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<p style="margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="margin: 0"></p>

<!-- Field: Rule-Page --><div style="margin-top: 12pt; margin-bottom: 3pt; width: 100%"><div style="border-top: Black 2pt solid; border-bottom: Black 1pt solid; font-size: 1pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></div></div><!-- Field: /Rule-Page -->

<p style="margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 14pt"><b>UNITED
STATES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 14pt"><b>SECURITIES
AND EXCHANGE COMMISSION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 12pt"><b>Washington,
D.C. 20549</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 18pt"><b>FORM
<span id="xdx_909_edei--DocumentType_c20220101__20220331_zni2Cjy8IEdc"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" name="dei:DocumentType">10-Q</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>(MARK
ONE)</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>For
the transition period from to</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Commission
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
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<td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">(Exact name of registrant as specified in its charter) </span></td></tr>
<tr style="vertical-align: top">
<td colspan="3" style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</td></tr>
<tr style="vertical-align: top">
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<td style="border-bottom: white 1pt solid; width: 1%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
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<td><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">(I.R.S. Employer<br /> Identification No.)</span></td></tr>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span><b>&#160;</b></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;<span id="xdx_904_edei--EntityAddressCityOrTown_c20220101__20220331_zCBgSQNOIo83"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" name="dei:EntityAddressCityOrTown">San Francisco</ix:nonNumeric></span>, <span id="xdx_90D_edei--EntityAddressStateOrProvince_c20220101__20220331_zVuJNbdJS7l5"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" name="dei:EntityAddressStateOrProvince">CA</ix:nonNumeric></span> <span id="xdx_901_edei--EntityAddressPostalZipCode_c20220101__20220331_z81J7Hu1uBKb"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" name="dei:EntityAddressPostalZipCode">94111</ix:nonNumeric></span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b>(Address
of principal executive offices)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b>(Registrant&#8217;s
telephone number, including area code)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Not
applicable.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b>(Former
name, former address and former fiscal year, if changed since last report)</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Securities
registered pursuant to Section 12(b) of the Act:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom">
<td style="border-bottom: black 1pt solid; padding: 0pt; width: 39%; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>Title of each class</b></span></td>
<td style="border-bottom: white 1pt solid; padding: 0pt; text-indent: 0pt; width: 1%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: black 1pt solid; padding: 0pt; width: 21%; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>Trading Symbol(s)</b></span></td>
<td style="border-bottom: white 1pt solid; padding: 0pt; text-indent: 0pt; width: 1%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: black 1pt solid; padding: 0pt; width: 38%; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>Name of each exchange on which registered</b></span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_907_edei--Security12bTitle_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--UnitsEachConsistingOfOneShareOfClassCommonStockParValue0.0001PerShareAndThreefourthsOfOneRedeemableWarrantMember_zrK1DIsJSK55"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_UnitsEachConsistingOfOneShareOfClassCommonStockParValue0.0001PerShareAndThreefourthsOfOneRedeemableWarrantMember" name="dei:Security12bTitle">Units, each consisting of one share of Class A common stock, par value $0.0001 per share and three-fourths of one redeemable warrant</ix:nonNumeric></span></span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_90B_edei--TradingSymbol_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--UnitsEachConsistingOfOneShareOfClassCommonStockParValue0.0001PerShareAndThreefourthsOfOneRedeemableWarrantMember_zsatH8gaBBJj"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_UnitsEachConsistingOfOneShareOfClassCommonStockParValue0.0001PerShareAndThreefourthsOfOneRedeemableWarrantMember" name="dei:TradingSymbol">AVACU</ix:nonNumeric></span></span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">The <span id="xdx_90D_edei--SecurityExchangeName_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--UnitsEachConsistingOfOneShareOfClassCommonStockParValue0.0001PerShareAndThreefourthsOfOneRedeemableWarrantMember_zadZZkFPGXO7"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_UnitsEachConsistingOfOneShareOfClassCommonStockParValue0.0001PerShareAndThreefourthsOfOneRedeemableWarrantMember" format="ixt-sec:exchnameen" name="dei:SecurityExchangeName">Nasdaq</ix:nonNumeric></span> Stock Market LLC</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_906_edei--Security12bTitle_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--ClassCommonStockParValue0.0001PerShareMember_zwtaEArgsnwe"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_ClassCommonStockParValue0.0001PerShareMember" name="dei:Security12bTitle">Class A Common Stock, par value $0.0001 per share</ix:nonNumeric></span></span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_900_edei--TradingSymbol_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--ClassCommonStockParValue0.0001PerShareMember_ztTSi3X41bu6"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_ClassCommonStockParValue0.0001PerShareMember" name="dei:TradingSymbol">AVAC</ix:nonNumeric></span></span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">The <span id="xdx_90C_edei--SecurityExchangeName_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--ClassCommonStockParValue0.0001PerShareMember_zhwVsGRWfLb3"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_ClassCommonStockParValue0.0001PerShareMember" format="ixt-sec:exchnameen" name="dei:SecurityExchangeName">Nasdaq</ix:nonNumeric></span> Stock Market LLC</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_901_edei--Security12bTitle_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassCommonStockAtExercisePriceOf11.50PerWholeShareMember_zS3a8upFJDPa"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassCommonStockAtExercisePriceOf11.50PerWholeShareMember" name="dei:Security12bTitle">Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per whole share</ix:nonNumeric></span></span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_908_edei--TradingSymbol_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassCommonStockAtExercisePriceOf11.50PerWholeShareMember_zQ00zTEFpA64"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassCommonStockAtExercisePriceOf11.50PerWholeShareMember" name="dei:TradingSymbol">AVACW</ix:nonNumeric></span></span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">The <span id="xdx_90E_edei--SecurityExchangeName_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassCommonStockAtExercisePriceOf11.50PerWholeShareMember_zZ2ItOn4V9ql"><ix:nonNumeric contextRef="From2022-01-012022-03-31_custom_RedeemableWarrantsEachWholeWarrantExercisableForOneShareOfClassCommonStockAtExercisePriceOf11.50PerWholeShareMember" format="ixt-sec:exchnameen" name="dei:SecurityExchangeName">Nasdaq</ix:nonNumeric></span> Stock Market LLC</span></td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_901_edei--EntityCurrentReportingStatus_c20220101__20220331_zq7JOICmsNf9"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" name="dei:EntityCurrentReportingStatus">Yes</ix:nonNumeric></span>
&#9746; No &#9744;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"></p>

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    <div style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right">&#160;<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_905_edei--EntityInteractiveDataCurrent_c20220101__20220331_zBjLEGNcfZU5"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" name="dei:EntityInteractiveDataCurrent">Yes</ix:nonNumeric></span>
&#9746; No &#9744;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See definitions of &#8220;large accelerated filer,&#8221; &#8220;accelerated filer,&#8221; &#8220;smaller
reporting company,&#8221; and &#8220;emerging growth company&#8221; in Rule 12b-2 of the Exchange Act.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="padding: 0pt; width: 30%; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Large accelerated filer</span></td>
<td style="padding: 0pt; width: 1%; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9744;</span></td>
<td style="padding: 0pt; text-indent: 0pt; width: 38%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; width: 30%; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Accelerated filer</span></td>
<td style="padding: 0pt; width: 1%; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9744;</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_90F_edei--EntityFilerCategory_c20220101__20220331_zIBStH9D1iM5"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" format="ixt-sec:entityfilercategoryen" name="dei:EntityFilerCategory">Non-accelerated filer</ix:nonNumeric></span></span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#9746;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Smaller reporting company</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_900_edei--EntitySmallBusiness_c20220101__20220331_zI02RwYHPjlj"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" format="ixt:booleantrue" name="dei:EntitySmallBusiness">&#9746;</ix:nonNumeric></span></span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Emerging growth company</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><span id="xdx_900_edei--EntityEmergingGrowthCompany_c20220101__20220331_zUro2wggZWBh"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" format="ixt:booleantrue" name="dei:EntityEmergingGrowthCompany">&#9746;</ix:nonNumeric></span></span></td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. <span id="xdx_905_edei--EntityExTransitionPeriod_c20220101__20220331_zcQzHmolhfna"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" format="ixt:booleanfalse" name="dei:EntityExTransitionPeriod">&#9744;</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_903_edei--EntityShellCompany_c20220101__20220331_z5Qf0qk3pYX5"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" format="ixt:booleantrue" name="dei:EntityShellCompany">Yes</ix:nonNumeric></span>
&#9746; No &#9744;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of May 12, 2022, there were <span id="xdx_900_edei--EntityCommonStockSharesOutstanding_iI_c20220512__us-gaap--StatementClassOfStockAxis__custom--ClassACommonStockMember_zDZ7dCLu2kC" title="Entity Common Stock, Shares Outstanding"><ix:nonFraction name="dei:EntityCommonStockSharesOutstanding" contextRef="AsOf2022-05-12_custom_ClassACommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,855,250</ix:nonFraction></span> shares of Class A common stock, par value $0.0001 per share, and <span id="xdx_90A_edei--EntityCommonStockSharesOutstanding_iI_c20220512__us-gaap--StatementClassOfStockAxis__custom--ClassBCommonStockMember_z6uiRTdY3mKj" title="Entity Common Stock, Shares Outstanding"><ix:nonFraction name="dei:EntityCommonStockSharesOutstanding" contextRef="AsOf2022-05-12_custom_ClassBCommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,175,000</ix:nonFraction></span> shares of Class B
common stock, par value $0.0001 per share, issued and outstanding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AVALON
ACQUISITION IN INC.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>FORM
10-Q FOR THE QUARTER ENDED MARCH 31, 2022</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>TABLE
OF CONTENTS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt; width: 95%"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: black 1pt solid; padding: 0pt; width: 5%; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>Page</b></span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_001">Part I. Financial Information</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;1</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Item 1. Condensed Financial
Statements </span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_002">Condensed Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">1</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_003"> Unaudited
Condensed Statements of Operations for the Three Months Ended March 31, 2022 and March 31, 2021 </a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">2</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_004">Unaudited
Condensed Statements of Changes in Stockholders&#8217; Equity/(Deficit) for the Three Months Ended March 31, 2022 and
March 31, 2021 </a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">3</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_005">Unaudited
Condensed Statements of Cash Flows for the Three Months Ended March 31, 2022 and March 31, 2021 </a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">4</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_006">Notes to
Condensed Financial Statements (Unaudited)</a></span> </td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">5</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_007">Item 2. Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">20</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_008">Item 3.
Quantitative and Qualitative Disclosures About Market Risk</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">24</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_009">Item 4. Controls and Procedures</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">24</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_010">Part II. Other Information</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">25</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_011">Item 1. Legal Proceedings</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">25</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_012">Item 1A. Risk Factors</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">25</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_013">Item 2. Unregistered Sales of Equity Securities and Use of Proceeds</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">26</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_014">Item 3. Defaults Upon Senior Securities</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">26</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_015">Item 4. Mine Safety Disclosures</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">26</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_016">Item 5. Other Information</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">26</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_017">Item 6. Exhibits</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">26</span></td></tr>
<tr style="vertical-align: top; background-color: white">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><a href="#a_018">Part III. Signatures</a></span></td>
<td style="padding: 0pt; text-align: right; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">27</span></td></tr>
</table>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_001"></span>PART
I - FINANCIAL INFORMATION</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Item
1. Condensed Financial Statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_002"></span>AVALON
ACQUISITION INC.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>CONDENSED
BALANCE SHEETS</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" id="xdx_30E_111_zX0iiu5r6pcd" summary="xdx: Statement - CONDENSED BALANCE SHEETS (Unaudited)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">&#160;</td>
<td>&#160;</td>
<td colspan="3" id="xdx_49E_20220331_zAGNWGg1LCU" style="text-align: center">&#160;</td>
<td>&#160;</td>
<td colspan="3" id="xdx_498_20211231_zuOfT6A5umn4" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt">&#160;</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">March 31, 2022 (unaudited)</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">December 31, 2021</td></tr>
<tr id="xdx_401_eus-gaap--AssetsAbstract_iB_zTmRU3v7sT4j" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; font-weight: bold; text-align: left; text-indent: -10pt">ASSETS</td>
<td>&#160;</td>
<td colspan="3" style="text-align: center">&#160;</td>
<td>&#160;</td>
<td colspan="3" style="text-align: center">&#160;</td></tr>
<tr id="xdx_404_eus-gaap--AssetsCurrentAbstract_i01B_zGaIhiZQCUPk" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Current assets:</td>
<td>&#160;</td>
<td colspan="3" style="text-align: center">&#160;</td>
<td>&#160;</td>
<td colspan="3" style="text-align: center">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--CashAndCashEquivalentsAtCarryingValue_i02I_maCz44H_z7bPB7LNipf8" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 20pt; width: 56%; text-indent: -10pt">Cash</td>
<td style="width: 8%">&#160;</td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 12%; text-align: right"><ix:nonFraction name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">730,120</ix:nonFraction></td>
<td style="width: 1%; text-align: left">&#160;</td>
<td style="width: 8%">&#160;</td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 12%; text-align: right"><ix:nonFraction name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,036,693</ix:nonFraction></td>
<td style="width: 1%; text-align: left">&#160;</td></tr>
<tr id="xdx_40E_eus-gaap--PrepaidExpenseCurrent_i02I_maCz44H_zLaEnb52fGVj" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Prepaid expenses</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseCurrent" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">570,195</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:PrepaidExpenseCurrent" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">522,874</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_40F_eus-gaap--AssetsCurrent_i01TI_mtCz44H_maCzwHE_zOeDaUsbZS78" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Total current assets</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:AssetsCurrent" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,300,315</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:AssetsCurrent" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">1,559,567</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_400_eus-gaap--AssetsHeldInTrust_i01I_maCzwHE_zR7Jbm8iMHg7" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Investments held in trust account</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:AssetsHeldInTrust" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">210,130,244</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:AssetsHeldInTrust" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">210,109,087</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_403_eus-gaap--Assets_iTI_mtCzwHE_zdMhvZxkz0eg" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; font-weight: bold; text-align: left; text-indent: -10pt">Total Assets</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:Assets" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">211,430,559</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:Assets" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">211,668,654</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40C_eus-gaap--LiabilitiesAbstract_iB_zj6QDyBDTKOc" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>Liabilities, Class A Common Stock Subject to Possible</b></span> <span style="font: 10pt Times New Roman, Times, Serif"><b>&#160;</b></span> <span style="font: 10pt Times New Roman, Times, Serif"><b>Redemption and Stockholders&#8217; Deficit</b></span></td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_409_eus-gaap--LiabilitiesCurrentAbstract_i01B_zg0usv3RtCzj" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Current Liabilities:</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40A_eus-gaap--AccountsPayableCurrent_i02I_maCz3xe_zpAk5SRhG5y7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Accounts payable</td>
<td>&#160;</td>
<td style="text-align: left">$</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableCurrent" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">100,391</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">$</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:AccountsPayableCurrent" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">136,502</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--SalesAndExciseTaxPayableCurrent_i02I_d0_maCz3xe_zcxEXr8n3h78" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Franchise tax payable</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:SalesAndExciseTaxPayableCurrent" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">50,000</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:SalesAndExciseTaxPayableCurrent" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">123,338</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_403_eus-gaap--LiabilitiesCurrent_i01TI_mtCz3xe_maCzctk_zBNSx3MFf2xa" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Total current liabilities</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesCurrent" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">150,391</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesCurrent" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">259,840</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--OtherLiabilitiesCurrent_i01I_zskBB56tlvG2" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Other liabilities:</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_402_eus-gaap--ExtendedProductWarrantyAccrual_i01I_maCzctk_zI1VEITbUlz" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Derivative warrant liabilities</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:ExtendedProductWarrantyAccrual" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">5,433,750</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:ExtendedProductWarrantyAccrual" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">9,213,750</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_409_ecustom--DeferredUnderwritingCommissions_i01I_maCzctk_zvTibLKlk9a8" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Deferred underwriting compensation</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="AVACU:DeferredUnderwritingCommissions" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">7,245,000</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="AVACU:DeferredUnderwritingCommissions" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">7,245,000</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_40C_eus-gaap--Liabilities_i01TI_mtCzctk_maCze53_maLASEzmJQ_zhIbwfKg1iG1" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Total liabilities</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:Liabilities" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">12,829,141</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:Liabilities" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">16,718,590</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40D_eus-gaap--CommitmentsAndContingencies_iI_z897X1EvCEUl" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; font-weight: bold; text-align: left; text-indent: -10pt">Commitments and contingencies</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40A_eus-gaap--TemporaryEquityValueExcludingAdditionalPaidInCapital_iI_maCze53_zDbAKzhn3cq7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Class A common stock, par value $<span id="xdx_903_eus-gaap--TemporaryEquityParOrStatedValuePerShare_iI_c20220331_zRVZXoxaZ0j3" title="Temporary Equity, Par or Stated Value Per Share"><span id="xdx_909_eus-gaap--TemporaryEquityParOrStatedValuePerShare_c20211231_pdd" title="Temporary Equity, Par or Stated Value Per Share"><ix:nonFraction name="us-gaap:TemporaryEquityParOrStatedValuePerShare" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:TemporaryEquityParOrStatedValuePerShare" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></ix:nonFraction></span></span> per share, <span id="xdx_90D_eus-gaap--TemporaryEquitySharesAuthorized_iI_c20220331_zoF6FkSWxo04" title="Temporary Equity, Shares Authorized"><span id="xdx_903_eus-gaap--TemporaryEquitySharesAuthorized_c20211231_pdd" title="Temporary Equity, Shares Authorized"><ix:nonFraction name="us-gaap:TemporaryEquitySharesAuthorized" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:TemporaryEquitySharesAuthorized" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">100,000,000</ix:nonFraction></ix:nonFraction></span></span> shares authorized; <span id="xdx_905_eus-gaap--SharesSubjectToMandatoryRedemptionSettlementTermsNumberOfShares_c20220331_pdd" title="Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Number of Shares"><span id="xdx_904_eus-gaap--SharesSubjectToMandatoryRedemptionSettlementTermsNumberOfShares_c20211231_pdd" title="Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Number of Shares"><ix:nonFraction name="us-gaap:SharesSubjectToMandatoryRedemptionSettlementTermsNumberOfShares" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:SharesSubjectToMandatoryRedemptionSettlementTermsNumberOfShares" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,700,000</ix:nonFraction></ix:nonFraction></span></span> shares subject to possible redemption at $<span id="xdx_907_eus-gaap--TemporaryEquityRedemptionPricePerShare_c20220331_pdd" title="Temporary Equity, Redemption Price Per Share"><span id="xdx_900_eus-gaap--TemporaryEquityRedemptionPricePerShare_c20211231_pdd" title="Temporary Equity, Redemption Price Per Share"><ix:nonFraction name="us-gaap:TemporaryEquityRedemptionPricePerShare" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:TemporaryEquityRedemptionPricePerShare" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">10.15</ix:nonFraction></ix:nonFraction></span></span> per share</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:TemporaryEquityValueExcludingAdditionalPaidInCapital" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">210,105,000</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:TemporaryEquityValueExcludingAdditionalPaidInCapital" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">210,105,000</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_407_eus-gaap--StockholdersEquityAbstract_iB" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; font-weight: bold; text-align: left; text-indent: -10pt">Stockholders&#8217; (Deficit) </td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40B_eus-gaap--PreferredStockValue_i01I_pp0p0_d0_maSEzv4p_zsMMrG5XnTAi" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Preferred stock, $<span id="xdx_906_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_c20220331_zqPzOcy2RAJ7" title="Preferred Stock, Par or Stated Value Per Share"><span id="xdx_905_eus-gaap--PreferredStockParOrStatedValuePerShare_iI_c20211231_zNwbbv9Khw93"><ix:nonFraction name="us-gaap:PreferredStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:PreferredStockParOrStatedValuePerShare" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></ix:nonFraction></span></span> par value; <span id="xdx_906_eus-gaap--PreferredStockSharesAuthorized_iI_c20220331_zlP5ofUQUvHa" title="Preferred Stock, Shares Authorized"><span id="xdx_908_eus-gaap--PreferredStockSharesAuthorized_iI_c20211231_z5dEaqKschTe"><ix:nonFraction name="us-gaap:PreferredStockSharesAuthorized" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesAuthorized" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">1,000,000</ix:nonFraction></ix:nonFraction></span></span> shares authorized; <span id="xdx_907_eus-gaap--PreferredStockSharesIssued_iI_dn_c20220331_zlnT81KVcDaj" title="Preferred Stock, Shares Issued"><span id="xdx_907_eus-gaap--PreferredStockSharesIssued_iI_dn_c20211231_zfYHYCA84FW7"><span id="xdx_905_eus-gaap--PreferredStockSharesOutstanding_iI_dn_c20211231_zzpqNYIRwoQf" title="Preferred Stock, Shares Outstanding"><span id="xdx_904_eus-gaap--PreferredStockSharesOutstanding_iI_dn_c20220331_zkFqXuU8TUxi" title="Preferred Stock, Shares Outstanding"><ix:nonFraction name="us-gaap:PreferredStockSharesIssued" contextRef="AsOf2022-03-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesIssued" contextRef="AsOf2021-12-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesOutstanding" contextRef="AsOf2021-12-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesOutstanding" contextRef="AsOf2022-03-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares">none</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></span></span></span></span> issued and outstanding</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:PreferredStockValue" contextRef="AsOf2022-03-31" format="ixt:zerodash" decimals="0" scale="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:PreferredStockValue" contextRef="AsOf2021-12-31" format="ixt:zerodash" decimals="0" scale="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Class&#160;A common stock, $<span id="xdx_90E_eus-gaap--CommonStockParOrStatedValuePerShare_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdd" title="Common Stock, Par or Stated Value Per Share"><span id="xdx_90F_eus-gaap--CommonStockParOrStatedValuePerShare_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdd" title="Common Stock, Par or Stated Value Per Share"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></ix:nonFraction></span></span>
par value; <span id="xdx_90B_eus-gaap--CommonStockSharesAuthorized_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdd" title="Common Stock, Shares Authorized"><span id="xdx_90C_eus-gaap--CommonStockSharesAuthorized_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdd" title="Common Stock, Shares Authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">100,000,000</ix:nonFraction></ix:nonFraction></span></span>
shares authorized; <span id="xdx_90F_eus-gaap--CommonStockSharesOutstanding_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdd" title="Common Stock, Shares, Outstanding"><span id="xdx_907_eus-gaap--CommonStockSharesIssued_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_z0YvY4w3Hd1i" title="Common Stock, Shares, Issued"><span id="xdx_90E_eus-gaap--CommonStockSharesOutstanding_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdd" title="Common Stock, Shares, Outstanding"><span id="xdx_901_eus-gaap--CommonStockSharesIssued_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zg6Cx8Mg4nM9" title="Common Stock, Shares, Issued"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">155,250</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></span></span></span></span>
non-redeemable shares issued and outstanding (excluding 20,700,000 common shares subject to possible redemption)</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_987_eus-gaap--CommonStockValue_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pp0p0" title="Common Stock, Value, Issued" style="text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">15</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_988_eus-gaap--CommonStockValue_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdp0" title="Common Stock, Value, Issued" style="text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">15</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Class&#160;B common stock, $<span id="xdx_90F_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_zYFERGkPzGeg" title="Common Stock, Par or Stated Value Per Share"><span id="xdx_90E_eus-gaap--CommonStockParOrStatedValuePerShare_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_pdd" title="Common Stock, Par or Stated Value Per Share"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2021-12-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></ix:nonFraction></span></span> par value; <span id="xdx_904_eus-gaap--CommonStockSharesAuthorized_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_zVkyiWUyUsbd" title="Common Stock, Shares Authorized"><span id="xdx_90B_eus-gaap--CommonStockSharesAuthorized_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_pdd" title="Common Stock, Shares Authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2022-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-12-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">10,000,000</ix:nonFraction></ix:nonFraction></span></span> shares authorized;<span id="xdx_90C_eus-gaap--CommonStockSharesOutstanding_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_pdd" title="Common Stock, Shares, Outstanding"> <span id="xdx_90F_eus-gaap--CommonStockSharesOutstanding_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_pdd" title="Common Stock, Shares, Outstanding"><span id="xdx_90D_eus-gaap--CommonStockSharesIssued_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_zvwgaWaMmf5k" title="Common Stock, Shares, Issued"><span id="xdx_906_eus-gaap--CommonStockSharesIssued_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_z1HcacMKu6Ha" title="Common Stock, Shares, Issued"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2022-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2021-12-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2022-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2021-12-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,175,000</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></span></span></span></span> shares issued and outstanding</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_986_eus-gaap--CommonStockValue_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_pp0p0" title="Common Stock, Value, Issued" style="text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2022-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">518</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_987_eus-gaap--CommonStockValue_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_pp0p0" title="Common Stock, Value, Issued" style="text-align: right"><ix:nonFraction name="us-gaap:CommonStockValue" contextRef="AsOf2021-12-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">518</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40C_eus-gaap--AdditionalPaidInCapital_iI_d0_maCzQ6S_maSEzv4p_zG6k10uFgS0j" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Additional paid-in capital</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:AdditionalPaidInCapital" contextRef="AsOf2022-03-31" format="ixt:zerodash" decimals="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:AdditionalPaidInCapital" contextRef="AsOf2021-12-31" format="ixt:zerodash" decimals="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40D_eus-gaap--RetainedEarningsAccumulatedDeficit_iI_maCzQ6S_maSEzv4p_zLsjcr9NLIOd" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Accumulated deficit</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">11,504,115</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:RetainedEarningsAccumulatedDeficit" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">15,155,469</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr id="xdx_402_eus-gaap--StockholdersEquity_iTI_pp0p0_mtSEzv4p_maLASEzmJQ_zBA5mKAOIWa1" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 1pt 10pt; text-align: left; text-indent: -10pt">Total stockholders&#8217; deficit</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" sign="-" unitRef="USD">11,503,582</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" sign="-" unitRef="USD">15,154,936</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr id="xdx_407_eus-gaap--LiabilitiesAndStockholdersEquity_iTI_pp0p0_mtLASEzmJQ_zlKmRUX3m703" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; font-weight: bold; text-align: left; text-indent: -10pt">Total liabilities and stockholders&#8217; deficit</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesAndStockholdersEquity" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">211,430,559</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:LiabilitiesAndStockholdersEquity" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">211,668,654</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
</table>



