Item 1. Financi
al Statements
AfterNext HealthTech Acquisition Corp.
Condensed Balance Sheet
(unaudited)
| September 30, 2022 | December 31, 2021 |
| Assets |
| Current assets: |
| Cash | $ | 937,075 | $ | 1,738,011 |
| Prepaid expenses | 477,106 | 754,204 |
| Total current assets | 1,414,181 | 2,492,215 |
| Investments held in Trust Account | 251,477,255 | 250,000,000 |
| Total assets | $ | 252,891,436 | $ | 252,492,215 |
| Liabilities and shareholders' deficit |
| Current liabilities: |
| Accrued professional fees and other expenses | $ | 211,105 | $ | 189,610 |
| Note payable to Sponsor | 2,000,000 | 2,000,000 |
| Derivative liabilities | 2,080,000 | 9,100,000 |
| Deferred underwriting compensation, current portion | 8,750,000 | — |
| Total current liabilities | 13,041,105 | 11,289,610 |
| Deferred underwriting compensation | — | 8,750,000 |
| Total liabilities | 13,041,105 | 20,039,610 |
| Commitments and contingencies |
| Class A ordinary shares subject to possible redemption; 25,000,000 shares at September 30, 2022 and December 31, 2021 at a redemption value of $ 10.06 and $ 10.00 per share, respectively | 251,477,255 | 250,000,000 |
| Shareholders' deficit: |
| Preferred shares, $ 0.0001 par value; 5,000,000 shares authorized, none issued or outstanding at September 30, 2022 and December 31, 2021 | — | — |
| Class A ordinary shares, $ 0.0001 par value; 500,000,000 shares authorized, none issued or outstanding (excluding 25,000,000 shares subject to possible redemption) at September 30, 2022 and December 31, 2021 | — | — |
| Class F ordinary shares, $ 0.0001 par value; 50,000,000 shares authorized, 6,250,000 shares issued and outstanding at September 30, 2022 and December 31, 2021 | 625 | 625 |
| Additional paid-in capital | — | — |
| Accumulated deficit | ( 11,627,549 | ) | ( 17,548,020 | ) |
| Total shareholders' deficit | ( 11,626,924 | ) | ( 17,547,395 | ) |
| Total liabilities and shareholders' deficit | $ | 252,891,436 | $ | 252,492,215 |

The accompanying notes are an integral part of these condensed financial statements.
2
AfterNext HealthTech Acquisition Corp.
Condensed Statement of Operations
(unaudited)
| For the Period |
| For the Three | For the Three | For the Nine | from April 12, 2021 |
| Months Ended | Months Ended | Months Ended | (inception) |
| September 30, 2022 | September 30, 2021 | September 30, 2022 | to September 30, 2021 |
| Revenue | $ | — | $ | — | $ | — | $ | — |
| Professional fees and other expenses | 337,656 | 973,961 | 1,099,529 | 1,017,735 |
| Change in fair value of derivatives | ( 390,000 | ) | ( 3,653,579 | ) | ( 7,020,000 | ) | ( 3,653,579 | ) |
| Income from operations | 52,344 | 2,679,618 | 5,920,471 | 2,635,844 |
| Interest income | 1,130,293 | — | 1,477,255 | — |
| Net income attributable to ordinary shares | $ | 1,182,637 | $ | 2,679,618 | $ | 7,397,726 | $ | 2,635,844 |
| Net income (loss) per ordinary share: |
| Class A ordinary shares - basic and diluted | $ | 0.04 | $ | 0.17 | $ | 0.24 | $ | 0.32 |
| Class F ordinary shares - basic and diluted | $ | ( 0.14 | ) | $ | 0.04 | $ | 0.00 | $ | 0.04 |
| Weighted average ordinary shares outstanding: |
| Class A ordinary shares - basic and diluted | 25,000,000 | 12,500,000 | 25,000,000 | 6,686,047 |
| Class F ordinary shares - basic and diluted | 6,250,000 | 12,836,277 | 6,250,000 | 13,726,381 |

The accompanying notes are an integral part of these condensed financial statements.
3
AfterNext HealthTech Acquisition Corp.
Condensed Statement of Changes in Shareholders’ Deficit
(unaudited)
| Preferred Shares | Class A Ordinary Shares | Class F Ordinary Shares | Additional | Accumulated | Shareholders' |
| Shares | Amount | Shares | Amount | Shares | Amount | Paid-In Capital | Deficit | Deficit |
| Balance at April 12, 2021 (inception) | — | $ | — | — | $ | — | — | $ | — | $ | — | $ | — | $ | — |
| Sales of Class F ordinary shares to Sponsor on May 3, 2021 at $ 0.001 per share | — | — | — | — | 20,000,000 | 2,000 | 23,000 | — | 25,000 |
| Net loss attributable to ordinary shares | — | — | — | — | — | — | — | ( 43,774 | ) | ( 43,774 | ) |
| Balance at June 30, 2021 | — | $ | — | — | $ | — | 20,000,000 | $ | 2,000 | $ | 23,000 | $ | ( 43,774 | ) | $ | ( 18,774 | ) |
| Class F shares forfeited by Sponsor onAugust 11, 2021 | — | — | — | — | ( 12,812,500 | ) | ( 1,281 | ) | 1,281 | — | — |
| Class F shares forfeited by Sponsor onAugust 25, 2021 | — | — | — | — | ( 937,500 | ) | ( 94 | ) | 94 | — | — |
| Adjustment to increase Class A ordinary shares subject to possible redemption to maximum redemption value as of September 30, 2021 | — | — | — | — | — | — | ( 24,375 | ) | ( 26,663,777 | ) | ( 26,688,152 | ) |
| Net income attributable to ordinary shares | — | — | — | — | — | — | — | 2,679,618 | 2,679,618 |
| Balance at September 30, 2021 | — | $ | — | — | $ | — | 6,250,000 | $ | 625 | $ | — | $ | ( 24,027,933 | ) | $ | ( 24,027,308 | ) |
| Preferred Shares | Class A Ordinary Shares | Class F Ordinary Shares | Additional | Accumulated | Shareholders' |
| Shares | Amount | Shares | Amount | Shares | Amount | Paid-In Capital | Deficit | Deficit |
| Balance at December 31, 2021 | — | $ | — | — | $ | — | 6,250,000 | $ | 625 | $ | — | $ | ( 17,548,020 | ) | $ | ( 17,547,395 | ) |
| Net income attributable to ordinary shares | — | — | — | — | — | — | — | 3,221,467 | 3,221,467 |
| Balance at March 31, 2022 | — | $ | — | — | $ | — | 6,250,000 | $ | 625 | $ | — | $ | ( 14,326,553 | ) | $ | ( 14,325,928 | ) |
| Adjustment to increase Class A ordinary shares subject to possible redemption to maximum redemption value as of June 30, 2022 | — | — | — | — | — | — | — | ( 346,962 | ) | ( 346,962 | ) |
| Net income attributable to ordinary shares | — | — | — | — | — | — | — | 2,993,622 | 2,993,622 |
| Balance at June 30, 2022 | — | $ | — | — | $ | — | 6,250,000 | $ | 625 | $ | — | $ | ( 11,679,893 | ) | $ | ( 11,679,268 | ) |
| Adjustment to increase Class A ordinary shares subject to possible redemption to maximum redemption value as of September 30, 2022 | — | — | — | — | — | — | — | ( 1,130,293 | ) | ( 1,130,293 | ) |
| Net income attributable to ordinary shares | — | — | — | — | — | — | — | 1,182,637 | 1,182,637 |
| Balance at September 30, 2022 | — | $ | — | — | $ | — | 6,250,000 | $ | 625 | $ | — | $ | ( 11,627,549 | ) | $ | ( 11,626,924 | ) |

The accompanying notes are an integral part of these condensed financial statements.
