Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 17, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | East Stone Acquisition Corporation | |
Trading Symbol | ESSC | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 7,168,244 | |
Amendment Flag | false | |
Entity Central Index Key | 0001760683 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | true | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-39233 | |
Entity Incorporation, State or Country Code | D8 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 2 Burlington Woods Drive | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Burlington, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01803 | |
City Area Code | (781) | |
Local Phone Number | 202-9128 | |
Title of 12(b) Security | Ordinary Shares, no par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash | $ 3,719 | $ 38,585 |
Prepaid expenses | 99,708 | 25,750 |
Total current assets | 103,427 | 64,335 |
Investments held in trust account | 33,541,649 | 33,504,825 |
TOTAL ASSETS | 33,645,076 | 33,569,160 |
Current Liabilities | ||
Accrued expenses | 1,813,796 | 1,507,691 |
Promissory note payable to shareholders | 471,459 | 350,000 |
Promissory note payable | 200,000 | 200,000 |
Promissory note payable to ICONIQ | 568,000 | |
Extension loan | 2,760,000 | 2,760,000 |
Total current liabilities | 5,813,255 | 4,817,691 |
Deferred underwriting commission | 402,500 | 402,500 |
Derivative warrant liabilities | 3,578,000 | 3,008,000 |
Derivative liabilities of forward share purchase, an option to sell 2,923,974 redeemable ordinary shares, no par value, at December 31, 2021 | 2,069,000 | |
TOTAL LIABILITIES | 9,793,755 | 10,297,191 |
Commitments and Contingencies | ||
Ordinary shares subject to possible redemption, no par value, 3,264,744 and 3,265,105 at June 30, 2022 and December 31, 2021, at redemption value of approximately $10.27 and $10.26 per share, respectively | 33,541,649 | 33,499,977 |
Shareholders’ Deficit | ||
Class A, B, C, D, and E Preferred Shares, no par value; unlimited shares authorized, none issued and outstanding | ||
Ordinary shares, no par value; unlimited shares authorized; 3,903,500 shares issued and outstanding (excluding 3,264,744 and 3,265,105 shares subject to redemption) at June 30, 2022 and December 31, 2021, respectively | 3,838,301 | 3,838,301 |
Accumulated deficit | (13,528,629) | (14,066,309) |
Total Shareholders’ Deficit | (9,690,328) | (10,228,008) |
TOTAL LIABILITIES, ORDINARY SHARES SUBJECTION TO POSSIBLE REDEMPTION AND SHAREHOLDERS’ DEFICIT | $ 33,645,076 | $ 33,569,160 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Option to sell redeemable ordinary shares | 2,923,974 | |
Redeemable ordinary shares, par value (in Dollars per share) | ||
Ordinary shares subject to possible redemption, no par value (in Dollars per share) | ||
Ordinary shares subject to possible redemption, share | 3,264,744 | 3,265,105 |
Ordinary shares subject to possible redemption, per share (in Dollars) | $ 10.27 | $ 10.26 |
Ordinary shares, no par value (in Dollars per share) | ||
Ordinary shares, shares authorized | Unlimited | Unlimited |
Ordinary shares, shares issued | 3,903,500 | 3,903,500 |
Ordinary shares, shares outstanding | 3,903,500 | 3,903,500 |
Preferred Class A | ||
Preferred shares, no par value (in Dollars per share) | ||
Preferred shares, shares authorized | Unlimited | Unlimited |
Preferred shares, shares issued | ||
Preferred shares, shares outstanding | ||
Preferred Class B | ||
Preferred shares, no par value (in Dollars per share) | ||
Preferred shares, shares authorized | Unlimited | Unlimited |
Preferred shares, shares issued | ||
Preferred shares, shares outstanding | ||
Preferred Class C | ||
Preferred shares, no par value (in Dollars per share) | ||
Preferred shares, shares authorized | Unlimited | Unlimited |
Preferred shares, shares issued | ||
Preferred shares, shares outstanding | ||
Preferred Class D | ||
Preferred shares, no par value (in Dollars per share) | ||
Preferred shares, shares authorized | Unlimited | Unlimited |
Preferred shares, shares issued | ||
Preferred shares, shares outstanding | ||
Preferred Class E | ||
Preferred shares, no par value (in Dollars per share) | ||
Preferred shares, shares authorized | Unlimited | Unlimited |
Preferred shares, shares issued | ||
Preferred shares, shares outstanding |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating costs | $ 553,983 | $ 966,456 | $ 956,470 | $ 1,076,393 |
Loss from operations | (553,983) | (966,456) | (956,470) | (1,076,393) |
Other income: | ||||
Change in fair value of derivative warrant liabilities | (1,019,000) | 18,900 | (570,000) | 35,600 |
Extension incentive paid by Founder Shares transferred | (1,900,800) | |||
Change in fair value of Forward Purchase Agreement | 2,069,000 | |||
Interest earned on investments held in the trust account | 38,374 | 3,479 | 40,526 | 6,902 |
Total Other income, net | (980,626) | 22,379 | (361,274) | 42,502 |
Net loss | $ (1,534,609) | $ (944,077) | $ (1,317,744) | $ (1,033,891) |
Redeemable Ordinary Shares | ||||
Other income: | ||||
Weighted average shares outstanding (in Shares) | 3,264,744 | 13,800,000 | 3,264,856 | 13,800,000 |
Basic and diluted net loss per share (in Dollars per share) | $ (0.21) | $ (0.05) | $ (0.18) | $ (0.06) |
Non-Redeemable Ordinary Shares | ||||
Other income: | ||||
Weighted average shares outstanding (in Shares) | 3,903,500 | 3,903,500 | 3,903,500 | 3,903,500 |
Basic and diluted net loss per share (in Dollars per share) | $ (0.21) | $ (0.05) | $ (0.18) | $ (0.06) |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Operations (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Redeemable Ordinary Shares | ||||
Weighted average shares outstanding, diluted | 3,264,744 | 13,800,000 | 3,264,856 | 13,800,000 |
Diluted net loss per share | $ (0.21) | $ (0.05) | $ (0.18) | $ (0.06) |
Non-Redeemable Ordinary Shares | ||||
Weighted average shares outstanding, diluted | 3,903,500 | 3,903,500 | 3,903,500 | 3,903,500 |
Diluted net loss per share | $ (0.21) | $ (0.05) | $ (0.18) | $ (0.06) |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Changes in Shareholders’ Deficit - USD ($) | Ordinary Shares | Accumulated Deficit | Total |
Balance at Dec. 31, 2020 | $ 3,838,301 | $ (5,587,242) | $ (1,748,941) |
Balance (in Shares) at Dec. 31, 2020 | 3,903,500 | ||
Net income (loss) | (89,814) | (89,814) | |
Balance at Mar. 31, 2021 | $ 3,838,301 | (5,677,056) | (1,838,755) |
Balance (in Shares) at Mar. 31, 2021 | 3,903,500 | ||
Balance at Dec. 31, 2020 | $ 3,838,301 | (5,587,242) | (1,748,941) |
Balance (in Shares) at Dec. 31, 2020 | 3,903,500 | ||
Net income (loss) | (1,033,891) | ||
Balance at Jun. 30, 2021 | $ 3,838,301 | (6,621,133) | (2,782,832) |
Balance (in Shares) at Jun. 30, 2021 | 3,903,500 | ||
Balance at Mar. 31, 2021 | $ 3,838,301 | (5,677,056) | (1,838,755) |
Balance (in Shares) at Mar. 31, 2021 | 3,903,500 | ||
Net income (loss) | (944,077) | (944,077) | |
Balance at Jun. 30, 2021 | $ 3,838,301 | (6,621,133) | (2,782,832) |
Balance (in Shares) at Jun. 30, 2021 | 3,903,500 | ||
Balance at Dec. 31, 2021 | $ 3,838,301 | (14,066,309) | (10,228,008) |
Balance (in Shares) at Dec. 31, 2021 | 3,903,500 | ||
Net income (loss) | 216,865 | 216,865 | |
Ordinary Shares – Fair value of Founder shares transferred by Sponsor for extension | 1,900,800 | 1,900,800 | |
Balance at Mar. 31, 2022 | $ 3,838,301 | (11,948,644) | (8,110,343) |
Balance (in Shares) at Mar. 31, 2022 | 3,903,500 | ||
Balance at Dec. 31, 2021 | $ 3,838,301 | (14,066,309) | (10,228,008) |
Balance (in Shares) at Dec. 31, 2021 | 3,903,500 | ||
Net income (loss) | (1,317,744) | ||
Balance at Jun. 30, 2022 | $ 3,838,301 | (13,528,629) | (9,690,328) |
Balance (in Shares) at Jun. 30, 2022 | 3,903,500 | ||
Balance at Mar. 31, 2022 | $ 3,838,301 | (11,948,644) | (8,110,343) |
Balance (in Shares) at Mar. 31, 2022 | 3,903,500 | ||
Accretion for ordinary shares subject to redemption amount | (45,376) | (45,376) | |
Net income (loss) | (1,534,609) | (1,534,609) | |
Balance at Jun. 30, 2022 | $ 3,838,301 | $ (13,528,629) | $ (9,690,328) |
Balance (in Shares) at Jun. 30, 2022 | 3,903,500 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (1,317,744) | $ (1,033,891) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Change in fair value of derivative warrant liabilities | 570,000 | (35,600) |
Change in fair value of forward purchase agreement | (2,069,000) | |
Extension incentive paid by Founder Shares transferred | 1,900,800 | |
Interest earned on investments held in the trust account | (40,526) | (6,902) |
Changes in operating assets and liabilities: | ||
Advance from related party | (8,598) | |
Accrued expenses | 306,103 | 810,605 |
Prepaid expenses | (73,958) | 67,737 |
Net cash used in operating activities | (724,325) | (206,649) |
Cash Flows from Investing Activities: | ||
Cash Withdrawn from trust account upon redemption of 361 ordinary shares | 3,704 | |
Investment of cash for extension into trust account | (1,380,000) | |
Net cash provided by (used in) investing activities | 3,704 | (1,380,000) |
Cash Flows from Financing Activities: | ||
Proceeds from promissory note | 300,000 | |
Redemption of 361 ordinary shares at redemption value | (3,704) | |
Proceeds from promissory note – Shareholder | 194,283 | |
Repayment of promissory note – Shareholder | (72,824) | |
Proceeds from promissory note - ICONIQ | 568,000 | |
Proceeds from extension loans - related party | 1,380,000 | |
Net cash provided by financing activities | 685,755 | 1,680,000 |
Net Change in Cash | (34,866) | 93,351 |
Cash - Beginning of period | 38,585 | 23,486 |
Cash - End of period | $ 3,719 | $ 116,837 |
Unaudited Condensed Consolida_5
Unaudited Condensed Consolidated Statements of Cash Flows (Parentheticals) - shares | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Withdrawal from trust account ordinary shares | 361 | 361 |
Ordinary shares | 361 | 361 |
Description of Organization and
Description of Organization and Business Operations | 6 Months Ended |
Jun. 30, 2022 | |
Description of Organization and Business Operations [Abstract] | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Organization and General East Stone Acquisition Corporation (“East Stone” or the “Company”) is a blank check company incorporated in the British Virgin Islands on August 9, 2018. The Company was incorporated for the purpose of acquiring, engaging in a share exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual arrangements with, or engaging in any other similar business combination with one or more businesses or entities (the “Business Combination”). Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to focus on businesses primarily operating in the financial services industry or businesses providing technological services to the financial industry, commonly known as “fintech businesses” in the regions of North America and Asia-Pacific. The Company is an emerging growth company and, as such, the Company is subject to all of the risks associated with emerging growth companies. As of June 30, 2022, the Company had not yet commenced any operations. All activity through June 30, 2022 relates to the Company’s formation, the initial public offering (“Initial Public Offering” or “IPO”), which is described below, and since the closing of the IPO, the search for a target for its Business Combination and the potential acquisition, as more fully described below. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates income in the form of interest income from the proceeds derived from the IPO and placed in the trust account (as defined below) as described below. Initial Public Offering The registration statement for the Company’s IPO was declared effective on February 19, 2020 (“Effective Date”). On February 24, 2020, the Company consummated the IPO of 13,800,000 units (the “Units” and, with respect to the ordinary shares underlying the Units sold, the “Public Shares”), including 1,800,000 Units as a result of the underwriters’ full exercise of over-allotment option, generating aggregate gross proceeds to the Company of $138,000,000. Simultaneously with the closing of the IPO, the Company consummated certain private placements of an aggregate of 350,000 Units (the “Private Units”) at $10.00 per Private Unit, generating gross proceeds of $3,500,000. Pursuant to the unit subscription agreements entered into in connection with the private placements, 167,000 Private Units were purchased by the Double Ventures Holdings Limited (“Sponsor”), 108,000 Private Units were purchased by Hua Mao and Cheng Zhao (“anchor investors”) separately and not together, and 75,000 Private Units were purchased by I-Bankers Securities, Inc., the representative of the several underwriters in the IPO (“I-Bankers”). In connection with the Company’s IPO, the Company issued an aggregate of 103,500 ordinary shares of the Company (“Representative’s Shares”) to I-Bankers and its designee, of which 90,562 Representative’s Shares were issued to I-Bankers and 12,938 Representative’s Shares were issued to EarlyBird Capital, Inc. (“EarlyBird”) (see Note 6). At the closing of the IPO, the Company additionally granted to I-Bankers and its designee a total of 690,000 warrants, exercisable at $12.00 per full share (for an aggregate exercise price of $8,280,000) (“Representative’s Warrants”), of which 601,500 Representative’s Warrants were granted to I-Bankers and 88,500 Representative’s Warrants were granted to EarlyBird (see Note 6). Total offering costs amounted to $4,154,255, including value placed on the Representative’s Shares at $1,035,000, but excluding value placed Representative’s Warrants at $1,640,028 which is accounted for as a derivative warrant liability on the Company’s condensed consolidated balance sheets. Of the total $4,154,255 transactions cost, the cash transaction costs amounted to $3,083,255, of which $2,415,000 of underwriting fees, including $402,500 of deferred underwriting fees, payable at the consummation of the Business Combination (as described below), and $668,255 of other offering costs of legal, accounting and other expenses incurred through the IPO that are directly related to the IPO. All of the transaction costs were charged to the equity of the Company upon the completion of the IPO. Trust Account Following the closing of the IPO, a total of $138,000,000 of the net proceeds from the IPO, the sale of the Private Units and the issuance of extension loans totaling $2,760,000 were placed in a trust account (“trust account”), which is invested only in U.S. government treasury bills, notes and bonds with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and which invest solely in U.S. Treasuries. Except for all interest income that may be released to the Company to pay taxes, and up to $50,000 to pay dissolution expenses, none of the funds held in the trust account will be released until the earlier of: (1) the completion of the initial Business Combination within the required time period; (2) the Company’s redemption of 100% of the outstanding Public Shares if the Company has not completed an initial Business Combination in the required time period; and (3) the redemption of any Public Shares properly tendered in connection with a shareholder vote to amend the Company’s Amended and Restated Memorandum and Articles of Association (A) to modify the substance or timing of the Company’s obligation to redeem 100% of the Public Shares if the Company does not complete its initial Business Combination within the required time period or (B) with respect to any other provision relating to shareholders’ rights or pre-Business Combination activity. To mitigate the risk of us being deemed to have been operating as an unregistered investment company (including under the subjective test of Section 3(a)(1)(A) of the Investment Company Act), as of August 1, 2022, the Company had instructed Continental Stock Transfer & Trust Company, the trustee with respect to the trust account, to liquidate the U.S. government treasury obligations or money market funds held in the trust account and thereafter to hold all funds in the trust account in cash until the earlier of consummation of an initial business combination or liquidation. Business Combination Activity The Company’s management has broad discretion with respect to the specific application of the net proceeds of the IPO and the sale of the Private Units, although substantially all of the net proceeds are intended to be applied generally towards consummating a Business Combination. The Company’s initial Business Combination must be 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 at the time the Company signs a definitive agreement in connection with the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to successfully effect a Business Combination. The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 prior to or upon such consummation of a Business Combination and, if the Company seeks shareholder approval, a majority of the outstanding ordinary shares voted are voted in favor of the Business Combination. If a shareholder vote is not required and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Memorandum and Articles of Association, offer to redeem the Public Shares pursuant to the tender offer rules of the Securities and Exchange Commission (“SEC”) and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to consummating a Business Combination. Notwithstanding the foregoing, if the Company seeks shareholder approval of the Business Combination and the Company does not conduct redemptions pursuant to the tender offer rules, the Company’s Amended and Restated Memorandum and Articles of Association provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% of the Public Shares, without the prior consent of the Company. The Sponsor and the other initial shareholders (collectively, “initial shareholders”) have agreed (A) to vote their Founder Shares (as defined in Note 5), Private Shares (as defined in Note 4) and any Public Shares held by them in favor of any proposed initial Business Combination, (B) not to propose any amendment to the Company’s memorandum and articles of association (i) to modify the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete its initial Business Combination within 15 months (or up to 21 months) from the closing of the IPO or (ii) with respect to any other provision relating to shareholders’ rights or pre-initial Business Combination activity, unless the Company provides its public shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding Public Shares, (C) not to redeem any shares (including the Founder Shares and Private Units (and underlying securities) into the right to receive cash from the trust account in connection with a shareholder vote to approve the proposed initial Business Combination (or to sell any shares in a tender offer in connection with a proposed Business Combination if the Company does not seek shareholder approval in connection therewith) or a vote to amend the provisions of the Company’s memorandum and articles of association relating to shareholders’ rights or pre-Business Combination activity and (D) that the Founder Shares and