<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
accompanying notes are an integral part of these condensed financial statements. </i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_003"></span>AVALON
ACQUISITION INC.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>UNAUDITED
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; text-align: left; text-indent: 0pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_496_20220101__20220331_z0ldp5w4bvZi" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_499_20210101__20210331_zyGy0cTjGrhg" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td style="padding: 0pt; text-align: center; text-indent: 0pt">&#160;</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Three Months Ended March 31, 2022 </td>
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<tr id="xdx_404_eus-gaap--GeneralAndAdministrativeExpense_maCzyJ2_zP3kES6kPE9" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<td style="width: 8%">&#160;</td>
<td style="width: 1%; text-align: left">$</td>
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<td style="width: 1%; text-align: left">&#160;</td>
<td style="width: 8%">&#160;</td>
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<td style="padding-bottom: 1pt">&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="AVACU:GeneralAndAdministrativeExpensesRelatedParty" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">30,000</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="AVACU:GeneralAndAdministrativeExpensesRelatedParty" contextRef="From2021-01-012021-03-31" format="ixt:zerodash" decimals="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
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<td style="padding: 0pt 0pt 1pt; text-align: left; text-indent: 0pt">Franchise tax expense</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="AVACU:FranchiseTaxExpense" contextRef="From2021-01-012021-03-31" format="ixt:zerodash" decimals="0" unitRef="USD">&#8212;</ix:nonFraction></td>
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<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Total operating expenses</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
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<td style="text-align: left">)</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
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<td style="padding: 0pt; text-align: left; text-indent: 0pt">Income earned on investments held in Trust Account</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:MarketableSecuritiesUnrealizedGainLoss" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">21,157</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:MarketableSecuritiesUnrealizedGainLoss" contextRef="From2021-01-012021-03-31" format="ixt:zerodash" decimals="0" scale="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_408_eus-gaap--FairValueAdjustmentOfWarrants_iN_di0_msCzITm_zeMX4ZleqATa" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; text-align: left; text-indent: 0pt">Change in fair value of derivative warrant liabilities</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:FairValueAdjustmentOfWarrants" contextRef="From2021-01-012021-03-31" format="ixt:zerodash" decimals="0" sign="-" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
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<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Net Income/(Loss)</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
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<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
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<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Weighted average common shares outstanding, basic and diluted</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Class A</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
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<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_980_ecustom--WeightedAverageNumberOfSharesOutstandingBasicAndDiluted_d0_c20210101__20210331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zhJjgOYPl4rd" title="Weighted Average Number of Shares Outstanding, Basic and Diluted" style="text-align: right"><ix:nonFraction name="AVACU:WeightedAverageNumberOfSharesOutstandingBasicAndDiluted" contextRef="From2021-01-012021-03-31_custom_CommonStockClassAMember" format="ixt:zerodash" decimals="INF" unitRef="Shares">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
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<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Class B</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_982_ecustom--WeightedAverageNumberOfSharesOutstandingBasicAndDiluted_c20220101__20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_pdd" title="Weighted Average Number of Shares Outstanding, Basic and Diluted" style="text-align: right"><ix:nonFraction name="AVACU:WeightedAverageNumberOfSharesOutstandingBasicAndDiluted" contextRef="From2022-01-012022-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,175,000</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_981_ecustom--WeightedAverageNumberOfSharesOutstandingBasicAndDiluted_c20210101__20210331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_zNBKgaeHF7Zh" title="Weighted Average Number of Shares Outstanding, Basic and Diluted" style="text-align: right"><ix:nonFraction name="AVACU:WeightedAverageNumberOfSharesOutstandingBasicAndDiluted" contextRef="From2021-01-012021-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">4,500,000</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Basic and diluted net income/(loss) per common share</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Class A</td>
<td>&#160;</td>
<td style="text-align: left">$</td>
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<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_982_ecustom--EarningPerShareBasicAndDiluted_d0_c20210101__20210331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zf42GwNHb9b3" title="Basic and diluted net income/(loss) per share" style="text-align: right"><ix:nonFraction name="AVACU:EarningPerShareBasicAndDiluted" contextRef="From2021-01-012021-03-31_custom_CommonStockClassAMember" format="ixt:zerodash" decimals="INF" unitRef="USDPShares">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Class B</td>
<td>&#160;</td>
<td style="text-align: left">$</td>
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<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">$</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
accompanying notes are an integral part of these condensed financial statements. </i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_004"></span>AVALON
ACQUISITION INC.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>UNAUDITED
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" id="xdx_303_114_z5advMgflaR" summary="xdx: Statement - UNAUDITED CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS&apos; EQUITY/(DEFICIT)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4BA_us-gaap--StatementEquityComponentsAxis_custom--ClassACommonStockMember_zUe1pfXy6PD2" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4B5_us-gaap--StatementEquityComponentsAxis_custom--ClassBCommonStockMember_zZRL4uqnHXeh" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4BB_us-gaap--StatementEquityComponentsAxis_us-gaap--AdditionalPaidInCapitalMember_zSCqTWuG0n8d" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4B5_us-gaap--StatementEquityComponentsAxis_us-gaap--RetainedEarningsMember_zKLTqgHCgOyi" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4BE_zbHbws45QTi9" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td colspan="29" style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt"><b>For the Three Months Ended March 31, 2022</b></td></tr>
<tr style="vertical-align: bottom">
<td colspan="29" style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt">&#160;</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="15" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Common Stock</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td colspan="11" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt">&#160;</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Class A</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Class B</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="font-weight: bold; text-align: center">Additional Paid-in</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="font-weight: bold; text-align: center">Accumulated</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<td style="padding: 0pt 0pt 0pt 10pt; text-align: center; text-indent: -10pt">&#160;</td>
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<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
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<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
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<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
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<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
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<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
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<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
<td style="width: 5%; font-weight: bold; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0229">&#8212;</span></td>
<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
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<td style="width: 1%; font-weight: bold; text-align: left">)</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
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<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Net income</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0236">&#8212;</span></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0237">&#8212;</span></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0238">&#8212;</span></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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<td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_437_c20220101__20220331_eus-gaap--StockholdersEquity_iE_zQpTXcmroJYc" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; font-weight: bold; text-indent: -10pt">Balance at March 31, 2022 (unaudited)</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
<td id="xdx_984_eus-gaap--SharesOutstanding_iE_c20220101__20220331__us-gaap--StatementEquityComponentsAxis__custom--ClassACommonStockMember_zfoMt8AWVse9" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2022-03-31_custom_ClassACommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">155,250</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2022-03-31_custom_ClassACommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">15</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
<td id="xdx_987_eus-gaap--SharesOutstanding_iE_c20220101__20220331__us-gaap--StatementEquityComponentsAxis__custom--ClassBCommonStockMember_zIxQ93eMfSfk" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2022-03-31_custom_ClassBCommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,175,000</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2022-03-31_custom_ClassBCommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">518</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0244">&#8212;</span></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
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<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">11,503,582</ix:nonFraction></td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 20pt; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; text-indent: -10pt; padding-left: 10pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4BA_us-gaap--StatementEquityComponentsAxis_custom--ClassACommonStockMember_zpOhCloZrs8e" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4B5_us-gaap--StatementEquityComponentsAxis_custom--ClassBCommonStockMember_zMgLnY1fbcKd" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4BB_us-gaap--StatementEquityComponentsAxis_us-gaap--AdditionalPaidInCapitalMember_zSDu592S1Qv8" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4B5_us-gaap--StatementEquityComponentsAxis_us-gaap--RetainedEarningsMember_z9a6xuzwubRe" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_4BE_zq8vHqA1Hij2" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td colspan="29" style="text-align: center"><span style="font-size: 10pt"><b>For the Three Months Ended March 31, 2021</b></span><b><span style="font-size: 8pt">&#160;</span></b></td></tr>
<tr style="vertical-align: bottom">
<td colspan="29" style="text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt">&#160;</td>
<td style="padding-bottom: 1pt"><b>&#160;</b></td>
<td colspan="15" style="border-bottom: Black 1pt solid; text-align: center"><span style="font-size: 10pt"><b>Common Stock&#160;&#160;</b></span></td>
<td colspan="12" style="padding-bottom: 1pt; text-align: center">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td style="padding-bottom: 1pt; text-align: center">&#160;</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Class A</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="7" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Class B</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="font-weight: bold; text-align: center">Additional Paid-in</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="font-weight: bold; text-align: center">Accumulated</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="font-weight: bold; text-align: center">Total Stockholders&#146;</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: center">&#160;</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Shares</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Shares</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Amount</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Capital</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Deficit</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">Equity</td></tr>
<tr id="xdx_43C_c20210101__20210331_eus-gaap--StockholdersEquity_iS_z6ddBVoz4S7g" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 37%; font-weight: bold; text-indent: -10pt; padding-left: 10pt">Balance at December 31, 2020</td>
<td style="width: 2%">&#160;</td>
<td style="width: 1%; text-align: left">&#160;</td>
<td style="width: 5%; text-align: right">&#151;</td>
<td style="width: 1%; text-align: left">&#160;</td>
<td style="width: 2%">&#160;</td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 5%; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0250">&#151;</span></td>
<td style="width: 1%; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td id="xdx_984_eus-gaap--SharesOutstanding_iS_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__custom--ClassBCommonStockMember_zycc3UWWJoC8" style="width: 5%; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2020-12-31_custom_ClassBCommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,175,000</ix:nonFraction></td>
<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
<td style="width: 5%; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31_custom_ClassBCommonStockMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">518</ix:nonFraction></td>
<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
<td style="width: 5%; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31_us-gaap_AdditionalPaidInCapitalMember" format="ixt:numdotdecimal" decimals="0" unitRef="USD">24,482</ix:nonFraction></td>
<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
<td style="width: 5%; font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">1,497</ix:nonFraction></td>
<td style="width: 1%; font-weight: bold; text-align: left">)</td>
<td style="width: 2%; font-weight: bold">&#160;</td>
<td style="width: 1%; font-weight: bold; text-align: left">$</td>
<td style="width: 5%; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:StockholdersEquity" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">23,503</ix:nonFraction></td>
<td style="width: 1%; font-weight: bold; text-align: left">&#160;</td></tr>
<tr id="xdx_40A_eus-gaap--ProfitLoss_zeuKf7SLtHRi" style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; text-indent: -10pt; padding-left: 10pt">Net loss</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0257">&#151;</span></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">&#8212;</td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0258">&#151;</span></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0259">&#151;</span></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="us-gaap:ProfitLoss" contextRef="From2021-01-012021-03-31_us-gaap_RetainedEarningsMember" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">450</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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<td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr id="xdx_437_c20210101__20210331_eus-gaap--StockholdersEquity_iE_ztQpGqDtStse" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-weight: bold; padding-bottom: 2.5pt; text-indent: -10pt; padding-left: 10pt">Balance at March 31, 2021 (unaudited) </td>
<td style="padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; text-align: left">&#160;</td>
<td style="border-bottom: Black 2.5pt double; text-align: right">&#151;</td>
<td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
<td style="padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0263">&#151;</span></td>
<td style="padding-bottom: 2.5pt; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">&#160;</td>
<td id="xdx_981_eus-gaap--SharesOutstanding_iE_c20210101__20210331__us-gaap--StatementEquityComponentsAxis__custom--ClassBCommonStockMember_zrrYZeDsqVd1" style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:SharesOutstanding" contextRef="AsOf2021-03-31_custom_ClassBCommonStockMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,175,000</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
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<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
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<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
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<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">)</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
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<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
</table>






<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span>&#160;&#160;&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
accompanying notes are an integral part of these condensed financial statements. </i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>AVALON
ACQUISTION INC.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>UNAUDITED</b>&#160;<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_005"></span>CONDENSED
STATEMENTS OF CASH FLOWS </b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" id="xdx_304_112_zpBu6KG6ZeX3" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; text-align: left; text-indent: 0pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_496_20220101__20220331_zvWnFtYsWz38" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td id="xdx_49C_20210101__20210331_znhaV9cNDHRe" style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom">
<td style="padding: 0pt; text-align: center; text-indent: 0pt">&#160; &#160;</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; font-weight: bold; text-align: center">For the Three Months Ended March 31, 2022</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td colspan="3" style="border-bottom: Black 1pt solid; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>For the Three Months Ended March 31, 2021 </b></span></td></tr>
<tr id="xdx_404_eus-gaap--NetCashProvidedByUsedInOperatingActivitiesAbstract_iB_zbSq7qiFqbC5" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Cash flows from operating activities:</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_404_eus-gaap--NetIncomeLoss_maCzD4D_zG40BIxbkQ7j" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; width: 56%; text-align: left; text-indent: 0pt">Net income/(loss)</td>
<td style="width: 8%">&#160;</td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 12%; text-align: right"><ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">3,651,354</ix:nonFraction></td>
<td style="width: 1%; text-align: left">&#160;</td>
<td style="width: 8%">&#160;</td>
<td style="width: 1%; text-align: left">$</td>
<td style="width: 12%; text-align: right">(<ix:nonFraction name="us-gaap:NetIncomeLoss" contextRef="From2021-01-012021-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">450</ix:nonFraction></td>
<td style="width: 1%; text-align: left">)</td></tr>
<tr id="xdx_40E_eus-gaap--AdjustmentsToReconcileNetIncomeLossToCashProvidedByUsedInOperatingActivitiesAbstract_iB_zXeTRIQ9UK7a" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt; text-align: left; text-indent: 0pt">Adjustments to reconcile net income/(loss) to net cash used in
operating activities:</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_402_eus-gaap--DebtSecuritiesUnrealizedGainLoss_iN_di0_msCzD4D_zEs60WjMY3N" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Income earned on investments held in Trust Account</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">(<ix:nonFraction name="us-gaap:DebtSecuritiesUnrealizedGainLoss" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">21,157</ix:nonFraction></td>
<td style="text-align: left">)</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="us-gaap:DebtSecuritiesUnrealizedGainLoss" contextRef="From2021-01-012021-03-31" format="ixt:zerodash" decimals="0" sign="-" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40E_ecustom--FairValueAdjustmentsOfWarrants_d0_maCzD4D_zWQyRfrJFAM" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Change in fair value of derivative warrant liabilities</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">(<ix:nonFraction name="AVACU:FairValueAdjustmentsOfWarrants" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">3,780,000</ix:nonFraction></td>
<td style="text-align: left">)</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right"><ix:nonFraction name="AVACU:FairValueAdjustmentsOfWarrants" contextRef="From2021-01-012021-03-31" format="ixt:zerodash" decimals="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_402_eus-gaap--IncreaseDecreaseInOperatingCapitalAbstract_iB_zOBTL755Rezl" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; text-align: left; text-indent: 0pt">Changes in operating assets and liabilities:</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_405_eus-gaap--IncreaseDecreaseInPrepaidExpense_i01N_di0_msCzD4D_zvIAZPLkko8h" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Prepaid expenses</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInPrepaidExpense" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">47,321</ix:nonFraction></td>
<td style="text-align: left">)</td>
<td style="font-weight: bold">&#160;</td>
<td style="font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:IncreaseDecreaseInPrepaidExpense" contextRef="From2021-01-012021-03-31" format="ixt:zerodash" decimals="0" sign="-" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="font-weight: bold; text-align: left">&#160;</td></tr>
<tr id="xdx_40E_eus-gaap--IncreaseDecreaseInAccountsPayable_i01_maCzD4D_zSPZdTCvWcc9" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Accounts payable</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayable" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">36,111</ix:nonFraction></td>
<td style="text-align: left">)</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">(<ix:nonFraction name="us-gaap:IncreaseDecreaseInAccountsPayable" contextRef="From2021-01-012021-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">1,497</ix:nonFraction></td>
<td style="text-align: left">)</td></tr>
<tr id="xdx_406_ecustom--IncreaseDecreaseInFranchaiseTaxPayable_maCzD4D_zPgBGkv7oww4" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: 0pt">Franchise tax payable</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right">(<ix:nonFraction name="AVACU:IncreaseDecreaseInFranchaiseTaxPayable" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">73,338</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">)</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><span style="-sec-ix-hidden: xdx2ixbrl0295">&#8212;</span></td>
<td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td></tr>
<tr id="xdx_406_eus-gaap--NetCashProvidedByUsedInOperatingActivities_iT_mtCzD4D_maCze07_zUDcROuMA5Xd" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Net cash used in operating activities</td>
<td style="font-weight: bold">&#160;</td>
<td style="font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">306,573</ix:nonFraction></td>
<td style="font-weight: bold; text-align: left">)</td>
<td style="font-weight: bold">&#160;</td>
<td style="font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInOperatingActivities" contextRef="From2021-01-012021-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">1,947</ix:nonFraction></td>
<td style="font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt; text-indent: 0pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_409_eus-gaap--NetCashProvidedByUsedInFinancingActivitiesAbstract_iB_zeKwnPAUPF6f" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Cash flows from Financing Activities</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_404_eus-gaap--PaymentsOfDebtIssuanceCosts_iN_di0_msCz6md_zQYaUSInOUZg" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt; font-style: normal; font-weight: normal; text-align: left; text-indent: 0pt">Payment of offering costs</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;<ix:nonFraction name="us-gaap:PaymentsOfDebtIssuanceCosts" contextRef="From2022-01-01to2022-03-31" format="ixt:zerodash" decimals="0" sign="-" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;(<ix:nonFraction name="us-gaap:PaymentsOfDebtIssuanceCosts" contextRef="From2021-01-012021-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">156,794</ix:nonFraction></td>
<td style="text-align: left">)&#160;</td></tr>
<tr id="xdx_401_eus-gaap--ProceedsFromRelatedPartyDebt_i01_d0_maCz6md_zA0X1IP31y72" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; text-align: left; text-indent: 0pt">Proceeds from note payable to related party</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:ProceedsFromRelatedPartyDebt" contextRef="From2022-01-01to2022-03-31" format="ixt:zerodash" decimals="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="padding-bottom: 1pt; font-weight: bold; text-align: left">&#160;</td>
<td style="padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="us-gaap:ProceedsFromRelatedPartyDebt" contextRef="From2021-01-012021-03-31" format="ixt:numdotdecimal" decimals="0" unitRef="USD">150,000</ix:nonFraction></td>
<td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
<tr id="xdx_404_eus-gaap--NetCashProvidedByUsedInFinancingActivities_iT_d0_mtCz6md_maCze07_zZRiTfuSuma7" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Net cash used in financing
activities</td>
<td style="font-weight: bold">&#160;</td>
<td style="font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; text-align: right"><ix:nonFraction name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="From2022-01-01to2022-03-31" format="ixt:zerodash" decimals="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold">&#160;</td>
<td style="font-weight: bold; text-align: left">&#160;</td>
<td style="font-weight: bold; text-align: right">(<ix:nonFraction name="us-gaap:NetCashProvidedByUsedInFinancingActivities" contextRef="From2021-01-012021-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">6,794</ix:nonFraction></td>
<td style="font-weight: bold; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; text-indent: 0pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40A_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect_iT_mtCze07_zjoNTHOh1ye8" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Net Change in Cash</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">(<ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">306,573</ix:nonFraction></td>
<td style="text-align: left">)</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">(<ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect" contextRef="From2021-01-012021-03-31" format="ixt:numdotdecimal" decimals="0" sign="-" unitRef="USD">8,741</ix:nonFraction></td>
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<td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td>
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<td style="padding-bottom: 1pt; text-align: left">&#160;</td>
<td style="font-weight: bold; padding-bottom: 1pt">&#160;</td>
<td style="border-bottom: Black 1pt solid; font-weight: bold; text-align: left">&#160;</td>
<td style="border-bottom: Black 1pt solid; font-style: normal; font-weight: normal; text-align: right"><ix:nonFraction name="us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents" contextRef="AsOf2020-12-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">12,500</ix:nonFraction></td>
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<tr id="xdx_40D_eus-gaap--CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents_iE_pp0p0" style="vertical-align: bottom; background-color: rgb(204,238,255)">
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<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
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<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; text-indent: 0pt">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40C_eus-gaap--CashFlowNoncashInvestingAndFinancingActivitiesDisclosureAbstract_iB_z2opAhwpEdyc" style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding: 0pt; font-weight: bold; text-align: left; text-indent: 0pt">Supplemental Disclosures of Non-Cash investing and financing activities:</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td>
<td>&#160;</td>
<td style="text-align: left">&#160;</td>
<td style="text-align: right">&#160;</td>
<td style="text-align: left">&#160;</td></tr>
<tr id="xdx_40F_ecustom--DeferredOfferingCostsIncludedInAccruedOfferingCosts_d0_zrKIWmR1OtO4" style="vertical-align: bottom; background-color: White">
<td style="padding: 0pt; text-align: left; text-indent: 0pt">Deferred offering costs included in accrued offering costs</td>
<td style="font-weight: bold; padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: left">$</td>
<td style="border-bottom: Black 2.5pt double; font-weight: bold; text-align: right"><ix:nonFraction name="AVACU:DeferredOfferingCostsIncludedInAccruedOfferingCosts" contextRef="From2022-01-01to2022-03-31" format="ixt:zerodash" decimals="0" unitRef="USD">&#8212;</ix:nonFraction></td>
<td style="padding-bottom: 2.5pt; font-weight: bold; text-align: left">&#160;</td>
<td style="padding-bottom: 2.5pt">&#160;</td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>The
accompanying notes are an integral part of these condensed financial statements. </i></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 6pt 0; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_006"></span>AVALON
ACQUISTION INC.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTES
TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:BusinessDescriptionAndBasisOfPresentationTextBlock"><p id="xdx_807_eus-gaap--BusinessDescriptionAndBasisOfPresentationTextBlock_zOiWXCcJ5MD1" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
1 &#8212; <span id="xdx_827_zk7WbtNdKwle">DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS </span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Avalon
Acquisition Inc. (the &#8220;Company&#8221;) was incorporated in Delaware on October 12, 2020. The Company was 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 (the &#8220;Business Combination&#8221;). The Company has initiated discussions with potential business combination
targets, though it has not selected any business combination target.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Although
the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company
intends to focus on businesses that are in the financial services and financial technologies industries. The Company is an early stage
and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth
companies.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2022, the Company had not commenced any operations. All activity for the period from October 12, 2020 (inception) through
March 31, 2022 relates to the Company&#8217;s formation, the initial public offering (&#8220;Initial Public Offering&#8221;), which is
described below, and identifying a target company for a Business Combination. The Company will not generate any operating revenues until
after the completion of its initial Business Combination, at the earliest. The Company currently generates&#160;non-operating&#160;income
in the form of income from the proceeds derived from the Initial Public Offering.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
registration statement for the Company&#8217;s Initial Public Offering was declared effective on October 5, 2021. On October 8, 2021,
the Company consummated the Initial Public Offering of <span id="xdx_907_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pdd" title="Stock Issued During Period, Shares, New Issues"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_us-gaap_CommonClassAMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,700,000</ix:nonFraction></span> units (the &#8220;Units&#8221; and, with respect to the shares of Class
A common stock included in the Units sold, the &#8220;Public Shares&#8221;), which includes the full exercise by the underwriter of the
over-allotment option to purchase an additional <span id="xdx_90D_ecustom--AdditionalOptionPurchase_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pdd" title="Additional option purchase"><ix:nonFraction name="AVACU:AdditionalOptionPurchase" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_us-gaap_CommonClassAMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">2,700,000</ix:nonFraction></span> Units, at $<span id="xdx_90B_eus-gaap--SharePrice_iI_c20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__custom--WarrantsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zYTIjXipgU9h" title="Share Price"><ix:nonFraction name="us-gaap:SharePrice" contextRef="AsOf2022-03-31_custom_UnderwriterMember_custom_WarrantsMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">10.00</ix:nonFraction></span> per Unit, generating gross proceeds of $<span id="xdx_905_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pp0p0" title="Stock Issued During Period, Value, New Issues"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_us-gaap_CommonClassAMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">207,000,000</ix:nonFraction></span>, which
is described in Note 3.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Simultaneously
with the closing of the Initial Public Offering, the Company consummated the sale of <span id="xdx_90B_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__custom--WarrantsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pdd" title="Sale of Stock, Number of Shares Issued in Transaction"><ix:nonFraction name="us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_custom_WarrantsMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">8,100,000</ix:nonFraction></span> warrants (each, a &#8220;Private Placement
Warrant&#8221; and, collectively, the &#8220;Private Placement Warrants&#8221;) at a price of $<span id="xdx_90C_eus-gaap--SaleOfStockPricePerShare_c20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__custom--WarrantsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pdd" title="Sale of Stock, Price Per Share"><ix:nonFraction name="us-gaap:SaleOfStockPricePerShare" contextRef="AsOf2022-03-31_custom_UnderwriterMember_custom_WarrantsMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">1.00</ix:nonFraction></span> per Private Placement Warrant in
a private placement to Avalon Acquisition Holdings, LLC (the &#8220;Sponsor&#8221;), generating gross proceeds of $<span id="xdx_90B_eus-gaap--ProceedsFromIssuanceOrSaleOfEquity_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__custom--WarrantsMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pp0p0" title="Proceed from sales of stock"><ix:nonFraction name="us-gaap:ProceedsFromIssuanceOrSaleOfEquity" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_custom_WarrantsMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">8,100,000</ix:nonFraction></span>, which is
described in Note 4.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
the closing of the Initial Public Offering on October 8, 2021, an amount of $<span id="xdx_906_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_c20210101__20211008__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--IPOMember_pp0p0" title="Intial public offering price"><ix:nonFraction name="us-gaap:ProceedsFromIssuanceInitialPublicOffering" contextRef="From2021-01-012021-10-08_us-gaap_IPOMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">210,105,000</ix:nonFraction></span> ($10.15 per Unit) from the net proceeds of the
sale of the units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the &#8220;Trust
Account&#8221;) located in the United States and invested only in an open-ended investment company that holds itself out as a money market
fund selected by the Company meeting the conditions of Rule&#160;2a-7 of the Investment Company Act, as determined by the Company, until
the earlier of: (i)&#160;the completion of a Business Combination or (ii)&#160;the distribution of the funds in the Trust Account, as
described below.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public
Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied
generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business
Combination successfully. The Company&#8217;s initial Business Combination must be with one or more target businesses that together
have a fair market value equal to at least 80% of the balance in the Trust Account (as defined below) (excluding taxes payable on
interest income earned from the Trust Account and the deferred underwriting commissions) at the time of the agreement to enter into
the initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or
acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target
sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended
(the &#8220;Investment Company Act&#8221;). There is no assurance that the Company will be able to complete a Business Combination
successfully.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;The
Company will provide its holders of the outstanding Public Shares (the &#8220;Public Stockholders&#8221;) with the opportunity to redeem
all or a portion of their Public Shares upon the completion of a Business Combination either (i)&#160;in connection with a stockholder
meeting called to approve the Business Combination or (ii)&#160;by means of a tender offer. The decision as to whether the Company will
seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion.
The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account
(initially anticipated to be $10.15 per Public Share, plus any pro rata interest earned on the funds held in the Trust Account and not
previously released to the Company to pay its tax obligations). The per-share amount to be distributed to Public Stockholders who redeem
their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriter (as discussed
in Note&#160;5). There will be no redemption rights upon the completion of a Business Combination with respect to the Company&#8217;s
warrants. The Public Shares subject to redemption are recorded at redemption value and classified as temporary equity in accordance with
the Accounting Standards Codification (&#8220;ASC&#8221;) Topic 480 &#8220;Distinguishing Liabilities from Equity.&#8221;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation
of a Business Combination and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business
Combination. If a stockholder vote is not required by law or stock exchange requirements and the Company does not decide to hold a stockholder
vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the &#8220;Amended
and Restated Certificate of Incorporation&#8221;), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities
and Exchange Commission (&#8220;SEC&#8221;) and file tender offer documents with the SEC prior to completing a Business Combination.
If, however, stockholder approval of the transaction is required by law, or the Company decides to obtain stockholder approval for business
or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not
pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Company&#8217;s
Sponsor has agreed to vote their Founder Shares (as defined in Note&#160;4) and any Public Shares purchased during or after the Initial
Public Offering in favor of approving a Business Combination. Additionally, each public stockholder may elect to redeem their Public
Shares irrespective of whether they vote for or against the proposed transaction.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Notwithstanding
the above, if the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender
offer rules, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of
such stockholder or any other person with whom such stockholder is acting in concert or as a &#8220;group&#8221; (as defined under Section&#160;13
of the Securities Exchange Act of 1934, as amended (the &#8220;Exchange Act&#8221;)), will be restricted from redeeming its shares with
respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s Sponsor has agreed (i)&#160;to waive its redemption rights with respect to its Founder Shares and Public Shares held
by it in connection with the completion of a Business Combination and (ii)&#160;not to propose an amendment to the Company&#8217;s Amended
and Restated Certificate of Incorporation that would affect the substance or timing of the Company&#8217;s obligation to redeem 100%
of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public stockholders with
the opportunity to redeem their shares in conjunction with any such amendment.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company will have until January 8, 2023 to consummate a Business Combination or until July 8, 2023 if the Company extends the period
of time to consummate an initial Business Combination by the full amount of time (the &#8220;Combination Period&#8221;). If the Company
is unable to complete a Business Combination within the Combination Period, the Company will (i)&#160;cease all operations except for
the purpose of winding up, (ii)&#160;as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public
Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest
earned on the funds held in the Trust Account and not previously released to the Company to pay taxes (less up to $100,000 to pay dissolution
expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders&#8217;
rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii)&#160;as
promptly as reasonably possible following such redemption, subject to the approval of the Company&#8217;s remaining stockholders and
the Company&#8217;s board of directors, dissolve and liquidate, subject in each case to the Company&#8217;s obligations under Delaware
law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating
distributions with respect to the Company&#8217;s warrants, which will expire worthless if the Company fails to complete a Business Combination
within the Combination Period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<ix:exclude><p id="xdx_236_z94kE6RHqgT3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Sponsor has agreed to waive its right to liquidating distributions from the Trust Account with respect to the Founder Shares if the Company
fails to complete a Business Combination within the Combination Period. However, if the Sponsor acquires Public Shares in or after the
Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails
to complete a Business Combination within the Combination Period. The underwriter has agreed to waive their rights to their deferred
underwriting commission (see Note&#160;6) held in the Trust Account in the event the Company does not complete a Business Combination
within the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will
be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value
of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims
by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed
entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (i)&#160;$10.15 per Public Share or (ii)&#160;such
lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in
the value of the trust assets, in each case net of the interest which may be withdrawn to pay taxes, except as to any claims by a third
party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company&#8217;s
indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act
of 1933, as amended (the &#8220;Securities Act&#8221;). Moreover, in the event that an executed waiver is deemed to be unenforceable
against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will
seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to
have all vendors, service providers (other than our independent registered public accounting firm), prospective target businesses or
other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim
of any kind in or to monies held in the Trust Account.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Liquidity
and Going Concern</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2022, the Company had $<span id="xdx_909_eus-gaap--CashAndCashEquivalentsAtCarryingValue_iI_pp0p0_c20220331_zgbxYsqbqi7l" title="Cash"><ix:nonFraction name="us-gaap:CashAndCashEquivalentsAtCarryingValue" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">730,120</ix:nonFraction></span> in its operating bank account, $<span id="xdx_902_eus-gaap--AssetsHeldInTrustCurrent_c20220331_pp0p0" title="Assets held in trust account"><ix:nonFraction name="us-gaap:AssetsHeldInTrustCurrent" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">210,130,244</ix:nonFraction></span> in securities held in the Trust Account to be
used for a Business Combination or to repurchase or redeem its common stock in connection therewith, and working capital of approximately
$<span id="xdx_906_ecustom--WorkingCapital_pp0p0_c20220101__20220331_z2wzBmISXb43" title="Working capital"><ix:nonFraction name="AVACU:WorkingCapital" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">1,200,000</ix:nonFraction></span> which excludes franchise and income taxes payable as such amounts can be paid from income earned in the Trust Account.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Until
the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating
prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting
the target business to acquire, and structuring, negotiating and consummating the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Prior
to the consummation of its Initial Public Offering, the Company&#8217;s liquidity needs were satisfied through the payment of $<span id="xdx_901_ecustom--ProceedsFromSaleOfSharesOfCommonStockToInitialShareholder_pp0p0_c20220101__20220331_zqtKG39ZxhLg" title="Proceeds from sale of shares of common stock to initial shareholder"><ix:nonFraction name="AVACU:ProceedsFromSaleOfSharesOfCommonStockToInitialShareholder" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">25,000</ix:nonFraction></span>&#160;from
the Sponsor to cover certain expenses on behalf of the Company in consideration of Founder Shares (as defined in Note 4), and a loan
from the Sponsor of $<span id="xdx_900_ecustom--ProceedsFromPromissoryNoteWithRelatedParties_c20220101__20220331_pp0p0" title="Proceeds from promissory note with related parties"><ix:nonFraction name="AVACU:ProceedsFromPromissoryNoteWithRelatedParties" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">197,000</ix:nonFraction></span>&#160;under the Note (as defined in Note&#160;4) which was repaid in full on October 15, 2021. Following
the consummation of the Initial Public Offering, the Company&#8217;s liquidity has been satisfied through the net proceeds of $<span id="xdx_905_ecustom--ProceedsFromIssuanceOfPrivatePlacements_pn3n3_dm_c20220101__20220331_zsHcavbYkuoc" title="Proceeds from Issuance of Private Placement"><ix:nonFraction name="AVACU:ProceedsFromIssuanceOfPrivatePlacements" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="-3" scale="6" unitRef="USD">1.82</ix:nonFraction></span>&#160;million
from the consummation of the Initial Public Offering (including the Over-Allotment) and the Private Placement held outside of the Trust
Account. In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of
the Sponsor, or certain of the Company&#8217;s officers and directors may, but are not obligated to, provide the Company Working Capital
Loans (as defined in Note 4). As of March 31, 2022 and December 31, 2021, there were no amounts outstanding under any Working Capital
Loans.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the Company&#8217;s assessment of going concern considerations in accordance with Financial Accounting Standards Board
(&#8220;FASB&#8221;) Accounting Standards Update (&#8220;ASU&#8221;)&#160;2014-15,&#160;&#8220;Disclosures of Uncertainties about an
Entity&#8217;s Ability to Continue as a Going Concern,&#8221; management has determined that the mandatory liquidation and subsequent
dissolution raises substantial doubt about the Company&#8217;s ability to continue as a going concern. No adjustments have been made
to the carrying amounts of assets or liabilities should the Company be required to liquidate after January 8, 2023. The condensed financial
statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern. Management
plans to complete a business combination prior to the mandatory liquidation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on the foregoing, management believes that the Company will have sufficient working capital and borrowing capacity to meet its needs
through one year from this filing. Over this time period, the Company will be using the funds held outside of the Trust Account for paying
existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on
prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring,
negotiating and consummating the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:SignificantAccountingPoliciesTextBlock"><p id="xdx_801_eus-gaap--SignificantAccountingPoliciesTextBlock_zzkhlnsl59k" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
2 &#8212; <span id="xdx_82A_zHFz6tkJlNq8">SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES </span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:BasisOfAccountingPolicyPolicyTextBlock"><p id="xdx_84D_eus-gaap--BasisOfAccountingPolicyPolicyTextBlock_zAYb73gsX2se" style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_865_zMKFGpfM0J2c">Basis
of Presentation</span> </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
unaudited condensed financial statements of the Company are presented in conformity with accounting principles generally accepted in
the United States of America (&#8220;GAAP&#8221;) and pursuant to the rules and regulations of the SEC. Accordingly, they do not include
all of the information and footnotes required by GAAP. In the opinion of management, all adjustments (consisting of normal accruals)
considered for a fair presentation have been included.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&#160;</p>

