Document and Entity Information
Document and Entity Information - USD ($) | 7 Months Ended | ||
Dec. 31, 2019 | Mar. 27, 2020 | Jun. 30, 2019 | |
Document And Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Gores Holdings IV, Inc. | ||
Entity Central Index Key | 0001783398 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | true | ||
Entity File Number | 001-39189 | ||
Entity Address, Address Line One | 9800 Wilshire Blvd. | ||
Entity Address, City or Town | Beverly Hills | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90212 | ||
Entity Tax Identification Number | 84-2124167 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Public Float | $ 0 | ||
Class A Common Stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 42,500,000 | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | ||
Trading Symbol | GHIV | ||
Security Exchange Name | NASDAQ | ||
Class F Common Stock | |||
Document And Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 10,625,000 | ||
Units | |||
Document And Entity Information [Line Items] | |||
Title of 12(b) Security | Units, each consisting of one share of Class A common stock and one-fourth of one warrant | ||
Trading Symbol | GHIVU | ||
Security Exchange Name | NASDAQ | ||
Warrants | |||
Document And Entity Information [Line Items] | |||
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share | ||
Trading Symbol | GHIVW | ||
Security Exchange Name | NASDAQ |
BALANCE SHEET
BALANCE SHEET | Dec. 31, 2019USD ($) |
CURRENT ASSETS: | |
Cash and cash equivalents | $ 1,120 |
Deferred offering costs associated with proposed public offering | 411,374 |
Total current assets | 412,494 |
Total assets | 412,494 |
Current liabilities: | |
Accrued expenses, formation and offering costs | 274,666 |
State franchise tax accrual | 1,830 |
Notes and advances payable – related party | 150,000 |
Total current liabilities | 426,496 |
Total liabilities | 426,496 |
Commitments and Contingencies | |
Stockholder’s equity: | |
Preferred stock, $0.0001 par value; 1,000,000 shares authorized, none issued or outstanding | |
Additional paid-in-capital | 23,850 |
Deficit accumulated | (39,002) |
Total stockholder's equity | (14,002) |
Total liabilities and stockholder’s equity | 412,494 |
Class F Common Stock | |
Stockholder’s equity: | |
Common stock value | 1,150 |
Total stockholder's equity | $ 1,150 |
BALANCE SHEET (Parenthetical)
BALANCE SHEET (Parenthetical) | Dec. 31, 2019$ / sharesshares |
Preferred stock, par value | $ / shares | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Common stock, shares authorized | 220,000,000 |
Class A Common Stock | |
Common stock, par value | $ / shares | $ 0.0001 |
Common stock, shares authorized | 200,000,000 |
Common stock, shares issued | 0 |
Common stock, shares outstanding | 0 |
Class F Common Stock | |
Common stock, par value | $ / shares | $ 0.0001 |
Common stock, shares authorized | 20,000,000 |
Common stock, shares issued | 11,500,000 |
Common stock, shares outstanding | 11,500,000 |
STATEMENT OF OPERATIONS
STATEMENT OF OPERATIONS | 7 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Income Statement [Abstract] | |
Professional fees and other expenses | $ (37,172) |
State franchise taxes, other than income tax | (1,830) |
Loss from operations | (39,002) |
Net loss | $ (39,002) |
Weighted average common shares outstanding | |
Basic and diluted | shares | 11,500,000 |
Net loss per common share: | |
Basic and diluted | $ / shares | $ 0 |
STATEMENT OF CHANGES IN STOCKHO
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY - 7 months ended Dec. 31, 2019 - USD ($) | Total | Sponsor | Class F Common Stock | Class F Common StockSponsor | Additional Paid-in Capital | Additional Paid-in CapitalSponsor | Deficit Accumulated |
Beginning Balance at Jun. 12, 2019 | $ 0 | $ 0 | $ 0 | $ 0 | |||
Beginning Balance (in shares) at Jun. 12, 2019 | 0 | ||||||
Sale of Class F common stock to Sponsor in June 2019 | $ 25,000 | $ 1,150 | $ 23,850 | ||||
Sale of common stock to Sponsor in June 2019 (in shares) | 11,500,000 | ||||||
Net loss | (39,002) | (39,002) | |||||
Ending Balance at Dec. 31, 2019 | $ (14,002) | $ 1,150 | $ 23,850 | $ (39,002) | |||
Ending Balance (in shares) at Dec. 31, 2019 | 11,500,000 |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS | 7 Months Ended |
Dec. 31, 2019USD ($) | |
Cash flows from operating activities: | |
Net loss | $ (39,002) |
Changes in state franchise tax accrual | 1,830 |
Changes in deferred offering costs associated with proposed public offering | (411,374) |
Changes in accrued expenses, formation and offering costs | 274,666 |
Net cash used by operating activities | (173,880) |
Cash flows from financing activities: | |
Proceeds from notes and advances payable – related party | 150,000 |
Proceeds from sale of Class F common stock to Sponsor | 25,000 |
Net cash provided by financing activities | 175,000 |
Increase in cash | 1,120 |
Cash at end of period | 1,120 |
Supplemental disclosure of non-cash financing activities: | |
Offering costs included in accrued expenses | $ 270,666 |
Organization and Business Opera
Organization and Business Operations | 7 Months Ended |
