|
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
|
|
|
||
|
|
|
||
|
|
|
Large accelerated filer
|
☐ |
Accelerated filer
|
☐ |
|
☒ |
Smaller reporting company
|
|
Emerging growth company
|
|
Page
|
|||
Part I. Financial Information
|
|||
Item 1. Financial Statements
|
|
||
1
|
|||
2
|
|||
3
|
|||
4
|
|||
5
|
|||
16
|
|||
18
|
|||
18
|
|||
Part II. Other Information
|
|||
18
|
|||
18
|
|||
19
|
|||
19
|
|||
19
|
|||
19
|
|||
19
|
|||
20
|
ASSETS
|
||||
Current Assets: |
||||
Cash
|
$
|
|
||
Prepaid expenses
|
||||
Total current assets
|
|
|||
Marketable securities held in Trust Account |
||||
Total Assets
|
$
|
|
||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
||||
Current Liabilities:
|
||||
Accrued expenses
|
$ |
|
||
Total current liabilities
|
|
|||
Warrant liabilities
|
||||
Deferred underwriting fee payable
|
||||
Total Liabilities
|
$ |
|||
Commitments
|
||||
Class A common stock, $
|
$ |
|||
Stockholders’ Deficit
|
||||
Preferred stock, $
|
|
|||
Class A common stock, $ |
|
|||
Class B common stock, $
|
|
|||
Additional paid-in capital
|
|
|||
Accumulated deficit
|
(
|
)
|
||
Total Stockholders’ Deficit
|
(
|
)
|
||
Total Liabilities and Stockholders’ Deficit
|
$
|
|
(1) |
|
Three
Months
Ended
September 30,
|
For the
Period from
February 4, 2021 (Inception)
Through
September 30,
|
|||||||
2021 |
2021 |
|||||||
Operating and formation costs
|
$
|
|
$
|
|
||||
Loss from operations
|
( |
) | ( |
) | ||||
Other income:
|
||||||||
Interest earned on marketable securities held in Trust Account
|
||||||||
Unrealized loss on marketable securities held in Trust Account
|
( |
) | ( |
) | ||||
Change in fair value of warrant liabilities
|
||||||||
Transaction costs allocable to warrant liabilities
|
( |
) | ( |
) | ||||
Other income, net
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Basic and diluted weighted average shares outstanding, Class A common stock |
||||||||
Basic and diluted net income per share, Class A common stock |
$ |
$ |
||||||
Basic and diluted weighted average shares outstanding, Class B common stock(1)
|
|
|
||||||
Basic and diluted net income per share, Class B common stock
|
$
|
|
$
|
|
(1) |
|
Class A
Common Stock
|
Class B
Common Stock
|
Additional
Paid-in
|
Accumulated
|
Total
Stockholders’
|
||||||||||||||||||||||||
Shares | Amount |
Shares
|
Amount
|
Capital
|
Deficit
|
Deficit
|
||||||||||||||||||||||
Balance — February 4, 2021 (Inception)
|
$ |
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Issuance of Class B common stock to Sponsor
|
— | — |
|
|
|
|
|
|||||||||||||||||||||
Net loss
|
— |
—
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||||||
Balance – March 31, 2021
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||
Net income
|
— |
—
|
|
|
|
|
||||||||||||||||||||||
Balance – June 30, 2021
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||
Accretion of Class A common stock to redemption amount
|
— |
— |
— |
— |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Forfeiture of Founder Shares
|
— |
— |
( |
) | ( |
) | ||||||||||||||||||||||
Net income
|
— |
— |
||||||||||||||||||||||||||
Balance – September 30, 2021
|
$ | $ |
$ |
$ |
( |
) | $ |
( |
) |
Cash Flows from Operating Activities:
|
||||
Net income
|
$
|
|
||
Adjustments to reconcile net income to net cash used in operating activities:
|
||||
Change in fair value of warrants liabilities
|
( |
) | ||
Unrealized
loss on marketable securities held in Trust Account
|
||||
Interest earned on marketable securities held in Trust Account
|
( |
) | ||
Transaction costs allocated to warrant liabilities
|
||||
Changes in operating assets and liabilities:
|
||||
Prepaid expenses and other current assets
|
||||
Accrued expenses
|
|
|||
Prepaid expenses
|
( |
) | ||
Net cash used in operating activities
|
(
|
)
|
||
Cash Flows from Investing Activities:
|
||||
Investment of cash in Trust Account
|
( |
) | ||
Net cash used in investing activities
|
( |
) | ||
Cash Flows from Financing Activities:
|
||||
Proceeds from issuance of Class B common stock to Sponsor
|
|
|||
Proceeds from sale of Units, net of underwriting discounts paid
|
|
|||
Proceeds from sale of Private Placements Warrants
|
||||
Proceeds from promissory note – related party
|
||||
Repayment of promissory note – related party
|
( |
) | ||
Payment of offering costs
|
(
|
)
|
||
Net cash provided by financing activities
|
|
|||
Net Change in Cash
|
|
|||
Cash – Beginning of period
|
|
|||
Cash – End of period
|
$
|
|
||
Non-Cash investing and financing activities:
|
||||
Deferred underwriting fee payable
|
$ | |||
Initial value of warrant liabilities
|
$ |
|||
Forfeiture of Founders Shares
|
$ | ( |
) |
Balance Sheet as of August 10, 2021 (audited)
|
As Previously
Reported
|
Adjustment
|
As Restated
|
|||||||||
Class A common stock subject to possible redemption
|
$
|
|
$
|
|
$
|
|
||||||
Class A common stock
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Additional paid-in capital
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Accumulated Deficit
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Total Stockholders’ Equity (Deficit)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
Gross proceeds
|
$
|
|
||
Less:
|
||||
Proceeds allocated to Public Warrants
|
(
|
)
|
||
Class A common stock issuance costs
|
(
|
)
|
||
Plus:
|
||||
Accretion of carrying value to redemption value
|
|
|||
Class A common stock subject to possible redemption
|
$
|
|
Three Months Ended
September 30, 2021
|
For the Period from February 4, 2021 (Inception) through September 30, 2021
|
|||||||||||||||
Class A
|
Class B
|
Class A
|
Class B
|
|||||||||||||
Basic and diluted net income per common stock
|
||||||||||||||||
Numerator:
|
||||||||||||||||
Allocation of net income, as adjusted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Denominator:
|
||||||||||||||||
Basic and diluted weighted average shares outstanding
|
|
|
|
|
||||||||||||
Basic and diluted net income per common stock
|
$
|
|
$
|
|
$
|
|
$
|
|
● |
in whole and not in part;
|
● |
at a price of $
|
● |
upon not less than
|
● |
if, and only if, the last reported sale price of the Class A ordinary shares for any
|
Description
|
Level
|
September 30,
2021
|
||||||
Assets:
|
||||||||
Marketable securities held in Trust Account
|
1
|
$
|
|
|||||
|
||||||||
Liabilities:
|
||||||||
Warrant liability – Public Warrants
|
1
|
$
|
|
|||||
Warrant liability – Private Placement Warrants
|
3
|
$
|
|
|
August 10,
2021 (Initial
Measurement)
Public and Private
Warrants
|
|||
Stock price
|
$
|
|
||
Exercise price
|
$
|
|
||
Expected term (in years)
|
|
|||
Volatility
|
|
%
|
||
Risk-free rate
|
|
%
|
||
Dividend yield
|
|
%
|
|
September 30,
2021
Private Warrants
|
|||
Stock price
|
$
|
|
||
Exercise price
|
$
|
|
||
Expected term (in years)
|
|
|||
Volatility
|
|
%
|
||
Risk-free rate
|
|
%
|
||
Dividend yield
|
|
%
|
|
Private
Placement
|
Public
|
Warrant
Liabilities
|
|||||||||
Fair value as of February 4, 2021 (inception)
|
$
|
|
$
|
|
$
|
|
||||||
Initial measurement on August 10, 2021
|
|
|
|
|||||||||
Change in valuation inputs or other assumptions
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
Transfer to level 1
|
|
(
|
)
|
(
|
)
|
|||||||
Fair value as of September 30, 2021
|
$
|
|
$
|
|
$
|
|
Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
Item 3. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4. |
Controls and Procedures
|
Item 1. |
Legal Proceedings
|
Item 1A. |
Risk Factors
|
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds.
|
Item 3. |
Defaults Upon Senior Securities
|
Item 4. |
Mine Safety Disclosures
|
Item 5. |
Other Information
|
Item 6. |
Exhibits
|
No.
|
Description of Exhibit
|
|
Underwriting Agreement, dated August 5, 2021, by and among the Company, Cantor Fitzgerald & Co. and Stephens, Inc.(1)
|
||
Amended and Restated Certificate of Incorporation. (1)
|
||
Warrant Agreement, dated August 5, 2021, by and between the Company and Continental Stock Transfer & Trust Company, as warrant agent. (1)
|
||
Investment Management Trust Agreement, dated August 5, 2021, by and between the Company and Continental Stock Transfer & Trust Company, as trustee. (1)
|
||
Registration Rights Agreement, dated August 5, 2021, by and between the Company and the Sponsor. (1)
|
||
Private Placement Warrants Purchase Agreement, dated August 5, 2021, by and between the Company and the Sponsor.
