | | | | | — | | |
| | | | | 39,982,670 | | | | | | 29,520,187 | | | | | $ | 74,316 | | | | | $ | 74,496 | | |
| | |
June, 2021
|
| |
June, 2020
|
| |
October, 2021
|
|
Expected term
|
| |
10 years
|
| |
10 years
|
| |
3 years
|
|
Expected volatility
|
| |
64.01%
|
| |
56.49%
|
| |
48.5%
|
|
Risk-free interest rate
|
| |
1.50%
|
| |
0.66%
|
| |
0.70%
|
|
Expected dividends
|
| |
0.00%
|
| |
0.00%
|
| |
0.00%
|
|
Weighted average fair value of common stock warrant
|
| |
$1.07
|
| |
$0.60
|
| |
$3.79
|
|
Equity-Type
|
| |
Shares
|
| |
Exercise Price
|
| |
Issuance Date
|
| |
Expiration Date
|
| ||||||||||||
Series A Preferred Stock
|
| | | | 58,736 | | | | | $ | 1.15 | | | | | | 11/24/2015 | | | | | | 11/24/2025 | | |
Series A Preferred Stock
|
| | | | 26,112 | | | | | | 1.15 | | | | | | 11/22/2016 | | | | | | 11/22/2026 | | |
Series B Preferred Stock
|
| | | | 38,543 | | | | | | 2.76 | | | | | | 10/13/2017 | | | | | | 10/13/2027 | | |
Series C Preferred Stock
|
| | | | 108,000 | | | | | | 0.94 | | | | | | 1/29/2021 | | | | | | 1/29/2031 | | |
Common Stock
|
| | | | 533,333 | | | | | | 1.51 | | | | | | 6/24/2021 | | | | | | 6/24/2031 | | |
| | | | | 764,724 | | | | | | | | | | | | | | | | | | | | |
| | |
(in ’000s)
Fair Value |
| |||
Warrants outstanding – January 1, 2020
|
| | | $ | 133 | | |
Change in fair value, net
|
| | | | (47) | | |
Warrants outstanding - December 31, 2020
|
| | | | 86 | | |
Warrants issued
|
| | | | 1,245 | | |
Change in fair value, net
|
| | | | 4,242 | | |
Warrants outstanding – December 31, 2021
|
| | | $ | 5,573 | | |
| | |
December 31, 2021
|
| |
December 31, 2020
|
|
Expected term
|
| |
3.89 – 9.48 years
|
| |
4.89 – 6.78 years
|
|
Expected volatility
|
| |
64.29% – 64.44%
|
| |
58.17% – 59.84%
|
|
Risk-free interest rate
|
| |
1.12% – 1.52%
|
| |
0.36% – 0.51%
|
|
Expected dividends
|
| |
0%
|
| |
0%
|
|
Fair value of warrants
|
| |
$1.17 – $7.71
|
| |
$1.16 – $1.56
|
|
| | |
Options outstanding
|
| |||||||||||||||||||||
| | |
Number of
shares |
| |
Weighted
average exercise price per share |
| |
Weighted
average contractual term (in years) |
| |
Aggregate
intrinsic value (in thousands) |
| ||||||||||||
Outstanding – January 1, 2021
|
| | | | 10,364,039 | | | | | $ | 0.98 | | | | | | | | | | | | | | |
Options granted
|
| | | | 7,002,296 | | | | | | 1.89 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (264,208) | | | | | | 0.48 | | | | | | | | | | | | | | |
Options forfeited
|
| | | | (492,049) | | | | | | 1.37 | | | | | | | | | | | | | | |
Options expired
|
| | | | (152,603) | | | | | | 1.23 | | | | | | | | | | | | | | |
Outstanding – December 31, 2021
|
| | | | 16,457,475 | | | | | $ | 1.36 | | | | | | 7.96 | | | | | $ | 104,554 | | |
Vested during the period
|
| | | | 2,265,763 | | | | | | 1.17 | | | | | | 8.19 | | | | | | 51,807 | | |
Vested at end of period
|
| | | | 7,689,805 | | | | | | 0.97 | | | | | | 6.43 | | | | | | 51,807 | | |
Exercisable at the end of the period
|
| | | | 7,747,264 | | | | | | 0.97 | | | | | | 6.43 | | | | | | 52,181 | | |
Shares expected to vest
|
| | | | 7,263,661 | | | | | | 1.85 | | | | | | 9.20 | | | | | | 42,565 | | |
Vested and expected to vest
|
| | | | 14,953,466 | | | | | | 1.40 | | | | | | 7.77 | | | | | | 94,372 | | |
| | |
During the years ended December 31,
|
| |||
| | |
2021
|
| |
2020
|
|
Expected term
|
| |
5.00 – 6.08 years
|
| |
5.15 – 6.53 years
|
|
Expected volatility
|
| |
61.44% – 67.12%
|
| |
51.15% – 59.84%
|
|
Risk-free interest rate
|
| |
0.41% – 1.35%
|
| |
0.27% – 1.63%
|
|
Expected dividends
|
| |
0.0%
|
| |
0.0%
|
|
Fair value of common stock
|
| |
$1.41 – $6.08
|
| |
$1.01 – $1.46
|
|
| | |
2021
|
| |
2020
|
| ||||||
Cost of goods sold
|
| | | $ | 276 | | | | | $ | 115 | | |
Research and development
|
| | | | 540 | | | | | | 87 | | |
Sales and marketing
|
| | | | 402 | | | | | | 169 | | |
General and administrative
|
| | | | 1,320 | | | | | | 885 | | |
Total stock-based compensation expense
|
| | |
$
|
2,538
|
| | | | $ | 1,256 | | |
| | |
Classifications on the financial statements
|
| |
December 31, 2021
|
| |||
Operating lease assets
|
| |
Operating leases – right-of-use asset
|
| | | $ | 1,323 | | |
Operating lease liability, current
|
| | Operating lease liability, current | | | | | 1,111 | | |
Operating lease liability, noncurrent
|
| |
Operating lease liability, noncurrent
|
| | | | 546 | | |
| | |
Classifications on the financial statements
|
| |
December 31, 2020
|
| |||
Operating lease assets
|
| |
Operating leases – right-of-use asset
|
| | | $ | 2,109 | | |
Operating lease liability, current
|
| | Operating lease liability, current | | | | | 987 | | |
Operating lease liability, noncurrent
|
| |
Operating lease liability, noncurrent
|
| | | | 1,657 | | |
| | |
As on December 31,
2021 |
| |||
2022
|
| | | $ | 1,215 | | |
2023
|
| | | | 531 | | |
2024
|
| | | | 29 | | |
Total future lease payments
|
| | | | 1,775 | | |
Less imputed interest
|
| | | | (118) | | |
Total operating lease liability
|
| | | $ | 1,657 | | |
| | |
Classification on the financial
statements |
| |
December 31, 2021
|
| |||
Finance lease assets
|
| |
Property and equipment, net
|
| | | $ | 3,943 | | |
Finance lease liability, current
|
| | Finance lease, current | | | | | 1,091 | | |
Finance lease liability, noncurrent
|
| | Finance lease, noncurrent | | | | | 1,606 | | |
Depreciation of the leased asset
|
