DELAWARE
|
83-0479936
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
employer identification no.)
|
PART
I – FINANCIAL INFORMATION
|
|||
Item
1.
|
Financial
Statements
|
3 | |
Condensed Balance
Sheets as of September 30, 2008 (unaudited) and December 31,
2007
|
F-1 | ||
Condensed
Statements of Operations for the three months ended September 30,
2008 and
September 30, 2007 (unaudited), for the nine months ended September
30,
2008 (unaudited), for the period from April 10, 2007 (inception)
to
September 30, 2007 and for the period from April 10, 2007 (inception)
to
September 30, 2008 (unaudited)
|
F-2 | ||
Condensed
Statements of Stockholder’s Equity (unaudited) for the period from April
10, 2007 (inception) to September 30, 2008
|
F-3 | ||
Condensed
Statements of Cash Flows for the nine months ended September 30,
2008
(unaudited), for the period from April 10, 2007 (inception) to September
30, 2007 and for the period from April 10, 2007 (inception) to September
30, 2008 (unaudited)
|
F-4 | ||
Notes
to Condensed Financial Statements (unaudited)
|
F-5 | ||
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
3 | |
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
7 | |
Item
4.
|
Controls
and Procedures
|
8 | |
PART
II – OTHER
INFORMATION
|
|||
Item
1.
|
Legal
Proceedings
|
8 | |
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
8 | |
Item
3.
|
Defaults
upon Senior Securities
|
8 | |
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
8 | |
Item
5.
|
Other
Information
|
8 | |
Item
6.
|
Exhibits
|
8 | |
SIGNATURES
|
9 |
Exhibit
No.
|
Description
|
|
31.1
|
Certifications
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
31.2
|
Certifications
Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
32.1
|
Certifications
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
|
32.2
|
Certifications
Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
CAMDEN
LEARNING CORPORATION.
|
||
By:
|
/s/ David L. Warnock | |
Name:
David L. Warnock
Title:
Chief Executive Officer
(Principal
Executive Officer)
|
By:
|
/s/ Donald W. Hughes | |
Name:
Donald W. Hughes
Title:
Chief Financial Officer
(Principal
Financial Officer)
|
September 30,
2008
|
December 31,
2007
|
||||||
|
(unaudited)
|
||||||
Assets
|
|||||||
Current
assets:
|
|||||||
Cash
|
$
|
245,889
|
$
|
858,347
|
|||
Prepaid
expenses
|
104,612
|
—
|
|||||
Total
current assets
|
350,501
|
858,347
|
|||||
Restricted
funds held in trust
|
53,184,495
|
52,543,772
|
|||||
Deferred
tax asset
|
173,821
|
19,141
|
|||||
Total
assets
|
$
|
53,708,817
|
$
|
53,421,260
|
|||
Liabilities
and Stockholders’ Equity
|
|||||||
Current
liabilities:
|
|||||||
Accounts
payable and accrued expenses
|
$
|
10,563
|
$
|
104,656
|
|||
Income
tax payable
|
13,758
|
47,009
|
|||||
Deferred
interest
|
52,360
|
—
|
|||||
Total
current liabilities
|
76,681
|
151,665
|
|||||
Deferred
underwriting compensation
|
1,590,312
|
1,590,312
|
|||||
Total
liabilities
|
1,666,993
|
1,741,977
|
|||||
Commitments
|
|||||||
Common
stock, subject to possible redemption 1,987,889 shares
|
15,744,081
|
15,744,081
|
|||||
Stockholders’
equity
|
|||||||
Preferred
Stock, $.0001 par value, 1,000,000 shares authorized; none issued
or
outstanding
|
—
|
—
|
|||||
Common
Stock, $.0001 par value, 20,000,000 shares authorized; 8,188,800
shares
issued and outstanding (less 1,987,889 shares subject to possible
redemption)
|
620
|
620
|
|||||
Additional
paid-in capital
|
35,889,005
|
35,890,392
|
|||||
Retained
earnings accumulated during the development stage
|
408,118
|
44,190
|
|||||
Total
stockholders’ equity
|
36,297,743
|
35,935,202
|
|||||
Total
liabilities and stockholders’ equity
|
$
|
53,708,817
|
$
|
53,421,260
|
Three months
ended September
30, 2008
|
Three months
ended September
30, 2007
|
Nine months
ended September
30, 2008
|
April 10, 2007
(inception)
through
September 30,
2007
|
April 10, 2007
(inception)
through
September 30,
2008
|
||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||
Operating
expenses:
|
||||||||||||||||
Operating
and formation expenses
|
$
|
117,093
|
$
|
—
|
$
|
416,969
|
$
|
1,130
|
$
|
476,516
|
||||||
Loss
from operations
|
(117,093
|
)
|
—
|
(416,969
|
)
|
(1,130
|
)
|
(476,516
|
)
|
|||||||
Other
income/(expense):
|
||||||||||||||||
Interest
income/(expense), net
|
235,195
|
(6,640
|
)
|
1,027,966
|
(10,940
|
)
|
1,159,571
|
|||||||||
Income/(loss)
before provision for taxes
|
118,102
|
(6,640
|
)
|
610,997
|
(12,070
|
)
|
683,055
|
|||||||||
Provision
for income taxes
|
(58,313
