10-Q 1 d350821d10q.htm FORM 10-Q Form 10-Q
P1YP1Yfalse0001822366Q1--12-310.23 0001822366 2021-12-31 0001822366 2022-03-31 0001822366 2022-01-01 2022-03-31 0001822366 2020-12-11 2020-12-11 0001822366 2020-12-11 0001822366 2021-01-01 2021-03-31 0001822366 2022-06-11 2022-06-11 0001822366 2020-12-31 0001822366 2021-03-31 0001822366 us-gaap:CommonClassBMember 2022-03-31 0001822366 us-gaap:CommonClassAMember 2022-03-31 0001822366 altu:PrivatePlacementWarrantsMember 2022-03-31 0001822366 srt:MinimumMember 2022-03-31 0001822366 altu:SponsorMember 2022-03-31 0001822366 us-gaap:CommonClassBMember altu:ProposedPublicOfferingMember 2022-03-31 0001822366 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001822366 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-03-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2022-03-31 0001822366 altu:PublicWarrantsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001822366 us-gaap:FairValueInputsLevel1Member altu:PublicWarrantsMember us-gaap:FairValueMeasurementsRecurringMember 2022-03-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember altu:PrivatePlacementWarrantsMember 2022-03-31 0001822366 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember altu:PrivatePlacementWarrantsMember 2022-03-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2022-03-31 0001822366 altu:SponsorMember altu:WorkingCapitalLoansMember 2022-03-31 0001822366 altu:ProspectiveWarrantRedemptionMember altu:TriggerPriceOneMember us-gaap:CommonClassAMember 2022-03-31 0001822366 altu:ProspectiveWarrantRedemptionMember us-gaap:CommonClassAMember altu:TriggerPriceTwoMember 2022-03-31 0001822366 altu:WarrantLiabilityMember altu:PrivatePlacementWarrantsMember us-gaap:FairValueInputsLevel3Member 2022-03-31 0001822366 altu:WarrantLiabilityMember us-gaap:FairValueMeasurementsRecurringMember altu:PublicWarrantsMember 2022-03-31 0001822366 altu:AdvancesFromRelatedPartyMember 2022-03-31 0001822366 altu:SponsorMember altu:PromissoryNoteRelatedPartyMember 2022-03-31 0001822366 altu:DueToRelatedPartyMember 2022-03-31 0001822366 us-gaap:CommonClassBMember 2021-12-31 0001822366 us-gaap:CommonClassAMember 2021-12-31 0001822366 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001822366 us-gaap:MoneyMarketFundsMember us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member 2021-12-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001822366 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001822366 altu:PublicWarrantsMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember altu:PrivatePlacementWarrantsMember 2021-12-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember altu:PrivatePlacementWarrantsMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001822366 us-gaap:FairValueMeasurementsRecurringMember us-gaap:FairValueInputsLevel1Member altu:PublicWarrantsMember 2021-12-31 0001822366 altu:WorkingCapitalLoansMember altu:SponsorMember 2021-12-31 0001822366 altu:WarrantLiabilityMember altu:PrivatePlacementWarrantsMember us-gaap:FairValueInputsLevel3Member 2021-12-31 0001822366 altu:PublicWarrantsMember altu:WarrantLiabilityMember us-gaap:FairValueMeasurementsRecurringMember 2021-12-31 0001822366 altu:SponsorMember 2021-12-31 0001822366 altu:AdvancesFromRelatedPartyMember 2021-12-31 0001822366 altu:SponsorMember altu:PromissoryNoteRelatedPartyMember 2021-12-31 0001822366 altu:DueToRelatedPartyMember 2021-12-31 0001822366 altu:WarrantLiabilityMember altu:PrivatePlacementWarrantsMember us-gaap:FairValueInputsLevel3Member 2021-01-01 2021-12-31 0001822366 us-gaap:IPOMember 2021-01-01 2021-12-31 0001822366 us-gaap:CommonClassAMember 2021-01-01 2021-12-31 0001822366 altu:PrivatePlacementWarrantsMember 2022-01-01 2022-03-31 0001822366 us-gaap:CommonClassBMember 2022-01-01 2022-03-31 0001822366 us-gaap:CommonClassAMember 2022-01-01 2022-03-31 0001822366 altu:SponsorMember 2022-01-01 2022-03-31 0001822366 altu:ProspectiveWarrantRedemptionMember 2022-01-01 2022-03-31 0001822366 altu:ProspectiveWarrantRedemptionMember altu:TriggerPriceOneMember us-gaap:CommonClassAMember 2022-01-01 2022-03-31 0001822366 altu:ClassACommonStockAndWarrantsMember 2022-01-01 2022-03-31 0001822366 us-gaap:WarrantMember 2022-01-01 2022-03-31 0001822366 us-gaap:CommonClassAMember altu:TriggerPriceTwoMember altu:ProspectiveWarrantRedemptionMember 2022-01-01 2022-03-31 0001822366 altu:WarrantLiabilityMember altu:PrivatePlacementWarrantsMember us-gaap:FairValueInputsLevel3Member 2022-01-01 2022-03-31 0001822366 altu:PrivatePlacementWarrantsMember altu:WarrantLiabilityMember 2022-01-01 2022-03-31 0001822366 us-gaap:IPOMember 2022-01-01 2022-03-31 0001822366 us-gaap:RetainedEarningsMember 2022-01-01 2022-03-31 0001822366 us-gaap:CommonClassBMember 2021-01-01 2021-03-31 0001822366 us-gaap:CommonClassAMember 2021-01-01 2021-03-31 0001822366 altu:SponsorMember 2021-01-01 2021-03-31 0001822366 altu:WarrantLiabilityMember altu:PrivatePlacementWarrantsMember 2021-01-01 2021-03-31 0001822366 us-gaap:RetainedEarningsMember 2021-01-01 2021-03-31 0001822366 us-gaap:OverAllotmentOptionMember 2020-12-11 2020-12-11 0001822366 us-gaap:IPOMember 2020-12-11 2020-12-11 0001822366 us-gaap:CommonClassBMember altu:SponsorMember 2020-12-11 2020-12-11 0001822366 altu:AfterTheCompletionOfBusinessCombinationMember 2020-12-11 2020-12-11 0001822366 altu:AfterTheClosingOfInitialPublicOfferMember 2020-12-11 2020-12-11 0001822366 altu:SponsorMember altu:PromissoryNoteRelatedPartyMember 2020-12-11 2020-12-11 0001822366 altu:SponsorMember altu:DueToRelatedPartyMember 2020-12-11 2020-12-11 0001822366 us-gaap:OverAllotmentOptionMember 2020-12-11 0001822366 us-gaap:CommonClassBMember 2020-12-11 0001822366 us-gaap:CommonClassBMember altu:ProposedPublicOfferingMember 2020-12-11 0001822366 us-gaap:IPOMember 2020-12-11 0001822366 us-gaap:OverAllotmentOptionMember us-gaap:CommonClassBMember 2020-12-11 0001822366 altu:SponsorMember altu:PromissoryNoteRelatedPartyMember 2021-06-02 0001822366 altu:PromissoryNoteRelatedPartyMember altu:SponsorMember 2021-11-16 2021-11-16 0001822366 altu:SponsorMember 2021-11-16 2021-11-16 0001822366 altu:AdvancesFromRelatedPartyMember 2021-11-16 2021-11-16 0001822366 altu:SponsorMember us-gaap:CommonClassBMember 2020-08-01 2020-08-31 0001822366 us-gaap:CommonClassBMember altu:SponsorMember 2020-08-31 0001822366 us-gaap:CommonClassBMember altu:SponsorMember 2020-11-30 2020-11-30 0001822366 altu:SponsorMember altu:PromissoryNoteRelatedPartyMember 2020-08-12 0001822366 altu:SponsorMember altu:PromissoryNoteRelatedPartyMember 2021-12-16 2021-12-16 0001822366 altu:DueToRelatedPartyMember altu:SponsorMember 2021-12-16 2021-12-16 0001822366 altu:SponsorMember 2022-01-18 2022-01-18 0001822366 altu:AdvancesFromRelatedPartyMember 2022-01-18 2022-01-18 0001822366 altu:SponsorMember 2022-02-01 2022-02-01 0001822366 altu:AdvancesFromRelatedPartyMember 2022-02-01 2022-02-01 0001822366 altu:SponsorMember altu:AdvancesFromRelatedPartyMember us-gaap:SubsequentEventMember 2022-04-26 2022-04-26 0001822366 altu:SponsorMember altu:AdvancesFromRelatedPartyMember us-gaap:SubsequentEventMember 2022-05-02 2022-05-02 0001822366 us-gaap:CommonClassAMember 2022-05-13 0001822366 us-gaap:CommonClassBMember 2022-05-13 0001822366 us-gaap:RetainedEarningsMember 2021-12-31 0001822366 us-gaap:AdditionalPaidInCapitalMember 2021-12-31 0001822366 us-gaap:CommonStockMember us-gaap:CommonClassBMember 2021-12-31 0001822366 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2021-12-31 0001822366 altu:PrivatePlacementWarrantsMember altu:WarrantLiabilityMember 2021-12-31 0001822366 us-gaap:RetainedEarningsMember 2022-03-31 0001822366 us-gaap:AdditionalPaidInCapitalMember 2022-03-31 0001822366 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2022-03-31 0001822366 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2022-03-31 0001822366 altu:PrivatePlacementWarrantsMember altu:WarrantLiabilityMember 2022-03-31 0001822366 us-gaap:RetainedEarningsMember 2020-12-31 0001822366 us-gaap:AdditionalPaidInCapitalMember 2020-12-31 0001822366 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2020-12-31 0001822366 us-gaap:CommonStockMember us-gaap:CommonClassAMember 2020-12-31 0001822366 altu:WarrantLiabilityMember altu:PrivatePlacementWarrantsMember 2020-12-31 0001822366 us-gaap:RetainedEarningsMember 2021-03-31 0001822366 us-gaap:AdditionalPaidInCapitalMember 2021-03-31 0001822366 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2021-03-31 0001822366 us-gaap:CommonClassAMember us-gaap:CommonStockMember 2021-03-31 0001822366 altu:WarrantLiabilityMember altu:PrivatePlacementWarrantsMember 2021-03-31 iso4217:USD xbrli:shares utr:Day xbrli:pure utr:Year utr:Month iso4217:USD xbrli:shares
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM
10-Q
 
