The accompanying notes are an integral part of
the unaudited condensed financial statements.
The accompanying notes are an integral part of
the unaudited condensed financial statements.
The accompanying notes are an integral part of
the unaudited condensed financial statements.
The accompanying notes are an integral part of
the unaudited condensed financial statements.
UNAUDITED NOTES TO
CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30, 2021
NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Enterprise 4.0 Technology Acquisition Corp. (the
“Company”) is a blank check company incorporated as a Cayman Islands exempted company on May 3, 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 (“Business Combination”).
The Company is not limited to a particular industry
or geographic region for purposes of completing a Business Combination. The Company is an early stage and emerging growth company and,
as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of September 30, 2021, the Company had not commenced any operations.
All activity through September 30, 2021 relates to the Company’s formation and initial public offering (the “Initial Public
Offering”), which is described below. The Company will not generate any operating revenues until after the completion of its initial
Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds
derived from the Initial Public Offering.
The registration statement for the Company’s Initial Public Offering
became effective on October 18, 2021. On October 21, 2021, the Company consummated the Initial Public Offering of 30,000,000 units (the
“Public Units”), which includes the partial exercise by the underwriter of its over-allotment option in the amount of 3,900,000
Public Units, at $10.00 per unit, generating gross proceeds of $300,000,000 which is described in Note 3.
Simultaneously with the closing of the Initial
Public Offering, the Company consummated the sale of 700,000 units (the “Placement Units”) at a price of $10.00 per Placement
Unit in a private placement ENT4.0 Technology Sponsor LLC (the “Sponsor”) and the representatives of the underwriters, generating
gross proceeds of $7,000,000, which is described in Note 4.
Transaction costs amounted to $17,078,457, consisting
of $5,220,000 of underwriting fees, $11,280,000 of deferred underwriting fees and $578,457 of other offering costs. In addition, at October
21, 2021, cash of $1,585,501 was held outside of the Trust Account (as defined below) and is available for the payment of offering expenses
and for working capital purposes.
Following the closing of the Initial Public Offering
on October 21, 2021, an amount of $306,000,000 ($10.20 per Public Shares) from the net proceeds of the sale of the Public Shares in the
Initial Public Offering and the sale of the Placement Units was placed in a trust account (the “Trust Account”), and will
be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a
maturity of 185 days or less, or in any open-ended investment company that holds itself out as a money market fund meeting certain
conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion
of a Business Combination and (ii) the distribution of the funds in the Trust Account to the Company’s shareholders, as described
below.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
The Company’s management has broad discretion with respect to
the specific application of the net proceeds of the Initial Public Offering, the sale of the Placement Units and Sponsor Loan proceeds,
although substantially all of the net proceeds are intended to be applied generally toward completing a Business Combination. Nasdaq rules
provide that the Business Combination must be with one or more operating businesses or assets with a fair market value equal to at least
80% of the assets held in the Trust Account (as defined below). The Company will only complete a Business Combination if the post-Business
Combination company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a
controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment
Company Act of 1940, as amended (the “Investment Company Act”). There is no assurance that the Company will be able to successfully
effect a Business Combination. Upon the closing of the Proposed Public Offering, management has agreed that $10.20 per Unit sold in the
Proposed Public Offering, including proceeds of the sale of the Placement Units, will be held in a trust account (“Trust Account”)
and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with
a maturity of 185 days or less, or in any open-ended investment company that holds itself out as a money market fund investing solely
in U.S. Treasuries and meeting certain conditions under Rule 2a-7 of the Investment Company Act, as determined by the Company, until the
earliest of: (i) the completion of a Business Combination and (ii) the distribution of the funds in the Trust Account to the Company’s
shareholders, as described below.
The Company will provide the holders of the Class
A ordinary shares (the “Public Shares”) included in the Public Units (the “Public Shareholders”) with the opportunity
to redeem all or a portion of their public shares upon the completion of the Business Combination, either (i) in connection with a general
meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek
shareholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public
Shareholders will be entitled to redeem their Public Shares, equal to the aggregate amount then on deposit in the Trust Account, calculated
as of two business days prior to the completion of the Business Combination (initially anticipated to be $10.20 per Public Share), including
interest (which interest shall be net of taxes payable), divided by the number of then issued and outstanding public shares, subject to
certain limitations as described in the prospectus. The per-share amount to be distributed to the Public Shareholders who properly redeem
their shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note
6). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s Placement Units.