| | Cost of revenue | | | | | 547 | | |
Lease interest expense
|
| |
Other income (expense), net
|
| | | | 598 | | |
| | |
Classification on the financial
statements |
| |
December 31, 2020
|
| |||
Finance lease assets
|
| |
Property and equipment, net
|
| | | $ | 4,490 | | |
Finance lease liability, current
|
| | Finance lease, current | | | | | 906 | | |
Finance lease liability, noncurrent
|
| | Finance lease, noncurrent | | | | | 2,697 | | |
Depreciation of the leased asset
|
| | Cost of revenue | | | | | 273 | | |
Lease interest expense
|
| |
Other income (expense), net
|
| | | | 376 | | |
| | |
As of December 31,
2021 |
| |||
2022
|
| | | $ | 1,504 | | |
2023
|
| | | | 1,731 | | |
Total future lease payments
|
| | | | 3,235 | | |
Less: imputed interest
|
| | | | (538) | | |
Total finance lease liability
|
| | | $ | 2,697 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Operating cash flows paid for operating leases
|
| | | $ | 1,184 | | | | | $ | 689 | | |
Financing cash flows paid for finance leases
|
| | | | 1,504 | | | | | | 773 | | |
Non-cash activity: Lease liabilities arising from obtaining right-of-use assets
|
| | | | — | | | | | | 107 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Current: | | | | | | | | | | | | | |
Federal
|
| | | $ | — | | | | | $ | — | | |
State
|
| | | | — | | | | | | 1 | | |
Total current tax expense
|
| | | $ | — | | | | | $ | 1 | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Statutory rate
|
| | | | 21.0% | | | | | | 21.0% | | |
Federal net operating loss
|
| | | | — | | | | | | 5.3% | | |
Leases
|
| | | | — | | | | | | 4.2% | | |
Depreciation
|
| | | | — | | | | | | (3.4%) | | |
State income tax
|
| | | | 9.6% | | | | | | (1.1%) | | |
Permanent differences
|
| | | | (6.8%) | | | | | | (1.1%) | | |
Other
|
| | | | — | | | | | | 0.3% | | |
Valuation allowance
|
| | | | (23.8%) | | | | | | (25.1%) | | |
Effective income tax rate
|
| | | | 0.0% | | | | | | 0.1% | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Deferred tax assets | | | | | | | | | | | | | |
Net operating losses
|
| | | $ | 26,070 | | | | | $ | 14,703 | | |
Accruals and other
|
| | | | 982 | | | | | | 309 | | |
Total deferred tax assets
|
| | | | 27,052 | | | | | | 15,012 | | |
Less valuation allowance
|
| | | | (25,648) | | | | | | (14,223) | | |
Net deferred tax assets
|
| | | | 1,404 | | | | | | 789 | | |
Deferred tax liabilities | | | | | | | | | | | | | |
Property, plant, equipment, and intangibles
|
| | | | (1,404) | | | | | | (789) | | |
Total deferred tax liabilities
|
| | | | (1,404) | | | | | | (789) | | |
Net deferred tax assets (liabilities)
|
| | | $ | — | | | | | $ | — | | |
| | |
Years Ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Unrecognized tax benefits, beginning of period
|
| | | $ | 411 | | | | | $ | 411 | | |
Additions based on tax positions related to current year
|
| | | | — | | | | | | — | | |
Reductions based on tax positions related to prior years
|
| | | | — | | | | | | — | | |
Unrecognized tax benefits, end of period
|
| | | $ | 411 | | | | | $ | 411 | | |
| | |
Years ended December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Basic and diluted: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (48,013) | | | | | $ | (19,104) | | |
Weighted-average number of shares of common stock outstanding
|
| | | | 9,819,576 | | | | | | 9,755,174 | | |
Basic and diluted net loss per share
|
| | | $ | (4.89) | | | | | $ | (1.96) | | |
| | |
As of December 31,
|
| |||||||||
| | |
2021
|
| |
2020
|
| ||||||
Shares of common stock issuable upon conversion of redeemable convertible preferred stock
|
| | | | 29,520,187 | | | | | | 29,520,187 | | |
Shares of common stock issuable upon conversion of redeemable convertible preferred stock warrants
|
| | | | 231,391 | | | | | | 123,391 | | |
Shares of common stock issuable from stock options
|
| | | | 16,508,725 | | | | | | 10,364,039 | | |
Shares of common stock issuable from common stock warrants
|
| | | | 3,187,913 | | | | | | 182,500 | | |
Potential common shares excluded from diluted net loss per share
|
| | | | 49,448,216 | | | | | | 40,190,117 | | |
| | |
June 30,
|
| |
December 31,
|
| ||||||
| | |
2022
|
| |
2021
|
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,092 | | | | | $ | 2,864 | | |
Accounts receivable, net
|
| | | | 2,013 | | | | | | 2,918 | | |
Inventory
|
| | | | 2,507 | | | | | | 879 | | |
Contract assets
|
| | | | 1,369 | | | | | | 1,219 | | |
Prepaid expenses and other current assets
|
| | | | 967 | | | | | | 892 | | |
Total current assets
|
| | | | 8,948 | | | | | | 8,772 | | |
Property and equipment, net
|
| | | | 7,744 | | | | | | 8,891 | | |
Operating leases – right of use asset
|
| | | | 896 | | | | | | 1,323 | | |
Restricted cash
|
| | | | 320 | | | | | | 320 | | |
Other noncurrent assets
|
| | | | 4,516 | | | | | | 2,925 | | |
Total assets
|
| | | $ | 22,424 | | | | | $ | 22,231 | | |
LIABILITIES, CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ DEFICIT
|
| | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,899 | | | | | $ | 1,583 | | |
Contract liabilities
|
| | | | 1,237 | | | | | | 175 | | |
Accrued liabilities
|
| | | | 5,588 | | | | | | 3,971 | | |
Accrued compensation and related benefits
|
| | | | 1,579 | | | | | | 1,249 | | |
Operating lease liability, current
|
| | | | 1,076 | | | | | | 1,111 | | |
Finance lease, current
|
| | | | 1,175 | | | | | | 1,091 | | |