<ix:exclude><p id="xdx_230_znktunRYDbJ6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p></ix:exclude>

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<ix:exclude><p id="xdx_239_zNOLD3F9s0nd" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto
included in the annual report on Form 10-K filed by the Company with the SEC on March 30, 2022. The interim results for the three months
ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future
periods.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:EmergingGrowthCompanyPolicyTextBlock"><p id="xdx_844_ecustom--EmergingGrowthCompanyPolicyTextBlock_zgki6cQvB4b7" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zZdaZ27jB371">Emerging
Growth Company</span> </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company is an &#8220;emerging growth company,&#8221; as defined in Section&#160;2(a) of the Securities Act, as modified by the JOBS Act,
and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that
are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public
accounting firm attestation requirements of Section&#160;404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive
compensation in its periodic reports and proxy statements, not being required to comply with any requirement that may be adopted by the
Public Company Accounting Oversight Board regarding mandatory audit firm rotation or to provide a supplement to the auditor&#8217;s report
providing additional information about the audit and the financial statements and exemptions from the requirements of holding a nonbinding
advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Further,
Section&#160;102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial
accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective
or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting
standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements
that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of
such extended transition period which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company&#8217;s financial statements with another public company which
is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accounting standards used.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:CashAndCashEquivalentsPolicyTextBlock"><p id="xdx_84B_eus-gaap--CashAndCashEquivalentsPolicyTextBlock_z4SgwASFwZAe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zYC8i0D3HIm8">Cash
and Cash Equivalents</span></i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash
equivalents. There were <span id="xdx_906_eus-gaap--CashEquivalentsAtCarryingValue_iI_do_c20220331_zTqwQIsU0IF2"><ix:nonFraction name="us-gaap:CashEquivalentsAtCarryingValue" contextRef="AsOf2022-03-31" format="ixt-sec:numwordsen" decimals="0" unitRef="USD">no</ix:nonFraction></span>
cash equivalents at March 31, 2022 and December 31, 2021.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:DeferredOfferingCostsAssociatedWithTheInitialPublicOfferingPolicyTextBlock"><p id="xdx_843_ecustom--DeferredOfferingCostsAssociatedWithTheInitialPublicOfferingPolicyTextBlock_zx3rBa1pKT16" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_869_zQNxn56LneP7">Deferred
Offering Costs Associated with the Initial Public Offering</span></i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (SAB) Topic 5A &#8211; &#8220;Expenses
of Offering.&#8221; Costs incurred in connection with preparation for the Public Offering ($<span id="xdx_909_eus-gaap--OtherDeferredCostsNet_c20220331_pp0p0"><ix:nonFraction name="us-gaap:OtherDeferredCostsNet" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">695,809</ix:nonFraction></span>) together with $<span id="xdx_90A_ecustom--UnderwritersDiscount_c20220331_pp0p0" title="Underwriters discount"><ix:nonFraction name="AVACU:UnderwritersDiscount" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">10,953,007</ix:nonFraction></span> of underwriters&#8217;
discount, were allocated to equity instruments ($<span id="xdx_901_ecustom--AllocatedEquityInstruments_c20220101__20220331_pp0p0" title="Allocated equity instruments"><ix:nonFraction name="AVACU:AllocatedEquityInstruments" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">11,168,880</ix:nonFraction></span>) and derivative warrant liabilities ($<span id="xdx_906_eus-gaap--DerivativeFairValueOfDerivativeLiability_c20220331_pp0p0" title="Derivative warrant liabilities"><ix:nonFraction name="us-gaap:DerivativeFairValueOfDerivativeLiability" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">479,936</ix:nonFraction></span>), based on their relative values,
and charged to temporary equity or expensed (in the case of the portion allocated to derivative warrant liabilities) upon completion
of the Initial Public Offering.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:IncomeTaxPolicyTextBlock"><p id="xdx_840_eus-gaap--IncomeTaxPolicyTextBlock_z4tf7Ud46nw9" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_865_zzji3QUuN3Hj">Income
Taxes </span></i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The Company follows the asset
and liability method of accounting for income taxes under FASB ASC&#160;Topic 740, &#8220;Income Taxes.&#8221; Deferred tax assets and
liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement&#8217;s
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included
the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
As of March 31, 2022 and December 2021, the Company had deferred tax assets which had a full valuation allowance recorded against them.
Deferred tax assets were deemed to be de minimis as of March 31, 2022 and December 31, 2021.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The Company&#8217;s current
taxable income primarily consists of income earned on the Trust Account. The Company&#8217;s general and administrative costs are
generally considered start-up costs and are not currently deductible. During the three months ended March 31, 2022, the Company
recorded no income tax expense. The Company&#8217;s effective tax rate for three months ended March 31, 2022 was approximately <span id="xdx_900_eus-gaap--EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate_dp_c20220101__20220331_zZp1jL9oV0g2" title="Income tax rate"><ix:nonFraction name="us-gaap:EffectiveIncomeTaxRateReconciliationChangeInEnactedTaxRate" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="INF" scale="-2" unitRef="Pure">21</ix:nonFraction></span>%,
which differs from the expected income tax rate due to the start-up costs (discussed above), the change in value of warrant
liabilities, and the transaction costs allocated to the warrant liabilities which are not currently deductible.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">FASB
ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement
of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely
than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized
tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of March
31, 2022 and December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments,
accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since
inception.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company complies with accounting and disclosure requirements of FASB ASC Topic 260, &#8220;Earnings Per Share.&#8221; The Company
has two classes of shares, which are referred to as Class&#160;A common stock and Class&#160;B common stock. Income and losses are
shared pro rata between the two classes of shares. This presentation assumes a business combination as the most likely outcome. Net
income/(loss) per common stock is calculated by dividing the net income/(loss) by the weighted average shares of common stock
outstanding for the respective period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
calculation of diluted net income/(loss) per common stock does not consider the effect of the warrants issued in connection with the
IPO (including exercise of the over-allotment option) and the Private Placement to purchase an aggregate
of&#160;23,625,000&#160;shares of Class&#160;A common stock in the calculation of diluted income/(loss) per share, because their
exercise is contingent upon future events and their inclusion would be anti-dilutive under the treasury stock method. As a result,
diluted net income/(loss) per share is the same as basic net income/(loss) per share for the three months ended March 31, 2022 and
2021. Accretion associated with the redeemable Class&#160;A common stock is excluded from earnings per share as the
redemption value approximates fair value.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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following table reflects presents a reconciliation of the numerator and denominator used to compute basic and diluted net income/(loss)
per share for each class of common stock:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font: 10pt Times New Roman, Times, Serif; background-color: white">&#160;</span></p>

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<tr style="vertical-align: bottom">
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  <tr style="vertical-align: bottom; background-color: White">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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  <tr style="vertical-align: bottom; background-color: White">
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:RedeemableCommonStockPolicyTextBlock"><p id="xdx_84E_ecustom--RedeemableCommonStockPolicyTextBlock_zp3foL6AFFXe" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zsjK17wOnec5">Redeemable
Common Stock</span> </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
discussed in Note 1, all of the <span id="xdx_906_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zEMBTZmsJ63b" title="Stock Issued During Period, Shares, New Issues"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_us-gaap_CommonClassAMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,700,000</ix:nonFraction></span>
Public Shares sold as part of Units in the Initial Public Offering contain a redemption feature which allows for the redemption of
the Public Shares if the Company holds a stockholder vote or there is a tender offer for shares in connection with a Business
Combination. In accordance with FASB ASC 480, redemption provisions not solely within the control of the Company require the
security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of
all of the entity&#8217;s equity instruments, are excluded from the provisions of FASB ASC 480. Although the Company did not specify
a maximum redemption threshold, its charter provides that in no event will it redeem its Public Shares in an amount that would cause
its net tangible assets (i.e., total assets less intangible assets and liabilities) to be less than $<span id="xdx_90B_eus-gaap--BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment_iI_pp0p0_c20220331_zQk8pwv8LHSk" title="Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment"><ix:nonFraction name="us-gaap:BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedPropertyPlantAndEquipment" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">5,000,001</ix:nonFraction></span>
upon the closing of a Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">While
redemptions cannot cause the Company&#8217;s net tangible assets to fall below $5,000,000, all shares of Class A common stock sold in
the Initial Public Offering are redeemable and will be classified as classified as temporary equity on the Company&#8217;s balance sheet
until such time as a redemption event takes place. The value of Class A common stock that may be redeemed will be equal to $10.15 per
share (which is the assumed redemption price) multiplied by 20,700,000 shares of Class A common stock.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:DerivativeWarrantLiabilitiesPolicyTextBlock"><p id="xdx_843_ecustom--DerivativeWarrantLiabilitiesPolicyTextBlock_z6Ao04ipHjId" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_863_zuTiPYCasDa1">Derivative
Warrant Liabilities </span></i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant&#8217;s
specific terms and in accordance with FASB ASC 480, Distinguishing Liabilities from Equity (&#8220;ASC 480&#8221;) and ASC 815, Derivatives
and Hedging (&#8220;ASC 815&#8221;). The assessment considers whether the warrants are freestanding financial instruments pursuant to
ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification
under ASC 815, including whether the warrants are indexed to the Company&#8217;s own shares, among other conditions for equity classification.
This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent
quarterly period end date while the warrants are outstanding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component
of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification,
the warrants are required to be recorded at their initial fair value of the date of issuance, and each balance sheet date thereafter.
Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. Costs
associated with issuing the warrants classified as derivative liabilities are charged to operations when the warrants are issued.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <div id="xdx_235_zenn2C9e0Vs1" style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
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<ix:exclude><p id="xdx_239_zqjyE0qH5Fj8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p></ix:exclude>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:ConcentrationRiskCreditRisk"><p id="xdx_84E_eus-gaap--ConcentrationRiskCreditRisk_zwah7qo1Hfje" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_869_zbSY9zNqY4c7">Concentration
of Credit Risk</span> </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Deposit Insurance Corporation coverage of $<span id="xdx_90E_eus-gaap--CashFDICInsuredAmount_c20220331_pp0p0" title="Federal Depository Insurance"><ix:nonFraction name="us-gaap:CashFDICInsuredAmount" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">250,000</ix:nonFraction></span>. The Company has not experienced losses
on this account, and management believes the Company is not exposed to significant risks on such account.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:FairValueOfFinancialInstrumentsPolicy"><p id="xdx_84B_eus-gaap--FairValueOfFinancialInstrumentsPolicy_zf8tTYeC5XEh" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_865_zalQQ3TTn3zi">Fair
Value of Financial Instruments</span> </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value of the Company&#8217;s assets and liabilities, which qualify as financial instruments under ASC Topic 820, &#8220;Fair
Value Measurement,&#8221; approximates the carrying amounts represented in the balance sheet, primarily due to their short-term
nature, except for the derivative warrant liabilities (see Note 9).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:UseOfEstimates"><p id="xdx_842_eus-gaap--UseOfEstimates_z77LvXv9aCBf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_867_zUadf3AiF1cb">Use
of Estimates</span> </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
preparation of financial statements in conformity with GAAP requires the Company&#8217;s management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of expenses during the reporting period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:NewAccountingPronouncementsPolicyPolicyTextBlock"><p id="xdx_849_eus-gaap--NewAccountingPronouncementsPolicyPolicyTextBlock_z3YPyse4MPG6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_zFwH6Oa8NvEf">Recent
Accounting Pronouncements</span> </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">In August 2020, the Financial
Accounting Standards Board (&#8220;FASB&#8221;) issued Accounting Standards Update (&#8220;ASU&#8221;) 2020-06, &#8220;Debt &#8212; Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging &#8212; Contracts in Entity&#8217;s Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity&#8217;s Own Equity&#8221; (&#8220;ASU 2020-06&#8221;) to simplify
accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion
and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity
classification of contracts in an entity&#8217;s own equity. The new standard also introduces additional disclosures for convertible
debt and freestanding instruments that are indexed to and settled in an entity&#8217;s own equity. ASU 2020-06 amends the diluted earnings
per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective
for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted.
The Company is currently evaluating the impact the pronouncement will have on the condensed financial statements.<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a
material effect on the Company&#8217;s financial statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:Covid19PolicyTextBlock"><p id="xdx_84C_ecustom--Covid19PolicyTextBlock_z0Av4IxlmfO4" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i><span id="xdx_86D_za95dgDhaXp4">COVID-19</span></i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
continues to evaluate the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible
that the virus could have a negative effect on the Company&#8217;s financial position, results of its operations, and/or search for
a target company, the specific impact is not readily determinable as of the date of the condensed financial statements. The condensed
financial statements do not include any adjustments that might result from the outcome of this uncertainty.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <div id="xdx_23F_zAlfqujpNTuk" style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_236_ze6la2FCUT69" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

