NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note
1 - Description of Organization, Business Operations and Basis of Presentation
FAST
Acquisition Corp. (the “Company”) is a blank check company incorporated in Delaware on June 4, 2020. The Company was formed
for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business
combination with one or more businesses (the “Business Combination”). The Company is an emerging growth company and, as such,
the Company is subject to all of the risks associated with emerging growth companies.
As
of September 30, 2021, the Company had not commenced any operations. All activity for the period from June 4, 2020 (inception) through
September 30, 2021, relates to the Company’s formation and the preparation of the initial public offering (the “Initial Public
Offering”) described below, and since the Initial Public Offering, the search for a prospective initial Business Combination. The
Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The
Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering.
The Company has selected December 31 as its fiscal year end.
The
Company’s sponsor is FAST Sponsor, LLC, a Delaware limited liability company (the “Sponsor”). The registration statement
for the Company’s Initial Public Offering was declared effective on August 20, 2020. On August 25, 2020, the Company consummated
its Initial Public Offering of 20,000,000 units (the “Units” and, with respect to the Class A common stock included in the
Units being offered, the “Public Shares”) at $10.00 per Unit, generating gross proceeds of $200.0 million, and incurring
offering costs of approximately $11.5 million, inclusive of $7.0 million in deferred underwriting commissions (Note 5).
Simultaneously
with the closing of the Initial Public Offering, the Company consummated the private placement (“Private Placement”) of 6,000,000
warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”) to the Sponsor,
each exercisable to purchase one share of Class A common stock at $11.50 per share, at a price of $1.00 per Private Placement Warrant,
generating gross proceeds to the Company of $6.0 million (Note 4). If the over-allotment option was exercised, the Sponsor could have
purchased an additional amount of up to 600,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant.
Upon
the closing of the Initial Public Offering and the Private Placement, $200.0 million ($10.00 per Unit) of the net proceeds of the sale
of the Units in the Initial Public Offering and the Private Placement were placed in a trust account (“Trust Account”) located
in the United States at JP Morgan Chase Bank, N.A. with Continental Stock Transfer & Trust Company acting as trustee, and are invested
only in U.S. “government securities,” within the meaning of Section 2(a)(16) of the Investment Company Act having a maturity
of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act
of 1940, as amended (the “Investment Company Act”) which invest only in direct U.S. government treasury obligations, as determined
by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the funds held in the
Trust Account as described below.
The
Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering
and the sale of Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward
consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully.
The Company must complete one or more initial Business Combinations having an aggregate fair market value of at least 80% of the net
assets held in the Trust Account (excluding the amount of any deferred underwriting discount held in trust) at the time of the agreement
to enter into the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction
company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest
in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act.
The
Company will provide the holders of the Company’s outstanding Public Shares (the “Public Stockholders”) with the opportunity
to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder
meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek
stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion, subject
to applicable law and stock exchange listing requirements. The Public Stockholders will be entitled to redeem their Public Shares for
a pro rata portion of the amount then held in the Trust Account (initially anticipated to be $10.00 per Public Share). The per-share
amount to be distributed to Public Stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions
the Company will pay to the underwriters (as discussed in Note 5). As a result, such common stock has been recorded at redemption amount
and classified as temporary equity in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting
Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.”
The
Company will proceed with a Business Combination only if a majority of the shares voted are voted in favor of the Business Combination.
The Company will not redeem the Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001. If a
stockholder vote is not required by applicable law or stock exchange listing requirements and the Company does not decide to hold a stockholder
vote for business or other reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Certificate
of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”)
and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transaction
is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem
shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. Additionally,
each public stockholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction.
If the Company seeks stockholder approval in connection with a Business Combination, the initial stockholders (as defined below) have
agreed to vote their Founder Shares (as defined below in Note 4) and any Public Shares purchased during or after the Initial Public Offering
in favor of a Business Combination or don’t vote at all. In addition, the initial stockholders have agreed to waive their redemption
rights with respect to their Founder Shares and Public Shares in connection with the completion of a Business Combination.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The
Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person
with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate
of 15% or more of the Public Shares, without the prior consent of the Company.
The
Sponsor and the Company’s officers and directors (the “initial stockholders”) have agreed not to propose an amendment
to the Certificate of Incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of the Public
Shares if the Company does not complete a Business Combination within the initial Combination Period (as defined below) or with respect
to any other material provisions relating to stockholders’ rights or pre-initial Business Combination activity, unless the Company
provides the Public Stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment.
If
the Company is unable to complete a Business Combination within 24 months from the closing of the Initial Public Offering, or August
25, 2022 (as such period may be extended by the Company’s stockholders in accordance with the Certificate of Incorporation, the
“Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as
reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash,
equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account
(net of permitted withdrawals and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding
Public Shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right to
receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to
the approval of the remaining stockholders and the board of directors, liquidate and dissolve, subject in each case to the Company’s
obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law.
The
initial stockholders agreed to waive their rights to liquidating distributions from the Trust Account with respect to the Founder Shares
if the Company fails to complete a Business Combination within the Combination Period. However, if the initial stockholders acquire Public
Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect
to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. The underwriters have agreed
to waive their rights to the deferred underwriting commission (see Note 5) held in the Trust Account in the event the Company does not
complete a Business Combination within in the Combination Period, and, in such event, such amounts will be included with the other funds
held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is
possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be
only $10.00 or potentially less. In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the
Company if and to the extent any claims by a third party (except for the Company’s independent registered public accounting firm)
for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a letter
of intent, confidentiality or other similar agreement or business combination agreement (a “Target”), reduce the amount of
funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the
Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value
of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or Target that executed
a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply
to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including
liabilities under the Securities Act of 1933, as amended (the “Securities Act”). The Company will seek to reduce the possibility
that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers,
prospective target businesses and other entities with which the Company does business, execute agreements with the Company waiving any
right, title, interest or claim of any kind in or to monies held in the Trust Account.