The Class A ordinary shares will be recorded at redemption value and classified as temporary equity upon the completion of the Proposed
Public Offering, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities
from Equity.”
The Company will proceed with a Business Combination only if the Company
has net tangible assets of at least $5,000,001, either prior to or upon completion of the Business Combination, after payment of the deferred
underwriting commission, and, if the Company seeks shareholder approval, it receives an ordinary resolution under Cayman Islands law approving
a Business Combination, which requires the affirmative vote of a majority of the shareholders who attend and vote at a general meeting
of the Company. If a shareholder vote is not required and the Company does not decide to hold a shareholder vote for business or other
legal reasons, the Company will, pursuant to its Amended and Restated Memorandum and Articles of Association, conduct the redemptions
pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”), and file tender offer documents containing
substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination.
If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares
(as defined in Note 5), Placement Shares (as defined in Note 4), ordinary shares underlying the Sponsor Loan Units (as defined in Note
5), if any, and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination.
Additionally, each Public Shareholder may elect to redeem their Public Shares, without voting, and if they do vote, irrespective
of whether they vote for or against a Proposed Business Combination.
Notwithstanding the foregoing, if the Company seeks shareholder approval
of the Business Combination and the Company does not conduct redemptions pursuant to the tender offer rules, a Public Shareholder, together
with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group”
(as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted
from redeeming its shares with respect to more than an aggregate of 15% of the Public Shares without the Company’s prior written
consent.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
The Sponsor has agreed (a) to waive its redemption rights with respect
to any Founder Shares and Public Shares held by it in connection with the completion of a Business Combination and (b) not to propose
an amendment to the Amended and Restated Memorandum and Articles of Association (i) to modify the substance or timing of the Company’s
obligation to allow redemption in connection with the Company’s Initial Business Combination or to redeem 100% of the Public Shares
if the Company does not complete a Business Combination within the Combination Period (as defined below) or (ii) with respect to any other
provision relating to shareholders’ rights or pre-Initial Business Combination activity, unless the Company provides the Public
Shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment 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 Trust Account and not previously
released to pay taxes, divided by the number of then issued and outstanding Public Shares.
The Company will have until 18 months from the closing of the Initial
Public Offering to complete a Business Combination (the “Combination Period”). However, if the Company has not completed a
Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii)
as promptly as reasonably possible but not more than ten business days thereafter, redeem 100% of 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 and not previously released
to us to pay our taxes, if any (less up to $100,000 of interest to pay winding up and dissolution expenses), divided by the number
of then issued and outstanding Public Shares, which redemption will completely extinguish the rights of the Public Shareholders as shareholders
(including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such
redemption, subject to the approval of the Company’s remaining Public Shareholders and its board of directors, liquidate and dissolve,
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. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants,
which will expire worthless if the Company fails to complete a Business Combination within the Combination Period.
The Sponsor has agreed to waive its rights to liquidating distributions
from the Trust Account with respect to the Founder Shares it will receive if the Company fails to complete a Business Combination within
the Combination Period. However, if the Sponsor or any of its respective affiliates acquire Public Shares, such Public Shares will be
entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination
Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 6) held in the Trust Account
in the event the Company does not complete a Business Combination within the Combination Period, and in such event, such amounts will
be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the
event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than
$10.20.
In order to protect the amounts held in the Trust
Account, the Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party (other than the
Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective
target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account
to below the lesser of (1) $10.20 per Public Share and (2) the actual amount per Public Share held in the Trust Account as of the date
of the liquidation of the Trust Account, if less than $10.20 per Public Share, due to reductions in the value of trust assets, in each
case net of the interest that may be withdrawn to pay taxes. This liability will not apply to any claims by a third party who executed
a waiver of any and all rights to seek access to the Trust Account and as to any claims under the Company’s indemnity of the underwriters
of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities
Act”). 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 will seek to reduce the possibility that the Sponsor will have
to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (other than the Company’s
independent registered public accounting firm), prospective target businesses or other entities with which the Company does business,
execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Liquidity and Management’s Plan
Prior to the completion of the Initial Public Offering,
the Company lacked the liquidity it needed to sustain operations for a reasonable period of time, which is considered to be one year from
the issuance date of the financial statements. The Company has since completed its Initial Public Offering at which time capital in excess
of the funds deposited in the Trust Account and/or used to fund offering expenses was released to the Company for general working capital
purposes. Accordingly, management has since re-evaluated the Company’s liquidity and financial condition and determined that sufficient
capital exists to sustain operations for at least one year from the date that the financial statements were issued, and therefore substantial
doubt has been alleviated.