Loan payable, current
|
| | | | 38,476 | | | | | | 10,486 | | |
Total current liabilities
|
| | | | 52,030 | | | | | | 19,666 | | |
Operating lease liability, noncurrent
|
| | | | 45 | | | | | | 546 | | |
Finance lease, noncurrent
|
| | | | 1,000 | | | | | | 1,606 | | |
Loan payable, noncurrent
|
| | | | 1,090 | | | | | | 11,351 | | |
Warrant and derivative liabilities
|
| | | | 3,037 | | | | | | 5,573 | | |
Total liabilities
|
| | | | 57,202 | | | | | | 38,742 | | |
Commitment and contingencies (Note 12) | | | | | | | | | | | | | |
Convertible preferred stock | | | | | | | | | | | | | |
Convertible preferred stock, $0.00001 par value. 31,058,244 shares authorized
at June 30, 2022 and December 31, 2021, respectively; 29,520,187 shares issued and outstanding at June 30, 2022 and December 31, 2021 (liquidation preference of $74,496 at June 30, 2022 and December 31, 2021) |
| | | | 75,684 | | | | | | 75,684 | | |
Stockholders’ deficit | | | | | | | | | | | | | |
Common stock, $0.00001 par value. 63,299,666 shares authorized at June 30,
2022 and December 31, 2021, respectively; 10,085,354 and 10,037,305 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively |
| | | | — | | | | | | — | | |
Additional paid in capital
|
| | | | 17,857 | | | | | | 16,117 | | |
Accumulated deficit
|
| | | | (128,319) | | | | | | (108,312) | | |
Total stockholders’ deficit
|
| | | | (110,462) | | | | | | (92,195) | | |
Total liabilities, convertible preferred stock and stockholders’ deficit
|
| | | $ | 22,424 | | | | | $ | 22,231 | | |
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Revenue
|
| | | $ | 6,753 | | | | | $ | 7,917 | | |
Cost of revenue
|
| | | | 6,032 | | | | | | 5,551 | | |
Gross profit
|
| | | | 721 | | | | | | 2,366 | | |
Operating expenses | | | | | | | | | | | | | |
Research and development
|
| | | | 6,419 | | | | | | 3,978 | | |
Sales and marketing
|
| | | | 5,865 | | | | | | 3,838 | | |
General and administrative
|
| | | | 7,986 | | | | | | 7,606 | | |
Total operating expenses
|
| | | | 20,270 | | | | | | 15,422 | | |
Loss from operations
|
| | | | (19,549) | | | | | | (13,056) | | |
Other income (expense), net | | | | | | | | | | | | | |
Interest expense
|
| | | | (4,546) | | | | | | (847) | | |
Interest income
|
| | | | 3 | | | | | | 1 | | |
Other expense
|
| | | | (4) | | | | | | — | | |
Change in fair value of warrant and derivative liabilities
|
| | | | 4,089 | | | | | | (144) | | |
Total other income (expense), net
|
| | | | (458) | | | | | | (990) | | |
Loss before income taxes
|
| | | | (20,007) | | | | | | (14,046) | | |
Income tax provision
|
| | | | — | | | | | | — | | |
Net loss
|
| | | $ | (20,007) | | | | | $ | (14,046) | | |
Net loss attributable per share to common stockholders, basic and diluted
|
| | | | (1.99) | | | | | | (1.44) | | |
Weighted-average shares used to compute net loss attributable per share to common stockholders, basic and diluted
|
| | | | 10,065,695 | | | | | | 9,778,360 | | |
| | |
Six Months Ended June 30, 2022
|
| ||||||||||||||||||||||||||||||||||||||||
| | |
Convertible
Preferred Stock |
| | |
Common Stock
|
| |
Additional
Paid-in- Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
| | |
|
29,520,187
|
| | | |
$
|
75,684
|
| | | | |
|
10,037,305
|
| | | |
$
|
—
|
| | | |
$
|
16,117
|
| | | |
$
|
(108,312)
|
| | | | $ | (92,195) | | |
Net loss
|
| | |
|
—
|
| | | |
|
—
|
| | | | | | — | | | | | | — | | | | |
|
—
|
| | | | | (20,007) | | | | | | (20,007) | | |
Issuance of common stock upon
exercise of stock options |
| | |
|
—
|
| | | |
|
—
|
| | | | | | 48,049 | | | | | | — | | | | | | 49 | | | | |
|
—
|
| | | | | 49 | | |
Stock-based compensation
|
| | |
|
—
|
| | | |
|
—
|
| | | | |
|
—
|
| | | | | — | | | | | | 1,691 | | | | |
|
—
|
| | | | | 1,691 | | |
Balance at June 30, 2022
|
| | | | 29,520,187 | | | | | $ | 75,684 | | | | | | | 10,085,354 | | | | | $ | — | | | | | $ | 17,857 | | | | | $ | (128,319) | | | | | $ | (110,462) | | |
| | |
Six Months Ended June 30, 2021
|
| ||||||||||||||||||||||||||||||||||||||||
| | |
Convertible
Preferred Stock |
| | |
Common Stock
|
| |
Additional
Paid-in- Capital |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Deficit |
| |||||||||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | |
Shares
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balance at January 1, 2021
|
| | | | 29,520,187 | | | | | $ | 75,684 | | | | | | | 9,773,097 | | | | | $ | — | | | | | $ | 4,285 | | | | | $ | (60,299) | | | | | $ | (56,014) | | |
Net loss
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | — | | | | | | (14,046) | | | | | | (14,046) | | |
Issuance of common stock upon exercise of stock options
|
| | | | — | | | | | | — | | | | | | | 116,379 | | | | | | — | | | | | | 27 | | | | | | — | | | | | | 27 | | |
Issuance of common stock warrants
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 213 | | | | | | — | | | | | | 213 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | | — | | | | | | — | | | | | | 1,082 | | | | | | — | | | | | | 1,082 | | |
Balance at June 30, 2021
|
| | | | 29,520,187 | | | | | $ | 75,684 | | | | | | | 9,889,476 | | | | | $ | — | | | | | $ | 5,607 | | | | | $ | (74,345) | | | | | $ | (68,738) | | |
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Cash flows from operating activities | | | | | | | | | | | | | |
Net loss
|
| | | $ | (20,007) | | | | | $ | (14,046) | | |