Proposed
Business Combination
On
February 1, 2021, the Company entered into an agreement and plan of merger (as amended, the “Merger Agreement”) with Fertitta
Entertainment, Inc., a Texas corporation (“FEI”), FAST Merger Corp., a Texas corporation and direct subsidiary of the Company
(“FAST Merger Corp.”) and FAST Merger Sub Inc., a Texas corporation and direct subsidiary of FAST Merger Corp. (“Merger
Sub”), pursuant to which (i) the Company will change its jurisdiction of incorporation to Texas by merging with and into FAST Merger
Corp., with FAST Merger Corp. surviving the merger (the “reincorporation”), and (ii) Merger Sub will merge with and into
FEI with FEI surviving the merger (the “Merger”). Upon consummation of the transactions contemplated by the Merger Agreement
(the “Business Combination”), FEI will become a wholly owned subsidiary of FAST Merger Corp., which is referred to herein
as “New FEI.” On June 30, 2021, the Company, FEI, FAST Merger Corp. and Merger Sub entered into an Amendment No. 1 to the
Merger Agreement (“Amendment No. 1”), pursuant to which the Merger Agreement was amended to, among other things, (i) increase
the number of shares of Class A common stock of New FEI to be issued to the sole stockholder of FEI such that the value of the aggregate
consideration to be received by the sole stockholder increased from approximately $1.97 billion to approximately $3.84 billion in consideration
for the inclusion of certain high quality assets to New FEI including Mastro’s, Catch and Vic & Anthony’s restaurants,
Cadillac Bar and Fish Tales casual concepts and certain specialty entertainment assets, including Fisherman’s Wharf and Pleasure
Pier in Galveston and three aquariums, (ii) provide that the shares of Class B units of Golden Nugget Online Gaming, Inc. (“GNOG”)
issued in connection with the $2.2 million contribution made by LF LLC (a subsidiary of FEI) on March 31, 2021 and any additional shares
acquired by LF LLC prior to the closing of the Business Combination (the “Closing”) as a result of contractually required
contributions will be included as part of the transaction and (iii) extend the “Termination Date” under the Merger Agreement
from November 1, 2021 to December 1, 2021.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Upon
the Closing, each share of common stock of the Company will be converted into one share of Class A common stock of New FEI and all of
the outstanding equity interests of FEI will be acquired for aggregate consideration that is currently valued at approximately $3.84
billion. Such consideration will be paid to Tilman J. Fertitta, the sole stockholder of FEI, by the issuance of a number of shares of
Class B common stock of New FEI, calculated based on the aggregate closing date transaction value, as determined pursuant to the Merger
Agreement, and a $10 per share price of the Class B common stock. The value of the aggregate consideration will change between now and
the Closing based on (i) the difference between the net debt of FEI at the Closing and the current target net debt of $4.6 billion and
(ii) (x) the difference between the 60-day average closing stock price of a share of GNOG as of the day prior to the Closing and $18.46,
the closing stock price of GNOG on January 28, 2021, multiplied by (y) 31,350,625 (subject to adjustment by reason of any stock
dividend, subdivision, reclassification, reorganization, recapitalization, split, combination or exchange of shares, or any other similar
event between the date of the Merger Agreement and the Closing). In addition, in connection with the Business Combination, FEI will complete
an internal reorganization and spin out certain assets which are not intended to be part of the Business Combination (the “Restructuring”).
The
shares of Class B common stock of New FEI will have the same economic terms as the shares of Class A common stock of New FEI, but the
shares of Class B common stock of New FEI will have 10 votes per share. The outstanding shares of Class B common stock of New FEI will
be subject to a “sunset” provision if Mr. Fertitta and other permitted holders of New FEI Class B common stock collectively
cease to beneficially own at least 20% of the number of shares of Class B common stock of New FEI collectively held by Mr. Fertitta and
other permitted transferees as of the effective date of the Business Combination.
On
August 9, 2021, DraftKings Inc. (“DraftKings”) and GNOG announced that they have entered into a definitive agreement pursuant
to which DraftKings will acquire GNOG in an all-stock transaction (the “DraftKings Transaction”). The Company currently expects
that the Business Combination will close in the fourth quarter of 2021, prior to the expected closing of the DraftKings Transaction.
The
Merger Agreement does not prohibit FEI from selling the stock of GNOG and the Company’s consent was not required for the DraftKings
Transaction. The Merger Agreement provides that the Merger Consideration (as defined therein) payable to FEI’s sole stockholder
will be adjusted by (a)(i) an amount equal to the difference between the 60-day average closing stock price of a share of GNOG as of
the day prior to the closing of the Business Combination, multiplied by (ii) the number of shares of stock of GNOG owned by FEI as of
the Closing, and (b)(i) $13.00, multiplied by (ii) 31,494,175. The Merger Consideration payable to the sole stockholder of FEI will increase
or decrease to the extent GNOG’s stock price increases or decreases as a result of the announcement of the DraftKings Transaction
in relation to the $13.00 reference price in the Merger Agreement.
A
subsidiary of FEI, as a holder of GNOG common stock, will receive the merger consideration in the DraftKings Transaction. In the DraftKings
Transaction, GNOG stockholders, including such subsidiary of FEI, will receive a fixed ratio of 0.365 shares of Class A common stock
of a new holding company formed by DraftKings in connection with the Transaction (“New DraftKings”), for each share of common
stock of GNOG. The Company is not a party to the DraftKings Transaction.
It
is anticipated that proceeds available from the Company’s trust account, after giving effect to any and all redemptions and proceeds
from private placements of shares of the Company’s Class A common stock to occur immediately prior to the Closing, of which the
Company currently has commitments for approximately $1.24 billion of proceeds will be used to pay transaction expenses and to partially
pay down FEI’s existing indebtedness.
The
parties to the Merger Agreement have made customary representations, warranties and covenants in the Merger Agreement, including, among
others, covenants with respect to the conduct of FEI, the Company and their respective subsidiaries prior to the Closing. Each of FEI,
the Company, FAST Merger Corp. and Merger Sub has agreed to use its reasonable best efforts to cause the Business Combination to be consummated
as expeditiously as practicable.