</ix:nonNumeric></ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:InitialPublicOfferingTextBlock"><p id="xdx_80D_ecustom--InitialPublicOfferingTextBlock_zu0npPHVoPO3" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
3 &#8212; <span id="xdx_823_zIKnyyMNAPW">INITIAL PUBLIC OFFERING </span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 8, 2021, the Company consummated the Public Offering of <span id="xdx_905_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zZAQxi2aoTDb" title="Stock Issued During Period, Shares, New Issues"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_us-gaap_CommonClassAMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,700,000</ix:nonFraction></span> Units, which includes the full exercise by the underwriter
of its option to purchase an additional <span id="xdx_901_ecustom--AdditionalOptionPurchase_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zoUmrKJFzCz5" title="Additional Option Purchase"><ix:nonFraction name="AVACU:AdditionalOptionPurchase" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_us-gaap_CommonClassAMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">2,700,000</ix:nonFraction></span> Units, at a price of $<span id="xdx_90D_eus-gaap--SharePrice_iI_c20220331__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember_z75UNa1fH36f" title="Stock price"><ix:nonFraction name="us-gaap:SharePrice" contextRef="AsOf2022-03-31_us-gaap_CommonClassAMember_custom_UnderwriterMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">10.00</ix:nonFraction></span> per unit (the &#8220;Units&#8221;). Each Unit consists
of one share of the Company&#8217;s Class&#160;A common stock, $<span id="xdx_90F_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember_zGrUhGmHmpGj" title="Par value"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31_custom_UnderwriterMember_us-gaap_OverAllotmentOptionMember_us-gaap_CommonClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></span> par value and three-fourths of one redeemable warrant (&#8220;Public
Warrant&#8221;). Each whole Warrant offered in the Initial Public Offering is exercisable to purchase one share of Class&#160;A common
stock at $<span id="xdx_90A_eus-gaap--SharePrice_c20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__custom--PublicWarrantMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pdd" title="Stock price"><ix:nonFraction name="us-gaap:SharePrice" contextRef="AsOf2022-03-31_custom_UnderwriterMember_custom_PublicWarrantMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">11.50</ix:nonFraction></span> per share, subject to adjustment (see Note 7).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Simultaneously
with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of <span id="xdx_907_eus-gaap--SaleOfStockNumberOfSharesIssuedInTransaction_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pdd" title="Sale of Stock, Number of Shares Issued in Transaction"><ix:nonFraction name="us-gaap:SaleOfStockNumberOfSharesIssuedInTransaction" contextRef="From2022-01-012022-03-31_custom_SponsorMember_us-gaap_PrivatePlacementMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">8,100,000</ix:nonFraction> </span>Private Placement Warrants for an aggregate
purchase price of $<span id="xdx_902_eus-gaap--SaleOfStockConsiderationReceivedOnTransaction_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pp0p0" title="Sale of Stock, Consideration Received on Transaction"><ix:nonFraction name="us-gaap:SaleOfStockConsiderationReceivedOnTransaction" contextRef="From2022-01-012022-03-31_custom_SponsorMember_us-gaap_PrivatePlacementMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">8,100,000</ix:nonFraction></span>. Each Private Placement Warrant is exercisable to purchase one share of Class&#160;A common stock at a price
of $<span id="xdx_900_ecustom--WarrantExercisePrice_c20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--PrivatePlacementMember_pdd" title="Warrant exercise price"><ix:nonFraction name="AVACU:WarrantExercisePrice" contextRef="AsOf2022-03-31_custom_SponsorMember_us-gaap_PrivatePlacementMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">11.50</ix:nonFraction></span> per share.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:RelatedPartyTransactionsDisclosureTextBlock"><p id="xdx_804_eus-gaap--RelatedPartyTransactionsDisclosureTextBlock_zljVNYiixDob" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
4 &#8212; <span id="xdx_82F_ztgPy8iW2y8j">RELATED PARTY TRANSACTIONS</span> </b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Founder
Shares </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 21, 2020, the Sponsor paid an aggregate of $<span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodValueNewIssues_pp0p0_c20201001__20201021__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AvalonAcquisitionHoldingsMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_za60STaMQm23"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2020-10-012020-10-21_custom_AvalonAcquisitionHoldingsMember_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">25,000</ix:nonFraction></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">,
or approximately $0.004 per share, to cover certain of our offering costs in consideration of <span id="xdx_90A_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20201001__20201021__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AvalonAcquisitionHoldingsMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zjbhfb6GPZ3"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2020-10-012020-10-21_custom_AvalonAcquisitionHoldingsMember_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,750,000</ix:nonFraction>
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of our Class&#160;B common stock, par
value $<span id="xdx_903_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20220331__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_z2yqjc4TSeub"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">.
On August 30, 2021, the Sponsor forfeited <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20210801__20210830__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zPER2lwLU8P5"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures" contextRef="From2021-08-012021-08-30_custom_UnderwriterMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">1,437,500</ix:nonFraction>
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">of these shares, for no consideration, such that
there were <span id="xdx_90F_eus-gaap--CommonStockSharesOutstanding_c20210830__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_pdd"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2021-08-30_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">4,312,500</ix:nonFraction>
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares of Class B common stock outstanding. On
October 5, 2021, the Company effected a stock dividend of 0.2 of a founder share for each outstanding founder share, which resulted in
the Sponsor holding an aggregate of <span id="xdx_90B_eus-gaap--StockIssuedDuringPeriodValueNewIssues_c20211001__20211005__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AvalonAcquisitionHoldingsMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_pp0p0"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodValueNewIssues" contextRef="From2021-10-012021-10-05_custom_AvalonAcquisitionHoldingsMember_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">5,175,000</ix:nonFraction>
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Founder Shares. The Founder Shares included an
aggregate of up to <span id="xdx_901_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20211001__20211005__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zpS4TyPwyNHh"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures" contextRef="From2021-10-012021-10-05_custom_UnderwriterMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">675,000</ix:nonFraction>
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">shares subject to forfeiture to the extent that
the underwriter&#8217;s over-allotment option was not exercised in full or in part, so that the Sponsor would own, on an as-converted
basis, 20% of the Company&#8217;s issued and outstanding shares after the Initial Public Offering. As a result of the underwriter&#8217;s
election to exercise fully its over-allotment option, <span id="xdx_904_eus-gaap--StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures_c20211001__20211005__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pdd"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures" contextRef="From2021-10-012021-10-05_custom_UnderwriterMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">675,000</ix:nonFraction>
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Founder Shares were no longer subject to forfeiture.
All share and per-share amounts have been retroactively restated to reflect the stock dividend. On October 5, 2021, the Sponsor transferred
<span id="xdx_902_ecustom--NumberOfSharesTransferred_c20211005__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--AvalonAcquisitionHoldingsMember_pdd"><ix:nonFraction name="AVACU:NumberOfSharesTransferred" contextRef="AsOf2021-10-05_custom_AvalonAcquisitionHoldingsMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">150,000</ix:nonFraction>
</span></span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Founder Shares to its independent directors.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 20pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur
of: (A)&#160;one year after the completion of a Business Combination or (B)&#160;subsequent to a Business Combination, (x)&#160;if the
last reported sale price of the Class&#160;A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends,
reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150&#160;days
after a Business Combination, or (y)&#160;the date on which the Company completes a liquidation, merger, capital stock exchange or other
similar transaction that results in all of the Company&#8217;s stockholders having the right to exchange their shares of common stock
for cash, securities or other property.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Promissory
Note&#8212;Related Party </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
October 31, 2020, the Sponsor agreed to loan the Company an aggregate of up to $<span id="xdx_90B_eus-gaap--GeneralAndAdministrativeExpense_c20201001__20201031__us-gaap--LongtermDebtTypeAxis__custom--UnsecuredPromissoryNoteMember__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember_pp0p0" title="General and Administrative Expense"><ix:nonFraction name="us-gaap:GeneralAndAdministrativeExpense" contextRef="From2020-10-012020-10-31_custom_UnsecuredPromissoryNoteMember_custom_SponsorMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">250,000</ix:nonFraction></span> to cover expenses related to the Initial Public
Offering pursuant to a promissory note (the &#8220;Promissory Note&#8221;). The Promissory Note was non-interest bearing and payable,
as amended, on the earlier of December 31, 2021 or the completion of the Initial Public Offering. On October 15, 2021, the Company repaid
the balance in full to the Sponsor. Because the balance of the Promissory Note has been repaid, it is no longer available to the Company.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Administrative
Support Agreement </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Commencing
on the effective date of the Initial Public Offering, on October 5, 2021, the Company agreed to pay the Sponsor a total of $<span id="xdx_907_eus-gaap--DebtInstrumentPeriodicPayment_c20211001__20211005__us-gaap--TypeOfArrangementAxis__custom--AdministrativeSupportAgreementMember_pp0p0" title="Debt Instrument, Periodic Payment"><ix:nonFraction name="us-gaap:DebtInstrumentPeriodicPayment" contextRef="From2021-10-012021-10-05_custom_AdministrativeSupportAgreementMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">10,000</ix:nonFraction></span>
per month for office space, and administrative support services. Upon completion of an initial Business Combination or the
Company&#8217;s liquidation, the Company will cease paying these monthly fees. For the three months ended March 31, 2022, the
Company incurred $<span id="xdx_907_eus-gaap--ProceedsFromRepaymentsOfOtherDebt_pp0p0_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--SponsorMember_zvWmq6hlkvp7" title="Proceeds from (Repayments of) Other Debt"><ix:nonFraction name="us-gaap:ProceedsFromRepaymentsOfOtherDebt" contextRef="From2022-01-012022-03-31_custom_SponsorMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">30,000</ix:nonFraction></span>
of these fees which are included in general and administrative expenses &#8211; related party on the condensed statements of
operations. Additionally, the Company prepaid $<span id="xdx_908_eus-gaap--DebtInstrumentPeriodicPayment_c20220101__20220331__us-gaap--TypeOfArrangementAxis__custom--AdministrativeSupportAgreementMember_pp0p0" title="Debt Instrument, Periodic Payment"><ix:nonFraction name="us-gaap:DebtInstrumentPeriodicPayment" contextRef="From2022-01-012022-03-31_custom_AdministrativeSupportAgreementMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">90,000</ix:nonFraction></span>
of these fees which are included in prepaid expenses on the accompanying condensed balance sheet as of March 31, 2022.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<ix:exclude><p id="xdx_23A_zxby1utmqjkc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p></ix:exclude>

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<ix:exclude><p id="xdx_232_zExy3adU82q8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Related
Party Loans </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
order to finance transaction costs in connection with a Business Combination, the Sponsor, or the Company&#8217;s officers and directors
may, but are not obligated to, loan the Company funds as may be required (&#8220;Working Capital Loans&#8221;). If the Company completes
a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company.
In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to
repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for
the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect
to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at
the lender&#8217;s discretion, up to $<span id="xdx_90A_ecustom--WorkingCapitalLoans_c20220331_pp0p0" title="Working Capital Loans"><ix:nonFraction name="AVACU:WorkingCapitalLoans" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">1,500,000</ix:nonFraction></span> of such Working Capital Loans may be convertible into warrants at a price of $<span id="xdx_90C_eus-gaap--DebtInstrumentConvertibleConversionPrice1_c20220331_pdd" title="Conversion Price"><ix:nonFraction name="us-gaap:DebtInstrumentConvertibleConversionPrice1" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">1.00</ix:nonFraction></span>&#160;per
warrant at the option of the lender. The warrants would be identical to the Private Placement Warrants. As of March 31, 2022 and December
31, 2021, there was no working capital loan outstanding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:CommitmentsDisclosureTextBlock"><p id="xdx_805_eus-gaap--CommitmentsDisclosureTextBlock_zvirzeKN6Ai2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
5 &#8212; <span id="xdx_828_zJOZtLOpJSSf">COMMITMENTS AND CONTINGENCIES</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Registration
Rights </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
holders of the Founder Shares, Private Placement Warrants, warrants and representative shares that may be issued upon conversion of Working
Capital Loans (and any shares of Class&#160;A common stock issuable upon the exercise of the Private Placement Warrants and warrants
that may be issued upon conversion of Working Capital Loans) are entitled to registration rights pursuant to a registration rights agreement
signed on the effective date of Initial Public Offering. The holders of these securities will be entitled to make up to three demands,
excluding short form demands, that the Company register such securities. In addition, the holders have certain &#8220;piggy-back&#8221;
registration rights with respect to registration statements filed subsequent to the completion of a Business Combination. However, the
registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to
become effective until termination of the applicable lockup period. The Company will bear the expenses incurred in connection with the
filing of any such registration statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Underwriting
Agreement </i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company granted the underwriter a 45-day option from the date of Initial Public Offering to purchase up to <span id="xdx_904_ecustom--AdditionalOptionPurchase_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassAMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_zV1YSVkZyAke" title="Additional Option Purchase"><ix:nonFraction name="AVACU:AdditionalOptionPurchase" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_us-gaap_CommonClassAMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">2,700,000</ix:nonFraction></span> additional Units
to cover over-allotments, if any, at the Initial Public Offering price less the underwriting discounts and commissions. At October 8,
2021, the underwriter exercised such option in full.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">The underwriter was entitled
to an underwriting discount of $0.125 per Unit, or $2,156,250 in the aggregate of the gross proceeds of the Initial Public Offering. In
addition, the underwriter is entitled to a deferred fee of $0.35 per Unit, or $6,037,500 in the aggregate; provided that up to 0.875%
of the gross proceeds or $1,509,375 in the aggregate may be paid to third parties not participating in the offering (but who are members
of the Financial Industry Regulatory Authority (&#8220;FINRA&#8221;) or regulated broker-dealers) that assist the underwriter in consummating
the initial Business Combination. The deferred fee will be waived by the underwriter in the event that the Company does not complete a
Business Combination, subject to the terms of the underwriting agreement.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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    <div id="xdx_234_zFxjaoLTRge1" style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
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<ix:exclude><p id="xdx_233_zZykvn4Zyrhg" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
addition, the Company issued to the underwriter <span id="xdx_902_eus-gaap--StockIssuedDuringPeriodSharesNewIssues_c20220101__20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pdd" title="Stock Issued During Period, Shares, New Issues"><ix:nonFraction name="us-gaap:StockIssuedDuringPeriodSharesNewIssues" contextRef="From2022-01-012022-03-31_custom_UnderwriterMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">155,250</ix:nonFraction></span> non-redeemable shares of Class A common stock upon closing of the Initial Public
Offering, at a price of $<span id="xdx_90B_eus-gaap--SharePrice_c20220331__us-gaap--RelatedPartyTransactionsByRelatedPartyAxis__custom--UnderwriterMember__us-gaap--SubsidiarySaleOfStockAxis__us-gaap--OverAllotmentOptionMember_pdd" title="Share Price"><ix:nonFraction name="us-gaap:SharePrice" contextRef="AsOf2022-03-31_custom_UnderwriterMember_us-gaap_OverAllotmentOptionMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></span> (the &#8220;Representative Shares&#8221;). These shares were fair valued at&#160;$<span id="xdx_904_ecustom--RepresentativeSharesIssued_c20220101__20220331_pp0p0" title="Representative shares issued"><ix:nonFraction name="AVACU:RepresentativeSharesIssued" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">1,120,507</ix:nonFraction></span>&#160;at the
Initial Public Offering using Black-Scholes&#160;option pricing model utilizing Level 3 inputs.&#160;The holder of the Representative
Shares has agreed not to transfer, assign or sell any such shares without the Company&#8217;s prior consent until the completion of the
Company&#8217;s initial Business Combination. In addition, the holder of the Representative Shares has agreed (i) to waive its conversion
rights (or right to participate in any tender offer) with respect to such shares in connection with the completion of the Company&#8217;s
initial Business Combination and (ii) to waive its rights to liquidating distributions from the Trust account with respect to such shares
if the Company fails to complete its initial Business Combination within the required time period. The Representative Shares have been
deemed compensation by FINRA and are therefore subject to a lock-up for a period of 180 days immediately following the date of the effectiveness
of the registration statement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:WarrantLiabilitiesDisclosureTextBlock"><p id="xdx_800_ecustom--WarrantLiabilitiesDisclosureTextBlock_zddilGXq06Hi" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
6 &#8211; <span id="xdx_829_z66wPEY8zOw3">WARRANTS LIABILITIES</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2022 and December 31, 2021, there were <span id="xdx_90F_eus-gaap--WarrantsAndRightsOutstanding_c20220331__us-gaap--ClassOfWarrantOrRightAxis__custom--PublicWarrantsMember_pp0p0" title="Warrants"><ix:nonFraction name="us-gaap:WarrantsAndRightsOutstanding" contextRef="AsOf2022-03-31_custom_PublicWarrantsMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">15,525,000</ix:nonFraction></span> Public Warrants and <span id="xdx_905_eus-gaap--WarrantsAndRightsOutstanding_c20220331__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivateWarrantsMember_pp0p0" title="Warrants"><ix:nonFraction name="us-gaap:WarrantsAndRightsOutstanding" contextRef="AsOf2022-03-31_custom_PrivateWarrantsMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">8,100,000</ix:nonFraction></span> Private Warrants outstanding. The Company
accounts for the Public and Private Placement Warrants in accordance with the guidance contained in ASC 815-40. Such guidance provides
that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly,
the Company classifies each warrant as a liability at its fair value and charges the costs associated with issuing such warrants to operations.
The accounting treatment of derivative financial instruments requires that the Company records a derivative liability upon the closing
of the Initial Public Offering. Accordingly, the Company has classified the warrants as a liability at their fair value and allocated
a portion of the proceeds from the issuance of the Units to the warrants. This liability is re-measured at each balance sheet date. With
each such re-measurement, the warrant liability is adjusted to fair value, with the change in fair value recognized in the Company&#8217;s
statement of operations. The Company reassesses the classification at each balance sheet date. If the classification changes as a result
of events during the period, the warrants will be reclassified as of the date of the event that causes the reclassification.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:ClassACommonStockSubjectToPossibleRedemptionDisclosureTextBlock"><p id="xdx_805_ecustom--ClassACommonStockSubjectToPossibleRedemptionDisclosureTextBlock_ziAPeOSB0uIc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
7 &#8211; <span id="xdx_826_zjh3b6ySCwLb">CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s Class A common stock feature certain redemption rights that are considered to be outside of the Company&#8217;s control
and subject to the occurrence of future events. The Company is authorized to issue <span id="xdx_905_eus-gaap--CommonStockSharesAuthorized_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zjkafKboUOQg" title="Common Stock, Shares Authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">100,000,000</ix:nonFraction></span> shares of Class A common stock with a
par value of $<span id="xdx_906_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zrvQVAXCEtgj" title="Common Stock, Par or Stated Value Per Share"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></span> per share. Holders of the Company&#8217;s Class A common stock are entitled to one vote for each share. As of March
31, 2022 and December 31, 2021, there were <span id="xdx_903_eus-gaap--CommonUnitOutstanding_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zWkCt7nHHnAd" title="Common Stock, Shares, Outstanding"><ix:nonFraction name="us-gaap:CommonUnitOutstanding" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,855,250</ix:nonFraction></span> shares of Class A common stock outstanding, of which <span id="xdx_904_eus-gaap--SharesSubjectToMandatoryRedemptionSettlementTermsNumberOfShares_iI_c20220331_z9oAccab34cl" title="Common shares subject to possible redemption"><ix:nonFraction name="us-gaap:SharesSubjectToMandatoryRedemptionSettlementTermsNumberOfShares" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,700,000</ix:nonFraction></span> shares are subject
to possible redemption and are classified outside of permanent equity in the condensed balance sheets.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Class A common stock subject to possible redemption reflected on the condensed balance sheets is reconciled on the following table:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="AVACU:ScheduleReconcilationBalanceSheetTableTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_880_ecustom--ScheduleReconcilationBalanceSheetTableTextBlock_zg4ceQ7FyEE9" summary="xdx: Disclosure - CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION (Details)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt"><span id="xdx_8B5_zd2h8vN9aMxi" style="display: none">Schedule of reconcilation of balance sheet</span></td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0pt 0pt 0pt 10pt; width: 70%; text-align: left; text-indent: -10pt">Gross proceeds from Initial Public Offering</td><td style="width: 10%">&#160;</td>
    <td style="width: 1%; text-align: left">$</td><td id="xdx_985_eus-gaap--ProceedsFromIssuanceInitialPublicOffering_c20220101__20220331_pp0p0" title="Gross proceeds from Initial Public Offering" style="width: 18%; text-align: right"><ix:nonFraction name="us-gaap:ProceedsFromIssuanceInitialPublicOffering" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">207,000,000</ix:nonFraction></td><td style="width: 1%; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Less:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Fair value of Public Warrants at issuance</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98C_ecustom--FairValueOfPublicWarrantsAtIssuance_iN_pp0p0_di_c20220101__20220331_zCHFuwv2ro97" title="Fair value of Public Warrants at issuance" style="text-align: right">(<ix:nonFraction name="AVACU:FairValueOfPublicWarrantsAtIssuance" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">9,159,750</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Offering costs allocated to Class A common stock subject to possible redemption</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td id="xdx_98C_ecustom--OfferingCostsAllocatedToClassCommonStockSubjectToPossibleRedemption_iN_pp0p0_di_c20220101__20220331_zU5yJtrdiA5f" title="Offering costs allocated to Class A common stock subject to possible redemption" style="text-align: right">(<ix:nonFraction name="AVACU:OfferingCostsAllocatedToClassCommonStockSubjectToPossibleRedemption" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">11,168,880</ix:nonFraction></td><td style="text-align: left">)</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">Plus:</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Accretion on Class A common stock subject to possible redemption amount</td><td style="padding-bottom: 1pt">&#160;</td>
    <td style="border-bottom: Black 1pt solid; text-align: left">&#160;</td><td id="xdx_980_ecustom--AccretionOnClassCommonStockSubjectToPossibleRedemptionAmount_c20220101__20220331_pp0p0" title="Accretion on Class A common stock subject to possible redemption amount" style="border-bottom: Black 1pt solid; text-align: right"><ix:nonFraction name="AVACU:AccretionOnClassCommonStockSubjectToPossibleRedemptionAmount" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">23,433,630</ix:nonFraction></td><td style="padding-bottom: 1pt; text-align: left">&#160;</td></tr>
  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
    <td style="padding: 0pt 0pt 0pt 10pt; text-align: left; text-indent: -10pt">Class A common stock subject to possible redemption</td><td style="padding-bottom: 2.5pt">&#160;</td>
    <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td id="xdx_989_eus-gaap--TemporaryEquityAccretionToRedemptionValueAdjustment_c20220101__20220331_pp0p0" title="Class A common stock subject to possible redemption" style="border-bottom: Black 2.5pt double; text-align: right"><ix:nonFraction name="us-gaap:TemporaryEquityAccretionToRedemptionValueAdjustment" contextRef="From2022-01-01to2022-03-31" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">210,105,000</ix:nonFraction></td><td style="padding-bottom: 2.5pt; text-align: left">&#160;</td></tr>
  </table></ix:nonNumeric>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<ix:exclude><p id="xdx_239_z9phBnz4fmGc" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b></b></span></p></ix:exclude>

<ix:exclude><!-- Field: Page; Sequence: 16; Value: 12 -->
    <div id="xdx_233_zAHPOUbVjZll" style="border-bottom: Black 2pt solid; margin-top: 6pt; margin-bottom: 6pt"><p style="font-size: 10pt; text-align: center; margin-top: 0pt; margin-bottom: 0pt"><!-- Field: Sequence; Type: Arabic; Name: PageNo -->13<!-- Field: /Sequence -->&#160;</p></div>
    <div id="xdx_236_zhVTruwrUo5a" style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page --></ix:exclude>