Dec. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Business Operations | 1. Organization and Business Operations Organization and General Gores Holdings IV, Inc. (the “Company”) was incorporated in Delaware on June 12, 2019. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar Business Combination with one or more businesses (the “Business Combination”). The Company has neither engaged in any operations nor generated any revenue to date. The Company’s management has broad discretion with respect to the Business Combination, but intends to focus our search for a target business in the consumer products and services industries. The Company’s Sponsor is Gores Sponsor IV, LLC, a Delaware limited liability company (the “Sponsor”). The Company has selected December 31 as its fiscal year-end. At December 31, 2019, the Company had not commenced any operations. All activity for the period from June 12, 2019 (inception) through December 31, 2019 relates to the Company’s formation and initial public offering (“Public Offering”) described below. The Company completed the Public Offering on January 28, 2020. The Company will not generate any operating revenues until after the completion of its Business Combination, at the earliest. Subsequent to the Public Offering, the Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Public Offering and the sale of the Private Placement Warrants (as defined below) held in the Trust Account (as defined below). Financing Upon the closing of the Public Offering and the sale of the Private Placement Warrants, an aggregate of $425,000,000 was placed in a Trust Account with Continental Stock Transfer & Trust Company (the “Trust Account”) acting as Trustee. The Company intends to finance a Business Combination with the net proceeds from its $425,000,000 Public Offering and its sale of $10,500,000 of Private Placement Warrants. Trust Account Funds held in the Trust Account can be invested only in U.S. government treasury bills with a maturity of one hundred and eighty-five (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, that invest only in direct U.S. government obligations. The Trust Account was not open as of December 31, 2019. The Company’s amended and restated certificate of incorporation provides that, other than the withdrawal of interest to fund our working capital requirements plus additional amounts released to us to fund our regulatory compliance requirements and other costs related thereto (a “Regulatory Withdrawal”), subject to an annual limit of $1,100,000 for a maximum 24 months and/or additional amounts necessary to pay franchise and income taxes, if any, none of the funds held in trust will be released until the earliest of: (i) the completion of the Business Combination; or (ii) the redemption of any public shares of common stock properly tendered in connection with a stockholder vote to amend the Company’s amended and restated certificate of incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of such public shares of common stock if the Company does not complete the Business Combination within 24 months from the IPO Closing Date; or (iii) the redemption of 100% of the public shares of common stock if the Company is unable to complete a Business Combination within 24 months from the IPO Closing Date, subject to the requirements of law and stock exchange rules. Going Concern Consideration If the Company does not complete its Business Combination by January 28, 2022, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem 100% of the common stock sold as part of the units in the Public Offering, 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 franchise and income taxes payable and less up to $100,000 of such net interest which may be distributed to the Company to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s Board of Directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. Business combination The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Public Offering, although substantially all of the net proceeds of the Public Offering are intended to be generally applied toward consummating a Business Combination. The Business Combination must be with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Account (less any deferred underwriting commissions and taxes payable on interest income earned) at the time of the Company signing a definitive agreement in connection with the Business Combination. Furthermore, there is no assurance that the Company will be able to successfully effect a Business Combination. The Company, after signing a definitive agreement for a Business Combination, will either (i) seek stockholder approval of the Business Combination at a meeting called for such purpose in connection with which stockholders may seek to redeem their shares, regardless of whether they vote for or against the Business Combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination, including interest income but less taxes payable, or (ii) provide stockholders with the opportunity to sell their shares to the Company by means of a tender offer (and thereby avoid the need for a stockholder vote) for an amount in cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Business Combination, including interest income but less taxes payable. The decision as to whether the Company will seek stockholder approval of the Business Combination or will allow stockholders to sell