Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 15, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 001-39445 | |
Entity Registrant Name | Lionheart Acquisition Corporation II | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 84-4117825 | |
Entity Address State Or Province | FL | |
Entity Address, Address Line One | 4218 NE 2nd Avenue | |
Entity Address, City or Town | Miami | |
Entity Address, Postal Zip Code | 33137 | |
City Area Code | 305 | |
Local Phone Number | 573-3900 | |
Entity Current Reporting Status | Yes | |
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 Central Index Key | 0001802450 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Units, each consisting of one share of Class A ordinary share and one-half of one redeemable warrant | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Units, each consisting of one share of Class A Common Stock and one-half of one Redeemable Warrant | |
Trading Symbol | LCAPU | |
Security Exchange Name | NASDAQ | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock, par value $0.0001 per share | |
Trading Symbol | LCAP | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 23,650,000 | |
Redeemable warrants, each whole warrant exercisable | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Redeemable Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 | |
Trading Symbol | LCAPW | |
Security Exchange Name | NASDAQ | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,750,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash | $ 353,032 | $ 1,017,137 |
Prepaid expenses | 48,944 | 124,766 |
Total Current Assets | 401,976 | 1,141,903 |
Marketable securities held in Trust Account | 230,008,192 | 230,011,254 |
TOTAL ASSETS | 230,410,168 | 231,153,157 |
Current liabilities | ||
Accounts payable and accrued expenses | 2,918,987 | 1,163,558 |
Accrued offering costs | 5,450 | |
Total Current Liabilities | 2,918,987 | 1,169,008 |
Warrant liability | 10,176,000 | 13,365,500 |
Deferred underwriting fee payable | 8,050,000 | 8,050,000 |
TOTAL LIABILITIES | 21,144,987 | 22,584,508 |
Commitments and Contingencies (Note 7) | ||
Class A common stock subject to possible redemption, 23,000,000 shares at redemption value as of September 30, 2021 and December 31, 2020 | 230,000,000 | 230,000,000 |
Stockholders' Deficit | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | ||
Accumulated deficit | (20,735,459) | (21,431,991) |
Total Stockholders' Deficit | (20,734,819) | (21,431,351) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 230,410,168 | 231,153,157 |
Class A Common Stock | ||
Stockholders' Deficit | ||
Common stock | 65 | 65 |
Class B Common Stock | ||
Stockholders' Deficit | ||
Common stock | $ 575 | $ 575 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Class A common stock subject to possible redemption, shares | 23,000,000 | 23,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 650,000 | 650,000 |
Common stock, shares outstanding | 650,000 | 650,000 |
Class B Common Stock | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 5,750,000 | 5,750,000 |
Common stock, shares outstanding | 5,750,000 | 5,750,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating and formation costs | $ 349,966 | $ 88,889 | $ 2,503,274 | $ 88,889 |
Loss from operations | (349,966) | (88,889) | (2,503,274) | (88,889) |
Other income (expense): | ||||
Interest earned on marketable securities held in Trust Account | 3,473 | 6,646 | 10,306 | 6,646 |
Transactions costs associated with the Initial Public Offering | (837,355) | (837,355) | ||
Change in fair value of warrant liabilities | 1,070,750 | 466,500 | 3,189,500 | 466,500 |
Other income (expense), net | 1,074,223 | (364,209) | 3,199,806 | (364,209) |
Net Income (Loss) | $ 724,257 | $ (453,098) | $ 696,532 | $ (453,098) |
Class A Common Stock | ||||
Other income (expense): | ||||
Weighted average shares outstanding, basic | 23,650,000 | 10,858,152 | 23,650,000 | 3,645,803 |
Weighted average shares outstanding, diluted | 23,650,000 | 10,858,152 | 23,650,000 | 3,645,803 |
Basic net income per common share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) |
Diluted net income per common share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) |
Class B Common Stock | ||||
Other income (expense): | ||||
Weighted average shares outstanding, basic | 5,750,000 | 5,301,630 | 5,750,000 | 4,918,796 |
Weighted average shares outstanding, diluted | 5,750,000 | 5,301,630 | 5,750,000 | 4,918,796 |
Basic net income per common share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) |
Diluted net income per common share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) | Additional Paid-in Capital | Accumulated Deficit | Common stockClass A Common Stock | Common stockClass B Common Stock | Total |
Beginning balance at Dec. 31, 2019 | $ (1,000) | $ (1,000) | |||
Issuance of Class B common stock to Sponsor | $ 24,425 | $ 575 | 25,000 | ||
Issuance of Class B common stock to Sponsor (in shares) | 5,750,000 | ||||
Ending balance at Mar. 31, 2020 | 24,425 | (1,000) | $ 575 | 24,000 | |
Ending balance (in shares) at Mar. 31, 2020 | 5,750,000 | ||||
Beginning balance at Dec. 31, 2019 | (1,000) | (1,000) | |||
Net loss | (453,098) | ||||
Ending balance at Sep. 30, 2020 | (19,823,320) | $ 65 | $ 575 | (19,822,680) | |
Ending balance (in shares) at Sep. 30, 2020 | 650,000 | 5,750,000 | |||
Beginning balance at Mar. 31, 2020 | 24,425 | (1,000) | $ 575 | 24,000 | |
Beginning balance (in shares) at Mar. 31, 2020 | 5,750,000 | ||||
Net loss | 0 | 0 | $ 0 | $ 0 | 0 |
Ending balance at Jun. 30, 2020 | 24,425 | (1,000) | $ 575 | 24,000 | |
Ending balance (in shares) at Jun. 30, 2020 | 5,750,000 | ||||
Sale of 23,000,000 Units, net of underwriting discounts and offering expenses | 0 | 0 | 0 | $ 0 | 0 |
Sale of 650,000 Private Placement Units | 6,123,809 | $ 65 | 6,123,874 | ||
Sale of Private Placement Units (in shares) | 650,000 | ||||
Accretion to common stock subject to redemption amount | (6,148,234) | (19,369,222) | 25,517,456 | ||
Net loss | (453,098) | (453,098) | |||
Ending balance at Sep. 30, 2020 | (19,823,320) | $ 65 | $ 575 | (19,822,680) | |
Ending balance (in shares) at Sep. 30, 2020 | 650,000 | 5,750,000 | |||
Beginning balance at Dec. 31, 2020 | 0 | (21,431,991) | $ 65 | $ 575 | (21,431,351) |
Beginning balance (in shares) at Dec. 31, 2020 | 650,000 | 5,750,000 | |||
Net loss | 4,641,710 | 4,641,710 | |||
Ending balance at Mar. 31, 2021 | (16,790,281) | $ 65 | $ 575 | (16,789,641) | |
Ending balance (in shares) at Mar. 31, 2021 | 650,000 | 5,750,000 | |||
Beginning balance at Dec. 31, 2020 | 0 | (21,431,991) | $ 65 | $ 575 | (21,431,351) |
Beginning balance (in shares) at Dec. 31, 2020 | 650,000 | 5,750,000 | |||
Net loss | 696,532 | ||||
Ending balance at Sep. 30, 2021 | 0 | (20,735,459) | $ 65 | $ 575 | (20,734,819) |
Ending balance (in shares) at Sep. 30, 2021 | 650,000 | 5,750,000 | |||
Beginning balance at Mar. 31, 2021 | (16,790,281) | $ 65 | $ 575 | (16,789,641) | |
Beginning balance (in shares) at Mar. 31, 2021 | 650,000 | 5,750,000 | |||
Net loss | (4,669,435) | (4,669,435) | |||
Ending balance at Jun. 30, 2021 | (21,459,716) | $ 65 | $ 575 | (21,459,076) | |
Ending balance (in shares) at Jun. 30, 2021 | 650,000 | 5,750,000 | |||
Net loss | 724,257 | 724,257 | |||
Ending balance at Sep. 30, 2021 | $ 0 | $ (20,735,459) | $ 65 | $ 575 | $ (20,734,819) |
Ending balance (in shares) at Sep. 30, 2021 | 650,000 | 5,750,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY (Parenthetical) - Class A Common Stock - Common stock - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Sale of Private Placement Units (in shares) | 650,000 | |
Sale of Units, net of underwriting discounts and offering expenses | 23,000,000 | 23,000,000 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Cash Flows from Operating Activities: | |||||