 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
Or
 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
                    
to
                    
Commission File Number:
001-39772
 
 
Altitude Acquisition Corp.
(Exact Name of Registrant as Specified in Its Charter)
 
 
 
Delaware
 
85-2533565
(State or Other Jurisdiction of
Incorporation or Organization)
 
(I.R.S. Employer
Identification No.)
   
400 Perimeter Center Terrace Suite 151
Atlanta, Georgia
 
30346
(Address of Principal Executive Offices)
 
(Zip Code)
1 (800)
950-2950
(Registrant’s telephone number, including area code)
Not applicable
(Former name, former address and former fiscal year, if changed since last report)
 
 
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 and
one-half
of one redeemable warrant
 
ALTUU
 
The Nasdaq Stock Market LLC
Class A common stock, par value $0.0001 per share
 
ALTU
 
The Nasdaq Stock Market LLC
Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share
 
ALTUW
 
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation
S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated
filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule
12b-2
of the Exchange Act.
 
Large accelerated filer      Accelerated filer  
       
Non-accelerated filer
     Smaller reporting company  
       
         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.  
Indicate by check mark whether the registrant is a shell company (as defined in Rule
12b-2
of the Exchange Act).    Yes      No  ☐
As of
May 1
3
, 2022,
there were 30,000,000 shares of the registrant’s Class A common stock, par value $0.0001 per share, and 7,500,000 shares of the registrant’s Class B common stock, par value $0.0001 per share, outstanding.
 
 
 

Altitude Acquisition Corp.
Quarterly Report on
Form
10-Q
For the Quarter Ended March 31, 2022
 
        
Page
 
PART I. FINANCIAL INFORMATION
 
     
Item 1.   Financial Statements      3  
     
    Condensed Balance Sheets as of March 31, 2022 (Unaudited) and December 31, 2021      3  
     
    Unaudited Condensed Statements of Operations for the three months ended March 31, 2022 and 2021      4  
     
    Unaudited Condensed Statements of Changes in Stockholders’ Deficit for the three months ended March 31, 2022 and 2021      5  
     
    Unaudited Condensed Statements of Cash Flows for the three months ended March 31, 2022 and 2021      6  
     
    Notes to Unaudited Condensed Financial Statements      7  
     
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations      20  
     
Item 3.   Quantitative and Qualitative Disclosures About Market Risk      25  
     
Item 4.   Controls and Procedures      25  
 
PART II. OTHER INFORMATION
 
     
Item 1.   Legal Proceedings      26  
     
Item 1A.   Risk Factors      26  
     
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds      26  
     
Item 3.   Defaults Upon Senior Securities      26  
     
Item 4.   Mine Safety Disclosures      26  
     
Item 5.   Other Information      27  
     
Item 6.   Exhibits      28  
     
    Signatures      29  
 
2

PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
ALTITUDE ACQUISITION CORP.
CONDENSED BALANCE SHEETS

                 
    
March 31, 2022
   
December 31, 2021
 
    
(Unaudited)
       
Assets:
                
Current Assets
                
Cash
   $ 22,971     $ 43,054  
Prepaid expenses
     145,233       187,288  
    
 
 
   
 
 
 
Total current assets
     168,204       230,342  
Investments held in Trust Account
     300,034,396       300,026,796  
    
 
 
   
 
 
 
Total assets
   $ 300,202,600     $ 300,257,138  
    
 
 
   
 
 
 
Liabilities, Class A common stock subject to possible redemption and Stockholders’ Deficit:
                
Current Liabilities
                
Accounts payable
   $ 150,862     $ 174,803  
Advances from Sponsor
     450,000       100,000  
Due to related party
     152,089       122,089  
    
 
 
   
 
 
 
Total current liabilities
     752,951       396,892  
Warrant liability
     3,911,475       13,449,283  
Deferred legal fee
     4,243,758       3,733,738  
Deferred underwriting fee
     10,500,000       10,500,000  
    
 
 
   
 
 
 
Total liabilities
     19,408,184       28,079,913  
Commitments and Contingencies
                
Class A common stock subject to possible redemption, $0.0001 par value, 30,000,000 shares subject to possible redemption at redemption value of $10.00 per share at March 31, 2022 and December 31, 2021
     300,000,000       300,000,000  
Stockholders’ deficit:
                
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; no shares issued or outstanding
 
at March 31, 2022 and December 31, 2021
     —         —    
Class A common stock, $0.0001 par value, 280,000,000 shares authorized; no
non-redeemable
shares issued or outstanding at March 31, 2022 and December 31, 2021
     —         —    
Class B common stock, $0.0001 par value, 20,000,000 shares authorized, 7,500,000 shares issued and outstanding at March 31, 2022 and December 31, 2021
     750       750  
Additional
paid-in
capital
     —         —    
Accumulated deficit
     (19,206,334     (27,823,525
    
 
 
   
 
 
 
Total stockholders’ deficit
     (19,205,584     (27,822,775
    
 
 
   
 
 
 
Total liabilities, Class A common stock subject to possible redemption and stockholders’ deficit
   $ 300,202,600     $ 300,257,138  
    
 
 
   
 
 
 
The accompanying notes are an integral part of these unaudited condensed financial statements.
 
