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 August 31, 2009 (unaudited) and May 31, 2009
|
F-1
|
|
Condensed
Statements of Operations for the three months ended August 31, 2009 and
2008 (unaudited) and for the period from April 10, 2007 (inception) to
August 31, 2009 (unaudited)
|
F-2
|
|
Condensed
Statements of Stockholder’s Equity (unaudited) for the period from April
10, 2007 (inception) to August 31, 2009
|
F-3
|
|
Condensed
Statements of Cash Flows for the three months ended August 31, 2009 and
2008 (unaudited) and for the period from April 10, 2007 (inception) to
August 31, 2009 (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
|
8
|
Item
4.
|
Controls
and Procedures
|
8
|
PART
II – OTHER INFORMATION
|
8
|
|
Item
1.
|
Legal
Proceedings
|
8
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
8
|
Item
3.
|
Defaults
upon Senior Securities
|
9
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
9
|
Item
5.
|
Other
Information
|
9
|
Item
6.
|
Exhibits
|
9
|
SIGNATURES
|
10
|
For
the three
|
For
the three
|
April
10, 2007
|
||||||||||
months
ended
|
months
ended
|
(inception)
through
|
||||||||||
August
31, 2009
|
August
31, 2008
|
August
31, 2009
|
||||||||||
Investments
held in trust – beginning of period
|
$ | 52,761,303 | $ | 53,232,971 | $ | - | ||||||
Contribution
to trust (which includes the deferred underwriting discount and
commission of $1,590,312 )
|
- | - | 52,389,984 | |||||||||
Interest
income received
|
4,468 | 301,237 | 1,285,787 | |||||||||
(Withdrawals)/refunds
for taxes
|
21,993 | (435,000 | ) | (588,007 | ) | |||||||
Withdrawals
for working capital (a)
|
(300,000 | ) | - | (600,000 | ) | |||||||
Total
investments held in trust
|
$ | 52,487,764 | $ | 53,099,208 | $ | 52,487,764 |
|
(a)
|
Limited
to $600,000
|
Item
1.
|
Legal
Proceedings.
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds.
|
Item
3.
|
Defaults
upon Senior Securities.
|
Item
4.
|
Submission
of Matters to a Vote of the Security
Holders.
|
Item
5.
|
Other
Information.
|
Item
6.
|
Exhibits
and Financial Statement Schedules.
|
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)
|
August
31, 2009
|
May
31, 2009
|
|||||||
(unaudited)
|
||||||||
Assets
|
|
|||||||
Current
assets:
|
||||||||
Cash
|
$ | 176,993 | $ | 96,482 | ||||
Prepaid
expenses
|
36,468 | 72,936 | ||||||
Refundable
income tax
|
129,481 | 150,486 | ||||||
Total
current assets
|
342,942 | 319,904 | ||||||
Restricted
funds held in trust
|
52,487,764 | 52,761,303 | ||||||
Deferred
tax asset
|
378,536 | 378,536 | ||||||
Total
assets
|
$ | 53,209,242 | $ | 53,459,743 | ||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued expenses
|
$ | 865,215 | $ | 290,590 | ||||
Deferred
interest
|
62,993 | 62,149 | ||||||
Total
current liabilities
|
928,208 | 352,739 | ||||||
Deferred
underwriting compensation
|
1,590,312 | 1,590,312 | ||||||
Total
liabilities
|
2,518,520 | 1,943,051 | ||||||
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 | 35,889,005 | ||||||
Deficit
accumulated during the development stage
|
(942,984 | ) | (117,014 | ) | ||||
Total
stockholders’ equity
|
34,946,641 | 35,772,611 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 53,209,242 | $ | 53,459,743 |
For
the three
months
ended
August
31, 2009
|
For
the three
months
ended
August
31, 2008
|
April
10, 2007
(inception)
through
August
31, 2009
|
||||||||||
Operating
expenses:
|
||||||||||||
Operating
and formation expenses
|
$ | 830,582 | $ | 105,333 | $ | 2,068,860 | ||||||
Loss
from operations
|
(830,582 | ) | (105,333 | ) | (2,068,860 | ) | ||||||
Other
income:
|
||||||||||||
Interest
income, net
|
3,624 | 265,325 | 1,205,866 | |||||||||
Income/(loss)
before provision for taxes
|
(826,958 | ) | 159,992 | (862,994 | ) | |||||||
Benefit/(Provision)
for income taxes
|
988 | (67,192 | ) | (79,990 | ) | |||||||
Net
income/(loss)
|
$ | ( 825,970 | ) | $ | 92,800 | $ | (942,984 | ) | ||||
Net
income /(loss) per share
|
||||||||||||
Basic
and Diluted
|
$ | (0.10 | ) | $ | 0.01 | |||||||
Weighted
average shares outstanding
|
||||||||||||
Basic
and Diluted
|
8,188,800 | 8,188,800 |
Retained
|
||||||||||||||||||||
Earnings
|
||||||||||||||||||||
Common Stock
|
Accumulated
|
|||||||||||||||||||
Additional
|
During the
|
Total
|
||||||||||||||||||
Paid-In
|
Development
|
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 | |||||||||||
Discount
on note payable to affiliate
|
— | — | 17,569 | — | 17,569 | |||||||||||||||
Net
income
|
— | — | — | (3,267 | ) | (3,267 | ) | |||||||||||||
Balance
at May 31, 2007
|
1,562,500 | $ | 156 | $ | 42,413 | $ | (3,267 | ) | $ | 39,302 | ||||||||||
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
over-allotment
option
|
6,626,300 | 663 | 48,791,861 | — | 48,792,524 | |||||||||||||||
Sale
of 2,800,000 private placement warrants on November 29, 2007 at $1.00 per
warrant
|
2,800,000 | 2,800,000 | ||||||||||||||||||
Net
proceeds subject to possible redemption of 1,987,889
shares
|
(199 | ) | (15,743,882 | ) | (15,744,081 | ) | ||||||||||||||
Offering
expenses
|
(1,387 | ) | (1,387 | ) | ||||||||||||||||
Net
income
|
— | — | — | 301,140 | 301,140 | |||||||||||||||
Balance
at May 31, 2008
|
8,188,800 | $ | 620 | $ | 35,889,005 | $ | 297,873 | $ | 36,187,498 | |||||||||||
Net
loss
|
— | — | — | (414,887 | ) | (414,887 | ) | |||||||||||||
Balance
at May 31, 2009
|
8,188,800 | $ | 620 | $ | 35,889,005 | $ | (117,014 | ) | $ | 35,772,611 | ||||||||||
Net
loss
|
— | — | — | (825,970 | ) | (825,970 | ) | |||||||||||||
Balance
at August 31, 2009
|
8,188,800 | $ | 620 | $ | 35,889,005 | $ | (942,984 | ) | $ | 34,946,641 |
Three
months ended
August
31, 2009
|
Three
Months ended
August
31, 2008
|
April
10, 2007
(inception)
through
August
31, 2009
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
income (loss)
|
$ | (825,970 | ) | $ | 92,800 | $ | (942,984 | ) | ||||
Adjustments to
reconcile net income (loss) to net
cash
used in operating activities
|
||||||||||||
Accretion
of interest on note payable
|
— | — | 17,569 | |||||||||
Deferred
income taxes
|
— | (49,812 | ) | (378,536 | ) | |||||||
Changes
in assets and liabilities
|
||||||||||||
(Increase)/decrease
in prepaid expenses
|
36,468 | 36,417 | (36,468 | ) | ||||||||
(Increase)/decrease
in refundable income tax
|
21,005 | (5,406 | ) | (129,481 | ) | |||||||
Increase/(decrease)
in accounts payable and accrued expenses
|
574,625 | (85,065 | ) | 865,215 | ||||||||
Increase
in deferred interest
|
844 | 36,246 | 62,993 | |||||||||
Increase/(decrease)
in income tax payable
|
— | (52,590 | ) | — | ||||||||
Net
cash used in operating activities
|
(193,028 | ) | (27,410 | ) | (541,692 | ) | ||||||
Cash flows from investing activities: | ||||||||||||
Proceeds
from sale of units placed in trust
|
— | — | (49,589,984 | ) | ||||||||
Proceeds
from sale of warrants placed in trust
|
— | — | (2,800,000 | ) | ||||||||
Interest
income earned on funds held in trust
|
(4,468 | ) | (301,237 | ) | (1,285,787 | ) | ||||||
Deposit
of refund for state taxes paid
|
(21,993 | ) | — | (21,993 | ) | |||||||
Withdrawals
for payments of income taxes
|
— | 435,000 | 610,000 | |||||||||
Withdrawals
for payments of operating expenses
|
300,000 | — | 600,000 | |||||||||
Net
cash provided by (used in) investing activities
|
273,539 | 133,763 | (52,487,764 | ) | ||||||||
Cash
flows from financing activities:
|
||||||||||||
Proceeds
from sale of stock to initial stockholders
|
— | — | 25,000 | |||||||||
Proceeds
from note payable to affiliate
|
— | — | 200,000 | |||||||||
Advance
from affiliates
|
— | — | 37,500 | |||||||||
Repayment
to affiliates
|
— | — | (37,500 | ) | ||||||||
Gross
proceeds from initial public offering
|
— | — | 53,010,500 | |||||||||
Proceeds
from issuance of warrants
|
— | — | 2,800,000 | |||||||||
Payment of offering costs
|
— | — | (2,629,051 | ) | ||||||||
Repayment
of note payable to affiliate
|
— | — | (200,000 | ) | ||||||||
Net
cash provided by financing activities
|
— | — | 53,206,449 | |||||||||
Net
increase in cash
|
80,511 | 106,353 | 176,993 | |||||||||
Cash
at beginning of period
|
96,482 | 170,835 | — | |||||||||
Cash
at end of period
|
$ | 176,993 | $ | 277,188 | $ | 176,993 | ||||||
Supplemental
Disclosures:
|
||||||||||||
Non-cash
financing activities:
|
||||||||||||
Deferred
underwriting compensation
|
$ | — | $ | — | $ | 1,590,312 | ||||||
Cash
flow information:
|
||||||||||||
Cash
paid during the period for income taxes
|
$ | — | $ | 175,000 | $ | 610,000 | ||||||
Cash
paid for interest
|
$ | — | $ | — | $ | 5,987 |
For
the three
|
For
the three
|
April
10, 2007
|
||||||||||
months
ended
|
months
ended
|
(inception)
through
|
||||||||||
August 31, 2009
|
August 31, 2008
|
August 31, 2009
|
||||||||||
Investments
held in trust – beginning of period
|
$ | 52,761,303 | $ | 53,232,971 | $ | - | ||||||
Contribution
to trust (which includes the deferred
|
||||||||||||
underwriting
discount and commission of $1,590,312 )
|
- | - | 52,389,984 | |||||||||
Interest
income received
|
4,468 | 301,237 | 1,285,787 | |||||||||
(Withdrawals)/refunds
for taxes
|
21,993 | (435,000 | ) | (588,007 | ) | |||||||
Withdrawals
for working capital (a)
|
(300,000 | ) | (600,000 | ) | ||||||||
Total
investments held in trust
|
$ | 52,487,764 | $ | 53,099,208 | $ | 52,487,764 |
|
(a)
|
Limited
to $600,000
|
Level
1:
|
Quoted
market prices in active markets for identical assets or
liabilities.
|
Level
2:
|
Observable
market based inputs or unobservable inputs that are corroborated by market
data.
|
Level
3:
|
Unobservable
inputs that are not corroborated by market
data.
|
August
31, 2009
|
||||||||||||||||
Total
|
Level
1
|
Level
2
|
Level
3
|
|||||||||||||
Funds
Held in Trust
|
$ | 52,487,764 | $ | 52,487,764 | $ | — | $ | — | ||||||||
Total
assets
|
$ | 52,487,764 | $ | 52,487,764 | $ | — | $ | — |