Net income (loss) | $ 696,532 | $ (453,098) | |||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||
Change in fair value of warrant liability | $ (1,070,750) | $ (466,500) | (3,189,500) | (466,500) | |
Transactions costs associated with the Initial Public Offering | 837,355 | 837,355 | |||
Interest earned on marketable securities held in Trust Account | (3,473) | (6,646) | (10,306) | (6,646) | |
Changes in operating assets and liabilities: | |||||
Prepaid expenses | 75,822 | (163,745) | |||
Accounts payable and accrued expenses | 1,755,429 | 69,833 | |||
Net cash used in operating activities | (672,023) | (182,801) | |||
Cash Flows from Investing Activities: | |||||
Investment of cash into Trust Account | (230,000,000) | ||||
Cash withdrawn from Trust Account to pay franchise and income taxes | 13,368 | ||||
Net cash provided by (used in) investing activities | 13,368 | (230,000,000) | |||
Cash Flows from Financing Activities: | |||||
Proceeds from issuance of Class B common stock to Sponsor | 25,000 | ||||
Proceeds from sale of Units, net of underwriting discounts paid | 225,400,000 | ||||
Proceeds from sale of Private Placement Units | 6,500,000 | ||||
Proceeds from promissory notes - related party | 140,671 | ||||
Repayment of promissory note-related party | (140,671) | ||||
Payment of offering costs | (5,450) | (473,487) | |||
Net cash (used in) provided by financing activities | (5,450) | 231,451,513 | |||
Net Change in Cash | (664,105) | 1,268,712 | |||
Cash - Beginning | 1,017,137 | 0 | $ 0 | ||
Cash - Ending | 353,032 | 1,268,712 | 353,032 | 1,268,712 | 1,017,137 |
Non-Cash investing and financing activities: | |||||
Offering costs included in accrued offering costs | 5,450 | ||||
Initial classification of Class A common stock subject to possible redemption | 230,000,000 | ||||
Deferred underwriting fee payable | $ 8,050,000 | $ 8,050,000 | $ 8,050,000 | $ 8,050,000 | $ 8,050,000 |
DESCRIPTION OF ORGANIZATION AND
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | 9 Months Ended |
Sep. 30, 2021 | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | |
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS | NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Lionheart Acquisition Corporation II (formerly known as Lionheart Acquisition Corp.) (the “Company”) was incorporated in Delaware on December 23, 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 is not limited to a particular industry or sector for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies. The Company has one subsidiary, Lionheart II Holdings, LLC, a wholly owned subsidiary incorporated in Delaware on July 9, 2021. As of September 30, 2021, the Company had not commenced any operations. All activity for the period from December 23, 2019 (inception) through September 30, 2021 relates to the Company’s formation, the initial public offering (“Initial Public Offering”), which is described below, and, subsequent to the Initial Public Offering, identifying a target company for a Business Combination, in particular activities in connection with the potential acquisition of MSP Recovery (see Proposed Business Combination within Note 1). The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The registration statement for the Company’s Initial Public Offering was declared effective on August 12, 2020. On August 18, 2020, the Company consummated the Initial Public Offering of 20,000,000 units (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”), at $10.00 per Unit, generating gross proceeds of $200,000,000, which is described in Note 4. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 650,000 units (the “Private Placement Units”) at a price of $10.00 per Private Placement Unit in a private placement to Lionheart Equities, LLC, a Delaware Limited Liability Company (the “Sponsor”), and Nomura Securities International, Inc. (“Nomura”), an underwriter in the Initial Public Offering, generating gross proceeds of $6,500,000, which is described in Note 5. Following the closing of the Initial Public Offering on August 18, 2020, an amount of $200,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Units was placed in a trust account (the “Trust Account”) located in the United States and invested only in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the funds in the Trust Account, as described below. On August 20, 2020, the underwriters notified the Company of their intention to exercise their over-allotment option in full, resulting in an additional 3,000,000 Units issued on August 24, 2020 for $30,000,000. A total of $30,000,000 was deposited into the Trust Account, bringing the aggregate proceeds held in the Trust Account to $230,000,000. Transaction costs amounted to $13,128,937 consisting of $4,600,000 of underwriting fees, $8,050,000 of deferred underwriting fees and $478,937 of other offering costs. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of Private Placement Units, although substantially all of the net proceeds are intended to be applied generally toward completing a Business Combination. The Company must complete a Business Combination 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 (excluding the deferred underwriting commissions and taxes payable on interest earned on the Trust Account) at the time of the agreement to enter into a Business Combination. The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company will provide its stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.00 per Public Share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The per-share amount to be distributed to public stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 6). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. The Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 immediately prior to or upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by law and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transactions is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Company’s Sponsor, officers and directors and Nomura have agreed to vote their Founder Shares (as defined in Note 6), Private Placement Shares (as defined in Note 5) and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, each public stockholder may elect to redeem their Public Shares, without voting, and if they do vote, irrespective of whether they vote for or against the proposed Business Combination. If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company. The Sponsor has agreed (a) to waive its redemption rights with respect to any Founder’s Shares, Private Placement Shares and Public Shares held by it in connection with the completion of a Business Combination and (b) not to propose an amendment to the Amended and Restated Certificate of Incorporation that would affect the substance or timing of the ability of holders of the Public Shares to seek redemption in connection with a Business Combination or the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the public stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment. The Company will have until February 18, 2022 to complete a Business Combination (the “Combination Period”). If the Company is unable to complete a Business Combination within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter subject to lawfully available funds therefor, redeem 100% of the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete a Business Combination within the Combination Period. The Sponsor and Nomura have agreed to waive their liquidation rights with respect to the Private Placement Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the initial stockholders or any of their respective affiliates acquire Public Shares after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00). In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below 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 