3

ALTITUDE ACQUISITION CORP.
CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)

                 
    
For the three
months ended

March 31, 2022
   
For the three
months ended

March 31, 2022
 
Formation and operating costs
   $ 928,218     $ 466,358  
    
 
 
   
 
 
 
Loss from operations
     (928,218     (466,358
Other income (loss)
                
Interest income
     1       12  
Interest income earned on Trust
     7,600       6,247  
Unrealized gain (loss) on change in fair value of warrants
     9,537,808       (5,996,188
    
 
 
   
 
 
 
Total other income (loss)
     9,545,409       (5,989,929
    
 
 
   
 
 
 
Net income (loss)
   $ 8,617,191     $ (6,456,287
    
 
 
   
 
 
 
Basic and diluted weighted average shares outstanding, Class A common stock
     30,000,000       30,000,000  
    
 
 
   
 
 
 
Basic and diluted net income (loss) per share, Class A common stock
   $ 0.23     $ (0.17
    
 
 
   
 
 
 
Basic and diluted weighted average shares outstanding, Class B common stock
     7,500,000       7,500,000  
    
 
 
   
 
 
 
Basic and diluted net income (loss) per share, Class B common stock
   $ 0.23     $ (0.17
    
 
 
   
 
 
 
The accompanying notes are an integral part of these unaudited condensed financial statements.
 
4

ALTITUDE ACQUISITION CORP.
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT
(UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2022

                                                         
    
Class A

Common

Stock
    
Class B Common

Stock
    
Additional

Paid-in

Capital
    
Accumulated

Deficit
   
Total

Stockholders’

Deficit
 
    
Shares
    
Amount
    
Shares
    
Amount
 
Balance as of December 31, 2021
  
 
  
    
$
  
 
  
 
7,500,000
 
  
$
750
 
  
$
  
 
  
$
(27,823,525
 
$
(27,822,775
Net income
     —          —          —          —          —          8,617,191       8,617,191  
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
 
Balance as of March 31, 2022 (unaudited)
  
 
  
    
$
  
 
  
 
7,500,000
 
  
$
750
 
  
$
  
 
  
$
(19,206,334
 
$
(19,205,584
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
 
THREE MONTHS ENDED MARCH 31, 2021

                                                         
    
Class A

Common

Stock
    
Class B Common

Stock
    
Additional

Paid-in

Capital
    
Accumulated

Deficit
   
Total

Stockholders’

Deficit
 
    
Shares
    
Amount
    
Shares
    
Amount
 
Balance as of December 31, 2020
  
 
  
    
 
  
    
 
7,500,000
 
  
 
750
 
  
 
  
    
 
(43,049,354
 
 
(43,048,604
Net loss
     —          —          —          —          —          (6,456,287     (6,456,287
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
 
Balance as of March 31, 2021 (unaudited)
  
 
  
    
$
  
 
  
 
7,500,000
 
  
$
750
 
  
$
  
 
  
$
(49,505,641
 
$
(49,504,891
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
    
 
 
   
 
 
 
The accompanying notes are an integral part of these unaudited condensed financial statements.
 
5
 
ALTITUDE ACQUISITION CORP.
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)

                 
    
For the three
months ended
March 31, 2022
   
For the three
months ended
March 31, 2021
 
Cash Flows from Operating Activities:
                
Net income (loss)
   $ 8,617,191     $ (6,456,287
Adjustments to reconcile net income (loss) to net cash used in operating activities:
                
Interest income earned on Trust
     (7,600     (6,247
Unrealized (gain)/loss on change in fair value of warrants
     (9,537,808     5,996,188  
Changes in current assets and current liabilities:
                
Prepaid expenses
     42,055       99,151  
Due to related party
     30,000       29,204  
Deferred legal fee
     510,020        
Advances from Sponsor
     350,000        
Accounts payable and accrued expenses
     (23,941     (12,943
    
 
 
   
 
 
 
Net cash used in operating activities
     (20,083     (350,934
    
 
 
   
 
 
 
Net Change in Cash
     (20,083     (350,934
Cash-Beginning
     43,054       764,329  
    
 
 
   
 
 
 
Cash-Ending
   $ 22,971     $ 413,395  
    
 
 
   
 
 
 
The accompanying notes are an integral part of these unaudited condensed financial statements.
 
6

ALTITUDE ACQUISITION CORP.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
Note 1 - Organization and Business Operations
Altitude Acquisition Corp. (the “Company”) is a newly organized blank check company incorporated in Delaware on August 12, 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 (“Business Combination”).
As of March 31, 2022, the Company had not commenced any operations. All activity for the period from August 12, 2020 (inception) through March 31, 2022 relates to the Company’s formation and the initial public offering (“IPO”) described below. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest.
The Company generates
non-operating
income in the form of interest income on investments held in Trust from the proceeds derived from the IPO and recognizes changes in the fair value of warrant liability as other income (expense).
Financing
The Company’s sponsor is Altitude Acquisition Holdco LLC, a Delaware limited liability company (the “Sponsor”).
The registration statement for the Company’s IPO (as described below) was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on December 8, 2020 (the “Effective Date”). On December 11, 2020, the Company consummated the IPO of 30,000,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), including the issuance of 3,900,000 Units as a result of the partial exercise of the underwriters’ over-allotment option, at $10.00 per Unit generating gross proceeds of $300,000,000, which is described in Note 3.
Simultaneously with the closing of the IPO, the Company consummated the sale of an aggregate of 8,000,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per warrant in a private placement to the Company’s Sponsor, generating gross proceeds to the Company of $8,000,000, which is described in Note 4.
Trust Account
Following the closing of the IPO on December 11, 2020, an amount of $300,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was placed in a trust account established for the benefit of the Company’s public stockholders (the “Trust Account”) which was invested in 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 in money market funds meeting certain conditions under Rule
2a-7
promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations, until the earlier of: (a) the completion of the Company’s initial Business Combination, (b) the redemption of any Public Shares properly submitted in connection with a stockholder vote to amend the Company’s amended and restated certificate of incorporation, and (c) the redemption of the Company’s Public Shares if the Company is unable to complete the initial Business Combination within eighteen months from December 11, 2020 (the “Combination Period”), the closing of the IPO.
Initial Business Combination
The Company will provide its public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the initial Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a proposed initial Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The stockholders will be entitled to redeem their shares for a pro rata portion of the amount then on deposit in the Trust Account (initially approximately $10.00 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations).
 
7

The shares of common stock subject to redemption will be recorded at a redemption value and classified as temporary equity upon the completion of the IPO, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” In such case, the Company will proceed with an initial Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of an initial Business Combination and, if the Company seeks stockholder approval, such initial Business Combination is approved by the affirmative vote of the holders of a majority of the shares of the Common Stock that are voted at a stockholder meeting held to consider such initial Business Combination. The Company has until June 11, 2022 to consummate a Business Combination. However, if the Company is unable to complete a Business Combination within the Combination Period, the Company will redeem 100% of the outstanding public shares for a pro rata portion of the funds held in the Trust Account, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its franchise and income taxes, divided by the number of then outstanding public shares, subject to applicable law and as further described in registration statement, and then seek to dissolve and liquidate.
The Sponsor, officers and directors have agreed to (i) waive their redemption rights with respect to their founder shares and public shares in connection with the completion of the initial Business Combination, (ii) waive their redemption rights with respect to their founder shares and public shares in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation, and (iii) waive their rights to liquidating distributions from the Trust Account with respect to their founder shares if the Company fails to complete the initial Business Combination within the Combination Period.
Going Concern Consideration
As of March 31, 2022, the Company had cash outside the Trust Account of $22,971 available for working capital needs, and a negative working capital of $584,747.
Prior to the completion of the IPO, the Company’s liquidity needs had been satisfied through a payment from the Sponsor of $25,000 for the founder shares, the loan under an unsecured promissory note from the Sponsor of $275,000, and advances from the Sponsor of $634,447. Subsequent to the consummation of the IPO and Private Placement, the Company’s liquidity needs have been satisfied through the proceeds from the consummation of the Private Placement not held in the Trust Account.
In addition, in order to finance transaction costs in connection with an initial Business Combination, the Company’s Sponsor or an affiliate of the Sponsor or certain of the Company’s officers and directors may, but are not obligated to, provide the Company Working Capital Loans (see Note 5). To date, there were no amounts outstanding under any Working Capital Loans.
On June 2, 2021, the Company issued an unsecured promissory note to the Sponsor for an aggregate available principal amount of $300,000 to be used for a portion of the expenses of the Business Combination. This loan
is non-interest bearing,
unsecured and due at the earlier of December 31, 2021 or the closing of the Business Combination. The Company had no borrowings under the promissory note.
On November 16, 2021, January 18, 2022 and February 1, 2022, the Company received $100,000, $100,000 and $250,000 advances from the Sponsor to be used for working capital purposes, respectively. The advances are non-interest bearing and due on demand. At March 31, 2022 and December 31, 2021, the Company owed the Sponsor $450,000 and $100,000 related to these advances, respectively.
The Company has until June 11, 2022 to consummate a Business Combination. If the Company is unable to complete a Business Combination prior to June 11, 2022, the Company will redeem 100% of the outstanding public shares for a pro rata portion of the funds held in the Trust Account, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its franchise and income taxes, divided by the number of then outstanding public shares, subject to applicable law and as further described in registration statement, and then seek to dissolve and liquidate.
 
