Form 8-K/A - Current report: [Amend]
15 September 2023 - 7:00AM
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(Amendment No. 1)
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported): August
10, 2023
26 Capital Acquisition
Corp.
(Exact name of registrant as specified in its charter)
Delaware |
|
001-39900 |
|
85-2695910 |
(State or Other Jurisdiction
of Incorporation) |
|
(Commission File Number) |
|
(IRS Employer
Identification No.) |
OfficeEdge Miami
701 Brickell Avenue, Suite 1550
Miami, Florida 33131
(Address of principal executive office and zip code)
(305) 709-6664
(Registrant’s telephone number, including area
code)
Not Applicable
(Former name or former address, if changed since last
report)
Check the appropriate box below if the Form 8-K filing
is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
|
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title
of each class |
|
Trading
Symbol(s) |
|
Name
of each exchange on which registered |
Units, each consisting of one share of Class A common stock, par value $0.0001 per share, and one-half of one Redeemable Warrant |
|
ADERU |
|
The Nasdaq Stock Market LLC |
Shares of Class A common stock, par value $0.0001 per share, included as part of the Units |
|
ADER |
|
The Nasdaq Stock Market LLC |
Redeemable Warrants included as part of the Units |
|
ADERW |
|
The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an
emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging Growth Company ☒
If an emerging growth company, indicate by check mark
if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards
provided pursuant to Section 13(a) of the Exchange Act.
Explanatory Note
26 Capital Acquisition Corp. (the “Company”, “we”,
“our” or “us”) is filing this Amendment No. 1 to the Current Report on Form 8-K, originally filed with the U.S.
Securities and Exchange Commission (the “SEC”) on August 11, 2023, to describe the accounting error the Company, in consultation
with its advisors, identified in the previously issued financial statements as of and for the quarterly period ended March 31, 2023 and
the effect of the accounting error on the Company’s financial statements.
Item 4.02. |
Non-Reliance on Previously Issued Financial Statements. |
The
management of the Company, in consultation with its advisors, identified an accounting error in the previously issued financial statements
as of and for the quarterly period ended March 31, 2023. On August 10, 2023, the Company’s audit committee concluded, after discussion
with the Company’s management and its advisors, that the Company’s unaudited financial statements as of and for the quarterly
period ended March 31, 2023 included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 15, 2023 should no
longer be relied upon due to the error described below and should be restated.
In connection
with the preparation of the Company’s condensed consolidated financial statements as of and for the period ended June 30, 2023,
management identified a presentation error made in its March 31, 2023 condensed consolidated financial statements. The Company determined
that the value of the Company’s convertible promissory notes issued during the three months ended March 31, 2023 (the “Convertible
Notes”) were incorrectly adjusted to fair value instead of being booked at par. The Company determined that, as a result, there
should be a reversal of the change in value of the Convertible Notes as previously disclosed. The Company determined that the proper treatment
is to analyze the Convertible Notes under ASC 815 and results in no bifurcation of a derivative. Management evaluated the conversion option
contained within the Convertible Notes and determined their value to be de minimis. As a result, the Company recorded the value of the
Convertible Notes at par.
In accordance
with the SEC Staff Accounting Bulletin No. 99, “Materiality”, and SEC Staff Accounting Bulletin No. 108, “Considering
the Effects of Prior Year Misstatements when Qualifying Misstatements in Current Year Financial Statements”, the Company evaluated
the changes and determined that the related impact was material to previously presented financial statements.
The
below tables represent the impacts and adjustments to the financial statements:
| |
As previously Reported | | |
Adjustments | | |
As Restated | |
Unaudited Condensed Balance sheet as of March 31, 2023 | |
| | | |
| | | |
| | |
Convertible promissory notes – shares – related party | |
$ | 2,440,294 | | |
$ | 2,559,706 | | |
$ | 5,000,000 | |
Additional Paid in Capital | |
$ | 1,219,483 | | |
$ | (1,219,483 | ) | |
$ | - | |
Accumulated Deficit | |
$ | (21,384,941 | ) | |
$ | (1,340,223 | ) | |
$ | (22,725,164 | ) |
Total Liabilities | |
$ | 21,763,383 | | |
$ | 2,559,706 | | |
$ | 24,323,089 | |
Total Stockholders’ Deficit | |
$ | (20,164,770 | ) | |
$ | (2,559,706 | ) | |
$ | (22,724,476 | ) |
| |
As previously Reported | | |
Adjustments | | |
As Restated | |
Unaudited Condensed Statement of Operations for the Three Months Ended March 31, 2023 | |
| | | |
| | | |
| | |
Unrealized (loss) gain on change in fair value of Convertible Note | |
$ | 1,102,585 | | |
$ | (425,489 | ) | |
$ | 677,096 | |
Total other income (expense) | |
$ | 6,846,150 | | |
$ | (425,489 | ) | |
