SmartRent(SMRT) - 2021 Q1 - Quarterly Report

Financial Performance - As of March 31, 2021, the company reported a net loss of approximately $253,000, primarily due to general and administrative expenses of approximately $217,000 [90]. - The company has not generated any operating revenues to date, only non-operating income from interest on the Trust Account [89]. Initial Public Offering (IPO) - The company completed its Initial Public Offering on February 9, 2021, raising approximately $345.0 million from the sale of 34,500,000 shares at $10.00 per share [79]. - The underwriters of the IPO received an underwriting discount of $0.20 per Public Share, totaling approximately $6.9 million, with an additional deferred fee of approximately $12.1 million payable upon completion of a Business Combination [93]. Trust Account and Investments - The company has placed $345.0 million from the IPO and Private Placement in a Trust Account, which will be invested in U.S. government treasury obligations or money market funds until a Business Combination is completed [81]. - The net proceeds from the Initial Public Offering will be invested in U.S. government securities with a maturity of 185 days or less [104]. - The company believes there will be no associated material exposure to interest rate risk due to the short-term nature of its investments [104]. Business Combination - The company entered into a merger agreement with SmartRent.com, Inc. on April 21, 2021, which will constitute a Business Combination [84]. - The company must complete a Business Combination within 24 months from the IPO closing date, or it will cease operations and redeem Public Shares [83]. Financial Position - The company had approximately $1.6 million in its operating bank account and working capital of approximately $2.5 million as of March 31, 2021 [85]. - As of March 31, 2021, the company had no off-balance sheet arrangements [100]. Risk Management - As of March 31, 2021, the company was not subject to any market or interest rate risk [104]. - The company has not engaged in any hedging activities since its inception [105]. - The company does not expect to engage in any hedging activities regarding the market risk it is exposed to [105]. Regulatory Classification - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new or revised accounting standards [102].