8

As a result of the above, in connection with the Company’s assessment of going concern considerations in accordance with FASB’s Accounting Standards Update (“ASU”)
2014-15,
“Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management determined that the date for mandatory liquidation and dissolution raise substantial doubt about the Company’s ability to continue as a going concern through June 11, 2022, the scheduled liquidation date of the Company, if it does not complete a Business Combination prior to such date. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.
The Company’s Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement or Business Combination agreement, 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 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 prospective target business who 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 IPO against certain liabilities, including liabilities under the Securities Act. However, the Company has not asked its Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether its Sponsor has sufficient funds to satisfy its indemnity obligations and believe that the Company’s Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure that its Sponsor would be able to satisfy those obligations.
Note 2 - Significant Accounting Policies
Basis of Presentation
The accompanying unaudited condensed 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 unaudited condensed 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 three months ended March 31, 2022 are not necessarily indicative of the results that may be expected through December 31, 2022 or any future periods.
The accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Annual Form
10-K
filed by the Company with the SEC on March 29, 2022.
Emerging Growth Company Status
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended (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 auditor 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 a company
 
9

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 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 that 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 other public companies that are neither emerging growth companies nor emerging growth companies that have opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Use of Estimates
The preparation of these condensed 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 these condensed financial statements.
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 these condensed financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these condensed financial statements is the determination of the fair value of the warrant liability. Accordingly, the actual results could differ significantly from those estimates.
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. As of March 31, 2022 and December 31, 2021, the Company did not have any cash equivalents.
Investments held in Trust Account
As of March 31, 2022 and December 31, 2021, the assets held in the Trust Account were substantially held in mutual funds comprised of U.S. Treasury Bills.
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Depository Insurance Coverage of $250,000. As of March 31, 2022 and December 31, 2021, the Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.
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.” Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. 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, Class A common stock are classified as stockholders’ deficit. 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 uncertain future events. Accordingly, as of March 31, 2022 and December 31, 2021, 30,000,000 shares of Class A common stock subject to possible redemption were presented at redemption value as temporary equity, outside of the stockholders’ deficit section of the Company’s balance sheets.
 
10

Net Income (loss) Per Common Stock
The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock. Earnings and losses are shared pro rata between the two classes of shares.
This presentation assumes a business combination as the most likely outcome.
The Company has not considered the effect of the warrants sold in the IPO and the Private Placement to purchase an aggregate of 23,000,000 of the Company’s Class A common stock in the calculation of diluted income (loss) per share, since their exercise is contingent upon future events. As a result, diluted net income (loss) per common stock is the same as basic net income (loss) per common stock. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income (loss) per share for each class of common stock.
                                 
    
For the three months
ended March 31, 2022
    
For the three months

ended March 31, 2021
 
    
Class A
    
Class B
    
Class A
    
Class B
 
Basic and diluted net income (loss) per share:
                                   
Numerator:
                                   
Allocation of net income (loss)
   $ 6,893,753      $ 1,723,438      $ (5,165,030    $ (1,291,257
Denominator:
                                   
Weighted-average shares outstanding
     30,000,000        7,500,000        30,000,000        7,500,000  
    
 
 
    
 
 
    
 
 
    
 
 
 
Basic and diluted net income (loss) per share
   $ 0.23      $ 0. 23      $ (0.17    $ (0.17
    
 
 
    
 
 
    
 
 
    
 
 
 
Offering Costs
The Company complies with the requirements of
ASC 340-10-S99-1
and SEC Staff Accounting Bulletin (SAB) Topic 5A - “Expenses of Offering”. Offering costs consist of legal, accounting, underwriting fees and other costs that are directly related to the IPO. Offering costs are allocated to the separable financial instruments issued in the IPO based on a relative fair value basis compared to total proceeds received. Offering costs associated with warrant liabilities are expensed, and offering costs associated with the Class A common stock are charged to the temporary equity.
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 include:
 
 
“Level 1”, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
 
 
“Level 2”, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; 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.
The fair value of the Private Placement Warrants is based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair value. The fair value of the Private Placement Warrants is classified as Level 3. The fair value of the Public Warrants is classified as Level 1. See Note 6 for additional information on assets and liabilities measured at fair value.
 
11

Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are recorded at fair value on the grant
date and re-valued at
each reporting date, with changes in the fair value reported in the statements of operations. Derivative assets and liabilities are classified on the balance sheets as
current or non-current based
on whether
or not net-cash settlement
or conversion of the instrument could be required within 12 months of the balance sheet date. The Company has determined that the warrants are a derivative instrument.
FASB ASC 470-20, Debt
with Conversion and Other Options addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components. The Company applies this guidance to allocate IPO proceeds from the Units between Class A common stock and warrants, using the residual method by allocating IPO proceeds first to fair value of the warrants and then the Class A common stock.
Income Taxes
The Company accounts for income taxes under ASC 740 “Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. There are deferred taxes with a full valuation allowance at March 31, 2022 and December 31, 2021.
ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position 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. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition.
The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of March 31, 2022 and December 31, 2021. 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 has identified the United States as its only “major” tax jurisdiction.
The Company may be subject to potential examination by federal and state taxing authorities in the areas 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 federal and state 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 Accounting Standards
Management does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed financial statements.
 
12

Risks and Uncertainties
On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (the
“COVID-19
outbreak”). In March 2020, the WHO classified the
COVID-19
outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the
COVID-19
outbreak continues to evolve. The impact of the
COVID-19
outbreak on the Company’s financial position will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions. These developments and the impact of the
COVID-19
outbreak on the financial markets and the overall economy are highly uncertain and cannot be predicted. If the financial markets and/or the overall economy are impacted for an extended period, the Company’s financial position may be materially adversely affected. Additionally, the Company’s ability to complete an initial Business Combination may be materially adversely affected due to significant governmental measures being implemented to contain the
COVID-19
outbreak or treat its impact, including travel restrictions, the shutdown of businesses and quarantines, among others, which may limit the Company’s ability to have meetings with potential investors or affect the ability of a potential target company’s personnel, vendors and service providers to negotiate and consummate an initial Business Combination in a timely manner. The Company’s ability to consummate an initial Business Combination may also be dependent on the ability to raise additional equity and debt financing, which may be impacted by the
COVID-19
outbreak and the resulting market downturn. The condensed balance sheets do not include any adjustments that might result from the outcome of this uncertainty.
On February 24, 2022, Russian forces launched significant military action against Ukraine, and sustained conflict and disruption in the region is possible. The impact to Ukraine as well as actions taken by other countries, including new and stricter sanctions imposed by Canada, the United Kingdom, the European Union, the U.S. and other countries and companies and organizations against officials, individuals, regions, and industries in Russia and Ukraine, and actions taken by Russia in response to such sanctions, and each country’s potential response to such sanctions, tensions, and military actions could have a material adverse effect on the business or prospects of potential target technology companies in the northern part of Europe, where we intend to focus our search. Any such material adverse effect from the conflict and enhanced sanctions activity may include reduced trading and business activity levels, disruption of financial markets, increased costs, disruption of services, inability to complete financial or banking transactions, and inability to service existing or new customers in the region. Prolonged unrest, military activities, or broad-based sanctions, should they be implemented, could have a material adverse effect on the Company’s ability to complete a Business Combination with a suitable target.
Note 3 - Initial Public Offering
On December 11, 2020, the Company sold 30,000,000 Units, including 3,900,000 Units issued pursuant to the underwriters’ partial exercise of their over-allotment option, at a purchase price of $10.00 per Unit. Each Unit consists of one share of Class A common stock, and
one-half
of one warrant to purchase one share of Class A common stock. Each whole warrant will entitle the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment. Each warrant will become exercisable on the later of 30 days after the completion of the initial Business Combination or 12 months from the closing of the IPO and will expire five years after the completion of the initial Business Combination, or earlier upon redemption or liquidation.
The Company paid an underwriting fee at the closing of the IPO of $6,000,000. As of March 31, 2022 and December 31, 2021, an additional fee of $10,500,000 (see Note 7) was deferred and will become payable upon the Company’s completion of an initial Business Combination. The deferred portion of the fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes its initial Business Combination.
All of the 30,000,000 Class A common stock sold as part of the Units in the IPO contain a redemption feature which allows for the redemption of such public shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s certificate of incorporation. In accordance with SEC and its staff’s guidance on redeemable equity instruments, which has been codified 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.
 