(1)
|
||
Letter Agreement, dated August 5, 2021, by and among the Company, its officers, its directors and the Sponsor.
(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
|
||
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
|
||
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
|
||
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*
|
XBRL Instance Document
|
|
101.SCH*
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL*
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF*
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB*
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
101.PRE*
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
* |
Filed herewith.
|
(1) |
Previously filed as an exhibit to our Current Report on Form 8-K filed on August 11, 2021 and incorporated by reference herein.
|
RIVERVIEW ACQUISITION CORP.
|
||
Date: November 22, 2021
|
By:
|
/s/ R. Brad Martin
|
Name:
|
R. Brad Martin
|
|
Title:
|
Chairman and Chief Executive Officer
|
|
(Chairman and Chief Executive Officer)
|
||
Date: November 22, 2021
|
By:
|
/s/ William V. Thompson III
|
Name:
|
William V. Thompson III
|
|
Title:
|
Treasurer, Secretary, and Chief Financial Officer
|
|
(Treasurer, Secretary, and Chief Financial Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of Riverview Acquisition Corp.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within
those entities, particularly during the period in which this report is being prepared; and
|
b) |
(Paragraph omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a);
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report
financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ R. Brad Martin
|
|
R. Brad Martin
|
|
Chairman and Chief Executive Officer
|
|
(Chairman and Chief Executive Officer)
|
1. |
I have reviewed this quarterly report on Form 10-Q of Riverview Acquisition Corp.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over
financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within
those entities, particularly during the period in which this report is being prepared; and
|
b) |
(Paragraph omitted pursuant to Exchange Act Rules 13a-14(a) and 15d-15(a);
|
c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
|
d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report)
that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of
directors (or persons performing the equivalent functions):
|
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report
financial information; and
|
b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ William V. Thompson III
|
|
William V. Thompson III
|
|
Treasurer, Secretary, and Chief Financial Officer
|
|
(Treasurer, Secretary, and Chief Financial Officer)
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ R. Brad Martin
|
|
R. Brad Martin
|
|
Chairman and Chief Executive Officer
|
|
(Chairman and Chief Executive Officer)
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ William V. Thompson III
|
|
William V. Thompson III
|
|
Treasurer, Secretary, and Chief Financial Officer
|
|
(Treasurer, Secretary, and Chief Financial Officer)
|
CONDENSED BALANCE SHEET (Parenthetical) |
Sep. 30, 2021
$ / shares
shares
|
---|---|
Stockholders' Deficit | |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Preferred stock, shares authorized (in shares) | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 |
Preferred stock, shares outstanding (in shares) | 0 |
Class A Common Stock [Member] | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | |
Common stock, subject to possible redemption, par value (in dollars per share) | $ / shares | $ 0.001 |
Common stock, subject to possible redemption, shares authorized (in shares) | 85,000,000 |
Common stock, subject to possible redemption (in shares) | 25,000,000 |
Stockholders' Deficit | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Common stock, shares authorized (in shares) | 85,000,000 |
Common stock, shares issued (in shares) | 0 |
Common stock, shares outstanding (in shares) | 0 |
Class B Common Stock [Member] | |
Stockholders' Deficit | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Common stock, shares authorized (in shares) | 15,000,000 |
Common stock, shares issued (in shares) | 6,250,000 |
Common stock, shares outstanding (in shares) | 6,250,000 |
Common stock, shares forfeited (in shares) | 937,500 |
CONDENSED STATEMENTS OF OPERATIONS - USD ($) |
3 Months Ended | 8 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
|||
Loss from Operation | ||||
Operating and formation costs | $ 131,911 | $ 140,324 | ||
Loss from operations | (131,911) | (140,324) | ||
Other income: | ||||
Interest earned on marketable securities held in Trust Account | 13,741 | 13,741 | ||
Unrealized loss on marketable securities held in Trust Account | (2,767) | (2,767) | ||
Change in fair value of warrant liabilities | 4,924,000 | 4,924,000 | ||
Transaction costs allocable to warrant liabilities | (1,283,477) | (1,283,477) | ||
Other income, net | 3,651,497 | 3,651,497 | ||
Net income | $ 3,519,586 | $ 3,511,173 | ||
Class A Common Stock [Member] | ||||
Other income: | ||||
Basic weighted average shares outstanding (in shares) | 14,010,989 | 5,803,571 | ||
Diluted weighted average shares outstanding (in shares) | 14,010,989 | 5,803,571 | ||
Basic net income per common share (in dollars per share) | $ 0.17 | $ 0.29 | ||
Diluted net income per common share (in dollars per share) | $ 0.17 | $ 0.29 | ||
Class B Common Stock [Member] | ||||
Other income: | ||||
Basic weighted average shares outstanding (in shares) | [1] | 6,250,000 | 6,250,000 | |
Diluted weighted average shares outstanding (in shares) | [1] | 6,250,000 | 6,250,000 | |
Basic net income per common share (in dollars per share) | $ 0.17 | $ 0.29 | ||
Diluted net income per common share (in dollars per share) | $ 0.17 | $ 0.29 | ||
|
CONDENSED STATEMENTS OF OPERATIONS (Parenthetical) |
Sep. 30, 2021
shares
|
---|---|
Class B Common Stock [Member] | |
Operating Income (Loss) [Abstract] | |
Common stock, shares forfeited (in shares) | 937,500 |
CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($) |
Common Stock [Member]
Class A Common Stock [Member]
|
Common Stock [Member]
Class B Common Stock [Member]
|
Additional Paid-in Capital [Member] |
Accumulated Deficit [Member] |
Total |
---|---|---|---|---|---|
Beginning balance at Feb. 03, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Beginning balance (in shares) at Feb. 03, 2021 | 0 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of Class B ordinary shares to Sponsor | $ 7,188 | 17,812 | 0 | 25,000 | |
Issuance of Class B ordinary shares to Sponsor (in shares) | 7,187,500 | ||||
Net income (loss) | $ 0 | $ 0 | 0 | (8,476) | (8,476) |
Ending balance at Mar. 31, 2021 | $ 0 | $ 7,188 | 17,812 | (8,476) | 16,524 |
Ending balance (in shares) at Mar. 31, 2021 | 0 | 7,187,500 | |||
Beginning balance at Feb. 03, 2021 | $ 0 | $ 0 | 0 | 0 | 0 |
Beginning balance (in shares) at Feb. 03, 2021 | 0 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 3,511,173 | ||||
Ending balance at Sep. 30, 2021 | $ 0 | $ 6,250 | 0 | (20,305,965) | (20,299,715) |
Ending balance (in shares) at Sep. 30, 2021 | 0 | 6,250,000 | |||
Beginning balance at Mar. 31, 2021 | $ 0 | $ 7,188 | 17,812 | (8,476) | 16,524 |
Beginning balance (in shares) at Mar. 31, 2021 | 0 | 7,187,500 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ 0 | $ 0 | 0 | 63 | 63 |
Ending balance at Jun. 30, 2021 | $ 0 | $ 7,188 | 17,812 | (8,413) | 16,587 |
Ending balance (in shares) at Jun. 30, 2021 | 0 | 7,187,500 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Accretion of Class A common stock to redemption amount | (18,750) | (23,817,138) | (23,835,888) | ||
Forfeiture of Founder Shares | $ (938) | 938 | 0 | 0 | |
Forfeiture of founder shares (in shares) | (937,500) | ||||
Net income (loss) | $ 0 | $ 0 | 0 | 3,519,586 | 3,519,586 |
Ending balance at Sep. 30, 2021 | $ 0 | $ 6,250 | $ 0 | $ (20,305,965) | $ (20,299,715) |
Ending balance (in shares) at Sep. 30, 2021 | 0 | 6,250,000 |
CONDENSED STATEMENT OF CASH FLOWS - USD ($) |
3 Months Ended | 8 Months Ended |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2021 |
|
Cash Flows from Operating Activities: | ||
Net income | $ 3,519,586 | $ 3,511,173 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Change in fair value of warrants liabilities | (4,924,000) | |
Unrealized loss on marketable securities held in Trust Account | 2,767 | 2,767 |
Interest earned on marketable securities held in Trust Account | (13,741) | (13,741) |
Transaction costs allocated to warrant liabilities | 1,283,477 | 1,283,477 |
Prepaid expenses and other current assets | ||
Accrued expenses | 57,913 | |
Prepaid expenses | (663,757) | |
Net cash used in operating activities | (746,168) | |
Cash Flows from Investing Activities: | ||
Investment of cash in Trust Account | (250,000,000) | |
Net cash used in investing activities | (250,000,000) | |
Cash Flows from Financing Activities: | ||
Proceeds from issuance of Class B common stock to Sponsor | 25,000 | |
Proceeds from sale of Units, net of underwriting discounts paid | 245,000,000 | |
Proceeds from sale of Private Placements Warrants | 7,400,000 | |
Proceeds from promissory note - related party | 181,341 | |
Repayment of promissory note - related party | (181,341) | |
Payment of offering costs | (512,365) | |
Net cash provided by financing activities | 251,912,635 | |
Net Change in Cash | 1,166,467 | |
Cash - Beginning of period | 0 | |
Cash - End of period | $ 1,166,467 | 1,166,467 |
Non-Cash investing and financing activities: | ||
Deferred underwriting fee payable | 8,750,000 | |
Initial value of warrant liabilities | 18,257,000 | |
Forfeiture of Founders Shares | $ (938) |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS |
9 Months Ended |
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Sep. 30, 2021 | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS [Abstract] | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS |
NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
Riverview Acquisition Corp. (the “Company”) is a blank check company incorporated in Delaware on February 4, 2021. The Company was formed for the purpose of effectuating a merger, capital stock exchange, asset
acquisition, stock purchase, reorganization or other similar business combination with one or more businesses (the “Business Combination”).