|
)
|
—
|
(247,069
|
)
|
—
|
(274,937
|
)
|
||||||||
Net
income/(loss)
|
$
|
59,789
|
$
|
(6,640
|
)
|
$
|
363,928
|
$
|
(12,070
|
)
|
408,118
|
|||||
Net
income /(loss) per share
|
||||||||||||||||
Basic
|
$
|
0.01
|
$
|
(0.00
|
)
|
$
|
0.05
|
$
|
(0.01
|
)
|
||||||
Diluted
|
$
|
0.01
|
$
|
(0.00
|
)
|
$
|
0.04
|
$
|
(0.01
|
)
|
||||||
Weighted
average shares outstanding
|
||||||||||||||||
Basic
|
6,626,300
|
1,562,500
|
6,626,300
|
1,562,500
|
||||||||||||
Diluted
|
8,360,701
|
1,562,500
|
8,360,701
|
1,562,500
|
Common Stock
|
Additional
Paid-In
|
Retained
Earnings
Accumulated
During the
Development
|
Total
Stockholders’
|
|||||||||||||
Shares
|
Amount
|
Capital
|
Stage
|
Equity
|
||||||||||||
Common
shares issued to initial stockholders on April 10, 2007 at approximately
$.02 per share
|
1,562,500
|
$
|
156
|
$
|
24,844
|
$
|
—
|
$
|
25,000
|
|||||||
Sale
of 2,800,000 private placement warrants on November 29, 2007 at $1.00
per
warrant
|
—
|
—
|
2,800,000
|
—
|
2,800,000
|
|||||||||||
Sale
of 6,626,300 units, net of underwriters’ discount and offering expenses of
$507,248 (including 1,987,889 shares subject to possible redemption)
and
sale of underwriter’s purchase option
|
6,626,300
|
663
|
48,791,861
|
—
|
48,792,524
|
|||||||||||
Net
proceeds subject to possible redemption of 1,987,889
shares
|
(199
|
)
|
(15,743,882
|
)
|
(15,744,081
|
)
|
||||||||||
Discount
on note payable to affiliate
|
—
|
—
|
17,569
|
—
|
17,569
|
|||||||||||
Net
income
|
—
|
—
|
—
|
44,190
|
44,190
|
|||||||||||
Balance
at December 31, 2007
|
8,188,800
|
$
|
620
|
$
|
35,890,392
|
$
|
44,190
|
$
|
35,935,202
|
|||||||
Unaudited:
|
||||||||||||||||
Offering
expenses
|
(1,387
|
)
|
(1,387
|
)
|
||||||||||||
Net
income
|
—
|
—
|
—
|
363,928
|
363,928
|
|||||||||||
Balance
at September 30, 2008
|
8,188,800
|
$
|
620
|
$
|
35,889,005
|
$
|
408,118
|
$
|
36,297,743
|
Nine months ended
September 30, 2008
|
April 10, 2007
(inception) through
September 30, 2007
|
April 10, 2007
(inception) through
September 30, 2008
|
||||||||
(unaudited)
|
(unaudited)
|
|||||||||
Cash
flows from operating activities:
|
||||||||||
Net
income (loss)
|
$
|
363,928
|
$
|
(12,070
|
)
|
$
|
408,118
|
|||
Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating
activities
|
||||||||||
Accretion
of interest on note payable
|
—
|
6,857
|
17,569
|
|||||||
Deferred
income taxes
|
(154,680
|
)
|
—
|
(173,821
|
)
|
|||||
Changes
in assets and liabilities
|
||||||||||
Increase
in prepaid expenses
|
(104,612
|
)
|
(104,612
|
)
|
||||||
Increase/(decrease)
in accounts payable and accrued expenses
|
(37,915
|
)
|
1,000
|
10,563
|
||||||
Increase/(decrease)
in income tax payable
|
(33,251
|
)
|
—
|
13,758
|
||||||
Increase
in accrued interest
|
—
|
4,083
|
—
|
|||||||
Increase
in deferred interest
|
52,360
|
—
|
52,360
|
|||||||
Net
cash (used in)/provided by operating activities
|
85,830
|
(130
|
)
|
223,935
|
||||||
Cash
flows from investing activities:
|
||||||||||
Restricted
funds held in trust
|
(640,723
|
)
|
—
|
(53,184,495
|
)
|
|||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from sale of stock to initial stockholders
|
—
|
25,000
|
25,000
|
|||||||
Proceeds
from note payable to affiliate
|
—
|
200,000
|
200,000
|
|||||||
Advance
from affiliates
|
—
|
36,389
|
37,500
|
|||||||
Repayment
to affiliates
|
—
|
(37,500
|
)
|
(37,500
|
)
|
|||||
Gross
proceeds from initial public offering
|
—
|
—
|
53,010,500
|
|||||||
Proceeds
from issuance of warrants
|
—
|
—
|
2,800,000
|
|||||||
Payment
of offering costs
|
(57,565
|
)
|
(188,644
|
)
|
(2,629,051
|
)
|
||||
Repayment
of note payable to affiliate
|
—
|
—
|
(200,000
|
)
|
||||||
Net
cash (used in)/provided by financing activities
|
(57,565
|
)
|
35,245
|
53,206,449
|
||||||
Net
(decrease)/increase in cash
|
(612,458
|
)
|
35,115
|
245,889
|
||||||
Cash
at beginning of period
|
858,347
|
—
|
—
|
|||||||
Cash
at end of period
|
$
|
245,889
|
$
|
35,115
|
$
|
245,889
|
||||
Supplemental
Disclosures:
|
||||||||||
Non-cash
financing activities:
|
||||||||||
Additional
paid-in capital from discount on note payable to affiliate
|
—
|
$
|
17,569
|
—
|
||||||
Increase
in deferred offering costs, and in related accounts payable and accrued
expenses and due to affiliates
|
—
|
$
|
40,211
|
—
|
||||||
Deferred
underwriting compensation
|
—
|
—
|
$
|
1,590,312
|
||||||
Cash
flow information:
|
||||||||||
Cash
paid during the period for income taxes
|
$
|
435,000
|
—
|
$
|
435,000
|
|||||
Cash
paid for interest
|
—
|
—
|
$
|
5,987
|