<ix:exclude><p id="xdx_23C_zCE3qy18pnW2" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p></ix:exclude>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:StockholdersEquityNoteDisclosureTextBlock"><p id="xdx_80E_eus-gaap--StockholdersEquityNoteDisclosureTextBlock_zYBWxXFmgRS6" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
8 &#8212; <span id="xdx_825_zELPCJx8UNcj">STOCKHOLDERS&#8217; DEFICIT</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Preferred
Stock </i></b>&#8212; The Company was authorized to issue <span id="xdx_904_eus-gaap--PreferredStockSharesAuthorized_c20220331_pdd" title="Preferred stock, authorized shares"><span id="xdx_903_eus-gaap--PreferredStockSharesAuthorized_c20211231_pdd" title="Preferred stock, authorized shares"><ix:nonFraction name="us-gaap:PreferredStockSharesAuthorized" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesAuthorized" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">1,000,000</ix:nonFraction></ix:nonFraction></span></span> shares of preferred stock with a par value of $<span id="xdx_903_eus-gaap--PreferredStockParOrStatedValuePerShare_c20220331_pdd" title="Preferrd stock, par value"><span id="xdx_902_eus-gaap--PreferredStockParOrStatedValuePerShare_c20211231_pdd" title="Preferrd stock, par value"><ix:nonFraction name="us-gaap:PreferredStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:PreferredStockParOrStatedValuePerShare" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></ix:nonFraction></span></span> per share with
such designations, voting and other rights and preferences as may be determined from time to time by the Company&#8217;s board of directors.
At March 31, 2022 and December 31, 2021, there were <span id="xdx_909_eus-gaap--PreferredStockSharesIssued_iI_do_c20220331_zTCAu14g1vZ7" title="Preferred Stock, Shares Issued"><span id="xdx_904_eus-gaap--PreferredStockSharesOutstanding_iI_do_c20220331_z2yItjjdyc8c" title="Preferred Stock, Shares Outstanding"><span id="xdx_903_eus-gaap--PreferredStockSharesIssued_iI_do_c20211231_zedLE3qQOBJf" title="Preferred Stock, Shares Issued"><span id="xdx_908_eus-gaap--PreferredStockSharesOutstanding_iI_do_c20211231_zZ3t8272R81l" title="Preferred Stock, Shares Outstanding"><ix:nonFraction name="us-gaap:PreferredStockSharesIssued" contextRef="AsOf2022-03-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesOutstanding" contextRef="AsOf2022-03-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesIssued" contextRef="AsOf2021-12-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:PreferredStockSharesOutstanding" contextRef="AsOf2021-12-31" format="ixt-sec:numwordsen" decimals="INF" unitRef="Shares">no</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></span></span></span></span> shares of preferred stock issued or outstanding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Class&#160;A
Common Stock </i></b>&#8212; The Company was authorized to issue <span id="xdx_907_eus-gaap--CommonStockSharesAuthorized_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_z37xkOaVms84" title="Common stock, shares authorized"><span id="xdx_903_eus-gaap--CommonStockSharesAuthorized_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zPmxPSCPwOil" title="Common stock, shares authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">100,000,000</ix:nonFraction></ix:nonFraction></span></span> shares of Class&#160;A common stock with a par value of
$<span id="xdx_908_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zBbty4aq8Bdg" title="Common stock, par value"><span id="xdx_90B_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zaqFlBqkinX6" title="Common stock, par value"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></ix:nonFraction></span></span> per share. Holders of Class&#160;A common stock are entitled to one vote for each share. At March 31, 2022 and December 31, 2021,
there were <span id="xdx_90C_ecustom--CommonStockShareIssued_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdd" title="Common stock, shares issued"><span id="xdx_903_ecustom--CommonStockShareOutstanding_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_pdd" title="Common Stock, Shares, Outstanding"><span id="xdx_90E_ecustom--CommonStockShareIssued_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zeZeCK08pSi" title="Common stock, shares issued"><span id="xdx_90A_ecustom--CommonStockShareOutstanding_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassAMember_zbweEHxmm7s4" title="Common Stock, Shares, Outstanding"><ix:nonFraction name="AVACU:CommonStockShareIssued" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="AVACU:CommonStockShareOutstanding" contextRef="AsOf2022-03-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="AVACU:CommonStockShareIssued" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="AVACU:CommonStockShareOutstanding" contextRef="AsOf2021-12-31_custom_CommonStockClassAMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,855,250</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></span></span></span></span> shares of Class A common stock issued and outstanding, of which <span id="xdx_908_eus-gaap--SharesSubjectToMandatoryRedemptionSettlementTermsNumberOfShares_iI_c20220331_zmpM66Ltbrzj" title="Redemption shares"><ix:nonFraction name="us-gaap:SharesSubjectToMandatoryRedemptionSettlementTermsNumberOfShares" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">20,700,000</ix:nonFraction></span> shares are subject to redemption.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Class&#160;B
Common Stock</i></b> &#8212; The Company was authorized to issue <span id="xdx_908_eus-gaap--CommonStockSharesAuthorized_c20220331__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_pdd" title="Common stock, shares authorized"><span id="xdx_905_eus-gaap--CommonStockSharesAuthorized_iI_c20211231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_ztMzvlNJDGSc" title="Common stock, shares authorized"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2022-03-31_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesAuthorized" contextRef="AsOf2021-12-31_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">10,000,000</ix:nonFraction></ix:nonFraction></span></span> shares of Class&#160;B common stock with a par value of $<span id="xdx_90D_eus-gaap--CommonStockParOrStatedValuePerShare_c20220331__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_pdd" title="Common stock, par value"><span id="xdx_906_eus-gaap--CommonStockParOrStatedValuePerShare_iI_c20211231__us-gaap--StatementClassOfStockAxis__us-gaap--CommonClassBMember_zAF2JnqZtus9" title="Common stock, par value"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2022-03-31_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares"><ix:nonFraction name="us-gaap:CommonStockParOrStatedValuePerShare" contextRef="AsOf2021-12-31_us-gaap_CommonClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="USDPShares">0.0001</ix:nonFraction></ix:nonFraction></span></span>
per share. Holders of Class&#160;B common stock are entitled to one vote for each share. At March 31, 2022 and December 31, 2021, there
were <span id="xdx_903_eus-gaap--CommonStockSharesIssued_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_zZqaGzOq47c9" title="Common stock, shares issued"><span id="xdx_904_eus-gaap--CommonStockSharesOutstanding_iI_c20220331__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_zX0bfQqHXVhf" title="Common Stock, Shares, Outstanding"><span id="xdx_90C_eus-gaap--CommonStockSharesIssued_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_z8BNeRsiGYrb" title="Common stock, shares issued"><span id="xdx_90D_eus-gaap--CommonStockSharesOutstanding_iI_c20211231__us-gaap--StatementClassOfStockAxis__custom--CommonStockClassBMember_ztjNUBzJ9NR" title="Common Stock, Shares, Outstanding"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2022-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2022-03-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesIssued" contextRef="AsOf2021-12-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares"><ix:nonFraction name="us-gaap:CommonStockSharesOutstanding" contextRef="AsOf2021-12-31_custom_CommonStockClassBMember" format="ixt:numdotdecimal" decimals="INF" unitRef="Shares">5,175,000</ix:nonFraction></ix:nonFraction></ix:nonFraction></ix:nonFraction></span></span></span></span> shares of Class&#160;B common stock issued and outstanding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Holders
of Class&#160;B common stock will have the right to elect all of the Company&#8217;s directors prior to a Business Combination. Holders
of Class&#160;A common stock and Class&#160;B common stock will vote together as a single class on all other matters submitted to a vote
of stockholders except as required by law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
shares of Class&#160;B common stock will automatically convert into shares of Class&#160;A common stock on the first business day following
the completion of a Business Combination at a ratio such that the number of shares of Class&#160;A common stock issuable upon conversion
of all Founder shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of (i)&#160;the total number of shares of
the Company&#8217;s common stock issued and outstanding upon completion of Initial Public Offering, plus (ii)&#160;the sum of (a)&#160;all
shares of the Company&#8217;s common stock issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities
or deemed issued by the Company in connection with or in relation to the completion of a Business Combination, excluding (1)&#160;any
shares of Class&#160;A common stock or equity-linked securities exercisable for or convertible into shares of Class&#160;A common stock
issued, or to be issued, to any seller in a Business Combination and any (2)&#160;Private Placement Warrants issued to the Sponsor or
any of its affiliates upon conversion of Working Capital Loans minus (b)&#160;the number of Public Shares redeemed by public stockholders
in connection with a Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Warrants </i></b>&#8212;
Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the
Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a)&#160;30&#160;days after
the completion of a Business Combination or (b)&#160;12&#160;months from the closing of the Initial Public Offering. The Public
Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. As of
March 31, 2022 and December 31, 2021, <span id="xdx_904_eus-gaap--WarrantsAndRightsOutstanding_iI_pp0p0_c20220331__us-gaap--ClassOfWarrantOrRightAxis__custom--PublicWarrantsMember_zAgPteWjFy84" title="Warrants"><span id="xdx_90F_eus-gaap--WarrantsAndRightsOutstanding_iI_pp0p0_c20211231__us-gaap--ClassOfWarrantOrRightAxis__custom--PublicWarrantsMember_z33MqjVTSlKc" title="Warrants"><ix:nonFraction name="us-gaap:WarrantsAndRightsOutstanding" contextRef="AsOf2022-03-31_custom_PublicWarrantsMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD"><ix:nonFraction name="us-gaap:WarrantsAndRightsOutstanding" contextRef="AsOf2021-12-31_custom_PublicWarrantsMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">15,525,000</ix:nonFraction></ix:nonFraction></span></span>
Public Warrants and <span id="xdx_900_eus-gaap--WarrantsAndRightsOutstanding_iI_pp0p0_c20220331__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivateWarrantsMember_zxsc5K6bmVG" title="Warrants"><span id="xdx_90E_eus-gaap--WarrantsAndRightsOutstanding_iI_pp0p0_c20211231__us-gaap--ClassOfWarrantOrRightAxis__custom--PrivateWarrantsMember_zB9dmMyMHOc8" title="Warrants"><ix:nonFraction name="us-gaap:WarrantsAndRightsOutstanding" contextRef="AsOf2022-03-31_custom_PrivateWarrantsMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD"><ix:nonFraction name="us-gaap:WarrantsAndRightsOutstanding" contextRef="AsOf2021-12-31_custom_PrivateWarrantsMember" format="ixt:numdotdecimal" decimals="0" scale="0" unitRef="USD">8,100,000</ix:nonFraction></ix:nonFraction></span></span>
Private Warrants were outstanding.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company will not be obligated to deliver any shares of Class&#160;A common stock pursuant to the exercise of a warrant and will have
no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of
Class&#160;A common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company
satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable
and the Company will not be obligated to issue shares of Class&#160;A common stock upon exercise of a warrant unless the share of Class&#160;A
common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the
state of residence of the registered holder of the warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination,
the Company will use its commercially reasonable efforts to file with the SEC a registration statement for the registration, under the
Securities Act, of the shares of Class&#160;A common stock issuable upon exercise of the warrants. The Company will use its commercially
reasonable efforts to cause the same to become effective within 60 business days following the closing of our initial business combination
and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration or
redemption of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the issuance
of the shares of Class&#160;A common stock issuable upon exercise of the warrants is not effective by the 60th business day after the
closing of a Business Combination, warrant holders may, until such time as there is an effective registration statement and during any
period when the company will have failed to maintain an effective registration statement, exercise warrants on a &#8220;cashless basis&#8221;
in accordance with Section&#160;3(a)(9) of the Securities Act or another exemption. In addition, if the Class&#160;A common stock are
at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a &#8220;covered
security&#8221; under Section&#160;18(b)(1) of the Securities Act, the Company may, at its option, require holders of the Public Warrants
who exercise their warrants to do so on a &#8220;cashless basis&#8221; in accordance with Section&#160;3(a)(9) of the Securities Act
and, in the event the Company elects to do so, the Company will not be required to file or maintain in effect a registration statement,
but it will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Redemption
of warrants when the price per share of Class&#160;A common stock equals or exceeds $18.00. </i>Once the Public Warrants become exercisable,
the Company may redeem the Public Warrants (except with respect to the Private Placement Warrants):</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 0.25in; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">in whole and not in part;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">at a price of $0.01 per warrant;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">upon not less than 30&#160;days prior written notice of redemption to each warrant holder; and</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">if, and only if, the reported last sale price of the shares of the Company&#8217;s Class&#160;A common stock for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders (the &#8220;Reference Value&#8221;) equals or exceeds $18.00 per share (as adjusted).</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
and when the warrants become redeemable by the Company, the company may exercise its redemption right even if it is unable to register
or qualify the underlying securities for sale under all applicable state securities laws.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<ix:exclude><p id="xdx_23A_zG7tdQftZ1Jj" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Redemption
of warrants when the price per share of Class&#160;A common stock equals or exceeds $10.00.</i>&#160;Once the Public Warrants become
exercisable, the Company may redeem the Public Warrants:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%">
<tr style="vertical-align: top">
<td style="width: 0.25in; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 0.25in; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">in whole and not in part;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">at $0.10 per warrant upon a minimum of 30 days prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class&#160;A common stock;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">if, and only if, the Reference Value equals or exceeds $10.00 per share (as adjusted); and</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#9679;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">if the Reference Value is less than $18.00 per share (as adjusted), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
and when the Public Warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to
register or qualify the underlying securities for sale under all applicable state securities laws.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the
Public Warrants to do so on a &#8220;cashless basis,&#8221; as described in the warrant agreement. The exercise price and number of shares
of Class&#160;A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of
a stock dividend, or recapitalization, reorganization, merger or consolidation. However, except as described below, the warrants will
not be adjusted for issuances of Class&#160;A common stock at a price below its exercise price. Additionally, in no event will the Company
be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period
and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to
their warrants, nor will they receive any distribution from the Company&#8217;s assets held outside of the Trust Account with the respect
to such warrants. Accordingly, the warrants may expire worthless.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><span id="xdx_904_ecustom--RedemptionOfWarrantsDescription_c20220101__20220331" title="Redemption of warrants description"><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" name="AVACU:RedemptionOfWarrantsDescription">In
addition, if (x)&#160;the Company issues additional shares of Class&#160;A common stock or equity-linked securities for capital raising
purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per Class&#160;A
common (with such issue price or effective issue price to be determined in good faith by the Company&#8217;s board of directors and,
in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor
or such affiliates, as applicable, prior to such issuance) (the &#8220;Newly Issued Price&#8221;), (y)&#160;the aggregate gross proceeds
from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business
Combination on the date of the consummation of a Business Combination (net of redemptions), and (z)&#160;the volume weighted average
trading price of the Company&#8217;s Class&#160;A common stock during the 20 trading day period starting on the trading day prior to
the day on which the Company consummates a Business Combination (such price, the &#8220;Market Value&#8221;) is below $9.20 per share,
the exercise price of the Public Warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value
and the Newly Issued Price, the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be
equal to 180% of the higher of the Market Value and the Newly Issued Price, and the $10.00 per share redemption trigger price described
above will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price.</ix:nonNumeric></span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Private Placement Warrants are identical to the Public Warrants underlying the Units being sold in the Initial Public Offering,
except that the Private Placement Warrants and the Class&#160;A common stock issuable upon the exercise of the Private Placement
Warrants will not be transferable, assignable or salable until the completion of a Business Combination, subject to certain limited
exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as
they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other
than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and
exercisable by such holders on the same basis as the Public Warrants.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:FairValueMeasurementInputsDisclosureTextBlock"><p id="xdx_80E_eus-gaap--FairValueMeasurementInputsDisclosureTextBlock_zkMLTp9UpV0a" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
9&#160;&#8211; <span id="xdx_825_z6G1SK8wedTa">FAIR VALUE MEASUREMENTS</span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each
reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
fair value of the Company&#8217;s financial assets and liabilities reflects management&#8217;s estimate of amounts that the Company would
have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction
between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company
seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable
inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is
used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and
liabilities:</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which
transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets
or liabilities and quoted prices for identical assets or liabilities in markets that are active.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Level
3: Unobservable inputs based on the Company&#8217;s assessment of the assumptions that market participants would use in pricing the asset
or liability.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 0 24.5pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following tables present information about the Company&#8217;s assets and liabilities that are measured at fair value on a recurring
basis as of March 31, 2022 and December 31, 2021 and indicate the fair value hierarchy of the valuation techniques that the Company utilized
to determine such fair value.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"></p>

<ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:FairValueAssetsMeasuredOnRecurringBasisTextBlock"><table cellpadding="0" cellspacing="0" id="xdx_897_eus-gaap--FairValueAssetsMeasuredOnRecurringBasisTextBlock_zjjnDSxDfv7g" summary="xdx: Disclosure - Fair Value Measurements (Details)" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom; background-color: White">
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  <tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; border-collapse: collapse; width: 100%">
  <tr style="vertical-align: bottom; background-color: White">
    <td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">&#160;</td><td>&#160;</td>
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
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    <td style="padding: 0pt 0pt 0pt 10pt; text-indent: -10pt">&#160;</td><td>&#160;</td>
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    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td><td>&#160;</td>
    <td style="text-align: left">&#160;</td><td style="text-align: right">&#160;</td><td style="text-align: left">&#160;</td></tr>
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    <td style="padding: 0pt 0pt 0pt 20pt; text-align: left; text-indent: -10pt">Private Placement Warrants</td><td>&#160;</td>
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</ix:nonNumeric><p id="xdx_8AF_zl8ZINGHLMPf" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Transfers
to/from Levels 1, 2, and 3 are recognized at the end of each reporting period.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Derivative
Financial Instruments</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span>The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with ASC Topic 815, &#8220;Derivatives and Hedging&#8221;. For derivative financial instruments that are accounted
for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each
reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments,
including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.
Derivative liabilities are classified on the balance sheet as current or non-current based on whether or not net-cash settlement or conversion
of the instrument could be required within 12 months of the balance sheet date.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><i>Warrants</i></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span>The
Warrants are accounted for as liabilities in accordance with ASC&#160;815-40&#160;and are presented within derivative warrant liabilities
on the condensed balance sheet. Derivative warrant liabilities are measured at fair value at inception and on a recurring basis, with
changes in fair value presented within change in fair value of warrant liabilities in the condensed statements of operations.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Initial
Measurement</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; background-color: white"><span style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span>The
Company established the initial fair value for the warrants on October 8, 2021, the date of the Company&#8217;s Initial Public Offering,
using a market-based approach for the Private Placement Warrants and the Public Warrants. The Company allocated the proceeds received
from (i)&#160;the sale of Units (which is inclusive of one share of Class&#160;A common stock and&#160;three-fourth&#160;of one Public
Warrant), (ii) the sale of Private Placement Warrants, and (iii)&#160;the issuance of Class&#160;B common stock, first to the Warrants
based on their fair values as determined at initial measurement, with the remaining proceeds allocated to Class&#160;A common stock subject
to possible redemption (temporary equity), Class&#160;A common stock (permanent equity) and Class&#160;B common stock (permanent equity)
based on their relative fair values at the initial measurement date. The Warrants were classified as Level&#160;3 at the initial measurement
date due to the use of unobservable inputs. On October 8, 2021, the Private Placement Warrants and Public Warrants were determined to
have aggregate values of $4.78 million and $9.16 million, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<ix:exclude><p id="xdx_230_zJICDVn3Erl8" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 36pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p></ix:exclude>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Subsequent
Measurement</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</span>The
Warrants are measured at fair value on a recurring basis. The subsequent measurement of the Public Warrants as of March 31, 2022 and
December&#160;31, 2021 is classified as Level&#160;1 due to the use of an observable market quote in an active market under the
ticker AVACW. As the transfer of Private Placement Warrants to anyone outside of a small group of individuals who are permitted
transferees would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company
determined that the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant, with an insignificant
adjustment for short-term marketability restrictions. As such, the Private Placement Warrants are classified as Level&#160;2. As of
March 31, 2022, the aggregate values of the Private Placement Warrants and Public Warrants were $<span id="xdx_905_ecustom--PlacementWarrants_iI_pn3n3_dm_c20220331_zkgqCgwHiAt5" title="Placement Warrants"><ix:nonFraction name="AVACU:PlacementWarrants" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="-3" scale="6" unitRef="USD">1.86</ix:nonFraction></span>
million and $<span id="xdx_907_ecustom--PublicWarrants_iI_pn3n3_dm_c20220331_zVvqeOPZIGc9" title="Public Warrants"><ix:nonFraction name="AVACU:PublicWarrants" contextRef="AsOf2022-03-31" format="ixt:numdotdecimal" decimals="-3" scale="6" unitRef="USD">3.57</ix:nonFraction></span>
million, respectively. As of December 31, 2021, the aggregate values of the Private Placement Warrants and Public Warrants were
$<span id="xdx_904_ecustom--PlacementWarrants_iI_pn3n3_dm_c20211231_zTww29fXR1Ca" title="Placement Warrants"><ix:nonFraction name="AVACU:PlacementWarrants" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="-3" scale="6" unitRef="USD">3.16</ix:nonFraction></span>
million and $<span id="xdx_90F_ecustom--PublicWarrants_iI_pn3n3_dm_c20211231_zLQ3WCj312N9" title="Public Warrants"><ix:nonFraction name="AVACU:PublicWarrants" contextRef="AsOf2021-12-31" format="ixt:numdotdecimal" decimals="-3" scale="6" unitRef="USD">6.05</ix:nonFraction></span>
million, respectively.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 36pt; background-color: white"></p>

</ix:nonNumeric><ix:nonNumeric contextRef="From2022-01-01to2022-03-31" escape="true" name="us-gaap:SubsequentEventsTextBlock"><p id="xdx_80E_eus-gaap--SubsequentEventsTextBlock_z61RDw0mwLCk" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>NOTE
10 &#8212; <span id="xdx_826_zOz0N5JSueB4">SUBSEQUENT EVENTS </span></b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company evaluated subsequent events and transactions that occurred after the balance sheet date through May 12, 2022, the date that
the unaudited condensed financial statements were issued. The Company did not identify any subsequent events that would have
required adjustment or disclosure in the financial statements.</span></p>