Risks and Uncertainties
Management continues to evaluate the impact of
the COVID-19 pandemic and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s
financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of
the date of the financial statements. The financial statements do not include any adjustments that might result from the outcome of this
uncertainty.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited condensed financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”)
for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain
information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or
omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information
and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management,
the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are
necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.
The accompanying unaudited condensed financial
statements should be read in conjunction with the Company’s prospectus for its Initial Public Offering as filed with the SEC on
October 20, 2021, as well as the Company’s Current Report on Form 8-K, as filed with the SEC on October 27, 2021. The interim results
for the three months ended September 30, 2021 are not necessarily indicative of the results to be expected for the period ending December
31, 2021 or for any future periods.
Emerging Growth Company
The Company is an “emerging growth company,”
as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”),
and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that
are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements
of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and
proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder
approval of any golden parachute payments not previously approved.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Further, Section 102(b)(1) of the JOBS Act exempts
emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that
is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered
under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company
can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but
any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that
when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging
growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison
of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth
company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting
standards used.
Use of Estimates
The preparation of the condensed financial statements
in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period.
Making estimates requires management to exercise
significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near
term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.
Cash and Cash Equivalents
The Company considers all short-term investments
with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents
as of September 30, 2021.
Deferred Offering Costs
The Company complies with the requirements of
the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A – “Expenses of Offering”. Offering
costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Initial
Public Offering. Offering costs are charged to shareholders’ equity or the statement of operations based on the relative value of
the Public and Private Warrants (if accounted for as liabilities) to the proceeds received from the Units sold upon the completion of
the Initial Public Offering. Should the Initial Public Offering prove to be unsuccessful, these deferred offering costs, as well as additional
expenses to be incurred, will be charged to operations.
As of September 30, 2021, there were $219,048
of deferred offering costs recorded in the accompanying unaudited condensed balance sheets.
Income Taxes
The Company accounts for income taxes under ASC
740, “Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both
the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future
tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established
when it is more likely than not that all or a portion of deferred tax assets will not be realized.
ASC 740 also clarifies the accounting for uncertainty
in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for
financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to
be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes
accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and
no amounts accrued for interest and penalties as of September 30, 2021. The Company is currently not aware of any issues under review
that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations
by major taxing authorities since inception.
The Company is considered an exempted Cayman Islands
Company and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As
such, the Company's tax provision was zero for the periods presented.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Net Loss per Ordinary Share
Net loss per ordinary share is computed by dividing net loss by the
weighted average number of ordinary shares outstanding during the period, excluding ordinary shares subject to forfeiture. Weighted average
shares were reduced for the effect of an aggregate of 978,750 Class B ordinary shares that were subject to forfeiture if the over-allotment option
was not exercised by the underwriters (see Note 5). At September 30, 2021, the Company did not have any dilutive securities and other
contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a
result, diluted loss per share is the same as basic loss per share for the periods presented.
Concentration of Credit Risk
Financial instruments that potentially subject
the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times may exceed the Federal
Depository Insurance Coverage of $250,000. The Company has not experienced losses on these accounts.
Fair Value of Financial Instruments
The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying
amounts represented in the accompanying condensed balance sheets, primarily due to their short-term nature.
Fair value is defined as the price that would be received for sale
of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes
a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority
to unadjusted quoted prices in active Markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable
inputs (Level 3 measurements). These tiers include:
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Level 1, defined as observable inputs such as quoted prices
(unadjusted) for identical instruments in active markets;
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Level 2, defined as inputs other than quoted prices in active
markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices
for identical or similar instruments in markets that are not active; and
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Level 3, defined as unobservable inputs in which little or
no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques
in which one or more significant inputs or significant value drivers are unobservable.
