Jasper Therapeutics(JSPR) - 2021 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2021, the company reported a net loss of $3,569,534, which includes general and administrative expenses of $562,032 and a change in fair value of the warrant liability of $3,010,000[139] - For the six months ended June 30, 2021, the company had a net income of $1,928,537, primarily due to a change in fair value of the warrant liability of $2,700,000 and interest income of $4,971[140] - Cash used in operating activities for the six months ended June 30, 2021, was $678,626, reflecting adjustments for noncash income from the change in fair value of warrant liability[145] Cash and Securities - As of June 30, 2021, the company had cash and marketable securities in the Trust Account totaling $100,126,108, with interest income used to pay taxes[147] - As of June 30, 2021, the company had cash of $309,730 held outside the Trust Account, intended for identifying and evaluating target businesses[148] Initial Public Offering (IPO) - The company completed its Initial Public Offering on November 22, 2019, raising gross proceeds of $100,000,000 from the sale of 10,000,000 Units at $10.00 per Unit[143] - The company incurred $5,944,772 in transaction costs related to the Initial Public Offering, including $2,000,000 in underwriting fees[144] - The company issued common stock warrants in connection with its Initial Public Offering and private placement, recognized as derivative liabilities at fair value[161] Business Combination - The company entered into a business combination agreement with Jasper Therapeutics, Inc., which includes a PIPE Financing of 10,000,000 shares at $10.00 per share, totaling $100.0 million[136] - The company has until November 22, 2021, to complete a Business Combination, with potential liquidation if not achieved[151] Financial Instruments and Risks - The fair value of warrants from the Initial Public Offering was estimated using Monte Carlo simulations and public trading prices, while private placement warrants were estimated using a Modified Black Scholes Option Pricing Model[161] - The company adopted ASU 2020-06 effective January 1, 2021, which simplifies accounting for certain financial instruments, but it did not impact the condensed consolidated financial statements[162] - As of June 30, 2021, the company was not subject to any market or interest rate risk, with net proceeds from the Initial Public Offering invested in U.S. government treasury bills and money market funds[164] - The company believes there will be no material exposure to interest rate risk due to the short-term nature of its investments[164] Off-Balance Sheet Financing - The company has no off-balance sheet financing arrangements as of June 30, 2021, and does not participate in transactions that create relationships with unconsolidated entities[152]