The
Closing is subject to certain conditions, including, among other things, (i) approval by the Company’s stockholders, (ii) certain
approvals or other determinations from certain gaming regulatory authorities, as applicable, and the absence of a material adverse regulatory
event with respect to FEI, (iii) the expiration or termination of the waiting period (or any extension thereof) applicable under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, (iv) the Company having at least $5,000,001 of net tangible assets at the Closing,
(v) the receipt by Florida of certain tax opinions regarding the tax qualification of the Business Combination and certain aspects of
the Restructuring, and (vi) the effectiveness of the Registration Statement (as defined below) and the listing of New FEI’s Class
A common stock to be issued in the Business Combination on the New York Stock Exchange (the “NYSE”). In connection with the
execution of the Merger Agreement, Mr. Fertitta has delivered a written consent approving the Merger Agreement and the Business Combination.
Refer
to the Company’s current reports on Form 8-K, filed with the SEC on February 1, 2021 and July 1, 2021, and FAST Merger Corp.’s
registration statement on Form S-4 (as amended), initially filed with the SEC on August 2, 2021 for more information.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Emerging Growth Company
The Company is an “emerging growth company,”
as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”),
and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that
are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting
firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation
in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive
compensation and stockholder approval of any golden parachute payments not previously approved.
Further, Section 102(b)(1) of the JOBS Act exempts
emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that
is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered
under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging
growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth
companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period,
which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company,
as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.
This may make comparison of the Company’s financial statements with another public company that is neither an emerging growth company
nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential
differences in accounting standards used.
Liquidity and Going Concern
The accompanying condensed consolidated financial
statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization
of assets and satisfaction of liabilities in the normal course of business. As of September 30, 2021, the Company had approximately $0.2
million in its operating bank account and a working capital deficit of approximately $2.0 million (not taking into account approximately
$79,000 of tax obligations that may be paid using investment income classified in the Trust Account). The Company has incurred and expects
to incur additional significant costs in pursuit of its financing and acquisition plans. These conditions raise substantial doubt about
the Company’s ability to continue as a going concern within one year after the date that the accompanying condensed consolidated
financial statements are issued.
In connection with the Company’s assessment
of going concern considerations in accordance with FASB ASC 205-40, “Basis of Presentation – Going Concern,” management
has determined that the working capital deficit and mandatory liquidation and subsequent dissolution raise substantial doubt about the
Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities
should the Company be required to liquidate after August 25, 2022. The unaudited condensed consolidated financial statements do not include
any adjustment that might be necessary if the Company is unable to continue as a going concern.
Note 2 - Summary of Significant Accounting
Policies and Basis of Presentation
Basis of Presentation and Principles of
Consolidation
The accompanying condensed consolidated financial
statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”)
for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information
and footnotes required by GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments,
which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented.
Operating results for the periods three and nine months ended September 30, 2021, are not necessarily indicative of the results that may
be expected through December 31, 2021.
The condensed consolidated financial statements
of the Company include its wholly owned subsidiary in connection with the planned merger. All inter-company accounts and transactions
are eliminated in consolidation.
The accompanying unaudited condensed consolidated
financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s
Annual Report on Form 10-K/A filed with the SEC on November 18, 2021.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Restatement of Previously Issued Financial Statements
In preparation of the Company’s unaudited
condensed financial statements for the quarterly period ended September 30, 2021, the Company concluded it should restate its previously
issued financial statements to classify all Class A common stock subject to possible redemption in temporary equity. In accordance with
the SEC and its staff’s guidance on redeemable equity instruments in ASC 480-10-S99, redemption provisions not solely within the
control of the Company, require common stock subject to redemption to be classified outside of permanent equity. The Company had previously
classified a portion of its Class A common stock in permanent equity. Although the Company did not specify a maximum redemption threshold,
its charter currently provides that the Company will not redeem its Public Shares in an amount that would cause its net tangible assets
to be less than $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net
tangible assets. Effective with these condensed consolidated financial statements, the Company revised this interpretation to include
temporary equity in net tangible assets. In connection with the change in presentation for the Class A common stock subject to possible
redemption, the Company has restated its earnings per share calculation to allocate income and losses shared pro rata between the two
classes of shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of shares
participate pro rata in the income and losses of the Company.
In accordance with SEC Staff Accounting Bulletin
No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements
when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the corrections and has determined that
the related impact was material to the previously filed financial statements that contained the error, reported in the Company’s
Form 10-Qs for the quarterly periods ended March 31, 2021, and June 30, 2021 (the “Affected Quarterly Periods”). Therefore,
the Company, in consultation with its Audit Committee, concluded that the Affected Quarterly Periods should be restated to present all
Class A common stock subject to possible redemption as temporary equity and to recognize accretion from the initial book value to redemption
value at the time of its Initial Public Offering. As such, the Company is reporting these restatements to those periods in this quarterly
report.
The impact of the restatement on the financial
statements for the Affected Quarterly Periods is presented below.