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In some circumstances, the inputs used to measure fair value might
be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its
entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
Recent Accounting Standards
In August 2020, the Financial Accounting Standards
Board (“FASB”) issued Accounting Standards Update (“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”)
to simplify certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion
and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity
classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt
and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings
per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is for fiscal
years beginning after December 15, 2021 and should be applied on a full or modified retrospective basis. Early adoption is permitted,
but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. Management is
currently evaluating the impact of adopting ASU 2020-06.
Management does not believe that any other recently
issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed
financial statements.
NOTE 3. PUBLIC OFFERING
Pursuant to the Initial Public Offering on October
21, 2021, the Company sold 30,000,000 Units, which includes a partial exercise by the underwriters of their over-allotment option in the
amount of 3,900,000 Units, at a purchase price of $10.00 per Unit. Each Unit consists of one Class A ordinary share and one-half of one
redeemable warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one Class A ordinary share
at an exercise price of $11.50 per whole share (see Note 7).
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
NOTE 4. PRIVATE PLACEMENT
Simultaneously with the closing of the Initial
Public Offering, the Sponsor and the representatives of the underwriters purchased an aggregate of 700,000 Placement Units (of which an
aggregate of 600,000 Placement Units were purchased by the Sponsor and 100,000 Placement Units were purchased by the representatives of
the underwriters) at a price of $10.00 per Private Placement Unit, for an aggregate purchase price of $7,000,000, in a private placement.
Each Placement Unit consists of one share of Class A ordinary share (“Placement Share”) and one-half of one redeemable warrant
(“Placement Warrant”). Each whole Placement Warrant is exercisable to purchase one Class A ordinary share at a price of $11.50
per share, subject to adjustment (see Note 7). A portion of the proceeds from the Placement Units were added to the proceeds from the
Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period,
the proceeds from the sale of the Placement Units will be used to fund the redemption of the Public Shares (subject to the requirements
of applicable law) and the Placement Units, Placement Shares, and Placement Warrants will expire worthless.
NOTE 5. RELATED PARTY TRANSACTIONS
Founder Shares
On July 9, 2021, the Sponsor purchased 7,187,500 of the Company’s
Class B ordinary shares (the “Founder Shares”) for an aggregate price of $25,000. In October 2021, the Company effected a
1.044 for 1 stock dividend for each Class B ordinary share outstanding, resulting in the Sponsor holding an aggregate of 7,503,750 founder
shares, up to 978,750 of which are subject to forfeiture depending on the extent to which the underwriters’ over-allotment option
is exercised, so that the number of Founder Shares will equal, on an as-converted basis, approximately 20% of the Company’s issued
and outstanding ordinary shares after the Proposed Public Offering (assuming the Sponsor does not purchase any Public Shares in the Proposed
Public Offering). As a result of the partial exercise of the over-allotment at the Initial Public Offering, 3,750 shares were forfeited.
The Sponsor has agreed, subject to limited exceptions,
not to transfer, assign or sell any of the Founder Shares until the earliest of: (A) one year after the completion of a Business Combination
and (B) subsequent to a Business Combination, (x) if the closing price of the Class A ordinary shares equals or exceesds $12.00 per share
(as adjusted for share sub-divisions, share dividends, rights issuances, reorganizations, recapitalizations and the like) for any 20 trading
days within any 30-trading day period commencing at least 150 days after a Business Combination, or (y) the date on which the Company
completes a liquidation, merger, share exchange or other similar transaction that results in all of the Public Shareholders having the
right to exchange their Class A ordinary shares for cash, securities or other property.
Sponsor Loan
The Sponsor has agreed to lend the Company $5,440,000 (or $6,223,000
if the underwriters’ overallotment option is exercised in full) (the “Sponsor Loan”) as of the closing date of the Initial
Public Offering. The Sponsor Loan will bear no interest. The proceeds of the Sponsor Loan will be deposited into the trust account and
be used to fund the redemption of the public shares (subject to the requirements of applicable law). The Sponsor Loan shall be repaid
or converted into units (“Sponsor Loan Units”) at a conversion price of $10.00 per unit, at the discretion of the Sponsor,
at any time up until the consummation of an initial Business Combination. The Sponsor Loan Units would be identical to the Placement Units
sold in the Initial Public Offering. The Sponsor Loan is being extended in order to ensure that the amount in the trust account is $10.20
per Public Share. If the Company does not consummate a Business Combination and the Sponsor Loan has not been converted into Sponsor Loan
Units by such time, the Company will not repay the sponsor loan and its proceeds will be distributed to the Public Shareholders. The Sponsor
has waived any claims against the trust account in connection with the Sponsor Loan. As of September 30, 2021 there are no amounts outstanding
under the Sponsor Loan. In connection with the Initial Public Offering, as of October 21, 2021 there were $6,220,000 outstanding under
the Sponsor Loan.