</ix:nonNumeric><p id="xdx_81B_z2eGAIjLJjG5" style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 24.5pt"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_007"></span>Item
2. Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operations.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">References
in this quarterly report on Form 10-Q (the &#8220;Quarterly Report&#8221;) to &#8220;we,&#8221; &#8220;us&#8221; or the
&#8220;Company&#8221; refer to Avalon Acquisition Inc. References to our &#8220;management&#8221; or our &#8220;management
team&#8221; refer to our officers and directors, and references to the &#8220;Sponsor&#8221; refer to Avalon Acquisition Holdings
LLC. The following discussion and analysis of the Company&#8217;s financial condition and results of operations should be read in
conjunction with the financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information
contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and
uncertainties.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Special
Note Regarding Forward-Looking Statements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">This
Quarterly Report includes &#8220;forward-looking statements&#8221; within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended
(the &#8220;Exchange Act&#8217;) that are not historical facts and involve risks and uncertainties that could cause actual results
to differ materially from those expected and projected. All statements, other than statements of historical fact included in this
Quarterly Report including, without limitation, statements in this &#8220;Management&#8217;s Discussion and Analysis of Financial
Condition and Results of Operations&#8221; regarding the Company&#8217;s financial position, business strategy and the plans and
objectives of management for future operations, are forward-looking statements. Words such as &#8220;expect,&#8221;
&#8220;believe,&#8221; &#8220;anticipate,&#8221; &#8220;intend,&#8221; &#8220;estimate,&#8221; &#8220;seek&#8221; and variations and
similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to
future events or future performance, but reflect management&#8217;s current beliefs, based on information currently available. A
number of factors could cause actual events, performance or results to differ materially from the events, performance and results
discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ
materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of this Quarterly
Report and the Risk Factors section of our Form 10-K filed with the SEC on March 30, 2022. The Company&#8217;s securities filings
can be accessed on the EDGAR section of the SEC&#8217;s website at www.sec.gov. Except as expressly required by applicable
securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Overview</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are a blank check company formed on October 12, 2020, under the laws of the State of Delaware. We were incorporated for the purpose of
effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with
one or more businesses or entities that we have not yet identified (the &#8220;Business Combination&#8221;).</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">As
of March 31, 2022, we have not yet commenced operations. All activity for the period from October 12, 2020 (inception) through March
31, 2022, relates to our formation, our initial public offering (the &#8220;Initial Public Offering&#8221;), which is described below,
and our search for a prospective initial business combination. We do not expect to generate any operating revenues until after the completion
of our Business Combination, at the earliest. We generate non-operating income in the form of income from the proceeds derived from the
Initial Public Offering.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our sponsor is Avalon Acquisition Holdings LLC, a
Delaware limited liability company (the &#8220;Sponsor&#8221;). The registration statement for our Initial Public Offering was declared
effective by the SEC on October 5, 2021. On October 8, 2021, we consummated our Initial Public Offering of 20,700,000 units (the &#8220;Units&#8221;
and, with respect to the Class A common stock included in the Units being offered, the &#8220;Public Shares&#8221;), at $10.00 per Unit,
including 2,700,000 Units sold as part of the exercise of the underwriter&#8217;s over-allotment option in full, generating gross proceeds
of $207,000,000. We incurred $11,648,816 in transaction costs, including $3,708,007 of underwriting fees, $7,245,000 of deferred underwriting
fees and $695,809 of other costs.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Simultaneously
with the closing of the Initial Public Offering, we consummated the sale of 8,100,000 warrants (each, a &#8220;Private Placement Warrant&#8221;
and, collectively, the &#8220;Private Placement Warrants&#8221;) at a price of $1.00 per Private Placement Warrant in a private placement
to our Sponsor, generating gross proceeds of $8,100,000.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Following
the Initial Public Offering, the exercise of the over-allotment option and the sale of the Private Placement Warrants, a total of $210,105,000
was placed in a trust account (&#8220;Trust Account&#8221;), located in the United States with Continental Stock Transfer &amp; Trust
Company acting as trustee, and is invested only in an open-ended investment company that holds itself out as a money market fund selected
by the Company meeting the conditions of Rule&#160;2a-7 of the Investment Company Act, until the earlier of: (i)&#160;the completion
of a Business Combination or (ii)&#160;the distribution of the funds in the Trust Account, as described below.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
units, shares of Class A common stock, and public warrants are each traded on the Nasdaq Global Market under the symbols &#8220;AVACU,&#8221;
&#8220;AVAC,&#8221; and &#8220;AVACW,&#8221; respectively. Our units commenced public trading on October 6, 2021, and our shares of Class
A common stock and public warrants commenced separate public trading on December 3, 2021.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
Company&#8217;s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering
and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward
consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">If
we do not complete a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose
of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a
per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the
funds held in the Trust Account and not previously released to the Company to pay taxes (less up to $100,000 to pay dissolution expenses),
divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders&#8217; rights
as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly
as reasonably possible following such redemption, subject to the approval of the Company&#8217;s remaining stockholders and the Company&#8217;s
board of directors, dissolve and liquidate, subject in each case to the Company&#8217;s obligations under Delaware law to provide for
claims of creditors and the requirements of other applicable law.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Liquidity
and Going Concern</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2022, we had $730,120 in our operating
bank account, $210,130,244 in securities held in the Trust Account, and working capital of $1,199,924. We intend to use the funds held in the Trust Account, including any amounts representing income earned on the Trust
Account (less taxes payable), to complete our Business Combination. To the extent that our share capital or debt is used, in whole or
in part, as consideration to complete our 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.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the three months ended March 31, 2022, net
cash used in operating activities was $306,573. Net income for the period of $3,651,354 was impacted by income earned on investments
held in Trust Account of $21,157 and change in fair value of derivative warrant liabilities of $3,780,000. Net changes in operating
assets and liabilities used $156,770 of cash from operating activities.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the three months ended March 31, 2021, net
cash used in operating activities was $1,947. Net loss for the period of $450 was impacted by net changes in operating assets and
liabilities of $1,497.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
liquidity needs prior to the consummation of our Initial Public Offering were satisfied through the payment of $25,000 from the
Sponsor to cover certain expenses on behalf of the Company in exchange for the issuance of 5,175,000 of Class B common stock, par
value $0.0001 per share (the &#8220;Founder Shares&#8221;), and a $197,000 loan from our Sponsor, under an unsecured promissory
note, which was repaid the Note in full on October 15, 2021. Subsequent to the consummation of the Initial Public Offering, the
Company&#8217;s liquidity has been satisfied through the net proceeds of $1.82 million from the consummation of the Initial Public
Offering (including the Over-Allotment) and the Private Placement held outside of the Trust Account. In addition, in order to
finance transaction costs in connection with a Business Combination, our Sponsor or an affiliate of our Sponsor, or certain of our
officers and directors may, but are not obligated to, provide us the funds as may be required (&#8220;Working Capital Loans&#8221;).
As of March 31, 2022, there were no amounts outstanding under any Working Capital Loans.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
connection with the Company&#8217;s assessment of going concern considerations in accordance with Financial Accounting Standards Board
(&#8220;FASB&#8221;) Accounting Standards Update (&#8220;ASU&#8221;)&#160;2014-15,&#160;&#8221;Disclosures of Uncertainties about an
Entity&#8217;s Ability to Continue as a Going Concern,&#8221; management has determined that the mandatory liquidation and subsequent
dissolution raises substantial doubt about the Company&#8217;s ability to continue as a going concern. No adjustments have been made
to the carrying amounts of assets or liabilities should the Company be required to liquidate after January 8, 2023. The financial statements
do not include any adjustment that might be necessary if the Company is unable to continue as a going concern. Management plans to complete
a business combination prior to the mandatory liquidation.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
on the foregoing, our management believes that we will have sufficient working capital and borrowing capacity to meet its needs through
the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, we will be using the funds
held outside of the Trust Account for paying existing accounts payable, identifying and evaluating prospective initial Business Combination
candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business
to merge with or acquire, and structuring, negotiating and consummating the Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Results
of Operations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Our
entire activity from October 12, 2020 (inception) through October 7, 2021 was in preparation for an Initial Public Offering, and since
our Initial Public Offering, our activity has been limited to the search for a prospective initial Business Combination. We will not
generate any operating revenues until the closing and completion of our initial Business Combination.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the three months ended March 31, 2022, we had a net income of $3,651,354, which consisted of operating costs of $99,753 and
franchise tax expense of $50,050, offset by income earned on investments held in the Trust Account of $21,157 and change in fair
value of derivative warrant liabilities of $3,780,000.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">For
the three months ended March 31, 2021, we had a net loss $450, which consisted of formation costs.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Contractual
Obligations</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Registration
and Stockholder Rights</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and
any Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion
of Working Capital Loans) are entitled to registration rights pursuant to a registration rights agreement. The holders of these securities
are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have
certain &#8220;piggy-back&#8221; registration rights with respect to registration statements filed subsequent to the completion of the
initial Business Combination. We will bear the expenses incurred in connection with the filing of any such registration statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Underwriting
Agreement</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
underwriters were paid an underwriting discount of $0.125 per unit, or $2,587,500 in the aggregate, upon the closing of our Initial Public
Offering. In addition, $0.35 per unit, or $7,245,000 in the aggregate, will be payable to the underwriters for deferred underwriting
commissions from the amounts held in the Trust Account solely in the event that that we complete a Business Combination, subject to the
terms of the underwriting agreement.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
granted the underwriters a 45-day&#160;option from the date of our Initial Public Offering to purchase up to 2,700,000 additional Units
at the Initial Public Offering price less the underwriting discounts and commissions. The underwriters exercised their over-allotment
option in full on October 8, 2021, generating gross proceeds of $27 million.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Administrative
Support Agreement</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than an agreement
to pay the Sponsor a monthly fee of $10,000 for office space, administrative and support services to the Company. We began incurring
these fees on October 8, 2021 and will continue to incur these fees monthly until the earlier of the completion of the Business Combination
and our liquidation. For the three months ended March 31, 2022, we incurred $30,000 for these services.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Critical
Accounting Policies and Estimates</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt; background-color: white">This
management&#8217;s discussion and analysis of our financial condition and results of operations is based on our unaudited condensed financial
statements, which have been prepared in accordance with GAAP. The preparation of these unaudited condensed financial statements requires
us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure
of contingent assets and liabilities in our financial statements. On an ongoing basis, we evaluate our estimates and judgments, including
those related to fair value of financial instruments and accrued expenses. We base our estimates on historical experience, known trends
and events and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates under different assumptions or conditions. There have been no significant changes in our critical accounting
policies as discussed in the Form&#160;</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">10-K<span style="background-color: white">&#160;filed
by us with the SEC on March 30, 2022.</span></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Recent
Accounting Standards</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In August 2020, the FASB issued ASU No. 2020-06, &#8220;Debt-Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity&#8217;s Own Equity (Subtopic 815-40):
Accounting for Convertible Instruments and Contracts in an Entity&#8217;s Own Equity&#8221; (&#8220;ASU 2020-06&#8221;), which simplifies
accounting for convertible instruments by removing major separation models required under current GAAP. ASU 2020-06 removes certain settlement
conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings
per share calculation in certain areas. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim
periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact on our condensed financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Management
does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material
effect on our condensed financial statements.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>Off-Balance
Sheet Arrangements</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We did not have any off-balance sheet arrangements
as defined in Item 303(a)(4)(ii) of Regulation S-K as of March 31, 2022.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>JOBS
Act</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">The Jumpstart Our Business Startups Act of 2012 (the&#160;&#8220;<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">JOBS
Act&#8221;) contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We qualify
as an &#8220;emerging growth company&#8221; and under the&#160;JOBS Act&#160;are allowed to comply with new or revised accounting pronouncements
based on the effective date for private (not publicly traded) companies.</span><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">
        We are electing to delay the adoption of new or revised accounting standards,
and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards
is required for non-emerging growth companies. As such, our financial statements may not be comparable to companies that comply with
public company effective dates.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Additionally,
we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject
to certain conditions set forth in the JOBS Act, if, as an &#8220;emerging growth company,&#8221; we choose to rely on such exemptions
we may not be required to, among other things, (i) provide an auditor&#8217;s attestation report on our system of internal controls over
financial reporting pursuant to Section 404 of the JOBS Act, (ii) provide all of the compensation disclosure that may be required of
non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement
that may be adopted by the Public Company Accounting and Oversight Board regarding mandatory audit firm rotation or a supplement to the
auditor&#8217;s report providing additional information about the audit and the financial statements (auditor discussion and analysis)
and (iv) disclose certain executive compensation related items such as the correlation between executive compensation and performance
and comparisons of our Chief Executive Officer&#8217;s compensation to median employee compensation. These exemptions will apply for
a period of five years following the completion of our Initial Public Offering or until we are no longer an &#8220;emerging growth company,&#8221;
whichever is earlier.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_008"></span>Item
3. Quantitative and Qualitative Disclosures About Market Risk</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
are a smaller reporting company as defined by Rule&#160;12b-2&#160;of the Exchange Act and are not required to provide the
information otherwise required under this item. As of March 31, 2022, we were not subject to any market or interest rate risk. The
net proceeds of the Initial Public Offering (including the Over-Allotment), including amounts in the Trust Account, are invested in
 a money market fund that meet certain conditions under Rule&#160;2a-7&#160;under the Investment Company Act that invest only in direct U.S. government treasury obligations. Due to the short-term nature of these investments, we believe there
will be no associated material exposure to interest rate risk.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">We
have not engaged in any hedging activities since our inception, and we do not expect to engage in any hedging activities with respect
to the market risk to which we are exposed.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_009"></span>Item
4. Controls and Procedures</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Evaluation
of Disclosure Controls and Procedures</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Disclosure
controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded,
processed, summarized, and reported within the time periods specified in the SEC&#8217;s rules and forms, and that such information is
accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons
performing similar functions, as appropriate to allow timely decisions regarding required disclosure.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Under
the supervision and with the participation of our management, we conducted an evaluation of the effectiveness of our disclosure controls
and procedures as of the end of the fiscal quarter ended March 31, 2022, as such term is defined in Rules 13a-15(e) and 15d-15(e) under
the Exchange Act. Based upon that evaluation and in light of the SEC Staff Statement, our Certifying Officers concluded that no material
weakness existed and our disclosure controls and procedures were effective as of March 31, 2022.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><i>Changes
in Internal Control over Financial Reporting</i></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">There
was no change in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2022 covered by
this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over
financial reporting.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_010"></span>PART
II - OTHER INFORMATION</b>&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b>&#160;</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"><b><span id="a_011"></span>Item
1. Legal Proceedings.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_012"></span>Item
1A. Risk Factors.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">You should consider the risks and uncertainties described
under Item&#160;1A of Part&#160;I of our Annual Report on Form 10-K for the fiscal year ended&#160;December&#160;31, 2021, which we filed
with the Securities and Exchange Commission (the SEC&#8221;) on&#160;March 30, 2022, together with all other information contained or
incorporated by reference in this Quarterly Report on Form 10-Q, including the risk factor described below, when evaluating our business
and our prospects.<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">Other than as set forth below,&#160;there
are no material changes to the risk factors set forth in Part&#160;I, Item&#160;1A, in our Annual Report on Form&#160;10-K for the year
ended&#160;December&#160;31, 2021. Additional risk factors not presently known to us or that we currently deem immaterial may also impair
our business or results of operations.</p>

<p style="text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify">&#160;</p>

<p style="text-indent: 0pt; font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify"><b><i>Our search for a Business Combination,
and any target business with which we may ultimately consummate a Business Combination, may be materially adversely affected by the geopolitical
conditions resulting from the recent invasion of Ukraine by Russia and subsequent sanctions against Russia, Belarus and related individuals
and entities and the status of debt and equity markets, as well as protectionist legislation in our target markets.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; text-indent: 0pt; margin: 0pt; text-align: justify"><b><i>&#160;</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">United States and global
markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the recent invasion of Ukraine&#160;by
Russia in February 2022. In response to such invasion, the North Atlantic Treaty Organization (&#8220;NATO&#8221;) deployed additional
military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced various
sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain financial
institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Certain countries, including
the United States, have also provided and may continue to provide military aid or other assistance to Ukraine during the ongoing military
conflict, increasing geopolitical tensions with Russia. The invasion of Ukraine by Russia and the resulting measures that have been taken,
and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union and other countries have created
global security concerns that could have a lasting impact on regional and global economies. Although the length and impact of the ongoing
military conflict in Ukraine is highly unpredictable, the conflict could lead to market disruptions, including significant volatility
in commodity prices, credit and capital markets, as well as supply chain interruptions. Additionally, Russian military actions and the
resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital
markets.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">Any of the abovementioned
factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian
invasion of&#160;Ukraine and subsequent sanctions, could adversely affect our search for a Business Combination and any target business
with which we may ultimately consummate a Business Combination. The extent and duration of the Russian invasion of Ukraine, resulting
sanctions and any related market disruptions are impossible to predict, but could be substantial, particularly if current or new sanctions
continue for an extended period of time or if geopolitical tensions result in expanded military operations on a global scale. Any such
disruptions may also have the effect of heightening many of the other risks described in the &#8220;Risk Factors&#8221; section of our
Annual Report on Form 10-K. If these disruptions or other matters of global concern continue for an extensive period of time, our ability
to consummate a Business Combination, or the operations of a target business with which we&#160;may&#160;ultimately consummate a Business
Combination, may be materially adversely affected.</p>

<p style="font: 10pt Times New Roman, Times, Serif; text-align: center; margin-top: 0; margin-bottom: 0">&#160;<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span></p>

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif"></span>&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify"><b><i>Changes in laws or regulations, or a
failure to comply with any laws and regulations, may adversely affect our business, including our ability to negotiate and complete a
business combination and results of operations.</i></b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt; text-align: justify; text-indent: 0pt">We are subject to laws and regulations
enacted by national, regional and local governments. In particular, we will be required to comply with certain SEC and other legal requirements.
Compliance with, and monitoring of, applicable laws and regulations may be difficult, time-consuming and costly. Those laws and regulations
and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our
business, investments, and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted
and applied, could have a material adverse effect on our business, including our ability to negotiate and complete a Business Combination
and results of operations of target business with which we may ultimately consummate a Business Combination.</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="margin: 0; text-align: justify">On March 30, 2022, the SEC <span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">issued
proposed rules (the &#8220;2022 Proposed Rules&#8221;) relating to, among other items, enhancing disclosures in business combination
transactions involving special purpose acquisition companies (&#8220;SPACs&#8221;) and private operating companies; amending the financial
statement requirements applicable to transactions involving shell companies; effectively limiting the use of projections in SEC filings
in connection with proposed business combination transactions; increasing the potential liability of certain participants in proposed
business combination transactions; and the extent to which SPACs could become subject to regulation under the&#160;Investment Company
Act. These rules, if adopted, whether in the form proposed or in revised form, and certain interpretations expressed by the SEC
in connection therewith, may materially adversely affect our ability to negotiate and complete our initial business combination and may
increase the costs and time related thereto.</span></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_013"></span>Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None.</span></p>


<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_014"></span>Item
3. Defaults Upon Senior Securities.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_015"></span>Item
4. Mine Safety Disclosures.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">Not
Applicable.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_016"></span>Item
5. Other Information.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">None.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_017"></span>Item
6. Exhibits.</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">The
following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td colspan="2" style="border-bottom: black 1pt solid; padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif"><b>No.</b></span></td>
<td style="border-bottom: white 1pt solid; padding: 0.25pt 0.25pt 0.5pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="border-bottom: black 1pt solid; padding: 0pt; text-align: center; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>Description of Exhibit</b></span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">31.1*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><a href="e3721_ex31-1.htm"><span style="font: 10pt Times New Roman, Times, Serif">Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">31.2*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><a href="e3721_ex31-2.htm"><span style="font: 10pt Times New Roman, Times, Serif">Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">32.1**</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><a href="e3721_ex32-1.htm"><span style="font: 10pt Times New Roman, Times, Serif">Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">32.2**</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><a href="e3721_ex32-2.htm"><span style="font: 10pt Times New Roman, Times, Serif">Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</span></a></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">101.INS*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Instance Document.</span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">101.SCH*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Taxonomy Extension Schema Document.</span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">101.CAL*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Taxonomy Extension Calculation Linkbase Document.</span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">101.DEF*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Taxonomy Extension Definition Linkbase Document.</span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">101.LAB*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Taxonomy Extension Labels Linkbase Document.</span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">101.PRE*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Inline XBRL Taxonomy Extension Presentation Linkbase Document.</span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">104*</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Cover Page Interactive Data File. </span></td></tr>
<tr style="vertical-align: top">
<td colspan="2" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: center"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="white-space: nowrap; padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">*</span></td>
<td colspan="3" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Filed herewith.</span></td></tr>
<tr style="vertical-align: top">
<td style="white-space: nowrap; padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">**</span></td>
<td colspan="3" style="padding-top: 0.25pt; padding-right: 0.25pt; padding-left: 0.25pt; text-align: justify"><span style="font: 10pt Times New Roman, Times, Serif">Furnished herewith.</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"></span></p>

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    <div style="break-before: page; margin-top: 6pt; margin-bottom: 6pt"><p style="margin: 0pt">&#160;</p></div>
    <!-- Field: /Page -->

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><b>&#160;</b></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt"><b><span id="a_018"></span>PART
III &#8211; SIGNATURES</b></span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: center"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">In
accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.</span></p>

<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>

<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td colspan="2" style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif"><b>AVALON ACQUISITION INC.</b></span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; width: 43%; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 1%; padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="width: 6%; padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; width: 50%; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Date: May 12, 2022</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">By:</span></td>
<td style="border-bottom: black 1pt solid; padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">/s/ S. Craig Cognetti</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">Name:</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">S. Craig Cognetti</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">Title:</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Chief Executive Officer</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">(Principal Executive Officer) </span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-align: justify; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Date: May 12, 2022</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">By:</span></td>
<td style="border-bottom: black 1pt solid; padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">/s/ R. Rachel Hsu</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">Name:</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">R. Rachel Hsu</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">Title:</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">Chief Financial Officer</span></td></tr>
<tr style="vertical-align: top">
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding-top: 0.25pt"><span style="font: 10pt Times New Roman, Times, Serif">&#160;</span></td>
<td style="padding: 0pt; text-indent: 0pt"><span style="font: 10pt Times New Roman, Times, Serif">(Principal Accounting Officer and Financial Officer)</span></td></tr>
</table>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">&#160;</p>

<p style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; text-align: center">27<span style="font-family: Times New Roman, Times, Serif; font-size: 10pt">&#160;</span></p>