underwriters of Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Liquidity and Going Concern The Company has principally financed its operations from inception using proceeds from the sale of its equity securities to its stockholders prior to the Initial Public Offering and such amount of proceeds from the Initial Public Offering that were placed in an account outside of the Trust Account for working capital purposes. At September 30, 2021, the Company had cash outside the trust of $353,032 and working capital deficit of $2,508,819. The Company has incurred and expects to continue to incur significant costs in pursuit of its financing and acquisition plans. On February 21, 2021, the Sponsor committed up to $750,000 in loans to the Company for continuing operations to consummate a business combination. The loans are non-interest bearing, unsecured, and to be repaid upon the consummation of a business combination. On July 29, 2021, the Sponsor committed up to an additional $250,000 in loans to the Company for continuing operations to consummate a business combination. The loans are non-interest bearing, unsecured, and to be repaid upon the consummation of a business combination. In the event that a business combination does not occur, then all loaned amounts under this commitment will be forgiven except to the extent that the Company has funds available to it outside the trust account. The Sponsor has committed an aggregate of $1,000,000. In the event that a business combination does not occur, then all loaned amounts under this commitment will be forgiven except to the extent that the Company has funds available to it outside the trust account. In addition, the Sponsor, an affiliate of the Sponsor, or our officers and directors may, but are not obligated to, loan us funds as may be required (see Note 6 Related Party Loans). The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination. The Company will need to raise further additional capital through loans or additional investments from its Sponsor, stockholders, officers, directors, or third parties. In addition to the loan commitment described herein, the Company’s officers, directors and Sponsor may, but are not obligated to, loan the Company funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the Company’s working capital needs. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company’s ability to continue as a going concern through February 18, 2022, the current date that the Company will be required to cease all operations, except for the purpose of winding up, if a Business Combination is not consummated. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. Proposed Business Combination On July 11, 2021, the Company entered into a Membership Interest Purchase Agreement (the “MIPA”) by and among the Company, Lionheart II Holdings, LLC, a newly formed wholly owned subsidiary of the Company (“Purchaser”), each limited liability company set forth on Schedule 2.1(a) thereto (the “MSP Purchased Companies”), the members of the MSP Purchased Companies listed on Schedule 2.1(b) thereto (the “Members”), and John H. Ruiz, as the representative of the Members. Subject to the terms and conditions set forth in the MIPA, including the approval of the Company’s stockholders, the parties thereto will enter into a business combination transaction (the “Business Combination”), pursuant to which, among other things, the Members will sell and assign all of their membership interests in the MSP Purchased Companies to Purchaser in exchange for non-economic voting shares of Class V common stock, par value $0.0001, of the Company (“Class V Common Stock”) and non-voting economic Class B Units of Purchaser (“Class B Units,” and each pair consisting of one share of Class V Common Stock and one Class B Unit, an “Up-C Unit”), with Up-C Units being exchangeable on a one-for-one basis for shares of the Company’s Class A common stock. Following the closing of the Business Combination (the “MIPA Closing”), the Company will own all of the voting Class A Units of Purchaser and the Members or their designees will own all of the non-voting economic Class B Units of Purchaser. Subject to the terms and conditions set forth in the MIPA, the aggregate consideration to be paid to the Members (or their designees) will consist of a number of (i) Up-C Units equal to (a) $32.5 billion divided by (b) $10.00 and (ii) rights to receive payments under the Tax Receivable Agreement (as defined below). Of the Up-C Units to be issued to certain Members at the MIPA Closing, 6,000,000 (the “Escrow Units”) will be deposited into an escrow account with Continental Stock Transfer and Trust, to satisfy potential indemnification claims brought pursuant to the MIPA. Additionally, in connection with the Business Combination, the Company intends, subject to compliance with applicable law, to declare a dividend comprising approximately 1,029,000,000 newly issued warrants, each to purchase one share of Class A common stock for an exercise price of $11.50 per share, conditioned upon the consummation of any redemptions by the Company’s stockholders and the MIPA, to the holders of record of Class A common stock as of the close of business on the date of the MIPA Closing, after giving effect to the waiver of the right to participate in such dividend by the Members. The MIPA contains customary representations, warranties and covenants by the parties thereto and the closing is subject to certain conditions as further described in the MIPA. On November 10, 2021, the Company filed with the U.S. Securities and Exchange Commission (“SEC”) in preliminary form a registration statement on Form S-4 (the “Registration Statement”) which contains a preliminary proxy statement/prospectus, in connection with the proposed business combination between the Company and MSP Recovery announced on July 12, 2021. While the Registration Statement has not yet become effective and the information contained therein is subject to change, it provides important information about MSP Recovery, LCAP, and the proposed business combination. Risks and Uncertainties 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 and the World. As of the date the financial statements were issued, there was considerable uncertainty around the expected duration of this pandemic. The Company has concluded that while it is reasonably possible that COVID-19 could have a negative effect on identifying a target company for a Business Combination, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
RESTATEMENT OF PREVIOUSLY ISSUE
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2021 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS In connection with the preparation of the Company’s financial statements as of September 30, 2021, management identified errors made in its historical financial statements where, at the closing of the Company’s Initial Public Offering, the Company improperly valued its Class A common stock subject to possible redemption. The Company previously determined the Class A common stock subject to possible redemption to be equal to the redemption value of $10.00 per share of Class A common stock while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Management determined that the Class A common stock issued during the Initial Public Offering can be redeemed or become redeemable subject to the occurrence of future events considered outside the Company’s control. Therefore, management concluded that the redemption value should include all shares of Class A common stock subject to possible redemption, resulting in the Class A common stock subject to possible redemption being equal to their redemption value. As a result, management has noted a reclassification error related to temporary equity and permanent equity. This resulted in an adjustment to the initial carrying value of the Class A common stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock. In connection with the change in presentation for the Class A common stock subject to redemption, the Company also restated its income (loss) per common stock calculated to allocate net income (loss) evenly to Class A and Class B common stock. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of common stock pro rata in the income (loss) of the Company. There is no impact to the reported amounts for total assets, total liabilities, cash flows, or net income (loss). The impact of the restatement on the Company’s financial statements is reflected in the following table. As Previously Balance Sheet as of August 18, 2020 (audited) Reported Adjustment As Restated Class A common stock subject to possible redemption $ 176,443,060 $ 23,556,940 $ 200,000,000 Class A common stock $ 301 $ (236) $ 65 Additional paid-in capital $ 5,837,483 $ (5,837,483) $ — Accumulated deficit $ (838,356) $ (17,719,221) $ (18,557,577) Total Stockholders' Equity (Deficit) $ 5,000,003 $ (23,556,940) $ (18,556,937) Balance Sheet as of September 30, 2020 (unaudited) Class A common stock subject to possible redemption $ 205,177,310 $ 24,822,690 $ 230,000,000 Class A common stock $ 313 $ (248) $ 65 Additional paid-in capital $ 5,453,221 $ (5,453,221) $ — Accumulated deficit $ (454,099) $ (19,369,221) $ (19,823,320) Total Stockholders' Equity (Deficit) $ 5,000,010 $ (24,822,690) $ (19,822,680) Balance Sheet as of December 31, 2020 (audited) Class A common stock subject to possible redemption $ 203,568,640 $ 26,431,360 $ 230,000,000 Class A common stock $ 329 $ (264) $ 65 Additional paid-in capital $ 7,061,874 $ (7,061,874) $ — Accumulated deficit $ (2,062,769) $ (19,369,222) $ (21,431,991) Total Stockholders’ Equity (Deficit) $ 5,000,009 $ (26,431,360) $ (21,431,351) Balance Sheet as of March 31, 2021 (unaudited) Class A common stock subject to possible redemption $ 208,210,350 $ 21,789,650 $ 230,000,000 Class A common stock $ 283 $ (218) $ 65 Additional paid-in capital $ 2,420,210 $ (2,420,210) $ — Accumulated deficit $ 2,578,941 $ (19,369,222) $ (16,790,281) Total Stockholders' Equity (Deficit) $ 5,000,009 $ (21,789,650) $ (16,789,641) Balance Sheet as June 30, 2021 (unaudited) Class A common stock subject to possible redemption $ 203,540,920 $ 26,459,080 $ 230,000,000 Class A common stock $ 330 $ (265) $ 65 Additional paid-in capital $ 7,089,593 $ (7,089,593) $ — Accumulated deficit $ (2,090,494) $ (19,369,222) $ (21,459,716) Total Stockholders' Equity (Deficit) $ 5,000,004 $ (26,459,080) $ (21,459,076) Statement of Operations for the Three Months Ended September 30, 2020 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 18,952,768 (8,094,616) 10,858,152 Basic and diluted net (loss) per share, Class A $ — $ (.03) $ (.03) Basic and diluted weighted average shares outstanding, Class B Common Stock 3,374,881 (1,926,749) 5,301,630 Basic and diluted net (loss) per share, Class B Common Stock $ — $ (.03) $ (.03) Statement of Operations for the Nine Months Ended September 30, 2020 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 18,952,768 (15,306,965) 3,645,803 Basic and diluted net (loss) per share, Class A $ — $ (.05) $ (.05) Basic and diluted weighted average shares outstanding, Class B Common Stock 3,424,425 1,494,371 4,918,796 Basic and diluted net (loss) per share, Class B Common Stock $ — $ (.05) $ (.05) Statement of Operations for the Year Ended December 31, 2020 (audited) Basic and diluted weighted average shares outstanding, Class A Common Stock 20,323,974 181,518 20,505,492 Basic and diluted net (loss) per share, Class A $ — $ (0.08) $ (0.08) Basic and diluted weighted average shares outstanding, Class B Common Stock 2,318,726 2,809,006 5,127,732 Basic and diluted net (loss) per share, Class B Common Stock $ (0.89) $ 0.81 $ (0.08) Statement of Operations for the Three Months Ended March 31, 2021 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 21,693,414 1,956,586 23,650,000 Basic and diluted net (loss) per share, Class A $ — $ 0.16 $ 0.16 Basic and diluted weighted average shares outstanding, Class B Common Stock 9,043,136 (3,293,136) 5,750,000 Basic and diluted net (loss) per share, Class B Common Stock $ 0.51 $ (0.35) $ 0.16 Statement of Operations for the Three Months Ended June 30, 2021 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 20,821,035 2,828,965 23,650,000 Basic and diluted net (loss) per share, Class A $ — $ (0.16) $ (0.16) Basic and diluted weighted average shares outstanding, Class B Common Stock 8,485,715 (2,735,715) 5,750,000 Basic and diluted net (loss) per share, Class B Common Stock $ (0.54) $ 0.38 $ (0.16) Statement of Operations for the Six Months Ended June 30, 2020 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 21,926,782 1,723,218 23,650,000 Basic and diluted weighted average shares outstanding, Class B Common Stock 8,809,768 (3,059,768) 5,750,000 Statement of Cash Flows for the Nine Months Ended September 30, 2020 (unaudited) Initial classification of Class A common stock subject to possible redemption $ 204,793,060 $ 25,206,940 $ 230,000,000 Change in value of Class A common stock subject to possible redemption $ 384,250 $ (384,250) $ — Statement of Cash Flows for the Year Ended December 31, 2020 (audited) Initial classification of Class A common stock subject to possible redemption $ 204,793,060 $ 25,206,940 $ 230,000,000 Change in value of Class A common stock subject to possible redemption $ (1,224,420) $ 1,224,420 $ — Statement of Cash Flows for the Three Months Ended March 31, 2021 (unaudited) Change in value of Class A common stock subject to possible redemption $ 4,641,710 $ (4,641,710) $ — Statement of Cash Flows for the Six Months Ended June 30, 2021 (unaudited) Change in value of Class A common stock subject to possible redemption $ (27,720) $ 27,720 $ — Statement of Changes in Stockholders' Equity (Deficit) for the Period Ended September 30, 2020 (unaudited) Sale of 23,000,000 Units, net of underwriting discounts 204,482,544 (204,482,544) — Class A common stock subject to possible redemption (205,177,310) 205,177,310 — Accretion to common stock subject to redemption amount — (25,517,456) (25,517,456) Total Stockholders' Equity 5,000,010 (24,822,689) (19,822,680) Statement of Changes in Stockholders' Equity (Deficit) for the Year Ended December 30, 2020 (audited) Change in value of common stock subject to redemption 1,608,670 (1,608,670) — Total Stockholders' Equity 5,000,009 (26,431,360) (21,431,351) Statement of Changes in Stockholders' Equity (Deficit) for the Period Ended March 31, 2021 (unaudited) Change in value of common stock subject to redemption (4,641,710) (4,641,710) — Total Stockholders' Equity 5,000,009 (21,789,650) (16,789,641) Statement of Changes in Stockholders' Equity (Deficit) for the Period Ended June 30, 2021 (unaudited) Change in value of common stock subject to redemption 4,669,430 (4,669,430) — Total Stockholders' Equity 5,000,004 (26,459,080) (21,459,076) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. 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”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X promulgated under the Securities Act. 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 as filed with the SEC on May 19, 2021. The interim results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future periods. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany balances and transactions have been eliminated in 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 independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial 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 condensed consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting 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 financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these financial statements is the determination of the fair value of warrant liabilities. Such estimates may be subject to change as more current information becomes available and accordingly, the actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2021 and December 31, 2020. Marketable Securities Held in Trust Account At September 30, 2021 and December 31, 2020, substantially all of the assets held in the Trust Account were held in money market funds which are invested primarily in U.S. Treasury Securities. All of the Company’s investments held in the Trust Account are classified as trading securities. Trading securities are presented on the balance sheet at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments held in Trust Account are included in interest earned on marketable securities held in Trust Account in the accompanying condensed consolidated statements of operations. The estimated fair values of investments held in Trust Account are determined using available market information. Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Class A common stock subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable common stock (including common stock 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, common stock is classified as shareholders’ equity. The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ equity section of the Company’s condensed consolidated balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable Class A common stock resulted in charges against additional paid-in capital and accumulated deficit. At September 30, 2021, the Class A common stock reflected in the condensed consolidated balance sheet are reconciled in the following table: Gross proceeds $ 230,000,000 Less: Proceeds allocated to Public Warrants $ (13,225,000) Class A common stock issuance costs $ (12,292,456) Plus: Accretion of carrying value to redemption value $ 25,517,456 Class A common stock subject to possible redemption $ 230,000,000 Warrant Liabilities The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. Based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the Company’s Private Placement Warrants are not indexed to the Company’s common stock in the manner contemplated by ASC Section 815-40-15 because the holder of the instrument is not an input into the pricing of a fixed-for-fixed option on equity shares. In addition, based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the tender offer provision fails the “classified in stockholders’ equity” criteria as contemplated by ASC Section 815-40-25. As a result, the Company accounts for the Public Warrants and Private Placement Warrants as liabilities in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. On March 27, 2020, the CARES Act was enacted in response to COVID-19 pandemic. Under ASC 740, the effects of changes in tax rates and laws are recognized in the period which the new legislation is enacted. The CARES Act made various tax law changes including among other things (i) increasing the limitation under Section 163(j) of the Internal Revenue Code of 1986, as amended (the “IRC”) for 2019 and 2020 to permit additional expensing of interest (ii) enacting a technical correction so that qualified improvement property can be immediately expensed under IRC Section 168(k), (iii) making modifications to the federal net operating loss rules including permitting federal net operating losses incurred in 2018, 2019, and 2020 to be carried back to the five preceding taxable years in order to generate a refund of previously paid income taxes and (iv) enhancing the recoverability of alternative minimum tax credits. Net Income (Loss) per Common Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income (loss) per common stock is computed by dividing net income (loss) by the weighted average number of common stocks outstanding for the period. The Company applies the two-class method in calculating earnings per share. Accretion associated with the redeemable shares of Class A common stocks is excluded from earnings per share as the redemption value approximates fair value. The calculation of diluted income (loss) per share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the warrants is contingent upon the occurrence of future events. The warrants are exercisable to purchase 11,825,000 Class A common stocks in the aggregate. As of September 30, 2021, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into common stocks and then share in the earnings of the Company. As a result, diluted net loss per common stock is the same as basic net loss per common stock for the periods presented. The following table reflects the calculation of basic and diluted net loss per common stock (in dollars, except per share amounts): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 (As Restated) (As Restated) Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per common stock Numerator: Allocation of net income (loss), as adjusted $ 582,608 $ 141,649 $ (304,448) $ (148,650) $ 560,306 $ 136,226 $ (192,876) $ (260,222) Denominator: Basic and diluted weighted average stock outstanding 23,650,000 5,750,000 10,858,152 5,301,630 23,650,000 5,750,000 3,645,803 4,918,796 Basic and diluted net income (loss) per common stock $ .02 $ .02 $ (.03) $ (.03) $ .02 $ .02 $ (.05) $ (.05) 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 Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. Fair value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature, except for warrant liabilities (see Note 10.) Recent Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06 — “Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”)”, to simplify accounting for certain financial instruments ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows. Management does not believe that any recently issued, but not yet effective, accounting standards update, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements. |
INITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING | 9 Months Ended |
Sep. 30, 2021 | |
INITIAL PUBLIC OFFERING | |
INITIAL PUBLIC OFFERING | NOTE 4. INITIAL PUBLIC OFFERING Pursuant to the Initial Public Offering, the Company sold 23,000,000 Units, inclusive of 3,000,000 Units sold to the underwriters on August 24, 2020 upon the underwriters’ election to fully exercise their option to purchase additional Units, at a purchase price of $10.00 per Unit. Each Unit consists of one share of Class A common stock and one-half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 9). |
PRIVATE PLACEMENT
PRIVATE PLACEMENT | 9 Months Ended |
Sep. 30, 2021 | |
PRIVATE PLACEMENT | |
PRIVATE PLACEMENT | NOTE 5. PRIVATE PLACEMENT Simultaneously with the closing of the Initial Public Offering, the Sponsor and Nomura purchased an aggregate of 650,000 Private Placement Units at a price of $10.00 per Private Placement Unit, for an aggregate purchase price of $6,500,000. Each Private Placement Unit consists of one share of Class A common stock (“Private Placement Share”) and one-half of one redeemable warrant (“Private Placement Warrant”). Each whole Private Placement Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 9). A portion of the proceeds from the Private Placement Units were added to the proceeds from the Initial Public Offering held in the Trust Account. The Private Placement Units are identical to the Public Units sold in the Initial Public Offering, except as described in Note 9. If the Company does not complete a Business Combination within the Combination Period, the proceeds of the sale of the Private Placement Units will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and underlying securities will be worthless. