| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2. 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 Securities and Exchange Commission (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 comprehensive 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 Annual Report on Form 10-K
for the year ended December 31, 2017 as filed with the SEC on February 21, 2018, which contains the audited financial statements
and notes thereto, together with Management’s Discussion and Analysis. The financial information as of December 31, 2017
is derived from the audited financial statements presented in the Company’s Annual Report on Form 10-K for the year December
31, 2017. The interim results for the six months ended June 30, 2018 are not necessarily indicative of the results to be expected
for the year ending December 31, 2018 or for any future interim periods. Use
of estimates The
preparation of financial statements in conformity with GAAP requires 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 events. Accordingly, the actual results could
differ significantly from those estimates. Recent accounting pronouncements Management does not believe that any recently issued, but not yet effective, accounting pronouncements,
if currently adopted, would have a material effect on the Company's financial statements. Net
loss per share Net
loss per share is computed by dividing net loss by the weighted average number of ordinary shares outstanding during the period.
The Company applies the two-class method in calculating earnings per share. Ordinary shares subject to possible redemption at
June 30, 2018 and 2017, which are not currently redeemable and are not redeemable at fair value, have been excluded from the calculation
of basic loss per share since such shares, if redeemed, only participate in their pro rata share of the Trust Account earnings.
The Company has not considered the effect of (1) warrants sold in the Initial Public Offering and private placement to purchase
3,234,781 ordinary shares, (2) rights sold in the Initial Public Offering and private placement that convert into 646,957 ordinary
shares, and (3) 157,500 ordinary shares, warrants to purchase 78,750 ordinary shares and rights that convert into 15,750 ordinary
shares in the unit purchase option sold to the underwriter, in the calculation of diluted loss per share, since the exercise of
the warrants and the conversion of the rights into ordinary shares is contingent upon the occurrence of future events. As a result,
diluted loss per share is the same as basic loss per share for the periods presented. Reconciliation
of Net Loss per Ordinary Share The
Company’s net income (loss) is adjusted for the portion of income that is attributable to ordinary shares subject to redemption,
as these shares only participate in the income of the Trust Account and not the losses of the Company. Accordingly, basic and
diluted loss per ordinary share is calculated as follows:
Three Months Ended Six Months Ended
2018 2017 2018 2017
Net income (loss) $ 67,343 $ (31,682 ) $ 142,777 $ (31,755 )
Less: Loss (income) attributable to ordinary shares subject to redemption (235,750 ) 10,064 (420,731 ) 10,064
Adjusted net loss (168,407 ) (21,618 ) (277,954 ) (21,691 )
Weighted average shares outstanding, basic and diluted 2,416,117 1,380,825 2,410,805 1,346,851
Basic and diluted net loss per ordinary share $ (0.07 ) $ (0.02 ) $ (0.12 ) $ (0.02 ) |