The table below presents the
effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance
sheet as of March 31, 2021:
As of March 31, 2021 (Unaudited)
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Total assets
|
|
$
|
200,872,655
|
|
|
|
|
|
|
$
|
200,872,655
|
|
Total liabilities
|
|
$
|
55,875,256
|
|
|
|
|
|
|
$
|
55,875,256
|
|
Class A common stock subject to possible redemption
|
|
|
139,997,390
|
|
|
|
60,002,610
|
|
|
|
200,000,000
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Class A common stock
|
|
|
600
|
|
|
|
(600
|
)
|
|
|
-
|
|
Class B common stock
|
|
|
500
|
|
|
|
-
|
|
|
|
500
|
|
Additional paid-in capital
|
|
|
41,975,057
|
|
|
|
(41,975,057
|
)
|
|
|
-
|
|
Accumulated deficit
|
|
|
(36,976,148
|
)
|
|
|
(18,026,953
|
)
|
|
|
(55,003,101
|
)
|
Total stockholders’ equity (deficit)
|
|
$
|
5,000,009
|
|
|
$
|
(60,002,610
|
)
|
|
$
|
(55,002,601
|
)
|
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit)
|
|
$
|
200,872,655
|
|
|
$
|
-
|
|
|
$
|
200,872,655
|
|
The table below presents
the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported
statement of cash flows for the three months ended March 31, 2021:
Three
Months Ended March 31, 2021 (Unaudited)
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Cash Flow from Operating Activities
|
|
$
|
(610,434
|
)
|
|
$
|
-
|
|
|
$
|
(610,434
|
)
|
Cash Flows used in Investing Activities
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Cash Flows provided by Financing Activities
|
|
$
|
85,000
|
|
|
$
|
-
|
|
|
$
|
85,000
|
|
Supplemental Disclosure of Noncash Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in value of Class A common stock subject to possible redemption
|
|
$
|
(20,841,640
|
)
|
|
$
|
20,841,640
|
|
|
$
|
-
|
|
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The table below presents the effect of the
financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as
of June 30, 2021:
As of June 30, 2021 (Unaudited)
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Total assets
|
|
$
|
200,616,025
|
|
|
|
|
|
|
$
|
200,616,025
|
|
Total liabilities
|
|
$
|
57,895,749
|
|
|
|
|
|
|
$
|
57,895,749
|
|
Class A common stock subject to possible redemption
|
|
|
137,720,270
|
|
|
|
62,279,730
|
|
|
|
200,000,000
|
|
Preferred stock
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Class A common stock
|
|
|
623
|
|
|
|
(623
|
)
|
|
|
-
|
|
Class B common stock
|
|
|
500
|
|
|
|
-
|
|
|
|
500
|
|
Additional paid-in capital
|
|
|
44,252,155
|
|
|
|
(44,252,155
|
)
|
|
|
-
|
|
Accumulated deficit
|
|
|
(39,253,272
|
)
|
|
|
(18,026,953
|
)
|
|
|
(57,280,225
|
)
|
Total stockholders’ equity (deficit)
|
|
$
|
5,000,006
|
|
|
$
|
(62,279,730
|
)
|
|
$
|
(57,279,725
|
)
|
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit)
|
|
$
|
200,616,025
|
|
|
$
|
-
|
|
|
$
|
200,616,025
|
|
The table below presents the
effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement
of cash flows for the six months ended June 30, 2021:
Six Months ended
June 30, 2021 (Unaudited)
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Cash Flow from Operating Activities
|
|
$
|
(777,595
|
)
|
|
$
|
-
|
|
|
$
|
(777,595
|
)
|
Cash Flows used in Investing Activities
|
|
$
|
96,478
|
|
|
$
|
-
|
|
|
$
|
96,478
|
|
Cash Flows provided by Financing Activities
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
Supplemental Disclosure of Noncash Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in value of Class A common stock subject to possible redemption
|
|
$
|
(23,118,761
|
)
|
|
$
|
23,118,761
|
|
|
$
|
-
|
|
The impact
to the reported amounts of weighted average shares outstanding and basic and diluted earnings per common share is presented below for
the Affected Quarterly Periods:
|
|
Earnings Per Share
|
|
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Three Months Ended March 31, 2021 (Unaudited)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(20,841,633
|
)
|
|
$
|
-
|
|
|
$
|
(20,841,633
|
)
|
Weighted average shares outstanding - Class A common stock
|
|
|
20,000,000
|
|
|
|
-
|
|
|
|
20,000,000
|
|
Basic and diluted earnings per share - Class A common stock
|
|
$
|
-
|
|
|
$
|
(0.83
|
)
|
|
$
|
(0.83
|
)
|
Weighted average shares outstanding - Class B common stock
|
|
|
5,000,000
|
|
|
$
|
-
|
|
|
$
|
5,000,000
|
|
Basic and diluted earnings per share - Class B common stock
|
|
$
|
(4.17
|
)
|
|
$
|
3.34
|
|
|
$
|
(0.83
|
)
|
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
Earnings Per Share
|
|
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Three Months Ended June 30, 2021 (Unaudited)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(2,277,124
|
)
|
|
$
|
-
|
|
|
$
|
(2,277,124
|
)
|
Weighted average shares outstanding - Class A common stock
|
|
|
20,000,000
|
|
|
|
-
|
|
|
|
20,000,000
|
|
Basic and diluted earnings per share - Class A common stock
|
|
$
|
-
|
|
|
$
|
(0.09
|
)
|
|
$
|
(0.09
|
)
|
Weighted average shares outstanding - Class B common stock
|
|
$
|
5,000,000
|
|
|
$
|
-
|
|
|
$
|
5,000,000
|
|
Basic and diluted earnings per share - Class B common stock
|
|
$
|
(0.45
|
)
|
|
$
|
0.36
|
|
|
$
|
(0.09
|
)
|
|
|
Earnings Per Share
|
|
|
|
As Reported
|
|
|
Adjustment
|
|
|
As Restated
|
|
Six Months ended June 30, 2021 (Unaudited)
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(23,118,757
|
)
|
|
$
|
-
|
|
|
$
|
(23,118,757
|
)
|
Weighted average shares outstanding - Class A common stock
|
|
|
20,000,000
|
|
|
|
-
|
|
|
|
20,000,000
|
|
Basic and diluted earnings per share - Class A common stock
|
|
$
|
-
|
|
|
$
|
(0.92
|
)
|
|
$
|
(0.92
|
)
|
Weighted average shares outstanding - Class B common stock
|
|
|
5,000,000
|
|
|
|
-
|
|
|
|
5,000,000
|
|
Basic and diluted earnings per share - Class B common stock
|
|
$
|
(4.62
|
)
|
|
$
|
3.70
|
|
|
$
|
(0.92
|
)
|
Use of Estimates
The preparation of unaudited condensed consolidated
financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed
consolidated financial statements and the reported amounts of income and expenses during the reporting period. Making estimates requires
management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation
or set of circumstances that existed at the date of the accompanying unaudited condensed consolidated financial statements, which management
considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual
results could differ significantly from those estimates.
Concentration of Credit Risk
Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal
Deposit Insurance Corporation coverage limit of $250,000, and investments held in Trust Account. The Company has not experienced losses
on these accounts and management believes the Company is not exposed to significant risks on such accounts.