their shares in a tender offer will be made by the Company, solely in its discretion, and will be based on a variety of factors such as the timing of the transaction and whether the terms of the transaction would otherwise require the Company to seek stockholder approval, unless a vote is required by law or under NASDAQ rules. If the Company seeks stockholder approval, it will complete its Business Combination only if a majority of the outstanding shares of Common Stock voted are voted in favor of the Business Combination. Currently, the Company will not redeem its public shares of Common Stock in an amount that would cause its net tangible assets to be less than $5,000,001. In such case, the Company would not proceed with the redemption of its public shares of Common Stock and the related Business Combination, and instead may search for an alternate Business Combination. As a result of the foregoing redemption provisions, the public shares of Common Stock will be recorded at redemption amount and classified as temporary equity, in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 480, “ Distinguishing Liabilities from Equity The Company will have 24 months from the IPO Closing Date to complete its Business Combination. If the Company does not complete a Business Combination within this period of time, it shall (i) cease all operations except for the purposes of winding up; (ii) as promptly as reasonably possible, but not more than ten business days thereafter, redeem the public shares of Common Stock for a per share pro rata portion of the Trust Account, including interest income, but less taxes payable (less up to $100,000 of such net interest income to pay dissolution expenses) and (iii) as promptly as possible following such redemption, dissolve and liquidate the balance of the Company’s net assets to its remaining stockholders, as part of its plan of dissolution and liquidation. The Sponsor and the Company’s officers and directors have entered into a letter agreement with the Company, pursuant to which they waived their rights to participate in any redemption with respect to their Founder Shares (as defined below); however, if the Sponsor or any of the Company’s officers, directors or affiliates acquire public shares of Common Stock, they will be entitled to a pro rata share of the Trust Account in the event the Company does not complete a Business Combination within the required time 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 initial public offering price per Unit in the Public Offering. Emerging Growth Company 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. |
Significant Accounting Policies
Significant Accounting Policies | 7 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”), and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of December 31, 2019 and the results of operations and cash flows for the period presented. Net Loss Per Common Share Net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period, plus to the extent dilutive the incremental number of shares of Common Stock to be issued in connection with the conversion of Class F common stock or to settle warrants, as calculated using the treasury stock method. At December 31, 2019, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into Common Stock and then share in the earnings of the Company under the treasury stock method. As a result, diluted net loss per common share is the same as basic net loss per common share for the period. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution as well as the Trust Account, which at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts. Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet. Offering Costs The Company complies with the requirements of the Accounting Standards Codification (the “ASC”) 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A — “ Expenses of Offering Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “ Income Taxes. For those liabilities or benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to uncertain tax positions as income tax expense. At December 31, 2019, management has not identified any uncertain tax positions that are not more likely than not to be sustained. The Company may be subject to potential examination by U.S. federal, states or foreign jurisdiction authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income amounts various tax jurisdictions and compliance with U.S. federal, states or foreign tax laws. The Company is incorporated in the State of Delaware and is required to pay franchise taxes to the State of Delaware on an annual basis. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with and the credit quality of the financial institutions with which it invests. Periodically, the Company may maintain balances in various operating accounts in excess of federally insured limits. Recently issued accounting pronouncements not yet adopted Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements based on current operations of the Company. The impact of any recently issued accounting standards will be re-evaluated on a regular basis or if a Business Combination is completed where the impact could be material. |
Public Offering
Public Offering | 7 Months Ended |
Dec. 31, 2019 | |
