ALTIMETER GROWTH CORP. 2
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
We expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete a Business Combination will be successful.
Results of Operations
We have neither engaged in any operations nor generated any revenues to date. Our only activities from inception to September 30, 2022, were organizational activities, those necessary to prepare for the Initial Public Offering, described below, and, after the Initial Public Offering, identifying a target company for a Business Combination. We do not expect to generate any operating revenues until after the completion of our Business Combination. We may generate non-operating income in the form of interest income on marketable securities held in the Trust Account. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses in connection with completing a Business Combination.
For the three months ended September 30, 2022, we had a net income of $1,773,530, which consisted of interest earned on marketable securities held in the trust account of $2,034,887, offset by formation and operating expenses of $231,274 and a loss on the value of the FPA asset of $30,083.
For the three months ended September 30, 2021, we had net income of $941,482, which consisted of a gain on the value of the FPA of $1,627,867 and interest earned on marketable securities held in the trust account of $6,914 offset by formation and operating expenses of $693,299.
For the nine months ended September 30, 2022, we had a net income of $1,366,599, which consisted of formation and operating expenses of $947,771 and a loss on the value of the FPA asset of $396,409, offset by interest earned on marketable securities held in the trust account of $2,710,779.
For the nine months ended September 30, 2021, we had net loss of $702,772 which consisted of a loss on the value of the FPA of $471,389 and formation and operating expenses of $1,193,776, offset by $19,615 of interest earned on marketable securities held in the trust account.
Liquidity, Capital Resources and Going Concern
Until the consummation of the Initial Public Offering, our only source of liquidity was an initial purchase of Class B ordinary shares by our Sponsor and advances from our Sponsor.
On January 11, 2021, we consummated our Initial Public Offering of 45,000,000 shares, which included the full exercise by the underwriters of the over-allotment option to purchase an additional 5,000,000 shares, at $10.00 per share, generating gross proceeds of $450,000,000 (the “Initial Public Offering”). Simultaneously with the closing of the Initial Public Offering, we consummated the sale of an aggregate of 1,100,000 Private Placement Shares to our sponsor at a price of $10.00 per share, generating gross proceeds of $11,000,000.
Following the Initial Public Offering, the full exercise of the over-allotment option, and the sale of the Private Placement Shares, a total of $450,000,000 was placed in the Trust Account, and we had $1,995,000 of cash held outside of the Trust Account, after payment of costs related to the Initial Public Offering, and available for working capital purposes. We incurred $25,304,775 in transaction costs, including $9,000,000 of underwriting fees, $15,750,000 of deferred underwriting fees and $554,775 of other offering costs.
For the nine months ended September 30, 2022, net cash used in operating activities was $499,835. The net income of $1,366,599 was offset by the interest earned on marketable securities held in trust of $2,710,779 and changes in value of the FPA asset of $396,409 and in operating assets and liabilities used $447,936 of cash from operating activities.
For the nine months ended September 30, 2021, net cash used in operating activities was $1,013,769. The net loss of $702,772 was offset by the interest earned on marketable securities held in trust of $19,615 and changes in value of the FPA asset of $471,389 and changes in operating assets and liabilities used $180,007 of cash from operating activities.
At September 30, 2022 and December 31, 2021, we had cash held in the Trust Account of $452,738,926 and $450,028,147, respectively. We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (less taxes payable (if applicable) and deferred underwriting commissions) and the proceeds from the sale of the forward purchase shares to complete our Business Combination. To the extent that our shares or debt is used, in whole or in part, as consideration to complete our Business Combination, the remaining proceeds held in the Trust Account will be used as working capital to finance the operations of the post-Business Combination entity, make other acquisitions and pursue our growth strategies.
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