Cash and Cash Equivalents
The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company had no cash equivalents outside of
funds held in the Trust Account as of September 30, 2021, and December 31, 2020.
Investments Held in the Trust Account
The Company’s portfolio of investments held
in the Trust Account is comprised of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company
Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities and generally
have a readily determinable fair value, or a combination thereof. When the Company’s investments held in the Trust Account are comprised
of U.S. government securities, the investments are classified as trading securities. When the Company’s investments held in the
Trust Account are comprised of money market funds, the investments are recognized at fair value. Trading securities and investments in
money market funds are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from
the change in fair value of these securities is included in income on investments held in the Trust Account in the accompanying unaudited
condensed statement of operations. The estimated fair values of investments held in the Trust Account are determined using available market
information. The Company withdrew approximately $11,000, and $96,000 on interest from the Trust to pay franchise taxes during the three
and nine months ended September 30, 2021
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Fair Value of Financial Instruments
The fair value of the Company’s assets and
liabilities which qualify as financial instruments under the FASB ASC Topic 820, “Fair Value Measurements,” equal or approximate
the carrying amounts represented in the condensed balance sheets.
Fair Value Measurements
Fair value is defined as the price that would
be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement
date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). These tiers consist of:
|
●
|
Level 1, defined as unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
|
|
|
|
|
●
|
Level 2, defined as quoted prices in markets that are not active or financial instruments for which significant inputs to models are observable (including but not limited to quoted prices for similar securities, interest rates, foreign exchange rates, volatility and credit risk), either directly or indirectly; and
|
|
|
|
|
●
|
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
|
In some circumstances, the inputs used to measure
fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is
categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
As of September 30, 2021, and December 31, 2020,
the carrying values of cash, accounts payable, accrued expenses, prepaid expenses and franchise tax payable approximate their fair values
due to the short-term nature of the instruments. The Company’s investments held in Trust Account are comprised of investments in
U.S. Treasury securities with an original maturity of 185 days or less or investments in a money market funds that comprise only U.S.
Treasury securities and are recognized at fair value. The fair value of investments held in Trust Account is determined using quoted prices
in active markets.
Derivative Warrant Liabilities
The Company does not use derivative instruments
to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including
issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives,
pursuant to ASC 480 and FASB ASC Topic 815, Derivatives and Hedging (“ASC 815”), paragraph 15 Embedded Derivatives
(“ASC 815-15”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities
or as equity, is re-assessed at the end of each reporting period.
The 10,000,000 warrants issued in connection with
the Initial Public Offering (the “Public Warrants”) and the 6,000,000 Private Placement Warrants are recognized as derivative
liabilities in accordance with ASC 815, paragraph 40, Contracts in Entity’s Own Equity (“ASC 815-40”). Accordingly,
the Company recognizes the warrant instruments as liabilities at fair value and adjusts the instruments to fair value at each reporting
period. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized
in the Company’s statement of operations. The fair value of the Public Warrants issued in connection with the Public Offering and
Private Placement Warrants were initially measured at fair value using a Monte Carlo simulation model and subsequently, the fair value
of the Private Placement Warrants have been estimated using a Monte Carlo simulation model each measurement date. The fair value of Public
Warrants issued in connection with the Initial Public Offering have subsequently been measured based on the listed market price of such
warrants.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Class A Common Stock Subject to Possible
Redemption
The Company accounts for its Class A common stock
subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity.”
Shares of Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair
value. Shares of conditionally redeemable Class A common stock (including Class A common stock that feature redemption rights that are
either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s
control) are classified as temporary equity. At all other times, shares of Class A common stock are classified as stockholders’
equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s
control and subject to the occurrence of uncertain future events. Accordingly, at September 30, 2021 and December 31, 2020, 20,000,000
shares of Class A common stock subject to possible redemption, respectively, are presented as temporary equity, outside of the stockholders’
equity section of the Company’s condensed consolidated balance sheet.
Effective with the closing of the Initial Public
Offering, the Company recognized the accretion from initial book value to redemption amount, which, resulted in charges against additional
paid-in capital (to the extent available) and accumulated deficit.
Net Income (Loss) Per Common Share
The Company complies with accounting and disclosure
requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as
Class A common stock and Class B common stock. Income and losses are shared pro rata between the two classes of shares. Net income (loss)
per common share is calculated by dividing the net income (loss) by the weighted average shares of common stock outstanding for the respective
period.
The Company did not consider the effect of the
warrants issued in connection with the Initial Public Offering and the Private Placement to purchase an aggregate of 16,000,000 shares
of common stock in the calculation of diluted income (loss) per share because their exercise is contingent upon future events and since
their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted net loss per share is the same as basic
net loss per share for the three months ended September 30, 2021 and 2020, for the nine months ended September 30, 2021, and the period
from June 4, 2020 (inception) through September 30, 2020. Accretion associated with the redeemable Class A common stock is excluded from
earnings per share as the redemption value approximates fair value.
The following table reflects presents a reconciliation
of the numerator and denominator used to compute basic and diluted net loss per share for each class of common stock:
|
|
For the Three Months Ended
|
|
|
For the Nine Months Ended
|
|
|
|
September 30, 2021
|
|
|
September 30, 2021
|
|
|
|
Class A
|
|
|
Class B
|
|
|
Class A
|
|
|
Class B
|
|
Basic and diluted net loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of net loss
|
|
$
|
(37,847,531
|
)
|
|
$
|
(9,461,883
|
)
|
|
$
|
(56,342,537
|
)
|
|
$
|
(14,085,634
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average common shares outstanding
|
|
|
20,000,000
|
|
|
|
5,000,000
|
|
|
|
20,000,000
|
|
|
|
5,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per common share
|
|
$
|
(1.89
|
)
|
|
$
|
(1.89
|
)
|
|
$
|
(2.82
|
)
|
|
$
|
(2.82
|
)
|
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
For the Three Months Ended
September
30, 2020
|
|
|
For The Period From
June 4, 2020 (inception) through September 30, 2020
|
|
|
|
Class A
|
|
|
Class B
|
|
|
Class A
|
|
|
Class B
|
|
Basic and diluted net loss per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
Allocation of net loss
|
|
$
|
(161,989
|
)
|
|
$
|
(100,696
|
)
|
|
$
|
(164,968
|
)
|
|
$
|
(115,924
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average common shares outstanding
|
|
|
8,043,478
|
|
|
|
5,000,000
|
|
|
|
7,115,385
|
|
|
|
5,000,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per common share
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
Income Taxes
The Company follows the asset and liability method
of accounting for income taxes under FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for
the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply
to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax
assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances
are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. As of September 30, 2021, and December
31, 2020, the Company had deferred tax assets with a full valuation allowance against them.