Administrative Services Agreement
The entered into an agreement, commencing on October
18, 2021 through the earlier of the Company’s completion of a Business Combination and its liquidation, to pay an affiliate of our
Sponsor a total of $12,500 per month for office space, utilities and secretarial, and administrative support services.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Promissory Note — Related Party
On July 9, 2021, the Company issued an unsecured promissory note (the
“Promissory Note”) to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $300,000.
The Promissory Note is non-interest bearing and payable on the earlier of December 31, 2021 and the completion of the Initial Public Offering.
As of September 30, 2021, there was $125,000 outstanding under the Promissory Note.
Related Party Loans
In order to finance transaction costs in connection
with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s directors and officers may,
but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a
Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company.
Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination
does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds
held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital
Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either
be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such
Working Capital Loans may be convertible into units of the post-Business Combination entity at a price of $10.00 per unit. The units would
be identical to the Private Placement Units. As of September 30, 2021 there are no Working Capital Loans outstanding.
NOTE 6. COMMITMENTS
Registration Rights
The holders of the Founder Shares, Placement Units (including securities
contained therein) and units (including securities contained therein) that may be issued upon conversion of Working Capital Loans, and
any Class A ordinary shares issuable upon the exercise of the Placement Warrants and any Class A ordinary shares and warrants (and underlying
Class A ordinary shares) that may be issued upon conversion of the units issued as part of the Working Capital Loans and Class A ordinary
shares issuable upon conversion of the Founder Shares, will be entitled to registration rights pursuant to a registration rights agreement
to be signed prior to or on the effective date of this offering, requiring us to register such securities for resale (in the case of the
Founder Shares, only after conversion to our Class A ordinary shares). The holders of the majority of these securities are entitled to
make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have certain “piggy
back” registration rights with respect to registration statements filed subsequent to our completion of our Proposed business combination
and rights to require us to register for resale such securities pursuant to Rule 415 under the Securities Act. In addition, these holders
will have “piggy back” registration rights to include their securities in other registration statements filed by us. Notwithstanding
the foregoing, The underwriters may not exercise their demand and “piggy back” registration rights after five (5) and seven
(7) years after the effective date of the registration statement of which this prospectus forms a part and may not exercise demand rights
on more than one occasion. We will bear the expenses incurred in connection with the filing of any such registration statements.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
Underwriting Agreement
At the closing of the
Initial Public Offering, the underwriter exercised a partial overallotment of 3,900,000 additional Units and forfeited the remaining
15,000 Units.
The underwriters paid
a cash underwriting discount of $0.20 per Unit, or $5,220,000 in the aggregate, upon the closing of the Initial Public Offering. In addition,
the underwriters are entitled to a deferred fee of (i) $0.35 per Unit of the gross proceeds of the Proposed 26,100,000 Units sold in the
Proposed Public Offering, or $9,135,000, and (ii) $0.55 per Unit of the gross proceeds from the Units sold pursuant to the over-allotment
option, or $2,145,000. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the
event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.
NOTE 7. STOCKHOLDER’S EQUITY
Preference Shares — The Company
is authorized to issue 5,000,000 preference shares with a par value of $0.0001 per share, with such designations, voting and other rights
and preferences as may be determined from time to time by the Company’s board of directors. At September 30, 2021, there were no
preference shares issued or outstanding.
Class A Ordinary Shares — The
Company is authorized to issue 500,000,000 Class A ordinary shares, with a par value of $0.0001 per share. Holders of Class A ordinary
shares are entitled to one vote for each share. At September 30, 2021, there were no Class A ordinary shares issued or outstanding.