$ | 6,420,661 | |
Income before provision for income taxes | |
$ | (526,235 | ) | |
$ | (425,489 | ) | |
$ | (951,724 | ) |
Net loss | |
$ | (692,924 | ) | |
$ | (425,489 | ) | |
$ | (1,118,413 | ) |
| |
As previously Reported | | |
Adjustments | | |
As Restated | |
Unaudited Condensed Statements of Changes in Stockholders’ Deficit for the Three Months Ended March 31, 2023 | |
| | | |
| | | |
| | |
Proceeds received in excess of initial fair value of Convertible Promissory Note | |
$ | 2,134,217 | | |
$ | (2,134,217 | ) | |
$ | - | |
Net loss | |
$ | (692,924 | ) | |
$ | (425,489 | ) | |
$ | (1,118,413 | ) |
Accretion for Class A common stock to redemption amount- Additional Paid in Capital | |
$ | (914,734 | ) | |
$ | 914,734 | | |
$ | - | |
Accumulated Deficit | |
$ | (21,384,941 | ) | |
$ | (1,340,223 | ) | |
$ | (22,725,164 | ) |
Total Stockholders’ Deficit | |
$ | (20,164,770 | ) | |
$ | (2,559,706 | ) | |
$ | (22,724,476 | ) |
| |
As previously Reported | | |
Adjustments | | |
As Restated | |
Unaudited Condensed Statements of Cash Flows for the Three Months Ended March 31, 2023 | |
| | | |
| | | |
| | |
Net loss | |
$ | (692,924 | ) | |
$ | (425,489 | ) | |
$ | (1,118,413 | ) |
Unrealized gain on change in fair value of convertible working capital note – related party and Convertible promissory note | |
$ | (1,102,585 | ) | |
$ | 425,489 | | |
$ | (677,096 | ) |
| |
| | | |
| | | |
| | |
Non Cash: | |
| | | |
| | | |
| | |
Proceeds received in excess of initial fair value of Convertible Promissory Note - Shares at initial borrowing | |
$ | 2,134,217 | | |
$ | (2,134,217 | ) | |
$ | - | |
Additionally, due the recording
of the change in fair value of the Convertible Promissory Notes, earnings per share was impacted. The impacts to earnings per share are
shown below:
| |
As previously Reported | | |
Adjustments | | |
As Restated | |
Earnings per Share for the Three Months Ended March 31, 2023 | |
| | | |
| | | |
| | |
Weighted average shares outstanding, Class A common stock | |
| 3,430,228 | | |
| - | | |
| 3,430,228 | |
Basic and diluted net loss per share, Class A common stock | |
$ | (0.07 | ) | |
$ | (0.04 | ) | |
$ | (0.11 | ) |
Weighted average shares outstanding, Class B common stock | |
| 6,875,000 | | |
| - | | |
| 6,875,000 | |
Basic and diluted net loss per share, Class B common stock | |
$ | (0.07 | ) | |
$ | (0.04 | ) | |
$ | (0.11 | ) |
The Company’s management has concluded
that in light of the error described above, a material weakness exists in the Company’s internal control over financial reporting
and that the Company’s disclosure controls and procedures were not effective as of March 31, 2023.
The Company’s management and audit committee
have discussed the matters disclosed in this Current Report on Form 8-K pursuant to this Item 4.02 with its independent registered public
accounting firm.
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
26 Capital
Acquisition Corp. |
|
(Registrant) |
|
|
|
September 14, 2023 |
By: |
/s/ Jason Ader |
|
Name: |
Jason Ader |
|
Title: |
Chief Executive Officer |
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|
Aug. 10, 2023 |
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|
Amendment Description |
26 Capital Acquisition Corp. (the “Company”, “we”,
“our” or “us”) is filing this Amendment No. 1 to the Current Report on Form 8-K, originally filed with the U.S.
Securities and Exchange Commission (the “SEC”) on August 11, 2023, to describe the accounting error the Company, in consultation
with its advisors, identified in the previously issued financial statements as of and for the quarterly period ended March 31, 2023 and
the effect of the accounting error on the Company’s financial statements
|
Document Period End Date |
Aug. 10, 2023
|
Entity File Number |
001-39900
|
Entity Registrant Name |
26 Capital Acquisition
Corp.
|
Entity Central Index Key |
0001822912
|
Entity Tax Identification Number |
85-2695910
|
Entity Incorporation, State or Country Code |
DE
|
Entity Address, Address Line One |
OfficeEdge Miami
|
Entity Address, Address Line Two |
701 Brickell Avenue
|
Entity Address, Address Line Three |
Suite 1550
|
Entity Address, City or Town |
Miami
|
Entity Address, State or Province |
FL
|
Entity Address, Postal Zip Code |
33131
|
City Area Code |
(305)
|
Local Phone Number |
709-6664
|
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Entity Information, Former Legal or Registered Name |
Not Applicable
|
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|
Title of 12(b) Security |
Units, each consisting of one share of Class A common stock, par value $0.0001 per share, and one-half of one Redeemable Warrant
|
Trading Symbol |
ADERU
|
Security Exchange Name |
NASDAQ
|
Shares of Class A common stock, par value $0.0001 per share, included as part of the Units |
|
Title of 12(b) Security |
Shares of Class A common stock, par value $0.0001 per share, included as part of the Units
|
Trading Symbol |
ADER
|
Security Exchange Name |
NASDAQ
|
Redeemable Warrants included as part of the Units |
|
Title of 12(b) Security |
Redeemable Warrants included as part of the Units
|
Trading Symbol |
ADERW
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NASDAQ
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