Spire Global, Inc. quarterly report, Q3 FY2020

Filing summary

Entity and period: This is NavSight Holdings, Inc.’s unaudited Form 10-Q for the quarter ended September 30, 2020—not a filing by Spire Global, Inc. NavSight was a newly formed blank-check company (SPAC) and reported no operating activity. Its stated acquisition focus was businesses serving U.S. government national security, intelligence, and defense missions.

Financial position and results

MetricReported amount or detail
RevenueNo operating revenue; the company said it would not generate operating revenue before a business combination.
Net loss$34,063 for the three months ended September 30, 2020; $35,063 from inception on May 29 through September 30, 2020. Quarterly operating costs were $34,263, partly offset by $200 of trust-account interest.
Cash and trust assets$1,764,222 in cash outside the trust and $230,000,200 in trust-account cash and marketable securities at September 30, 2020.
Cash flowInception-to-date operating cash provided: $4,323; investing cash used: $230.0 million; financing cash provided: $231.8 million.
Liabilities and equityTotal liabilities were $8,231,430, including an $8,050,000 deferred underwriting fee payable. No long-term debt was reported. Class A shares subject to possible redemption were presented as $218,532,990 of temporary equity; stockholders’ equity was $5,000,002.
Margins and liquidityMargins are not meaningful because there was no revenue. The filing did not provide a conventional operating-company liquidity or cash runway measure.

Material changes and transaction funding

NavSight completed its IPO on September 14, 2020, selling 23 million units at $10 each for $230 million gross proceeds, and separately sold $6.6 million of private placement warrants to its sponsor. It placed $230 million in the trust account. IPO-related transaction costs totaled $13,056,945, including the deferred underwriting fee. Results cover only the company’s formation and post-IPO period, so a comparable prior-year operating period is not available.

Outlook, risks, and contingencies

  • The company intended to use substantially all trust funds toward a business combination, but disclosed no completed or identified target transaction in this report. It had until September 14, 2022 to complete a combination or redeem public shares and liquidate.
  • Management said outside-trust cash was intended to fund target identification and transaction work. Sponsor or affiliate working-capital loans were possible but not committed; additional financing might be needed, including to complete a combination.
  • COVID-19 could hinder target identification, though the specific impact was not determinable. The filing also identified possible negative interest rates as a risk to trust value and public-share redemption proceeds.
  • Public shareholders could redeem shares in connection with a business combination. Warrants could expire worthless if no combination is completed. The filing reported no legal proceedings and no off-balance-sheet arrangements.
  • Management concluded disclosure controls were effective at a reasonable-assurance level and reported no material change in internal control over financial reporting during the quarter.

Important facts for investors to verify

  • Confirm entity identity: this filing is for NavSight Holdings, Inc. (NYSE symbols NSH, NSH.U, and NSH WS), not Spire Global, Inc.
  • Check subsequent filings for any business-combination announcement, transaction terms, financing, redemptions, or change in company name.
  • Verify current trust assets, redemption value, remaining deadline, and any changes to the deferred underwriting fee or sponsor funding arrangements.