PLAYSTUDIOS, Inc. — Requested 2020 Q3 10-Q
Important filing mismatch: The supplied filing is for Acies Acquisition Corp., a Cayman Islands blank-check company, not PLAYSTUDIOS, Inc. The summary below reflects the supplied filing and should not be treated as PLAYSTUDIOS financial information.
Business context and reporting period
This unaudited Form 10-Q covers Acies Acquisition Corp. from its incorporation on August 14, 2020 through September 30, 2020; it does not provide a comparable prior-year period or standalone three-month results. Acies had not commenced operations and was formed to pursue a business combination. The filing describes its IPO and other financing transactions completed after quarter-end.
Financial results and liquidity
| Metric | Period / amount |
|---|---|
| Revenue | None; the company had no operating revenue. |
| Formation and operating costs / net loss | $16,739 / $(16,739) |
| Net loss per share | Basic and diluted: $(0.00) |
| Cash from operations | $(19,614) |
| Cash at September 30 | $143,032 |
| Total assets | $270,955, including $125,048 of deferred offering costs |
| Current liabilities | $262,694, including $257,694 due under a non-interest-bearing related-party promissory note |
| Shareholders’ equity | $8,261 |
| Long-term debt | None reported |
There are no operating margins to assess. The filing reports no prior comparable period, so it does not establish a year-over-year change in results.
Material subsequent events and outlook
- After quarter-end, Acies completed its IPO: 20,000,000 units at $10 each on October 27, 2020, followed by 1,525,000 additional units on November 9. The combined gross proceeds were $215.25 million.
- Private placement warrant sales generated a further $6.805 million. In total, $215.25 million was placed in the trust account; transaction costs were $12.364 million, including $7.534 million of deferred underwriting fees payable only if a business combination is completed.
- The company reported $4.179 million of cash outside the trust account as of October 27, available for offering expenses and working capital. It repaid the quarter-end related-party note after the IPO.
- Management expects to use trust funds primarily to complete a business combination, but gave no specific target or transaction guidance and cannot assure completion. The company generally must complete a combination by October 27, 2022, with a possible extension to January 27, 2023 if qualifying transaction arrangements are in place by the initial deadline.
- If no business combination is completed by the deadline, public shares are to be redeemed from the trust, while warrants may expire worthless. Significant shareholder redemptions or higher-than-estimated search and transaction expenses could require additional financing.
- Management said COVID-19 could negatively affect the company’s financial position, operations, or target search, but the impact was not determinable. The filing reports no legal proceedings and no material changes to the risk factors in the IPO prospectus.
- The company reported effective disclosure controls as of September 30, 2020 and no material changes in internal control over financial reporting during the period.
Most important facts to verify
- Whether the intended filing was a PLAYSTUDIOS 10-Q; this document identifies Acies Acquisition Corp. as the registrant.
- The relevant reporting period and whether subsequent IPO amounts should be considered separately from the September 30 balance sheet.
- Trust-account funds, outside-trust cash, deferred underwriting fees, and any later changes in financing or business-combination status.
- The stated combination deadline, redemption terms, warrant risks, and potential need for additional funding.