What changed in this filing

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Item 2. Management’s Discussion and Analysis

2022-08-15 compared with 2022-05-16 · 266 added, 262 removed, 2 unchanged (100% of the section changed)

Management’s Discussion and Analysis of Financial

Condition and Results of Operations.

References to the “Company,” “our,”

“us” or “we” refer to CF Acquisition Corp.

The following discussion and analysis of the Company’s financial

condition and results of operations should be read in conjunction with the unaudited condensed consolidated financial statements and the

notes thereto contained elsewhere in this report.

Certain information contained in the discussion and analysis set forth below includes

forward-looking statements that involve risks and uncertainties.

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, 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.

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.

Such statements include, but are not limited to, possible

business combinations and the financing thereof, and related matters, as well as all other statements other than statements of historical

fact included in this Form 10-Q.

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.

We are a blank check company incorporated in Delaware

on April 17, 2020 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or

similar business combination with one or more businesses (the “Initial Business Combination”).

Our sponsor is CFAC Holdings

VI, LLC (the “Sponsor”).

Although we are not limited in our search for

target businesses to a particular industry or sector for the purpose of consummating the Initial Business Combination, we are focusing

our search on companies operating in the financial services, healthcare, real estate services, technology and software industries.

are an early stage and emerging growth company and, as such, we are subject to all of the risks associated with early stage and emerging

growth companies.

Our registration statement for our initial public

offering (the “Initial Public Offering”) became effective on February 18, 2021.

On February 23, 2021, we consummated the Initial

Public Offering of 30,000,000 units (each, a “Unit” and with respect to the shares of Class A common stock included in the

Units sold, the “Public Shares”), at a purchase price of $10.00 per Unit, generating gross proceeds of $300,000,000.

Unit consists of one share of Class A common stock and one-fourth of one redeemable warrant.

Each whole warrant entitles the holder to

purchase one share of Class A common stock at a price of $11.50.

Each warrant will become exercisable 30 days after the completion of

the Initial Business Combination and will expire 5 years after the completion of the Initial Business Combination, or earlier upon redemption

or liquidation.

Simultaneously with the closing of the Initial

Public Offering, we consummated the sale of 700,000 Units (the “Private Placement Units”) at a price of $10.00 per Private

Placement Unit to the Sponsor in a private placement (the “Private Placement”), generating gross proceeds of $7,000,000.

Following the closing of the Initial Public Offering

and sale of the Private Placement Units on February 23, 2021, an amount of $300,000,000 ($10.00 per Unit) from the net proceeds of the

sale of the Units in the Initial Public Offering and the sale of the Private Placement Units was placed in a trust account (the “Trust

Account”) located in the United States at J.P.

Morgan Chase Bank, N.A., with Continental Stock Transfer & Trust Company acting

as trustee, which may be invested only in U.S.

government securities, within the meaning set forth in Section 2(a)(16) of the Investment

Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment

company that holds itself out as a money market fund selected by us meeting the conditions of paragraphs (d)(2), (d)(3) and (d)(4) of

Rule 2a-7 of the Investment Company Act, as determined by us, until the earlier of:

(i) the completion of an Initial Business Combination

and (ii) the distribution of the Trust Account, as described below.

We have until February 23, 2023 (24 months from

the closing of the Initial Public Offering), or a later date approved by our stockholders in accordance with the Amended and Restated

Certificate of Incorporation, to consummate an Initial Business Combination (the “Combination Period”).

If we are unable to

complete an Initial Business Combination by the end of the Combination Period, we will (i) cease all operations except for the purpose

of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a

per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the

funds held in the Trust Account and not previously released to us to pay taxes (less up to $100,000 of interest to pay dissolution expenses),

divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights

as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly

as reasonably possible following such redemption, subject to the approval of our remaining stockholders and our board of directors, dissolve

and liquidate, subject in the case of clauses (ii) and (iii) to our obligations under Delaware law to provide for claims of creditors

and the requirements of other applicable law.

There will be no redemption rights or liquidating distributions with respect to our warrants,

which will expire worthless if we fail to complete an Initial Business Combination within the Combination Period.