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 6. RELATED PARTY TRANSACTIONS Founder Shares On January 10, 2020, the Sponsor purchased 5,000,000 shares (the “Founder’s Shares”) of the Company’s Class B common stock for an aggregate price of $25,000. Subsequently, on February 6, 2020, the Company effected a stock dividend of 0.15 share for each Founder’s Share outstanding, resulting in the Sponsor holding an aggregate of 5,750,000 Founder’s Shares. All share and per-share amounts have been retroactively restated to reflect the stock dividend. The Founder’s Shares included an aggregate of up to 750,000 shares subject to forfeiture to the extent that the underwriters’ over-allotment option was not exercised in full or in part, so that the initial stockholders (including Nomura) would own, on an as-converted basis, 22.03% of the Company’s issued and outstanding shares after the Initial Public Offering (including the Private Placement Shares and assuming the initial stockholders do not purchase any Public Shares in the Initial Public Offering). As a result of the underwriters’ election to exercise their over-allotment option in full on August 24, 2020, the 750,000 Founder’s Shares are no longer subject to forfeiture. The initial stockholders have agreed, subject to limited exceptions, not to transfer, assign or sell any of their Founder’s Shares until the earlier to occur of: (A) six months after the completion of a Business Combination or (B) subsequent to a Business Combination, (x) if the last sale price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 30 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, capital stock exchange, reorganization or other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property. Promissory Note — Related Party On January 10, 2020, the Company issued the Promissory Note to Lionheart Equities, LLC, the Sponsor, pursuant to which the Company could borrow up to an aggregate amount of $300,000 to cover expenses related to the Initial Public Offering. The Promissory Note was non-interest bearing and payable on the completion of the Initial Public Offering. The outstanding balance under the Promissory Note of $140,671 was repaid on August 24, 2020. Borrowings under the Promissory Note are no longer available. Administrative Services Agreement The Company entered into an agreement whereby, commencing on the August 14, 2020, the Company will pay the Sponsor a total of $15,000 per month for office space, utilities and secretarial and administrative support. Upon completion of the Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees. For the three and nine months ended September 30, 2021, the Company incurred and paid $45,000 and $135,000 in fees for these services. For the three and nine months ended September 30, 2020, the Company incurred $30,000 in fees for these services. Related Party Loans In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1.0 million of such Working Capital Loans may be convertible into units identical to the Private Placement Units at a price of $10.00 per unit. On February 21, 2021, the Sponsor committed up to $750,000 in loans to the Company for continuing operations to consummate a business combination. The loans are non-interest bearing, unsecured, and to be repaid upon the consummation of a business combination. In the event that a business combination does not occur, then all loaned amounts under this commitment will be forgiven except to the extent that the Company has funds available to it outside the trust account. On July 29, 2021, the Sponsor committed up to an additional $250,000 in loans to the Company for continuing operations to consummate a business combination. The loans are non-interest bearing, unsecured, and to be repaid upon the consummation of a business combination. In the event that a business combination does not occur, then all loaned amounts under this commitment will be forgiven except to the extent that the Company has funds available to it outside the trust account. The Sponsor has committed an aggregate of $1,000,000. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 7. COMMITMENTS AND CONTINGENCIES Registration Rights Pursuant to a registration rights agreement entered into on August 13, 2020, the holders of the Founder’s Shares, Private Placement Units, Private Placement Shares, Private Placement Warrants, securities issuable pursuant to the forward purchase agreement (discussed below), the units that may be issued upon conversion of Working Capital Loans, the shares of Class A common stock and the warrants issued as part of such units (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants included as part of the units that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder’s Shares) will be entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder’s Shares, only after conversion to the Company’s Class A common stock). The holders of the majority of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The registration rights agreement does not contain liquidating damages or other cash settlement provisions resulting from delays in registering the Company’s securities. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The underwriters are entitled to a deferred fee of $0.35 per Unit, or $8,050,000 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. Forward Purchase Agreement Nomura entered into a forward purchase agreement with the Company, which provides for the purchase by Nomura of the Company’s Public Shares for an aggregate purchase price of up to $100.0 million through, other than as described below, open market purchases or privately negotiated transactions with one or more third parties. In lieu of purchasing Public Shares in the open market or privately negotiated transactions, up to $85.0 million of such aggregate purchase price may instead be in the form of an investment in the Company’s equity securities on terms to be mutually agreed between Nomura and the Company, to occur concurrently with the closing of a Business Combination. In consideration of the forward purchase commitment, the Company will pay to Nomura (i) an amount equal to 2% of the aggregate purchase price of the purchases or investment requested by the Company pursuant to the forward purchase agreement (the “commitment fee”) plus (ii) an amount equal to the internal charges and carrying costs incurred by Nomura in connection with the forward purchase commitment (the “commitment carrying costs”) on a monthly basis during the period from and including the date the Company executes a definitive agreement for a Business Combination through the earlier of (x) the consummation of a Business Combination and (y) the date the Company notifies Nomura in writing that the Company does not require Nomura to provide the forward purchase commitment. Up to $1.0 million of aggregate commitment carrying costs, to the extent timely paid pursuant to the forward purchase agreement, may be credited against the commitment fee. If the Company requests that Nomura purchase or invest the full $100.0 million forward purchase commitment pursuant to the forward purchase agreement, a maximum of $1.0 million of the commitment carrying costs will not be credited toward the commitment fee. The decision to make such an investment in other equity securities will not reduce the aggregate purchase price. However, Nomura will be excused from its purchase obligation in connection with a specific business combination unless, within five business days following written notice delivered by the Company of its intention to enter into such Business Combination, Nomura notifies the Company that it has decided to proceed with the purchase in whole or in part. Nomura may decide not to proceed with the purchase for any reason, including, without limitation, if it has determined that such purchase would constitute a conflict of interest. Nomura will also be restricted from making purchases if they are in possession