The Company is not limited to a particular industry or sector for purposes of consummating a Business Combination. 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 September 30, 2021, the Company had not yet commenced any operations. All activity for the period February 4, 2021 (inception) through September 30, 2021 relates to the Company’s formation, the initial public
offering (the “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 a Business Combination, at the
earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering.
The registration statement for the Company’s Initial Public Offering was declared
effective on August 5, 2021. On August 10, 2021, the Company consummated the Initial Public Offering of 25,000,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units being offered, the “Public Shares”), at $10.00 per Unit, generating gross proceeds of $250,000,000,
which is described in Note 4.
Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 7,400,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per
Private Placement Warrant in a private placement to Riverview Sponsor Partners, LLC (the “Sponsor”), generating gross proceeds of $7,400,000,
which is described in Note 5.
Following
the closing of the Initial Public Offering on August 10, 2021, an amount of $250,000,000 ($10.00 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”) which will be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 180 days or less
or in any open-ended investment company that holds itself out as a money market fund 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 to the Company’s stockholders, as described below.
Transaction costs amounted to $14,262,365, consisting of $5,000,000 of underwriting fees, $8,750,000
of deferred underwriting fees and $512,365 of other offering costs.
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 completing a Business Combination. The
Company must complete one or more initial Business Combinations with one or more operating businesses or assets with a fair market value equal to at least 80% of the net assets held in the Trust Account (less any deferred underwriting commissions and taxes payable on interest earned on the Trust Account) at the time of the signing a
definitive agreement to enter a Business Combination. The Company will only complete a Business Combination if the post-Business Combination 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. There is no assurance that the Company will be able to complete a Business Combination successfully.
The Company will provide its 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 $10.00 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). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants.
The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 either prior to or 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 and the Company does not decide to hold a stockholder vote for business or other 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 other 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 Sponsor has agreed to vote its Founder Shares (as defined in Note 6) and any Public Shares purchased during or after the Initial Public Offering, and the Anchor Investors (as defined below in Note 4) will agree to vote any
Founder Shares held by them in favor of approving a Business Combination. Additionally, each public stockholder may elect to redeem their Public Shares, without voting, and if they do vote, irrespective of whether they vote for or against the
proposed Business Combination.
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 20% or more of the Public Shares, without the prior consent of the Company.
The Sponsor has agreed (a) 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, (b) to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within 18 months from the closing of the Initial Public Offering and (c) not to propose an amendment to the Amended and Restated Certificate of Incorporation (i) to modify the substance or timing
of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of its
Public Shares if the Company does not complete a Business Combination or (ii) with respect to any other provision relating to stockholders’ rights or pre-initial business combination activity, unless the Company provides the public stockholders
with the opportunity to redeem their Public Shares in conjunction with any such amendment.
The Anchor Investors will not be entitled to (i) redemption rights with respect to any Founder Shares held by them in connection with the completion of the initial
Business Combination, (ii) redemption rights with respect to any Founder Shares held by them in connection with a shareholder vote to amend the Amended and Restated Certificate
of Incorporation in a manner that would affect the substance or timing of the Company’s obligation to redeem 100% of its
Public Shares if the Company has not consummated an initial Business Combination within the Combination Period or (iii) rights to liquidating distributions from the Trust Account with respect to any Founder Shares held by them if the Company
fails to complete the initial Business Combination within the Combination Period (although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if the Company fails to complete the
Business Combination within the Combination Period).
The Company will have until February 10, 2023 to complete a Business Combination (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
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 its tax obligations (less up to $100,000 of
interest 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), 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.The Sponsor has agreed to waive its liquidation rights 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 underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination
within in 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 $10.00 per Public Share except for any claims by any third party who executed a waiver of any and all rights to seek access to the Trust Account,
regardless of whether such waiver is enforceable, and except for claims arising from the Company’s obligation to indemnify the underwriters 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 (except the Company’s 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 Capital Resources
As of September 30, 2021, the Company had cash of $1,166,467 not held in the Trust Account and available for working capital purposes. The Company does not believe it will need to raise additional
funds in order to meet the expenditures required for operating its business. However, if the estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the
actual amount necessary to do so, the Company may have insufficient funds available to operate its business prior to a Business Combination. Moreover, the Company may need to obtain additional financing or draw on the Working Capital Loans (as
defined below) either to complete a Business Combination or because it becomes obligated to redeem a significant number of the Public Shares upon consummation of a Business Combination, in which case the Company may issue additional securities
or incur debt in connection with such Business Combination. Subject to compliance with applicable securities laws, the Company would only complete such financing simultaneously with the completion of our Business Combination. If the Company is
unable to complete the Business Combination because it does not have sufficient funds available, the Company will be forced to cease operations and liquidate the Trust Account. In addition, following the Business combination, if cash on hand is
insufficient, the Company may need to obtain additional financing in order to meet its obligations.
Risks and Uncertainties
Management continues to evaluate the impact of the COVID-19 pandemic 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 these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS |
NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
In connection with the preparation of the Company’s financial statements as of September 30, 2021, management determined it should restate its
previously reported financial statements. The Company determined, at the closing of the Company’s Initial Public Offering it had improperly classified its Class A common stock subject to possible redemption. The Company previously determined the
Class A common stock subject to possible redemption to be equal to the redemption value, while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Management determined that the Class A common stock issued during the Initial Public Offering can be redeemed or become redeemable subject to the occurrence of
future events considered outside the Company’s control. Therefore, management concluded that the redemption value should include all Class A common stock subject to possible redemption, resulting in the Class A common stock subject to possible
redemption being equal to its redemption value. As a result, management has noted a reclassification adjustment related to temporary equity and permanent equity. This resulted in a restatement to the initial carrying value of the Class A common
stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock.
There has been no change in the Company’s total assets, liabilities or operating results.
The impact of the restatement on the Company’s financial statements is reflected in the following table.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain
information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they
do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include
all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.
The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s prospectus for its Initial Public Offering as filed with
the SEC on August 10, 2021, as well as the Company’s Current Report on Form 8-K, as filed with the SEC on August 10, 2021. The interim results for the three months ended September 30, 2021 and for the period from February 4, 2021 (inception)
through September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 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 Jumpstart Our Business Startups Act of 2012 (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, 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 statement 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.