Private Units (and underlying securities) shall not participate in any liquidating distribution upon winding up if a Business Combination is not consummated, until all of the claims of any redeeming shareholders and creditors are fully satisfied (and then only from funds held outside the trust account). The Company had 15 months from the closing of the IPO (or until May 24, 2021) to consummate a Business Combination (“Business Combination Date”). However, if the Company was not able to consummate a Business Combination on or before the Business Combination Date, the Company, by resolutions of the board of the Company, at the request of the initial shareholders, may extend the period of time to consummate a Business Combination up to two times, each by an additional three months (for a total of up to 21 months to complete a Business Combination) (the “Combination Period”), subject to the Company’s initial shareholders depositing additional funds into the trust account as set out below. Pursuant to the terms of the Company’s Amended and Restated Memorandum and Articles of Association and the Investment Management Trust Agreement entered into between the Company and Continental Stock Transfer & Trust Company, in order for the time available for the Company to consummate a Business Combination to be extended, the Company’s initial shareholders and their affiliates or designees, upon five days advance notice prior to the applicable deadline, must deposit into the trust account up to $1,380,000 ($0.10 per share), up to an aggregate of $2,760,000 or approximately $0.20 per share, on or prior to the date of the applicable deadline, for each three month extension. In the event that the Company receives notice from the initial shareholders five days prior to the applicable deadline to effect an extension, the Company intends to issue a press release announcing such intention at least three days prior to the applicable deadline. In addition, the Company intends to issue a press release the day after the applicable deadline announcing whether or not the funds had been timely deposited. However, the Company’s initial shareholders and their affiliates or designees are not obligated to fund the trust account to extend the time to consummate a Business Combination. On May 21, 2021, an aggregate of $1,380,000 was deposited by JHD Holdings (Cayman) Limited, a Cayman Islands company (“JHD”), into the trust account of the Company for the Company’s public shareholders, representing $0.10 per public share, which enabled the Company to extend the period of time it had to consummate its Business Combination by three months to August 24, 2021. JHD loaned the extension payment to the Company on the Sponsor’s behalf in order to support the extension, in accordance with the Second Business Combination Agreement (as defined below). In connection with the extension payment, the Company issued to JHD an unsecured promissory note having a principal amount equal to the amount of the extension payment. The note bears no interest and will be due and payable (subject to the waiver against trust provisions) on the earlier of (i) the date on which the Business Combination is consummated and (ii) the date of the liquidation of the Company. On August 23, 2021, in connection with a second extension by three months to November 24, 2021, the Company issued to JHD an unsecured promissory note having a principal amount of $1,380,000. In accordance with the Second Business Combination Agreement, JHD loaned such amounts to the Company on the Sponsor’s behalf in order to support such extension, and caused such amounts to be deposited into the Company’s trust account. The note bears no interest and will be due and payable (subject to the waiver against trust provisions) on the earlier of (i) the date on which the Second Business Combination is consummated and (ii) the Company’s liquidation. On November 15, 2021, the Company filed an amendment to the definitive proxy statement to report the terms of the Backstop Arrangements described below. On November 24, 2021, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company had to consummate an initial Business Combination from November 24, 2021 to February 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 10,534,895 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $108.1 million (approximately $10.26 per share) to redeeming shareholders. On February 24, 2022, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company has to consummate an initial Business Combination from February 24, 2022 to August 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 361 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $3,704 (approximately $10.26 per share) to redeeming shareholders. On August 3, 2021, the Company filed with the SEC a definitive proxy statement on Schedule 14A for a special meeting of shareholders, which included a proposal to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which Company has to consummate a Business Combination from August 24, 2022 to February 24, 2023. If the Company is unable to complete a Business Combination by August 24, 2022 or if shareholders of the Company do not approve the proposal to extend the date from August 24, 2022 to February 24, 2023, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than five business days thereafter, redeem 100% of the outstanding Public Shares which redemption will completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining holders of ordinary shares and the Company’s board of directors, proceed to commence a voluntary liquidation and thereby a formal dissolution of the Company, subject (in the case of (ii) and (iii) above) to its obligations to provide for claims of creditors and the requirements of applicable law. In connection with the redemption of 100% of the Company’s outstanding Public Shares for a portion of the funds held in the trust account, each holder will receive a full pro rata portion of the amount then in the trust account plus any pro rata interest earned on the funds held in the trust account (net of any taxes payable and less up to $50,000 of interest to pay liquidation expenses). The initial shareholders have agreed to waive their liquidation rights with respect to the Founder Shares and Private Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the initial shareholders acquire Public Shares in or after the IPO, they will be entitled to liquidating distributions from the trust account with respect to such Public Shares if the Company fails to complete a Business Combination by August 24, 2022 (the “Extended Combination Period”). In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including trust account assets) will be less than the $10.00 per share initially held in the trust account. In order to protect the amounts held in the trust account, the Sponsor and its officers have agreed that they will 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 entered into a written letter of intent, confidentiality or other similar agreement or business combination agreement, reduce the amount of funds in the trust account to below the lesser of (i) $10.00 per public share and (ii) the actual amount per public share held in the trust account as of the date of the liquidation of the trust account, if less than $10.00 per share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third-party or prospective target business who executed a waiver of any and all rights to the monies held in the trust account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933 as amended (the “Securities Act”). The Company will seek to reduce the possibility that the Sponsor and the officers of the Company will have to indemnify the trust account due to claims of creditors by endeavoring to 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. Termination and Announcement of Business Combination Agreements On September 20, 2020, the Company entered into a business combination agreement, as amended on November 9, 2020, (the “First Business Combination Agreement”) with Ufin Holdings Limited, a Cayman Islands exempted company (“Ufin”), Ufin Tek Limited, a British Virgin Islands business company (“Ufin Pubco”), Ufin Mergerco Limited, a British Virgin Islands business company and a wholly owned subsidiary of Ufin Pubco (“Ufin Merger Sub”), Xiaoma (Sherman) Lu, an individual, in the capacity as the Purchaser Representative thereunder, Yingkui Liu, in the capacity as the Seller Representative thereunder, and Ufin Investment Limited, a British Virgin Islands business company and the sole holder of Ufin’s outstanding capital shares (the “Ufin Seller”, together with the Company, Ufin, Ufin Pubco, Ufin Merger Sub, Sherman Xiaoma Lu, Yingkui Liu and Ufin Seller, the “Ufin Parties”). On February 15, 2021, the Company and Ufin Parties entered into a letter termination agreement, upon execution and delivery of which, all of the rights and obligations of the Ufin Parties under the First Business Combination Agreement ceased (except for certain obligations related to publicity, confidentiality, fees and expenses, trust fund waiver, termination and general provisions) without any liability on the part of any party or any of their respective representatives. On February 16, 2021, the Company entered into a Business Combination Agreement (the “Second Business Combination Agreement”) with Navy Sail International Limited, a British Virgin Islands company (“Navy Sail”), as Purchaser Representative, JHD Technologies Limited, a Cayman Islands company (“JHD Pubco”), Yellow River MergerCo Limited, a British Virgin Islands company and a wholly owned subsidiary of JHD Pubco, JHD Holdings (Cayman) Limited, a Cayman Islands company (“JHD”), Yellow River (Cayman) Limited, a Cayman Islands company (the “Primary Seller”), and the other parties thereto. On February 23, 2021, the Company issued the Hao Note (as defined in Note 5), an unsecured promissory note in the amount of up to $500,000 to Chunyi (Charlie) Hao, the Chairman of the Board of Directors and Chief Financial Officer of the Company as a working capital loan. The Hao Note bears no interest and is repayable in full upon the earlier of consummation of the Company’s initial Business Combination and its winding up. The Hao Note may also be converted into units at a price of $10.00 per unit at the option of the noteholder upon the consummation of the Company’s initial Business Combination. Such units would be identical to the Private Units issued to the Sponsor, I-Bankers Securities, Inc., Hua Mao and Cheng Zhao at the Company’s Initial Public Offering. As of June 30, 2022, the Company had drawn down an aggregate of $471,459 (see Note 5). On April 15, 2022, the Company issued a press release on the termination of the Second Business Combination Agreement with JHD and its related parties. The Company also announced execution of a Business Combination Agreement of the Company and ICONIQ Holding Limited, an exempted company incorporated with limited liability in the Cayman Islands (“ICONIQ”), under a new holding company named “NWTN Inc.,” an exempted company incorporated with limited liability in the Cayman Islands (“Pubco”) (the “Third Business Combination Agreement”). On May 21, 2021 and August 20, 2021, an aggregate of $1,380,000 and $1,380,000, respectively, was deposited by JHD into the trust account for the Company’s public shareholders, representing $0.10 per public share, which enabled the Company to extend the period of time it had to consummate its initial Business Combination by twice of three months to November 24, 2021 (the “First Extensions”). The First Extensions were two three-month extensions permitted under the Company’s Amended and Restated Memorandum and Articles of Association and provided the Company with additional time to complete its proposed Business Combination with JHD. In accordance with the Second Business Combination Agreement by and between the Company and JHD, JHD agreed to loan to the Company a sum of $2,760,000 on the Sponsor’s behalf in order to support the First Extensions. Such loan was non-interest bearing and would be payable upon the consummation of the proposed Business Combination. On June 30, 2021, JHD and the Company signed the Yellow River Note (as defined in Note 6), a promissory note in which Yellow River Asset Management, an affiliate of JHD (“Yellow River”), agreed to loan to the Company a sum of $200,000. The Yellow River Note bears no interest and is repayable in full upon the earlier of consummation of the Company’s initial Business Combination and its winding up. As of June 30, 2022, the Company had fully drawn down the Yellow River Note of $200,000 (see Note 6). Backstop Arrangements On November 12, 2021, the Company entered into certain Forward Share Purchase Agreements (the “FPA”) with Sea Otter Securities (“Sea Otter”), Stichting Juridisch Eigendom Mint Tower Arbitrage Fund (“Mint Tower”), Glazer Special Opportunity Fund I, LP (“Glazer”) and Meteora Capital Partners, LP (“Meteora” and, together with Sea Otter, Mint Tower, and Glazer, the “Backstop Investors”), which provide that such investors will not redeem shares that they each hold in connection with the proposal to extend the date by which the Company has to consummate a Business Combination from November 24, 2021 to February 24, 2022 (the “February Extension”) and the proposed merger with JHD contemplated by the Second Business Combination Agreement (the “JHD Merger”), and instead would each either hold such shares for a period of time following the consummation of the JHD Merger, at which time they would each have the right to sell them to the Company at $10.41 per share, or would sell such shares on the open market during such time period at a market price of at least $10.26 per share. In connection with the above-mentioned arrangements, the Sponsor entered into certain share transfer agreements (the “Founder Share Transfer Agreements”) with the Backstop Investors. Pursuant to the Founder Share Transfer Agreement with Meteora and Glazer on November 12, 2021, Meteora and Glazer agreed not to sell, transfer or seek redemption of an aggregate of 974,658 public shares of Company and to vote such shares in favor of the February Extension and the JHD Merger. In consideration of Meteora and Glazer’s agreement to abide by such restrictions on its public shares, the Sponsor agreed to transfer to the Glazer investors 44,444 Founder Shares for every 324,886 public shares not redeemed, for an aggregate of 133,332 Founder Shares. Of such amount, an aggregate of up to 45,000 Founder Shares will be transferred on or before the date of the special meeting of the shareholders of the Company to consider the JHD Merger, and an aggregate of 88,332 Founder Shares will be transferred to the Glazer investors on or before the date of the Closing. The Company has also entered into Founder Shares transfer agreements with identical terms to the Founder Share Transfer Agreement with Sea Otter (pursuant to which 133,332 Founder Shares will be transferred to Sea Otter) and with Mint Tower (pursuant to which 133,332 Founder Shares will be transferred to Mint Tower). Second Business Combination Agreement and Letter Agreement Amendments On November 12, 2021, the Second Business Combination Agreement was further amended to memorialize an agreement among the parties that any funds in the trust account that relate to ordinary shares of the Company held by the Backstop Investors shall not count toward the minimum cash condition contained in Section 9.2(d) of the Second Business Combination Agreement. In addition, Section 10.1(b) of the Second Business Combination Agreement was amended, contingent upon the effectiveness of the February Extension, to provide that the Second Business Combination Agreement may be terminated at any time prior to the Closing by either the Company or JHD, if the Closing does not occur by February 24, 2022. On November 12, 2021, JHD, JHD Pubco, Primary Seller, the Company, the Sponsor, Navy Sail, Chunyi (Charlie) Hao, and Xiaoma (Sherman) Lu (Messers Hao and Lu, collectively with Navy Sail and the Sponsor, the “Primary Initial Shareholders”) entered into an amendment (the “Letter Agreement Amendment”) to the Letter Agreement Regarding Forfeiture of Founder Shares, dated February 16, 2021 (the “Founder Share Letter”) by and among JHD, the Company, the Sponsor, Navy Sail, Chunyi (Charlie) Hao, and Xiaoma (Sherman) Lu. The Founder Share Letter provided, inter alia, that up to 1,725,000 ordinary shares (the “Forfeiture Shares”) would be subject to forfeiture in the event that the Company did not have at least $100 million in cash at the closing of the JHD Merger, with the number of such shares to be forfeit determined on a sliding scale depending upon the amount of the cash shortfall, if any, with the entire amount of the 1,725,000 shares subject to forfeiture if the Company’s cash at closing was $70 million or less. Under the terms of the Letter Agreement Amendment, the Company, the Primary Initial Shareholders, JHD, JHD Pubco and the Primary Seller agreed that the 1,725,000 Forfeiture Shares would be exchanged for an equivalent number of JHD Pubco ordinary shares (“Forfeiture Replacement Shares”) at the Closing and that such Forfeiture Replacement Shares would be distributed as follows: (A) 138,000 Forfeiture Replacement Shares to the Primary Seller, (B) to Glazer, Sea Otter and Mint Tower, up to 450,000 Forfeiture Replacement Shares in consideration for their having entered into the FPA and the Founder Share Transfer Agreements and (C) out of the remaining Forfeiture Replacement Shares, (i) to a shareholder of the Sponsor who is not a director or officer of the Purchaser) up to 500,000 Forfeiture Replacement Shares and (ii) to the extent of any remaining Forfeiture Replacement Shares (a) 50% to Charlie Hao and Xiaoma (Sherman) Lu and (b) 50% to the Primary Seller. The Forfeiture Replacement Shares being delivered to the Backstop Investors and to the Primary Seller are not subject to the forfeiture calculations under the Founder Share letter (as amended by the Letter Agreement Amendment), however the calculation of any Forfeiture Replacement Shares to be distributed to the shareholder of the Sponsor or to Charlie Hao, Sherman Lu and the Primary Seller under (C) above will be subject to the forfeiture calculations. To the extent that the forfeiture calculation results in less than all of the remaining Founder Shares subject to the arrangement (1,725,000) being distributed pursuant to the terms of the preceding paragraph, the remainder of such shares shall remain with the Primary Initial Shareholders. On January 31, 2022, certain of the Backstop Investors entered into certain Founder Share transfer agreements (the “February 2022 Founder Share Transfer Agreements”) with the Sponsor to support a proposal for the February Extension. Pursuant to the February 2022 Founder Share Transfer Agreements, such Backstop Investors agreed to not request redemption of an aggregate of up to 600,000 ordinary shares of the Company in connection with the February Extension. In connection therewith, the Sponsor agreed to transfer to such Backstop Investors an aggregate of (i) 180,000 Founder Shares on or prior to the February 24, 2022 special meeting of shareholders to approve the February Extension, and (ii) 60,000 Founder Shares for each month past May 24, 2022 that the Business Combination has not yet closed, for a total of up to 360,000 Founder Shares to be received by such Backstop Investors to support the February Extension. The FPA terminated by its terms on February 24, 2022. On February 10, 2022, the Company filed with the SEC its definitive proxy statement on Schedule 14A for a special meeting of shareholders to be held on February 24, 2021, which included a proposal to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which Company has to consummate a Business Combination from February 24, 2022 to August 24, 2022. On February 24, 2021, the shareholders approved the proposed extension to August 24, 2022 by approving the amendment of the Com |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Description of Organization and Business Operations [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X promulgated by the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed, consolidated 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 consolidated 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 consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC on April 15, 2022, which contains the audited financial statements and notes thereto. The interim results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future interim periods. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated on consolidation. 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 auditor 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 non-binding advisory vote on executive compensation and shareholder 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 accompanying unaudited condensed consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of the accompanying unaudited condensed consolidated 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 accompanying unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. 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 accompanying unaudited condensed consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. In the accompanying unaudited condensed consolidated financial statements, management exercised a significant judgment in estimating the fair value of its warrant liabilities. The actual results could differ significantly from those estimates including the estimate of the fair value of its warrant liabilities. Ordinary Shares Subject to Possible Redemption The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in FASB Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”). Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, as of June 30, 2022 and December 31, 2021, 3,264,744 and 3,265,105 ordinary shares subject to possible redemption are presented at redemption value as temporary equity, respectively, outside of the shareholders’ deficit section of the Company’s consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. On November 24, 2021, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company had to consummate an initial Business Combination from November 24, 2021 to February 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 10,534,895 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $108.1 million (approximately $10.26 per share) to redeeming shareholders. On February 24, 2022, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company has to consummate an initial Business Combination from February 24, 2022 to August 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 361 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $3,704 (approximately $10.26 per share) to redeeming shareholders. At June 30, 2022 and December 31, 2021, the ordinary shares subject to possible redemption reflected in the consolidated balance sheets are reconciled in the following table: Ordinary shares subject to possible redemption as of January 1, 2021 $ 138,000,000 Add: Accretion of carrying value of redemption value 3,588,000 Less: redemption of ordinary shares (108,088,023 ) Ordinary shares subject to possible redemption as of December 31, 2021 $ 33,499,977 Less: redemption of ordinary shares (3,704 ) Ordinary shares subject to possible redemption as of March 31, 2022 $ 33,496,273 Add: Accretion of carrying value of redemption value 45,376 Ordinary shares subject to possible redemption as of June 30, 2022 $ 33,541,649 Offering Costs Total offering costs amounted to $4,154,255, including the fair value of the Representative’s Shares and Representative’s Warrants, at $1,035,000 and $1,640,028, respectively. Of the total $4,118,255 transaction cost, the cash transaction costs amounted to $3,083,255, of which $2,415,000 was underwriting fees, including $402,500 deferred underwriting commissions, payable at the consummation of the Business Combination (as described below), and $668,255 of other offering costs of legal, accounting and other expenses incurred through the IPO that are directly related to the IPO. All of the transaction costs were charged to the temporary equity of the Company upon completion of the IPO. Forward Share Purchase Agreements On November 12, 2021, the Company entered into the FPA with Sea Otter, Mint Tower, Glazer and Meteora, which provided that such investors would not redeem shares that they each hold in connection with the proposal to extend the date by which the Company had to consummate a Business Combination from November 24, 2021 to February 24, 2022 and the proposed Merger with JHD, and instead would each either hold such shares for a period of time following the consummation of the JHD Merger, at which time they would each have the right to sell them to East Stone at $10.41 per share, or will sell such shares on the open market during such time period at a market price of at least $10.26 per share. The Company accounts for the FPA as embedded contracts to the share purchase contracts with these Backstop Investors, and classifies the FPA as a liability in accordance with the guidance in ASC 480, because the FPA embody an obligation to redeem the Company’s outstanding shares at fixed amount of cash. The Company initially measures the financial liabilities at fair value, and changes in fair value of financial liabilities are subsequently charged to the unaudited condensed consolidated statements of operations. The FPA automatically terminated when the Business Combination did not close by February 24, 2022. As such the FPA liability was derecognized on February 24, 2022. Income Taxes FASB ASC Topic 740, “Income Taxes” 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’s management determined that the British Virgin Islands is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2022 and December 31, 2021, respectively. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. There is currently no taxation imposed on income by the government of the British Virgin Islands. In accordance with British Virgin Islands federal income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s accompanying unaudited condensed consolidated financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. Net loss per Ordinary Share Net loss per ordinary share is computed by dividing net loss by the weighted average number of ordinary shares outstanding for the period. The calculation of diluted loss per share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, (ii) the exercise of the over-allotment option and (iii) Private Units, since the exercise of the warrants are contingent upon the occurrence of future events. The warrants derived from the public units are exercisable to purchase 6,900,000 ordinary shares and warrants derived from the Private Units are exercisable to purchase 175,000 ordinary shares, together 7,075,000 in the aggregate. The Company’s unaudited condensed consolidated statements of operations include a presentation of loss per share for ordinary shares, redeemable and non-redeemable. For the three months ended June 30, 2021, basic and diluted net loss per ordinary share, for redeemable and non-redeemable ordinary shares, is calculated as dividing the allocated net income for the three months ended June 30, 2021, by the weighted average number of 13,800,000 and 3,903,500 redeemable and non-redeemable ordinary shares outstanding for the periods, respectively, and resulted in basic and diluted net loss of $(0.05) and $(0.05) per redeemable and non-redeemable ordinary share, respectively. For the six months ended June 30, 2021, basic and diluted net loss per ordinary share, for redeemable and non-redeemable ordinary shares, is calculated as dividing the allocated net income for the six months ended June 30, 2021, by the weighted average number of 13,800,000 and 3,903,500 redeemable and non-redeemable ordinary shares outstanding, for the periods, respectively, and resulted in basic and diluted net loss of $(0.06) and $(0.06) per redeemable and non-redeemable ordinary share, respectively. For the three months ended June 30, 2022, basic and diluted net loss per ordinary share, for redeemable and non-redeemable ordinary shares, is calculated as dividing the allocated net income for the three months ended June 30, 2022, by the weighted average number of 3,264,744 and 3,903,500 redeemable ordinary shares outstanding for the periods, respectively, and resulted in basic and diluted net loss of $(0.21) and $(0.21) per redeemable and non-redeemable ordinary share, respectively. For the six months ended June 30, 2022, basic and diluted net loss per ordinary share, for redeemable and non-redeemable ordinary shares, is calculated as dividing the allocated net income for the six months ended June 30, 2022, by the weighted average number of 3,264,856 and 3,903,500 redeemable ordinary shares outstanding for the periods, respectively, resulted in basic and diluted net loss of $(0.18) and $(0.18) per redeemable and non-redeemable ordinary share, respectively. Non-redeemable ordinary shares include the Founder Shares, Representative’s Shares and ordinary shares underlying the Private Units, as these shares do not have any redemption features and do not participate in the income earned on the trust account. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage 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. Financial Instruments The Company analyses all financial instruments with features of both liabilities and equity under ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Pursuant to its IPO, the Company sold 13,800,000 Units (including underwriters’ full exercise over-allotment option 1,800,000 Unit) consisting with one ordinary share, one right (“Public Right”), and one Public Warrant (as defined in Note 3). Simultaneously with the closing of the IPO, the Company sold 350,000 Private Units, consisting of 350,000 Private Shares (as defined in Note 4), 350,000 Private Warrants (as defined in Note 4) and 350,000 Private Rights (as defined in Note 4). As compensation to the IPO underwriters, the Company issued 690,000 Representative’s Warrants to the Company’s underwriters (see Note 6). The Company accounted for its Public Warrants, Public Rights and Private Rights as equity instruments. The Company accounted for the Private Warrants and Representative’s Warrants as liability instruments. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying consolidated balance sheet, primarily due to their short-term nature, other than the warrant liabilities (see Note 10). Derivative Warrant Liabilities The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. Management evaluates all of its financial instruments, including issued warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815-15, “Derivatives and Hedging—Embedded Derivatives Recognition.” The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. In accordance with FASB ASC Topic 825-10, “Financial Instruments,” offering costs attributable to the issuance of the derivative warrant liabilities are recognized in the unaudited condensed consolidated statement of operations as incurred. The Company sold 350,000 Private Warrants and issued 690,000 Representative’s Warrants in connection to its IPO (together “Liability Warrant”) (see Note 4 and Note 6). All of the Company’s outstanding Liability Warrants are recognized as derivative liabilities in accordance with FASB ASC Topic 815-40, 815-40 “Derivatives and Hedging — Contracts in Entity’s Own Equity” (“ASC 815-40”). Accordingly, The Company recognizes recognize the warrant instruments as liabilities at fair value and adjusts the instruments to fair value at each reporting period. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our unaudited condensed consolidated statements of operations. Derivative Liability of Forward Share Purchase On November 12, 2021, the Company entered into the FPA with Sea Otter, Mint Tower, Glazer and Meteora, which provided that such investors will not redeem shares 2,923,974 Public Shares, collectively and respectively, that they each hold in connection with the proposal to extend the date by which the Company has to consummate a Business Combination from November 24, 2021 to February 24, 2022 and the proposed Merger with JHD, and instead would each either hold such shares for a period of time following the consummation of the JHD Merger, at which time they would each have the right to sell them to the Company at $10.41 per share, or would sell such shares on the open market during such time period at a market price of at least $10.26 per share. All of the Company’s outstanding FPA is recognized as derivative liabilities in accordance with ASC 815-40. Accordingly, the Company recognizes the FPA as liabilities at fair value and adjusts the instruments to fair value at each reporting period. The FPA automatically terminated when the Second Business Combination did not close on February 24, 2022. As such the FPA liability was derecognized on February 24, 2022. Recently Issued Accounting Standards There have been no recently issued accounting standards that are applicable to the Company. |
Initial Public Offering
Initial Public Offering | 6 Months Ended |
Jun. 30, 2022 | |
Initial Public Offering [Abstract] | |
INITIAL PUBLIC OFFERING | NOTE 3. INITIAL PUBLIC OFFERING Pursuant to the IPO, the Company sold 13,800,000 Units at a purchase price of $10.00 per Unit, which includes the underwriters’ full exercise of the over-allotment option in the amount of 1,800,000 Units. Each Unit consists of one ordinary share, no par value, one right, and one redeemable warrant (each whole warrant, a “Public Warrant”). Each right entitles the holder thereof to receive one-tenth (1/10) of one ordinary share upon the consummation of the Business Combination. Each Public Warrant entitles the holder thereof to purchase one-half (1/2) of one ordinary share at an exercise price of $11.50 per full share (subject to certain adjustments) (see Note 9). |
Private Placement
Private Placement | 6 Months Ended |
Jun. 30, 2022 | |
Private Placement Abstract | |
PRIVATE PLACEMENT | NOTE 4. PRIVATE PLACEMENT Simultaneously with the closing of the IPO, the Sponsor, anchor investors and I-Bankers purchased an aggregate of 350,000 Private Units, of which 275,000 were purchased by the Company’s Sponsor and anchor investors and 75,000 by I-Bankers, for an aggregate purchase price of $3,500,000. Each Private Unit consists of one ordinary share (“Private Share”), one right (“Private Right”) and one warrant (“Private Warrant”). Each Private Right entitles the holder thereof to receive one-tenth (1/10) of one ordinary share upon the consummation of the Business Combination. Each Private Warrant entitles the holder thereof to purchase one-half (1/2) of one ordinary share at an exercise price of $11.50 per full share. The net proceeds from the private placement was added to the proceeds from the IPO being held in the trust account. If the Company does not complete a Business Combination within the Combination Period, the net proceeds from the sale of the private placement will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and Private Units and all underlying securities will expire worthless. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 5. RELATED PARTY TRANSACTIONS Founder Shares In October 2018, the Company issued 1,437,500 ordinary shares to its initial shareholders (the “Founder Shares”) for an aggregate purchase price of $25,000, or approximately $0.017 per share. In January and February 2020, the Company effected 2 for 1 and 1.2 for 1 share dividends, respectively, for each ordinary share outstanding, resulting in the initial shareholders owning an aggregate of 3,450,000 Founder Shares. The share dividends are retroactively restated in the accompanying unaudited condensed consolidated financial statements. Of the 3,450,000 Founder Shares, 450,000 shares were subject to forfeiture by the initial shareholders to the extent that the underwriters’ over-allotment was not exercised in full or in part. As a result of the underwriters’ election to fully exercise their over-allotment option, 450,000 Founder Shares are no longer subject to forfeiture. Additionally, subject to certain limited exceptions, the initial shareholders agreed to escrow (and not transfer any ownership interest in) their Founder Shares, excluding any Units or shares comprising Units acquired by the initial shareholders in the Initial Public Offering or in the open market: (i) with respect to 50% of the Founder Shares for a period ending on the earlier of the six month anniversary of the Business Combination or the date on which the closing price of the ordinary shares exceeds $12.50 for any 20 trading days within a 30-trading day period following the closing of the Business Combination and (ii) with respect to the other 50% of the Founder Shares for a period ending on the six month anniversary of the closing of the Business Combination, unless approved by the Company’s public shareholders. However, if, after a Business Combination, there is a transaction whereby all the outstanding shares are exchanged or converted into cash (as they would be in a post-asset sale liquidation) or another issuer’s shares, then the Founder Shares (or any ordinary shares thereunder) shall be permitted to come out of escrow to participate. In addition, all initial shareholders have agreed to escrow (and not transfer any ownership interest in) their Private Units (or any securities comprising the Private Units), excluding any Units acquired by initial shareholders in the Initial Public Offering or in the open market, until thirty (30) days following the closing of the Business Combination. As of November 24, 2021, the initial shareholders had transferred 135,000 Founder Shares to Meteora, Glazer and Mint Tower in connection with the Backstop Arrangements in connection with the JHD Merger (see Note 1). On January 31, 2022, certain of the Backstop Investors entered into the February 2022, Founder Share Transfer Agreements with the Sponsor to support a proposal for the February Extension. Pursuant to the February 2022, Founder Share Transfer Agreements, such Backstop Investors agreed to not request redemption of an aggregate of up to 600,000 ordinary shares of the Company in connection with the February Extension. In connection therewith, the Sponsor agreed to transfer to such Backstop Investors an aggregate of 180,000 Founder Shares on or prior to the February 24, 2022 special meeting of shareholders to approve the February Extension, and 60,000 Founder Shares for each month past May 24, 2022, that the Third Business Combination has not yet closed, for a total of up to 360,000 Founder Shares to be received by such Backstop Investors to support the February Extension. The transfer of the Founder Shares to the investors is in the scope of SAB topic 5T as an inducement to the investors to not liquidate and approve the extension of the SPAC life. The fair value of the 180,000 shares granted to the Company’s investors was $1,900,800 based on the closing price on the grant date. The Founder Shares were granted subject to the investors postponing redemption of their shares to extend the life through May 24, 2022. On February 24, 2022, the Backstop Investors did not redeem and the extension was approved. The Company determined that the value of the shares transferred on February 24, 2022, was considered an inducement and was recorded as an expense. Administrative Support Arrangement The Company entered into an administrative support agreement with an affiliate of the Company’s officers (the “Service Party”), commencing on February 19, 2020 through the earlier of the consummation of a Business Combination or the Company’s liquidation. The Company agreed to pay the Service Party up to a maximum of $120,000 in the aggregate for office space, utilities and secretarial and administrative services. Such administrative fee has been fully paid by the Company to the Service Party as of December 31, 2021. Promissory Note — Related Party In order to finance transaction costs in connection with a Business Combination, the Sponsor, officers and directors or their respective affiliates may, but are not obligated to, provide Working Capital Loans to the Company. If the Company completes a Business Combination, the Company would repay the Working Capital Loans. 