Class B Ordinary Shares — The
Company is authorized to issue 50,000,000 Class B ordinary shares, with a par value of $0.0001 per share. Holders of the Class B ordinary
shares are entitled to one vote for each share. At September 30, 2021, there were 7,503,750 Class B ordinary shares issued and outstanding,
of which an aggregate of up to 978,750 shares are subject to forfeiture depending on the extent to which the underwriters’ over-allotment
option is exercised, so that the number of Class B ordinary shares will equal 20% of the Company’s issued and outstanding ordinary
shares after the Proposed Public Offering (assuming the Sponsor does not purchase any Public Shares in the Initial Public Offering and
excluding the Representative Shares).
Holders of Class A ordinary shares and Class B ordinary shares will
vote together as a single class on all other matters submitted to a vote of shareholders, except as required by law.
The Class B ordinary shares will automatically convert into Class A
ordinary shares at the time of a Business Combination or earlier at the option of the holders thereof at a ratio such that the number
of Class A ordinary shares issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 20%
of the sum of (i) the total number of ordinary shares issued and outstanding upon completion of the Proposed Public Offering, plus (ii)
the total number of Class A ordinary shares issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities
or rights issued or deemed issued, by the Company in connection with or in relation to the completion of a Business Combination (including
the forward purchase shares, but not the forward purchase warrants), excluding any forward purchases securities and Class A ordinary shares
or equity-linked securities exercisable for or convertible into Class A ordinary shares issued, deemed issued, or to be issued, to any
seller in a Business Combination and any Placement Units issued to the Sponsor, its affiliates or any member of the Company’s management
team upon conversion of Working Capital Loans. In no event will the Class B ordinary shares convert into Class A ordinary shares at a
rate of less than one-to-one.
Warrants — As of September 30, 2021 there are no warrants
issued and outstanding. Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise
of the warrants. The warrants will become exercisable at any time commencing 30 days after the completion of a Business Combination. The
warrants will expire five years from the completion of a Business Combination or earlier upon redemption or liquidation.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
The Company will not be obligated to deliver any Class A ordinary shares
pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under
the Securities Act with respect to the Class A ordinary shares underlying the warrants is then effective and a prospectus relating
thereto is current, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration
is available. No warrant will be exercisable, and the Company will not be obligated to issue a Class A ordinary share upon exercise
of a warrant unless the Class A ordinary share issuable upon such warrant exercise has been registered, qualified or deemed to be
exempt under the securities laws of the state of residence of the registered holder of the warrants. In the event that the conditions
in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such warrant will not be entitled
to exercise such warrant and such warrant may have no value and expire worthless. In no event will the Company be required to net cash
settle any warrant. In the event that a registration statement is not effective for the exercised warrants, the purchaser of a unit containing
such warrant will have paid the full purchase price for the unit solely for the Class A ordinary share underlying such unit.
The Company has agreed that as soon as practicable, but in no event
later than 20 business days after the closing of an Initial Business Combination, the Company will use its commercially reasonable best
efforts to file with the SEC a registration statement covering the Class A ordinary shares issuable upon exercise of the warrants, to
cause such registration statement to become effective within 60 days after the closing of Initial Business Combination and to maintain
a current prospectus relating to those Class A ordinary shares until the warrants expire or are redeemed, as specified in the warrant
agreement; provided that if the Class A ordinary shares are at the time of any exercise of a warrant not listed on a national securities
exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company
may, at its option, require holders of warrants who exercise their warrants to do so on a “cashless basis” in accordance with
Section 3(a)(9) of the Securities Act and, in the event the Company elects, it will not be required to file or maintain in effect a registration
statement, but it will use its commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the
extent an exemption is not available. If a registration statement covering the Class A ordinary shares issuable upon exercise of the warrants
is not effective by the 60th day after the closing of the Initial Business Combination, warrant holders may, until such time
as there is an effective registration statement and during any period when the Company failed to maintain an effective registration statement,
exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption, but
the Company will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not
available. In such event, each holder would pay the exercise price by surrendering the warrants for that number of Class A ordinary shares
equal to the quotient obtained by dividing (x) the product of the number of Class A ordinary shares underlying the warrants, multiplied
by the difference between the exercise price of the warrants and the “fair market value” (defined below) by (y) the fair market
value. The “fair market value” as used in the paragraph shall mean the volume weighted average price of the of the Class A
ordinary shares as reported during the ten (10) day period ending on the trading date prior to the date that notice of exercise is received
by the warrant agent.