Public Offering [Abstract] | |
Public Offering | 3. Public Offering Public Units On January 28, 2020, the Company sold 42,500,000 units at a price of $10.00 per unit (the “Units”), including 2,500,000 Units as a result of the underwriter’s partial exercise of their over-allotment option, generating gross proceeds of $425,000,000. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value, and one-fourth of one redeemable Class A common stock purchase warrant (the “Warrants”). Each Whole Warrant entitles the holder to purchase one share of Class A common stock for $11.50 per share. Each Warrant will become exercisable on the later of 30 days after the completion of the Business Combination or 12 months from the closing of the Public Offering and will expire five years after the completion of the Business Combination or earlier upon redemption or liquidation. However, if the Company does not complete the Business Combination on or prior to the 24-month period allotted to complete the Business Combination, the Warrants will expire at the end of such period. The Warrants were issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and the Company. The Company did not register the shares of Common Stock issuable upon exercise of the Warrants under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities law. Under the terms of the warrant agreement, the Company has agreed to use its best efforts to file a registration statement under the Securities Act following the completion of the Business Combination covering the shares of Common Stock issuable upon exercise of the Warrants. |
Related Party Transactions
Related Party Transactions | 7 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 4. Related Party Transactions Founder Shares On July 16, 2019, the Sponsor purchased 11,500,000 shares of Class F common stock (the “Founder Shares”) for an aggregate purchase price of $25,000, or approximately $0.002 per share. Subsequently, the Sponsor transferred an aggregate of 75,000 Founder Shares to the Company’s independent directors (together with the Sponsor, the “Initial Stockholders”). On March 9, 2020, the Sponsor forfeited 875,000 Founder Shares following the expiration of the unexercised portion of underwriter’s over-allotment option, so that the Founder Shares held by the Initial Stockholders would represent 20.0% of the outstanding shares of Common Stock following completion of the Public Offering. The Founder Shares are identical to the Common Stock included in the Units sold in the Public Offering except that the Founder Shares will automatically convert into shares of Class A common stock at the time of the Business Combination on a one-for-one basis, subject to adjustment as described in the Company’s amended and restated certificate of incorporation. Private Placement Warrants The Sponsor purchased from the Company an aggregate of 5,250,000 warrants at a price of $2.00 per warrant (a purchase price of $10,500,000) in a private placement that occurred simultaneously with the Public Offering (the “Private Placement Warrants”). Each Private Placement Warrant entitles the holder to purchase one share of Class A common stock at $11.50 per share. A portion of the purchase price of the Private Placement Warrants was added to the proceeds from the Public Offering to be held in the Trust Account pending completion of the Business Combination. The Private Placement Warrants have terms and provisions that are identical to those of the Warrants sold as part of the Units in the Public Offering, except that the Private Placement Warrants may be physical (cash) or net share (cashless) settled and are not redeemable so long as they are held by the Sponsor or its permitted transferees. If the Company does not complete a Business Combination, then the Private Placement Warrants proceeds will be part of the liquidation distribution to the public stockholders and the Private Placement Warrants will expire worthless. Registration Rights The holders of Founder Shares, Private Placement Warrants and warrants issued upon conversion of working capital loans, if any, have registration rights (in the case of the Founder Shares, only after conversion of such shares to common shares) pursuant to a registration rights agreement entered into by the Company, the Sponsor and the other security holders named therein on January 23, 2020. These holders will also have certain demand and “piggy back” registration rights. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Sponsor Loan On July 16, 2019, our Sponsor loaned us an aggregate of $150,000 by the issuance of an unsecured promissory note for $300,000 to cover expenses related to the Public Offering. On December 31, 2019, the outstanding balance on the loan was $150,000. On January 25, 2019, our Sponsor loaned us an additional $150,000 to cover expenses related to the Public Offering. These Notes were non-interest bearing and payable on the earlier of June 30, 2020 or the completion of the Public Offering. These Notes were repaid in full upon the completion of the Public Offering. Administrative Service Agreement The Company entered into an administrative services agreement on January 23, 2020, pursuant to which it agreed to pay to an affiliate of the Sponsor $20,000 a month for office space, utilities and secretarial support. Services commenced on the date the securities were first listed on the NASDAQ Capital Market and will terminate upon the earlier of the consummation by the Company of a Business Combination or the liquidation of the Company. No fee was paid from the period of June 12, 2019 through December 31, 2019. |