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. Such Working Capital Loans would be evidenced by promissory notes. The notes would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, or converted upon consummation of a Business Combination into additional Working Capital Units. On February 23, 2021, the Company issued a promissory note for up to $500,000 in Working Capital Loans to Mr. Chunyi (Charlie) Hao, Chairman to the Company’s Board and Chief Financial Officer (“Existing Note”). On December 1, 2021, the Company amended and restated the Existing Note in its entirety effective as of the date of the note (“Amended and Restated Note”) (together with the Existing Note, the “Hao Note”), the note was also amended to no longer have a convertible feature to convert the outstanding balance into warrants. The Company promises to pay Mr. Hao the principal sum of up to Five Hundred Thousand Dollars ($500,000.00) in lawful money of the United States of America on the terms and conditions described in the Amended and Restated Note. All payments on the Hao Note shall be made by check or wire transfer of immediately available funds to such account as the Company may from time to time designate by written notice in accordance with the provisions of the Hao Note. As of June 30, 2022 and December 31, 2021, Mr. Hao has loaned $471,459 and $300,000, respectively, to the Company. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6. COMMITMENTS AND CONTINGENCIES Risk and Uncertainties In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. As a result of this action, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. Further, the impact of this action and related sanctions on the world economy is not determinable as of the date of the accompanying unaudited condensed consolidated financial statements. The specific impact on the Company’s financial condition, results of operations, and cash flows is also not determinable as of the date of the accompanying unaudited condensed consolidated financial statements. Management continues to evaluate the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, proposed Business Combination, and/or search for a target company, the specific impact is not readily determinable as of the date of the accompanying unaudited condensed consolidated financial statements. A significant outbreak of COVID-19 and other infectious diseases could result in a widespread health crisis that could adversely affect the economies and financial markets worldwide, and potential target companies may defer or end discussions for a potential merger with the Company if COVID-19 is going on, and materially adversely affects their business operations and, therefore, the valuation of their business. The extent to which COVID-19 impacts the Company’s closing on the proposed Business Combination will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions posed by COVID-19 or other matters of global concern continue for an unexpectedly long period of time, the Company’s ability to consummate a Business Combination may be materially adversely affected. The accompanying unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Promissory Note On December 31, 2021, the Company issued a promissory note for up to $200,000 to Yellow River (the “Yellow River Note”). The Yellow River Note was non-interest bearing and was not secured. As of June 30, 2022 and December 31, 2021, the Company fully drew down the Yellow River Note at $200,000 to pay expenses and booked the Yellow River Note as an advance from related parties into the Company’s liabilities. As of June 30, 2022 and December 31, 2021, the outstanding balance of the Yellow River Note payable was at $200,000. Extension Loans As discussed in Note 1, the Company has extended the period of time to consummate a Business Combination twice, each by an additional three months (for a total of 21 months to complete a Business Combination). In order to extend the time available for the Company to consummate a Business Combination, the initial shareholders and/or their affiliates or designees must deposit into the trust account up to an aggregate of $2,760,000 for a total of two extensions. Any such payments would be made in the form of a loan. Such loan was non-interest bearing and would be payable upon the earlier of (i) the date on which the Business Combination is consummated and (ii) the Company’s liquidation. If the Company completes a Business Combination, the Company would repay such loaned amounts out of the proceeds of the trust account released to the Company. If the Company does not complete a Business Combination, the Company will not repay such loans. On May 21, 2021 and August 20, 2021, an aggregate of $1,380,000 and $1,380,000, respectively, was deposited by JHD into the trust account to extend the date by which the Company had to consummate a Business Combination from May 24, 2021 to August 24, 2021, and from August 24, 2021 to November 24, 2021. On November 24, 2021, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company had to consummate an initial Business Combination from November 24, 2021 to February 24, 2022. On February 24, 2022, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company has to consummate an initial Business Combination from February 24, 2022 to August 24, 2022. As of June 30, 2022 and December 31, 2021, the Company had an extension loan balance of $2,760,000. Registration Rights Pursuant to a registration rights agreement entered into by and among the Company, the initial shareholders, anchor investors and I-Bankers on February 19, 2020, the holders of the Founder Shares, Private Units (and underlying securities), and Working Capital Units (and underlying securities) will be entitled to registration rights. The holders of a majority-in-interest of these securities are entitled to make up to three 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 consummation of a Business Combination. Business Combination Marketing Agreement The Company has engaged I-Bankers as an advisor in connection with the Company’s Business Combination to assist the Company in holding meetings with the Company’s shareholders to discuss the potential Business Combination and the target business’ attributes, introduce the Company to potential investors that are interested in purchasing the Company’s securities in connection with the Business Combination, assist the Company in obtaining shareholder approval for the Business Combination and assist the Company with its press releases and public filings in connection with the Business Combination. Pursuant to the Company’s agreement with I-Bankers, (i) if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is at least 50% of the gross proceeds of the IPO, then the advisory fees payable to I-Bankers will be 2.75% of the cash remaining in the trust account, (ii) if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is less than 50% of the gross proceeds of the IPO, then the advisory fees payable to I-Bankers will be 1.375% of the gross proceeds of the IPO, and (iii) notwithstanding (i) and (ii) above, if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is less than $20,000,000, then the advisory fees payable to I-Bankers will be paid in a combination of cash and securities in the same proportion as the cash and securities consideration paid to the target and its shareholders in the Business Combination, provided that in no event shall the cash portion of such advisory fees be less than $1,000,000. Deferred Underwriting Commission The deferred underwriting commission of $402,500 is to be paid out of the trust account to I-Bankers and EarlyBird only on completion of the Company’s Business Combination. The deferred offering commission will be paid only upon consummation of a Business Combination. If the Business Combination is not consummated, such deferred offering commission will be forfeited. None of the underwriters will be entitled to any interest accrued on the deferred offering commission. Representative’s Shares On February 24, 2020, the Company issued an aggregate of 103,500 Representative’s Shares to I-Bankers and EarlyBird, in connection with their services as underwriters for the IPO. The underwriters have agreed not to transfer, assign or sell any of Representative’s Shares until the completion of the Company’s initial Business Combination. In addition, the underwriters agreed (i) to waive their redemption rights with respect to such shares in connection with the completion of the initial Business Combination and (ii) to waive their rights to liquidating distributions from the trust account with respect to the Representative’s Shares if the Company fails to complete its initial Business Combination within the Combination Period. Based on the IPO price of $10.00 per Unit, the fair value of the 103,500 ordinary shares was $1,035,000, which was an expense of the IPO resulting in a charge of offering costs against temporary equity upon the completion of the IPO. Representative’s Warrants On February 24, 2020, the Company issued an aggregate of 690,000 Representative’s Warrants, exercisable at $12.00 per full share, to I-Bankers and EarlyBird, in connection with their services as underwriters for the IPO. The Representative’s Warrants may be exercised for cash or on a cashless basis, at the holder’s option, at any time during the period commencing on the later of the first anniversary of the Effective Date and the closing of the Company’s initial Business Combination and terminating on the fifth anniversary of such effectiveness date. The underwriters have each agreed that neither it nor its designees will be permitted to exercise the warrants after the five year anniversary of the Effective Date. The Company accounted for the 690,000 Representative’s Warrants as an expense of the IPO resulting in a charge directly to shareholders’ equity. The fair value of Representative’s Warrants was estimated to be approximately $1,640,028 (or $2.38 per warrant) using the Black-Scholes option-pricing model. The Representative’s Warrants grant to holders demand and “piggy back” rights for periods of five and seven years, respectively, from the Effective Date with respect to the registration under the Securities Act of the ordinary shares issuable upon exercise of the Representative’s Warrants. The Company will bear all fees and expenses attendant to registering the securities, other than underwriting commissions, which will be paid for by the holders themselves. The exercise price and number of ordinary shares issuable upon exercise of the Representative’s Warrants may be adjusted in certain circumstances including in the event of a share dividend, or the Company’s recapitalization, reorganization, merger or consolidation. However, the Representative’s Warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. On February 24, 2020, the date when the Representative’s Warrants were issued, the Company estimated the fair value of Representative’s Warrants to be approximately $1,640,028 (or $2.38 per warrant) using the Black-Scholes option-pricing model at the issuing time. Termination of Previously Announced Original Agreement On April 15, 2022, the Company terminated its Second Business Combination Agreement with JHD and its related parties. Execution of New Business Combination Agreement On April 15, 2022, the Company entered into the Third Business Combination Agreement with Navy Sail International Limited, a British Virgin Islands company, in the capacity as the representative of the Company and the shareholders of the Company immediately prior to Closing from and after the Closing (the “Purchaser Representative”), Pubco, Muse Merger Sub I Limited, an exempted company incorporated with limited liability in the Cayman Islands and a wholly owned subsidiary of the Pubco (the “First Merger Sub”), Muse Merger Sub II Limited, a British Virgin Islands business company and a wholly owned subsidiary of Pubco (the “Second Merger Sub”), and ICONIQ. Pursuant to the Third Business Combination Agreement, subject to the terms and conditions set forth therein, at the closing of the transactions contemplated by the Third Business Combination Agreement (the “Closing”), which Closing is subject to, among other things, regulatory and shareholder approval, (a) the First Merger Sub will merge with and into ICONIQ (the “First Merger”), with ICONIQ surviving the First Merger as a wholly owned subsidiary of Pubco and the outstanding shares of ICONIQ being converted into the right to receive shares of Pubco; and (b) the Second Merger Sub will merge with and into the Company (the “Second Merger”, and together with the First Merger, the “Mergers”), with the Company surviving the Second Merger as a wholly owned subsidiary of the Pubco and the outstanding securities of the Company being converted into the right to receive substantially equivalent securities of the Pubco (the Mergers together with the other transactions contemplated by the Third Business Combination Agreement and other ancillary documents, the “Transactions”). Under the Third Business Combination Agreement, the Aggregate Merger Consideration Amount (as defined therein)to be paid to the shareholders of ICONIQ is $2,500,000,000 and will be paid entirely in shares, comprised of newly issued ordinary shares of the Pubco, with each share valued at the Per Share Price (as defined therein). As a result of the Mergers, (a) each of the Class A ordinary shares of ICONIQ that are issued and outstanding immediately prior to the time when the First Merger becomes effective under the Companies Act (2022 Revision) of the Cayman Islands, as amended (the “First Merger Effective Time”) will be cancelled and converted into (i) the right to receive 90% of such number of Class A ordinary shares of the Pubco equal to the Exchange Ratio (as defined therein), and (ii) the contingent right to receive 10% of such number of Class A ordinary shares of the Pubco equal to the Exchange Ratio in accordance with the Third Business Combination Agreement. Each Class B ordinary share of ICONIQ that is issued and outstanding immediately prior to the First Merger Effective Time will be cancelled and converted into the right to receive the number of Class B ordinary shares of the Pubco equal to the Exchange Ratio. Each ordinary share of the Purchaser that is issued and outstanding immediately prior to the Effective Time shall be cancelled and converted automatically into the right to receive one Pubco Class B ordinary share. Each of outstanding Purchaser Public Warrant and Purchaser Private Warrant shall be converted into one Pubco Public Warrant and one Pubco Private Warrant, respectively. Each issued and outstanding Purchaser Right shall be automatically converted into one-tenth of one Pubco Class B ordinary share. Promissory Note – ICONIQ In connection with the execution of the Third Business Combination Agreement, on April 21, 2022, the Company issued to ICONIQ an unsecured promissory note effective upon the execution thereof of up to an aggregate amount of $1,000,000, which funds will solely be used to pay certain third-party service fees and expenses of the Company in connection with the Business Combination. The first tranche of the ICONIQ Note of $300,000 will be disbursed to the Company within five calendar days of the execution of the Third Business Combination Agreement, and the second tranche of $700,000 will be drawn down and paid directly to the Company’s third-party service providers in connection with the consummation of the Transactions as such expenses are incurred. The ICONIQ Note bears no interest and will be due and payable (subject to the waiver against trust provisions) on the earlier of the one year anniversary of the date of disbursing the first tranche of the ICONIQ Note, the date of closing of a Business Combination between the Company and a third-party other than ICONIQ, the date of closing of the transactions contemplated by the Third Business Combination Agreement, the date of the occurrence of an Event of Default, and the date of termination of the Third Business Combination Agreement. The ICONIQ Note may be repaid, at ICONIQ’s discretion, in cash or in the Company’s ordinary shares, based on a conversion price of $10.26 per share, or, if lower, the then-applicable redemption price of the Company’s public shares, subject to the terms of the Third Business Combination Agreement. As of June 30, 2022, the Company had drawn $568,000. PIPE Transactions In connection with the execution of the Third Business Combination Agreement, on April 21, 2022, the Company and the Pubco have entered into a subscription agreement (the “PIPE Subscription Agreement”) with an investor (the “PIPE Investor”), pursuant to which, among other things, the Pubco has agreed to issue and sell to the PIPE Investor, and the PIPE Investor has agreed to subscribe for and purchase, certain ordinary shares of the Pubco for a purchaser price at the Per Share Price and at