13

The Class A common stock is recorded in accordance with in ASC
480-10-S99.
If it is probable that the equity instrument will become redeemable, the Company has the option to either accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or to recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The Company recognizes changes in redemption value immediately as they occur. Immediately upon the closing of the IPO, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable common stock resulted in charges against additional
paid-in
capital and accumulated deficit.
As of March 31, 2022 and December 31, 2021, the common stock reflected on the condensed balance sheets are reconciled in the following table:
         
Gross proceeds from IPO
   $ 300,000,000  
Less:
        
Proceeds allocated to Public Warrants
     (19,987,400
Common stock issuance costs
     (15,968,970
Plus:
        
Accretion of carrying value to redemption value
     35,956,370  
    
 
 
 
Class A common stock subject to possible redemption
   $ 300,000,000  
    
 
 
 
Warrants
Each whole warrant will entitle the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustment as discussed herein. 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 its 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 Company’s board of directors and, in the case of any such issuance to the Company’s Sponsor or its affiliates, without taking into account any Founder Shares held by the Company’s Sponsor or its affiliates, 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 initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates the 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” will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.
The warrants will become exercisable on the later of twelve months from the closing of the IPO or thirty days after the completion of its initial Business Combination, and will expire five years after the completion of the Company’s initial Business Combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.
The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of Class A common stock underlying the warrants is then effective and a prospectus is current. No warrant will be exercisable and the Company will not be obligated to issue shares of Class A common stock upon exercise of a warrant unless Class A common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. In no event will the Company be required to net cash settle any warrant. In the event that a registration statement is not effective for the exercised warrants, the purchaser of a unit containing such warrant will have paid the full purchase price for the unit solely for the share of Class A common stock underlying such unit.
 
14

Once the warrants become exercisable, the Company may call the warrants for redemption:
 
 
in whole and not in part;
 
 
at a price of $0.01 per warrant;
 
 
upon not less than 30 days’ prior written notice of redemption (the
“30-day
redemption period”) to each warrant holder; and
 
 
if, and only if, the reported last sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a
30-trading
day period ending three business days before the Company send the notice of redemption to the warrant holders.
If the Company calls the warrants for redemption as described above, the management will have the option to require any holder that wishes to exercise its warrant to do so on a “cashless basis.” If the management takes advantage of this option, all holders of warrants would pay the exercise price by surrendering their warrants for that number of shares of Class A common stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A common stock underlying the warrants, multiplied by the excess of the “fair market value” (defined below) over the exercise price of the warrants by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the Class A common stock for the ten trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants.
Note 4 - Private Placement
Simultaneously with the closing of the IPO, the Sponsor purchased an aggregate of 8,000,000 Private Placement Warrants at a purchase price of $1.00 per Private Placement Warrant, generating gross proceeds to the Company of $8,000,000. The proceeds from the sale of the Private Placement Warrants were added to the proceeds from the IPO held in the Trust Account.
The Private Placement Warrants are identical to the warrants sold in the IPO except that the Private Placement Warrants, so long as they are held by the Sponsor or its permitted transferees, (i) will not be redeemable by the Company, (ii) may not (including the Class A common stock issuable upon exercise of such Private Placement Warrants), subject to certain limited exceptions, be transferred, assigned or sold by the holders until 30 days after the completion of the Company’s initial Business Combination, and (iii) may be exercised by the holders on a cashless basis and (iv) will be entitled to registration rights. No underwriting fees were paid with respect to such sale. The issuance of the Private Placement Warrants was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.
Note 5 - Related Party Transactions
Founder Shares
In August 2020, the Company issued 8,625,000 shares of Class B common stock to the Sponsor for $25,000 in cash, or approximately $0.003 per share (the “Founder Shares”). On November 30, 2020 the Sponsor surrendered an aggregate of 1,437,500 Founder Shares, which were cancelled. On December 8, 2020, as part of an upsizing of the IPO, the Company effected a stock split in which each issued share of Class B common stock that was outstanding was converted into
one and forty-four one-thousandths shares of
Class B common stock, resulting in an aggregate of 7,503,750 shares of Class B common stock issued and outstanding. All shares and associated amounts have been retroactively restated to reflect the share surrender and stock split. The Founder Shares included an aggregate of up to 978,750 shares subject to forfeiture if the over-allotment option is not exercised by the underwriters in full. On December 11, 2020, the underwriters partially exercised their over-allotment option, hence, 975,000 Founder Shares were no longer subject to forfeiture and 3,750 Founder Shares were forfeited for no consideration.
 
15

The Sponsor has agreed not to transfer, assign or sell its Founder Shares until the earlier to occur of (A) one year after the completion of the Company’s initial Business Combination or (B) subsequent to the Company’s initial Business Combination, (x) if the last sale price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for
any 20 trading days within any 30-trading day period commencing
at least 150 days after the Company’s initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of its stockholders having the right to exchange their shares of common stock for cash, securities or other property.
Promissory Note - Related Party
On August 12, 2020, the Company issued an unsecured promissory note to the Sponsor for an aggregate available principal amount of $300,000 to be used for a portion of the expenses of the IPO.
This loan is non-interest bearing, unsecured and due
at the earlier of December 31, 2020 or the closing of the IPO. As of December 11, 2020, the total amount borrowed under the promissory note was $275,000. The Company repaid the amount in full on December 16, 2020.
On June 2, 2021, the Company issued an unsecured promissory note to the Sponsor for an aggregate available principal amount of $300,000 to be used for a portion of the expenses of the Business Combination. This loan
is non-interest bearing,
unsecured and due at the earlier of December 31, 2021 or the closing of the Business Combination. The Company had no borrowings under the promissory note
 as of March 31, 2022 and
D
ecember 31, 2021.
Due to Related Party
As of March 31, 2022 and December 31, 2021, the Company had due to related party balance
s
of $152,089 and $122,089, which consisted of $157,667 and $127,667 for the administrative service fees incurred (see below), net of $5,578 and $5,578 receivable from related party, respectively.
Advances from Sponsor
On December 11, 2020, the Sponsor advanced the Company an aggregate of $634,447. The Company repaid the amount in full on December 16, 2020.
On November 16, 2021, January 18, 2022 and February 1, 2022, the Company received $100,000, $100,000
and $
250,000 advances from the Sponsor to be used for working capital purposes
, respectively.
 
The advances are
non-interest
bearing and due on demand. At March 31, 2022 and December 31, 2021, the Company owed the Sponsor $450,000 and $100,000 related to these advances, respectively.
Working Capital Loans
In order to finance transaction costs in connection with an initial 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 an initial Business Combination, the Company would 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 an initial Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans but no proceeds from the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible into warrants at a price of $1.00 per warrant at the option of the lender. The warrants would be identical to the Private Placement Warrants, including as to exercise price, exercisability and exercise period. At March 31, 2022 and December 31, 2021, no Working Capital Loans were outstanding.
 