FASB ASC 740 prescribes a recognition threshold
and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in
a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing
authorities. There were no unrecognized tax benefits as of September 30, 2021. The Company recognizes accrued interest and penalties related
to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of September
30, 2021, and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments,
accruals or material deviation from its position.
The Company may be subject to potential examination
by U.S. federal, U.S. state or foreign taxing authorities in the area of income taxes. These potential examinations may include questioning
the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with U.S. federal, U.S. state
and foreign tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially
change over the next twelve months.
Recent Issued Accounting Standards
In August 2020, the FASB issued Accounting Standards
Update (“ASU”) No. 2020-06, Debt-Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts
in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”),
which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also
removes certain settlement conditions that are required for equity-linked contracts to qualify for the derivative scope exception, and
it simplifies the diluted earnings per share calculation in certain areas. The guidance may be early adopted for fiscal years beginning
after December 15, 2020, and interim periods within those fiscal years. The Company is currently evaluating the impact of this standard
on its condensed consolidated financial statements and related disclosures.
The Company’s management does not believe
that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying
financial statements.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Offering Costs Associated with the Initial
Public Offering
Offering costs consisted of legal, accounting,
underwriting fees and other costs incurred through the Initial Public Offering that were directly related to the Initial Public Offering.
Offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value
basis, compared to total proceeds received. Offering costs associated with derivative warrant liabilities were expensed as incurred and
presented as non-operating expenses in the statement of operations. Offering costs associated with the Class A common stock issued were
charged against the carrying value of the shares of Class A common stock upon the completion of the Initial Public Offering. The Company
classifies deferred underwriting commissions as non-current liabilities as their liquidation is not reasonably expected to require the
use of current assets or require the creation of current liabilities.
Note 3 - Initial Public Offering
On August 25, 2020, the Company consummated its
Initial Public Offering of 20,000,000 Units at $10.00 per Unit, generating gross proceeds of $200.0 million, and incurring offering costs
of approximately $11.5 million, inclusive of $7.0 million in deferred underwriting commissions.
Each Unit consists of one share of Class A common
stock, and one-half of one redeemable warrant (each, a “Public Warrant”). Each Public Warrant entitles the holder to purchase
one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 6).
Note 4 - Related Party Transactions
Founder Shares
On June 19, 2020, the Sponsor purchased 7,187,500
shares of the Company’s Class B common stock, par value $0.0001 per share, (the “Founder Shares”) for an aggregate price
of $25,000. On August 4, 2020, the Company effected a share capitalization resulting in an aggregate of 5,750,000 Class B common stock
outstanding. All shares and associated amounts have been retroactively restated to reflect the share capitalization. The initial stockholders
agreed to forfeit up to 750,000 Founder Shares to the extent that the over-allotment option was not exercised in full by the underwriters.
The forfeiture would have been adjusted to the extent that the over-allotment option was not exercised in full by the underwriters so
that the Founder Shares will represent 20.0% of the Company’s issued and outstanding shares after the Initial Public Offering. The
over-allotment expired unexercised on October 5, 2020, resulting in the forfeiture of 750,000 Founder Shares.
The initial stockholders agreed, subject to limited
exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (i) one year after the completion
of the initial Business Combination and (ii) the date following the completion of the initial Business Combination on which the Company
completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Company’s stockholders
having the right to exchange their common stock for cash, securities or other property. Notwithstanding the foregoing, if (1) the last
reported sales price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations,
reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days
after the initial Business Combination or (2) if the Company consummates a transaction after the initial Business Combination which results
in the Company’s stockholders having the right to exchange their shares for cash, securities or other property, the Founder Shares
will be released from the lock-up.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Private Placement Warrants
Simultaneously with the closing of the Initial
Public Offering, the Company consummated the Private Placement of 6,000,000 Private Placement Warrants to the Sponsor, each exercisable
to purchase one share of Class A common stock at $11.50 per share, at a price of $1.00 per Private Placement Warrant, generating gross
proceeds to the Company of $6.0 million. If the over-allotment option was exercised, the Sponsor could have purchased an additional amount
of up to 600,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant. The over-allotment expired unexercised
on October 5, 2020.
A certain portion of the proceeds from the sale
of the Private Placement Warrants to the Sponsor was added to the proceeds from the Initial Public Offering held in the Trust Account.
If the Company does not complete a Business Combination within the Combination Period, the Private Placement Warrants will expire worthless.
The Private Placement Warrants will be non-redeemable for cash and exercisable on a cashless basis so long as they are held by the Sponsor
or its permitted transferees.
The Sponsor and the Company’s officers and
directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their Private Placement Warrants until 30 days
after the completion of the initial Business Combination.
Related Party Loans
In order to fund working capital deficiencies
or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the
Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital
Loans”). If the Company completes a Business Combination, the Company may repay the Working Capital Loans out of the proceeds of
the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust
Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account
to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. The Working
Capital Loans would either be repaid upon consummation of a Business Combination or, at the lenders’ discretion, up to $1.5 million
of such Working Capital Loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant.
The warrants would be identical to the Private Placement Warrants. Except for the foregoing, the terms of such Working Capital Loans,
if any, have not been determined and no written agreements exist with respect to such loans. To date, the Company had no borrowings under
the Working Capital Loans.
Administrative Services Agreement
The Company agreed that, commencing on the date
that the Company’s securities are first listed on the New York Stock Exchange and continuing until the earlier of the Company’s
consummation of a Business Combination and the Company’s liquidation, the Company will pay the Sponsor a total of $15,000 per month
for office space, utilities, secretarial and administrative support services provided to members of the Company’s management team.