an aggregate purchase price of $200,000,000, in a private placement (the “April 2022 PIPE”). The PIPE Subscription Agreement contains customary representations and warranties of each of the Company, Pubco and the PIPE Investor, and customary conditions to closing, including the consummation of the Business Combination between the Company and ICONIQ. The purpose of the April 2022 PIPE is to raise additional capital for use by the combined company following the Closing. The securities sold in connection with the April 2022 PIPE were sold under the exemption from registration provided by Section 4(a)(2) of the Securities Act. On June 15, 2022, the Company and Pubco entered into a subscription agreement (the “June 2022 PIPE Subscription Agreement”) with a second investor (the “June 2022 PIPE Investor”), on substantially the same terms as the April 2022 PIPE, pursuant to which, among other things, the Pubco has agreed to issue and sell to the June 2022 PIPE Investor, and the June 2022 PIPE Investor has agreed to subscribe for and purchase, certain ordinary shares of the Pubco at the per share price for an aggregate purchase price of $200,000,000, in a private placement (the “June 2022 PIPE”). The purpose of the June 2022 PIPE is to raise additional capital for use by the combined company following the Closing of the Business Combination between the Company and ICONIQ. The June 2022 PIPE Subscription Agreement contains customary representations and warranties of each of the Company, Pubco and the June 2022 PIPE Investor, and customary conditions to Closing, including the consummation of the Business Combination between the Company and ICONIQ. Under the terms of the June 2022 PIPE Subscription Agreement, Pubco is obligated to file a registration statement to register for resale the June 2022 PIPE shares within 90 days of Closing (and to use its reasonable efforts to cause such registration statement to become effective within 150 days of the Closing, subject to certain exceptions). The securities sold in connection with the June 2022 PIPE were sold under the exemption from registration provided by Section 4(a)(2) of the Securities Act. Related Agreements and Documents Lock-Up Agreements Simultaneously with the execution of the Third Business Combination Agreement, the Pubco, the Purchaser Representative, ICONIQ and the Company have entered into lock-up agreements with certain holders of the Founder Shares and with certain Sellers. These lock-up agreements provide for a lock-up period commencing on the Closing Date and ending: with respect to shares held by the controlling shareholder of ICONIQ, 12-month anniversary of the Closing Date with respect to 50% of such shares, 18-month anniversary of the Closing Date with respect to 25% of such shares, 24-month anniversary of the Closing Date with respect to 25% of such shares, and with respect to the shares held by certain Founders and certain other Sellers, 6-month anniversary of the Closing Date with respect to 30% of such shares, and 1-year anniversary of the Closing Date with respect to 70% of such shares. Shareholder Support Agreement Simultaneously with the execution of the Third Business Combination Agreement, the Company, ICONIQ, and certain shareholders of ICONIQ have entered into a Shareholder Support Agreement, pursuant to which, among other things, the shareholders of ICONIQ have agreed to support the adoption of the Third Business Combination Agreement and the approval of the Transactions, subject to certain customary conditions, and not to transfer any of their subject shares (or enter into any arrangement with respect thereto), subject to certain customary conditions.) Insider Letter Amendment Simultaneously with the execution of the Third Business Combination Agreement, the Company, ICONIQ, the Purchaser Representative, Double Ventures Holdings Limited, the Pubco, Xiaoma (Sherman) Lu and Chunyi (Charlie) Hao have entered into an amendment to that certain letter agreement, dated February 19, 2020, by and among the Company, the Sponsor and the directors, officers or other initial shareholders of the Company named therein, pursuant to which the Pubco is added as a Party to the Insider Letter, and the lock-up period set forth in the Insider Letter, as applied to the Primary Initial Shareholders (as defined therein) with respect to their Founder Shares after Closing, was amended to be identical to the lock-up period set forth in the lock up agreement for the Founders. The foregoing descriptions of the Third Business Combination Agreement, Lock-Up Agreements, Shareholder Support Agreement and Insider Letter Agreement are subject to and qualified in their entirety by reference to the full text of the Third Business Combination Agreement, Lock-Up Agreements, Shareholder Support Agreement and Insider Letter Agreement, copies of which are attached as exhibits to this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2022 (the “Quarterly Report”). Other than as specifically discussed, this Quarterly Report does not give effect to the proposed Transactions. |
Derivative Warrant Liabilities
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities [Abstract] | |
DERIVATIVE WARRANT LIABILITIES AND DERIVATIVE FORWARD SHARE PURCHASE LIABILITIES | NOTE 7. DERIVATIVE WARRANT LIABILITIES AND DERIVATIVE FORWARD SHARE PURCHASE LIABILITIES The Company accounts for the Public Warrants, the Private Warrants and the Representative’s Warrants (together, the “Warrants”) and its FPA as either equity-classified or liability-classified instruments based on an assessment of the specific terms of the Warrants and FPA and the applicable authoritative guidance in ASC 480 and ASC 815. The assessment considers whether the Warrants and FPA are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and meet all of the requirements for equity classification under ASC 815, including whether the Warrants and FPA are indexed to the Company’s own ordinary shares and whether the warrant holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of issuance of the Warrants and execution of the FPA and as of each subsequent quarterly period end date while the Warrants and FPA are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, such warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, such warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of liability-classified warrants are recognized as a non-cash gain or loss on the statements of operations. The Company accounts for the Warrants and FPA in accordance with ASC 815-40 under which the Warrants and FPA do not meet the criteria for equity classification and must be recorded as derivatives. The fair value of the Private Warrants has been estimated using the modified Black-Scholes-Merton model. The fair value of the FPA has been estimated using an adjusted net assets method. See Note 10 for further discussion of the fair value measurement. Warrant Liabilities As of June 30, 2022 and December 31, 2021, the Company had 350,000 Private Warrants outstanding and 690,000 Representative’s Warrants outstanding. The Private Warrants and Representative’s Warrants are recognized as warrant liabilities and subsequently measured at fair value. The Private Warrants are identical to the Public Warrants (see Note 9) underlying the Units sold in the IPO, except that the Private Warrants and the Private Shares, ordinary shares issuable upon the exercise of the Private Warrants, are not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Warrants are exercisable on a cashless basis and are non-redeemable so long as they are held by the initial purchasers or their permitted transferees. If the Private Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Warrants are redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Representative’s Warrants are different from the Public and Private Warrants. The exercise price of the Representative’s Warrants is $12 and is non-redeemable. The Representative’s Warrants have been deemed compensation by the Financial Industry Regulatory Authority and were subject to a lock-up period. The Company considered the Representative’s Warrants as a liability because net cash settlement is assumed under ASC 815-40 as the Company is required to deliver registered shares to the purchasers of the Representative’s Warrants. Forward Share Purchase Liabilities On November 12, 2021, the Company entered into the FPA with Sea Otter, Mint Tower, Glazer and Meteora, which provided that such investors will not redeem 2,923,974 shares that they each hold in connection with the proposal to extend the date by which the Company had to consummate a Business Combination from November 24, 2021 to February 24, 2022 and the proposed Merger with JHD, and instead would each either hold such shares for a period of time following the consummation of the JHD Merger, at which time they would each have the right to sell them to East Stone at $10.41 per share, or would sell such shares on the open market during such time period at a market price of at least $10.26 per share. The Company has classified the FPA as a derivative liability. This financial instrument is subject to re-measurement at each balance sheet date. With each such re-measurement, the FPA asset or liability will be adjusted to fair value, with the change in derivative fair value recognized in the Company’s consolidated statement of operations. As such, the Company recorded a $3,723,000, $2,069,000 and $0 derivate liability related to the FPA as of November 24, 2021, December 31, 2021 and June 30, 2022, respectively, on the Company’s consolidated balance sheet. The FPA automatically terminated when the Second Business Combination did not close by February 24, 2022. As such the FPA liability was derecognized on February 24, 2022. Derivative liability - forward purchase agreement at November 24, 2021 $ 3,723,000 Change in fair value of derivate instrument related to forward share purchase (1,654,000 ) Derivative liability - forward share purchase at December 31, 2021 2,069,000 Derecognition and change in fair value of derivate instrument related to forward share purchase (2,069,000 ) Derivative liability - forward share purchase at June 30, 2022 $ — |
Shareholders_ Deficit
Shareholders’ Deficit | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS’ DEFICIT | NOTE 8. SHAREHOLDERS’ DEFICIT Preferred Shares The Company is authorized to issue an unlimited number of preferred shares, no par value, divided into five classes, Class A through Class E, each with such designation, rights and preferences as may be determined by a resolution of the Company’s board of directors to amend the Amended and Restated Memorandum and Articles of Association to create such designations, rights and preferences. As of June 30, 2022 and December 31, 2021, there were no preferred shares designated, issued or outstanding. Ordinary Shares The Company is authorized to issue an unlimited number of ordinary shares, no par value. Holders of the Company’s ordinary shares are entitled to one vote for each share. On November 24, 2021, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company had to consummate an initial Business Combination from November 24, 2021 to February 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 10,534,895 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $108.1 million (approximately $10.26 per share) to redeeming shareholders. On February 24, 2022, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company has to consummate an initial Business Combination from February 24, 2022 to August 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 361 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $3,704 (approximately $10.26 per share) to redeeming shareholders. As of June 30, 2022 and December 31, 2021, there were 3,903,500 shares issued and outstanding (excluding 3,264,744 and 3,265,105 shares subject to redemption, respectively). Rights Each holder of a right will receive one-tenth (1/10) of one ordinary share upon consummation of the Business Combination, even if the holder of such right redeemed all ordinary shares held by him, her or it in connection with the Business Combination or an amendment to the Company’s Amended and Restated Memorandum and Articles of Association with respect to the Company’s pre-Business Combination activities. No additional consideration will be required to be paid by a holder of rights in order to receive his, her or its additional ordinary shares upon consummation of a Business Combination as the consideration related thereto has been included in the unit purchase price paid for by investors in the IPO. The shares issuable upon exchange of the public rights will be freely tradable (except to the extent held by affiliates of the Company). |
Warrants _ Public and Private
Warrants – Public and Private | 6 Months Ended |
Jun. 30, 2022 | |
Warrants – Public and Private [Abstract] | |
WARRANTS – PUBLIC AND PRIVATE | NOTE 9. WARRANTS – PUBLIC AND PRIVATE The Public Warrants, warrants underlying Units sold in the IPO, 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) the consummation of a Business Combination or (b) twelve (12) months from the Effective Date. No Public Warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the ordinary shares issuable upon exercise of the Public Warrants and a current prospectus relating to such ordinary shares. Notwithstanding the foregoing, if a registration statement covering the ordinary shares issuable upon the exercise of the Public Warrants is not effective within 90 days from the consummation of a Business Combination, the holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise the Public Warrants on a cashless basis pursuant to an available exemption from registration under the Securities Act. If an exemption from registration is not available, holders will not be able to exercise their Public Warrants on a cashless basis. The Public Warrants will expire five years from the consummation of a Business Combination or earlier upon redemption or liquidation. The Public Warrant exercise price is adjusted, if (x) the Company issues additional ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.50 per ordinary share (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors), (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 the initial Business Combination, and (z) the volume weighted average trading price of the ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates the initial Business Combination (such price, the “Market Price”) is below $9.50 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the Market Price, and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the Market Price. The Company may call the warrants for redemption (excluding the Private Warrants, any outstanding Representative’s Warrants, and any warrants underlying units issued to the Sponsor, initial shareholders, officers, directors or their affiliates in payment of Working Capital Loans made to the Company), in whole and not in part, at a price of $0.01 per warrant: ● at any time while the warrants are exercisable, ● upon not less than 30 days’ prior written notice of redemption to each warrant holder, ● if, and only if, the reported last sale price of the ordinary shares equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations), for any 20 trading days within a 30 trading day period ending on the third trading business day prior to the notice of redemption to warrant holders, and ● if, and only if, there is a current registration statement in effect with respect to the issuance of the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. If the Company calls the warrants for redemption as described above, management will have the option to require all holders that wish to exercise the warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, the 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 warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the trust account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the trust account with respect to such warrants. Accordingly, the warrants may expire worthless. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 10. FAIR VALUE MEASUREMENTS Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. As of June 30, 2022 and December 31, 2021, the carrying values of prepaid expenses, accrued expenses, and loans and advances payable to related parties approximate their fair values due to the short-term nature of the instruments. At June 30, 2022 and December 31, 2021, assets held in the Trust Account were comprised of $33,541,649 and $33,504,825 in money market funds that primarily invested in U.S. Treasury securities which are presented at fair market value, respectively. As noted in Note 7, the Company has concluded that its Private Warrants and Representative’s Warrants should be presented as liabilities with subsequent fair value remeasurement. Accordingly, the fair value of the Private Warrants and Representative’s Warrants were classified as a Level 3 measurement. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021 and indicates the fair value of held to maturity securities as follows: Level June 30, December 31, Description Assets: Trust account – U.S. Treasury Securities Money Market Fund 1 $ 33,541,649 $ 33,504,825 Liabilities: Derivative Warrant Liability – Private Warrant 3 $ 786,000 $ 627,000 Derivative Warrant Liability – Representative’s Warrant 3 $ 2,792,000 $ 2,381,000 Derivative Liability - Forward Share Purchase 3 $ — $ 2,069,000 The fair value of the Private Warrants and the Representative’s Warrants were estimated using Black-Scholes model as of June 30, 2022 and December 31, 2021. For the three and six months ended June 30, 2022 the Company recognized an increase in the fair value of warrant liabilities of $1,019,000 and $570,000, respectively, presented as change in fair value of derivative warrant liabilities on the accompanying consolidated statement of operations. For the three and six months ended June 30, 2021 the Company recognized an decrease in the fair value of warrant liabilities of $18,900 and $35,600, respectively, presented as change in fair value of derivative warrant liabilities on the accompanying consolidated statement of operations. The estimated fair value of the Private Warrants and Representative’s Warrants is determined using Level 3 inputs. Inherent in these valuations are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its ordinary shares based on historical and implied volatilities of select peer companies as well as its own that matches the expected remaining life of the warrants. Significant increase and decreases in the volatility, in isolation, could lead to significant changes in valuation. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates remaining at zero. The estimated fair value of the forward share purchase is determined using Black-Scholes model as of June 30, 2022 and December 31, 2021. For the three and six months ended June 30, 2022, on the consolidated statement of operations, the Company recognized a decrease in the fair value of forward share purchase of $ 2,069,0000 The following table provides quantitative information regarding Level 3 fair value measurements inputs for the Company’s warrants at their measurement dates: As of As of Volatility 42.00 % 42.22 % Stock price 10.37 11.82 Expected life of the warrants to convert 5.40 4.65 Risk free rate 2.44 % 1.25 % Dividend yield 0.0 % 0.0 % The following table provides quantitative information regarding Level 3 fair value measurements inputs for the Company’s Forward Purchase Agreement at its measurement date: As of December 31, 2021 Volatility 46.72 % Stock price $ 11.82 Exercise Price $ 10.41 Remaining Life 0.39 Risk free rate 0.16 % The change in the fair value of the derivative warrant liabilities for the period ended June 30, 2022 and 2021, is summarized as follows: Derivative Warrant Liabilities at December 31, 2021 $ 3,008,000 Change in fair value of derivative warrant liabilities (449,000 ) Derivative warrant liabilities at March 31, 2022 $ 2,559,000 Change in fair value of derivative warrant liabilities 1,019,000 Derivative warrant liabilities at June 30, 2022 $ 3,578,000 Derivative Warrant Liabilities at December 31, 2020 $ 2,232,100 Change in fair value of derivative warrant liabilities (16,700 ) Derivative warrant liabilities at March 31, 2021 $ 2,215,400 Change in fair value of derivative warrant liabilities (18,900 ) Derivative warrant liabilities at June 30, 2021 $ 2,196,500 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