<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: right"><b></b></p>

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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-Q
(MARK
ONE)
☒
QUARTERLY
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the quarter ended
March 31, 2022
☐
TRANSITION
    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the transition period from to
Commission
file number:
001-40872
AVALON ACQUISITION INC.
(Exact name of registrant as specified in its charter)
Delaware
85-3451075
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
2 Embarcadero Center
,
8th Floor
San Francisco
,
CA
94111
(Address
of principal executive offices)
(415)
423-0010
(Registrant's
telephone number, including area code)
Not
applicable.
(Former
name, former address and former fiscal year, if changed since last report)
Securities
registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Units, each consisting of one share of Class A common stock, par value $0.0001 per share and three-fourths of one redeemable warrant
AVACU
The
Nasdaq
Stock Market LLC
Class A Common Stock, par value $0.0001 per share
AVAC
The
Nasdaq
Stock Market LLC
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per whole share
AVACW
The
Nasdaq
Stock Market LLC
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during
the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
Yes
☒ No ☐
Indicate
by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files).
Yes
☒ No ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller
reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
Emerging growth company
☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
☒ No ☐
As
of May 12, 2022, there were
20,855,250
shares of Class A common stock, par value $0.0001 per share, and
5,175,000
shares of Class B
common stock, par value $0.0001 per share, issued and outstanding.
AVALON
ACQUISITION IN INC.
FORM
10-Q FOR THE QUARTER ENDED MARCH 31, 2022
TABLE
OF CONTENTS
Page
Part I. Financial Information
1
Item 1. Condensed Financial
Statements
Condensed Balance Sheets as of March 31, 2022 (unaudited) and December 31, 2021
1
Unaudited
Condensed Statements of Operations for the Three Months Ended March 31, 2022 and March 31, 2021
2
Unaudited
Condensed Statements of Changes in Stockholders' Equity/(Deficit) for the Three Months Ended March 31, 2022 and
March 31, 2021
3
Unaudited
Condensed Statements of Cash Flows for the Three Months Ended March 31, 2022 and March 31, 2021
4
Notes to
Condensed Financial Statements (Unaudited)
5
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
20
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
24
Item 4. Controls and Procedures
24
Part II. Other Information
25
Item 1. Legal Proceedings
25
Item 1A. Risk Factors
25
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
26
Item 3. Defaults Upon Senior Securities
26
Item 4. Mine Safety Disclosures
26
Item 5. Other Information
26
Item 6. Exhibits
26
Part III. Signatures
27
PART
I - FINANCIAL INFORMATION
Item
1. Condensed Financial Statements.
AVALON
ACQUISITION INC.
CONDENSED
BALANCE SHEETS
March 31, 2022 (unaudited)
December 31, 2021
ASSETS
Current assets:
Cash
$
730,120
$
1,036,693
Prepaid expenses
570,195
522,874
Total current assets
1,300,315
1,559,567
Investments held in trust account
210,130,244
210,109,087
Total Assets
$
211,430,559
$
211,668,654
Liabilities, Class A Common Stock Subject to Possible
Redemption and Stockholders' Deficit
Current Liabilities:
Accounts payable
$
100,391
$
136,502
Franchise tax payable
50,000
123,338
Total current liabilities
150,391
259,840
Other liabilities:
Derivative warrant liabilities
5,433,750
9,213,750
Deferred underwriting compensation
7,245,000
7,245,000
Total liabilities
12,829,141
16,718,590
Commitments and contingencies
Class A common stock, par value $
0.0001
per share,
100,000,000
shares authorized;
20,700,000
shares subject to possible redemption at $
10.15
per share
210,105,000
210,105,000
Stockholders' (Deficit)
Preferred stock, $
0.0001
par value;
1,000,000
shares authorized;
none
issued and outstanding
—
—
Class A common stock, $
0.0001
par value;
100,000,000
shares authorized;
155,250
non-redeemable shares issued and outstanding (excluding 20,700,000 common shares subject to possible redemption)
15
15
Class B common stock, $
0.0001
par value;
10,000,000
shares authorized;
5,175,000
shares issued and outstanding
518
518
Additional paid-in capital
—
—
Accumulated deficit
(
11,504,115
)
(
15,155,469
)
Total stockholders' deficit
(
11,503,582
)
(
15,154,936
)
Total liabilities and stockholders' deficit
$
211,430,559
$
211,668,654
The
accompanying notes are an integral part of these condensed financial statements.
1
AVALON
ACQUISITION INC.
UNAUDITED
CONDENSED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2022
For the Three Months Ended March 31,
2021
General and administrative expenses
$
69,753
$
450
General and administrative expenses – related party
30,000
—
Franchise tax expense
50,050
—
Total operating expenses
(
149,803
)
(
450
)
Income earned on investments held in Trust Account
21,157
—
Change in fair value of derivative warrant liabilities
3,780,000
—
Net Income/(Loss)
$
3,651,354
$
(
450
)
Weighted average common shares outstanding, basic and diluted
Class A
20,855,250
—
Class B
5,175,000
4,500,000
Basic and diluted net income/(loss) per common share
Class A
$
0.14
—
Class B
$
0.14
$
(
0.00
)
The
accompanying notes are an integral part of these condensed financial statements.
2
AVALON
ACQUISITION INC.
UNAUDITED
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY/(DEFICIT)
For the Three Months Ended March 31, 2022
Common Stock
Class A
Class B
Additional Paid-in
Accumulated
Total Stockholders'
Shares
Amount
Shares
Amount
Capital
Deficit
Deficit
Balance at December 31, 2021
155,250
$
15
5,175,000
$
518
$
—
$
(
15,155,469
)
$
(
15,154,936
)
Net income
—
—
—
—
—
3,651,354
3,651,354
Balance at March 31, 2022 (unaudited)
155,250
$
15
5,175,000
$
518
$
—
$
(
11,504,115
)
$
(
11,503,582
)
For the Three Months Ended March 31, 2021
Common Stock
Class A
Class B
Additional Paid-in
Accumulated
Total Stockholders'
Shares
Amount
Shares
Amount
Capital
Deficit
Equity
Balance at December 31, 2020
—
$
—
5,175,000
$
518
$
24,482
$
(
1,497
)
$
23,503
Net loss
—
—
—
—
—
(
450
)
(
450
)
Balance at March 31, 2021 (unaudited)
—
$
—
5,175,000
$
518
$
24,482
$
(
1,947
)
$
23,053
The
accompanying notes are an integral part of these condensed financial statements.
3
AVALON
ACQUISTION INC.
UNAUDITED
CONDENSED
STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2022
For the Three Months Ended March 31, 2021
Cash flows from operating activities:
Net income/(loss)
$
3,651,354
$
(
450
)
Adjustments to reconcile net income/(loss) to net cash used in
operating activities:
Income earned on investments held in Trust Account
(
21,157
)
—
Change in fair value of derivative warrant liabilities
(
3,780,000
)
—
Changes in operating assets and liabilities:
Prepaid expenses
(
47,321
)
—
Accounts payable
(
36,111
)
(
1,497
)
Franchise tax payable
(
73,338
)
—
Net cash used in operating activities
(
306,573
)
(
1,947
)
Cash flows from Financing Activities
Payment of offering costs
—
(
156,794
)
Proceeds from note payable to related party
—
150,000
Net cash used in financing
activities
—
(
6,794
)
Net Change in Cash
(
306,573
)
(
8,741
)
Cash—Beginning
1,036,693
12,500
Cash—Ending
$
730,120
$
3,759
Supplemental Disclosures of Non-Cash investing and financing activities:
Deferred offering costs included in accrued offering costs
$
—
$
173,232
The
accompanying notes are an integral part of these condensed financial statements.
4
AVALON
ACQUISTION INC.
NOTES
TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
NOTE
1 —
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Avalon
Acquisition Inc. (the "Company") was incorporated in Delaware on October 12, 2020. The Company was 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 (the "Business Combination"). The Company has initiated discussions with potential business combination
targets, though it has not selected any business combination target.
Although
the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company
intends to focus on businesses that are in the financial services and financial technologies industries. The Company is an early stage
and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth
companies.
As
of March 31, 2022, the Company had not commenced any operations. All activity for the period from October 12, 2020 (inception) through
March 31, 2022 relates to the Company's formation, the initial public offering ("Initial Public Offering"), which is
described below, and identifying a target company for a Business Combination. The Company will not generate any operating revenues until
after the completion of its initial Business Combination, at the earliest. The Company currently generates non-operating income
in the form of income from the proceeds derived from the Initial Public Offering.
The
registration statement for the Company's Initial Public Offering was declared effective on October 5, 2021. On October 8, 2021,
the Company consummated the Initial Public Offering of
20,700,000
units (the "Units" and, with respect to the shares of Class
A common stock included in the Units sold, the "Public Shares"), which includes the full exercise by the underwriter of the
over-allotment option to purchase an additional
2,700,000
Units, at $
10.00
per Unit, generating gross proceeds of $
207,000,000
, which
is described in Note 3.
Simultaneously
with the closing of the Initial Public Offering, the Company consummated the sale of
8,100,000
warrants (each, a "Private Placement
Warrant" and, collectively, the "Private Placement Warrants") at a price of $
1.00
per Private Placement Warrant in
a private placement to Avalon Acquisition Holdings, LLC (the "Sponsor"), generating gross proceeds of $
8,100,000
, which is
described in Note 4.
Following
the closing of the Initial Public Offering on October 8, 2021, an amount of $
210,105,000
($10.15 per Unit) from the net proceeds of the
sale of the units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the "Trust
Account") located in the United States and invested only in an open-ended investment company that holds itself out as a money market
fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until
the earlier of: (i) the completion of a Business Combination or (ii) the distribution of the funds in the Trust Account, as
described below.
The
Company's management has broad discretion with respect to the specific application of the net proceeds of the Initial Public
Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied
generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business
Combination successfully. The Company's initial Business Combination must be with one or more target businesses that together
have a fair market value equal to at least 80% of the balance in the Trust Account (as defined below) (excluding taxes payable on
interest income earned from the Trust Account and the deferred underwriting commissions) at the time of the agreement to enter into
the initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or
acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target
sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended
(the "Investment Company Act"). There is no assurance that the Company will be able to complete a Business Combination
successfully.
5
The
Company will provide its holders of the outstanding Public Shares (the "Public Stockholders") with the opportunity to redeem
all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder
meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will
seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion.
The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account
(initially anticipated to be $10.15 per Public Share, plus any pro rata interest earned on the funds held in the Trust Account and not
previously released to the Company to pay its tax obligations). The per-share amount to be distributed to Public Stockholders who redeem
their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriter (as discussed
in Note 5). There will be no redemption rights upon the completion of a Business Combination with respect to the Company's
warrants. The Public Shares subject to redemption are recorded at redemption value and classified as temporary equity in accordance with
the Accounting Standards Codification ("ASC") Topic 480 "Distinguishing Liabilities from Equity."
The
Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation
of a Business Combination and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business
Combination. If a stockholder vote is not required by law or stock exchange requirements and the Company does not decide to hold a stockholder
vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the "Amended
and Restated Certificate of Incorporation"), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities
and Exchange Commission ("SEC") and file tender offer documents with the SEC prior to completing a Business Combination.
If, however, stockholder approval of the transaction is required by law, or the Company decides to obtain stockholder approval for business
or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not
pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Company's
Sponsor has agreed to vote their Founder Shares (as defined in Note 4) and any Public Shares purchased during or after the Initial
Public Offering in favor of approving a Business Combination. Additionally, each public stockholder may elect to redeem their Public
Shares irrespective of whether they vote for or against the proposed transaction.
Notwithstanding
the above, if the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender
offer rules, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of
such stockholder or any other person with whom such stockholder is acting in concert or as a "group" (as defined under Section 13
of the Securities Exchange Act of 1934, as amended (the "Exchange Act")), will be restricted from redeeming its shares with
respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company.
The
Company's Sponsor has agreed (i) to waive its redemption rights with respect to its Founder Shares and Public Shares held
by it in connection with the completion of a Business Combination and (ii) not to propose an amendment to the Company's Amended
and Restated Certificate of Incorporation that would affect the substance or timing of the Company's obligation to redeem 100%
of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public stockholders with
the opportunity to redeem their shares in conjunction with any such amendment.
The
Company will have until January 8, 2023 to consummate a Business Combination or until July 8, 2023 if the Company extends the period
of time to consummate an initial Business Combination by the full amount of time (the "Combination Period"). If the Company
is unable to complete a Business Combination within the Combination Period, the Company will (i) cease all operations except for
the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public
Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest
earned on the funds held in the Trust Account and not previously released to the Company to pay taxes (less up to $100,000 to pay dissolution
expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders'
rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as
promptly as reasonably possible following such redemption, subject to the approval of the Company's remaining stockholders and
the Company's board of directors, dissolve and liquidate, subject in each case to the Company's obligations under Delaware
law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating
distributions with respect to the Company's warrants, which will expire worthless if the Company fails to complete a Business Combination
within the Combination Period.
6
The
Sponsor has agreed to waive its right to liquidating distributions from the Trust Account with respect to the Founder Shares if the Company
fails to complete a Business Combination within the Combination Period. However, if the Sponsor acquires Public Shares in or after the
Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails
to complete a Business Combination within the Combination Period. The underwriter has agreed to waive their rights to their deferred
underwriting commission (see Note 6) held in the Trust Account in the event the Company does not complete a Business Combination
within the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will
be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value
of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00).
In
order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims
by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed
entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (i) $10.15 per Public Share or (ii) such
lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in
the value of the trust assets, in each case net of the interest which may be withdrawn to pay taxes, except as to any claims by a third
party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company's
indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act
of 1933, as amended (the "Securities Act"). Moreover, in the event that an executed waiver is deemed to be unenforceable
against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will
seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to
have all vendors, service providers (other than our independent registered public accounting firm), prospective target businesses or
other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim
of any kind in or to monies held in the Trust Account.
Liquidity
and Going Concern
As
of March 31, 2022, the Company had $
730,120
in its operating bank account, $
210,130,244
in securities held in the Trust Account to be
used for a Business Combination or to repurchase or redeem its common stock in connection therewith, and working capital of approximately
$
1,200,000
which excludes franchise and income taxes payable as such amounts can be paid from income earned in the Trust Account.
Until
the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating
prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting
the target business to acquire, and structuring, negotiating and consummating the Business Combination.
Prior
to the consummation of its Initial Public Offering, the Company's liquidity needs were satisfied through the payment of $
25,000
from
the Sponsor to cover certain expenses on behalf of the Company in consideration of Founder Shares (as defined in Note 4), and a loan
from the Sponsor of $
197,000
under the Note (as defined in Note 4) which was repaid in full on October 15, 2021. Following
the consummation of the Initial Public Offering, the Company's liquidity has been satisfied through the net proceeds of $
1.82
million
from the consummation of the Initial Public Offering (including the Over-Allotment) and the Private Placement held outside of the Trust
Account. In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of
the Sponsor, or certain of the Company's officers and directors may, but are not obligated to, provide the Company Working Capital
Loans (as defined in Note 4). As of March 31, 2022 and December 31, 2021, there were no amounts outstanding under any Working Capital
Loans.
In
connection with the Company's assessment of going concern considerations in accordance with Financial Accounting Standards Board
("FASB") Accounting Standards Update ("ASU") 2014-15, "Disclosures of Uncertainties about an
Entity's Ability to Continue as a Going Concern," management has determined that the mandatory liquidation and subsequent
dissolution raises substantial doubt about the Company's ability to continue as a going concern. No adjustments have been made
to the carrying amounts of assets or liabilities should the Company be required to liquidate after January 8, 2023. The condensed financial
statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern. Management
plans to complete a business combination prior to the mandatory liquidation.
Based
on the foregoing, management believes that the Company will have sufficient working capital and borrowing capacity to meet its needs
through one year from this filing. Over this time period, the Company will be using the funds held outside of the Trust Account for paying
existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on
prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring,
negotiating and consummating the Business Combination.
NOTE
2 —
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of Presentation
The
unaudited condensed financial statements of the Company are presented in conformity with accounting principles generally accepted in
the United States of America ("GAAP") and pursuant to the rules and regulations of the SEC. Accordingly, they do not include
all of the information and footnotes required by GAAP. In the opinion of management, all adjustments (consisting of normal accruals)
considered for a fair presentation have been included.
7
The
accompanying unaudited condensed financial statements should be read in conjunction with the audited financial statements and notes thereto
included in the annual report on Form 10-K filed by the Company with the SEC on March 30, 2022. The interim results for the three months
ended March 31, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future
periods.
Emerging
Growth Company
The
Company is an "emerging growth company," as defined in Section 2(a) of the Securities Act, as modified by the JOBS Act,
and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that
are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public
accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive
compensation in its periodic reports and proxy statements, not being required to comply with any requirement that may be adopted by the
Public Company Accounting Oversight Board regarding mandatory audit firm rotation or to provide a supplement to the auditor's report
providing additional information about the audit and the financial statements and exemptions from the requirements of holding a nonbinding
advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.
Further,
Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial
accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective
or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting
standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements
that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of
such extended transition period which means that when a standard is issued or revised and it has different application dates for public
or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies
adopt the new or revised standard. This may make comparison of the Company's financial statements with another public company which
is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult
or impossible because of the potential differences in accounting standards used.
Cash
and Cash Equivalents
The
Company considers all short-term investments with an original maturity of three months or less when purchased to be cash
equivalents. There were
no
cash equivalents at March 31, 2022 and December 31, 2021.
Deferred
Offering Costs Associated with the Initial Public Offering
The
Company complies with the requirements of FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (SAB) Topic 5A – "Expenses
of Offering." Costs incurred in connection with preparation for the Public Offering ($
695,809
) together with $
10,953,007
of underwriters'
discount, were allocated to equity instruments ($
11,168,880
) and derivative warrant liabilities ($
479,936
), based on their relative values,
and charged to temporary equity or expensed (in the case of the portion allocated to derivative warrant liabilities) upon completion
of the Initial Public Offering.
Income
Taxes
The Company follows the asset
and liability method of accounting for income taxes under FASB ASC Topic 740, "Income Taxes." Deferred tax assets and
liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement's
carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using
enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or
settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included
the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
As of March 31, 2022 and December 2021, the Company had deferred tax assets which had a full valuation allowance recorded against them.
Deferred tax assets were deemed to be de minimis as of March 31, 2022 and December 31, 2021.
The Company's current
taxable income primarily consists of income earned on the Trust Account. The Company's general and administrative costs are
generally considered start-up costs and are not currently deductible. During the three months ended March 31, 2022, the Company
recorded no income tax expense. The Company's effective tax rate for three months ended March 31, 2022 was approximately
21
%,
which differs from the expected income tax rate due to the start-up costs (discussed above), the change in value of warrant
liabilities, and the transaction costs allocated to the warrant liabilities which are not currently deductible.
8
FASB
ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement
of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely
than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized
tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of March
31, 2022 and December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments,
accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since
inception.
Net
Income/(Loss) per Common Share
The
Company complies with accounting and disclosure requirements of FASB ASC Topic 260, "Earnings Per Share." The Company
has two classes of shares, which are referred to as Class A common stock and Class B common stock. Income and losses are
shared pro rata between the two classes of shares. This presentation assumes a business combination as the most likely outcome. Net
income/(loss) per common stock is calculated by dividing the net income/(loss) by the weighted average shares of common stock
outstanding for the respective period.
The
calculation of diluted net income/(loss) per common stock does not consider the effect of the warrants issued in connection with the
IPO (including exercise of the over-allotment option) and the Private Placement to purchase an aggregate
of 23,625,000 shares of Class A common stock in the calculation of diluted income/(loss) per share, because their
exercise is contingent upon future events and their inclusion would be anti-dilutive under the treasury stock method. As a result,
diluted net income/(loss) per share is the same as basic net income/(loss) per share for the three months ended March 31, 2022 and
2021. Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the
redemption value approximates fair value.
The
following table reflects presents a reconciliation of the numerator and denominator used to compute basic and diluted net income/(loss)
per share for each class of common stock:
For the Three Months Ended
March 31, 2022
March 31, 2021
Class A
Class B
Class A
Class B
Basic and diluted net income/(loss) per common share:
Numerator
Allocation of net income/(loss)
$
2,925,439
$
725,915
$
—
$
(
450
)
Denominator:
Basic and diluted weighted average common stock outstanding
20,855,250
5,175,000
—
5,000,000
Basic and diluted net income/(loss) per common share
$
0.14
$
0.14
$
—
$
(
0.00
)
Redeemable
Common Stock
As
discussed in Note 1, all of the
20,700,000
Public Shares sold as part of Units in the Initial Public Offering contain a redemption feature which allows for the redemption of
the Public Shares if the Company holds a stockholder vote or there is a tender offer for shares in connection with a Business
Combination. In accordance with FASB ASC 480, redemption provisions not solely within the control of the Company require the
security to be classified outside of permanent equity. Ordinary liquidation events, which involve the redemption and liquidation of
all of the entity's equity instruments, are excluded from the provisions of FASB ASC 480. Although the Company did not specify
a maximum redemption threshold, its charter provides that in no event will it redeem its Public Shares in an amount that would cause
its net tangible assets (i.e., total assets less intangible assets and liabilities) to be less than $
5,000,001
upon the closing of a Business Combination.
While
redemptions cannot cause the Company's net tangible assets to fall below $5,000,000, all shares of Class A common stock sold in
the Initial Public Offering are redeemable and will be classified as classified as temporary equity on the Company's balance sheet
until such time as a redemption event takes place. The value of Class A common stock that may be redeemed will be equal to $10.15 per
share (which is the assumed redemption price) multiplied by 20,700,000 shares of Class A common stock.
Derivative
Warrant Liabilities
The
Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant's
specific terms and in accordance with FASB ASC 480, Distinguishing Liabilities from Equity ("ASC 480") and ASC 815, Derivatives
and Hedging ("ASC 815"). The assessment considers whether the warrants are freestanding financial instruments pursuant to
ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification
under ASC 815, including whether the warrants are indexed to the Company's own shares, among other conditions for equity classification.
This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent
quarterly period end date while the warrants are outstanding.
For
issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component
of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification,
the warrants are required to be recorded at their initial fair value of the date of issuance, and each balance sheet date thereafter.
Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. Costs
associated with issuing the warrants classified as derivative liabilities are charged to operations when the warrants are issued.
9
Concentration
of Credit Risk
Financial
instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution,
which, at times, may exceed the Federal Deposit Insurance Corporation coverage of $
250,000
. The Company has not experienced losses
on this account, and management believes the Company is not exposed to significant risks on such account.
Fair
Value of Financial Instruments
The
fair value of the Company's assets and liabilities, which qualify as financial instruments under ASC Topic 820, "Fair
Value Measurement," approximates the carrying amounts represented in the balance sheet, primarily due to their short-term
nature, except for the derivative warrant liabilities (see Note 9).
Use
of Estimates
The
preparation of financial statements in conformity with GAAP requires the Company's management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of expenses during the reporting period.
Making
estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of
a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating
its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ
significantly from those estimates.
Recent
Accounting Pronouncements
In August 2020, the Financial
Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06, "Debt — Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity's Own Equity (Subtopic
815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" ("ASU 2020-06") to simplify
accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion
and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity
classification of contracts in an entity's own equity. The new standard also introduces additional disclosures for convertible
debt and freestanding instruments that are indexed to and settled in an entity's own equity. ASU 2020-06 amends the diluted earnings
per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective
for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years, with early adoption permitted.
The Company is currently evaluating the impact the pronouncement will have on the condensed financial statements.
Management
does not believe that any other recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a
material effect on the Company's financial statements.
COVID-19
Management
continues to evaluate the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible
that the virus could have a negative effect on the Company's financial position, results of its operations, and/or search for
a target company, the specific impact is not readily determinable as of the date of the condensed financial statements. The condensed
financial statements do not include any adjustments that might result from the outcome of this uncertainty.
10
NOTE
3 —
INITIAL PUBLIC OFFERING
On
October 8, 2021, the Company consummated the Public Offering of
20,700,000
Units, which includes the full exercise by the underwriter
of its option to purchase an additional
2,700,000
Units, at a price of $
10.00
per unit (the "Units"). Each Unit consists
of one share of the Company's Class A common stock, $
0.0001
par value and three-fourths of one redeemable warrant ("Public
Warrant"). Each whole Warrant offered in the Initial Public Offering is exercisable to purchase one share of Class A common
stock at $
11.50
per share, subject to adjustment (see Note 7).
Simultaneously
with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of
8,100,000
Private Placement Warrants for an aggregate
purchase price of $
8,100,000
. Each Private Placement Warrant is exercisable to purchase one share of Class A common stock at a price
of $
11.50
per share.
NOTE
4 —
RELATED PARTY TRANSACTIONS
Founder
Shares
On
October 21, 2020, the Sponsor paid an aggregate of $
25,000
,
or approximately $0.004 per share, to cover certain of our offering costs in consideration of
5,750,000
shares of our Class B common stock, par
value $
0.0001
.
On August 30, 2021, the Sponsor forfeited
1,437,500
of these shares, for no consideration, such that
there were
4,312,500
shares of Class B common stock outstanding. On
October 5, 2021, the Company effected a stock dividend of 0.2 of a founder share for each outstanding founder share, which resulted in
the Sponsor holding an aggregate of
5,175,000
Founder Shares. The Founder Shares included an
aggregate of up to
675,000
shares subject to forfeiture to the extent that
the underwriter's over-allotment option was not exercised in full or in part, so that the Sponsor would own, on an as-converted
basis, 20% of the Company's issued and outstanding shares after the Initial Public Offering. As a result of the underwriter's
election to exercise fully its over-allotment option,
675,000
Founder Shares were no longer subject to forfeiture.
All share and per-share amounts have been retroactively restated to reflect the stock dividend. On October 5, 2021, the Sponsor transferred
150,000
Founder Shares to its independent directors.
The
Sponsor has agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur
of: (A) one year after the completion of a Business Combination or (B) subsequent to a Business Combination, (x) if the
last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends,
reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days
after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange or other
similar transaction that results in all of the Company's stockholders having the right to exchange their shares of common stock
for cash, securities or other property.
Promissory
Note—Related Party
On
October 31, 2020, the Sponsor agreed to loan the Company an aggregate of up to $
250,000
to cover expenses related to the Initial Public
Offering pursuant to a promissory note (the "Promissory Note"). The Promissory Note was non-interest bearing and payable,
as amended, on the earlier of December 31, 2021 or the completion of the Initial Public Offering. On October 15, 2021, the Company repaid
the balance in full to the Sponsor. Because the balance of the Promissory Note has been repaid, it is no longer available to the Company.
Administrative
Support Agreement
Commencing
on the effective date of the Initial Public Offering, on October 5, 2021, the Company agreed to pay the Sponsor a total of $
10,000
per month for office space, and administrative support services. Upon completion of an initial Business Combination or the
Company's liquidation, the Company will cease paying these monthly fees. For the three months ended March 31, 2022, the
Company incurred $
30,000
of these fees which are included in general and administrative expenses – related party on the condensed statements of
operations. Additionally, the Company prepaid $
90,000
of these fees which are included in prepaid expenses on the accompanying condensed balance sheet as of March 31, 2022.
11
Related
Party Loans
In
order to finance transaction costs in connection with a Business Combination, the Sponsor, or the Company's officers and directors
may, but are not obligated to, loan the Company funds as may be required ("Working Capital Loans"). If the Company completes
a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company.
In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to
repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for
the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect
to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at
the lender's discretion, up to $
1,500,000
of such Working Capital Loans may be convertible into warrants at a price of $
1.00
per
warrant at the option of the lender. The warrants would be identical to the Private Placement Warrants. As of March 31, 2022 and December
31, 2021, there was no working capital loan outstanding.
NOTE
5 —
COMMITMENTS AND CONTINGENCIES
Registration
Rights
The
holders of the Founder Shares, Private Placement Warrants, warrants and representative shares that may be issued upon conversion of Working
Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants
that may be issued upon conversion of Working Capital Loans) are entitled to registration rights pursuant to a registration rights agreement
signed on the effective date of Initial Public Offering. The holders of these securities will be entitled to make up to three demands,
excluding short form demands, that the Company register such securities. In addition, the holders have certain "piggy-back"
registration rights with respect to registration statements filed subsequent to the completion of a Business Combination. However, the
registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to
become effective until termination of the applicable lockup period. The Company will bear the expenses incurred in connection with the
filing of any such registration statements.
Underwriting
Agreement
The
Company granted the underwriter a 45-day option from the date of Initial Public Offering to purchase up to
2,700,000
additional Units
to cover over-allotments, if any, at the Initial Public Offering price less the underwriting discounts and commissions. At October 8,
2021, the underwriter exercised such option in full.
The underwriter was entitled
to an underwriting discount of $0.125 per Unit, or $2,156,250 in the aggregate of the gross proceeds of the Initial Public Offering. In
addition, the underwriter is entitled to a deferred fee of $0.35 per Unit, or $6,037,500 in the aggregate; provided that up to 0.875%
of the gross proceeds or $1,509,375 in the aggregate may be paid to third parties not participating in the offering (but who are members
of the Financial Industry Regulatory Authority ("FINRA") or regulated broker-dealers) that assist the underwriter in consummating
the initial Business Combination. The deferred fee will be waived by the underwriter in the event that the Company does not complete a
Business Combination, subject to the terms of the underwriting agreement.
12
In
addition, the Company issued to the underwriter
155,250
non-redeemable shares of Class A common stock upon closing of the Initial Public
Offering, at a price of $
0.0001
(the "Representative Shares"). These shares were fair valued at $
1,120,507
at the
Initial Public Offering using Black-Scholes option pricing model utilizing Level 3 inputs. The holder of the Representative
Shares has agreed not to transfer, assign or sell any such shares without the Company's prior consent until the completion of the
Company's initial Business Combination. In addition, the holder of the Representative Shares has agreed (i) to waive its conversion
rights (or right to participate in any tender offer) with respect to such shares in connection with the completion of the Company's
initial Business Combination and (ii) to waive its rights to liquidating distributions from the Trust account with respect to such shares
if the Company fails to complete its initial Business Combination within the required time period. The Representative Shares have been
deemed compensation by FINRA and are therefore subject to a lock-up for a period of 180 days immediately following the date of the effectiveness
of the registration statement.
NOTE
6 –
WARRANTS LIABILITIES
As
of March 31, 2022 and December 31, 2021, there were
15,525,000
Public Warrants and
8,100,000
Private Warrants outstanding. The Company
accounts for the Public and Private Placement Warrants in accordance with the guidance contained in ASC 815-40. Such guidance provides
that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be recorded as a liability. Accordingly,
the Company classifies each warrant as a liability at its fair value and charges the costs associated with issuing such warrants to operations.
The accounting treatment of derivative financial instruments requires that the Company records a derivative liability upon the closing
of the Initial Public Offering. Accordingly, the Company has classified the warrants as a liability at their fair value and allocated
a portion of the proceeds from the issuance of the Units to the warrants. This liability is re-measured at each balance sheet date. With
each such re-measurement, the warrant liability is adjusted to fair value, with the change in fair value recognized in the Company's