Use of Estimates
The preparation of the condensed 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 revenues and 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. One of the more significant accounting estimates included in these condensed financial statements is the determination of the fair value of the
warrant liabilities. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those estimates.
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. The Company did not have any cash equivalents as of September 30, 2021.
Marketable Securities Held in Trust Account
At September 30, 2021, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. All of the Company’s investments held in the Trust Account are classified
as trading securities. Trading securities are presented on the balance sheet at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments held in the Trust Account are
included in interest earned on marketable securities held in Trust Account in the accompanying condensed statements of operations. The estimated fair values of investments held in Trust Account are determined using available market information.
Class A Common Stock Subject to Possible Redemption
The Company accounts for its Class A common stock subject to possible redemption
in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is
measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely
within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of
the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the
stockholders’ equity section of the Company’s condensed balance sheets.
The Company recognizes changes in redemption value immediately as they occur and
adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid in
capital and accumulated deficit.
At September 30, 2021, the Class A common stock reflected in the condensed
consolidated balance sheet are reconciled in the following table:
Offering Costs
Offering costs consist of underwriting, legal, accounting
and other expenses incurred through the Initial Public Offering that are directly related to the Initial Public Offering. Offering costs are allocated to the separable financial instruments issued in the Initial Public Offering based on a
relative fair value basis, compared to total proceeds received. Offering costs associated with derivative warrant liabilities are expensed as incurred, presented as non-operating expenses in the statements of operations. Offering costs
associated with the Class A common stock issued were initially charged to temporary equity and then accreted to common stock subject to redemption upon the completion of the Initial Public Offering. Offering costs amounted to $14,262,365, of which $13,600,399 were
charged to stockholders’ equity upon the completion of the Initial Public Offering and $661,966 were expensed to the statements of
operations. Offering costs related to the Founder Shares amounted to $8,762,500, of which $8,140,989 were charged to stockholders’ equity upon the completion of the Initial Public Offering
and $621,511 were expensed to the statements of operations and included in transaction costs attributable to warrant liabilities.
Warrant Liabilities
The Company accounts for the Public Warrants (as defined in Note 4) and the Private Placement Warrants (collectively, with the Public Warrants, the “Warrants”) in accordance with the guidance contained in ASC 815-40 under which the
Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjusts the Warrants to fair value at each reporting period.
This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the statements of operations. The Warrants for periods where no observable traded price was available are
valued using a binomial/lattice model. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price will be used as the fair value as of each relevant date.
Income Taxes
The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to
financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible
amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to
be realized.
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, if any, as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and
penalties as of September 30, 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 ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two classes of shares. Net
income (loss) per ordinary share is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding for the period. Remeasurement associated with the redeemable Class A ordinary shares is excluded from
income (loss) per ordinary share as the redemption value approximates fair value.
The calculation of diluted income (loss) per share does
not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the warrants exceeded the fair value per common share. The warrants are exercisable to
purchase 19,900,000 shares of Class A common stock in the aggregate. As of September 30, 2021, the Company did not have any
dilutive securities or other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company. As a result, diluted net income (loss) per common share is the same as basic net
income (loss) per common share for the periods presented.
The following table reflects the calculation of basic and diluted net income
(loss) per common share (in dollars, except per share amounts):
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times may
exceed the Federal Depository Insurance Corporation coverage limit 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 accompanying balance sheet, primarily due to their short-term nature, except for
the warrant liabilities (see Note 10).
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”. Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the statements of
operations. Derivative assets and liabilities are classified in 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.
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. The Company is currently assessing the impact, if any,
that ASU 2020-06 would have on its financial position, results of operations or cash flows.
Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently
adopted, would have a material effect on the Company’s financial statements.
|
INITIAL PUBLIC OFFERING |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
INITIAL PUBLIC OFFERING [Abstract] | |
INITIAL PUBLIC OFFERING |
NOTE 4. INITIAL PUBLIC OFFERING
Pursuant to the Initial Public Offering, the Company sold 25,000,000
Units at a purchase price of $10.00 per Unit. Each Unit will consist of one share of the Company’s Class A common stock and of one redeemable warrant (“Public Warrant”). Each Public
Warrant will entitle the holder to purchase one share of Class A common stock at an exercise price of $11.50 per whole share (see Note 9).
Certain qualified institutional buyers or institutional accredited investors which are not affiliated with any member of the Company’s management (the “Anchor Investors”) purchased 2,490,000 Units in the Initial Public Offering at the offering price of $10.00
per Unit. There can be no assurance as to the amount of such Units the Anchor Investors will retain, if any, prior to or upon the consummation of a Business Combination.
|
PRIVATE PLACEMENT |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
PRIVATE PLACEMENT [Abstract] | |
PRIVATE PLACEMENT |
NOTE 5. PRIVATE PLACEMENT
Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 7,400,000 Private Placement Warrants at a price of $1.00 per Private
Placement Warrant, for an aggregate purchase price of $7,400,000, in a private placement. Each Private Placement Warrant is exercisable
to purchase one Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 8). A portion of the proceeds from the Private Placement Warrants were added to the proceeds from the Initial Public Offering held in the Trust Account. If the
Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law)
and the Private Placement Warrants will expire worthless.
|
RELATED PARTY TRANSACTIONS |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS |
NOTE 6. RELATED PARTY TRANSACTIONS
Founder Shares
On February 18, 2021, the Sponsor purchased 5,750,000
shares (the “Founder Shares”) of the Company’s Class B common stock for an aggregate price of $25,000. On April 7, 2021, the Company
effected a stock dividend of 1,437,500 Founder Shares, resulting in 7,187,500 Founder Shares outstanding. The Founder Shares included an aggregate of up to 937,500 shares that were subject to forfeiture by the Sponsor. As a result of the underwriters’ election to not exercise their over-allotment option by September 24, 2021, 937,500 Founder Shares were forfeited resulting in an aggregate of 6,250,000 Founders Shares outstanding.
The Sponsor has agreed, subject to certain limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (1) 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.
In connection with the closing of the Initial Public Offering, the Sponsor sold 125,000 Founder Shares to each Anchor Investor at their original purchase price of $10.00. The
Company estimated the aggregate fair value of the Founder Shares attributable to the Anchor Investors to be $8,762,500, or $7.01 per share. The fair value of the Founder Shares were valued using a binomial/lattice model. The excess of the fair value of the Founder Shares
was determined to be an offering cost in accordance with Staff Accounting Bulletin Topic 5A. Accordingly, the offering cost was allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value
basis, compared to total proceeds received. Offering costs related to the Founder Shares amounted to $8,762,500, of which $8,140,989 were charged to stockholders’ equity upon the completion of the Initial Public Offering and $621,511 were expensed to the statements of operations and included in transaction costs attributable to warrant liabilities.
Administrative Services Agreement
The Company entered into an agreement, commencing on August 5, 2021 through the earlier of the Company’s consummation of a Business Combination and its liquidation,
to pay the Sponsor or an affiliate of the Sponsor a total of up to $5,000 per month for secretarial and administrative services. For the three months ended September 30, 2021 and for the period from February 4, 2021 (inception) through September 30, 2021, the Company
incurred $10,000 in fees for these services, respectively. At September 30, 2021, a total of $5,000 of such fees, is included in accrued expenses in the accompanying condensed balance sheet.
Promissory Note — Related Party
On February 18, 2021, the Sponsor issued an unsecured promissory note to the Company (the “Promissory Note”), pursuant to which the Company could borrow up to an
aggregate principal amount of $300,000. The Promissory Note was non-interest bearing and payable on the earlier of December 31, 2021 or
the consummation of the Initial Public Offering. As of August 10, 2021, there was $181,341 outstanding under the Note, which is
currently due on demand. The outstanding balance under the Promissory Note of $181,341 was subsequently repaid on August 23, 2021.
Related Party Loans
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 directors and
officers 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. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. 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. 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 of the post-Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private
Placement Warrants. As of September 30, 2021, there are no Working Capital Loans outstanding.
|
COMMITMENTS |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
COMMITMENTS [Abstract] | |
COMMITMENTS |
NOTE 7. COMMITMENTS
Registration and Stockholder Rights
Pursuant to a registration rights agreement entered into on August 10, 2021, the holders of the Founder Shares, Private Placement Warrants and warrants that may be
issued upon conversion of the Working Capital Loans (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of Working Capital Loans) are entitled to registration
rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to shares of our Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form registration 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 and rights to require the Company to register for resale such securities pursuant to Rule 415 under the
Securities Act. However, the registration rights agreement will provide that the Company will not be required to effect or permit any registration or cause any registration statement to become effective until termination of the applicable lock-up
period. The registration rights agreement does not contain liquidated damages or other cash settlement provisions resulting from delays in registering the Company’s securities. The Company will bear the expenses incurred in connection with the
filing of any such registration statements.