4
AfterNext HealthTech Acquisition Corp.
Condensed Statement of Cash Flows
(unaudited)
| For the Nine | For the Period from |
| Months Ended | April 12, 2021 (inception) |
| September 30, 2022 | to September 30, 2021 |
| Cash flows from operating activities: |
| Net income attributable to ordinary shares | $ | 7,397,726 | $ | 2,635,844 |
| Changes in operating assets and liabilities: |
| Prepaid expenses | 277,098 | ( 840,511 | ) |
| Change in fair value of derivative liabilities | ( 7,020,000 | ) | ( 3,653,579 | ) |
| Accrued expenses and formation costs | 21,495 | 2,208,833 |
| Interest on investments held in Trust Account | ( 1,477,255 | ) | — |
| Net cash provided by (used in) operating activities | ( 800,936 | ) | 350,587 |
| Cash flows from investing activities: |
| Proceeds deposited into Trust Account | — | ( 250,000,000 | ) |
| Net cash used in investing activities | — | ( 250,000,000 | ) |
| Cash flows from financing activities: |
| Proceeds from sale of Class F ordinary shares to Sponsor | — | 25,000 |
| Proceeds from sale of Units in initial public offering | — | 250,000,000 |
| Proceeds from sale of Private Placement Warrants to Sponsor | — | 7,000,000 |
| Proceeds of notes payable from Sponsor | — | 750,000 |
| Proceeds of underwriting discounts | — | ( 5,000,000 | ) |
| Proceeds of accrued offering costs | — | ( 424,781 | ) |
| Repayment of notes payable to Sponsor | — | ( 750,000 | ) |
| Net cash provided by financing activities | — | 251,600,219 |
| Net change in cash | ( 800,936 | ) | 1,950,806 |
| Cash at beginning of period | 1,738,011 | — |
| Cash at end of period | $ | 937,075 | $ | 1,950,806 |
| Supplemental disclosure of non-cash financing activities: |
| Accrued offering costs | $ | — | $ | 722,780 |
| Deferred financing costs | $ | — | $ | 8,750,000 |

The accompanying notes are an integral part of these condensed financial statements.
5
77AfterNext HealthTech Acquisition Corp.
Notes to Condensed Financial Statements
(unaudited)
1. Organization and Business OperationsOrganization and GeneralAfterNext HealthTech Acquisition Corp. (the “Company”) was incorporated as a Cayman Islands exempted company on April 12, 2021 . The Company was formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).The Company was formed on April 12, 2021 and as of that date had not commenced operations. On May 3, 2021, the Company was funded with $ 25,000 for which it issued Founder Shares (as defined below). All activity for the period from April 12, 2021 (“Inception”) through September 30, 2022 relates to the Company’s formation, its initial public offering (“Public Offering”), which closed on August 16, 2021 (the “Close Date”), and the identification and evaluation of potential acquisition targets for a Business Combination. The Company will not generate operating revenues prior to the completion of the Business Combination and will generate non-operating income in the form of interest income on Permitted Investments (as defined below) from the proceeds derived from the Public Offering.Going ConcernIf the Company does not complete an initial Business Combination within 24 months from the Close Date, the Company will (i) cease all operations except for the purposes of winding up, (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem all of the Class A ordinary shares issued in the Public Offering at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account with Continental Stock Transfer and Trust Company acting as trustee (the “Trust Account”), including interest, net of taxes (less up to $ 100,000 of such net interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish the shareholder rights of owners of Class A ordinary shares (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution, including Trust Account assets, will be less than the initial public offering price in the Public Offering. This mandatory liquidation and subsequent dissolution requirement raises substantial doubt about the Company’s ability to continue as a going concern.The accompanying condensed financial statements have been prepared on a going concern basis and do not include any adjustments that might arise as a result of uncertainties about the Company’s ability to continue as a going concern.SponsorThe Company’s sponsor is AfterNext HealthTech Sponsor, Series LLC, a Delaware series limited liability company (the “Sponsor”). On May 3, 2021, the Sponsor purchased an aggregate of 20,000,000 Class F ordinary shares (“Founder Shares”) for an aggregate purchase price of $ 25,000 , or approximately $ 0.001 per share. Prior to the Sponsor’s initial investment in the Company of $ 25,000 , the Company had no assets. The purchase price per share of the Founder Shares was determined by dividing the amount of cash contributed to the Company by the Sponsor by the number of Founder Shares issued by the Company.Public OfferingThe Company intends to finance a Business Combination with proceeds from its Public Offering of units (“Units”) at a price of $ 10.00 per Unit, each consisting of one Class A ordinary share, $ 0.0001 par value, of the Company (“Class A ordinary shares”) and one third of one redeemable warrant, and proceeds from the sale of private placement warrants at a price of $ 1.50 per warrant (“Private Placement Warrants”). 6 The Trust AccountGross proceeds of $ 250,000,000 and $ 7,000,000 from the Public Offering and the sale of the Private Placement Warrants, respectively, less underwriting discounts of $ 5,000,000 ; and funds of $ 2,000,000 designated to pay the Company’s accrued formation and offering costs, ongoing administrative and acquisition search costs, plus repay notes payable of $ 750,000 to the Sponsor at the Close Date, were placed in the Trust Account at the Close Date. Starting January 2022, the funds in the Trust Account may be invested only in specified U.S. government treasury bills with a maturity of 180 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations (collectively “Permitted Investments”).Funds will remain in the Trust Account except for the withdrawal of interest earned on the funds that may be released to the Company to pay taxes and up to $ 100,000 of any dissolution expenses. The proceeds from the Public Offering and the sale of the Private Placement Warrants will not be released from the Trust Account until the earliest of (i) the completion of the Business Combination, (ii) the redemption of any Public Shares properly submitted in connection with a shareholder vote to amend the amended and restated memorandum and articles of association to modify the substance or timing of the Company’s obligation to redeem 100 % of the Public Shares if the Company does not complete the Business Combination within 24 months from the close of the Public Offering and (iii) the redemption of all of the Company’s Public Shares if it is unable to complete the Business Combination within 24 months from the close of the Public Offering, subject to applicable law.The remaining proceeds outside the Trust Account may be used to pay business, legal and accounting due diligence on prospective acquisitions, listing fees and continuing general and administrative expenses.Business CombinationThe Company’s management has broad discretion with respect to the specific application of the net proceeds of the Public Offering, although substantially all of the net proceeds of the Public Offering are intended to be generally applied toward consummating a Business Combination with (or acquisition of) a target business. Although the