The Company incurred $45,000 and $135,000 for such services for the three- and nine-month periods ended September 30, 2021, respectively,
and incurred $15,000 for the three months ended September 30, 2020, and the period from June 4, 2020 (inception) through September 30,
2020, included as general and administrative expenses - related parties on the condensed consolidated statement of operations. At September
30, 2021, $15,000 was included as prepaid expenses on the accompanying condensed consolidated balance sheets for such services. At December
31, 2020, there were no prepaid or accrued expenses on the accompanying condensed consolidated balance sheets for such services.
The Sponsor, officers and directors, or any of
their respective affiliates will be reimbursed for any out-of-pocket expenses incurred in connection with activities on the Company’s
behalf such as identifying potential target businesses and performing due diligence on suitable Business Combinations. The Company’s
audit committee will review on a quarterly basis all payments that were made to the Sponsor, officers or directors, or their affiliates.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 5 - Commitments and Contingencies
Registration Rights
The holders of Founder Shares, Private Placement
Warrants and warrants that may be issued upon conversion of Working Capital Loans, if any (and any shares of Class A common stock issuable
upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans and upon
conversion of the Founder Shares), are entitled to registration rights pursuant to a registration rights agreement. These holders will
be entitled to certain demand and “piggyback” registration rights. The Company will bear the expenses incurred in connection
with the filing of any such registration statements.
Underwriting Agreement
The underwriters were entitled to an underwriting
discount of $0.20 per unit, or $4.0 million in the aggregate, paid upon the closing of the Initial Public Offering. In addition, $0.35
per unit, or $7.0 million in the aggregate will be payable to the underwriters for deferred underwriting commissions. The deferred fee
will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business
Combination, subject to the terms of the underwriting agreement.
Risks and Uncertainties
Management continues to evaluate the impact of
the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have a negative effect
on the Company’s financial position, results of its operations, and/or search for a target company, the specific impact is not readily
determinable as of the date of these condensed consolidated financial statements. The condensed consolidated financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
Note 6 - Warrants
As of September 30, 2021, and December 31, 2020,
the Company had 10,000,000 Public Warrants and 6,000,000 Private Placement Warrants outstanding.
Public Warrants may only be exercised in whole
and only for a whole number of shares. No fractional Public Warrants will be issued upon separation of the Units and only whole Public
Warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination
and (b) 12 months from the closing of the Initial Public Offering; provided in each case that the Company has an effective registration
statement under the Securities Act covering the issuance of the shares of Class A common stock issuable upon exercise of the Public Warrants
and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless
basis and such cashless exercise is exempt from registration under the Securities Act). The Company has agreed that as soon as practicable,
but in no event later than 15 business days after the closing of the initial Business Combination, the Company will use its best efforts
to file with the SEC and have an effective registration statement covering the shares of Class A common stock issuable upon exercise of
the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed.
If a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective by the 60th business
day after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration
statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on
a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above,
if the Company’s shares of Class A common stock are at the time of any exercise of a warrant not listed on a national securities
exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company
may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance
with Section 3(a)(9) of the Securities Act and, in the event the Company so elect, it will not be required to file or maintain in effect
a registration statement, and in the event the Company does not so elect, it will use our best efforts to register or qualify the shares
under applicable blue sky laws to the extent an exemption is not available. The Public Warrants will expire five years after the completion
of a Business Combination or earlier upon redemption or liquidation.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The warrants have an exercise price of $11.50
per share, subject to adjustments. In addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities
for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price
of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by
the board of directors and, in the case of any such issuance to the initial stockholders or their affiliates, without taking into account
any Founder Shares held by the initial stockholders or such affiliates, as applicable, prior to such issuance) (the “Newly Issued
Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest
thereon, available for the funding of the initial Business Combination on the date of the consummation of the Company’s initial
Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Class A common stock during the 20
trading day period starting on the trading day after the day on which the Company consummates its initial Business Combination (such price,
the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to
be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described
below under “Redemption of warrants for cash” will be adjusted (to the nearest cent) to be equal to 185% of the higher of
the Market Value and the Newly Issued Price.
The Private Placement Warrants are identical to
the Public Warrants, except that the Private Placement Warrants and the shares of Class A common stock issuable upon exercise of the Private
Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject
to certain limited exceptions. Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the Sponsor
or its permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsor or its permitted transferees,
the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants.
Once the warrants become exercisable, the Company
may redeem the outstanding warrants for cash (except as described herein with respect to the Private Placement Warrants):
|
●
|
in whole and not in part;
|
|
|
|
|
●
|
at a price of $0.01 per warrant;
|
|
|
|
|
●
|
upon a minimum of 30 days’ prior written notice of redemption; and
|
|
|
|
|
●
|
if, and only if, the last sales price of the Class A common stock equals or exceeds $18.00 per share on each of 20 trading days within the 30-trading day period ending on the third business day prior to the date on which the Company sends the notice of redemption to the warrant holders.
|
If the Company calls the Public Warrants for redemption,
management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,”
as described in the warrant agreement.
In no event will the Company be required to net
cash settle any warrant. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates
the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they
receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly,
the warrants may expire worthless.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 7- Class A Common Stock Subject to Possible
Redemption
The Company’s Class A common stock feature
certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of future events.
The Company is authorized to issue 20,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of the Company’s
Class A common stock are entitled to one vote for each share. As of September 30, 2021, there were 20,000,000 shares of Class A common
stock outstanding, which were all subject to possible redemption and classified outside of permanent equity in the condensed balance sheets.
The Class A common stock subject to possible redemption
reflected on the condensed balance sheet is reconciled on the following table:
Gross proceeds
|
|
$
|
200,000,000
|
|
Less:
|
|
|
|
|
Fair value of Public Warrants at issuance
|
|
|
(8,000,000
|
)
|
Offering costs allocated to Class A common stock subject to possible redemption
|
|
|
(11,071,453
|
)
|
Plus:
|
|
|
|
|
Accretion of carrying value to redemption value
|
|
|
19,071,453
|
|
Class A common stock subject to possible redemption
|
|
$
|
200,000,000
|
|
Note 8 - Stockholders’ Deficit
Preferred Stock - The Company is
authorized to issue 1,000,000 shares of preferred stock, par value $0.0001 per share, with such designations, voting and other rights
and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, 2021, and December
30, 2020, there were no shares of preferred stock issued or outstanding.