Income Taxes
Income Taxes | 7 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5 . Income Taxes Effective Tax Rate Reconciliation A reconciliation of the statutory federal income tax expense to the income tax expense from continuing operations provided at December 31, 2019 as follows: Year Ended December 31, 2019 Income tax expense at the federal statutory rate $ (8,191 ) State income taxes - net of federal income tax benefits (1,426 ) Change in valuation allowance 9,617 Total income tax expense (benefit) $ - Components of the Company’s deferred tax asset at December 31, 2019 are as follows: Net operating loss 9,617 Valuation allowance (9,617 ) — The Company established a valuation allowance of $9,617 as of December 31, 2019, which fully offsets the deferred tax asset as of December 31, 2019 of $9,617. The deferred tax asset results from applying an effective combined federal and state tax rate of 24.66 to net operating loss of $39,002 as of December 31, 2019. The Company’s net operating losses will expire beginning 2040. The Company has evaluated tax positions taken or expected to be taken in the course of preparing the financial statements to determine if the tax positions are “more likely than not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the “more likely than not” threshold would be recorded as a tax benefit or expense in the current year. The Company has concluded that there was no impact related to uncertain tax positions on the results of its operations for the period ended December 31, 2019. As of December 31, 2019, the Company has no accrued interest or penalties related to uncertain tax positions. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company’s conclusions regarding tax positions will be subject to review and may be adjusted at a later date based on factors including, but not limited to, ongoing analyses of tax laws, regulations, and interpretations thereof. |
Stockholder's Equity
Stockholder's Equity | 7 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholder's Equity | 6 . Stockholder’s Equity Common Stock The Company is authorized to issue 220,000,000 shares of common stock, consisting of 200,000,000 shares of Class A common stock, par value $0.0001 per share and 20,000,000 shares of Class F common stock, par value $0.0001 per share. Holders of the Company’s Common Stock are entitled to one vote for each share of Common Stock and vote together as a single class. At December 31, 2019, there were no shares of Class A common stock and 11,500,000 shares of Class F common stock issued and outstanding. Preferred Stock The Company is authorized to issue 1,000,000 shares of preferred stock, par value $0.0001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Board of Directors. At December 31, 2019, there were no shares of preferred stock issued and outstanding. |
Subsequent Events
Subsequent Events | 7 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 7 . Subsequent Events In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (COVID-19) as a pandemic, which continues to spread throughout the United States. The spread of COVID-19 has caused significant volatility in U.S. and international markets. There is significant uncertainty around the breadth and duration of business disruptions related to COVID-19, as well as its impact on the U.S. and international economies and, as such, the Company is unable to determine if it will have a material impact to its operations. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 7 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the accounting and disclosure rules and regulations of the Securities and Exchange Commission (“SEC”), and reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the financial position as of December 31, 2019 and the results of operations and cash flows for the period presented. |
Net Loss Per Common Share | Net Loss Per Common Share Net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding during the period, plus to the extent dilutive the incremental number of shares of Common Stock to be issued in connection with the conversion of Class F common stock or to settle warrants, as calculated using the treasury stock method. At December 31, 2019, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into Common Stock and then share in the earnings of the Company under the treasury stock method. As a result, diluted net loss per common share is the same as basic net loss per common share for the period. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution as well as the Trust Account, which at times, may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts. |
Financial Instruments | Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the balance sheet. |