Company is not limited to, and may pursue targets in, any industry or geography, we intend to focus on industries that complement the Sponsor’s and management team’s background in technology, healthcare and related areas. As used herein, the target business must be with one or more target businesses that together have an aggregate fair market value equal to at least 80 % of the balance in the Trust Account (less any deferred underwriting commissions and taxes payable on interest earned on the Trust Account) at the time of the Company signing a definitive agreement.After signing a definitive agreement for a Business Combination, the Company will provide the holders of the public shares (the “Public Shareholders”) with the opportunity to redeem all or a portion of their Class A ordinary shares either (i) in connection with a shareholder meeting to approve the Business Combination or (ii) by means of a tender offer. Each Public Shareholder may elect to redeem their shares irrespective of whether they vote for or against the Business Combination at a per share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination including interest earned on the funds held in the Trust Account and not previously released to the Company to pay taxes, divided by the number of then outstanding Public Shares, subject to the limitations described herein. The amount in the Trust Account is initially anticipated to be approximately $ 10.00 per Public Share. The per-share amount the Company will distribute to investors who properly redeem their shares will not be reduced by any deferred underwriting commissions payable to underwriters. The decision as to whether the Company will seek shareholder approval of the Business Combination or will allow shareholders to sell their shares in a tender offer will be made by the Company, solely in its discretion, and will be based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require the Company to seek shareholder approval under applicable law or stock exchange listing requirements. If the Company seeks shareholder approval, it will complete its Business Combination only if a majority of the outstanding Class A ordinary shares voted are voted in favor of the Business Combination. However, in no event will the Company redeem its Public Shares in an amount that would cause its net tangible assets to be less than $ 5,000,001 , after payment of the deferred underwriting commission. In such an instance, the Company would not proceed with the redemption of its Public Shares and the related Business Combination, and instead may search for an alternate Business Combination. The Company has 24 months from the Close Date to complete its Business Combination. If the Company does not complete a Business Combination within this period, it shall (i) cease all operations except for the purposes 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 in the Trust Account and not previously released to the Company to pay its 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 Shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. The initial shareholders and the Company’s officers and directors have entered into a letter agreement with the 7 Company, pursuant to which they have waived their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if the Company fails to complete the Business Combination within 24 months from the closing of the Public Offering. However, if the initial shareholders acquire Public Shares after the Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete the Business Combination within the allotted 24-month time period.The underwriters have agreed to waive their rights to any deferred underwriting commission held in the Trust Account in the event the Company does not complete the Business Combination and those amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Company’s Public Shares.If the Company fails to complete the Business Combination, the redemption of the Company’s Public Shares will reduce the book value of the shares held by the initial shareholders, who will be the only remaining shareholders after such redemptions.If the Company holds a shareholder vote or there is a tender offer for shares in connection with a Business Combination, a Public Shareholder will have the right to redeem its shares for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay taxes. As a result, such ordinary shares are recorded at their redemption amount and classified as temporary equity in accordance with ASC 480, “Distinguishing Liabilities from Equity.”
| September 30, 2022 | December 31, 2021 |
| Implied volatility | 7.80 % | 12.00 % |
| Risk-free interest rate | 3.94 % | 1.30 % |
| Instrument exercise price for one Class A ordinary share | $ 11.50 | $ 11.50 |
| Expected term | 5.9 years | 5.6 years |
| For the Three Months EndedSeptember 30, 2022 | For the Three Months EndedSeptember 30, 2021 |
| Class A | Class F | Class A | Class F |
| Basic and diluted net income (loss) per ordinary share: |
| Numerator: |
| Allocation of net income | $ | 946,110 | $ | 236,527 | $ | 2,143,694 | $ | 535,924 |
| Accretion of Class A ordinary shares subject to possible redemption | — | ( 1,130,293 | ) | — | — |
| $ | 946,110 | $ | ( 893,766 | ) | $ | 2,143,694 | $ | 535,924 |
| Denominator: |
| Weighted average ordinary shares outstanding: | 25,000,000 | 6,250,000 | 12,500,000 | 12,836,277 |
| Basic and diluted net income (loss) per ordinary share | $ | 0.04 | $ | ( 0.14 | ) | $ | 0.17 | $ | 0.04 |
| For the Nine Months EndedSeptember 30, 2022 | For the Period from April 12, 2021 (inception)to September 30, 2021 |
| Class A | Class F | Class A | Class F |
| Basic and diluted net income per ordinary share: |
| Numerator: |
| Allocation of net income | $ | 5,918,181 | $ | 1,479,545 | $ | 2,108,675 | $ | 527,169 |
| Accretion of Class A ordinary shares subject to possible redemption | — | ( 1,477,255 | ) | — | — |
| $ | 5,918,181 | $ | 2,290 | $ | 2,108,675 | $ | 527,169 |
| Denominator: |
| Weighted average ordinary shares outstanding: | 25,000,000 | 6,250,000 | 6,686,047 | 13,726,381 |
| Basic and diluted net income per ordinary share | $ | 0.24 | $ | 0.00 | $ | 0.32 | $ | 0.04 |

3. Public Offering The registration statement for the Company’s Public Offering was declared effective by the United States Securities and Exchange Commission on August 11, 2021. The Sponsor purchased an aggregate of 4,666,667 Private Placement Warrants at a purchase price of $ 1.50 per warrant, or $ 7,000,000 in the aggregate, in a private placement on the Close Date (the “Private Placement.”)In its Public Offering, the Company sold 25,000,000 Units at a price of $ 10.00 per Unit.At the Close Date, $ 250,000,000 was deposited in the Trust Account, representing total proceeds of $ 257,000,000 from the Public Offering and the Private Placement, net of underwriting discounts of $ 5,000,000 and funds designated for operational use of $ 2,000,000 . 11 The Company paid an underwriting discount of 2.00 % of the gross proceeds of the Public Offering, or $ 5,000,000 , to the underwriters at the Close Date, with an additional fee (the “Deferred Discount”) of 3.50 % of the gross proceeds of the Public Offering, or $ 8,750,000 , payable upon the Company’s completion of a Business Combination. The Deferred Discount will become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes a Business Combination. The underwriters are not entitled to receive any of the interest earned on Trust Account funds that would be used to pay the Deferred Discount.