Warrant Amendments
The warrant agreement provides that the terms of the warrants may be amended without the consent of any shareholder or warrant holder to cure any ambiguity or
correct any defective provision but otherwise requires the approval by the holders of at least 65% of the then outstanding public
warrants to make any change that adversely affects the interests of the registered holders of public warrants. Accordingly, the Company may amend the terms of the public warrants in a manner adverse to a holder of public warrants if holders of at
least a 65% of the then outstanding public warrants approve of such amendment. Although the Company’s ability to amend the terms of
the public warrants with the consent of at least 65% of the then outstanding public warrants is unlimited, examples of such amendments
could be amendments to, among other things, increase the exercise price of the warrants, convert the warrants into cash or shares, shorten the exercise period or decrease the number of Class A common stock purchasable upon exercise of a warrant.
Underwriting Agreement
The Company granted the underwriters a 45-day option
to purchase up to 3,750,000 additional Units to cover over-allotments at the Initial Public Offering price, less the underwriting
discounts and commissions. The underwriters elected not to exercise the over-allotment option to purchase an additional 937,500 Units
at a price of $10.00 per Unit. The over-allotment option expired on September 24, 2021.
The underwriters are entitled to a deferred fee of $0.35
per Unit, or $8,750,000 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held in the
Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement.
|
WARRANT LIABILITIES |
9 Months Ended | ||||||||||||
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Sep. 30, 2021 | |||||||||||||
WARRANT LIABILITIES [Abstract] | |||||||||||||
WARRANT LIABILITIES |
NOTE 8. WARRANT LIABILITIES
At September 30, 2021, there are 12,500,000 Public
Warrants outstanding. Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years from the completion of a Business Combination or earlier upon redemption or liquidation.
The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such
Public Warrant exercise unless a registration statement under the Securities Act covering the issuance of the Class A ordinary shares issuable upon exercise of the warrants is then effective and a current prospectus relating thereto is available,
subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue
any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption is available.
The Company has agreed that as soon as practicable, but in no event later than 15 business days, after the closing of a Business Combination, it will use its commercially reasonable efforts to file with the SEC a registration statement covering the issuance, under
the Securities Act, of the Class A ordinary shares issuable upon exercise of the warrants, and the Company will use its commercially reasonable efforts to cause the same to become effective within 60 business days after the closing of a Business Combination and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto,
until the expiration of the warrants in accordance with the provisions of the warrant agreement. Notwithstanding the above, if the Class A ordinary shares 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 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 so elects, the Company will not be required to file or maintain in effect a registration statement, but will use its commercially reasonable efforts to register
or qualify the shares under applicable blue sky laws to the extent an exemption is not available.
Once the warrants become exercisable, the Company may redeem the outstanding Public Warrants:
If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if the Company is unable to register or qualify the
underlying securities for sale under all applicable state securities laws.
The exercise price and number of ordinary shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a
share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of ordinary shares at a price below its exercise
price. Additionally, in no event will the Company be required to net cash settle the Public 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 Public Warrants will not receive any of such funds with respect to their Public Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such Public Warrants.
Accordingly, the Public Warrants may expire worthless.
In addition, if (x) the Company issues additional Class A ordinary shares 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 ordinary share (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 its Class
A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its
Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the 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, $18.00 per share redemption trigger price 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 will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price.
At September 30, 2021, there are 7,400,000 Private Placement Warrants outstanding. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial
Public Offering, except that the Private Placement Warrants and the Class A ordinary shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after 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, except as described above, 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.
|
STOCKHOLDERS' EQUITY |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
STOCKHOLDERS' EQUITY [Abstract] | |
STOCKHOLDERS' EQUITY |
NOTE 9. STOCKHOLDERS’ EQUITY
Preferred Stock — The Company is authorized to issue 1,000,000 shares of $0.001 par value preferred stock. At
September 30, 2021, there were no shares of preferred stock issued or outstanding.
Class A Common Stock — The Company is authorized to issue 85,000,000 shares of Class A common stock with a par value of $0.001
per share. Holders of Class A common stock are entitled to one vote for each share. At September 30, 2021, there were 25,000,000 shares of Class A common stock issued and outstanding which are subject to possible redemption and are presented as temporary equity.
Class B Common Stock — The Company is authorized to issue up to 15,000,000 shares of Class B, $0.001 par value common stock.
Holders of the Company’s common stock are entitled to one vote for each share. At September
30, 2021, there were 6,250,000 shares of Class B common stock issued and outstanding.
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 at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or
deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which the shares of Class B common stock will convert into shares of Class A common stock will be
adjusted (unless the holders of a majority of the issued and outstanding shares of our Class B common stock agree to waive such anti-dilution adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A
common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20%
of the sum of all shares of common stock issued and outstanding upon the completion of the Initial Public Offering, plus all shares of our Class A common stock and equity-linked securities issued or deemed issued in connection with a Business
Combination, excluding any shares or equity-linked securities issued, or to be issued, to any seller in our a Business Combination.
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FAIR VALUE MEASUREMENTS |
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FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
NOTE 10. FAIR VALUE MEASUREMENTS
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring
basis at September 30, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
The Warrants were accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities in the
accompanying balance sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within the statements of operations.
The Private Warrants were valued using a binomial lattice model, which is considered to be a Level 3 fair value measurement. The
binomial lattice model’s primary unobservable input utilized in determining the fair value of the Warrants is the expected volatility of the common stock. The expected volatility as of the Initial Public Offering date was derived from observable
public warrant pricing on comparable ‘blank-check’ companies without an identified target. For periods subsequent to the detachment of the Public Warrants from the Units on August 10, 2021, the close price of the Public Warrant price will be used
as the fair value as of each relevant date.
The following table provides quantitative information regarding Level 3 fair value measurements:
The following table presents the changes in the fair value of Level 3 warrant liabilities:
Transfers to/from Levels 1, 2 and 3 are recognized at the end of the reporting period in which a change in valuation technique or
methodology occurs. During the three months ended September 30, 2021, the Public Warrants transferred from a Level 3 measurement to a Level 1 measurement as the Public Warrants were separately listed and traded.
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SUBSEQUENT EVENTS |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS |
NOTE 11. SUBSEQUENT EVENTS
The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the condensed financial statements were
issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed financial statements.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation |
Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain
information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they
do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include
all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.
The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s prospectus for its Initial Public Offering as filed with
the SEC on August 10, 2021, as well as the Company’s Current Report on Form 8-K, as filed with the SEC on August 10, 2021. The interim results for the three months ended September 30, 2021 and for the period from February 4, 2021 (inception)
through September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future periods.
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Use of Estimates |
Use of Estimates
The preparation of the condensed 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 revenues and 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. One of the more significant accounting estimates included in these condensed financial statements is the determination of the fair value of the
warrant liabilities. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those estimates.
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Cash and Cash Equivalents |
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. The Company did not have any cash equivalents as of September 30, 2021.
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Marketable Securities Held in Trust Account |
Marketable Securities Held in Trust Account
At September 30, 2021, substantially all of the assets held in the Trust Account were held in U.S. Treasury Bills. All of the Company’s investments held in the Trust Account are classified
as trading securities. Trading securities are presented on the balance sheet at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments held in the Trust Account are
included in interest earned on marketable securities held in Trust Account in the accompanying condensed statements of operations. The estimated fair values of investments held in Trust Account are determined using available market information.
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Class A Common Stock Subject to Possible Redemption |
Class A Common Stock Subject to Possible Redemption
The Company accounts for its Class A common stock subject to possible redemption
in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption is classified as a liability instrument and is
measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely
within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of
the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the
stockholders’ equity section of the Company’s condensed balance sheets.
The Company recognizes changes in redemption value immediately as they occur and
adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid in
capital and accumulated deficit.