16

Administrative Service Fee
The Company has agreed, commencing on the date of the securities of the Company are first listed on The Nasdaq Capital Market, to pay an affiliate of the Company’s Sponsor a monthly fee of an aggregate of $10,000 for office space, utilities and secretarial and administrative support. Upon completion of the Company’s initial Business Combination or its liquidation, the Company will cease paying these monthly fees. The Company incurred $30,000
and $37,667 
of administrative service fee
s
for three months ended March 31, 2022 and 2021
, respectively.
 At March 31, 2022 and December 31, 2021, due to related party includes amounts of $157,667 and $127,667 incurred under this arrangement.
Note 6 - Recurring Fair Value Measurements
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at March 31, 2022, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
                                 
    
March 31,

2022
    
Quoted

Prices In

Active

Markets

(Level 1)
    
Significant

Other

Observable

Inputs

(Level 2)
    
Significant

Other

Unobservable

Inputs

(Level 3)
 
Assets:
                                   
Money Market Funds held in Trust Account
   $ 300,034,396      $ 300,034,396      $ —        $ —    
    
 
 
    
 
 
    
 
 
    
 
 
 
     $ 300,034,396      $ 300,034,396      $ —        $ —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities:
                                   
Warrant Liability - Public Warrants
   $ 2,517,000      $ 2,517,000      $ —        $ —    
Warrant Liability - Private Placement Warrants
   $ 1,394,475      $ —        $ —        $ 1,394,475  
    
 
 
    
 
 
    
 
 
    
 
 
 
     $ 3,911,475      $ 2,517,000      $ —        $ 1,394,475  
    
 
 
    
 
 
    
 
 
    
 
 
 
The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2021 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.
                                 
    
December 31,

2021
    
Quoted

Prices In

Active

Markets

(Level 1)
    
Significant

Other

Observable

Inputs

(Level 2)
    
Significant

Other

Unobservable

Inputs

(Level 3)
 
Assets:
                                   
Money Market Funds held in Trust Account
   $ 300,026,796      $ 300,026,796      $ —        $ —    
    
 
 
    
 
 
    
 
 
    
 
 
 
     $ 300,026,796      $ 300,026,796      $ —        $ —    
    
 
 
    
 
 
    
 
 
    
 
 
 
Liabilities:
                                   
Warrant Liability - Public Warrants
   $ 8,626,500      $ 8,626,500      $ —        $ —    
Warrant Liability - Private Placement Warrants
   $ 4,822,783      $ —        $ —        $ 4,822,783  
    
 
 
    
 
 
    
 
 
    
 
 
 
     $ 13,449,283      $ 8,626,500      $ —        $ 4,822,783  
    
 
 
    
 
 
    
 
 
    
 
 
 
The measurement of the Public Warrants at March 31, 2022 and December 31, 2021 is classified as Level 1 due to the use of an observable market quote in an active market. As of March 31, 2022 and December 31, 2021, the aggregate value of Public Warrants was $2,517,000 and $8,626,500, respectively.
 
17

The estimated fair value of the Private Placement Warrants on March 31, 2022 and December 31, 2021 is determined using Level 3 inputs. Inherent in a Monte Carlo simulation model are assumptions related to
expected stock-price volatility (pre-merger and post-merger),
expected term, dividend yield and risk-free interest rate. The Company estimates the volatility of its common stock based on management’s understanding of the volatility associated with instruments of other similar entities. The risk-free interest rate is based on the U.S. Treasury Constant Maturity similar to the expected remaining life of the warrants. The expected life of the warrants is simulated based on management assumptions regarding the timing and likelihood of completing a business combination. The dividend rate is based on the historical rate, which the Company anticipates to remain at zero. The assumptions used in calculating the estimated fair values represent the Company’s best estimate. However, inherent uncertainties are involved. If factors or assumptions change, the estimated fair values could be materially different.
The key inputs into the Monte Carlo simulation model for the Private Placement Warrants were as follows at March 31, 2022:
         
Input
  
March 31, 2022
 
Expected term (years)
     5.13  
Expected volatility
     3.2
Risk-free interest rate
     2.42
Fair value of the common stock price
   $ 9.95  
The key inputs into the Monte Carlo simulation model for the Private Placement Warrants were as follows at December 31, 2021:
         
Input
  
December 31, 2021
 
Expected term (years)
     5.37  
Expected volatility
     12.4
Risk-free interest rate
     1.29
Fair value of the common stock price
   $ 9.90  
The primary significant unobservable input used in the fair value measurement of the Company’s Private Placement Warrants is the expected volatility of the common stock. Significant increases (decreases) in the expected volatility in isolation would result in a significantly higher (lower) fair value measurement.
The following table sets forth a summary of the changes in the fair value of the Level 3 warrant liability for the three months ended March 31, 2022:
         
    
Warrant Liability
 
Fair value as of December 31, 2021
   $ 4,822,783  
Change in fair value
     (3,428,308
    
 
 
 
Fair value as of March 31, 2022
   $ 1,394,475  
    
 
 
 
The following table sets forth a summary of the changes in the fair value of the Level 3 warrant liability for the three months ended March 31, 2021:
         
    
Warrant Liability
 
Fair value as of December 31, 2020
   $ 33,807,463  
Transfer out of Level 3 to Level 1
     (25,500,000
Change in fair value
     5,996,188  
    
 
 
 
Fair value as of March 31, 2021
   $ 14,303,651  
    
 
 
 
 
18

Note 7 - Commitments and Contingencies
Registration Rights
The holders of the Founder Shares, Private Placement Warrants, and warrants that may be issued upon conversion of Working Capital Loans will have registration rights to require the Company to register a sale of any of its securities held by them pursuant to a registration rights agreement signed prior to or on the Effective Date. These holders are entitled to make up to three demands, excluding short form registration demands, that the Company registers such securities for sale under the Securities Act. In addition, these holders are entitled to “piggy-back” registration rights.
Underwriting Agreement
The underwriters had a 45-day option from December 11, 2020
to purchase up to an additional 3,915,000 Units to cover over-allotments, if any. On December 11, 2020, the underwriters partially exercised their over-allotment option and purchased an additional 3,900,000 Units. The unexercised portion of the over-allotment option was forfeited.
On December 11, 2020, the underwriters were paid a cash underwriting fee of $6,000,000, or 2% of the gross proceeds of the IPO. Additionally, the underwriters will be entitled to a deferred underwriting fee of $10,500,000, or 3.5% of the gross proceeds of the IPO held in the Trust Account upon the completion of the Company’s initial Business Combination subject to the terms of the underwriting agreement.
Note 8 - Stockholders’ Equity (Deficit)
Preferred Stock
The Company is authorized to issue a total of
1,000,000
shares of preferred stock at par value of $
0.0001
each. As of March 31, 2022 and December 31, 2021, there were no shares of preferred stock issued and outstanding.
Class A Common Stock
The Company is authorized to issue a total of 280,000,000 shares of Class A common stock at par value of $0.0001 each. As of March 31, 2022 and December 31, 2021, there were there were no shares of Class A common stock issued and outstanding, excluding 30,000,000 shares of Class A common stock subject to redemption, which are included in temporary equity.
Class B Common Stock
The Company is authorized to issue a total of 20,000,000 shares of Class B common stock at par value of $0.0001 each. After giving retroactive effect to the forfeiture of shares and subsequent split described in Note 5, there were 7,503,750 shares of Class B common stock issued and outstanding at December 11, 2020. The Founder Shares included an aggregate of up to 978,750 shares subject to forfeiture if the over-allotment option was not exercised by the underwriters in full. On December 11, 2020, the underwriters partially exercised their over-allotment option, hence, 975,000 Founder Shares were no longer subject to forfeiture and 3,750 Founder Shares were forfeited for no consideration. As of March 31, 2022 and December 31, 2021, there were 7,500,000 shares of Class B common stock issued and outstanding.
The Company’s initial stockholders have agreed not to transfer, assign or sell its Founder Shares until the earlier to occur of (A) one year after the completion of the Company’s initial Business Combination or (B) subsequent to the Company’s initial Business Combination, (x) if the last sale price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within
any 30-trading day
period commencing at least 150 days after the Company’s initial Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of its stockholders having the right to exchange their shares of common stock for cash, securities or other property. Any permitted transferees will be subject to the same restrictions and other agreements of the Company’s initial stockholders with respect to any Founder Shares.
 