Liquidity and Capital

As of both March 31, 2022 and December 31, 2021,

we had $25,000 of cash in our operating account.

As of March 31, 2022 and December 31, 2021, we had a working capital deficit of approximately

$3,067,000 and $2,516,000, respectively.

As of March 31, 2022 and December 31, 2021, we had approximately $5,000 and $23,000, respectively,

of interest income from the Trust Account available to pay taxes (less up to $100,000 of interest to pay dissolution expenses).

Our liquidity needs through March 31, 2022 have

been satisfied through a contribution of $25,000 from the Sponsor in exchange for the issuance of the founder shares, a loan of approximately

$151,000 from the Sponsor pursuant to a promissory note (the “Pre-IPO Note”), the proceeds from the consummation of the Private

Placement with the Sponsor not held in the Trust Account, and the Sponsor Loan (as defined below).

We fully repaid the Pre-IPO Note upon

completion of the Initial Public Offering.

In addition, in order to finance transaction costs in connection with an Initial Business Combination,

the Sponsor has committed up to $1,750,000 to be provided to us to fund our expenses relating to investigating and selecting a target

business and other working capital requirements after the Initial Public Offering and prior to our Initial Business Combination (the “Sponsor

If the Sponsor Loan is insufficient, the Sponsor or an affiliate of the Sponsor, or certain of our officers and directors

may, but are not obligated to, provide us additional loans (“Working Capital Loans”).

As of March 31, 2022 and December 31,

2021, there was approximately $1,984,000 and $949,000, respectively, outstanding under the loans payable by us to the Sponsor.

31, 2022 and December 31, 2021, these amounts included approximately $1,750,000 and $949,000, respectively, outstanding under the Sponsor

Loan, and approximately $234,000 and $0, respectively, outstanding under the Working Capital Loans.

Based on the foregoing, management believes that

we will have sufficient working capital and borrowing capacity from the Sponsor to meet our needs through the earlier of the consummation

of an Initial Business Combination or one year from the date of this report.

Over this time period, we will be using these funds for paying

existing accounts payable, identifying and evaluating prospective target businesses, performing due diligence on prospective target businesses,

paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating

the Initial Business Combination.

Results of Operations

Our entire activity from inception through March

31, 2022 related to our formation, the Initial Public Offering, and to our efforts towards locating and completing a suitable Initial

Business Combination.

We have neither engaged in any operations nor generated any revenues to date.

We will not generate any operating

revenues until after completion of our Initial Business Combination.

We will generate non-operating income in the form of interest income

on investments held in the Trust Account.

We expect to incur increased expenses as a result of being a public company (for legal, financial

reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the three months ended March 31, 2022, we

had a net loss of approximately $10,096,000, which consisted of approximately $6,409,000 of loss from the change in fair value of warrant

liability, approximately $3,038,000 of loss from the change in fair value of FPS liability, approximately $576,000 of general and administrative

expenses, $50,000 of franchise tax expense, and $30,000 of administrative expenses paid to the Sponsor, partially offset by approximately

$7,000 of interest income on investments held in the Trust Account.

For the three months ended March 31, 2021, we

had a net loss of approximately $3,173,000, which consisted of approximately $2,789,000 of loss from the change in fair value of FPS liability,

approximately $199,000 of loss from the change in fair value of warrant liability, approximately $135,000 of general and administrative

expenses, approximately $38,000 of franchise tax expense, and approximately $12,000 of administrative expenses paid to the Sponsor.

Contractual Obligations

Business Combination Marketing Agreement

We engaged Cantor Fitzgerald & Co.

an affiliate of the Sponsor, as an advisor in connection with the Initial Business Combination to assist us in holding meetings with our

stockholders to discuss any potential Initial Business Combination and the target business’ attributes, introduce us to potential

investors that are interested in purchasing our securities and assist us with our press releases and public filings in connection with

any Initial Business Combination.

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

to the “Company,” “our,” “us” or “we” refer to CF Acquisition Corp.

The following

discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the unaudited

condensed consolidated financial statements and the notes thereto contained elsewhere in this report.