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 accompanying unaudited condensed consolidated financial statements were issued. Based upon this review, other than below, the Company did not identify any other subsequent events that would have required adjustment or disclosure in the accompanying unaudited condensed consolidated financial statements. On August 12, 2022, the Company and Pubco entered into a subscription agreement (the “August 2022 PIPE Subscription Agreement”) with a third investor (the “August 2022 PIPE Investor”), on substantially the same terms as the April 2022 PIPE and June 2022 PIPE, pursuant to which, among other things, the Pubco has agreed to issue and sell to the August 2022 PIPE Investor, and the August 2022 PIPE Investor has agreed to subscribe for and purchase, certain ordinary shares of the Pubco at the per share price for an aggregate purchase price of $200,000,000, in a private placement (the “August 2022 PIPE”). The purpose of the August 2022 PIPE is to raise additional capital for use by the combined company following the Closing of the Business Combination between the Company and ICONIQ. The August 2022 PIPE Subscription Agreement contains customary representations and warranties of each of the Company, Pubco and the August 2022 PIPE Investor, and customary conditions to Closing, including the consummation of the Business Combination between the Company and ICONIQ. Under the terms of the August 2022 PIPE Subscription Agreement, Pubco is obligated to file a registration statement to register for resale the August 2022 PIPE shares within 90 days of Closing (and to use its reasonable efforts to cause such registration statement to become effective within 150 days of the Closing, subject to certain exceptions). The securities sold in connection with the August 2022 PIPE were sold under the exemption from registration provided by Section 4(a)(2) of the Securities Act. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Description of Organization and Business Operations [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X promulgated by the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed, consolidated 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 consolidated 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 consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 as filed with the SEC on April 15, 2022, which contains the audited financial statements and notes thereto. The interim results for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future interim periods. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All intercompany balances and transactions have been eliminated on consolidation. |
Emerging Growth Company | 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 auditor 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 non-binding advisory vote on executive compensation and shareholder 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 accompanying unaudited condensed consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Use of Estimates | Use of Estimates The preparation of the accompanying unaudited condensed consolidated 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 accompanying unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. 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 accompanying unaudited condensed consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. In the accompanying unaudited condensed consolidated financial statements, management exercised a significant judgment in estimating the fair value of its warrant liabilities. The actual results could differ significantly from those estimates including the estimate of the fair value of its warrant liabilities. |
Ordinary Shares Subject to Possible Redemption | Ordinary Shares Subject to Possible Redemption The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in FASB Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity” (“ASC 480”). Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, as of June 30, 2022 and December 31, 2021, 3,264,744 and 3,265,105 ordinary shares subject to possible redemption are presented at redemption value as temporary equity, respectively, outside of the shareholders’ deficit section of the Company’s consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. On November 24, 2021, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company had to consummate an initial Business Combination from November 24, 2021 to February 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 10,534,895 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $108.1 million (approximately $10.26 per share) to redeeming shareholders. On February 24, 2022, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company has to consummate an initial Business Combination from February 24, 2022 to August 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 361 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $3,704 (approximately $10.26 per share) to redeeming shareholders. At June 30, 2022 and December 31, 2021, the ordinary shares subject to possible redemption reflected in the consolidated balance sheets are reconciled in the following table: |
Offering Costs | Offering Costs Total offering costs amounted to $4,154,255, including the fair value of the Representative’s Shares and Representative’s Warrants, at $1,035,000 and $1,640,028, respectively. Of the total $4,118,255 transaction cost, the cash transaction costs amounted to $3,083,255, of which $2,415,000 was underwriting fees, including $402,500 deferred underwriting commissions, payable at the consummation of the Business Combination (as described below), and $668,255 of other offering costs of legal, accounting and other expenses incurred through the IPO that are directly related to the IPO. All of the transaction costs were charged to the temporary equity of the Company upon completion of the IPO. |
Forward Share Purchase Agreements | Forward Share Purchase Agreements On November 12, 2021, the Company entered into the FPA with Sea Otter, Mint Tower, Glazer and Meteora, which provided that such investors would not redeem shares that they each hold in connection with the proposal to extend the date by which the Company had to consummate a Business Combination from November 24, 2021 to February 24, 2022 and the proposed Merger with JHD, and instead would each either hold such shares for a period of time following the consummation of the JHD Merger, at which time they would each have the right to sell them to East Stone at $10.41 per share, or will sell such shares on the open market during such time period at a market price of at least $10.26 per share. The Company accounts for the FPA as embedded contracts to the share purchase contracts with these Backstop Investors, and classifies the FPA as a liability in accordance with the guidance in ASC 480, because the FPA embody an obligation to redeem the Company’s outstanding shares at fixed amount of cash. The Company initially measures the financial liabilities at fair value, and changes in fair value of financial liabilities are subsequently charged to the unaudited condensed consolidated statements of operations. The FPA automatically terminated when the Business Combination did not close by February 24, 2022. As such the FPA liability was derecognized on February 24, 2022. |
Income Taxes | Income Taxes FASB ASC Topic 740, “Income Taxes” 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’s management determined that the British Virgin Islands is the Company’s only major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2022 and December 31, 2021, respectively. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. There is currently no taxation imposed on income by the government of the British Virgin Islands. In accordance with British Virgin Islands federal income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s accompanying unaudited condensed consolidated financial statements. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. |
Net loss per Ordinary Share | Net loss per Ordinary Share Net loss per ordinary share is computed by dividing net loss by the weighted average number of ordinary shares outstanding for the period. The calculation of diluted loss per share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, (ii) the exercise of the over-allotment option and (iii) Private Units, since the exercise of the warrants are contingent upon the occurrence of future events. The warrants derived from the public units are exercisable to purchase 6,900,000 ordinary shares and warrants derived from the Private Units are exercisable to purchase 175,000 ordinary shares, together 7,075,000 in the aggregate. The Company’s unaudited condensed consolidated statements of operations include a presentation of loss per share for ordinary shares, redeemable and non-redeemable. For the three months ended June 30, 2021, basic and diluted net loss per ordinary share, for redeemable and non-redeemable ordinary shares, is calculated as dividing the allocated net income for the three months ended June 30, 2021, by the weighted average number of 13,800,000 and 3,903,500 redeemable and non-redeemable ordinary shares outstanding for the periods, respectively, and resulted in basic and diluted net loss of $(0.05) and $(0.05) per redeemable and non-redeemable ordinary share, respectively. For the six months ended June 30, 2021, basic and diluted net loss per ordinary share, for redeemable and non-redeemable ordinary shares, is calculated as dividing the allocated net income for the six months ended June 30, 2021, by the weighted average number of 13,800,000 and 3,903,500 redeemable and non-redeemable ordinary shares outstanding, for the periods, respectively, and resulted in basic and diluted net loss of $(0.06) and $(0.06) per redeemable and non-redeemable ordinary share, respectively. For the three months ended June 30, 2022, basic and diluted net loss per ordinary share, for redeemable and non-redeemable ordinary shares, is calculated as dividing the allocated net income for the three months ended June 30, 2022, by the weighted average number of 3,264,744 and 3,903,500 redeemable ordinary shares outstanding for the periods, respectively, and resulted in basic and diluted net loss of $(0.21) and $(0.21) per redeemable and non-redeemable ordinary share, respectively. For the six months ended June 30, 2022, basic and diluted net loss per ordinary share, for redeemable and non-redeemable ordinary shares, is calculated as dividing the allocated net income for the six months ended June 30, 2022, by the weighted average number of 3,264,856 and 3,903,500 redeemable ordinary shares outstanding for the periods, respectively, resulted in basic and diluted net loss of $(0.18) and $(0.18) per redeemable and non-redeemable ordinary share, respectively. Non-redeemable ordinary shares include the Founder Shares, Representative’s Shares and ordinary shares underlying the Private Units, as these shares do not have any redemption features and do not participate in the income earned on the trust account. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage 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. |
Financial Instruments | Financial Instruments The Company analyses all financial instruments with features of both liabilities and equity under ASC 480 and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Pursuant to its IPO, the Company sold 13,800,000 Units (including underwriters’ full exercise over-allotment option 1,800,000 Unit) consisting with one ordinary share, one right (“Public Right”), and one Public Warrant (as defined in Note 3). Simultaneously with the closing of the IPO, the Company sold 350,000 Private Units, consisting of 350,000 Private Shares (as defined in Note 4), 350,000 Private Warrants (as defined in Note 4) and 350,000 Private Rights (as defined in Note 4). As compensation to the IPO underwriters, the Company issued 690,000 Representative’s Warrants to the Company’s underwriters (see Note 6). The Company accounted for its Public Warrants, Public Rights and Private Rights as equity instruments. The Company accounted for the Private Warrants and Representative’s Warrants as liability instruments. |
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 FASB ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying consolidated balance sheet, primarily due to their short-term nature, other than the warrant liabilities (see Note 10). |
Derivative Warrant Liabilities | Derivative Warrant Liabilities The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. Management evaluates all of its financial instruments, including issued warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and FASB ASC Topic 815-15, “Derivatives and Hedging—Embedded Derivatives Recognition.” The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. In accordance with FASB ASC Topic 825-10, “Financial Instruments,” offering costs attributable to the issuance of the derivative warrant liabilities are recognized in the unaudited condensed consolidated statement of operations as incurred. The Company sold 350,000 Private Warrants and issued 690,000 Representative’s Warrants in connection to its IPO (together “Liability Warrant”) (see Note 4 and Note 6). All of the Company’s outstanding Liability Warrants are recognized as derivative liabilities in accordance with FASB ASC Topic 815-40, 815-40 “Derivatives and Hedging — Contracts in Entity’s Own Equity” (“ASC 815-40”). Accordingly, The Company recognizes recognize the warrant instruments as liabilities at fair value and adjusts the instruments to fair value at each reporting period. The liabilities are subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in our unaudited condensed consolidated statements of operations. |
Derivative Liability of Forward Share Purchase | Derivative Liability of Forward Share Purchase On November 12, 2021, the Company entered into the FPA with Sea Otter, Mint Tower, Glazer and Meteora, which provided that such investors will not redeem shares 2,923,974 Public Shares, collectively and respectively, that they each hold in connection with the proposal to extend the date by which the Company has to consummate a Business Combination from November 24, 2021 to February 24, 2022 and the proposed Merger with JHD, and instead would each either hold such shares for a period of time following the consummation of the JHD Merger, at which time they would each have the right to sell them to the Company at $10.41 per share, or would sell such shares on the open market during such time period at a market price of at least $10.26 per share. All of the Company’s outstanding FPA is recognized as derivative liabilities in accordance with ASC 815-40. Accordingly, the Company recognizes the FPA as liabilities at fair value and adjusts the instruments to fair value at each reporting period. The FPA automatically terminated when the Second Business Combination did not close on February 24, 2022. As such the FPA liability was derecognized on February 24, 2022. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards There have been no recently issued accounting standards that are applicable to the Company. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Description of Organization and Business Operations [Abstract] | |
Schedule of ordinary shares subject to possible redemption reflected in the consolidated balance sheets is reconciled | Ordinary shares subject to possible redemption as of January 1, 2021 $ 138,000,000 Add: Accretion of carrying value of redemption value 3,588,000 Less: redemption of ordinary shares (108,088,023 ) Ordinary shares subject to possible redemption as of December 31, 2021 $ 33,499,977 Less: redemption of ordinary shares (3,704 ) Ordinary shares subject to possible redemption as of March 31, 2022 $ 33,496,273 Add: Accretion of carrying value of redemption value 45,376 Ordinary shares subject to possible redemption as of June 30, 2022 $ 33,541,649 |
Derivative Warrant Liabilitie_2
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities [Abstract] | |
Schedule of FPA liability | Derivative liability - forward purchase agreement at November 24, 2021 $ 3,723,000 Change in fair value of derivate instrument related to forward share purchase (1,654,000 ) Derivative liability - forward share purchase at December 31, 2021 2,069,000 Derecognition and change in fair value of derivate instrument related to forward share purchase (2,069,000 ) Derivative liability - forward share purchase at June 30, 2022 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements [Abstract] | |
Schedule of assets and liabilities that are measured at fair value | Level June 30, December 31, Description Assets: Trust account – U.S. Treasury Securities Money Market Fund 1 $ 33,541,649 $ 33,504,825 Liabilities: Derivative Warrant Liability – Private Warrant 3 $ 786,000 $ 627,000 Derivative Warrant Liability – Representative’s Warrant 3 $ 2,792,000 $ 2,381,000 Derivative Liability - Forward Share Purchase 3 $ — $ 2,069,000 |
Schedule of quantitative information regarding level 3 fair value measurements inputs | As of As of Volatility 42.00 % 42.22 % Stock price 10.37 11.82 Expected life of the warrants to convert 5.40 4.65 Risk free rate 2.44 % 1.25 % Dividend yield 0.0 % 0.0 % As of December 31, 2021 Volatility 46.72 % Stock price $ 11.82 Exercise Price $ 10.41 Remaining Life 0.39 Risk free rate 0.16 % |
Schedule of change in the fair value of the derivative warrant liabilities | Derivative Warrant Liabilities at December 31, 2021 $ 3,008,000 Change in fair value of derivative warrant liabilities (449,000 ) Derivative warrant liabilities at March 31, 2022 $ 2,559,000 Change in fair value of derivative warrant liabilities 1,019,000 Derivative warrant liabilities at June 30, 2022 $ 3,578,000 Derivative Warrant Liabilities at December 31, 2020 $ 2,232,100 Change in fair value of derivative warrant liabilities (16,700 ) Derivative warrant liabilities at March 31, 2021 $ 2,215,400 Change in fair value of derivative warrant liabilities (18,900 ) Derivative warrant liabilities at June 30, 2021 $ 2,196,500 |