At September 30, 2021, the Class A common stock reflected in the condensed
consolidated balance sheet are reconciled in the following table:
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Offering Costs |
Offering Costs
Offering costs consist of underwriting, legal, accounting
and other expenses incurred through the Initial Public Offering that are directly related to the Initial Public Offering. Offering costs are allocated to the separable financial instruments issued in the Initial Public Offering based on a
relative fair value basis, compared to total proceeds received. Offering costs associated with derivative warrant liabilities are expensed as incurred, presented as non-operating expenses in the statements of operations. Offering costs
associated with the Class A common stock issued were initially charged to temporary equity and then accreted to common stock subject to redemption upon the completion of the Initial Public Offering. Offering costs amounted to $14,262,365, of which $13,600,399 were
charged to stockholders’ equity upon the completion of the Initial Public Offering and $661,966 were expensed to the statements of
operations. Offering costs related to the Founder Shares amounted to $8,762,500, of which $8,140,989 were charged to stockholders’ equity upon the completion of the Initial Public Offering
and $621,511 were expensed to the statements of operations and included in transaction costs attributable to warrant liabilities.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrant Liabilities |
Warrant Liabilities
The Company accounts for the Public Warrants (as defined in Note 4) and the Private Placement Warrants (collectively, with the Public Warrants, the “Warrants”) in accordance with the guidance contained in ASC 815-40 under which the
Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjusts the Warrants to fair value at each reporting period.
This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the statements of operations. The Warrants for periods where no observable traded price was available are
valued using a binomial/lattice model. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price will be used as the fair value as of each relevant date.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
Income Taxes
The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to
financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible
amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to
be realized.
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, if any, as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and
penalties as of September 30, 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 |
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 ordinary shares and Class B ordinary shares. Income and losses are shared pro rata between the two classes of shares. Net
income (loss) per ordinary share is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding for the period. Remeasurement associated with the redeemable Class A ordinary shares is excluded from
income (loss) per ordinary share as the redemption value approximates fair value.
The calculation of diluted income (loss) per share does
not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the warrants exceeded the fair value per common share. The warrants are exercisable to
purchase 19,900,000 shares of Class A common stock in the aggregate. As of September 30, 2021, the Company did not have any
dilutive securities or other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company. As a result, diluted net income (loss) per common share is the same as basic net
income (loss) per common share for the periods presented.
The following table reflects the calculation of basic and diluted net income
(loss) per common share (in dollars, except per share amounts):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentration of Credit Risk |
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times may
exceed the Federal Depository Insurance Corporation coverage limit 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 |
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 accompanying balance sheet, primarily due to their short-term nature, except for
the warrant liabilities (see Note 10).
|
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Derivative Financial Instruments |
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”. Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the statements of
operations. Derivative assets and liabilities are classified in 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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements |
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. The Company is currently assessing the impact, if any,
that ASU 2020-06 would have on its financial position, results of operations or cash flows.
Management does not believe that any other recently issued, but not yet effective, accounting standards, if currently
adopted, would have a material effect on the Company’s financial statements.
|
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of Revision on Financial Statements |
The impact of the restatement on the Company’s financial statements is reflected in the following table.
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A ordinary shares subject to possible redemption |
At September 30, 2021, the Class A common stock reflected in the condensed
consolidated balance sheet are reconciled in the following table:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Net Income (Loss) per Common Share |
The following table reflects the calculation of basic and diluted net income
(loss) per common share (in dollars, except per share amounts):
|
FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis |
The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring
basis at September 30, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:
|
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Level 3 Fair Value Measurements |
The following table provides quantitative information regarding Level 3 fair value measurements:
|
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Changes in Fair Value of Level 3 Warrant Liabilities |
The following table presents the changes in the fair value of Level 3 warrant liabilities:
|
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details) - USD ($) |
8 Months Ended | |
---|---|---|
Aug. 10, 2021 |
Sep. 30, 2021 |
|
Description of Organization and Business Operations [Abstract] | ||
Gross proceeds from initial public offering | $ 245,000,000 | |
Gross proceeds from private placement | 7,400,000 | |
Cash deposited in Trust Account | $ 250,000,000 | $ 250,000,000 |
Cash deposited in Trust Account per Unit (in dollars per share) | $ 10.00 | |
Percentage of fair market value held in Trust Account | 80.00% | |
Percentage of outstanding voting securities for post-transaction company to acquire or own in order to complete business combination | 50.00% | |
Net tangible asset threshold for redeeming Public Shares | $ 5,000,001 | |
Percentage of Public Shares that would not be redeemed if Business Combination is not completed within Initial Combination Period | 100.00% | |
Period to redeem Public Shares if Business Combination is not completed within Initial Combination Period | 10 days | |
Cash not held in Trust Account available for working capital | $ 1,166,467 | |
Minimum [Member] | ||
Description of Organization and Business Operations [Abstract] | ||
Percentage of Public Shares that can be redeemed without prior consent | 20.00% | |
Period to complete Business Combination from closing of Initial Public Offering | 18 months | |
Maximum [Member] | ||
Description of Organization and Business Operations [Abstract] | ||
Interest from Trust Account that can be held to pay dissolution expenses | $ 100,000 | |
Distribution or redemption price per share (in dollars per share) | $ 10.00 | |
Initial Public Offering [Member] | ||
Description of Organization and Business Operations [Abstract] | ||
Units issued (in shares) | 2,490,000 | |
Share price (in dollars per share) | $ 10.00 | |
Gross proceeds from initial public offering | $ 250,000,000 | |
Transaction costs | 14,262,365 | |
Underwriting fees | 5,000,000 | |
Deferred underwriting fees | 8,750,000 | |
Other offering cost | $ 512,365 | |
Initial Public Offering [Member] | Public Shares [Member] | ||
Description of Organization and Business Operations [Abstract] | ||
Units issued (in shares) | 25,000,000 | |
Share price (in dollars per share) | $ 10.00 | |
Gross proceeds from initial public offering | $ 250,000,000 | |
Private Placement [Member] | Private Placement Warrants [Member] | ||
Description of Organization and Business Operations [Abstract] | ||
Share price (in dollars per share) | $ 1.00 | |
Warrants issued (in shares) | 7,400,000 | |
Gross proceeds from private placement | $ 7,400,000 |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details) - USD ($) |
Sep. 30, 2021 |
Aug. 10, 2021 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Feb. 03, 2021 |