Adjustments to reconcile net loss to cash used in operating activities: | | | | | | | | | | | | | |
Depreciation and amortization
|
| | | | 3,766 | | | | | | 1,415 | | |
Stock-based compensation
|
| | | | 1,691 | | | | | | 1,082 | | |
Loss on disposal of property and equipment
|
| | | | 3 | | | | | | — | | |
Noncash operating lease expense
|
| | | | 427 | | | | | | 382 | | |
Bad debt expense
|
| | | | 12 | | | | | | 4 | | |
Change in fair value of warrant and derivative liabilities
|
| | | | (4,089) | | | | | | 144 | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 893 | | | | | | (1,898) | | |
Contract assets
|
| | | | (150) | | | | | | (177) | | |
Inventory
|
| | | | (1,628) | | | | | | (1,381) | | |
Prepaid expenses and other current assets
|
| | | | (374) | | | | | | (205) | | |
Other noncurrent assets
|
| | | | (1,285) | | | | | | (161) | | |
Accounts payable
|
| | | | 1,313 | | | | | | 1,872 | | |
Contract liabilities
|
| | | | 1,062 | | | | | | 1,888 | | |
Accrued liabilities
|
| | | | 1,949 | | | | | | 1,545 | | |
Operating lease liabilities
|
| | | | (536) | | | | | | (476) | | |
Net cash used in operating activities
|
| | | | (16,953) | | | | | | (10,012) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (24) | | | | | | (191) | | |
Net cash used in investing activities
|
| | | | (24) | | | | | | (191) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Principal payments under finance lease obligations
|
| | | | (522) | | | | | | (435) | | |
Proceeds from issuance of debt
|
| | | | 17,500 | | | | | | 23,000 | | |
Payment of debt issuance costs
|
| | | | (111) | | | | | | (427) | | |
Debt repayment
|
| | | | (405) | | | | | | (4,310) | | |
Proceeds from exercise of stock options
|
| | | | 49 | | | | | | 27 | | |
Payment of deferred transaction costs
|
| | | | (306) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 16,205 | | | | | | 17,855 | | |
Net increase (decrease) in cash, cash equivalents and restricted cash
|
| | | | (772) | | | | | | 7,652 | | |
Cash, cash equivalents and restricted cash at beginning of period
|
| | | | 3,184 | | | | | | 17,746 | | |
Cash, cash equivalents and restricted cash at end of period
|
| | | $ | 2,412 | | | | | $ | 25,398 | | |
Noncash investing and financing activities | | | | | | | | | | | | | |
Unpaid deferred transaction costs
|
| | | $ | 3,874 | | | | | $ | — | | |
Issuance of common stock warrants
|
| | | $ | — | | | | | $ | 213 | | |
Unpaid purchases of property and equipment
|
| | | $ | 19 | | | | | $ | 72 | | |
| | |
June 30,
2022 |
| |
December 31,
2021 |
| ||||||
Accounts receivable, net
|
| | | $ | 2,013 | | | | | $ | 2,918 | | |
Contract assets
|
| | | | 1,369 | | | | | | 1,219 | | |
Contract liabilities
|
| | | | 1,237 | | | | | | 175 | | |
| | |
June 30,
2022 |
| |
June 30,
2021 |
| ||||||
Cash and cash equivalents
|
| | | $ | 2,092 | | | | | $ | 25,078 | | |
Restricted cash
|
| | | | 320 | | | | | | 320 | | |
Total cash, cash equivalents and restricted cash shown in the condensed statements of cash flows
|
| | | $ | 2,412 | | | | | $ | 25,398 | | |
| | |
June 30,
2022 |
| |
December 31,
2021 |
| ||||||
Raw materials
|
| | | $ | 1,409 | | | | | $ | 158 | | |
Work in progress
|
| | | | 1,098 | | | | | | 721 | | |
Total inventory
|
| | | $ | 2,507 | | | | | $ | 879 | | |
| | |
June 30,
2022 |
| |
December 31,
2021 |
| ||||||
Prepaid expense
|
| | | $ | 541 | | | | | $ | 650 | | |
Other current assets
|
| | | | 426 | | | | | | 242 | | |
Total prepaid expenses and other current assets
|
| | | $ | 967 | | | | | $ | 892 | | |
| | |
June 30,
2022 |
| |
December 31,
2021 |
| ||||||
Deferred transaction costs
|
| | | $ | 4,349 | | | | | $ | 1,926 | | |
Noncurrent prepaid expenses
|
| | | | 167 | | | | | | 749 | | |
Deposits
|
| | | | — | | | | | | 250 | | |
Total other noncurrent assets
|
| | | $ | 4,516 | | | | | $ | 2,925 | | |
| | |
June 30,
2022 |
| |
December 31,
2021 |
| ||||||
Accrued legal fees(1)
|
| | | $ | 3,129 | | | | | $ | 1,517 | | |
Accrued professional fees(1)
|
| | | | 358 | | | | | | 866 | | |
Accrued liabilities
|
| | | | 920 | | | | | | 774 | | |
Accrued sales and business taxes
|
| | | | 178 | | | | | | 241 | | |
Accrued cost of revenue
|
| | | | 930 | | | | | | 236 | | |
Customer refund liability
|
| | | | — | | | | | | 205 | | |
Warranty liability
|
| | | | 48 | | | | | | 54 | | |
Other accrued liabilities
|
| | | | 25 | | | | | | 78 | | |
Total accrued liabilities
|
| | | $ | 5,588 | | | | | $ | 3,971 | | |
| | |
As of June 30, 2022
|
| |||||||||||||||||||||||||||||||||||||||
| | |
LSA
Tranche 1.1 |
| |
LSA
Tranche 1.2 |
| |
LSA
Tranche 1.3 |
| |
SQN
Equipment Loan |
| |
2022
Promissory Notes (Related Party) |
| |
Bridge Note
(Related Party) |
| |
Total
|
| |||||||||||||||||||||
Total notes payable
|
| | | $ | 10,000 | | | | | $ | 10,000 | | | | | $ | 10,000 | | | | | $ | 1,897 | | | | | $ | 5,000 | | | | | $ | 2,500 | | | | | $ | 39,397 | | |
Add: accretion of final interest payable
|
| | | | 383 | | | | | | 342 | | | | | | 562 | | | | | | 82 | | | | | | 225 | | | | | | 26 | | | | | | 1,620 | | |
Less: loan payable, current
|
| | | | (10,164) | | | | | | (10,212) | | | | | | (9,625) | | | | | | (829) | | | | | | (5,166) | | | | | | (2,480) | | | | | | (38,476) | | |
Less: unamortized debt
discount |
| | | | (219) | | | | | | (130) | | | | | | (937) | | | | | | (60) | | | | | | (59) | | | | | | (46) | | | | | | (1,451) | | |