Class A Common Stock - The Company
is authorized to issue 380,000,000 shares of Class A common stock with a par value of $0.0001 per share. As of September 30, 2021, and
December 31, 2020, there were 20,000,000 shares of Class A common stock issued or outstanding. Of the outstanding shares of Class A common
stock, 20,000,000 shares were subject to possible redemption at September 30, 2021 and December 31, 2020, and therefore classified outside
of permanent equity. See Note 7.
Class B Common Stock - The Company
is authorized to issue 20,000,000 shares of Class B common stock with a par value of $0.0001 per share. As of September 30, 2021, and
December 31, 2020, there were 5,000,000 shares of Class B common stock issued outstanding.
Stockholders of record are entitled to one vote
for each share held on all matters to be voted on by stockholders. Holders of Class A common stock and holders of Class B common stock
will vote together as a single class on all matters submitted to a vote of our stockholders except as required by law.
The Class B common stock will automatically convert
into Class A common stock at the time of the initial Business Combination on a one-for-one basis, subject to adjustment for stock splits,
stock dividends, reorganizations, recapitalizations and the like. In the case that additional shares of Class A common stock or equity-linked
securities are issued or deemed issued in connection with the initial Business Combination, the number of shares of Class A common stock
issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 20% of the total number of shares
of Class A common stock outstanding after such conversion (after giving effect to any redemptions of shares of Class A common stock by
Public Stockholders), including the total number of shares of Class A common stock issued, or deemed issued or issuable upon conversion
or exercise of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the
consummation of the initial Business Combination, excluding any shares of Class A common stock or equity-linked securities or rights exercisable
for or convertible into shares of Class A common stock issued, or to be issued, to any seller in the initial Business Combination and
any Private Placement Warrants issued to the Sponsor, officers or directors upon conversion of Working Capital Loans, provided that such
conversion of Founder Shares will never occur on a less than one-for-one basis.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 9. Fair Value Measurements
The following table presents information about
the Company’s financial assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2021, and
December 31, 2020 by level within the fair value hierarchy:
September 30, 2021
Description
|
|
Quoted Prices in Active Markets
(Level 1)
|
|
|
Significant Other Observable Inputs
(Level 2)
|
|
|
Significant Other Unobservable Inputs
(Level 3)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Investments held in Trust Account
|
|
$
|
200,017,289
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative warrant liabilities -Public Warrants
|
|
$
|
59,500,000
|
|
|
$
|
-
|
|
|
|
|
|
Derivative warrant liabilities -Private Warrants
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
36,060,000
|
|
December 31, 2020
Description
|
|
Quoted Prices in Active Markets
(Level 1)
|
|
|
Significant Other Observable Inputs
(Level 2)
|
|
|
Significant Other Unobservable Inputs
(Level 3)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Investments held in Trust Account
|
|
$
|
200,067,535
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative warrant liabilities -Public Warrants
|
|
$
|
17,400,000
|
|
|
$
|
-
|
|
|
|
|
|
Derivative warrant liabilities -Private Warrants
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
10,920,000
|
|
Transfers to/from Levels 1, 2, and 3 are recognized
at the beginning of the reporting period. There were no transfers between levels in the three- or nine-month periods ended September 30,
2021.
The fair value of the Public Warrants issued in
connection with the Public Offering and Private Placement Warrants were initially measured at fair value using a Monte Carlo simulation
model and subsequently, the fair value of the Private Placement Warrants have been estimated using a Monte Carlo simulation model each
measurement date. The fair value of Public Warrants issued in connection with the Initial Public Offering have subsequently been measured
based on the listed market price of such warrants.
For the three and nine months ended September
30, 2021, the Company recognized a charge from an increase in the fair value of liabilities of approximately $46.6 million and $67.2 million,
respectively, presented as change in fair value of derivative warrant liabilities on the accompanying unaudited condensed consolidated
statement of operations.
FAST
ACQUISITION CORP.
NOTES
TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following table provides quantitative information
regarding Level 3 fair value measurements inputs at their measurement dates:
|
|
As of
September 30,
2021
|
|
|
As of
December 31,
2020
|
|
Stock Price
|
|
$
|
12.71
|
|
|
$
|
10.24
|
|
Volatility
|
|
|
45.0
|
%
|
|
|
16.0
|
%
|
Expected life of the options to convert
|
|
|
5.25
|
|
|
|
5.5
|
|
Risk-free rate
|
|
|
0.98
|
%
|
|
|
0.43
|
%
|
Dividend yield
|
|
|
0.0
|
%
|
|
|
0.0
|
%
|
The change in the fair value of the derivative
warrant liabilities measured with Level 3 inputs for the period for the three and nine months ended September 30, 2021, is summarized
as follows:
Warrant liabilities at January 1, 2021 - Level 3 measurements
|
|
$
|
10,920,000
|
|
Change in fair value of warrant liabilities - Level 3 measurements
|
|
|
7,320,000
|
|
Warrant liabilities at March 31, 2021 - Level 3 measurements
|
|
$
|
18,240,000
|
|
Change in fair value of warrant liabilities - Level 3 measurements
|
|
|
900,000
|
|
Warrant liabilities at June 30, 2021 - Level 3 measurements
|
|
$
|
19,140,000
|
|
Change in fair value of warrant liabilities - Level 3 measurements
|
|
|
16,920,000
|
|
Warrant liabilities at September 30, 2021 - Level 3 measurements
|
|
$
|
36,060,000
|
|
Note 10 - Subsequent Events
The Company evaluated subsequent events and transactions
that occurred after the balance sheet date through the date the unaudited condensed consolidated financial statements were issued. Based
upon this review the Company did not identify any subsequent events that would have required adjustment or disclosure in the unaudited
condensed financial statements.