---|---|---|---|---|---|
Balance Sheet [Abstract] | |||||
Net tangible asset threshold for redeeming Public Shares | $ 5,000,001 | ||||
Class A common stock subject to possible redemption | 250,000,000 | $ 250,000,000 | |||
Additional paid-in capital | 0 | 0 | |||
Accumulated Deficit | (20,305,965) | (25,110,091) | |||
Total Stockholders' Equity (Deficit) | (20,299,715) | (25,102,903) | $ 16,587 | $ 16,524 | $ 0 |
Class A Common Stock [Member] | |||||
Balance Sheet [Abstract] | |||||
Class A common stock | $ 0 | 0 | |||
As Previously Reported [Member] | |||||
Balance Sheet [Abstract] | |||||
Class A common stock subject to possible redemption | 219,879,090 | ||||
Additional paid-in capital | 6,281,824 | ||||
Accumulated Deficit | (1,292,015) | ||||
Total Stockholders' Equity (Deficit) | 5,000,007 | ||||
As Previously Reported [Member] | Class A Common Stock [Member] | |||||
Balance Sheet [Abstract] | |||||
Class A common stock | 3,010 | ||||
Adjustments [Member] | |||||
Balance Sheet [Abstract] | |||||
Class A common stock subject to possible redemption | 30,102,910 | ||||
Additional paid-in capital | (6,281,824) | ||||
Accumulated Deficit | (23,818,076) | ||||
Total Stockholders' Equity (Deficit) | (30,102,910) | ||||
Adjustments [Member] | Class A Common Stock [Member] | |||||
Balance Sheet [Abstract] | |||||
Class A common stock | $ (3,010) |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Cash and Cash Equivalents (Details) |
Sep. 30, 2021
USD ($)
|
---|---|
Cash and Cash Equivalents [Abstract] | |
Cash equivalents | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Class A ordinary shares subject to possible redemption (Details) - USD ($) |
8 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Aug. 10, 2021 |
|
Class A Ordinary Shares Subject To Possible Redemption [Abstract] | ||
Gross proceeds | $ 245,000,000 | |
Class A ordinary shares issuance costs | (512,365) | |
Class A ordinary shares subject to possible redemption | 250,000,000 | $ 250,000,000 |
Initial Public Offering [Member] | ||
Class A Ordinary Shares Subject To Possible Redemption [Abstract] | ||
Gross proceeds | 250,000,000 | |
Plus: Accretion of carrying value to redemption value | 23,835,888 | |
Initial Public Offering [Member] | Public Warrants [Member] | ||
Class A Ordinary Shares Subject To Possible Redemption [Abstract] | ||
Less: Proceeds allocated to Public Warrants | (11,375,000) | |
Initial Public Offering [Member] | Class A Common Stock [Member] | ||
Class A Ordinary Shares Subject To Possible Redemption [Abstract] | ||
Class A ordinary shares issuance costs | (12,460,888) | |
Class A ordinary shares subject to possible redemption | $ 250,000,000 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Offering Costs (Details) - Initial Public Offering [Member] |
8 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Offering Costs [Abstract] | |
Offering costs | $ 14,262,365 |
Offering cost charged to shareholder equity | 13,600,399 |
Offering cost expensed to statement of operations | 661,966 |
Sponsor [Member] | |
Offering Costs [Abstract] | |
Offering costs | 8,762,500 |
Offering cost charged to shareholder equity | 8,140,989 |
Offering cost expensed to statement of operations | $ 621,511 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Income Taxes (Details) |
Sep. 30, 2021
USD ($)
|
---|---|
Income Taxes [Abstract] | |
Unrecognized tax benefits | $ 0 |
Accrued interest and penalties | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Net Loss Per Common Share (Details) |
3 Months Ended | 8 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2021
USD ($)
$ / shares
shares
|
Sep. 30, 2021
USD ($)
$ / shares
shares
|
|||||
Class A Common Stock [Member] | ||||||
Net Income (Loss) Per Common Share [Abstract] | ||||||
Warrants exercisable to purchase of aggregate class A common stock (in shares) | 19,900,000 | 19,900,000 | ||||
Numerator: [Abstract] | ||||||
Allocation of net income (loss), as adjusted | $ | $ 2,433,883 | $ 1,690,565 | ||||
Denominator: [Abstract] | ||||||
Basic weighted average shares outstanding (in shares) | 14,010,989 | 5,803,571 | ||||
Basic net income per common share (in dollars per share) | $ / shares | $ 0.17 | $ 0.29 | ||||
Diluted weighted average shares outstanding (in shares) | 14,010,989 | 5,803,571 | ||||
Diluted net income per common share (in dollars per share) | $ / shares | $ 0.17 | $ 0.29 | ||||
Class B Common Stock [Member] | ||||||
Numerator: [Abstract] | ||||||
Allocation of net income (loss), as adjusted | $ | $ 1,085,703 | $ 1,820,608 | ||||
Denominator: [Abstract] | ||||||
Basic weighted average shares outstanding (in shares) | 6,250,000 | [1] | 6,250,000 | [1] | ||
Basic net income per common share (in dollars per share) | $ / shares | $ 0.17 | $ 0.29 | ||||
Diluted weighted average shares outstanding (in shares) | 6,250,000 | [1] | 6,250,000 | [1] | ||
Diluted net income per common share (in dollars per share) | $ / shares | $ 0.17 | $ 0.29 | ||||
|
INITIAL PUBLIC OFFERING (Details) - Initial Public Offering [Member] |
Aug. 10, 2021
$ / shares
shares
|
---|---|
Initial Public Offering [Abstract] | |
Units issued (in shares) | 2,490,000 |
Share price (in dollars per share) | $ / shares | $ 10.00 |
Public Shares [Member] | |
Initial Public Offering [Abstract] | |
Units issued (in shares) | 25,000,000 |
Share price (in dollars per share) | $ / shares | $ 10.00 |
Public Warrants [Member] | |
Initial Public Offering [Abstract] | |
Number of securities called by each unit (in shares) | 0.50 |
Warrants exercise price (In dollars per share) | $ / shares | $ 11.50 |
Class A Common Stock [Member] | |
Initial Public Offering [Abstract] | |
Number of securities called by each unit (in shares) | 1 |
Number of securities called by each warrant (in shares) | 1 |
PRIVATE PLACEMENT (Details) - Private Placement [Member] - Private Placement Warrants [Member] |
Aug. 10, 2021
USD ($)
$ / shares
shares
|
---|---|
Private Placement [Abstract] | |
Warrants issued (in shares) | shares | 7,400,000 |
Share price (in dollars per share) | $ / shares | $ 1.00 |
Gross proceeds from issuance of warrants | $ | $ 7,400,000 |
Class A Common Stock [Member] | |
Private Placement [Abstract] | |
Number of securities called by each warrant (in shares) | shares | 1 |
Exercise price of warrant (in dollars per share) | $ / shares | $ 11.50 |
RELATED PARTY TRANSACTIONS, Founder Shares (Details) - USD ($) |
8 Months Ended | ||||
---|---|---|---|---|---|
Apr. 07, 2021 |
Feb. 18, 2021 |
Sep. 30, 2021 |
Sep. 24, 2021 |
Aug. 10, 2021 |
|
Founder Shares [Abstract] | |||||
Proceeds from issuance of common stock | $ 25,000 | ||||
Class A Common Stock [Member] | |||||
Founder Shares [Abstract] | |||||
Common stock, shares outstanding (in shares) | 0 | ||||
Class B Common Stock [Member] | |||||
Founder Shares [Abstract] | |||||
Common stock, shares outstanding (in shares) | 6,250,000 | ||||
Common stock, shares forfeited (in shares) | 937,500 | ||||
Initial Public Offering [Member] | |||||
Founder Shares [Abstract] | |||||
Original purchase price (in dollars per share) | $ 10.00 | ||||
Offering costs | $ 14,262,365 | ||||
Offering cost charged to shareholder equity | 13,600,399 | ||||
Offering cost expensed to statement of operations | $ 661,966 | ||||
Over-Allotment Option [Member] | |||||
Founder Shares [Abstract] | |||||
Number of shares subject to forfeiture (in shares) | 937,500 | ||||
Original purchase price (in dollars per share) | $ 10.00 | ||||
Sponsor [Member] | |||||
Founder Shares [Abstract] | |||||
Common stock dividends (in shares) | 1,437,500 | ||||
Common stock, shares outstanding (in shares) | 7,187,500 | ||||
Holding period for transfer, assignment or sale of Founder Shares | 1 year | ||||
Sponsor [Member] | Class A Common Stock [Member] | |||||
Founder Shares [Abstract] | |||||
Threshold trading days | 20 days | ||||
Threshold consecutive trading days | 30 days | ||||
Sponsor [Member] | Class A Common Stock [Member] | Minimum [Member] | |||||
Founder Shares [Abstract] | |||||
Share price (in dollars per share) | $ 12.00 | ||||
Period after initial business combination | 150 days | ||||
Sponsor [Member] | Class B Common Stock [Member] | |||||
Founder Shares [Abstract] | |||||
Issuance of Class B common stock to Sponsor (in shares) | 5,750,000 | ||||
Proceeds from issuance of common stock | $ 25,000 | ||||
Sponsor [Member] | Class B Common Stock [Member] | Maximum [Member] | |||||
Founder Shares [Abstract] | |||||
Number of shares subject to forfeiture (in shares) | 937,500 | ||||
Sponsor [Member] | Initial Public Offering [Member] | |||||
Founder Shares [Abstract] | |||||
Share price (in dollars per share) | $ 7.01 | ||||
Issuance of founder shares to Anchor Investor (in shares) | 125,000 | ||||
Original purchase price (in dollars per share) | $ 10.00 | ||||
Aggregate fair value of shares issued to Anchor Investors | $ 8,762,500 | ||||
Offering costs | 8,762,500 | ||||
Offering cost charged to shareholder equity | 8,140,989 | ||||
Offering cost expensed to statement of operations | $ 621,511 | ||||
Sponsor [Member] | Over-Allotment Option [Member] | |||||