Offering Costs | Offering Costs The Company complies with the requirements of the Accounting Standards Codification (the “ASC”) 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A — “ Expenses of Offering |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “ Income Taxes. For those liabilities or benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to uncertain tax positions as income tax expense. At December 31, 2019, management has not identified any uncertain tax positions that are not more likely than not to be sustained. The Company may be subject to potential examination by U.S. federal, states or foreign jurisdiction authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income amounts various tax jurisdictions and compliance with U.S. federal, states or foreign tax laws. The Company is incorporated in the State of Delaware and is required to pay franchise taxes to the State of Delaware on an annual basis. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The Company continually monitors its positions with and the credit quality of the financial institutions with which it invests. Periodically, the Company may maintain balances in various operating accounts in excess of federally insured limits. |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently issued accounting pronouncements not yet adopted Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements based on current operations of the Company. The impact of any recently issued accounting standards will be re-evaluated on a regular basis or if a Business Combination is completed where the impact could be material. |
Income Taxes (Tables)
Income Taxes (Tables) | 7 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Tax Rate Reconciliation | A reconciliation of the statutory federal income tax expense to the income tax expense from continuing operations provided at December 31, 2019 as follows: Year Ended December 31, 2019 Income tax expense at the federal statutory rate $ (8,191 ) State income taxes - net of federal income tax benefits (1,426 ) Change in valuation allowance 9,617 Total income tax expense (benefit) $ - |
Summary of Components of Deferred Tax Asset | Components of the Company’s deferred tax asset at December 31, 2019 are as follows: Net operating loss 9,617 Valuation allowance (9,617 ) — |
Organization and Business Ope_2
Organization and Business Operations - Additional Information (Details) - USD ($) | Jan. 28, 2020 | Dec. 31, 2019 |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Date of incorporation | Jun. 12, 2019 | |
Maximum maturity period | 185 days | |
Regulatory withdrawal of interest from trust account, annual limit | $ 1,100,000 | |
Regulatory withdrawal of interest from trust account, maximum period | 24 months | |
Redemption percentage of public shares of common stock if business combination not completed | 100.00% | |
Going Concern Description | If the Company does not complete its Business Combination by January 28, 2022, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem 100% of the common stock sold as part of the units in the Public Offering, 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 franchise and income taxes payable and less up to $100,000 of such net interest which may be distributed to the Company to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s Board of Directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. | |
Number of days to seek shareholder approval for redemption of shares | 2 days | |
Number of days to provide opportunity to shareholders to sell their shares | 2 days | |
Dissolution expenses, maximum allowed | $ 100,000 | |
Maximum | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Threshold period to complete business combination from closing of public offering | 24 months | |
Threshold net tangible assets | $ 5,000,001 | |
Number of days to redeem public shares of common stock if business combination not completed | 10 days | |
Minimum | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Percentage of fair market value | 80.00% | |
Subsequent Event | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Amount placed in trust account | $ 425,000,000 | |
Proceeds from initial public offering | 425,000,000 | |
Subsequent Event | Private Placement | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Proceeds from sale of warrants | $ 10,500,000 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) | 7 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Dilutive securities, effect on basic earnings per share | $ 0 |
Federal depository insurance coverage amount | 250,000 |
Deferred offering costs | $ 411,374 |
Public Offering - Additional In
Public Offering - Additional Information (Details) - USD ($) | Jan. 28, 2020 | Dec. 31, 2019 |
Subsequent Event | ||
Class Of Stock [Line Items] | ||
Gross proceeds | $ 425,000,000 | |
Deferred underwriting discount | $ 14,875,000 | |
Subsequent Event | IPO | ||
Class Of Stock [Line Items] | ||
Units sold | 42,500,000 | |
Share Price | $ 10 | |
Upfront underwriting discount (as a percent) | 2.00% | |
Upfront underwriting discount | $ 8,500,000 | |
Percentage of deferred underwriting discount | 3.50% | |
Subsequent Event | Over-Allotment Option | ||
Class Of Stock [Line Items] | ||
Units sold | 2,500,000 | |
Subsequent Event | Warrant | ||
Class Of Stock [Line Items] | ||
Number of shares that contribute each unit | 0.25 | |
Warrant exercisable term if business combination is completed | 30 days | |