of any material nonpublic information not disclosed to the seller or if such purchases are prohibited by Regulation M under the Exchange Act. Nomura has also indicated its intent, if so requested by the Company, to use its commercially reasonable efforts to underwrite, arrange and/or syndicate up to $400 million of additional financing for the Company in the form of equity or debt (or a combination thereof) in connection with a Business Combination, subject to market conditions and on terms and conditions satisfactory in all respects to Nomura in its sole judgment and determination. Right of First Refusal The Company has agreed that, if Nomura offers to purchase any securities under the forward purchase agreement, it will have a “right of first refusal” to act as a bookrunner on any capital markets transaction issued in order to complete a Business Combination. In addition, so long as the investor owns 5% or more of the outstanding common stock of the post-business combination company on a fully-diluted basis, the Sponsor has agreed to use its best efforts and influence on the successor company to offer the investor a bookrunner role on any capital markets transaction. Any such bookrunner role will be pursuant to a separate agreement containing terms and conditions customary for the investor and mutually agreed upon by the Company or its successor company, as applicable. Notwithstanding the foregoing, the right of first refusal will not have a duration of more than three years from the date of commencement of sales of the Initial Public Offering. |
STOCKHOLDER'S EQUITY
STOCKHOLDER'S EQUITY | 9 Months Ended |
Sep. 30, 2021 | |
STOCKHOLDER'S EQUITY | |
STOCKHOLDER'S EQUITY | NOTE 8. STOCKHOLDER’S EQUITY Preferred Stock issued issued outstanding Class A Common Stock Class B Common Stock Holders of Class A common stock and Class B common stock are entitled to one vote for each share. Holders of Class A common stock and Class B common stock will vote together as a single class on all matters submitted to a vote of stockholders, except as required by law. The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination). |
WARRANTS
WARRANTS | 9 Months Ended |
Sep. 30, 2021 | |
WARRANTS | |
WARRANTS | NOTE 9. WARRANTS Warrants The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of Class A common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration. No warrant will be exercisable and the Company will not be obligated to issue any shares of Class A common stock upon exercise of a warrant unless Class A common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. The Company has agreed that as soon as practicable, but in no event later than 30 days, after the closing of a Business Combination, it will use its best efforts to file with the SEC a registration statement for the registration under the Securities Act of the shares of Class A common stock issuable upon exercise of the warrants and thereafter will use its reasonable best efforts to cause the same to become effective within 60 business days following the Business Combination and to maintain a current prospectus relating to the Class A common stock issuable upon exercise of the warrants, until the expiration of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the shares of Class A common stock issuable upon exercise of the warrants is not effective by the 60th business day after the closing of a Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. If that exemption, or another exemption, is not available, holders will not be able to exercise their warrants on a cashless basis. Once the warrants become exercisable, the Company may redeem the Public Warrants: ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon not less than 30 days ’ prior written notice of redemption to each warrant holder; and ● if, and only if, the reported last reported sale price of the Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending the third trading day prior to the date on which the Company sends the notice of redemption to each warrant holder. If the Company calls the Public Warrants for redemption for cash, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, or recapitalization, reorganization, merger or consolidation. However, except as described below, the warrants will not be adjusted for issuance of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. In addition, if the Company issues additional shares of common stock or equity-linked securities for capital raising purposes in connection with the closing of an initial Business Combination at an issue price or effective issue price of less than $9.20 per share of common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors, and in the case of any such issuance to the initial stockholders or their affiliates, without taking into account any Founder’s Shares or private placement securities held by them, as applicable, prior to such issuance) (the “Newly Issued Price”), the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the Newly Issued Price. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common stock issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable so long as they are held by the initial purchasers of the Private Placement Units or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers of the Private Placement Units or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 10. FAIR VALUE MEASUREMENTS The Company follows the guidance in ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually. The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based on our assessment of the assumptions that market participants would use in pricing the asset or liability. At September 30, 2021, there were 11,500,000 Public Warrants and 325,000 Private Placement Warrants outstanding. The following table presents information about the Company’s assets that are measured at fair value on a recurring basis at September 30, 2021 and December 31, 2020, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: September 30, December 31, Description Level 2021 2020 Assets: Marketable securities held in Trust Account 1 $ 230,008,192 $ 230,011,254 Liabilities Warrant Liability – Public Warrants 1 9,890,000 12,995,000 Warrant Liability – Private Warrants 3 286,000 370,500 The Warrants were accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on our balance sheets. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the statements of operations. The Private Warrants were valued using Monte Carlo Model, which is considered to be a Level 3 fair value measurement. The Monte Carlo model’s primary unobservable input utilized in determining the fair value of the Private Warrants is the expected volatility of the common stock. The expected volatility as of the IPO date was derived from observable public warrant pricing on comparable ‘blank-check’ companies without an identified target. The expected volatility as of subsequent valuation dates was implied from the Company’s own public warrant pricing. The Public warrants were valued using the close price of the public warrant price was used as the fair value as of each relevant date. The key inputs into the Monte Carlo simulation model for the Private Placement Warrants were as follows at December 31, 2020 and September 30, 2021: Input September 30, 2021 December 31, 2020 Risk-free interest rate 1.04 % 0.51 % Trading days per year 250 252 Expected volatility 14.0 % 15.8 % Exercise price $ 11.50 $ 11.50 Stock Price $ 9.91 $ 10.08 The following table presents the changes in the fair value of warrant liabilities: Private Placement Public Warrant liabilities December 31, 2020 $ 370,500 $ 12,995,000 $ 13,365,500 Change in fair value (133,250) (4,715,000) (4,848,250) Fair value as of March 31, 2021 237,250 8,280,000 8,517,250 Change in fair value 84,500 2,645,000 2,729,500 Fair value as of June 30, 2021 321,750 10,925,000 11,246,750 Change in fair value (35,750) (1,035,000) (1,070,750) Fair value as of September 30, 2021 $ 286,000 $ 9,890,000 $ 10,176,000 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2021 | |
