Mobile Infrastructure Corp quarterly report, Q2 FY2021

Filing summary: Fifth Wall Acquisition Corp. III, Q2 2021

Important entity mismatch: The request identifies Mobile Infrastructure Corp, but the supplied Form 10-Q is for Fifth Wall Acquisition Corp. III (ticker FWAC), a Cayman Islands SPAC. The filing does not report Mobile Infrastructure Corp’s results.

Business context and reporting period

This unaudited 10-Q covers the quarter ended June 30, 2021. The company was formed on February 19, 2021 to pursue a business combination and had not begun operating activities. Its reported activity relates to formation, its May 2021 IPO, and its search for a target. It reported no operating revenue.

Financial position and results

MetricReported amount
Trust Account investments at June 30$275.0 million
Cash at June 30$1.589 million
Working capitalApproximately $2.3 million
Total assets$278.175 million
Total liabilities$10.515 million, including $9.625 million deferred underwriting commissions
Quarter net loss$310,439; $0.05 per non-redeemable share
Inception-to-date net loss$335,746; $0.05 per non-redeemable share
Operating cash used, inception to June 30$1.846 million
DebtNo Working Capital Loans outstanding; approximately $109,000 of sponsor note borrowings was repaid after the IPO closed

The IPO issued 27.5 million public shares at $10 each for $275.0 million gross proceeds. A concurrent sponsor private placement raised approximately $9.07 million. IPO costs were approximately $16.1 million, including the deferred underwriting commission. No meaningful operating margin comparison is available because the company had no operating revenue and began business in February 2021.

Changes, outlook, risks, and contingencies

  • The filing has no prior-year comparable period; the company was formed in February 2021. Q2 net loss was $310,439 versus $25,307 for the first quarter, per the statements of changes in equity.
  • Management expected available working capital and potential sponsor or insider borrowing capacity to fund operations through the earlier of a business combination or one year from the filing. Such loans are discretionary, not committed.
  • The SPAC must complete a qualifying business combination by May 27, 2023 or redeem public shares and wind up. A target must generally represent at least 80% of trust net assets under the stated test; the post-transaction company must acquire control of the target. Public shareholders have redemption rights.
  • The $9.625 million deferred underwriting commission is payable from the trust only if a business combination is completed. The trust is invested in U.S. government money-market investments or securities.
  • Management stated COVID-19 could adversely affect the company or its target search, but the impact was not determinable. The filing states no material change to previously disclosed risk factors and no legal proceedings.
  • Management concluded disclosure controls were effective as of June 30, 2021, with no material changes in internal control reported. The filing provides no business-combination target guidance or operating forecast.

Investor facts to verify

  • Confirm the intended issuer: this filing is FWAC, not Mobile Infrastructure Corp.
  • Reconcile the filing’s redeemable-share counts: the balance sheet reports 26,265,988, while MD&A elsewhere states 26,267,388.
  • Verify the reported weighted-average redeemable Class A shares of 275,000,000; this figure appears inconsistent with the 27.5 million IPO shares.
  • Check post-quarter share changes: the filing says the sponsor forfeited 312,500 Class B shares on August 9, 2021, while the cover reports 6,875,000 Class B shares outstanding as of that date.
  • Assess the business-combination deadline, redemption mechanics, deferred underwriting fee, and reliance on discretionary sponsor financing.