4. Related Party TransactionsFounder Shares On May 3, 2021, the Sponsor purchased 20,000,000 Founder Shares for an aggregate purchase price of $ 25,000 , or approximately $ 0.001 per share. The purchase price of the Founder Shares was determined by dividing the amount of cash contributed to the Company by the number of Founder Shares issued. On August 6, 2021, the Sponsor transferred 40,000 Founder Shares to each of the Company’s independent directors (together, with the Sponsor, the “Initial Shareholders”) at a purchase price of approximately $ 0.004 per share. On August 11, 2021, the Sponsor forfeited 12,812,500 Founder Shares for no consideration. On September 25, 2021, on the expiration of the underwriters’ over-allotment option, the Sponsor forfeited 937,500 Founder Shares for no consideration.As of September 30, 2022, there were 6,250,000 Founder Shares outstanding.The Founder Shares are identical to the Class A ordinary shares included in the Units sold in the Public Offering except that:•only holders of the Founder Shares have the right to vote on the election of directors prior to the Business Combination;•the Founder Shares are subject to certain transfer restrictions, as described in more detail below;•the initial shareholders and the Company’s officers and directors entered into a letter agreement with the Company, pursuant to which they have agreed (i) to waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of the Business Combination and (ii) to waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if the Company fails to complete the Business Combination within 24 months from the Public Offering. If the Company submits the Business Combination to the Public Shareholders for a vote, the initial shareholders have agreed, pursuant to such letter agreement, to vote their Founder Shares and any Public Shares purchased during or after the Public Offering in favor of the Business Combination; and•the Founder Shares are automatically convertible into Class A ordinary shares on the first business day following the completion of the Business Combination on a one-for-one basis, subject to adjustment pursuant to certain anti-dilution rights.Additionally, the Sponsor and initial shareholders agreed not to transfer, assign or sell any of its Founder Shares until the earlier of (i) one year after the completion of the Business Combination or (ii) subsequent to the Business Combination, if the last sale price of the Class A ordinary shares equals or exceeds $ 12.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination or (iii) the date following the completion of the Business Combination on which the Company completes a liquidation, merger, share exchange, reorganization or other similar transaction that results in all of the Company’s Public Shareholders having the right to exchange their Class A ordinary shares for cash, securities or other property (the “Lock Up Period”).Private Placement WarrantsOn the Close Date, the Sponsor purchased from the Company 4,666,667 Private Placement Warrants at a purchase price of $ 1.50 per warrant, or $ 7,000,000 in the aggregate. Each Private Placement Warrant entitles the holder to purchase one Class A ordinary share at $ 11.50 per share, subject to adjustment. A portion of the purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account. The Private Placement Warrants will not be redeemable by the Company so long as they are held by the Sponsor or its permitted transferees. If the Private Placement Warrants are held by holders other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by the holders on the same basis as the warrants included in the Units being sold in the Public Offering. The Sponsor, or its permitted transferees, will have the option to exercise the Private Placement Warrants on a cashless basis. The Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of the Business Combination. 12 If the Company does not complete the Business Combination within 24 months from the closing of the Public Offering, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Company’s Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless.Registration RightsHolders of the Founder Shares and Private Placement Warrants are entitled to registration rights pursuant to a registration rights agreement. The holders of these securities are entitled to make up to three demands that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to other registration statements filed by the Company subsequent to its completion of the Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable Lock Up Period. The Company will bear the expenses incurred in connection with the filing of any such registration statements.IndemnityThe Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a vendor (other than the Company’s independent auditors) for services rendered or products sold to the Company, or a prospective target business with which the Company discussed entering into a transaction agreement, reduces the amount of funds in the Trust Account to below (i) $ 10.00 per Public Share or (ii) such lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the trust assets, in each case net of the interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriters of the Public Offering against certain liabilities, including liabilities under the Securities Act. Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third party claims. The Company has not independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and believes that the Sponsor’s only assets are securities of the Company and, therefore, the Sponsor may not be able to satisfy those obligations. The Company has not asked the Sponsor to reserve for such eventuality as the Company believes the likelihood of the Sponsor having to indemnify the Trust Account is limited because the Company will endeavor to have all vendors and prospective target businesses as well as other entities execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.Independent Financial Advisory ServicesIn connection with the Public Offering, TPG Capital BD, LLC, an affiliate of the Company, acted as the Company’s independent financial advisor as defined under FINRA Rule 5110(j)(9), to provide independent financial consulting services, consisting of a review of deal structure and terms and related structuring advice in connection with the Public Offering, for which it received a fee of $ 750,000 , which was paid on the Close Date. TPG Capital BD, LLC was engaged to represent the Company’s interests only and is independent of the underwriters. TPG Capital BD, LLC did not act as an underwriter in the Public Offering and did not sell or offer to sell any securities in the Public Offering, nor did it identify or solicit potential investors in the Public Offering.Related Party Note PayableOn August 6, 2021 the Company’s Sponsor loaned the Company $ 750,000 under an unsecured promissory note. The funds were used to pay up front expenses associated with the Public Offering. The note was non-interest bearing and was repaid in full to the Sponsor at the Close Date.On November 5, 2021 the Company’s Sponsor loaned the Company $ 2,000,000 under the November 2, 2021 unsecured promissory note discussed below under “Commitment Letter”. The note is non-interest bearing. The funds are intended for operating costs and expenses associated with the search for a Business Combination.Administrative Services AgreementOn the Close Date, the Company entered into an agreement to pay $ 50,000 a month for office space, administrative and support services to an affiliate of the Sponsor, and will terminate the agreement upon the earlier of a Business Combination or the liquidation of the Company. For the three and nine months ended September 30, 2022, the Company incurred expenses of $ 150,000 and $ 450,000 , respectively under this agreement. 13 Commitment LetterEffective August 19, 2021, the Sponsor entered into a commitment letter in which it committed to lending funds, if needed, to the Company to timely satisfy any of the Company’s financial obligations or debt service requirements through October 31, 2023 , and further to defer any required repayment of existing loans, or any loans made during the period from the Close Date to October 31, 2023, until after October 31, 2023.Effective November 2, 2021, the Company entered into a promissory note in which the Sponsor committed to lending up to $ 7,000,000 , if needed, to the Company to timely satisfy any of the Company’s financial obligations or debt service requirements through August 16, 2023 , and further to defer any required repayment of existing loans, or any loans made during the period from the Close Date to August 16, 2023, until the earlier of the consummation of a Business Combination or August 16, 2023.