Description of Organization a_2
Description of Organization and Business Operations (Details) - USD ($) | 1 Months Ended | 6 Months Ended | ||||||||||||
Nov. 12, 2021 | Aug. 24, 2022 | Apr. 21, 2022 | Feb. 24, 2022 | Jan. 31, 2022 | Nov. 24, 2021 | Aug. 23, 2021 | Jun. 30, 2021 | May 21, 2021 | Feb. 23, 2021 | Feb. 24, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | Aug. 20, 2021 | |
Description of Organization and Business Operations (Textual) | ||||||||||||||
Gross proceeds | $ 138,000,000 | |||||||||||||
Aggregate of ordinary shares (in Shares) | 3,450,000 | |||||||||||||
Offering costs including value | $ 4,154,255 | |||||||||||||
Total transactions cost | 4,154,255 | |||||||||||||
Cash transaction costs | 3,083,255 | |||||||||||||
Underwriting fees | 2,415,000 | |||||||||||||
Deferred underwriting fees | 402,500 | |||||||||||||
Other offering costs | $ 668,255 | |||||||||||||
Fair market value, percentage | 80% | |||||||||||||
Percentage of restricted redeeming shares | 15% | |||||||||||||
Business combination agreement, description | These lock-up agreements provide for a lock-up period commencing on the Closing Date and ending: with respect to shares held by the controlling shareholder of ICONIQ, 12-month anniversary of the Closing Date with respect to 50% of such shares, 18-month anniversary of the Closing Date with respect to 25% of such shares, 24-month anniversary of the Closing Date with respect to 25% of such shares, and with respect to the shares held by certain Founders and certain other Sellers, 6-month anniversary of the Closing Date with respect to 30% of such shares, and 1-year anniversary of the Closing Date with respect to 70% of such shares. | |||||||||||||
Aggregate of deposit amount | $ 1,380,000 | |||||||||||||
Trust account price per share (in Dollars per share) | $ 0.1 | |||||||||||||
Business combination aggregate amount | $ 2,760,000 | |||||||||||||
Aggregate per share (in Dollars per share) | $ 0.2 | |||||||||||||
Aggregate of deposit amount | $ 1,380,000 | |||||||||||||
Public price per share (in Dollars per share) | $ 0.1 | |||||||||||||
Principal amount | $ 1,380,000 | |||||||||||||
Cash paid aggregate amount | $ 471,459 | |||||||||||||
Price per share (in Dollars per share) | $ 10.26 | |||||||||||||
Redemption outstanding, percentage | 100% | |||||||||||||
Liquidation expense | $ 50,000 | |||||||||||||
Initially held in the trust account (in Dollars per share) | $ 10 | |||||||||||||
Public per share (in Dollars per share) | 10 | |||||||||||||
Per share value of the trust assets (in Dollars per share) | 10 | |||||||||||||
Promissory note amount | $ 200,000 | |||||||||||||
Converted notes price per unit (in Dollars per share) | $ 10 | |||||||||||||
Cash deposited in trust account | $ 1,380,000 | $ 1,380,000 | ||||||||||||
Issued price per share (in Dollars per share) | $ 10.41 | $ 0.1 | ||||||||||||
Loan amount | $ 2,760,000 | |||||||||||||
Promissory note loan payable | $ 200,000 | |||||||||||||
Aggregate amount | $ 200,000 | |||||||||||||
Market price per share (in Dollars per share) | $ 10.26 | |||||||||||||
Founder shares (in Shares) | 133,332 | |||||||||||||
Public shares (in Shares) | 2,923,974 | |||||||||||||
Founder share transfer agreements, description | On January 31, 2022, certain of the Backstop Investors entered into certain Founder Share transfer agreements (the “February 2022 Founder Share Transfer Agreements”) with the Sponsor to support a proposal for the February Extension. Pursuant to the February 2022 Founder Share Transfer Agreements, such Backstop Investors agreed to not request redemption of an aggregate of up to 600,000 ordinary shares of the Company in connection with the February Extension. In connection therewith, the Sponsor agreed to transfer to such Backstop Investors an aggregate of (i) 180,000 Founder Shares on or prior to the February 24, 2022 special meeting of shareholders to approve the February Extension, and (ii) 60,000 Founder Shares for each month past May 24, 2022 that the Business Combination has not yet closed, for a total of up to 360,000 Founder Shares to be received by such Backstop Investors to support the February Extension. | |||||||||||||
Operating bank account amount | $ 3,719 | |||||||||||||
Working capital loans | $ 471,459 | |||||||||||||
Aggregate amount | $ 1,000,000 | |||||||||||||
Drawn down | 700,000 | |||||||||||||
Trust account repay loaned description | Up to $1,500,000 of such notes may be convertible into additional Working Capital Units at a price of $10.00 per unit (which, for example, would result in the holders being issued 150,000 ordinary shares if $1,500,000 of notes were so converted as well as 150,000 rights to receive 15,000 shares and 150,000 warrants to purchase 75,000 shares). | |||||||||||||
Public price per share (in Dollars per share) | $ 10.26 | |||||||||||||
Representative's Shares [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Offering costs including value | $ 4,154,255 | |||||||||||||
Offering costs including value | 1,035,000 | |||||||||||||
Derivative warrant liability | $ 1,640,028 | |||||||||||||
Warrant [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Warrant exercise price (in Dollars per share) | $ 12 | |||||||||||||
Aggregate exercise price | $ 8,280,000 | |||||||||||||
Initial Public Offering [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Sold units (in Shares) | 13,800,000 | |||||||||||||
Sale of Stock (in Shares) | 13,800,000 | |||||||||||||
Initial public offering, description | Following the closing of the IPO, a total of $138,000,000 of the net proceeds from the IPO, the sale of the Private Units and the issuance of extension loans totaling $2,760,000 were placed in a trust account (“trust account”), which is invested only in U.S. government treasury bills, notes and bonds with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940, as amended (the “Investment Company Act”) and which invest solely in U.S. Treasuries. Except for all interest income that may be released to the Company to pay taxes, and up to $50,000 to pay dissolution expenses, none of the funds held in the trust account will be released until the earlier of: (1) the completion of the initial Business Combination within the required time period; (2) the Company’s redemption of 100% of the outstanding Public Shares if the Company has not completed an initial Business Combination in the required time period; and (3) the redemption of any Public Shares properly tendered in connection with a shareholder vote to amend the Company’s Amended and Restated Memorandum and Articles of Association (A) to modify the substance or timing of the Company’s obligation to redeem 100% of the Public Shares if the Company does not complete its initial Business Combination within the required time period or (B) with respect to any other provision relating to shareholders’ rights or pre-Business Combination activity. | |||||||||||||
Initial Public Offering [Member] | Representative's Shares [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Aggregate of ordinary shares (in Shares) | 103,500 | |||||||||||||
Initial Public Offering [Member] | Warrant [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Warrants issued (in Shares) | 690,000 | |||||||||||||
Over-Allotment Option [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Sold units (in Shares) | 1,800,000 | |||||||||||||
Sale of Stock (in Shares) | 1,800,000 | |||||||||||||
Private Placement [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Gross proceeds | $ 3,500,000 | |||||||||||||
Sale of Stock (in Shares) | 350,000 | |||||||||||||
Price per share (in Dollars per share) | $ 10 | |||||||||||||
Forecast [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Redeem of the outstanding, percentage | 100% | |||||||||||||
Glazer’s Agreement [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Founder shares (in Shares) | 45,000 | |||||||||||||
Business Combination [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Outstanding voting, percentage | 50% | |||||||||||||
Net tangible assets of business combination | $ 5,000,001 | |||||||||||||
Business combination, description | Additionally, subject to certain limited exceptions, the initial shareholders agreed to escrow (and not transfer any ownership interest in) their Founder Shares, excluding any Units or shares comprising Units acquired by the initial shareholders in the Initial Public Offering or in the open market: (i) with respect to 50% of the Founder Shares for a period ending on the earlier of the six month anniversary of the Business Combination or the date on which the closing price of the ordinary shares exceeds $12.50 for any 20 trading days within a 30-trading day period following the closing of the Business Combination and (ii) with respect to the other 50% of the Founder Shares for a period ending on the six month anniversary of the closing of the Business Combination, unless approved by the Company’s public shareholders. | |||||||||||||
Cash paid aggregate amount | $ 3,704 | $ 108,100,000 | ||||||||||||
Price per share (in Dollars per share) | $ 10.26 | |||||||||||||
Cash deposited in trust account | $ 1,380,000 | |||||||||||||
Issued price per share (in Dollars per share) | $ 0.1 | |||||||||||||
Outstanding public share percentage | 100% | |||||||||||||
Business Combination [Member] | Ordinary Shares [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Redeem aggregate, ordinary shares (in Shares) | 10,534,895 | |||||||||||||
Initial Business Combination [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Business combination, description | On November 24, 2021, the Company held a special meeting of shareholders and approved to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the date by which the Company had to consummate an initial Business Combination from November 24, 2021 to February 24, 2022. In connection with the approval of the extension, shareholders elected to redeem an aggregate of 10,534,895 ordinary shares, of which the Company paid cash from the trust account in the aggregate amount of approximately $108.1 million (approximately $10.26 per share) to redeeming shareholders. | |||||||||||||
Initial Business Combination [Member] | Founder Shares [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Business combination agreement, description | The Sponsor and the other initial shareholders (collectively, “initial shareholders”) have agreed (A) to vote their Founder Shares (as defined in Note 5), Private Shares (as defined in Note 4) and any Public Shares held by them in favor of any proposed initial Business Combination, (B) not to propose any amendment to the Company’s memorandum and articles of association (i) to modify the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete its initial Business Combination within 15 months (or up to 21 months) from the closing of the IPO or (ii) with respect to any other provision relating to shareholders’ rights or pre-initial Business Combination activity, unless the Company provides its public shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding Public Shares, (C) not to redeem any shares (including the Founder Shares and Private Units (and underlying securities) into the right to receive cash from the trust account in connection with a shareholder vote to approve the proposed initial Business Combination (or to sell any shares in a tender offer in connection with a proposed Business Combination if the Company does not seek shareholder approval in connection therewith) or a vote to amend the provisions of the Company’s memorandum and articles of association relating to shareholders’ rights or pre-Business Combination activity and (D) that the Founder Shares and Private Units (and underlying securities) shall not participate in any liquidating distribution upon winding up if a Business Combination is not consummated, until all of the claims of any redeeming shareholders and creditors are fully satisfied (and then only from funds held outside the trust account). | |||||||||||||
Liquidity Going Concern [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Cash and marketable securities held in trust | $ 33,541,649 | |||||||||||||
Business Combination [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Cash transaction costs | $ 300,000 | |||||||||||||
Business combination, description | Pursuant to the Company’s agreement with I-Bankers, (i) if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is at least 50% of the gross proceeds of the IPO, then the advisory fees payable to I-Bankers will be 2.75% of the cash remaining in the trust account, (ii) if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is less than 50% of the gross proceeds of the IPO, then the advisory fees payable to I-Bankers will be 1.375% of the gross proceeds of the IPO, and (iii) notwithstanding (i) and (ii) above, if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is less than $20,000,000, then the advisory fees payable to I-Bankers will be paid in a combination of cash and securities in the same proportion as the cash and securities consideration paid to the target and its shareholders in the Business Combination, provided that in no event shall the cash portion of such advisory fees be less than $1,000,000. | |||||||||||||
Business combination per share (in Dollars per share) | $ 10 | |||||||||||||
Converted price (in Dollars per share) | $ 10.26 | |||||||||||||
Double Ventures Holdings Limited [Member] | Private Placement [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Sale of Stock (in Shares) | 167,000 | |||||||||||||
Hua Mao and Cheng Zhao [Member] | Private Placement [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Sale of Stock (in Shares) | 108,000 | |||||||||||||
I-Bankers Securities, Inc. [Member] | Initial Public Offering [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Sale of Stock (in Shares) | 75,000 | |||||||||||||
I-Bankers [Member] | Representative's Shares [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Sale of Stock (in Shares) | 90,562 | |||||||||||||
I-Bankers [Member] | Warrant [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Warrants issued (in Shares) | 601,500 | |||||||||||||
EarlyBird Capital, Inc. [Member] | Representative's Shares [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Sale of Stock (in Shares) | 12,938 | |||||||||||||
EarlyBird Capital, Inc. [Member] | Warrant [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Warrants issued (in Shares) | 88,500 | |||||||||||||
Chunyi Hao [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Promissory note amount | $ 500,000 | |||||||||||||
Trust Account [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Cash deposited in trust account | $ 3,704 | $ 1,380,000 | ||||||||||||
Backstop Arrangements [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Aggregate shares (in Shares) | 974,658 | |||||||||||||
Founder shares (in Shares) | 44,444 | |||||||||||||
Public shares (in Shares) | 324,886 | |||||||||||||
Founder Shares [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Founder shares (in Shares) | (1,725,000) | |||||||||||||
Aggregate founder shares (in Shares) | 133,332 | |||||||||||||
JHD Merger [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Founder shares (in Shares) | 88,332 | |||||||||||||
Founder Shares Transfer Agreements [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Founder shares (in Shares) | 133,332 | |||||||||||||
Forfeiture Shares [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Forfeiture shares (in Shares) | 1,725,000 | |||||||||||||
Forfeiture Shares [Member] | Business Combination [Member] | ||||||||||||||
Description of Organization and Business Operations (Textual) | ||||||||||||||
Forfeiture shares, description | The Founder Share Letter provided, inter alia, that up to 1,725,000 ordinary shares (the “Forfeiture Shares”) would be subject to forfeiture in the event that the Company did not have at least $100 million in cash at the closing of the JHD Merger, with the number of such shares to be forfeit determined on a sliding scale depending upon the amount of the cash shortfall, if any, with the entire amount of the 1,725,000 shares subject to forfeiture if the Company’s cash at closing was $70 million or less. Under the terms of the Letter Agreement Amendment, the Company, the Primary Initial Shareholders, JHD, JHD Pubco and the Primary Seller agreed that the 1,725,000 Forfeiture Shares would be exchanged for an equivalent number of JHD Pubco ordinary shares (“Forfeiture Replacement Shares”) at the Closing and that such Forfeiture Replacement Shares would be distributed as follows: (A) 138,000 Forfeiture Replacement Shares to the Primary Seller, (B) to Glazer, Sea Otter and Mint Tower, up to 450,000 Forfeiture Replacement Shares in consideration for their having entered into the FPA and the Founder Share Transfer Agreements and (C) out of the remaining Forfeiture Replacement Shares, (i) to a shareholder of the Sponsor who is not a director or officer of the Purchaser) up to 500,000 Forfeiture Replacement Shares and (ii) to the extent of any remaining Forfeiture Replacement Shares (a) 50% to Charlie Hao and Xiaoma (Sherman) Lu and (b) 50% to the Primary Seller. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Nov. 12, 2021 | Nov. 24, 2021 | Feb. 24, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Ordinary shares subject to possible redemption | 3,264,744 | 3,264,744 | 3,265,105 | |||||
Aggregate ordinary shares | 10,534,895 | 361 | ||||||
Trust account aggregate amount (in Dollars) | $ 108,100,000 | $ 3,704 | ||||||
Price per share (in Dollars per share) | $ 10.26 | $ 10.26 | ||||||
Offering costs (in Dollars) | $ 4,154,255 | |||||||
Fair value of the representative's shares (in Dollars) | $ 1,035,000 | 1,035,000 | ||||||
Fair value of the representative's warrants (in Dollars) | 1,640,028 | 1,640,028 | ||||||
Transaction costs (in Dollars) | 4,118,255 | |||||||
Cash transaction cost (in Dollars) | 3,083,255 | 3,083,255 | ||||||
Underwriting fees (in Dollars) | 2,415,000 | |||||||
Deferred underwriting expenses (in Dollars) | 402,500 | |||||||
Other offering costs (in Dollars) | $ 668,255 | $ 668,255 | ||||||
East stone per share (in Dollars per share) | $ 10.41 | |||||||
Market price per share (in Dollars per share) | $ 10.26 | |||||||
Purchase of shares | 6,900,000 | |||||||
Redeemable ordinary shares basic | 3,264,744 | 13,800,000 | 3,264,856 | 13,800,000 | ||||
Redeemable ordinary shares diluted | 3,903,500 | 3,903,500 | 3,903,500 | 3,903,500 | ||||
Federal depository insurance coverage (in Dollars) | $ 250,000 | |||||||
