SEC Form 10-Q filed by Khosla Ventures Acquisition Co. III
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) | ||
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(Address of Principal Executive Offices) |
(Zip Code) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☒ | Smaller reporting company | ||||
Emerging growth company |
1 |
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1 |
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17 |
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17 |
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17 |
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18 |
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18 |
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18 |
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19 |
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19 |
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19 |
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20 |
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20 |
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21 |
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21 |
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21 |
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21 |
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21 |
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21 |
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21 |
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22 |
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23 |
MARCH 31, 2022 (Unaudited) |
DECEMBER 31, 2021 |
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ASSETS |
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Cash |
$ | $ | ||||||
Prepaid expenses |
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Total current assets |
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Marketable securities held in Trust Account |
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Other non-current assets |
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Total Assets |
$ |
$ |
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LIABILITIES, COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION, AND STOCKHOLDERS’ DEFICIT |
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Current liabilities: |
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Accounts payable |
$ | $ | ||||||
Due to related party |
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Franchise tax payable |
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Accrued expenses |
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Total current liabilities |
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Deferred underwriting fees payable |
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Class K Founder Shares derivative liabilities |
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Total liabilities |
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Commitments and Contingencies (Note 5) |
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Class A common stock subject to possible redemption, |
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Stockholders’ deficit |
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Preferred stock, $ |
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Class A common stock, $ and outstanding (excluding |
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Class B common stock, $ |
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Additional paid-in capital |
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Accumulated deficit |
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Total stockholders’ deficit |
( |
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Total Liabilities, Common Stock Subject to Possible Redemption, and Stockholders’ Deficit |
$ |
$ |
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For The Three Months Ended March 31, 2022 |
For The Period From January 29, 2021 (Inception) Through March 31, 2021 |
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Formation costs |
$ | $ | ||||||
General and administrative expenses |
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Franchise tax expenses |
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Loss from operations |
( |
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Financing expenses on derivative classified instrument |
( |
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Change in fair value of derivative liabilities |
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Gain on marketable securities (net), dividends and interest, held in Trust Account |
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Net income (loss) |
$ | $ | ( |
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Weighted average shares outstanding of Class A common stock subject to possible redemption, basic and diluted |
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Basic and diluted net income (loss) per share, Class A subject to possible redemption |
$ |
$ |
( |
) | ||||
Weighted average shares outstanding of Class A non-redeemable common stock, basic and diluted |
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Basic and diluted net income (loss) per share, Class A non-redeemable common stock |
$ |
$ |
( |
) | ||||
Weighted average shares outstanding of Class B non-redeemable common stock, basic and diluted |
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Basic and diluted net income (loss) per share, Class B non-redeemable common stock |
$ |
$ |
( |
) |
Common Stock Subject to Possible Redemption |
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Class A |
Class A |
Class B |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders Deficit |
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Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
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Balance as of January 1, 2022 (audited) |
$ | $ | $ | $ | |
$ | ( |
) | $ | ( |
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Accretion of Class A common stock to redemption value |
— | — | — | — | — | — | ( |
) | ( |
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Net income |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
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Balance as of March 31, 2022 (unaudited) |
$ | $ | $ | $ | $ | ( |
) | $ | ( |
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Common Stock Subject to Possible Redemption |
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Class A |
Class A |
Class B |
Additional Paid-in Capital |
Accumulated Deficit |
Total Stockholders Deficit |
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Shares |
Amount |
Shares |
Amount |
Shares |
Amount |
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Balance as of January 15, 2021 (inception) |
$ | $ | $ |
$ | $ | $ | ||||||||||||||||||||||||||||||
Issuance of common stock to Sponsor |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Sale of Public Shares, net of $ |
— | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Proceeds from the sale of Private Placement Shares |
— | — | — | — | — | |||||||||||||||||||||||||||||||
Accretion of Class A Common Stock to redemption value |
— | — | — | — | — | ( |
) | ( |
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Net loss |
— | — | — | — | — | — | — | ( |
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Balance as of March 31, 2021 (unaudited) |
$ |
$ |
$ |
$ |
$ |
( |
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$ |