Certain information contained in

the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

Note Regarding Forward-Looking Statements

Quarterly Report on Form 10-Q (this “Report”) includes forward-looking statements within the meaning of Section 27A

of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange

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.

statements include, but are not limited to, possible business combinations and the financing thereof, and related matters, as well as

all other statements other than statements of historical fact included in this Form 10-Q.

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.

are a blank check company incorporated in Delaware on April 17, 2020 for the purpose of effecting a merger, capital stock exchange, asset

acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Initial Business

Combination”).

Our sponsor is CFAC Holdings VI, LLC (the “Sponsor”).

we are not limited in our search for target businesses to a particular industry or sector for the purpose of consummating the Initial

Business Combination, we are focusing our search on companies operating in the financial services, healthcare, real estate services,

technology and software industries.

We are an early stage and emerging growth company and, as such, we are subject to all of the risks

associated with early stage and emerging growth companies.

registration statement for our initial public offering (the “Initial Public Offering”) became effective on February 18, 2021.

On February 23, 2021, we consummated the Initial Public Offering of 30,000,000 units (each, a “Unit” and with respect to

the shares of Class A common stock included in the Units sold, the “Public Shares”), at a purchase price of $10.00 per Unit,

generating gross proceeds of $300,000,000.

Each Unit consists of one share of Class A common stock and one-fourth of one redeemable warrant.

Each whole warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50.

Each warrant will become exercisable

30 days after the completion of the Initial Business Combination and will expire 5 years after the completion of the Initial Business

Combination, or earlier upon redemption or liquidation.

Simultaneously

with the closing of the Initial Public Offering, we consummated the sale of 700,000 Units (the “Private Placement Units”)

at a price of $10.00 per Private Placement Unit to the Sponsor in a private placement (the “Private Placement”), generating

gross proceeds of $7,000,000.

the closing of the Initial Public Offering and sale of the Private Placement Units on February 23, 2021, an amount of $300,000,000 ($10.00

per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Units was

placed in a trust account (the “Trust Account”) located in the United States at J.P.

Morgan Chase Bank, N.A., with Continental

Stock Transfer & Trust Company acting as trustee, which may be invested only in U.S.

government securities, within the meaning set

forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity

of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by us meeting the conditions

of paragraphs (d)(2), (d)(3) and (d)(4) of Rule 2a-7 of the Investment Company Act, as determined by us, until the earlier of:

completion of an Initial Business Combination and (ii) the distribution of the Trust Account, as described below.

have until February 23, 2023 (24 months from the closing of the Initial Public Offering), or a later date approved by our stockholders

in accordance with the Amended and Restated Certificate of Incorporation, to consummate an Initial Business Combination (the “Combination

If we are unable to complete an Initial Business Combination by the end of the Combination Period, we will (i) cease

all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter,

redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including

interest earned on the funds held in the Trust Account and not previously released to us to pay taxes (less up to $100,000 of interest

to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public

stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable

law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of our remaining stockholders and

our board of directors, dissolve and liquidate, subject in the case of clauses (ii) and (iii) to our obligations under Delaware law to

provide for claims of creditors and the requirements of other applicable law.

There will be no redemption rights or liquidating distributions

with respect to our warrants, which will expire worthless if we fail to complete an Initial Business Combination within the Combination

Recent Developments

Our Registration Statement on Form S-4 in relation

to our proposed business combination with Rumble, Inc.

(“Rumble” and such business combination, the “Rumble Business

Combination”), initially filed by us with the SEC on February 14, 2022, as amended (File No.

333-262725) (the “Rumble Registration

Statement”), was declared effective by the SEC on August 11, 2022.

In addition, on August 11, 2022, we and Rumble issued a joint

press release announcing that (i) the SEC declared effective the Rumble Registration Statement, (ii) we have established July 25, 2022

as the record date for the special meeting of our stockholders to be held in connection with the Rumble Business Combination (the “Special

Meeting”), and (iii) the Special Meeting will be held on September 15, 2022.

