DELAWARE
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83-0479936
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(State
or other jurisdiction of incorporation or
organization)
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(I.R.S.
employer identification no.)
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Large Accelerated filer o | Accelerated filer o | Non-Accelerated filer o | Smaller reporting company x |
PART I - FINANCIAL INFORMATION | |||
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|||
Item
1.
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Financial
Statements
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||
|
|||
Condensed Balance
Sheets as of June 30, 2008 (Unaudited) and December 31,
2007
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F-1
|
||
Condensed
Statements of Operations (Unaudited) for the three and six months
ended
June 30, 2008, for the period from April 10, 2007 (inception) to
June 30,
2007 and for the period from April 10, 2007 (inception) to June 30,
2008
|
F-2
|
||
Condensed
Statements of Stockholder’s Equity (Unaudited) for the period from April
10, 2007 (inception) through June 30, 2008
|
F-3
|
||
Condensed
Statements of Cash Flows (Unaudited) for the six months ended June
30,
2008, for the period from April 10, 2007 (inception) to June 30,
2007 and
for the period from April 10, 2007 (inception) to June 30, 2008
|
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.
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Quantitative and Qualitative Disclosures About Market Risk |
7
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|
Item
4.
|
Controls
and Procedures
|
7
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PART
II - OTHER INFORMATION
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|||
Item
1.
|
Legal
Proceedings
|
8
|
|
Item
8.
|
Unregistered
Sales of Equity Securities
|
8
|
|
Item
3.
|
Defaults
upon Senior Securities
|
8
|
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
8
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|
Item
5.
|
Other
Information
|
8
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|
Item
6.
|
Exhibits
|
8
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|
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.
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||
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|
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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)
|
June
30, 2008
|
December
31, 2007
|
||||||
Assets
|
(unaudited)
|
||||||
Current
assets:
|
|||||||
Cash
|
$
|
323,082
|
$
|
858,347
|
|||
Prepaid expenses
|
133,529
|
—
|
|||||
Prepaid income tax
|
82,483
|
—
|
|||||
Total
current assets
|
539,094
|
858,347
|
|||||
Restricted
funds held in trust
|
52,897,568
|
52,543,772
|
|||||
Deferred
tax asset
|
135,893
|
19,141
|
|||||
Total
assets
|
$
|
53,572,555
|
$
|
53,421,260
|
Liabilities
and Stockholders’ Equity
|
|||||||
Current
liabilities:
|
|||||||
Accounts payable and accrued expenses
|
$
|
208
|
$
|
104,656
|
|||
Income tax payable
|
—
|
47,009
|
|||||
Total
current liabilities
|
208
|
151,665
|
|||||
Deferred
underwriting compensation
|
1,590,312
|
1,590,312
|
|||||
Total
Liabilities
|
1,590,520
|
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
|
348,329
|
44,190
|
|||||
Total
stockholders’ equity
|
36,237,954
|
35,935,202
|
|||||
Total
liabilities and stockholders’ equity
|
$
|
53,572,555
|
$
|
53,421,260
|
Three
months ended
June
30, 2008
|
April
10, 2007 (inception) through
June
30, 2007
|
Six
months ended
June
30, 2008
|
April
10, 2007 (inception) through
June
30, 2008
|
||||||||||
Operating
expenses:
|
|||||||||||||
Operating
and formation expenses
|
$
|
147,043
|
$
|
1,130
|
$
|
299,876
|
$
|
359,423
|
|||||
Loss
from operations
|
(147,043
|
)
|
(1,130
|
)
|
(299,876
|
)
|
(359,423
|
)
|
|||||
Other
income/(expense):
|
|||||||||||||
Interest
income/(expense), net
|
319,272
|
(4,300
|
)
|
792,771
|
924,376
|
||||||||
Income/(loss)
before provision for taxes
|
172,229
|
(5,430
|
)
|
492,895
|
564,953
|
||||||||
Provision
for income taxes
|
(63,801
|
)
|
—
|
(188,756
|
)
|
(216,624
|
)
|
||||||
Net
income/(loss)
|
$
|
108,428
|
$
|
(5,430
|
)
|
$
|
304,139
|
$
|
348,329
|
||||
Net
income /(loss) per share
|
|||||||||||||
Basic
|
$
|
0.02
|
$
|
(0.00
|
)
|
$
|
0.05
|
||||||
Diluted
|
$
|
0.01
|
$
|
(0.00
|
)
|
$
|
0.04
|
||||||
Weighted
average shares outstanding
|
|||||||||||||
Basic
|
6,626,300
|
1,562,500
|
6,626,300
|
||||||||||
Diluted
|
8,360,701
|
1,562,500
|
8,360,701
|
|
Retained
|
|||||||||||||||
Earnings
|
||||||||||||||||
|
Accumulated
|
|||||||||||||||
Additional
|
During
the
|
Total
|
||||||||||||||
Common
Stock
|
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
|
|||||||
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
|
—
|
—
|
—
|
304,139
|
304,139
|
|||||||||||
Balance
at June 30, 2008
|
8,188,800
|
$
|
620
|
$
|
35,889,005
|
$
|
348,329
|
$
|
36,237,954
|
Six
months ended
June
30, 2008
|
April
10, 2007 (inception) through
June
30, 2007
|
April
10, 2007 (inception) through
June
30, 2008
|
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
income (loss)
|
$
|
304,139
|
$
|
(5,430
|
)
|
$
|
348,329
|
|||
Adjustments to reconcile net income (loss) to net cash provided
by
operating activities
|
||||||||||
Accretion of interest on note payable
|
—
|
4,300
|
17,569
|
|||||||
Deferred income taxes
|
(116,752
|
)
|
—
|
(135,893
|
)
|
|||||
Changes in assets and liabilities
|
||||||||||
Increase in prepaid expenses
|
(133,529
|
)
|
—
|
(133,529
|
)
|
|||||
Increase/(decrease) in accounts payable
and
accrued
expenses
|
(48,270
|
)
|
1,000
|
208
|
||||||
Decrease
in income tax payable
|
(129,492
|
)
|
—
|
(82,483
|
)
|
|||||
Net cash (used in)/provided by operating activities
|
(123,904
|
)
|
(130
|
)
|
14,201
|
|||||
Cash
flows from investing activities:
|
||||||||||
Restricted
funds held in trust
|
(353,796
|
)
|
—
|
(52,897,568
|
)
|
|||||
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
|
—
|
37,500
|
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
|
(57,565
|
)
|
(126,350
|
)
|
(2,629,051
|
)
|
||||
Repayment of note payable to affiliate
|
—
|
—
|
(200,000
|
)
|
||||||
Net cash (used in)/provided by financing activities
|
(57,565
|
)
|
136,150
|
53,206,449
|
||||||
Net
(decrease)/increase in cash
|
(535,265
|
)
|
136,020
|
323,082
|
||||||
Cash
at beginning of period
|
858,347
|
—
|
—
|
|||||||
Cash
at end of period
|
$
|
323,082
|
$
|
136,020
|
$
|
323,082
|
||||
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
|
—
|
$
|
34,754
|
—
|
||||||
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
|