The statements in the discussion and analysis regarding industry outlook, our expectations regarding the performance of our business and the forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in "Risk Factors" and "Cautionary Note Regarding Forward-Looking Statements." Our actual results may differ materially from those contained in or implied by any forward-looking statements. You should read the following discussion together with the sections entitled "Risk Factors"," "Business" and the audited consolidated financial statements, including the related notes, appearing elsewhere in this Form 10-K. All references to years, unless otherwise noted, refer to our fiscal years, which end on December 31. As used in this Form 10-K, unless the context suggests otherwise, "we," "us," "our," "the Company" or "Concord" refer to Concord Acquisition Corp.





Restatements

Pursuant to Amendment No. 1 to Form 10-K, the Company restated its historical financial statements for all periods to reclassify its warrants as derivative liabilities pursuant to ASC 815-40 rather than as components of equity as the Company had previously treated the warrants.

Pursuant to Amendment No. 2 to Form 10-K, the Company restated its historical financial results included in Form 10-K/A Amendment No. 1 to reclassify its temporary equity and permanent equity. The impact of the restatement did not have any impact on the Management's Discussion and Analysis of Financial Condition and Results of Operations below. Other than as disclosed in the Explanatory Note and with respect to the impact of the restatement, no other information in this Item 7 has been amended and this Item 7 does not reflect any events occurring after the Original Filing.





Overview

We are a blank check company incorporated as a Delaware corporation 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. We intend to effectuate our initial business combination using cash from the proceeds of our initial public offering and the sale of the private placement warrants, our capital stock, debt or a combination of cash, stock and debt.

The issuance of additional shares of our stock in a business combination:





       ?      may significantly dilute the equity interest of investors in our
              securities, which dilution would increase if the anti-dilution
              provisions in the Class B common stock resulted in the issuance of
              Class A shares on a greater than one-to-one basis upon conversion of
              the Class B common stock;




       ?      may subordinate the rights of holders of common stock if preferred
              stock is issued with rights senior to those afforded our common
              stock;




       ?      could cause a change of control if a substantial number of shares of
              our common stock is issued, which may affect, among other things,
              our ability to use our net operating loss carry forwards, if any,
              and could result in the resignation or removal of our present
              officers and directors;




       ?      may have the effect of delaying or preventing a change of control of
              us by diluting the stock ownership or voting rights of a person
              seeking to obtain control of us;




       ?      may adversely affect prevailing market prices for our units, Class A
              common stock and/or warrants; and




  ? may not result in adjustment to the exercise price of our warrants.




       ?      Similarly, if we issue debt securities or otherwise incur
              significant indebtedness, it could result in:




       ?      default and foreclosure on our assets if our operating revenues
              after an initial business combination are insufficient to repay our
              debt obligations;




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       ?      acceleration of our obligations to repay the indebtedness even if we
              make all principal and interest payments when due if we breach
              certain covenants that require the maintenance of certain financial
              ratios or reserves without a waiver or renegotiation of that
              covenant;




       ?      our immediate payment of all principal and accrued interest, if any,
              if the debt is payable on demand;




       ?      our inability to obtain necessary additional financing if the debt
              contains covenants restricting our ability to obtain such financing
              while the debt is outstanding;




  ? our inability to pay dividends on our common stock;




       ?      using a substantial portion of our cash flow to pay principal and
              interest on our debt, which will reduce the funds available for
              dividends on our common stock if declared, expenses, capital
              expenditures, acquisitions and other general corporate purposes;




       ?      limitations on our flexibility in planning for and reacting to
              changes in our business and in the industry in which we operate;




       ?      increased vulnerability to adverse changes in general economic,
              industry and competitive conditions and adverse changes in
              government regulation; and




       ?      limitations on our ability to borrow additional amounts for
              expenses, capital expenditures, acquisitions, debt service
              requirements, execution of our strategy and other purposes and other
              disadvantages compared to our competitors who have less debt.

Results of Operations and Known Trends or Future Events

We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities and those necessary to prepare for the IPO. Following the IPO, we do not expect to generate any operating revenues until after completion of our initial business combination. We will generate non-operating income in the form of interest income on cash and cash equivalents in the form of specified U.S. government treasury bills or specified money market funds after the IPO. There has been no significant change in our financial or trading position and no material adverse change has occurred since the date of our audited financial statements. Until the completion of our initial business combination, we expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the year ended December 31, 2020, we had a net loss of $230,981, driven by transaction costs of $254,150, related to the formation of the Company, and formation and operating costs of $121,735, partially offset by a change in the fair value of the warrant liability of $138,962 and interest income of $5,942.

Liquidity and Capital Resources

Our liquidity needs have been satisfied prior to the completion of our initial public offering through receipt of a $25,000 capital contribution from our sponsors in exchange for the issuance of the founder shares and up to $200,000 in loans from our sponsors under unsecured promissory notes.

We intend to use substantially all of the funds held in our trust account, including any amounts representing interest earned on the trust account (which interest shall be net of taxes payable) to complete our initial business combination. We may withdraw interest to fund our working capital requirements (subject to a limit of $250,000 per year) and/or to pay our taxes. Delaware franchise tax is based on our authorized shares or on our assumed par and non-par capital, whichever yields a lower result. Under the authorized shares method, each share is taxed at a graduated rate based on the number of authorized shares with a maximum aggregate tax of $200,000 per year. Under the assumed par value capital method, Delaware taxes each $1,000,000 of assumed par value capital at the rate of $350; where assumed par value would be (1) our total gross assets following the IPO, divided by (2) our total issued shares of common stock following the IPO, multiplied by (3) the number of our authorized shares following the IPO. Based on the number of shares of our common stock authorized and outstanding and our estimated total gross proceeds after the completion of the IPO, our annual franchise tax obligation is expected to be capped at the maximum amount of annual franchise taxes payable by us as a Delaware corporation of $200,000. Our annual income tax obligations will depend on the amount of interest and other income earned on the amounts held in the trust account. We expect the only taxes payable by us out of the funds in the trust account will be income and franchise taxes. We expect the interest earned on the amount in the trust account will be sufficient to pay our taxes. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our initial business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

As of December 31, 2020, we had available to us approximately $1.1 million of proceeds held outside the trust account. We will use these funds primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, structure, negotiate and complete a business combination, and to pay taxes to the extent the interest earned on the trust account is not sufficient to pay our taxes.





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In order to fund working capital deficiencies or finance transaction costs in connection with an intended initial business combination, our sponsors, an affiliate of our sponsors or our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete our initial business combination, we may repay such loaned amounts out of the proceeds of the trust account released to us. In the event that our initial business combination does not close, we may use a portion of the working capital held outside the trust account to repay such loaned amounts but no proceeds from our trust account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into warrants at a price of $1.50 per warrant at the option of the lender. The warrants would be identical to the private placement warrants issued to our sponsors. The terms of such loans by our sponsors, an affiliate of our sponsors or our officers and directors, if any, have not been determined and no written agreements exist with respect to such loans. Prior to the completion of our business combination, we do not expect to seek loans from parties other than our sponsors, an affiliate of our sponsors or our officers and directors, if any, as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our trust account.

We do not believe we will need to raise additional funds following our initial public offering in order to meet the expenditures required for operating our business. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial 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 initial business combination. Moreover, we may need to obtain additional financing either to complete our initial business combination or because we become obligated to redeem a significant number of our public shares upon completion of our initial business combination, in which case we may issue additional securities or incur debt in connection with such business combination.

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