Total loan payable, noncurrent
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 1,090 | | | | | $ | — | | | | | $ | — | | | | | $ | 1,090 | | |
| | |
As of December 31, 2021
|
| |||||||||||||||||||||
| | |
LSA
Tranche 1.1 |
| |
LSA
Tranche 1.2 |
| |
SQN
Equipment Loan |
| |
Total
|
| ||||||||||||
Total notes payable
|
| | | $ | 10,000 | | | | | $ | 10,000 | | | | | $ | 2,302 | | | | | $ | 22,302 | | |
Add: accretion of final interest payable
|
| | | | 108 | | | | | | 79 | | | | | | 56 | | | | | | 243 | | |
Less: loan payable, current
|
| | | | (9,702) | | | | | | — | | | | | | (784) | | | | | | (10,486) | | |
Less: unamortized debt discount
|
| | | | (406) | | | | | | (218) | | | | | | (84) | | | | | | (708) | | |
Total loan payable, noncurrent
|
| | | $ | — | | | | | $ | 9,861 | | | | | $ | 1,490 | | | | | $ | 11,351 | | |
| | |
As of
June 30, 2022 |
| |||
2022 (remaining)
|
| | | $ | 27,924 | | |
2023
|
| | | | 10,906 | | |
2024
|
| | | | 567 | | |
Total future principal payments
|
| | | $ | 39,397 | | |
| | |
Fair Value
|
| |||
Derivative – January 1, 2022
|
| | | $ | — | | |
Derivative issued
|
| | | | 176 | | |
Change in fair value, net
|
| | | | 40 | | |
Derivative – June 30, 2022
|
| | | $ | 216 | | |
| | |
As of
|
| |||||||||
| | |
June 30, 2022
|
| |
December 31, 2021
|
| ||||||
Conversion of convertible preferred stock
|
| | | | 29,520,187 | | | | | | 29,520,187 | | |
Shares reserved for exercise of warrants
|
| | | | 3,605,971 | | | | | | 3,419,304 | | |
Outstanding stock options
|
| | | | 15,195,036 | | | | | | 16,508,725 | | |
Shares available for future issuance under 2015 Plan
|
| | | | 2,316,214 | | | | | | 1,050,574 | | |
Total shares of common stock reserved
|
| | | | 50,637,408 | | | | | | 50,498,790 | | |
Warrants to purchase
|
| |
# of Shares
|
| |
Exercise Price
|
| |
Issuance Date
|
| |
Expiration Date
|
| ||||||||||||
Common Stock
|
| | | | 182,500 | | | | | $ | 0.94 | | | | | | 6/3/2020 | | | | | | 6/3/2030 | | |
Common Stock
|
| | | | 109,080 | | | | | | 1.51 | | | | | | 6/23/2021 | | | | | | 6/22/2031 | | |
Common Stock
|
| | | | 2,363,000 | | | | | | 2.82* | | | | | | 10/11/2021 | | | | | | 10/11/2024 | | |
| | | | | 2,654,580 | | | | | | | | | | | | | | | | | | | | |
Warrants to purchase
|
| |
# of Shares
|
| |
Exercise Price
|
| |
Issuance Date
|
| |
Expiration Date
|
| ||||||||||||
Series A Preferred Stock
|
| | | | 58,736 | | | | | $ | 1.15 | | | | | | 11/24/2015 | | | | | | 11/24/2025 | | |
Series A Preferred Stock
|
| | | | 26,112 | | | | | | 1.15 | | | | | | 11/22/2016 | | | | | | 11/22/2026 | | |
Series B Preferred Stock
|
| | | | 38,543 | | | | | | 2.76 | | | | | | 10/13/2017 | | | | | | 10/13/2027 | | |
Series C Preferred Stock
|
| | | | 108,000 | | | | | | 0.94* | | | | | | 1/29/2021 | | | | | | 1/29/2031 | | |
Series C Preferred Stock
|
| | | | 186,667 | | | | | | 2.82* | | | | | | 1/20/2022 | | | | | | 1/20/2032 | | |
Common Stock
|
| | | | 533,333 | | | | | | 1.51 | | | | | | 6/24/2021 | | | | | | 6/24/2031 | | |
| | | | | 951,391 | | | | | | | | | | | | | | | | | | | | |
| | |
Fair Value
|
| |||
Warrants outstanding – January 1, 2022
|
| | | $ | 5,573 | | |
Warrants issued
|
| | | | 1,377 | | |
Change in fair value, net
|
| | | | (4,129) | | |
Warrants outstanding – June 30, 2022
|
| | | $ | 2,821 | | |
| | |
June 30, 2022
|
| |
December 31, 2021
|
|
Expected term
|
| |
3.00 years
|
| |
3.89 – 9.48 years
|
|
Expected volatility
|
| |
46.90%
|
| |
64.29% – 64.44%
|
|
Risk-free interest rate
|
| |
2.99%
|
| |
1.12% – 1.52%
|
|
Expected dividends
|
| |
0%
|
| |
0%
|
|
| | |
Options outstanding
|
| |||||||||||||||||||||
| | |
Number of
shares |
| |
Weighted
average exercise price per share |
| |
Weighted
average contractual term (in years) |
| |
Aggregate
intrinsic value (in thousands) |
| ||||||||||||
Outstanding – January 1, 2022
|
| | | | 16,457,475 | | | | | $ | 1.36 | | | | | | 7.96 | | | | | $ | 104,554 | | |
Options granted
|
| | | | 3,594 | | | | | | 8.24 | | | | | | | | | | | | | | |
Options exercised
|
| | | | (48,049) | | | | | | 1.03 | | | | | | | | | | | | | | |
Options forfeited
|
| | | | (1,217,984) | | | | | | 1.78 | | | | | | | | | | | | | | |
Outstanding – June 30, 2022
|
| | | | 15,195,036 | | | | | $ | 1.33 | | | | | | 7.18 | | | | | $ | 51,106 | | |
Vested during the period
|
| | | | 1,226,712 | | | | | | 1.26 | | | | | | 7.22 | | | | | | 4,193 | | |
Vested at end of period
|
| | | | 8,868,468 | | | | | | 1.01 | | | | | | 5.95 | | | | | | 32,227 | | |
Exercisable at the end of the period
|
| | | | 8,884,430 | | | | | | 1.01 | | | | | | 5.95 | | | | | | 32,281 | | |
Shares expected to vest
|
| | | | 4,822,559 | | | | | | 2.02 | | | | | | 8.76 | | | | | | 13,314 | | |
Vested and expected to vest
|
| | | | 13,691,027 | | | | | | 1.37 | | | | | | 6.94 | | | | | | 45,541 | | |
| | |
Six Months Ended
June 30,2022 |
|
Expected term
|
| |
5.02 years
|
|
Expected volatility
|
| |
55.92%
|
|
Risk-free interest rate
|
| |
1.54%
|
|
Expected dividends
|
| |
0.0%
|
|
| | |
2022
|
| |
2021
|
| ||||||
Cost of goods sold
|
| | | $ | 312 | | | | | $ | 66 | | |
Research and development
|
| | | | 455 | | | | | | 182 | | |
Sales and marketing
|
| | | | 359 | | | | | | 105 | | |
General and administrative
|
| | | | 565 | | | | | | 729 | | |
Total stock-based compensation expense
|
| | | $ | 1,691 | | | | | $ | 1,082 | | |
| | |
Classifications on the condensed financial statements