Warrant exercisable term from closing of public offer | 12 months | |
Warrant expiration term | 5 years | |
Number of months to complete business combination | 24 months | |
Class A Common Stock | ||
Class Of Stock [Line Items] | ||
Common stock, par value | $ 0.0001 | |
Class A Common Stock | Subsequent Event | ||
Class Of Stock [Line Items] | ||
Number of shares that contribute each unit | 1 | |
Common stock, par value | $ 0.0001 | |
Number of shares warrant may be converted | 1 | |
Warrants exercise price (in dollars per share) | $ 11.50 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | Mar. 09, 2020shares | Jan. 28, 2020$ / sharesshares | Jul. 16, 2019USD ($)$ / sharesshares | Jan. 25, 2019USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2019USD ($) | Jan. 23, 2020USD ($) |
Subsequent Event | IPO | |||||||
Related Party Transaction [Line Items] | |||||||
Units sold | shares | 42,500,000 | ||||||
Subsequent Event | Class A Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares warrant may be converted | shares | 1 | ||||||
Warrants exercise price (in dollars per share) | $ / shares | $ 11.50 | ||||||
Sponsor | |||||||
Related Party Transaction [Line Items] | |||||||
Sale of common stock, value | $ 25,000 | ||||||
Sponsor | Class F Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Units sold | shares | 11,500,000 | ||||||
Sale of common stock, value | $ 1,150 | ||||||
Founder Shares | Class F Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Shares transferred to independent directors | shares | 75,000 | ||||||
Founder Shares | Class A Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Conversion ratio | 1 | ||||||
Founder Shares | Subsequent Event | Class F Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Outstanding shares of common stock held by the initial stockholders (as a percent) | 20.00% | ||||||
Founder Shares | Sponsor | Class F Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Units sold | shares | 11,500,000 | ||||||
Sale of common stock, value | $ 25,000 | ||||||
Share price | $ / shares | $ 0.002 | ||||||
Founder Shares | Sponsor | Subsequent Event | Class F Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares forfeited | shares | 875,000 | ||||||
Private Placement Warrants | Class A Common Stock | |||||||
Related Party Transaction [Line Items] | |||||||
Number of shares warrant may be converted | shares | 1 | ||||||
Warrants exercise price (in dollars per share) | $ / shares | $ 11.50 | ||||||
Private Placement Warrants | Sponsor | |||||||
Related Party Transaction [Line Items] | |||||||
Number of warrants sold | shares | 5,250,000 | ||||||
Warrants sold, price per warrant | $ / shares | $ 2 | ||||||
Proceeds from sale of warrants | $ 10,500,000 | ||||||
Sponsor Loan | IPO | |||||||
Related Party Transaction [Line Items] | |||||||
Proceeds from promissory note to related party | 150,000 | $ 150,000 | |||||
Aggregate issuance of unsecured note | $ 300,000 | ||||||
Outstanding balance on the loan | $ 150,000 | $ 150,000 | |||||
Administrative Service Agreement | Subsequent Event | |||||||
Related Party Transaction [Line Items] | |||||||
Due to affiliate, monthly for office space, utilities and secretarial support | $ 20,000 | ||||||
Administrative Service Agreement | Affiliate of the Sponsor | |||||||
Related Party Transaction [Line Items] | |||||||
Fee paid during the period | $ 0 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Tax Rate Reconciliation (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |
Income tax expense at the federal statutory rate | $ (8,191) |
State income taxes - net of federal income tax benefits | (1,426) |
Change in valuation allowance | $ 9,617 |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Asset (Details) | Dec. 31, 2019USD ($) |
Income Tax Disclosure [Abstract] | |
Net operating loss | $ 9,617 |
Valuation allowance | $ (9,617) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 7 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Valuation allowance | $ 9,617 |
Deferred tax asset | $ 9,617 |
Effective combined federal and state tax rate | 24.66% |
Net operating loss | $ 39,002 |
Impact related to uncertain tax positions | 0 |
Accrued interest related to uncertain tax positions | 0 |
Accrued penalties related to uncertain tax positions | $ 0 |
Earliest Tax Year | |
Operating Loss Carryforwards [Line Items] | |
Net operating losses carryforwards expiration year | 2040 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) | Dec. 31, 2019Vote$ / sharesshares |
Class Of Stock [Line Items] | |
Common stock, shares authorized | 220,000,000 |
Number of votes for each share | Vote | 1 |
Preferred stock, shares authorized | 1,000,000 |
Preferred stock, par value | $ / shares | $ 0.0001 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Class A Common Stock | |
Class Of Stock [Line Items] | |
Common stock, shares authorized | 200,000,000 |
Common stock, par value | $ / shares | $ 0.0001 |
Common stock, shares issued | 0 |
Common stock, shares outstanding | 0 |
Class F Common Stock | |
Class Of Stock [Line Items] | |
Common stock, shares authorized | 20,000,000 |
Common stock, par value | $ / shares | $ 0.0001 |
Common stock, shares issued | 11,500,000 |
Common stock, shares outstanding | 11,500,000 |