On August 12, 2022, we filed a definitive proxy statement/prospectus

with the SEC (the “Proxy Statement”) in connection with the Special Meeting to approve the Business Combination Agreement

with Rumble and the other proposals set forth in the Proxy Statement.

and Capital Resources

of June 30, 2022 and December 31, 2021, we had approximately $215,000 and $25,000 respectively, of cash in our operating account.

of June 30, 2022 and December 31, 2021, we had a working capital deficit of approximately $3,680,000 and $2,516,000, respectively.

of June 30, 2022 and December 31, 2021, we had approximately $346,000 and $23,000, respectively, of interest income from the Trust Account

available to pay taxes (less up to $100,000 of interest to pay dissolution expenses).

liquidity needs through June 30, 2022 have been satisfied through a contribution of $25,000 from the Sponsor in exchange for the issuance

of the founder shares, a loan of approximately $151,000 from the Sponsor pursuant to a promissory note (the “Pre-IPO Note”),

the proceeds from the consummation of the Private Placement with the Sponsor not held in the Trust Account, and the Sponsor Loan (as

defined below).

We fully repaid the Pre-IPO Note upon completion of the Initial Public Offering.

In addition, in order to finance transaction

costs in connection with an Initial Business Combination, the Sponsor has committed up to $1,750,000 to be provided to us to fund our

expenses relating to investigating and selecting a target business and other working capital requirements after the Initial Public Offering

and prior to our Initial Business Combination (the “Sponsor Loan”).

If the Sponsor Loan is insufficient, the Sponsor or an

affiliate of the Sponsor, or certain of our officers and directors may, but are not obligated to, provide us additional loans (“Working

Capital Loans”).

April 21, 2022, we entered into a Working Capital Loan with the Sponsor in the amount of up to $500,000.

See “Related Party

of June 30, 2022 and December 31, 2021, there was approximately $2,173,000 and $949,000, respectively, outstanding under the loans payable

by us to the Sponsor.

As of June 30, 2022 and December 31, 2021, these amounts included $1,750,000 and approximately $949,000, respectively,

outstanding under the Sponsor Loan, and approximately $423,000 and $0, respectively, outstanding under the Working Capital Loans.

on the foregoing, management believes that we will have sufficient working capital and borrowing capacity from the Sponsor to meet our

needs through the earlier of the consummation of an Initial Business Combination or one year from the date of this report.

time period, we will be using these funds for paying existing accounts payable, identifying and evaluating prospective target businesses,

performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with

or acquire, and structuring, negotiating and consummating the Initial Business Combination.

of Operations

entire activity from inception through June 30, 2022 related to our formation, the Initial Public Offering, and to our efforts towards

locating and completing a suitable Initial Business Combination.

We have neither engaged in any operations nor generated any revenues

We will not generate any operating revenues until after completion of our Initial Business Combination.

We will generate non-operating

income in the form of interest income on investments held in the Trust Account.

We expect to incur increased expenses as a result of

being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

the three months ended June 30, 2022, we had net income of approximately $18,761,000, which consisted of approximately $15,695,000 of

gain from the change in fair value of warrant liability, approximately $3,337,000 of gain from the change in fair value of FPS liability,

and approximately $341,000 of interest income on investments held in the Trust Account, partially offset by approximately $520,000 of

general and administrative expenses, $53,000 of franchise tax expense, $30,000 of administrative expenses paid to the Sponsor and approximately

$9,000 of income tax expense.

the six months ended June 30, 2022, we had net income of approximately $8,664,000, which consisted of approximately $9,286,000 of gain

from the change in fair value of warrant liability, approximately $348,000 of interest income on investments held in the Trust Account,

and approximately $298,000 of gain from the change in fair value of FPS liability, partially offset by approximately $1,096,000 of general

and administrative expenses, $103,000 of franchise tax expense, $60,000 of administrative expenses paid to the Sponsor and approximately

$9,000 of income tax expense.