|
| |
June 30, 2022
|
| |||
Operating lease assets
|
| | Operating leases – right-of-use asset | | | | $ | 896 | | |
Operating lease liability, current
|
| | Operating lease liability, current | | | | | 1,076 | | |
Operating lease liability, noncurrent
|
| | Operating lease liability, noncurrent | | | | | 45 | | |
| | |
Classifications on the condensed financial statements
|
| |
December 31, 2021
|
| |||
Operating lease assets
|
| | Operating leases – right-of-use asset | | | | $ | 1,323 | | |
Operating lease liability, current
|
| | Operating lease liability, current | | | | | 1,111 | | |
Operating lease liability, noncurrent
|
| | Operating lease liability, noncurrent | | | | | 546 | | |
| | |
As of June 30,
2022 |
| |||
2022 (remaining)
|
| | | $ | 614 | | |
2023
|
| | | | 531 | | |
2024
|
| | | | 29 | | |
Total future lease payments
|
| | | | 1,174 | | |
Less imputed interest
|
| | | | (53) | | |
Total operating lease liability
|
| | | $ | 1,121 | | |
| | |
Classification on the condensed financial statements
|
| |
As of June 30, 2022
|
| |||
Finance lease assets
|
| | Property and equipment, net | | | | $ | 3,666 | | |
Finance lease liability, current
|
| | Finance lease, current | | | | | 1,175 | | |
Finance lease liability, noncurrent
|
| | Finance lease, noncurrent | | | | | 1,000 | | |
| | | | | |
Six Months Ended
June 30, 2022 |
| |||
Depreciation of the leased asset
|
| | Cost of revenue | | | | $ | 1,799 | | |
Lease interest expense
|
| |
Other income (expense), net
|
| | | | 230 | | |
| | |
Classification on the condensed financial statements
|
| |
As of December 31, 2021
|
| |||
Finance lease assets
|
| | Property and equipment, net | | | | $ | 3,943 | | |
Finance lease liability, current
|
| | Finance lease, current | | | | | 1,091 | | |
Finance lease liability, noncurrent
|
| | Finance lease, noncurrent | | | | | 1,606 | | |
| | | | | |
Six Months Ended
June 30, 2021 |
| |||
Depreciation of the leased asset
|
| | Cost of revenue | | | | $ | 273 | | |
Lease interest expense
|
| |
Other income (expense), net
|
| | | | 318 | | |
| | |
As of June 30,
2022 |
| |||
2022 (remaining)
|
| | | $ | 752 | | |
2023
|
| | | | 1,731 | | |
Total future lease payments
|
| | | | 2,483 | | |
Less: imputed interest
|
| | | | (308) | | |
Total finance lease liability
|
| | | $ | 2,175 | | |
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Operating cash flows paid for operating leases
|
| | | $ | 601 | | | | | $ | 586 | | |
Financing cash flows paid for finance leases
|
| | | | 752 | | | | | | 752 | | |
| | |
Six Months Ended June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Basic and diluted: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (20,007) | | | | | $ | (14,046) | | |
Weighted-average number of shares of common stock outstanding
|
| | | | 10,065,695 | | | | | | 9,778,360 | | |
Basic and diluted net loss per share
|
| | | $ | (1.99) | | | | | $ | (1.44) | | |
| | |
As of June 30,
|
| |||||||||
| | |
2022
|
| |
2021
|
| ||||||
Shares of common stock issuable upon conversion of redeemable convertible preferred stock
|
| | | | 29,520,187 | | | | | | 29,520,187 | | |
Shares of common stock issuable upon conversion of redeemable convertible preferred stock warrants
|
| | | | 418,058 | | | | | | 231,391 | | |
Shares of common stock issuable from stock options
|
| | | | 15,195,036 | | | | | | 14,461,829 | | |
Shares of common stock issuable from common stock warrants
|
| | | | 3,187,913 | | | | | | 824,913 | | |
Potential common shares excluded from diluted net loss per share
|
| | | | 48,321,194 | | | | | | 45,038,320 | | |
| | |
Page
|
| |||
ARTICLE I
CERTAIN DEFINITIONS
|
| ||||||
| | | | A-1-3 | | | |
| | | | A-1-15 | | | |
| | | | A-1-16 | | | |
ARTICLE II
THE MERGER; CLOSING
|
| ||||||
| | | | A-1-16 | | | |
| | | | A-1-16 | | | |
| | | | A-1-16 | | | |
| | | | A-1-17 | | | |
| | | | A-1-18 | | | |
| | | | A-1-18 | | | |
| | | | A-1-18 | | | |
| | | | A-1-18 | | | |
ARTICLE III
EFFECTS OF THE MERGER ON THE COMPANY CAPITAL STOCK AND EQUITY AWARDS
|
| ||||||
| | | | A-1-19 | | | |
| | | | A-1-19 | | | |
| | | | A-1-20 | | | |
| | | | A-1-20 | | | |
| | | | A-1-21 | | | |
| | | | A-1-21 | | | |
ARTICLE IV
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
|
| ||||||
| | | | A-1-22 | | | |
| | | | A-1-22 | | | |
| | | | A-1-22 | | | |
| | | | A-1-23 | | | |
| | | | A-1-23 | | | |
| | | | A-1-24 | | | |
| | | | A-1-25 | | | |
| | | | A-1-25 | | | |
| | | | A-1-26 | | | |
| | | | A-1-26 | | | |
| | | | A-1-26 | | | |
| | | | A-1-26 | | | |
| | | | A-1-28 | | | |
| | | | A-1-30 | | |
| | |
Page
|
| |||
| | | | A-1-31 | | | |
| | | | A-1-33 | | | |
| | | | A-1-33 | | | |
| | | | A-1-33 | | | |
| | | | A-1-33 | | | |
| | | | A-1-34 | | | |
| | | | A-1-34 | | | |
| | | | A-1-35 | | | |
| | | | A-1-36 | | | |
| | | | A-1-36 | | | |
| | | | A-1-36 | | | |
| | | | A-1-37 | | | |
| | | | A-1-37 | | | |
| | | | A-1-37 | | | |
| | | | A-1-38 | | | |
| | | | A-1-38 | | | |
| | | | A-1-38 | | | |
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF ACQUIROR AND MERGER SUB
|
| ||||||
| | | | A-1-38 | | | |
| | | | A-1-39 | | | |
| | | | A-1-39 | | | |
| | | | A-1-40 | | | |
| | | | A-1-40 | | | |
| | | | A-1-40 | | | |
| | | | A-1-41 | | | |
| | | | A-1-41 | | | |
| | | | A-1-42 | | | |
| | | | A-1-42 | | | |
| | | | A-1-42 | | | |
| | | | A-1-42 | | | |
| | | | A-1-43 | | | |