19

The shares of Class B common stock will automatically convert into shares of the Company’s Class A common stock at the time of its initial Business Combination on a
one-for-one
basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the IPO and related to the closing of the initial Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal,
in the aggregate, on an as-converted basis, 20% of
the sum of the total number of all shares of common stock outstanding upon the completion of the IPO plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with the initial Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in the initial Business Combination or any private placement-equivalent units issued to the Sponsor or its affiliates upon conversion of loans made to the Company).
Holders of the Class A common stock and holders of the Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders, with each share of common stock entitling the holder to one vote.
Note 9 - Subsequent Events
The Company evaluated subsequent events and transactions that occurred after the balance sheet dates, up to the date on which the condensed financial statements were issued. Based upon this review, other than described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed financial statements.
On April 26, 2022 and May 2, 2022, the Company received $50,000 and $100,000 advances from the Sponsor to be used for working capital purposes, respectively. The advances are non-interest bearing and due on demand.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
References to “we”, “us”, “our” or the “Company” are to Altitude Acquisition Corp., except where the context requires otherwise. The following discussion should be read in conjunction with our unaudited condensed financial statements and related notes thereto included elsewhere in this report.
Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form
10-Q
includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,” or the negative of such terms or other similar expressions. Factors that might cause or contribute to such a discrepancy include, but are not limited to, those described in our other Securities and Exchange Commission (“SEC”) filings.

20

Overview
We are a blank check company incorporated on August 12, 2020 as a Delaware corporation and 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 (a “Business Combination”). We consummated our initial public offering (“IPO”) on December 11, 2020 and are currently in the process of locating suitable targets for our Business Combination. We intend to use the cash proceeds from our IPO and the Private Placement described below as well as additional issuances, if any, of our capital stock, debt or a combination of cash, stock and debt to complete the Business Combination.
We expect to incur significant costs in the pursuit of our initial Business Combination. We cannot assure you that our plans to raise capital or to complete our initial Business Combination will be successful.
We completed the sale of 30,000,000 units (the “Units”), with each Unit comprised of one share of Class A common stock (the “Public Shares”) and
one-half
of one warrant (the “Public Warrants”), including the issuance of 3,900,000 Units as a result of the partial exercise of the underwriters’ over-allotment option, at $10.00 per Unit generating gross proceeds of $300,000,000. Simultaneous with the closing of the IPO, we completed the sale of 8,000,000 warrants (the “Private Warrants”) at a price of $1.00 per Private Warrant in a private placement to Altitude Acquisition Holdco, LLC (our “Sponsor”), generating gross proceeds to the Company of $8,000,000 (the “Private Placement”).
As of March 31, 2022, a total of $300,000,000 of the net proceeds from the IPO (including the full exercise of the over-allotment option) and the Private Placement were placed into a trust account established for the benefit of the Company’s public stockholders (the “Trust Account”). The Trust Account is invested in interest-bearing U.S. government securities and the income earned on those investments is also for the benefit of our public stockholders.
Our management has broad discretion with respect to the specific application of the net proceeds of the IPO and the Private Placement, although substantially all of the net proceeds are intended to be applied generally towards consummating a Business Combination.
Proposed Business Combination
On March 1, 2022, we signed a
non-binding
letter of intent with a Business Combination target company.
Results of Operations
As of March 31, 2022, we have not commenced any operations. All activity for the period from August 12, 2020 (inception) through March 31, 2022 relates to our formation and IPO, and, since the completion of the IPO, our searching for a target to consummate a Business Combination. We will not generate any operating revenues until after the completion of a Business Combination, at the earliest. We generate
non-operating
income in the form of interest income from the proceeds derived from the IPO and placed in the Trust Account (defined above).
For the three months ended March 31, 2022, we had a net income of $8,617,191 which included unrealized gain on change in fair value of warrants of $9,537,808, interest income earned on the proceeds in the Trust Account of $7,600 and interest income earned on the operating bank account of $1, partially offset by operating costs of $928,218.
For the three months ended March 31, 2021, we had a net loss of $6,456,287, which included unrealized loss on change in fair value of warrants of $5,996,188, and formation and operating costs of $466,358, partially offset by interest income earned on the proceeds in the Trust Account of $6,247 and interest income earned on operating bank account of $12.
 
21

Liquidity and Capital Resources
As of March 31, 2022, we had cash outside our Trust Account of $22,971 available for working capital needs. All remaining cash was held in the trust account and is generally unavailable for our use prior to an initial business combination.
On December 11, 2020, we consummated the IPO of 30,000,000 Units (and, with respect to the common stock included in the Units being offered, the “public share”, the warrants included in the Units, the “public warrants” and the rights included in the Units, the “rights”), at $10.00 per Unit, generating gross proceeds of $300,000,000.
Simultaneously with the closing of the IPO, we consummated the sale of the Private Warrants at a price of $1.00 per Private Warrant, generating gross proceeds of $8,000,000.
In connection with the IPO, the underwriters were granted a
45-day
option from the date of the prospectus (the “Over-Allotment Option”) to purchase up to 3,915,000 additional Units to cover over-allotments (the “Over-Allotment Units”), if any. On December 11, 2020, the underwriters partially exercised their Over-Allotment Option and purchased an additional 3,900,000 Units. The unexercised portion of the over-allotment option was forfeited.
Following our IPO and the sale of the Private Warrants, a total of $300,000,000 ($10.00 per Unit) was placed in the Trust Account. We incurred $17,107,057 in IPO related costs, including $6,000,000 of underwriting fees, $10,500,000 of deferred underwriting discount and $607,057 of other costs.
As of March 31, 2022, we had investments held in the Trust Account of $300,034,396 (including approximately $34,000 of interest income), consisting of mutual funds. Interest income on the balance in the Trust Account may be used by us to pay taxes.
For the three months ended March 31, 2022, cash used in operating activities was $20,083. Net income of $8,617,191 was impacted by interest income earned on Trust of $7,600, unrealized gain on change in fair value of warrants of $9,537,808, and changes in operating assets and liabilities, which provided $908,134 of cash for operating activities.
We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (excluding the deferred underwriters’ discount) to complete our initial Business Combination. We may withdraw interest to pay our taxes and liquidation expenses if we are unsuccessful in completing a Business Combination. We estimate our annual franchise tax obligations to be $200,000, which is the maximum amount of annual franchise taxes payable by us as a Delaware corporation per annum, which we may pay from funds from the IPO held outside of the Trust Account or from interest earned on the funds held in the Trust Account and released to us for this purpose. Our annual income tax obligations will depend on the amount of interest and other income earned on the amounts held in the trust account reduced by our operating expense and franchise taxes. We expect the interest earned on the amount in the trust account will be sufficient to pay our income taxes. To the extent that our equity or debt is used, in whole or in part, as consideration to complete our initial Business Combination, the remaining proceeds held in the Trust Account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.
On June 2, 2021, we issued an unsecured promissory note to the Sponsor for an aggregate available principal amount of $300,000 to be used for a portion of the expenses of the Business Combination. This loan is
non-interest
bearing, unsecured and due at the earlier of December 31, 2021 or the closing of the Business Combination. The Company had no borrowings under the promissory note.
Further, our Sponsor, officers and directors or their respective affiliates may, but are not obligated to, loan us funds as may be required (the “Working Capital Loans”). If we complete a Business Combination, we would repay the Working Capital Loans. In the event that a Business Combination does not close, we 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. Such Working Capital Loans would be evidenced by promissory notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion. As of March 31, 2022 and December 31, 2021, no Working Capital Loans have been issued.
 