the three months ended June 30, 2021, we had net income of approximately $1,801,000, which consisted of approximately $2,444,000 of gain

from the change in fair value of warrant liability and approximately $8,000 of interest income on investments held in the Trust Account,

partially offset by approximately $332,000 of general and administrative expenses, approximately $234,000 of loss from the change in

fair value of FPS liability, approximately $55,000 of franchise tax expense and $30,000 of administrative expenses paid to the Sponsor.

the six months ended June 30, 2021, we incurred a net loss of approximately $1,372,000, which consisted of approximately $3,024,000 of

loss from the change in fair value of FPS liability, approximately $467,000 of general and administrative expenses, approximately $92,000

of franchise tax expense and approximately $42,000 of administrative expenses paid to the Sponsor, partially offset by approximately

$2,245,000 of gain from the change in fair value of warrant liability and approximately $8,000 of interest income on investments held

in the Trust Account.

Combination Marketing Agreement

engaged Cantor Fitzgerald & Co.

(“CF&Co.”), an affiliate of the Sponsor, as an advisor in connection with the Initial

Business Combination to assist us in holding meetings with our stockholders to discuss any potential Initial Business Combination and

the target business’ attributes, introduce us to potential investors that are interested in purchasing our securities and assist

us with our press releases and public filings in connection with any Initial Business Combination.

We will pay CF&Co.

a cash fee for such services upon the consummation of the Initial Business Combination

in an amount of $10,500,000, which is equal to 3.5% of the gross proceeds of the Initial Public Offering.

Related Party Loans

In order to finance transaction costs in connection

with an intended Initial Business Combination, the Sponsor has committed up to $1,750,000 in the Sponsor Loan to be provided to us to

fund expenses relating to investigating and selecting a target business and other working capital requirements, including $10,000 per

month for office space, administrative and shared personnel support services that will be paid to the Sponsor, after the Initial Public

Offering and prior to our Initial Business Combination.

As of March 31, 2022 and December 31, 2021, there was approximately $1,984,000

and $949,000, respectively, outstanding under the loans payable by us to the Sponsor.

As of March 31, 2022 and December 31, 2021, these

amounts included approximately $1,750,000 and $949,000, respectively, outstanding under the Sponsor Loan, and approximately $234,000 and

$0, respectively, outstanding under the Working Capital Loans.

The Sponsor pays expenses on our behalf and we

reimburse the Sponsor for such expenses paid on our behalf.

As of March 31, 2022 and December 31, 2021, we had accounts payable outstanding

to the Sponsor for such expenses paid on our behalf of $0 and approximately $557,000, respectively.

Critical Accounting Policies and Estimates

We have identified the following as our critical

accounting polices:

Use of Estimates

The preparation of our unaudited condensed consolidated

financial statements and related disclosures in conformity with U.S.

GAAP requires management to make estimates and assumptions that affect

the reported amounts of assets and liabilities, income and expenses, and the disclosure of contingent assets and liabilities, in our unaudited

condensed consolidated financial statements.

These accounting estimates require the use of assumptions about matters, some of which are

highly uncertain at the time of estimation.

Management bases its estimates on historical experience and on various other assumptions it

believes to be reasonable under the circumstances, the results of which form the basis for making judgments, and we evaluate these estimates

on an ongoing basis.

To the extent actual experience differs from the assumptions used, our unaudited condensed consolidated balance sheets,

unaudited condensed consolidated statements of operations, unaudited condensed consolidated statements of stockholders’ deficit

and unaudited condensed consolidated statements of cash flows could be materially affected.

We believe that the following accounting policies

involve a higher degree of judgment and complexity.

Going Concern

In connection with our going concern considerations

in accordance with guidance in the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 205-40,

Presentation of Financial Statements – Going Concern , we have until February 23, 2023 to consummate an Initial Business Combination.

Our mandatory liquidation date, if an Initial Business Combination is not consummated, raises substantial doubt about our ability to continue

as a going concern.

Our financial statements included in this report do not include any adjustments related to the recovery of the recorded

assets or the classification of the liabilities should we be unable to continue as a going concern.

In the event of a mandatory liquidation,

within ten business days, we will redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then

on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to us to

pay taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares.

