Business context and reporting period
This is dMY Technology Group, Inc. IV’s Form 10-Q for the quarter ended June 30, 2021—not an operating-company 10-Q filed by Planet Labs PBC. dMY IV was a special purpose acquisition company (SPAC) with no operating business or revenue. After quarter-end, on July 7, 2021, it entered into a merger agreement with Planet Labs Inc.; the transaction remained subject to closing conditions, including stockholder approvals.
Financial results and position
- Revenue: None; dMY IV had not commenced operations.
- Net loss: $236,373 for the three months and $14.79 million for the six months ended June 30, 2021. The six-month loss included a $14.06 million charge upon issuance of private-placement warrants and about $711,000 of warrant-related offering costs.
- Expenses and other items: General and administrative expense was $3.12 million for the quarter and $3.39 million for the six-month period. A $2.93 million quarterly gain from the change in fair value of warrant liabilities partly offset expenses.
- Cash flow: Operating cash use was $3.22 million for the six months. Cash at June 30 was $229,410; $345 million was held in the trust account, primarily in U.S. Treasury securities.
- Liquidity and liabilities: Working capital deficiency was approximately $323,000, excluding about $100,000 of tax obligations that could be paid from trust investment income. Total liabilities were $46.79 million, including $31.75 million of derivative warrant liabilities, $12.08 million of deferred underwriting commissions, and $2.36 million of deferred legal fees. The filing reported no borrowings under working-capital loans at June 30.
- Margins and debt: Not meaningful for this non-operating SPAC; no operating revenue or conventional operating margin was reported. No debt balance was reported at June 30.
Changes versus the prior comparable period
The filing provides no prior-year comparable operating results; dMY IV was formed in December 2020 and completed its IPO in March 2021. Its six-month results reflect formation, IPO and SPAC search activities, rather than Planet Labs’ business performance.
Outlook, risks and unusual items
- Management stated it expected insufficient working capital to meet needs through the earlier of a business combination or one year from the filing. An officer advanced $37,000 in August 2021.
- The proposed Planet merger was announced after quarter-end and was conditional; completion was not assured. The SPAC had until March 9, 2023 to complete a business combination or return trust funds to public shareholders, subject to the filing’s terms.
- Management identified possible dilution from shares or securities issued in a transaction, redemption risk, and uncertainty about the COVID-19 pandemic’s effects. Warrants could expire worthless if no business combination is completed.
- Disclosure controls were assessed as ineffective at a reasonable assurance level due to a material weakness related to the accounting treatment of warrants. Management said it performed additional analyses and believed the financial statements were fairly presented.
- No revenue, profit, cash-flow or operating guidance for Planet Labs is provided in this filing.
Investor facts to verify
- Confirm this SPAC filing is not being mistaken for Planet Labs’ standalone financial statements or operating metrics.
- Check subsequent filings for the merger’s final terms, closing status, financing, redemptions and resulting share dilution.
- Review the going-concern disclosure, post-quarter officer advance and dMY IV’s available working capital.
- Assess the warrant-liability valuation and the reported material weakness in disclosure controls.