5. Investments Held in Trust AccountGross proceeds of $ 250,000,000 and $ 7,000,000 from the Public Offering and the sale of the Private Placement Warrants, respectively, less underwriting discounts of $ 5,000,000 ; and funds of $ 2,000,000 designated to pay the Company’s accrued formation and offering costs, ongoing administrative and acquisition search costs, plus repay notes payable of $ 750,000 to the Sponsor at the Close Date were placed in the Trust Account at the Close Date.At September 30, 2022 and December 31, 2021, the balance of funds held in the Trust Account was $ 251,477,255 and $ 250,000,000 . respectively.
6. Deferred Underwriting CompensationThe Company is committed to pay the Deferred Discount of 3.50 % of the gross proceeds of the Public Offering, or $ 8,750,000 , to the underwriters upon the Company’s completion of a Business Combination. The underwriters are not entitled to receive any of the interest earned on Trust Account funds that would be used to pay the Deferred Discount, and no Deferred Discount is payable to the underwriters if a Business Combination is not completed within 24 months after the Close Date.
7. Shareholder’s DeficitClass A Ordinary SharesThe Company is currently authorized to issue 500,000,000 Class A ordinary shares. Depending on the terms of a potential Business Combination, the Company may be required to increase the number of authorized Class A ordinary shares at the same time as its shareholders vote on the Business Combination to the extent the Company seeks shareholder approval in connection with its Business Combination. Holders of Class A ordinary shares are entitled to one vote for each share with the exception that only holders of Class F ordinary shares have the right to vote on the election of directors prior to the completion of a Business Combination, subject to adjustment as provided in the Company’s amended and restated memorandum and articles of association. At each of September 30, 2022 and December 31, 2021, there were 25,000,000 Class A ordinary shares issued and outstanding, of which 25,000,000 shares were subject to possible redemption and were classified at their redemption value outside of shareholders’ deficit at the balance sheet.Founder SharesThe Company is currently authorized to issue 50,000,000 Class F ordinary shares. At each of September 30, 2022 and December 31, 2021, there were 6,250,000 Class F ordinary shares (Founder Shares) issued and outstandingPreferred SharesThe Company is authorized to issue 5,000,000 preferred shares. The Company’s board of directors is authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. The board of directors is able to, without shareholder approval, issue preferred shares with voting and other rights that could adversely affect the voting power and other rights of the holders of the ordinary shares and could have anti-takeover effects. At each of September 30, 2022 and December 31, 2021, there were no preferred shares issued or outstanding. 14 Dividend PolicyThe Company has not paid and does no t intend to pay any cash dividends on its ordinary shares prior to the completion of the Business Combination. Additionally, the Company’s board of directors does not contemplate or anticipate declaring any stock dividends in the foreseeable future.
| As of September 30, 2022 |
| Level 1 | Level 2 | Level 3 | Total |
| Liabilities: |
| Warrants | $ | 1,333,333 | $ | — | $ | — | $ | 1,333,333 |
| Private Placement Warrants | — | 746,667 | — | 746,667 |
| Total | $ | 1,333,333 | $ | 746,667 | $ | — | $ | 2,080,000 |
| As of December 31, 2021 |
| Level 1 | Level 2 | Level 3 | Total |
| Liabilities: |
| Warrants | $ | 5,833,333 | $ | — | $ | — | $ | 5,833,333 |
| Private Placement Warrants | — | 3,266,667 | — | 3,266,667 |
| Total | $ | 5,833,333 | $ | 3,266,667 | $ | — | $ | 9,100,000 |
| Warrants | Private PlacementWarrants | Total |
| Liabilities: |
| Fair value when issued (Close Date) | $ | 12,500,000 | $ | 7,000,000 | $ | 19,500,000 |
| Change in fair value | ( 2,338,906 | ) | ( 1,314,673 | ) | ( 3,653,579 | ) |
| Fair value at September 30, 2021 | $ | 10,161,094 | $ | 5,685,327 | $ | 15,846,421 |
| Warrants | Private PlacementWarrants | Total |
| Liabilities: |
| Fair value at June 30, 2022 | $ | 1,583,333 | $ | 886,667 | $ | 2,470,000 |
| Change in fair value | ( 250,000 | ) | ( 140,000 | ) | ( 390,000 | ) |
| Fair value at September 30, 2022 | $ | 1,333,333 | $ | 746,667 | $ | 2,080,000 |
| Liabilities: |
| Fair value at December 31, 2021 | $ | 5,833,333 | $ | 3,266,667 | $ | 9,100,000 |
| Change in fair value | ( 4,500,000 | ) | ( 2,520,000 | ) | ( 7,020,000 | ) |
| Fair value at September 30, 2022 | $ | 1,333,333 | $ | 746,667 | $ | 2,080,000 |
| Warrants | Private PlacementWarrants | Total |
| Liabilities: |
| Fair value when issued (Close Date) | $ | 12,500,000 | $ | 7,000,000 | $ | 19,500,000 |
| Change in fair value | ( 2,338,906 | ) | ( 1,314,673 | ) | ( 3,653,579 | ) |
| Fair value at September 30, 2021 | $ | 10,161,094 | $ | 5,685,327 | $ | 15,846,421 |

9. Subsequent EventsManagement has performed an evaluation of subsequent events through the date of issuance of the condensed financial statements, noting no subsequent events which require adjustment or disclosure.