Emerging Growth Company

Section 102(b)(1) of the Jumpstart Our Business

Startups Act of 2012 (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 registration statement under the Securities

Act of 1933, as amended (the “Securities Act”) 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 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.

We have elected not to opt out of such extended transition period which means that when a standard

is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt

the new or revised standard at the time private companies adopt the new or revised standard.

Warrant and FPS Liability

We account for our outstanding public warrants

and private placement warrants and the securities underlying the forward purchase agreement with the Sponsor (the “FPA” and

such securities, the “FPS”) in accordance with guidance in ASC 815-40, Derivatives and Hedging - Contracts in Entity’s

Own Equity , under which the warrants and the FPS do not meet the criteria for equity classification and must be recorded as liabilities.

As both the public and private placement warrants and the FPS meet the definition of a derivative under ASC 815, Derivatives and Hedging ,

they are measured at fair value at inception and at each reporting date in accordance with the guidance in ASC 820, Fair Value Measurement ,

with any subsequent changes in fair value recognized in the statement of operations in the period of change.

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 ASC 480, Distinguishing Liabilities from Equity .

Shares of Class A common

stock subject to mandatory redemption (if any) are classified as liability instruments and measured at fair value.

Shares of conditionally

redeemable Class A common stock (including shares of 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 our control) are classified as temporary

At all other times, shares of Class A common stock are classified as stockholders’ equity.

All of the Public Shares feature

certain redemption rights that are considered to be outside of our control and subject to the occurrence of uncertain future events.

as of both March 31, 2022 and December 31, 2021, 30,000,000 shares of Class A common stock subject to possible redemption are presented

as temporary equity outside of the stockholders’ equity section of our balance sheets.

We recognize any subsequent changes in redemption

value immediately as they occur and adjust the carrying value of redeemable shares of Class A common stock to the redemption value at

the end of each reporting period.

Immediately upon the closing of the Initial Public Offering, we recognized the accretion from initial

book value to redemption amount value of redeemable Class A common stock.

This method would view the end of the reporting period as if

it were also the redemption date for the security.

The change in the carrying value of redeemable shares of Class A common stock also

resulted in charges against Additional paid-in capital and Accumulated deficit.

Net Loss Per Share of Common Stock

We comply with the accounting and disclosure requirements

of ASC 260, Earnings Per Share .

Net loss per share of common stock is computed by dividing net loss applicable to stockholders

by the weighted average number of shares of common stock outstanding for the applicable periods.

We apply the two-class method in calculating

earnings per share and allocate net loss pro-rata to shares of Class A common stock subject to possible redemption, nonredeemable shares

of Class A common stock and shares of Class B common stock.

This presentation contemplates a Business Combination as the most likely outcome,

in which case all classes of common stock share pro-rata in the net loss of the Company.

Accretion associated with the redeemable shares

of Class A common stock is excluded from earnings per share as the redemption value approximates fair value.

We have not considered the effect of the warrants

to purchase an aggregate of 7,675,000 shares of Class A common stock sold in the Initial Public Offering and the Private Placement in

the calculation of diluted earnings per share, because their exercise is contingent upon future events and their inclusion would be anti-dilutive

under the treasury stock method.

As a result, diluted earnings per share of common stock is the same as basic earnings per share of common

stock for the periods presented.

See Note 2—“Summary of Significant

Accounting Policies” to our unaudited condensed consolidated financial statements in Part I, Item 1 of this report for additional

information regarding these critical accounting policies and other significant accounting policies.

Factors That May Adversely Affect Our Results of Operations

Our results of operations and our ability to complete

an Initial Business Combination, including the business combination with Rumble, Inc.

as described in our consolidated financial statements

included in this report (the “Rumble Business Combination”), may be adversely affected by various factors that could cause

economic uncertainty and volatility in the financial markets, many of which are beyond our control.