( |
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For The Three Months Ended March 31, 2022 |
For The Period From January 29, 2021 (Inception) Through March 31, 2021 |
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Cash Flows from Operating Activities |
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Net income (loss) |
$ | $ | ( |
) | ||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
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Finance expense on fair value instruments |
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Gain on marketable securities (net), dividends and interest, held in Trust Account |
( |
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Change in fair value of derivative liabilities |
( |
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Changes in operating assets and liabilities: |
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Prepaid and other assets |
( |
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Accounts payable, franchise tax payable and accrued expenses |
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Net cash used in operating activities |
( |
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Cash Flows from Investing Activities |
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Investment in marketable securities held in Trust Account |
( |
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Net cash used in investing activities |
( |
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Cash Flows from Financing Activities |
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Proceeds from issuance of Class B and Class K common stock to Sponsor |
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Advances from related party |
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Proceeds from sale of Public Shares, net of transactions costs |
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Proceeds from sale of Private Placement Shares |
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Net cash provided by financing activities |
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Net (decrease) increase in cash |
( |
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Cash - beginning of period |
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Cash - end of period |
$ | $ | ||||||
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Supplemental disclosure of noncash investing and financing activities: |
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Initial class A shares subject to possible redemption |
$ | $ | ||||||
Accretion of Class A shares to redemption value |
$ | $ | ||||||
Offering costs included in accounts payable |
$ | $ | ||||||
Deferred underwriting fees payable |
$ | $ |
• | Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. |
• | Level 2: Observable inputs other than Level 1 inputs. Example of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. |
• | Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. |
For The Three Months Ended March 31, 2022 (Unaudited) |
For The Period From January 29, 2021 (Inception) Through March 31, 2021 (Unaudited) |
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Net income (loss) |
$ | $ | ( |
) | ||||
Accretion of temporary equity in excess of fair value |
( |
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Net income (loss) including accretion of temporary equity in excess of fair value |
$ | $ | ( |
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For The Three Months Ended March 31, 2022 |
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Class A-t (Temporary) |
Class A-p (Permanent) |
Class B |
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Basic and diluted net income (loss) per share |
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Numerator |
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Allocation of net income (loss) including accretion of temporary equity in excess of fair value |
$ |
$ |
$ |
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Deemed dividend for accretion of temporary equity in excess of fair value |
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Allocation of net income (loss) and deemed dividend |
$ |
$ |
$ |
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Denominator |
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Weighted average shares outstanding, basic and diluted |
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Basic and diluted net income (loss) per share |
$ |
$ |
$ |
For The Period from January 29, 2021 (Inception) Through March 31, 2021 |
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Class A-t (Temporary) |
Class A-p (Permanent) |
Class B |
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Basic and diluted net income (loss) per share |
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Numerator |
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Allocation of net income (loss) including accretion of temporary equity in excess of fair value |
$ |
( |
) |
$ |
( |
) |
$ |
( |
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Deemed dividend for accretion of temporary equity in excess of fair value |
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Allocation of net income (loss) and deemed dividend |
$ |
( |
) | $ |
( |
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$ |
( |
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Denominator |
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Weighted average shares outstanding, basic and diluted |
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Basic and diluted net income (loss) per share |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
Level 1 |
Level 2 |
Level 3 |
Total |
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Assets: |
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Marketable securities held in Trust Account |
$ |
$ |
— |
$ |
— |
$ |
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Liabilities: |
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Class K Founder Shares derivative liabilities |
— |
— |
Level 1 |
Level 2 |
Level 3 |
Total |
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Assets: |
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Marketable securities held in Trust Account |
$ |
$ |
— |
$ |
— |
$ |
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Liabilities: |
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Class K Founder Shares derivative liabilities |
— |
— |
Input |
March 31, 2022 |
December 31, 2021 |
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Risk-free interest rate |
% | % | ||||||
Term to business combination |
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Expected volatility |
% | % | ||||||
Stock price |
$ | $ | ||||||
Dividend yield |
% | % |
Class K Founder Shares Derivative Liabilities |
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Fair value at January 1, 2022 |
$ | |||
Change in fair value |
( |
) | ||
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Fair value as of March 31, 2022 |
$ | |||
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Class K Founder Shares Derivative Liabilities |
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Fair value at January 29, 2021 (inception) |
$ | |||
Change in fair value |
( |
) | ||
Fair value as of |
$ |
* | Filed herewith. |
** | Furnished herewith. |
KHOSLA VENTURES ACQUISITION CO. III | ||||||
Date: May 13, 2022 | By: | /s/ Peter Buckland | ||||
Name: | Peter Buckland | |||||
Title: | Chief Financial Officer |