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Item 2. Management’s Discussion and Analysis of
Financial Condition and Results of Operations.
References to the “Company,” “our,” “us” or “we” refer to AfterNext HealthTech 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 financial statements and the notes thereto contained elsewhere in this Quarterly Report on Form 10-Q. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.
Special Note Regarding Forward-Looking Statements
All statements other than statements of historical fact included in this Quarterly Report on Form 10-Q including, without limitation, statements under this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. When used in this Quarterly Report on Form 10-Q, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or the Company’s management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of management, as well as assumptions made by, and information currently available to, the Company’s management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the United States Securities and Exchange Commission (“SEC”). All subsequent written or oral forward-looking statements attributable to us or persons acting on the Company’s behalf are qualified in their entirety by this paragraph.
Overview
We are a blank check company incorporated as a Cayman Islands exempted company and formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”). We have reviewed, and continue to review, a number of opportunities to enter into a Business Combination with an operating business, but we are not able to determine at this time whether we will complete a Business Combination with any of the target businesses that we have reviewed or with any other target business.
We intend to consummate a Business Combination using cash from the proceeds of our initial public offering (the “Public Offering”) that closed on August 16, 2021 (the “Close Date”) and the private placement of warrants to purchase our Class A ordinary shares (“Private Placement Warrants”) that occurred at the Close Date, and from additional issuances of, if any, our capital stock and our debt, or a combination of cash, stock and debt.
At September 30, 2022, we held cash of $937,075 and current liabilities of $13,041,105. We expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete a Business Combination will be successful.
Going Concern
If we do not complete an initial Business Combination within 24 months from the Close Date, we will (i) cease all operations except for the purposes of winding up, (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem all of the Class A ordinary shares issued in the Public Offering at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account with Continental Stock Transfer and Trust Company acting as trustee (the “Trust Account”), including interest, net of taxes (less up to $100,000 of such net interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish the shareholder rights of owners of Class A ordinary shares (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the board of directors, dissolve and liquidate, subject in each case to our obligations under Cayman Islands law to provide for claims of creditors and the requirements of other applicable law. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution, including Trust Account assets, will be less than the initial public offering price in the Public Offering. This mandatory liquidation and subsequent dissolution requirement raises substantial doubt about our ability to continue as a going concern.
The condensed financial statements presented in this Quarterly Report on Form 10-Q have been prepared on a going concern basis and do not include any adjustments that might arise as a result of uncertainties about our ability to continue as a going concern.
Results of Operations
For the three months ended September 30, 2022 and 2021, we earned net income of $1,182,637 and $2,679,618, respectively. For the three months ended September 30, 2022 net income consisted primarily of gains from changes in the fair value of derivative liabilities
17
of $390,000 and interest income of $1,130,293, offset by professional expenses of $337,656. For the three months ended September 30, 2021 net income consisted primarily of gains from changes in the fair value of derivative liabilities of $3,653,579, offset by professional expenses of $973,961 associated with our formation and preparation for our Public Offering.
For the nine months ended September 30, 2022 and the period from Inception to September 30, 2021, we earned net income of $7,397,726 and $2,635,844, respectively. For the nine months ended September 30, 2022 net income consisted primarily of gains from changes in the fair value of derivative liabilities of $7,020,000 and interest income of $1,477,255, offset by professional expenses of $1,099,529. For the period from Inception to September 30, 2021 net income consisted primarily of gains from changes in the fair value of derivative liabilities of $3,653,579, offset by professional expenses of $1,017,735 associated with our formation and preparation for our Public Offering.
We anticipate that changes to the fair value of our derivative instruments, consisting of certain of our warrants exercisable for our Class A ordinary shares, may fluctuate significantly in future quarters, but these fluctuations do not impact our cash flows. Our business activities since our Public Offering have consisted solely of identifying and evaluating prospective acquisition targets for a Business Combination.
Liquidity and Capital Resources
Prior to the closing of the Public Offering, our only sources of liquidity were an initial sale of Class F ordinary shares (the “Founder Shares”) to our sponsor, AfterNext HealthTech Sponsor, Series LLC, a Delaware series limited liability company (the “Sponsor”), for an aggregate purchase price of $25,000, and the proceeds of a promissory note (the “Note”) from the Sponsor, in the amount of $750,000.
The registration statement for our Public Offering was declared effective by the SEC on August 11, 2021. In our Public Offering, we sold 25,000,000 Units at a price of $10.00 per Unit, generating proceeds of $250,000,000. Simultaneously with the effectiveness of our Public Offering, we closed the private placement of an aggregate of 4,666,667 warrants to purchase our Class A ordinary shares (the “Private Placement Warrants”), at a price of $1.50 per warrant, to the Sponsor, generating proceeds of $7,000,000. On the Close Date, we placed $250,000,000 of proceeds (including $8,750,000 of deferred underwriting discount) from the Public Offering and the sale of the Private Placement Warrants into a non-interest bearing U.S. based trust account at J.P. Morgan Chase, N.A, with Continental Stock Transfer & Trust Company acting as trustee (the “Trust Account”) and held the remaining portion (net of offering expenses, other than underwriting discounts, paid upon the consummation of the Public Offering) of such proceeds outside the Trust Account.
At September 30, 2022, we had cash of $937,035 and negative working capital of $9,546,924, excluding derivative liabilities.
On April 6, 2022 , the funds in the Trust Account were invested in specified U.S. government treasury bills with a maturity of 180 days or less and in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations.
On November 5, 2021, we borrowed $2,000,000 under an unsecured promissory note from our Sponsor to fund our operating costs and expenses associated with the search for a Business Combination. The note is non-interest bearing. We are able to borrow up to an additional $5,000,000 on the unsecured promissory note.
We do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business prior to our Business Combination aside from temporary loans from our Sponsor. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our Business Combination. Moreover, we may need to obtain additional financing either to complete our Business Combination or because we become obligated to redeem a significant number of our Class A ordinary shares at the completion of our Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination (including from our affiliates or affiliates of our Sponsor).