Our business could be impacted by,

among other things, downturns in the financial markets or in economic conditions, increases in oil prices, inflation, increases in interest

rates, supply chain disruptions, declines in consumer confidence and spending, the ongoing effects of the COVID-19 pandemic, including

resurgences and the emergence of new variants, and geopolitical instability, such as the military conflict in the Ukraine.

this time fully predict the likelihood of one or more of the above events, their duration or magnitude or the extent to which they may

negatively impact our business and our ability to complete an Initial Business Combination, including the Rumble Business Combination.

for such services upon the consummation of the Initial Business Combination in an amount of $10,500,000, which is equal to 3.5% of the

gross proceeds of the Initial Public Offering.

order to finance transaction costs in connection with an intended Initial Business Combination, the Sponsor has committed up to $1,750,000

in the Sponsor Loan to be provided to us to fund expenses relating to investigating and selecting a target business and other working

capital requirements, including $10,000 per month for office space, administrative and shared personnel support services that will be

paid to the Sponsor, after the Initial Public Offering and prior to our Initial Business Combination.

April 21, 2022, we entered into a Working Capital Loan (the “2022 Working Capital Loan”) with the Sponsor in the amount of

up to $500,000 in connection with advances the Sponsor will make to us for working capital expenses.

The 2022 Working Capital Loan bears

no interest and is due and payable on the date on which we consummate our Initial Business Combination.

The principal balance may be

prepaid at any time.

of June 30, 2022 and December 31, 2021, there was approximately $2,173,000 and $949,000, respectively, outstanding under the loans payable

by us to the Sponsor.

As of June 30, 2022 and December 31, 2021, these amounts included $1,750,000 and approximately $949,000, respectively,

outstanding under the Sponsor Loan, and approximately $423,000 and $0, respectively, outstanding under the Working Capital Loans.

Sponsor pays expenses on our behalf and we reimburse the Sponsor for such expenses paid on our behalf.

As of June 30, 2022 and December

31, 2021, we had accounts payable outstanding to the Sponsor for such expenses paid on our behalf of approximately $190,000 and $557,000,

respectively.

Accounting Policies and Estimates

have identified the following as our critical accounting polices:

preparation of our unaudited condensed consolidated financial statements and related disclosures in conformity with U.S.

GAAP requires

management to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and the

disclosure of contingent assets and liabilities, in our unaudited condensed consolidated financial statements.

These accounting estimates

require the use of assumptions about matters, some of which are highly uncertain at the time of estimation.

Management bases its estimates

on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which

form the basis for making judgments, and we evaluate these estimates on an ongoing basis.

To the extent actual experience differs from

the assumptions used, our unaudited condensed consolidated balance sheets, unaudited condensed consolidated statements of operations,

unaudited condensed consolidated statements of stockholders’ deficit and unaudited condensed consolidated statements of cash flows

could be materially affected.

We believe that the following accounting policies involve a higher degree of judgment and complexity.

In connection with our going concern considerations in accordance with

guidance in the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 205-40, Presentation of

Financial Statements – Going Concern , we have until February 23, 2023 to consummate an Initial Business Combination.

Our mandatory

liquidation date, if an Initial Business Combination is not consummated, raises substantial doubt about our ability to continue as a going

The consummation of the Rumble Business Combination is subject to, among other closing conditions, the approval of our stockholders,

and other terms and conditions as described in the Current Reports on Form 8-K filed by us with the SEC on December 2, 2021, the Rumble

Registration Statement, and the Proxy Statement.

Our financial statements included in this report do not include any adjustments

related to the recovery of the recorded assets or the classification of the liabilities should we be unable to continue as a going concern.

In the event of a mandatory liquidation, within ten business days, we will redeem the Public Shares, at a per-share price, payable in

cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account

and not previously released to us to pay taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number

of then outstanding Public Shares.

Growth Company

102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (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 registration

statement under the Securities Act of 1933, as amended (the “Securities Act”) 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.

Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging

growth companies but any such election to opt out is irrevocable.

We have elected not to opt out of such extended transition period which

means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging

growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

and FPS Liability

account for our outstanding public warrants and private placement warrants and the securities underlying the forward purchase agreement

with the Sponsor (the “FPA” and such securities, the “FPS”) in accordance with guidance in ASC 815-40, Derivatives

and Hedging - Contracts in Entity’s Own Equity , under which the warrants and the FPS do not meet the criteria for equity classification

and must be recorded as liabilities.