| | | | A-1-44 | | | |
| | | | A-1-44 | | | |
| | | | A-1-45 | | | |
| | | | A-1-45 | | | |
| | | | A-1-46 | | | |
| | | | A-1-46 | | | |
| | | | A-1-46 | | | |
| | | | A-1-47 | | |
| | |
Page
|
| |||
ARTICLE VI
COVENANTS OF THE COMPANY
|
| ||||||
| | | | A-1-47 | | | |
| | | | A-1-50 | | | |
| | | | A-1-50 | | | |
| | | | A-1-50 | | | |
| | | | A-1-50 | | | |
| | | | A-1-50 | | | |
ARTICLE VII
COVENANTS OF ACQUIROR
|
| ||||||
| | | | A-1-51 | | | |
| | | | A-1-52 | | | |
| | | | A-1-52 | | | |
| | | | A-1-52 | | | |
| | | | A-1-52 | | | |
| | | | A-1-54 | | | |
| | | | A-1-54 | | | |
| | | | A-1-54 | | | |
| | | | A-1-55 | | | |
| | | | A-1-55 | | | |
| | | | A-1-56 | | | |
ARTICLE VIII
JOINT COVENANTS
|
| ||||||
| | | | A-1-56 | | | |
| | | | A-1-57 | | | |
| | | | A-1-60 | | | |
| | | | A-1-60 | | | |
| | | | A-1-62 | | | |
| | | | A-1-62 | | | |
ARTICLE IX
CONDITIONS TO OBLIGATIONS
|
| ||||||
| | | | A-1-62 | | | |
| | | | A-1-63 | | | |
| | | | A-1-64 | | | |
ARTICLE X
TERMINATION/EFFECTIVENESS
|
| ||||||
| | | | A-1-64 | | | |
| | | | A-1-65 | | |
| | |
Page
|
| |||
ARTICLE XI
MISCELLANEOUS
|
| ||||||
| | | | A-1-65 | | | |
| | | | A-1-66 | | | |
| | | | A-1-66 | | | |
| | | | A-1-67 | | | |
| | | | A-1-67 | | | |
| | | | A-1-67 | | | |
| | | | A-1-67 | | | |
| | | | A-1-67 | | | |
| | | | A-1-67 | | | |
| | | | A-1-68 | | | |
| | | | A-1-68 | | | |
| | | | A-1-68 | | | |
| | | | A-1-68 | | | |
| | | | A-1-68 | | | |
| | | | A-1-69 | | | |
| | | | A-1-69 | | | |
| | | | A-1-69 | | | |
| | | | A-1-69 | | | |
Exhibits | | | |||||
Exhibit A
Form of Certificate of Incorporation of Acquiror upon Domestication
|
| | |||||
Exhibit B
Form of Bylaws of Acquiror upon Domestication
|
| | |||||
Exhibit C
Form of Registration Rights Agreement
|
| | |||||
Exhibit D
Form of Lock-Up Agreement
|
| |
| | | | ACE CONVERGENCE ACQUISITION CORP. | | |||
| | | | By: | | |
/s/ Behrooz Abdi
Name: Behrooz Abdi
Title: Chief Executive Officer |
|
| | | | ACE CONVERGENCE SUBSIDIARY CORP. | | |||
| | | | By: | | |
/s/ Behrooz Abdi
Name: Behrooz Abdi
Title: President |
|
| | | | TEMPO AUTOMATION, INC. | | |||
| | | | By: | | |
/s/ Joy Weiss
Name: Joy Weiss
Title: President and Chief Executive Officer |
|
| | | | ACE CONVERGENCE ACQUISITION CORP. | | |||
| | | | By: | | |
/s/ Behrooz Abdi
Name: Behrooz Abdi
Title: Chief Executive Officer |
|
| | | | ACE CONVERGENCE SUBSIDIARY CORP. | | |||
| | | | By: | | |
/s/ Behrooz Abdi
Name: Behrooz Abdi
Title: President |
|
| | | | TEMPO AUTOMATION, INC. | | |||
| | | | By: | | |
/s/ Joy Weiss
Name: Joy Weiss
Title: President and Chief Executive Officer |
|
| | | | SPONSORS: | | |||
| | | | ACE Convergence Acquisition LLC | | |||
| | | | By: | | |
/s/ Behrooz Abdi
Name: Behrooz Abdi
Title: Chief Executive Officer |
|
| | | | | | |
/s/ Behrooz Abdi
Name: Behrooz Abdi
|
|
| | | | | | |
/s/ Sunny Siu
Name: Sunny Siu
|
|
| | | | | | |
/s/ Kenneth Klein
Name: Kenneth Klein
|
|
| | | | | | |
/s/ Ryan Benton
Name: Ryan Benton
|
|
| | | | | | |
/s/ Raquel Chmielewski
Name: Raquel Chmielewski
|
|
| | | | | | |
/s/ Omid Tahernia
Name: Omid Tahernia
|
|
| | | | | | |
/s/ Minyoung Park
Name: Minyoung Park
|
|
| | | | ACQUIROR: | | |||
| | | | ACE Convergence Acquisition Corp. | | |||
| | | | By: | | |
/s/ Behrooz Abdi
Name: Behrooz Abdi
Title: Chief Executive Officer |
|
| | | | COMPANY: | | |||
| | | | Tempo Automation, Inc. | | |||
| | | | By: | | |
/s/ Joy Weiss
Name: Joy Weiss
Title: CEO |
|
Sponsor
|
| |
Acquiror Common Stock
|
| |
Acquiror Warrants
|
| ||||||
ACE Convergence Acquisition LLC(1)
c/o ACE Convergence Acquisition Corp. 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805 |
| | | | 3,916,500 | | | | | | 5,651,250 | | |
Behrooz Abdi(1)
c/o ACE Convergence Acquisition Corp. 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805 |
| | | | 0 | | | | | | — | | |
Sunny Siu
c/o ACE Convergence Acquisition Corp. 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805 |
| | | | 1,678,500 | | | | | | 948,750 | | |
Kenneth Klein
c/o ACE Convergence Acquisition Corp. 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805 |
| | | | 40,000 | | | | | | — | | |
Ryan Benton
c/o ACE Convergence Acquisition Corp. 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805 |
| | | | 35,000 | | | | | | — | | |
Raquel Chmielewski
c/o ACE Convergence Acquisition Corp. 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805 |
| | | | 35,000 | | | | | | — | | |
Omid Tahernia
c/o ACE Convergence Acquisition Corp. 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805 |
| | | | 35,000 | | | | | | — | | |
Minyoung Park
c/o ACE Convergence Acquisition Corp. 1013 Centre Road, Suite 403S, Wilmington, Delaware 19805 |
| | | | 10,000 | | | | | | — | | |
Sponsor
|
| |
Shares of Acquiror Class A
Common Stock |
| |||
ACE Convergence Acquisition LLC
|
| | | | 2,031,175 | | |
ACE SO5 Holdings Limited
|
| | | | 485,325 | | |
Kai Yeung Sunny Siu
|
| | | | 1,078,500 | | |
Earnout Sponsor
|
| |
Sponsor Earnout Shares
|
| |||
ACE Convergence Acquisition LLC
|
| | | | 1,130,000 | | |
ACE SO5 Holdings Limited
|
| | | | 270,000 | | |
Kai Yeung Sunny Siu
|
| | | | 600,000 | | |
Sponsor
|
| |
Shares of Acquiror Class A
Common Stock |
| |||
ACE Convergence Acquisition LLC
|
| | | | 1,748,070 | | |
ACE SO5 Holdings Limited
|
| | | | 418,430 | | |
Kai Yeung Sunny Siu
|
| | | | 928,500 | | |
Earnout Sponsor
|
| |
Sponsor