Redemption of warrants. Once the warrants
become exercisable, the Company may redeem the outstanding warrants:
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in whole and not in part;
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at a price of $0.01 per warrant;
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upon a minimum of 30 days’ prior written notice of
redemption to each warrant holder; and
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if, and only if, the closing price of the Class A ordinary
shares equals or exceeds $18.00 per share (as adjusted) for any 20 trading days within a 30-trading day period ending three trading
days before the date on which the Company sends the notice of redemption to the warrant holders.
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The Company will not redeem the warrants as described above unless
a registration statement under the Securities Act covering the issuance of the Class A ordinary shares issuable upon exercise of the warrants
is then effective and a current prospectus relating to those Class A ordinary shares is available throughout the 30-day redemption period,
except if the warrants may be exercised on a cashless basis and such cashless exercise is exempt from registration under the Securities
Act. If and when the warrants become redeemable, it may exercise its redemption right even if it was unable to register or qualify the
underlying securities for sale under all applicable state securities laws.
ENTERPRISE 4.0 TECHNOLOGY ACQUISITION CORP.
UNAUDITED NOTES TO CONDENSED FINANCIAL
STATEMENTS
SEPTEMBER 30, 2021
(Unaudited)
If the Company calls the warrants for redemption as described above,
its management will have the option to require all holders that wish to exercise warrants to do so on a “cashless basis”.
In such event, each holder would pay the exercise price by surrendering the warrants for that number of Class A ordinary shares equal
to the quotient obtained by dividing (x) the product of the number of Class A ordinary shares underlying the warrants, multiplied by the
difference between the exercise price of the warrants and the fair market value (defined above) by (y) the fair market value. The Company
has established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time of the call
a significant premium to the warrant exercise price. If the forgoing conditions are satisfied and it issues a notice of redemption of
the warrants, each warrant holder will be entitled to exercise his, her, or its warrant prior to the scheduled redemption date. However,
the price of the Class A ordinary shares may fall below the $18.00 redemption trigger price (as discussed for the share sub-divisions,
share capitalizations, reorganizations, recapitalizations, and the like) as well as the $11.50 (for whole shares) warrant exercise price
after the redemption notice is issued.
In addition, if (x) the Company issues additional Class A ordinary
shares or equity-linked securities, for capital raising purposes in connection with the closing of a Business Combination at an issue
price or effective issue price of less than $9.20 per Class A ordinary share (with such issue price or effective issue price to be determined
in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without
taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly
Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest
thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions),
and (z) the volume weighted average trading price of its Class A ordinary shares during the 20 trading day period starting on the trading
day prior to the day on which the Company consummates its Business Combination (such price, the “Market Value”) is below $9.20
per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value
and the Newly Issued Price, the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of
the higher of the Market Value and the Newly Issued Price, and the $10.00 per share redemption trigger price will be adjusted (to the
nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price.
The Private Placement Warrants underlying the units issuable upon conversion
of the Working Capital Loan (“Working Capital Warrants”), if any, Warrants underlying the Sponsor Loan Units (“Sponsor
Loan Warrants”) shall be identical to the Public Warrants, except that, the Private Placement Warrants, the Working Capital Warrants,
and the Sponsor Loan Warrants may not be transferred, assigned or sold until thirty (30) days after the completion by the Company of an
initial Business Combination; provided, however, that the Private Placement Warrants, the Working Capital Warrants, and Sponsor Loan Warrants
and any ordinary shares held by either the Sponsor or any officers or directors of the Company or any Permitted Transferees, as applicable.
NOTE 8. SUBSEQUENT EVENTS
The Company evaluated subsequent events and transactions
that occurred after the balance sheet date up to the date that the unaudited condensed financial statements were issued. Based upon this
review, other than as described in these unaudited condensed financial statements related to the Initial Public Offering on October 21,
2021 and below, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the unaudited
condensed financial statements.
In October 2021, the Company effected a 1.044
for 1 stock dividend for each Class B ordinary share outstanding, resulting in the initial stockholders holding an aggregate of 7,503,750
Founder Shares (up to 978,750 of which are subject to forfeiture depending on the extent to which the underwriters’ over-allotment
option is exercised).