statement of operations. The Company reassesses the classification at each balance sheet date. If the classification changes as a result
of events during the period, the warrants will be reclassified as of the date of the event that causes the reclassification.
NOTE
7 –
CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION
The
Company's Class A common stock feature certain redemption rights that are considered to be outside of the Company's control
and subject to the occurrence of future events. The Company is authorized to issue
100,000,000
shares of Class A common stock with a
par value of $
0.0001
per share. Holders of the Company's Class A common stock are entitled to one vote for each share. As of March
31, 2022 and December 31, 2021, there were
20,855,250
shares of Class A common stock outstanding, of which
20,700,000
shares are subject
to possible redemption and are classified outside of permanent equity in the condensed balance sheets.
The
Class A common stock subject to possible redemption reflected on the condensed balance sheets is reconciled on the following table:
Gross proceeds from Initial Public Offering
$
207,000,000
Less:
Fair value of Public Warrants at issuance
(
9,159,750
)
Offering costs allocated to Class A common stock subject to possible redemption
(
11,168,880
)
Plus:
Accretion on Class A common stock subject to possible redemption amount
23,433,630
Class A common stock subject to possible redemption
$
210,105,000
13
NOTE
8 —
STOCKHOLDERS' DEFICIT
Preferred
Stock
— The Company was authorized to issue
1,000,000
shares of preferred stock with a par value of $
0.0001
per share with
such designations, voting and other rights and preferences as may be determined from time to time by the Company's board of directors.
At March 31, 2022 and December 31, 2021, there were
no
shares of preferred stock issued or outstanding.
Class A
Common Stock
— The Company was authorized to issue
100,000,000
shares of Class A common stock with a par value of
$
0.0001
per share. Holders of Class A common stock are entitled to one vote for each share. At March 31, 2022 and December 31, 2021,
there were
20,855,250
shares of Class A common stock issued and outstanding, of which
20,700,000
shares are subject to redemption.
Class B
Common Stock
— The Company was authorized to issue
10,000,000
shares of Class B common stock with a par value of $
0.0001
per share. Holders of Class B common stock are entitled to one vote for each share. At March 31, 2022 and December 31, 2021, there
were
5,175,000
shares of Class B common stock issued and outstanding.
Holders
of Class B common stock will have the right to elect all of the Company's directors prior to a Business Combination. Holders
of Class A common stock and Class B common stock will vote together as a single class on all other matters submitted to a vote
of stockholders except as required by law.
The
shares of Class B common stock will automatically convert into shares of Class A common stock on the first business day following
the completion of a Business Combination at a ratio such that the number of shares of Class A common stock issuable upon conversion
of all Founder shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of (i) the total number of shares of
the Company's common stock issued and outstanding upon completion of Initial Public Offering, plus (ii) the sum of (a) all
shares of the Company's common stock issued or deemed issued or issuable upon conversion or exercise of any equity-linked securities
or deemed issued by the Company in connection with or in relation to the completion of a Business Combination, excluding (1) any
shares of Class A common stock or equity-linked securities exercisable for or convertible into shares of Class A common stock
issued, or to be issued, to any seller in a Business Combination and any (2) Private Placement Warrants issued to the Sponsor or
any of its affiliates upon conversion of Working Capital Loans minus (b) the number of Public Shares redeemed by public stockholders
in connection with a Business Combination.
14
Warrants
—
Public Warrants may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the
Units and only whole warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after
the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering. The Public
Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. As of
March 31, 2022 and December 31, 2021,
15,525,000
Public Warrants and
8,100,000
Private Warrants were outstanding.
The
Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have
no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of
Class A common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company
satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable
and the Company will not be obligated to issue shares of Class A common stock upon exercise of a warrant unless the share of Class A
common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the
state of residence of the registered holder of the warrants.
The
Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of a Business Combination,
the Company will use its commercially reasonable efforts to file with the SEC a registration statement for the registration, under the
Securities Act, of the shares of Class A common stock issuable upon exercise of the warrants. The Company will use its commercially
reasonable efforts to cause the same to become effective within 60 business days following the closing of our initial business combination
and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration or
redemption of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the issuance
of the shares of Class A common stock issuable upon exercise of the warrants is not effective by the 60th business day after the
closing of a Business Combination, warrant holders may, until such time as there is an effective registration statement and during any
period when the company will have failed to maintain an effective registration statement, exercise warrants on a "cashless basis"
in accordance with Section 3(a)(9) of the Securities Act or another exemption. In addition, if the Class A common stock are
at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a "covered
security" under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of the Public Warrants
who exercise their warrants to do so on a "cashless basis" in accordance with Section 3(a)(9) of the Securities Act
and, in the event the Company elects to do so, the Company will not be required to file or maintain in effect a registration statement,
but it will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.
Redemption
of warrants when the price per share of Class A common stock equals or exceeds $18.00.
Once the Public Warrants become exercisable,
the Company may redeem the Public Warrants (except with respect to the Private Placement Warrants):
●
in whole and not in part;
●
at a price of $0.01 per warrant;
●
upon not less than 30 days prior written notice of redemption to each warrant holder; and
●
if, and only if, the reported last sale price of the shares of the Company's Class A common stock for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders (the "Reference Value") equals or exceeds $18.00 per share (as adjusted).
If
and when the warrants become redeemable by the Company, the company may exercise its redemption right even if it is unable to register
or qualify the underlying securities for sale under all applicable state securities laws.
15
Redemption
of warrants when the price per share of Class A common stock equals or exceeds $10.00.
Once the Public Warrants become
exercisable, the Company may redeem the Public Warrants:
●
in whole and not in part;
●
at $0.10 per warrant upon a minimum of 30 days prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class A common stock;
●
if, and only if, the Reference Value equals or exceeds $10.00 per share (as adjusted); and
●
if the Reference Value is less than $18.00 per share (as adjusted), the Private Placement Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above.
If
and when the Public Warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to
register or qualify the underlying securities for sale under all applicable state securities laws.
If
the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the
Public Warrants to do so on a "cashless basis," as described in the warrant agreement. The exercise price and number of shares
of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of
a stock dividend, or recapitalization, reorganization, merger or consolidation. However, except as described below, the warrants will
not be adjusted for issuances of Class A common stock at a price below its exercise price. Additionally, in no event will the Company
be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period
and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to
their warrants, nor will they receive any distribution from the Company's assets held outside of the Trust Account with the respect
to such warrants. Accordingly, the warrants may expire worthless.
In
addition, if (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising
purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per Class A
common (with such issue price or effective issue price to be determined in good faith by the Company's board of directors and,
in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor
or such affiliates, as applicable, prior to such issuance) (the "Newly Issued Price"), (y) the aggregate gross proceeds
from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business
Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average
trading price of the Company's Class A common stock during the 20 trading day period starting on the trading day prior to
the day on which the Company consummates a Business Combination (such price, the "Market Value") is below $9.20 per share,
the exercise price of the Public Warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value
and the Newly Issued Price, the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be
equal to 180% of the higher of the Market Value and the Newly Issued Price, and the $10.00 per share redemption trigger price described
above will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price.
16
The
Private Placement Warrants are identical to the Public Warrants underlying the Units being sold in the Initial Public Offering,
except that the Private Placement Warrants and the Class A common stock issuable upon the exercise of the Private Placement
Warrants will not be transferable, assignable or salable until the completion of a Business Combination, subject to certain limited
exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as
they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other
than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and
exercisable by such holders on the same basis as the Public Warrants.
NOTE
9 –
FAIR VALUE MEASUREMENTS
The
Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each
reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.
The
fair value of the Company's financial assets and liabilities reflects management's estimate of amounts that the Company would
have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction
between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company
seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable
inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is
used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and
liabilities:
Level
1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which
transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level
2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets
or liabilities and quoted prices for identical assets or liabilities in markets that are active.
Level
3: Unobservable inputs based on the Company's assessment of the assumptions that market participants would use in pricing the asset
or liability.
The
following tables present information about the Company's assets and liabilities that are measured at fair value on a recurring
basis as of March 31, 2022 and December 31, 2021 and indicate the fair value hierarchy of the valuation techniques that the Company utilized
to determine such fair value.
Fair Value Measured as of March 31, 2022
Description
Quoted Prices in Active Markets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Other Unobservable Inputs
(Level 3)
Assets:
Investments held in Trust Account
$
210,130,244
$
—
$
—
Liabilities:
Private Placement Warrants
$
—
$
1,863,000
$
—
Public Warrants
$
3,570,750
$
—
$
—
17
Fair Value Measured as of December 31, 2021
Description
Quoted Prices in Active Markets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Other Unobservable Inputs
(Level 3)
Assets:
Investments held in Trust Account
$
210,109,087
$
—
$
—
Liabilities:
Private Placement Warrants
$
—
$
3,159,000
$
—
Public Warrants
$
6,054,750
$
—
$
—
Transfers
to/from Levels 1, 2, and 3 are recognized at the end of each reporting period.
Derivative
Financial Instruments
The
Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded
derivatives in accordance with ASC Topic 815, "Derivatives and Hedging". For derivative financial instruments that are accounted
for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each
reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments,
including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period.
Derivative liabilities are classified on the balance sheet as current or non-current based on whether or not net-cash settlement or conversion
of the instrument could be required within 12 months of the balance sheet date.
Warrants
The
Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within derivative warrant liabilities
on the condensed balance sheet. Derivative warrant liabilities are measured at fair value at inception and on a recurring basis, with
changes in fair value presented within change in fair value of warrant liabilities in the condensed statements of operations.
Initial
Measurement
The
Company established the initial fair value for the warrants on October 8, 2021, the date of the Company's Initial Public Offering,
using a market-based approach for the Private Placement Warrants and the Public Warrants. The Company allocated the proceeds received
from (i) the sale of Units (which is inclusive of one share of Class A common stock and three-fourth of one Public
Warrant), (ii) the sale of Private Placement Warrants, and (iii) the issuance of Class B common stock, first to the Warrants
based on their fair values as determined at initial measurement, with the remaining proceeds allocated to Class A common stock subject
to possible redemption (temporary equity), Class A common stock (permanent equity) and Class B common stock (permanent equity)
based on their relative fair values at the initial measurement date. The Warrants were classified as Level 3 at the initial measurement
date due to the use of unobservable inputs. On October 8, 2021, the Private Placement Warrants and Public Warrants were determined to
have aggregate values of $4.78 million and $9.16 million, respectively.
18
Subsequent
Measurement
The
Warrants are measured at fair value on a recurring basis. The subsequent measurement of the Public Warrants as of March 31, 2022 and
December 31, 2021 is classified as Level 1 due to the use of an observable market quote in an active market under the
ticker AVACW. As the transfer of Private Placement Warrants to anyone outside of a small group of individuals who are permitted
transferees would result in the Private Placement Warrants having substantially the same terms as the Public Warrants, the Company
determined that the fair value of each Private Placement Warrant is equivalent to that of each Public Warrant, with an insignificant
adjustment for short-term marketability restrictions. As such, the Private Placement Warrants are classified as Level 2. As of
March 31, 2022, the aggregate values of the Private Placement Warrants and Public Warrants were $
1.86
million and $
3.57
million, respectively. As of December 31, 2021, the aggregate values of the Private Placement Warrants and Public Warrants were
$
3.16
million and $
6.05
million, respectively.
NOTE
10 —
SUBSEQUENT EVENTS
The
Company evaluated subsequent events and transactions that occurred after the balance sheet date through May 12, 2022, the date that
the unaudited condensed financial statements were issued. The Company did not identify any subsequent events that would have
required adjustment or disclosure in the financial statements.
19
Item
2. Management's Discussion and Analysis of Financial Condition and Results of Operations.
References
in this quarterly report on Form 10-Q (the "Quarterly Report") to "we," "us" or the
"Company" refer to Avalon Acquisition Inc. References to our "management" or our "management
team" refer to our officers and directors, and references to the "Sponsor" refer to Avalon Acquisition Holdings
LLC. The following discussion and analysis of the Company's financial condition and results of operations should be read in
conjunction with the financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information
contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and
uncertainties.
Special
Note Regarding Forward-Looking Statements
This
Quarterly Report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933,
as amended, and Section 21E of the Securities Exchange Act of 1934, as amended
(the "Exchange Act') that are not historical facts and involve risks and uncertainties that could cause actual results
to differ materially from those expected and projected. All statements, other than statements of historical fact included in this
Quarterly Report including, without limitation, statements in this "Management's Discussion and Analysis of Financial
Condition and Results of Operations" regarding the Company's financial position, business strategy and the plans and
objectives of management for future operations, are forward-looking statements. Words such as "expect,"
"believe," "anticipate," "intend," "estimate," "seek" and variations and
similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to
future events or future performance, but reflect management's current beliefs, based on information currently available. A
number of factors could cause actual events, performance or results to differ materially from the events, performance and results
discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ
materially from those anticipated in the forward-looking statements, please refer to the Risk Factors section of this Quarterly
Report and the Risk Factors section of our Form 10-K filed with the SEC on March 30, 2022. The Company's securities filings
can be accessed on the EDGAR section of the SEC's website at www.sec.gov. Except as expressly required by applicable
securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise.
Overview
We
are a blank check company formed on October 12, 2020, under the laws of the State of Delaware. We were incorporated for the purpose of
effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or other similar business combination with
one or more businesses or entities that we have not yet identified (the "Business Combination").
As
of March 31, 2022, we have not yet commenced operations. All activity for the period from October 12, 2020 (inception) through March
31, 2022, relates to our formation, our initial public offering (the "Initial Public Offering"), which is described below,
and our search for a prospective initial business combination. We do not expect to generate any operating revenues until after the completion
of our Business Combination, at the earliest. We generate non-operating income in the form of income from the proceeds derived from the
Initial Public Offering.
20
Our sponsor is Avalon Acquisition Holdings LLC, a
Delaware limited liability company (the "Sponsor"). The registration statement for our Initial Public Offering was declared
effective by the SEC on October 5, 2021. On October 8, 2021, we consummated our Initial Public Offering of 20,700,000 units (the "Units"
and, with respect to the Class A common stock included in the Units being offered, the "Public Shares"), at $10.00 per Unit,
including 2,700,000 Units sold as part of the exercise of the underwriter's over-allotment option in full, generating gross proceeds
of $207,000,000. We incurred $11,648,816 in transaction costs, including $3,708,007 of underwriting fees, $7,245,000 of deferred underwriting
fees and $695,809 of other costs.
Simultaneously
with the closing of the Initial Public Offering, we consummated the sale of 8,100,000 warrants (each, a "Private Placement Warrant"
and, collectively, the "Private Placement Warrants") at a price of $1.00 per Private Placement Warrant in a private placement
to our Sponsor, generating gross proceeds of $8,100,000.
Following
the Initial Public Offering, the exercise of the over-allotment option and the sale of the Private Placement Warrants, a total of $210,105,000
was placed in a trust account ("Trust Account"), located in the United States with Continental Stock Transfer & Trust
Company acting as trustee, and is invested only in an open-ended investment company that holds itself out as a money market fund selected
by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, until the earlier of: (i) the completion
of a Business Combination or (ii) the distribution of the funds in the Trust Account, as described below.
Our
units, shares of Class A common stock, and public warrants are each traded on the Nasdaq Global Market under the symbols "AVACU,"
"AVAC," and "AVACW," respectively. Our units commenced public trading on October 6, 2021, and our shares of Class
A common stock and public warrants commenced separate public trading on December 3, 2021.
The
Company's management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering
and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward
consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully.
If
we do not complete a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose
of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a
per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the
funds held in the Trust Account and not previously released to the Company to pay taxes (less up to $100,000 to pay dissolution expenses),
divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders' rights
as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly
as reasonably possible following such redemption, subject to the approval of the Company's remaining stockholders and the Company's
board of directors, dissolve and liquidate, subject in each case to the Company's obligations under Delaware law to provide for
claims of creditors and the requirements of other applicable law.
Liquidity
and Going Concern
As of March 31, 2022, we had $730,120 in our operating
bank account, $210,130,244 in securities held in the Trust Account, and working capital of $1,199,924. We intend to use the funds held in the Trust Account, including any amounts representing income earned on the Trust
Account (less taxes payable), to complete our Business Combination. To the extent that our share capital or debt is used, in whole or
in part, as consideration to complete our 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.
For the three months ended March 31, 2022, net
cash used in operating activities was $306,573. Net income for the period of $3,651,354 was impacted by income earned on investments
held in Trust Account of $21,157 and change in fair value of derivative warrant liabilities of $3,780,000. Net changes in operating
assets and liabilities used $156,770 of cash from operating activities.
For the three months ended March 31, 2021, net
cash used in operating activities was $1,947. Net loss for the period of $450 was impacted by net changes in operating assets and
liabilities of $1,497.
Our
liquidity needs prior to the consummation of our Initial Public Offering were satisfied through the payment of $25,000 from the
Sponsor to cover certain expenses on behalf of the Company in exchange for the issuance of 5,175,000 of Class B common stock, par
value $0.0001 per share (the "Founder Shares"), and a $197,000 loan from our Sponsor, under an unsecured promissory
note, which was repaid the Note in full on October 15, 2021. Subsequent to the consummation of the Initial Public Offering, the
Company's liquidity has been satisfied through the net proceeds of $1.82 million from the consummation of the Initial Public
Offering (including the Over-Allotment) and the Private Placement held outside of the Trust Account. In addition, in order to
finance transaction costs in connection with a Business Combination, our Sponsor or an affiliate of our Sponsor, or certain of our
officers and directors may, but are not obligated to, provide us the funds as may be required ("Working Capital Loans").
As of March 31, 2022, there were no amounts outstanding under any Working Capital Loans.
21
In
connection with the Company's assessment of going concern considerations in accordance with Financial Accounting Standards Board
("FASB") Accounting Standards Update ("ASU") 2014-15, "Disclosures of Uncertainties about an
Entity's Ability to Continue as a Going Concern," management has determined that the mandatory liquidation and subsequent
dissolution raises substantial doubt about the Company's ability to continue as a going concern. No adjustments have been made
to the carrying amounts of assets or liabilities should the Company be required to liquidate after January 8, 2023. The financial statements
do not include any adjustment that might be necessary if the Company is unable to continue as a going concern. Management plans to complete
a business combination prior to the mandatory liquidation.
Based
on the foregoing, our management believes that we will have sufficient working capital and borrowing capacity to meet its needs through
the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, we will be using the funds
held outside of the Trust Account for paying existing accounts payable, identifying and evaluating prospective initial Business Combination
candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business
to merge with or acquire, and structuring, negotiating and consummating the Business Combination.
Results
of Operations
Our
entire activity from October 12, 2020 (inception) through October 7, 2021 was in preparation for an Initial Public Offering, and since
our Initial Public Offering, our activity has been limited to the search for a prospective initial Business Combination. We will not
generate any operating revenues until the closing and completion of our initial Business Combination.
For
the three months ended March 31, 2022, we had a net income of $3,651,354, which consisted of operating costs of $99,753 and
franchise tax expense of $50,050, offset by income earned on investments held in the Trust Account of $21,157 and change in fair
value of derivative warrant liabilities of $3,780,000.
For
the three months ended March 31, 2021, we had a net loss $450, which consisted of formation costs.
Contractual
Obligations
Registration
and Stockholder Rights
The
holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and
any Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion
of Working Capital Loans) are entitled to registration rights pursuant to a registration rights agreement. The holders of these securities
are entitled to make up to three demands, excluding short form demands, that we register such securities. In addition, the holders have
certain "piggy-back" registration rights with respect to registration statements filed subsequent to the completion of the
initial Business Combination. We will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting
Agreement
The
underwriters were paid an underwriting discount of $0.125 per unit, or $2,587,500 in the aggregate, upon the closing of our Initial Public
Offering. In addition, $0.35 per unit, or $7,245,000 in the aggregate, will be payable to the underwriters for deferred underwriting
commissions from the amounts held in the Trust Account solely in the event that that we complete a Business Combination, subject to the
terms of the underwriting agreement.
We
granted the underwriters a 45-day option from the date of our Initial Public Offering to purchase up to 2,700,000 additional Units
at the Initial Public Offering price less the underwriting discounts and commissions. The underwriters exercised their over-allotment
option in full on October 8, 2021, generating gross proceeds of $27 million.
Administrative
Support Agreement
We
do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than an agreement
to pay the Sponsor a monthly fee of $10,000 for office space, administrative and support services to the Company. We began incurring
these fees on October 8, 2021 and will continue to incur these fees monthly until the earlier of the completion of the Business Combination
and our liquidation. For the three months ended March 31, 2022, we incurred $30,000 for these services.
22
Critical
Accounting Policies and Estimates
This
management's discussion and analysis of our financial condition and results of operations is based on our unaudited condensed financial
statements, which have been prepared in accordance with GAAP. The preparation of these unaudited condensed financial statements requires
us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure
of contingent assets and liabilities in our financial statements. On an ongoing basis, we evaluate our estimates and judgments, including
those related to fair value of financial instruments and accrued expenses. We base our estimates on historical experience, known trends
and events and various other factors that we believe to be reasonable under the circumstances, the results of which form the basis for
making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates under different assumptions or conditions. There have been no significant changes in our critical accounting
policies as discussed in the Form
10-K
filed
by us with the SEC on March 30, 2022.
Recent
Accounting Standards
In August 2020, the FASB issued ASU No. 2020-06, "Debt-Debt
with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging-Contracts in Entity's Own Equity (Subtopic 815-40):
Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" ("ASU 2020-06"), which simplifies
accounting for convertible instruments by removing major separation models required under current GAAP. ASU 2020-06 removes certain settlement
conditions that are required for equity contracts to qualify for the derivative scope exception and it also simplifies the diluted earnings
per share calculation in certain areas. ASU 2020-06 is effective for fiscal years beginning after December 15, 2023, including interim
periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact on our condensed financial statements.
Management
does not believe that any other recently issued, but not yet effective, accounting standards, if currently adopted, would have a material
effect on our condensed financial statements.
Off-Balance
Sheet Arrangements
We did not have any off-balance sheet arrangements
as defined in Item 303(a)(4)(ii) of Regulation S-K as of March 31, 2022.
23
JOBS
Act
The Jumpstart Our Business Startups Act of 2012 (the "
JOBS
Act") contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We qualify
as an "emerging growth company" and under the JOBS Act are allowed to comply with new or revised accounting pronouncements
based on the effective date for private (not publicly traded) companies.
We are electing to delay the adoption of new or revised accounting standards,
and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards
is required for non-emerging growth companies. As such, our financial statements may not be comparable to companies that comply with
public company effective dates.
Additionally,
we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject
to certain conditions set forth in the JOBS Act, if, as an "emerging growth company," we choose to rely on such exemptions
we may not be required to, among other things, (i) provide an auditor's attestation report on our system of internal controls over
financial reporting pursuant to Section 404 of the JOBS Act, (ii) provide all of the compensation disclosure that may be required of
non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act, (iii) comply with any requirement
that may be adopted by the Public Company Accounting and Oversight Board regarding mandatory audit firm rotation or a supplement to the
auditor's report providing additional information about the audit and the financial statements (auditor discussion and analysis)
and (iv) disclose certain executive compensation related items such as the correlation between executive compensation and performance
and comparisons of our Chief Executive Officer's compensation to median employee compensation. These exemptions will apply for
a period of five years following the completion of our Initial Public Offering or until we are no longer an "emerging growth company,"
whichever is earlier.
Item
3. Quantitative and Qualitative Disclosures About Market Risk
We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the
information otherwise required under this item. As of March 31, 2022, we were not subject to any market or interest rate risk. The
net proceeds of the Initial Public Offering (including the Over-Allotment), including amounts in the Trust Account, are invested in
 a money market fund that meet certain conditions under Rule 2a-7 under the Investment Company Act that invest only in direct U.S. government treasury obligations. Due to the short-term nature of these investments, we believe there
will be no associated material exposure to interest rate risk.
We
have not engaged in any hedging activities since our inception, and we do not expect to engage in any hedging activities with respect
to the market risk to which we are exposed.
Item
4. Controls and Procedures
Evaluation
of Disclosure Controls and Procedures
Disclosure
controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded,
processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is
accumulated and communicated to our management, including our principal executive officer and principal financial officer or persons
performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Under
the supervision and with the participation of our management, we conducted an evaluation of the effectiveness of our disclosure controls
and procedures as of the end of the fiscal quarter ended March 31, 2022, as such term is defined in Rules 13a-15(e) and 15d-15(e) under
the Exchange Act. Based upon that evaluation and in light of the SEC Staff Statement, our Certifying Officers concluded that no material
weakness existed and our disclosure controls and procedures were effective as of March 31, 2022.
Changes
in Internal Control over Financial Reporting
There
was no change in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2022 covered by
this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over
financial reporting.
24
PART
II - OTHER INFORMATION
Item
1. Legal Proceedings.
None.
Item
1A. Risk Factors.
You should consider the risks and uncertainties described
under Item 1A of Part I of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which we filed
with the Securities and Exchange Commission (the SEC") on March 30, 2022, together with all other information contained or
incorporated by reference in this Quarterly Report on Form 10-Q, including the risk factor described below, when evaluating our business
and our prospects.
Other than as set forth below, there
are no material changes to the risk factors set forth in Part I, Item 1A, in our Annual Report on Form 10-K for the year
ended December 31, 2021. Additional risk factors not presently known to us or that we currently deem immaterial may also impair
our business or results of operations.
Our search for a Business Combination,
and any target business with which we may ultimately consummate a Business Combination, may be materially adversely affected by the geopolitical
conditions resulting from the recent invasion of Ukraine by Russia and subsequent sanctions against Russia, Belarus and related individuals
and entities and the status of debt and equity markets, as well as protectionist legislation in our target markets.
United States and global
markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the recent invasion of Ukraine by
Russia in February 2022. In response to such invasion, the North Atlantic Treaty Organization ("NATO") deployed additional
military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced various
sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain financial
institutions from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment system. Certain countries, including
the United States, have also provided and may continue to provide military aid or other assistance to Ukraine during the ongoing military
conflict, increasing geopolitical tensions with Russia. The invasion of Ukraine by Russia and the resulting measures that have been taken,
and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union and other countries have created
global security concerns that could have a lasting impact on regional and global economies. Although the length and impact of the ongoing
military conflict in Ukraine is highly unpredictable, the conflict could lead to market disruptions, including significant volatility
in commodity prices, credit and capital markets, as well as supply chain interruptions. Additionally, Russian military actions and the
resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital
markets.
Any of the abovementioned
factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian
invasion of Ukraine and subsequent sanctions, could adversely affect our search for a Business Combination and any target business
with which we may ultimately consummate a Business Combination. The extent and duration of the Russian invasion of Ukraine, resulting
sanctions and any related market disruptions are impossible to predict, but could be substantial, particularly if current or new sanctions
continue for an extended period of time or if geopolitical tensions result in expanded military operations on a global scale. Any such
disruptions may also have the effect of heightening many of the other risks described in the "Risk Factors" section of our
Annual Report on Form 10-K. If these disruptions or other matters of global concern continue for an extensive period of time, our ability
to consummate a Business Combination, or the operations of a target business with which we may ultimately consummate a Business
Combination, may be materially adversely affected.
25
Changes in laws or regulations, or a
failure to comply with any laws and regulations, may adversely affect our business, including our ability to negotiate and complete a
business combination and results of operations.
We are subject to laws and regulations
enacted by national, regional and local governments. In particular, we will be required to comply with certain SEC and other legal requirements.
Compliance with, and monitoring of, applicable laws and regulations may be difficult, time-consuming and costly. Those laws and regulations
and their interpretation and application may also change from time to time and those changes could have a material adverse effect on our
business, investments, and results of operations. In addition, a failure to comply with applicable laws or regulations, as interpreted
and applied, could have a material adverse effect on our business, including our ability to negotiate and complete a Business Combination
and results of operations of target business with which we may ultimately consummate a Business Combination.
On March 30, 2022, the SEC
issued
proposed rules (the "2022 Proposed Rules") relating to, among other items, enhancing disclosures in business combination
transactions involving special purpose acquisition companies ("SPACs") and private operating companies; amending the financial
statement requirements applicable to transactions involving shell companies; effectively limiting the use of projections in SEC filings
in connection with proposed business combination transactions; increasing the potential liability of certain participants in proposed
business combination transactions; and the extent to which SPACs could become subject to regulation under the Investment Company
Act. These rules, if adopted, whether in the form proposed or in revised form, and certain interpretations expressed by the SEC
in connection therewith, may materially adversely affect our ability to negotiate and complete our initial business combination and may
increase the costs and time related thereto.
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item
3. Defaults Upon Senior Securities.
None.
Item
4. Mine Safety Disclosures.
Not
Applicable.
Item
5. Other Information.
None.
Item
6. Exhibits.
The
following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.
No.
Description of Exhibit
31.1*
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1**
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2**
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*
Inline XBRL Instance Document.
101.SCH*
Inline XBRL Taxonomy Extension Schema Document.
101.CAL*
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF*
Inline XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB*
Inline XBRL Taxonomy Extension Labels Linkbase Document.
101.PRE*
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104*
Cover Page Interactive Data File.
*
Filed herewith.
**
Furnished herewith.
26
PART
III – SIGNATURES
In
accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
AVALON ACQUISITION INC.
Date: May 12, 2022
By:
/s/ S. Craig Cognetti
Name:
S. Craig Cognetti
Title:
Chief Executive Officer
(Principal Executive Officer)
Date: May 12, 2022
By:
/s/ R. Rachel Hsu
Name:
R. Rachel Hsu
Title:
Chief Financial Officer
(Principal Accounting Officer and Financial Officer)
27