Earnout Shares |
| |||
ACE Convergence Acquisition LLC
|
| | | | 282,500 | | |
ACE SO5 Holdings Limited
|
| | | | 67,500 | | |
Kai Yeung Sunny Siu
|
| | | | 150,000 | | |
Sponsor
|
| |
Shares of Acquiror Class A
Common Stock |
| |||
ACE Convergence Acquisition LLC
|
| | | | 2,030,786 | | |
ACE SO5 Holdings Limited
|
| | | | 485,714 | | |
Kai Yeung Sunny Siu
|
| | | | 1,078,500 | | |
Earnout Sponsor
|
| |
Sponsor
Earnout Shares |
| |||
ACE Convergence Acquisition LLC
|
| | | | 565,000 | | |
ACE SO5 Holdings Limited
|
| | | | 135,000 | | |
Kai Yeung Sunny Siu
|
| | | | 300,000 | | |
| | | | COMPANY STOCKHOLDERS: | |
| | | | LUX VENTURES IV, L.P. | |
| | | |
By:
/s/ Peter Hebert
Name: Peter Hebert
Title: Managing Director |
|
| | | | POINT72 VENTURES INVESTMENTS, LLC | |
| | | |
By:
/s/ David Schaffer
Name: David Schaffer
Title: Authorized Signatory |
|
| | | | JEFFREY MCALVAY | |
| | | |
By:
/s/ Jeffrey McAlvay
Name: Jeffrey McAlvay
|
|
| | | | ACQUIROR: | |
| | | | ACE CONVERGENCE ACQUISITION CORP. | |
| | | |
By:
/s/ Behrooz Abdi
Name: Behrooz Abdi
Title: Chief Executive Officer |
|
| | | | COMPANY: | |
| | | | TEMPO AUTOMATION, INC. | |
| | | |
By:
/s/ Joy Weiss
Name: Joy Weiss
Title: CEO |
|
Holder
|
| |
Shares of
Common Stock |
| |
Shares of
Series A Preferred Stock |
| |
Shares of
Series A-1 Preferred Stock |
| |
Shares of
Series A-2 Preferred Stock |
| |
Shares of
Series B Preferred Stock |
| |
Shares of
Series C Preferred Stock |
| |
Shares of
Series C-1 Preferred Stock |
| |
Shares of
Series C-2 Preferred Stock |
| |
Company
Options |
| |
Company
Warrants |
| |
Notice
Information |
| ||||||||||||||||||||||||||||||
Jeffrey McAlvay
|
| | | | 5,100,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 881,297 | | | | | | — | | | | | |
Point72 Ventures Investments, LLC
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,176,528 | | | | | | 8,001,903 | | | | | | — | | | | | | — | | | | | | — | | | | | | 2,363,000 | | | | | |
Lux Ventures IV, L.P.
|
| | | | — | | | | | | 5,222,387 | | | | | | — | | | | | | — | | | | | | 1,606,888 | | | | | | 933,555 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | |
Total:
|
| | |
|
5,100,000
|
| | | |
|
5,222,387
|
| | | | | — | | | | | | — | | | | |
|
3,783,416
|
| | | |
|
8,935,458
|
| | | | | — | | | | | | — | | | | |
|
881,297
|
| | | |
|
2,363,000
|
| | | | |
| By: | | |
|
| | ||
| Name: | | |
|
| | ||
| Its: | | |
|
| | | |
Sponsors
|
| | | |
ACE Convergence Acquisition LLC(1) | | | | |
Behrooz Abdi(1) | | | | |
Sunny Siu | | | | |
Kenneth Klein | | | | |
Ryan Benton | | | | |
Raquel Chmielewski | | | | |
Omid Tahernia | | | | |
Minyoung Park | | | | |
| Name of Investor: | | | State/Country of Formation or Domicile: | |
|
|
| | | |
| Name: | | | | |
| Title: | | | | |
|
Name in which Shares are to be registered
(if different): |
| | Date: [•], 2022 | |
| Investor’s EIN: | | | | |
| Business Address-Street: | | | Mailing Address-Street (if different): | |
| City, State, Zip: | | | City, State, Zip: | |
| Attn: | | | Attn: | |
| Telephone No.: | | | Telephone No.: | |
| Facsimile No.: | | | Facsimile No.: | |
| Number of Committed Shares subscribed for: | | | | |
| Aggregate Subscription Amount: | | | Price Per Share: $10.00 | |
CLAUSE
|
| |
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| | | | ACE CONVERGENCE ACQUISITION CORP. | | |||
| | | | By: | | |
/s/ Behrooz Abdi
|
|
| | | | | | | Name: Behrooz Abdi | |
| | | | | | | Title: Chief Executive Officer | |
|
Signature
|
| |
Title
|
| |
Date
|
|
|
/s/ Behrooz Abdi
Behrooz Abdi
|
| | Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer) | | | October 18, 2022 | |
|
*
Minyoung Park
|
| | Chief Financial Officer (Principal Financial and Accounting Officer) | | | October 18, 2022 | |
|
*
Denis Tse
|
| | Secretary and Director | | | October 18, 2022 | |
|
*
Kenneth Klein
|
| | Director | | | October 18, 2022 | |
|
*
Omid Tahernia
|
| | Director | | | October 18, 2022 | |
|
*
Ryan Benton
|
| | Director | | | October 18, 2022 | |
|
*
Raquel Chmielewski
|
| | Director | | | October 18, 2022 | |
Exhibit 23.1
CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We hereby consent to the use in the Prospectus constituting a part of this Post Effective Amendment No. 6 to the Registration Statement on Form S-4, of our report dated March 10, 2022, (which includes an explanatory paragraph relating to ACE Convergence Acquisition Corp.’s ability to continue as a going concern), relating to the consolidated financial statements of ACE Convergence Acquisition Corp., which is contained in that Prospectus. We also consent to the reference to us under the caption “Experts” in the Prospectus.
/s/ WithumSmith+Brown, PC | |
New York, New York | |
October 18, 2022 |
Exhibit 23.2
Consent of Independent Registered Public Accounting Firm
Tempo Automation, Inc.
San Francisco, California
We hereby consent to the use in the Proxy Statement/Prospectus constituting a part of this Registration Statement on Form S-4 of our report dated March 16, 2022, relating to the financial statements of Tempo Automation, Inc., which is contained in that Proxy Statement/Prospectus. Our report contains an explanatory paragraph regarding the Company’s ability to continue as a going concern.
We also consent to the reference to us under the caption “Experts” in the Proxy Statement/Prospectus.
/s/ BDO USA, LLP
San Jose, California
October 18, 2022