As both the public and private placement warrants and the FPS meet the definition of a derivative

under ASC 815, Derivatives and Hedging , they are measured at fair value at inception and at each reporting date in accordance

with the guidance in ASC 820, Fair Value Measurement , with any subsequent changes in fair value recognized in the statement of

operations in the period of change.

Common Stock Subject to Possible Redemption

account for our Class A common stock subject to possible redemption in accordance with the guidance in ASC 480, Distinguishing Liabilities

from Equity .

Shares of Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and

measured at fair value.

Shares of conditionally redeemable Class A common stock (including shares of 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 our control) are classified as temporary equity.

At all other times, shares of Class A common stock are classified as stockholders’

All of the Public Shares feature certain redemption rights that are considered to be outside of our control and subject to the

occurrence of uncertain future events.

Accordingly, as of both June 30, 2022 and December 31, 2021, 30,000,000 shares of Class A common

stock subject to possible redemption are presented as temporary equity outside of the stockholders’ equity section of our balance

We recognize any subsequent changes in redemption value immediately as they occur and adjust the carrying value of redeemable

shares of Class A common stock to the redemption value at the end of each reporting period.

Immediately upon the closing of the Initial

Public Offering, we recognized the accretion from initial book value to redemption amount value of redeemable Class A common stock.

method would view the end of the reporting period as if it were also the redemption date for the security.

The change in the carrying

value of redeemable shares of Class A common stock also resulted in charges against Additional paid-in capital and Accumulated deficit.

Income (Loss) Per Share of Common Stock

comply with the accounting and disclosure requirements of ASC 260, Earnings Per Share .

Net income (loss) per share of common stock

is computed by dividing net income (loss) applicable to stockholders by the weighted average number of shares of common stock outstanding

for the applicable periods.

We apply the two-class method in calculating earnings per share and allocate net income (loss) pro-rata to

shares of Class A common stock subject to possible redemption, nonredeemable shares of Class A common stock and shares of Class B common

This presentation contemplates a Business Combination as the most likely outcome, in which case all classes of common stock share

pro-rata in the net income (loss) of the Company.

Accretion associated with the redeemable shares of Class A common stock is excluded

from earnings per share as the redemption value approximates fair value.

have not considered the effect of the warrants to purchase an aggregate of 7,675,000 shares of Class A common stock sold in the Initial

Public Offering and the Private Placement in the calculation of diluted earnings per share, because their exercise is contingent upon

future events and their inclusion would be anti-dilutive under the treasury stock method.

As a result, diluted earnings per share of

common stock is the same as basic earnings per share of common stock for the periods presented.

Note 2—“Summary of Significant Accounting Policies” to our unaudited condensed consolidated financial statements in

Part I, Item 1 of this report for additional information regarding these critical accounting policies and other significant accounting

That May Adversely Affect Our Results of Operations

Our results of operations and our ability to complete an Initial Business

Combination, including the Rumble Business Combination, may be adversely affected by various factors that could cause economic uncertainty

and volatility in the financial markets, many of which are beyond our control.

Our business could be impacted by, among other things,

downturns in the financial markets or in economic conditions, increases in oil prices, inflation, increases in interest rates, supply

chain disruptions, declines in consumer confidence and spending, the ongoing effects of the COVID-19 pandemic, including resurgences and

the emergence of new variants, and geopolitical instability, such as the military conflict in the Ukraine.

We cannot at this time fully

predict the likelihood of one or more of the above events, their duration or magnitude or the extent to which they may negatively impact

our business and our ability to complete an Initial Business Combination, including the Rumble Business Combination.

Off-Balance Sheet Arrangements and Contractual Obligations

As of March 31, 2022, we did not have any off-balance sheet arrangements

as defined in Item 303(a)(4)(ii) of Regulation S-K and did not have any commitments or contractual obligations.

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.

of June 30, 2022, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K and did

not have any commitments or contractual obligations.

Quantitative and Qualitative Disclosures about Market Risk.

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.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis