10-QPeriod: Q3 FY2020

Rocket Lab Corp Quarterly Report for Q3 Ended Sep 30, 2020

Filed November 16, 2020For Securities:RKLB

Summary

Vector Acquisition Corporation (VAC) is a blank check company, a Special Purpose Acquisition Company (SPAC), incorporated in July 2020 with the purpose of effecting a business combination with one or more companies. As of September 30, 2020, VAC had not yet identified a target company and its operations were limited to its formation, initial public offering (IPO), and subsequent efforts to find a suitable business for acquisition. The company's primary assets consist of cash held in a Trust Account ($300 million) and cash available for working capital. Liabilities include deferred underwriting fees. VAC successfully completed its IPO on September 29, 2020, issuing 30 million units at $10 each, generating substantial capital. A portion of these proceeds, along with funds from a private placement of warrants, is held in a trust for the eventual business combination. The company has a defined timeline (September 29, 2022) to complete a business combination, after which it will liquidate if unsuccessful. Investors should note that as of this filing date, no target has been identified, and all operational activities are preparatory for a future acquisition.

Financial Highlights

36 data points
Beta

Revenue

$10.67M

-17.7% Gross Margin

Net Income

-$12.61M

-118.1% Net Margin

EPS (Diluted)

$-0.17

Total Assets

$301.35M

Cash & Equivalents

$924K

Free Cash Flow

-$18.23M

Financial Statements
Beta
Revenue$10.67M
Cost of Revenue$12.55M
Gross Profit-$1.89M
R&D Expenses$4.90M
SG&A Expenses$6.06M
Operating Expenses$10.96M
Operating Income-$12.85M
Net Income-$12.61M
EPS (Basic)$-0.17
Shares Outstanding (Basic)76.05M

Key Highlights

  • 1Vector Acquisition Corporation (VAC) is a SPAC formed to acquire an unspecified business, with no operations or revenue as of September 30, 2020.
  • 2The company raised $300 million in its Initial Public Offering (IPO) on September 29, 2020, issuing 30 million units at $10 per unit.
  • 3An additional $8 million was raised through the private placement of 5,333,333 warrants to the Sponsor.
  • 4A significant portion of the IPO proceeds ($300 million) is held in a Trust Account, invested in U.S. Treasury obligations, to fund a future business combination.
  • 5VAC has a deadline of September 29, 2022, to complete a business combination; failure to do so will result in the liquidation of the trust account and redemption of public shares.
  • 6The company incurred $17.15 million in transaction costs related to the IPO, including underwriting fees and deferred underwriting fees.
  • 7VAC is an emerging growth company and a smaller reporting company, which may allow it to take advantage of certain regulatory exemptions.

Frequently Asked Questions

Vector Acquisition Corporation is a blank check company, also known as a Special Purpose Acquisition Company (SPAC). Its primary business activity is to raise capital through an initial public offering (IPO) to fund a future business combination with an unidentified target company. As of the filing date, it had no ongoing operations or revenue.

Vector Acquisition Corporation raised $300 million in its IPO by selling 30 million units at $10 per unit. Additionally, it raised $8 million from a private placement of warrants to its Sponsor. The majority of the IPO proceeds ($300 million) are held in a Trust Account, invested in U.S. government securities, to be used for the eventual business combination.

Vector Acquisition Corporation has a timeframe of 24 months from its IPO date (September 29, 2020) to complete a business combination. This means they have until September 29, 2022, to find and merge with a target company. If a business combination is not completed within this period, the company will liquidate, and the funds in the Trust Account will be distributed to public shareholders.

The primary risks for investors include the uncertainty of identifying and successfully completing a business combination, the potential for the SPAC to fail to find a suitable target within the allotted time, leading to liquidation and the possibility of redemption value being less than the initial investment if trust account investments yield negative returns. Additionally, there's the risk associated with the specific industry or company the SPAC eventually acquires.