22

On November 16, 2021, January 18, 2022 and February 1, 2022, we received $100,000, $100,000 and 250,000 advances from Sponsor to be used for working capital purposes, respectively. The advances are
non-interest
bearing and due on demand. As of March 31, 2022 and December 31, 2021, we owed the Sponsor $450,000 and $100,000 related to these advances, respectively.
On April 26, 2022 and May 2, 2022, we received $50,000 and $100,000 advances from the Sponsor to be used for working capital purposes, respectively. The advances are non-interest bearing and due on demand.
We have incurred and expect to continue to incur significant costs in pursuit of our acquisition plans. We will need to raise additional capital through loans or additional investments from our Sponsor, stockholders, officers, directors, or third parties. Our officers, directors and Sponsor may, but are not obligated to, loan us funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet our working capital needs. Accordingly, we may not be able to obtain additional financing. These conditions raise substantial doubt about our ability to continue as a going concern for a period of time within one year after the date that the financial statements are issued. If the estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our Business Combination. Moreover, we may need to obtain additional financing or draw on the Working Capital Loans either to complete a Business Combination or because we become obligated to redeem a significant number of the Public Shares upon consummation of the Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion of a Business Combination.
Off-Balance
Sheet Financing Arrangements
We did not have any
off-balance
sheet arrangement as of March 31, 2022.
Contractual Obligations
As of March 31, 2022, we did not have any long-term debt, capital or operating lease obligations.
We entered into an administrative services agreement pursuant to which we will pay an affiliate of one of our directors for office space and secretarial and administrative services provided to members of our management team, in an amount not to exceed $10,000 per month. We have incurred $30,000 and $37,667 of administrative service fees for the three months ended March 31, 2022 and 2021, respectively.
Critical Accounting Policies
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following as our critical accounting policies:
Derivative Financial Instruments
We evaluate our financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “
Derivatives
and
Hedging
”. Derivative instruments are recorded at fair value on the grant date and
re-valued
at each reporting date, with changes in the fair value reported in the statements of operations. Derivative assets and liabilities are classified on the balance sheet as current or
non-current
based on whether or not
net-cash
settlement or conversion of the instrument could be required within 12 months of the balance sheet date. We have determined the warrants are a derivative instrument.
FASB ASC
470-20,
Debt with Conversion and Other Options addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components. We apply this guidance to allocate IPO proceeds from the Units between Class A common stock and warrants, using the residual method by allocating IPO proceeds first to fair value of the warrants and then the Class A common stock.
 
23

Class A Common Stock Subject to Possible Redemption
We account for our Class A common stock subject to possible redemption in accordance with the guidance in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “
Distinguishing Liabilities from Equity
.” Common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable Class A common stock (including 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 our control) are classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. Our Class A common stock feature certain redemption rights that are considered to be outside of our control and subject to the occurrence of uncertain future events. Accordingly, at March 31, 2022 and December 31, 2021, 30,000,000 Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ equity section of our balance sheet.
Net Income (loss) Per Share of Common Stock
We have two classes of shares, which are referred to as Class A common stock and Class B common stock. Earnings and losses are shared pro rata between the two classes of shares. The 23,000,000 shares of Class A common stock potentially issuable upon the exercise of outstanding warrants to purchase our shares were excluded from diluted earnings per share for the three months ended March 31, 2022 and 2021 because the warrants are contingently exercisable, and the contingencies have not yet been met. As a result, diluted net income (loss) per share of common stock is the same as basic net income (loss) per share of common stock for the periods presented.
Recent Accounting Standards
Management does not believe that any recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on our condensed financial statements.
JOBS Act
The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We qualify as an “emerging growth company” under the JOBS Act and are allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for
non-emerging
growth companies. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates. Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions we may not be required to, among other things, (i) provide an independent registered public accounting firm’s attestation report on our system of internal controls over financial reporting pursuant to Section 404, (ii) provide all of the compensation disclosure that may be required of
non-emerging
growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the independent registered public accounting firm’s report providing additional information about the audit and the financial statements (auditor discussion and analysis), and (iv) disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation.
 
24

These exemptions will apply for a period of five years following the completion of this offering or until we are no longer an “emerging growth company,” whichever is earlier.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
We are a smaller reporting company as defined by Rule
12b-2
of the Exchange Act and are not required to provide the information otherwise required under this item.
Item 4. Controls and Procedures.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
Evaluation of Disclosure Controls and Procedures
As required by Rules
13a-15
and
15d-15
under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of March 31, 2022, due to the material weakness in our internal control over financial reporting described below in “Changes in Internal Control over Financial Reporting.” In light of this material weakness, we performed additional analysis as deemed necessary to ensure that our unaudited interim financial statements were prepared in accordance with U.S. generally accepted accounting principles. We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, management believes that the financial statements included in this Quarterly Report on Form
10-Q
present fairly in all material respects our financial position, results of operations and cash flows for the periods presented.
It is noted that the
non-cash
adjustments to the financial statements do not impact the amounts previously reported for our cash and cash equivalents or total assets.
Changes in Internal Control over Financial Reporting
During the most recently completed fiscal quarter ended March 31, 2022, we have enhanced our internal controls over financial reporting relating to redeemable equity instruments by continuing to recognize all public shares as temporary equity. We further improved this process by expanding and improving our review for complex securities and related accounting standards, enhancing access to accounting literature, identification of third-party professionals with whom to consult regarding complex accounting applications. The elements of our remediation plan can only be accomplished over time, and we can offer no assurance that these initiatives will ultimately have the intended effects. There have been no changes in our internal controls over financial reporting, except as previously noted, that has materially affected, or is reasonably likely to affect, our internal control over financial reporting.
 
25

PART
II-OTHER
INFORMATION
Item 1. Legal Proceedings.
None.
Item 1A. Risk Factors.
Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our Annual Report on Form
10-K
filed with the SEC on March 29, 2022. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.
This Quarterly Report on Form
10-Q
contains an explanatory paragraph that expresses substantial doubt about our ability to continue as a “going concern.” As of March 31, 2022, we had cash outside the Trust Account of $22,971 available for working capital needs and a negative working capital of $584,747. Further, we expect to incur significant costs in pursuit of our initial Business Combination. Management’s plans to address this need for capital are discussed in Note 1 to our Financial Statements. We cannot assure you that our plans to raise capital or to consummate an initial Business Combination will be successful. These factors, among others, raise substantial doubt about our ability to continue as a going concern through June 11, 2022, our scheduled liquidation date, if we do not complete a Business Combination prior to such date. The condensed consolidated financial statements contained in this Quarterly Report on Form
10-Q
do not include any adjustments that might result from our inability to continue as a going concern.
As of the date of this Quarterly Report on Form
10-Q,
there have been no other material changes to the risk factors disclosed in our Annual Report on Form
10-K
filed with the SEC on March 29, 2022. However, we may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
 
26

Item 5. Other Information.
None.
 
27

Item 6. Exhibits.
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form
10-Q.
Exhibit Index
 
Exhibit No.
  
Description
   
  31.1*    Certification of Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 promulgated under the Securities Exchange Act of 1934
   
  31.2*    Certification of Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 promulgated under the Securities Exchange Act of 1934
   
  32.1**    Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
  32.2**    Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
101.INS*    Inline XBRL Instance Document
   
101.SCH*    Inline XBRL Taxonomy Extension Schema Document
   
101.CAL*    Inline XBRL Taxonomy Extension Calculation Linkbase Document
   
101.DEF*    Inline XBRL Taxonomy Extension Definition Linkbase Document
   
101.LAB*    Inline XBRL Taxonomy Extension Label Linkbase Document
   
101.PRE*    Inline XBRL Taxonomy Extension Presentation Linkbase Document
   
104    Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
 
*
Filed herewith
**
Furnished herewith
 
28

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
       
ALTITUDE ACQUISITION CORP.
       
Date
: May 13, 2022
      By:  
/s/ Gary Teplis
            Name: Gary Teplis
            Title: Chief Executive Officer
           
(Principal Executive Officer)
 
29