Description of financial instruments | Pursuant to its IPO, the Company sold 13,800,000 Units (including underwriters’ full exercise over-allotment option 1,800,000 Unit) consisting with one ordinary share, one right (“Public Right”), and one Public Warrant (as defined in Note 3). Simultaneously with the closing of the IPO, the Company sold 350,000 Private Units, consisting of 350,000 Private Shares (as defined in Note 4), 350,000 Private Warrants (as defined in Note 4) and 350,000 Private Rights (as defined in Note 4). As compensation to the IPO underwriters, the Company issued 690,000 Representative’s Warrants to the Company’s underwriters (see Note 6). The Company accounted for its Public Warrants, Public Rights and Private Rights as equity instruments. The Company accounted for the Private Warrants and Representative’s Warrants as liability instruments. | |||||||
Public shares | 2,923,974 | |||||||
Private Warrants [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Number of private warrants shares | 350,000 | |||||||
Representative Warrants [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Number of private warrants shares | 690,000 | |||||||
Private Placement [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Aggregate ordinary shares | 7,075,000 | |||||||
Purchase of shares | 175,000 | |||||||
Number of private warrants shares | 350,000 | |||||||
Redeemable Ordinary Shares [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Ordinary per share, basic (in Dollars per share) | $ (0.21) | $ (0.05) | $ (0.18) | $ (0.06) | ||||
Ordinary per share, basic and diluted (in Dollars per share) | $ (0.21) | $ (0.05) | $ (0.18) | $ (0.06) | ||||
JHD Merger [Member] | ||||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||||
Price per share (in Dollars per share) | $ 10.41 | |||||||
Market price per share (in Dollars per share) | $ 10.26 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of ordinary shares subject to possible redemption reflected in the consolidated balance sheets is reconciled - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Schedule Of Ordinary Shares Subject To Possible Redemption Reflected In The Consolidated Balance Sheets Is Reconciled Abstract | |||
Ordinary shares subject to possible redemption | $ 33,496,273 | $ 33,499,977 | $ 138,000,000 |
Add: Accretion of carrying value of redemption value | 45,376 | 3,588,000 | |
Less: redemption of ordinary shares | (3,704) | (108,088,023) | |
Ordinary shares subject to possible redemption | $ 33,541,649 | $ 33,496,273 | $ 33,499,977 |
Initial Public Offering (Detail
Initial Public Offering (Details) | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Initial Public Offering (Details) [Line Items] | |
Business combination, description | Each right entitles the holder thereof to receive one-tenth (1/10) of one ordinary share upon the consummation of the Business Combination. |
Public warrant, description | Each Public Warrant entitles the holder thereof to purchase one-half (1/2) of one ordinary share at an exercise price of $11.50 per full share (subject to certain adjustments) (see Note 9). |
IPO [Member] | |
Initial Public Offering (Details) [Line Items] | |
Sold units | 13,800,000 |
Purchase price per unit | $ / shares | $ 10 |
Over-Allotment Option [Member] | |
Initial Public Offering (Details) [Line Items] | |
Sold units | 1,800,000 |
Private Placement (Details)
Private Placement (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Private Placement (Details) [Line Items] | |
Aggregate of purchase shares | 350,000 |
Aggregate purchase price (in Dollars) | $ | $ 3,500,000 |
Private Placement [Member] | |
Private Placement (Details) [Line Items] | |
Business combination, description | Each Private Right entitles the holder thereof to receive one-tenth (1/10) of one ordinary share upon the consummation of the Business Combination. Each Private Warrant entitles the holder thereof to purchase one-half (1/2) of one ordinary share at an exercise price of $11.50 per full share. |
Sponsor [Member] | Anchor Investors [Member] | |
Private Placement (Details) [Line Items] | |
Aggregate of purchase shares | 275,000 |
I-Bankers [Member] | |
Private Placement (Details) [Line Items] | |
Aggregate of purchase shares | 75,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||
Jan. 31, 2022 | Nov. 24, 2021 | Feb. 23, 2021 | Oct. 31, 2018 | Jun. 30, 2022 | Dec. 31, 2021 | Feb. 19, 2020 | |
Related Party Transactions (Details) [Line Items] | |||||||
Founder shares (in Shares) | 3,450,000 | ||||||
Subject to forfeiture shares (in Shares) | 450,000 | ||||||
Founder shares no longer subject to forfeiture (in Shares) | 450,000 | ||||||
Related party loan due | $ 471,459 | $ 300,000 | |||||
Mr. Hao [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Promissory note working capital loan | $ 500,000 | ||||||
Principal amount | $ (500,000) | ||||||
Service Party [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Aggregate for office space, utilities and secretarial and administrative services | $ 120,000 | ||||||
Business Combination [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Business combination, description | Additionally, subject to certain limited exceptions, the initial shareholders agreed to escrow (and not transfer any ownership interest in) their Founder Shares, excluding any Units or shares comprising Units acquired by the initial shareholders in the Initial Public Offering or in the open market: (i) with respect to 50% of the Founder Shares for a period ending on the earlier of the six month anniversary of the Business Combination or the date on which the closing price of the ordinary shares exceeds $12.50 for any 20 trading days within a 30-trading day period following the closing of the Business Combination and (ii) with respect to the other 50% of the Founder Shares for a period ending on the six month anniversary of the closing of the Business Combination, unless approved by the Company’s public shareholders. | ||||||
Backstop Investors entered, description | On January 31, 2022, certain of the Backstop Investors entered into the February 2022, Founder Share Transfer Agreements with the Sponsor to support a proposal for the February Extension. Pursuant to the February 2022, Founder Share Transfer Agreements, such Backstop Investors agreed to not request redemption of an aggregate of up to 600,000 ordinary shares of the Company in connection with the February Extension. In connection therewith, the Sponsor agreed to transfer to such Backstop Investors an aggregate of 180,000 Founder Shares on or prior to the February 24, 2022 special meeting of shareholders to approve the February Extension, and 60,000 Founder Shares for each month past May 24, 2022, that the Third Business Combination has not yet closed, for a total of up to 360,000 Founder Shares to be received by such Backstop Investors to support the February Extension. The transfer of the Founder Shares to the investors is in the scope of SAB topic 5T as an inducement to the investors to not liquidate and approve the extension of the SPAC life. The fair value of the 180,000 shares granted to the Company’s investors was $1,900,800 based on the closing price on the grant date. | ||||||
Founder Shares [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Ordinary shares, issued (in Shares) | 1,437,500 | ||||||
Aggregate purchase price | $ 25,000 | ||||||
Purchase price, per share (in Dollars per share) | $ 0.017 | ||||||
Share dividend, description | In January and February 2020, the Company effected 2 for 1 and 1.2 for 1 share dividends, respectively, for each ordinary share outstanding, resulting in the initial shareholders owning an aggregate of 3,450,000 Founder Shares. | ||||||
Meteora [Member] | Glazer [Member] | Mint Tower [Member] | |||||||
Related Party Transactions (Details) [Line Items] | |||||||
Shares transferred to shareholders (in Shares) | 135,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Apr. 21, 2022 | Feb. 24, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 15, 2022 | Aug. 20, 2021 | May 21, 2021 | |
Commitments and Contingencies (Details) [Line Items] | |||||||
Promissory amount | $ 200,000 | ||||||
Pay expense | $ 200,000 | 200,000 | |||||
Notes payable | 200,000 | 200,000 | |||||
Cash deposited in trust account | $ 1,380,000 | $ 1,380,000 | |||||
Extension loan | 2,760,000 | $ 2,760,000 | |||||
Deferred underwriting commission | 402,500 | ||||||
Fair value shares (in Shares) | 1,640,028 | ||||||
Exercise warrants, term | 5 years | ||||||
Fair value per warrant (in Dollars per share) | $ 2.38 | ||||||
Aggregate amount | $ 200,000,000 | ||||||
Amount of withdraw | $ 568,000 | ||||||
Lock-Up agreements, description | These lock-up agreements provide for a lock-up period commencing on the Closing Date and ending: with respect to shares held by the controlling shareholder of ICONIQ, 12-month anniversary of the Closing Date with respect to 50% of such shares, 18-month anniversary of the Closing Date with respect to 25% of such shares, 24-month anniversary of the Closing Date with respect to 25% of such shares, and with respect to the shares held by certain Founders and certain other Sellers, 6-month anniversary of the Closing Date with respect to 30% of such shares, and 1-year anniversary of the Closing Date with respect to 70% of such shares. | ||||||
Representative's Shares [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Aggregate of issued shares (in Shares) | 103,500 | ||||||
Representatives Warrants [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Fair value shares (in Shares) | 1,640,028 | ||||||
Aggregate of warrants shares (in Shares) | 690,000 | ||||||
Exercisable price per share (in Dollars per share) | $ 12 | ||||||
Aggregate share issued (in Shares) | 690,000 | ||||||
Fair value per warrant (in Dollars per share) | $ 2.38 | ||||||
Minimum [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Warrants grant periods | 5 years | ||||||
Maximum [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Warrants grant periods | 7 years | ||||||
IPO [Member] | Representative's Shares [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Price per share (in Dollars per share) | $ 10 | ||||||
Fair value shares (in Shares) | 103,500 | ||||||
Fair value expenses of IPO | $ 1,035,000 | ||||||
Private Placement [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Aggregate amount | $ 200,000,000 | ||||||
Class A ordinary shares [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Converted into percentage | 90% | ||||||
Contingent interest rate percentage | 10% | ||||||
ICONIQ [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Converstion price per share (in Dollars per share) | $ 10.26 | ||||||
Business Combination [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Business combination marketing agreement, description | Pursuant to the Company’s agreement with I-Bankers, (i) if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is at least 50% of the gross proceeds of the IPO, then the advisory fees payable to I-Bankers will be 2.75% of the cash remaining in the trust account, (ii) if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is less than 50% of the gross proceeds of the IPO, then the advisory fees payable to I-Bankers will be 1.375% of the gross proceeds of the IPO, and (iii) notwithstanding (i) and (ii) above, if the amount of cash held in the trust account immediately prior to the Business Combination, after redemptions, is less than $20,000,000, then the advisory fees payable to I-Bankers will be paid in a combination of cash and securities in the same proportion as the cash and securities consideration paid to the target and its shareholders in the Business Combination, provided that in no event shall the cash portion of such advisory fees be less than $1,000,000. | ||||||
Amount paid to shareholders of ICONIQ | $ 2,500,000,000 | ||||||
Converstion price per share (in Dollars per share) | $ 10.26 | ||||||
Third Business Combination Agreement [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Aggregate amount | $ 1,000,000 | ||||||
First tranche | 300,000 | ||||||
Second tranche | $ 700,000 | ||||||
First tranche anniversary year | 1 year | ||||||
Affiliated Entity [Member] | |||||||
Commitments and Contingencies (Details) [Line Items] | |||||||
Cash deposited in trust account | $ 2,760,000 |
Derivative Warrant Liabilitie_3
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities (Details) - USD ($) | Nov. 12, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | Nov. 24, 2021 |
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities (Details) [Line Items] | ||||
Public shares | 2,923,974 | |||
Per share | $ 10.41 | |||
Market price per share | $ 10.26 | |||
Private Warrant [Member] | ||||
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities (Details) [Line Items] | ||||
Warrants outstanding | 350,000 | 690,000 | ||
Representative Warrant [Member] | ||||
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities (Details) [Line Items] | ||||
Exercise price | $ 12 | |||
FPA [Member] | ||||
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities (Details) [Line Items] | ||||
Derivative liabilities | $ 0 | $ 2,069,000 | $ 3,723,000 |
Derivative Warrant Liabilitie_4
Derivative Warrant Liabilities and Derivative Forward Share Purchase Liabilities (Details) - Schedule of FPA liability - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 | Nov. 24, 2021 |
Schedule Of Fpa Liability Abstract | |||
Derivative liability forward purchase agreement | $ 3,723,000 | ||
Change in fair value of derivate instrument related to forward share purchase | $ (1,654,000) | ||
Derivative liability forward share purchase | $ 2,069,000 | ||
Derecognition and change in fair value of derivate instrument related to forward share purchase | $ (2,069,000) |
Shareholders_ Deficit (Details)
Shareholders’ Deficit (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Feb. 24, 2022 | Nov. 24, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | ||||
Aggregate of ordinary shares | 361 | 10,534,895 | ||
Approximate aggregate amount (in Dollars) | $ 3,704 | $ 108,100,000 | ||
Aggregate price per share (in Dollars per share) | $ 10.26 | $ 10.26 | ||
Ordinary shares, shares issued | 3,903,500 | 3,903,500 | ||
Ordinary shares, shares outstanding | 3,903,500 | 3,903,500 | ||
Ordinary shares subject to possible redemption | 3,264,744 | |||
(in Dollars) | $ 3,265,105 | |||
Rights, description | Each holder of a right will receive one-tenth (1/10) of one ordinary share upon consummation of the Business Combination, even if the holder of such right redeemed all ordinary shares held by him, her or it in connection with the Business Combination or an amendment to the Company’s Amended and Restated Memorandum and Articles of Association with respect to the Company’s pre-Business Combination activities. |
Warrants _ Public and Private (
Warrants – Public and Private (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Warrants – Public and Private [Abstract] | |
Effective date of registration period | 12 months |
Consummation of business combination term | 90 days |
Expire of public warrants term | 5 years |
Public and private warrants, description | The Public Warrant exercise price is adjusted, if (x) the Company issues additional ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination at an issue price or effective issue price of less than $9.50 per ordinary share (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors), (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 the initial Business Combination, and (z) the volume weighted average trading price of the ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates the initial Business Combination (such price, the “Market Price”) is below $9.50 per share, the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the Market Price, and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the Market Price. |
Warrants, description | The Company may call the warrants for redemption (excluding the Private Warrants, any outstanding Representative’s Warrants, and any warrants underlying units issued to the Sponsor, initial shareholders, officers, directors or their affiliates in payment of Working Capital Loans made to the Company), in whole and not in part, at a price of $0.01 per warrant: ●at any time while the warrants are exercisable, ●upon not less than 30 days’ prior written notice of redemption to each warrant holder, ●if, and only if, the reported last sale price of the ordinary shares equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, reorganizations and recapitalizations), for any 20 trading days within a 30 trading day period ending on the third trading business day prior to the notice of redemption to warrant holders, and ●if, and only if, there is a current registration statement in effect with respect to the issuance of the ordinary shares underlying such warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value Measurements [Abstract] | |||||
Assets held in trust account | $ 33,541,649 | $ 33,541,649 | $ 33,504,825 | ||
Fair value of warrant liabilities | 1,019,000 | 570,000 | |||
Fair value of warrant liabilities | $ 18,900 | $ 35,600 | |||
Fair value of forward share purchase | $ 20,690,000 | $ 20,690,000 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of assets and liabilities that are measured at fair value - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Level 1 [Member] | ||
Assets: | ||
Trust account – U.S. Treasury Securities Money Market Fund | $ 33,541,649 | $ 33,504,825 |
Level 3 [Member] | ||
Liabilities: | ||
Derivative Warrant Liability – Private Warrant | 786,000 | 627,000 |
Derivative Warrant Liability – Representative’s Warrant | 2,792,000 | 2,381,000 |
Derivative Liability - Forward Share Purchase | $ 2,069,000 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Schedule of quantitative information regarding level 3 fair value measurements inputs - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Volatility | 42% | 42.22% |
Stock price (in Dollars per share) | $ 10.37 | $ 11.82 |
Expected life of the warrants to convert | 5 years 4 months 24 days | 4 years 7 months 24 days |
Risk free rate | 2.44% | 1.25% |
Dividend yield | 0% | 0% |
Purchase Agreement [Member] | ||
Defined Benefit Plan, Plan Assets, Level 3 Reconciliation [Line Items] | ||
Volatility | 46.72% | |
Stock price (in Dollars per share) | $ 11.82 | |
Exercise Price (in Dollars per share) | $ 10.41 | |
Expected life of the warrants to convert | 4 months 20 days | |
Risk free rate | 0.16% |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details) - Schedule of change in the fair value of the derivative warrant liabilities - USD ($) | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Schedule Of Change In The Fair Value Of The Derivative Warrant Liabilities Abstract | ||||
Derivative Warrant Liabilities, beginning of the period | $ 2,559,000 | $ 3,008,000 | $ 2,215,400 | $ 2,232,100 |
Change in fair value of derivative warrant liabilities | 1,019,000 | (449,000) | (18,900) | (16,700) |
Derivative Warrant Liabilities,Endingof the period | $ 3,578,000 | $ 2,559,000 | $ 2,196,500 | $ 2,215,400 |
Subsequent Events (Details)
Subsequent Events (Details) | Aug. 12, 2022 USD ($) |
Private Placement [Member] | Subsequent Event [Member] | |
Subsequent Events (Details) [Line Items] | |
Aggregate purchase price amount | $ 200,000,000 |