Founder Shares [Abstract] | |||||
Common stock, shares outstanding (in shares) | 6,250,000 | ||||
Common stock, shares forfeited (in shares) | 937,500 |
RELATED PARTY TRANSACTIONS, Administrative Support Agreement (Details) - Sponsor [Member] - Administrative Services Agreement [Member] |
8 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Administrative Support Agreement [Abstract] | |
Fee incurred | $ 10,000 |
Accrued administrative service expenses | 5,000 |
Maximum [Member] | |
Administrative Support Agreement [Abstract] | |
Related party transaction amount | $ 5,000 |
RELATED PARTY TRANSACTIONS, Promissory Note (Details) - USD ($) |
8 Months Ended | |||
---|---|---|---|---|
Aug. 23, 2021 |
Sep. 30, 2021 |
Aug. 10, 2021 |
Feb. 18, 2021 |
|
Promissory Note [Abstract] | ||||
Repayment of promissory note amount outstanding | $ 181,341 | |||
Sponsor [Member] | Promissory Note [Member] | ||||
Promissory Note [Abstract] | ||||
Promissory note, amount outstanding | $ 181,341 | |||
Repayment of promissory note amount outstanding | $ 181,341 | |||
Sponsor [Member] | Promissory Note [Member] | Maximum [Member] | ||||
Promissory Note [Abstract] | ||||
Promissory note, maximum borrowing capacity | $ 300,000 |
RELATED PARTY TRANSACTIONS, Related Party Loans (Details) - Sponsor, Affiliate of Sponsor, or Certain Company Officers and Directors [Member] - Working Capital Loans [Member] |
Sep. 30, 2021
USD ($)
$ / shares
|
---|---|
Related Party Loans [Abstract] | |
Loans that can be converted into Warrants at lenders' discretion | $ 1,500,000 |
Conversion price (in dollars per share) | $ / shares | $ 1.00 |
Notes payable, related parties | $ 0 |
COMMITMENTS, Registration Rights and Warrant Amendments (Details) |
Sep. 30, 2021
Demand
|
---|---|
Registration, Warrant Amendments and Shareholder Rights Agreement [Abstract] | |
Number of demands entitled to holders | 3 |
Minimum percentage of outstanding warrant holders required to approve amendment | 65.00% |
COMMITMENTS, Underwriting Agreement (Details) |
Aug. 10, 2021
USD ($)
$ / shares
shares
|
---|---|
Underwriting Agreement [Abstract] | |
Underwriting discount (in dollars per share) | $ / shares | $ 0.35 |
Deferred underwriting commissions | $ | $ 8,750,000 |
Over-Allotment Option [Member] | |
Underwriting Agreement [Abstract] | |
Term of option for underwriters to purchase additional Units to cover over-allotments | 45 days |
Additional Units that can be purchased to cover over-allotments (in shares) | shares | 3,750,000 |
Number of shares subject to forfeiture (in shares) | shares | 937,500 |
Share price (in dollars per share) | $ / shares | $ 10.00 |
WARRANT LIABILITIES (Details) |
8 Months Ended |
---|---|
Sep. 30, 2021
$ / shares
shares
| |
Warrants [Abstract] | |
Period to exercise warrants after Business Combination | 30 days |
Period to exercise warrants after closing of Initial Public Offering | 12 months |
Expiration period of warrants | 5 years |
Period to file registration statement after initial Business Combination | 15 days |
Period for registration statement to become effective | 60 days |
Threshold trigger price for redemption of warrants (in dollars per share) | $ 10.00 |
Public Warrants [Member] | |
Warrants [Abstract] | |
Warrants outstanding (in shares) | shares | 12,500,000 |
Warrant redemption price (in dollars per share) | $ 0.01 |
Notice period to redeem warrants | 30 days |
Threshold trading days | 20 days |
Threshold consecutive trading days | 30 days |
Redemption period | 30 days |
Percentage multiplier | 180.00% |
Private Placement Warrants [Member] | |
Warrants [Abstract] | |
Warrants outstanding (in shares) | shares | 7,400,000 |
Expiration period of warrants | 5 years |
Class A Common Stock [Member] | |
Warrants [Abstract] | |
Period to file registration statement after initial Business Combination | 20 days |
Trading day period to calculate volume weighted average trading price | 20 days |
Class A Common Stock [Member] | Public Warrants [Member] | |
Warrants [Abstract] | |
Share price (in dollars per share) | $ 18.00 |
Additional Issue of Ordinary Shares or Equity-Linked Securities [Member] | |
Warrants [Abstract] | |
Warrant redemption price (in dollars per share) | $ 18.00 |
Percentage multiplier | 115.00% |
Additional Issue of Ordinary Shares or Equity-Linked Securities [Member] | Minimum [Member] | |
Warrants [Abstract] | |
Aggregate gross proceeds from issuance as a percentage of total equity proceeds | 60.00% |
Additional Issue of Ordinary Shares or Equity-Linked Securities [Member] | Class A Common Stock [Member] | Maximum [Member] | |
Warrants [Abstract] | |
Share price (in dollars per share) | $ 9.20 |
STOCKHOLDERS' EQUITY (Details) |
8 Months Ended |
---|---|
Sep. 30, 2021
Vote
$ / shares
shares
| |
Stockholder's Equity [Abstract] | |
Preferred stock, shares authorized (in shares) | 1,000,000 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Preferred stock, shares issued (in shares) | 0 |
Preferred stock, shares outstanding (in shares) | 0 |
Stock conversion basis of Class B to Class A ordinary shares at time of initial business combination | 1 |
As-converted percentage for Class A ordinary shares after conversion of Class B shares | 20.00% |
Class A Common Stock [Member] | |
Stockholder's Equity [Abstract] | |
Common stock, subject to possible redemption, shares authorized (in shares) | 85,000,000 |
Common stock, subject to possible redemption, par value (in dollars per share) | $ / shares | $ 0.001 |
Common stock, subject to possible redemption, shares issued (in shares) | 25,000,000 |
Common stock, subject to possible redemption, shares outstanding (in shares) | 25,000,000 |
Common stock, shares authorized (in shares) | 85,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Number of votes per share | Vote | 1 |
Common stock, shares issued (in shares) | 0 |
Common stock, shares outstanding (in shares) | 0 |
Class B Common Stock [Member] | |
Stockholder's Equity [Abstract] | |
Common stock, shares authorized (in shares) | 15,000,000 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 |
Number of votes per share | Vote | 1 |
Common stock, shares issued (in shares) | 6,250,000 |
Common stock, shares outstanding (in shares) | 6,250,000 |
FAIR VALUE MEASUREMENTS, Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring [Member] |
Sep. 30, 2021
USD ($)
|
---|---|
Level 1 [Member] | |
Assets [Abstract] | |
Marketable securities held in Trust Account | $ 250,010,974 |
Level 1 [Member] | Public Warrants [Member] | |
Liabilities [Abstract] | |
Warrant liability | 8,375,000 |
Level 3 [Member] | Private Placement Warrants [Member] | |
Liabilities [Abstract] | |
Warrant liability | $ 4,958,000 |
FAIR VALUE MEASUREMENTS, Level 3 Fair Value Measurement (Details) |
Sep. 30, 2021 |
Aug. 10, 2021 |
---|---|---|
Fair Value Measurements [Abstract] | ||
Expected term | 5 years | |
Public and Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Expected term | 5 years | |
Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Expected term | 5 years | |
Stock Price [Member] | Public and Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 9.44 | |
Stock Price [Member] | Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 9.59 | |
Exercise Price [Member] | Public and Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 11.50 | |
Exercise Price [Member] | Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 11.50 | |
Volatility [Member] | Public and Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 0.169 | |
Volatility [Member] | Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 0.131 | |
Risk-free Rate [Member] | Public and Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 0.0087 | |
Risk-free Rate [Member] | Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 0.0102 | |
Dividend Yield [Member] | Public and Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 0.000 | |
Dividend Yield [Member] | Private Warrants [Member] | ||
Fair Value Measurements [Abstract] | ||
Measurement input | 0.0000 |
FAIR VALUE MEASUREMENTS, Changes in Fair Value of Level 3 Warrant Liabilities (Details) |
8 Months Ended |
---|---|
Sep. 30, 2021
USD ($)
| |
Changes in Fair Value of Level 3 Warrant Liabilities [Roll Forward] | |
Fair value, beginning of period | $ 0 |
Initial measurement | 18,257,000 |
Change in valuation inputs or other assumptions | (4,924,000) |
Transfer to Level 1 | (7,875,000) |
Fair value, end of period | 4,958,000 |
Private Placement [Member] | |
Changes in Fair Value of Level 3 Warrant Liabilities [Roll Forward] | |
Fair value, beginning of period | 0 |
Initial measurement | 6,882,000 |
Change in valuation inputs or other assumptions | (1,924,000) |
Transfer to Level 1 | 0 |
Fair value, end of period | 4,958,000 |
Public [Member] | |
Changes in Fair Value of Level 3 Warrant Liabilities [Roll Forward] | |
Fair value, beginning of period | 0 |
Initial measurement | 11,375,000 |
Change in valuation inputs or other assumptions | (3,000,000) |
Transfer to Level 1 | (7,875,000) |
Fair value, end of period | $ 0 |
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