Off-Balance Sheet Financing Arrangements
We have no obligations, assets or liabilities which would be considered off-balance sheet arrangements. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements.
We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or entered into any non-financial agreements involving assets.
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Contractual Obligations
At September 30, 2022, we did not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities. On the Close Date, we entered into an administrative support agreement pursuant to which we have agreed to pay an affiliate of the Sponsor a total of $50,000 per month for office space, administrative and support services. Upon the earlier of the completion of the Business Combination or the Company’s liquidation, we will cease paying these monthly fees.
Critical Accounting Policies
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following as our critical accounting policies:
Offering Costs
We comply with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A “Expenses of Offering”. We incurred offering costs allocated to the Class A ordinary shares contained in the Units sold in connection with our Public Offering primarily consisting of underwriter discounts, accounting and legal services, securities registration expenses and exchange listing fees. Offering costs allocated to the issuance and sale of the Class A ordinary shares contained in the Units of $14,188,153 were charged to temporary equity, and offering costs of $709,408 allocated to the issuance and sale of the warrants included in the Units were expensed.
Derivative Liabilities
We evaluated our Warrants and Private Placement Warrants (collectively, “Warrant Securities”) in accordance with ASC 815-40, “Derivatives and Hedging — Contracts in Entity’s Own Equity”, and concluded that the Warrant Securities could not be accounted for as components of equity. As the Warrant Securities meet the definition of a derivative in accordance with ASC 815, the Warrant Securities are recorded as derivative liabilities on the Balance Sheet and measured at fair value at inception (the Close Date) and remeasured at each reporting date in accordance with ASC 820, “Fair Value Measurement”, with changes in fair value recognized in the Statement of Operations in the period of change.
Redeemable Ordinary Shares
All of the 25,000,000 Class A ordinary shares sold as part of the Units in the Public Offering contain a redemption feature which allows for the redemption of such public shares in connection with our liquidation if there is a shareholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to our second amended and restated certificate of incorporation. In accordance with SEC and its staff’s guidance on redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within our control require common stock subject to redemption to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of all of the entity’s equity instruments, are excluded from the provisions of ASC 480.
We recognize changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid-in capital and accumulated deficit.
Net Income Per Ordinary Share
We comply with accounting and disclosure requirements of Financial Accounting Standards Board (“FASB”) ASC Topic 260, “Earnings Per Share”. Net income per ordinary share is computed by dividing net income applicable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period, plus to the extent dilutive the incremental number of shares of ordinary shares to settle warrants, as calculated using the treasury stock method. As of September 30, 2022, we had outstanding Warrants and Private Placement Warrants to purchase up to 13,000,000 Class A ordinary shares. The weighted average of these shares was excluded from the calculation of diluted net income per ordinary share since the exercise of these instruments is contingent upon the occurrence of future events. As a result, diluted net income per ordinary share is the same as basic net loss per ordinary share.
We have two classes of ordinary shares, Class A ordinary shares and Class F ordinary shares. Earnings and losses are shared pro rata between the two classes of ordinary shares.
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Recent Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) (“ASU 2020-06”). ASU 2020 06 simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The ASU is part of the FASB’s simplification initiative, which aims to reduce unnecessary complexity in U.S. GAAP. The ASU’s amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. The Company's adoption of ASU 2020-06 on January 1, 2022 did not have a material impact on the Company's condensed financial statements.
Item 3. Quantitative and Qualitati
ve Disclosures About Market Risk.
To date, our efforts have been limited to organizational activities, activities relating to the Public Offering and the identification and evaluation of prospective acquisition targets for a Business Combination. We have neither engaged in any operations nor generated any revenues. As the net proceeds from our Public Offering and the sale of the Private Placement Warrants held in the Trust Account have not been invested, we do not believe we have any material exposure to interest rate risk.
We have not engaged in any hedging activities since our Inception. We do not expect to engage in any hedging activities with respect to the market risk to which we are exposed.
Item 4. Controls
and Procedures.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure.
As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Principal Executive Officer and Principal Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2022. Based upon their evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective.
During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
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PART II - OTHER INFORMATION
Item 1. Legal
Proceedings.
None.
Item 1A. Ri
sk Factors.
Factors that could cause our actual results to differ materially from those in this report are any of the risks disclosed in our Annual Report on Form 10-K, which was filed with the SEC on February 9, 2022. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.
The information presented below updates, and should be read in conjunction with, the risk factors disclosed in our Annual Report on Form 10-K, which was filed with the SEC on February 9, 2022.
Changes in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our business, including our ability to negotiate and complete our Business Combination and results of operations.
We are subject to laws and regulations enacted by national, regional and local governments. In particular, we are required to comply with certain SEC and other legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly. Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material adverse effect on the business, investments and results of our operations. In addition, a failure to comply with applicable laws or regulations, as interpreted and applied, could have a material adverse effect on our business, including our ability to negotiate and complete our Business Combination and results of operations.
On March 30, 2022, the SEC issued proposed rules (the “2022 Proposed Rules”) relating to, among other items, enhancing disclosures in business combination transactions involving SPACs and private operating companies; amending the financial statement requirements applicable to transactions involving shell companies; effectively limiting the use of projections in SEC filings in connection with proposed business combination transactions; increasing the potential liability of certain participants in proposed business combination transactions; and the extent to which SPACs could become subject to regulation under the Investment Company Act. The 2022 Proposed Rules, if adopted, whether in the form proposed or in revised form, and certain positions and legal conclusions expressed by the SEC in connection with the 2022 Proposed Rules may materially adversely affect our ability to negotiate and complete our Business Combination and may increase the costs and time related thereto.
If we are deemed to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our activities may be restricted, which may make it difficult for us to complete our Business Combination.
If we are deemed to be an investment company under the Investment Company Act, our activities may be restricted, including:
•restrictions on the nature of our investments,
•restrictions on the issuance of securities, and
•restrictions on the enforceability of agreements entered into by us, each of which may make it difficult for us to complete our Business Combination.
In addition, we may have imposed upon us burdensome requirements, including:
•registration as an investment company with the SEC (which may be impractical and would require significant changes in, among other things, our capital structure);
•adoption of a specific form of corporate structure; and
•reporting, record keeping, voting, proxy and disclosure requirements and other rules and regulations.
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In order not to be regulated as an investment company under the Investment Company Act, unless we can qualify for an exclusion, we must ensure that we are engaged primarily in a business other than investing, reinvesting or trading of securities and that our activities do not include investing, reinvesting, owning, holding or trading “investment securities” constituting more than 40% of our total assets (exclusive of U.S. government securities and cash items) on an unconsolidated basis. Our business is to identify and complete a Business Combination and thereafter to operate the post-transaction business or assets for the long term. We do not plan to buy businesses or assets with a view to resale or profit from their resale. We do not plan to buy unrelated businesses or assets or to be a passive investor.
The 2022 Proposed Rule under the Investment Company Act would provide a safe harbor for SPACs from the definition of “investment company” under Section 3(a)(1)(A) of the Investment Company Act, provided that they satisfy certain conditions that limit a SPAC’s duration, asset composition, business purpose and activities. The duration component of the proposed safe harbor rule would require a SPAC to file a Current Report on Form 8-K with the SEC announcing that it has entered into an agreement with the target company (or companies) to engage in an initial business combination no later than 18 months after the effective date of the SPAC’s registration statement for its initial public offering. The SPAC would then be required to complete its initial business combination no later than 24 months after the effective date of its registration statement for its initial public offering. Although the 2022 Proposed Rules, including the proposed safe harbor rule, have not yet been adopted, there is substantial uncertainty regarding the applicability of the Investment Company Act to a SPAC that does not complete its initial business combination within the proposed time frame set forth in the proposed safe harbor rule or otherwise falls outside of the other provisions of the safe harbor.
We do not believe that our principal activities currently make us an investment company subject to the Investment Company Act. The proceeds held in the Trust Account have been invested by the trustee only in U.S. government treasury bills with a maturity of 180 days or less or in money market funds investing solely in United States Treasuries and meeting certain conditions under Rule 2a-7 under the Investment Company Act. Because the proceeds have been held in a non-interest-bearing account until recently, we believe we are not an investment company. Although the 2022 Proposed Rules, including the proposed safe harbor rule, have not yet been adopted, and one or more elements of the 2022 Proposed Rules, including the proposed safe harbor rule, may not be adopted or may be adopted in a revised form, we do not have an agreement in place with a target for a Business Combination. Accordingly, we may not be able to complete our Business Combination within the 24-month period. If the 2022 Proposed Rules are adopted as proposed or in similar form, therefore, we may fall outside of the proposed safe harbor and the SEC could deem us to be subject to regulation as an investment company for purposes of the Investment Company Act. Nevertheless, we intend to comply with the terms of the proposed safe harbor rule, including the duration component of that rule. As a result, we do not believe that the SEC would deem us to be an investment company for purposes of the Investment Company Act. However, if we were deemed to be subject to the Investment Company Act, compliance with these additional regulatory burdens would require additional expenses for which we have not allotted funds and may hinder our ability to consummate a Business Combination. If we are unable to complete our Business Combination within the required period, 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, subject to certain adjustments. In such an event, our public shareholders may receive less than $10.00 per share upon such a distribution and our redeemable warrants will expire worthless.
Our search for a Business Combination, and any target business with which we may ultimately consummate a Business Combination, may be materially adversely affected by the geopolitical conditions resulting from the recent invasion of Ukraine by Russia and subsequent sanctions against Russia, Belarus and related individuals and entities and the status of debt and equity markets, as well as protectionist legislation in our target markets.
United States and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the recent invasion of Ukraine by Russia in February 2022. In response to such invasion, the North Atlantic Treaty Organization (“NATO”) deployed additional military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Certain countries, including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine during the ongoing military conflict, increasing geopolitical tensions with Russia. The invasion of Ukraine by Russia and the resulting measures that have been taken, and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union and other countries have created global security concerns that could have a lasting impact on regional and global economies. Although the length and impact of the ongoing military conflict in Ukraine is highly unpredictable, the conflict could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions. Additionally, Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets.
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Any of the abovementioned factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian invasion of Ukraine and subsequent sanctions, could adversely affect our search for a Business Combination and any target business with which we may ultimately consummate a Business Combination. The extent and duration of the Russian invasion of Ukraine, resulting sanctions and any related market disruptions are impossible to predict, but could be substantial, particularly if current or new sanctions continue for an extended period of time or if geopolitical tensions result in expanded military operations on a global scale. Any such disruptions may also have the effect of heightening many of the other risks described in the “Risk Factors” section of our Annual Report on Form 10-K. If these disruptions or other matters of global concern continue for an extensive period of time, our ability to consummate a Business Combination, or the operations of a target business with which we may ultimately consummate a Business Combination, may be materially adversely affected.
In addition, the recent invasion of Ukraine by Russia, and the impact of sanctions against Russia and the potential for retaliatory acts from Russia, could result in increased cyber-attacks against U.S. companies.
Item 2. Unregistered Sales of Equit
y Securities and Use of Proceeds.
None.
Item 3. Defaults Upon
Senior Securities.
None.
Item 4. Mine Saf
ety Disclosures.
Not applicable.
Item 5. Other
Information.
None.
23
Item 6.
Exhibits.
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.
| ExhibitNumber | Description |
| 3.1* | Amended and Restated Memorandum and Articles of Association (incorporated herein by reference to Exhibit 3.1 filed with the Company’s Form 8-K filed by the Company on August 16, 2021 (File No. 001-40737)). |
| 31.1** | Certification of Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2** | Certification of Chief Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1*** | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2*** | Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101.INS** | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH** | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL** | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF** | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB** | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE** | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

* Incorporated herein by reference as indicated.
** Filed herewith.
*** Furnished herewith. This certification is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
24
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| AFTERNEXT HEALTHTECH ACQUISITION CORP. |
| Date: November 1, 2022 | By: | /s/ R. Halsey Wise |
| R. Halsey Wise |
| Chief Executive Officer |
| Date: November 1, 2022 | By: | /s/ Martin Davidson |
| Martin Davidson |
| Chief Financial Officer (Principal Financial and Accounting Officer) |

25

Question: What was the percentage of accumulated deficit that was decreased due to net income attributable to ordinary shares from June 30, 2022 to September 30, 2022?

Python solution:
def solution():
    #Define variables name and value
    accumulated_deficit_june_30_2022 = 11679893
    net_income_attribution_sept_30 = 1182637

    #Do math calculation to get the answer
    answer = (net_income_attribution_sept_30 / accumulated_deficit_june_30_2022) * 100
    return round(answer, 2)


Answer: 10.13