SUBSEQUENT EVENTS | |
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 financial statements were issued. Based upon this review, other than described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. On November 10, 2021, the Company filed with the U.S. Securities and Exchange Commission (“SEC”) in preliminary form a registration statement on Form S-4 (the “Registration Statement”) which contains a preliminary proxy statement/prospectus, in connection with the proposed business combination between the Company and MSP Recovery announced on July 12, 2021. While the Registration Statement has not yet become effective and the information contained therein is subject to change, it provides important information about MSP Recovery, LCAP, and the proposed business combination. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X promulgated under the Securities Act. 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 as filed with the SEC on May 19, 2021. The interim results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future periods. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All significant intercompany balances and transactions have been eliminated in 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 independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial 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 condensed consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting 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 financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these financial statements is the determination of the fair value of warrant liabilities. Such estimates may be subject to change as more current information becomes available and accordingly, the actual results could differ significantly from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2021 and December 31, 2020. |
Marketable Securities Held in Trust Account | Marketable Securities Held in Trust Account At September 30, 2021 and December 31, 2020, substantially all of the assets held in the Trust Account were held in money market funds which are invested primarily in U.S. Treasury Securities. All of the Company’s investments held in the Trust Account are classified as trading securities. Trading securities are presented on the balance sheet at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of investments held in Trust Account are included in interest earned on marketable securities held in Trust Account in the accompanying condensed consolidated statements of operations. The estimated fair values of investments held in Trust Account are determined using available market information. |
Class A Common Stock Subject to Possible Redemption | Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Class A common stock subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable common stock (including common stock 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, common stock is classified as shareholders’ equity. The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ equity section of the Company’s condensed consolidated balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable Class A common stock resulted in charges against additional paid-in capital and accumulated deficit. At September 30, 2021, the Class A common stock reflected in the condensed consolidated balance sheet are reconciled in the following table: Gross proceeds $ 230,000,000 Less: Proceeds allocated to Public Warrants $ (13,225,000) Class A common stock issuance costs $ (12,292,456) Plus: Accretion of carrying value to redemption value $ 25,517,456 Class A common stock subject to possible redemption $ 230,000,000 |
Warrant Liability | Warrant Liabilities The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, Distinguishing Liabilities from Equity (“ASC 480”) and ASC 815, Derivatives and Hedging (“ASC 815”). The assessment considers whether the warrants are freestanding financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the warrants meet all of the requirements for equity classification under ASC 815, including whether the warrants are indexed to the Company’s own ordinary shares, among other conditions for equity classification. This assessment, which requires the use of professional judgment, is conducted at the time of warrant issuance and as of each subsequent quarterly period end date while the warrants are outstanding. For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the statements of operations. Based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the Company’s Private Placement Warrants are not indexed to the Company’s common stock in the manner contemplated by ASC Section 815-40-15 because the holder of the instrument is not an input into the pricing of a fixed-for-fixed option on equity shares. In addition, based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the tender offer provision fails the “classified in stockholders’ equity” criteria as contemplated by ASC Section 815-40-25. As a result, the Company accounts for the Public Warrants and Private Placement Warrants as liabilities in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. On March 27, 2020, the CARES Act was enacted in response to COVID-19 pandemic. Under ASC 740, the effects of changes in tax rates and laws are recognized in the period which the new legislation is enacted. The CARES Act made various tax law changes including among other things (i) increasing the limitation under Section 163(j) of the Internal Revenue Code of 1986, as amended (the “IRC”) for 2019 and 2020 to permit additional expensing of interest (ii) enacting a technical correction so that qualified improvement property can be immediately expensed under IRC Section 168(k), (iii) making modifications to the federal net operating loss rules including permitting federal net operating losses incurred in 2018, 2019, and 2020 to be carried back to the five preceding taxable years in order to generate a refund of previously paid income taxes and (iv) enhancing the recoverability of alternative minimum tax credits. |
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income (loss) per common stock is computed by dividing net income (loss) by the weighted average number of common stocks outstanding for the period. The Company applies the two-class method in calculating earnings per share. Accretion associated with the redeemable shares of Class A common stocks is excluded from earnings per share as the redemption value approximates fair value. The calculation of diluted income (loss) per share does not consider the effect of the warrants issued in connection with the (i) Initial Public Offering, and (ii) the private placement since the exercise of the warrants is contingent upon the occurrence of future events. The warrants are exercisable to purchase 11,825,000 Class A common stocks in the aggregate. As of September 30, 2021, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into common stocks and then share in the earnings of the Company. As a result, diluted net loss per common stock is the same as basic net loss per common stock for the periods presented. The following table reflects the calculation of basic and diluted net loss per common stock (in dollars, except per share amounts): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 (As Restated) (As Restated) Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per common stock Numerator: Allocation of net income (loss), as adjusted $ 582,608 $ 141,649 $ (304,448) $ (148,650) $ 560,306 $ 136,226 $ (192,876) $ (260,222) Denominator: Basic and diluted weighted average stock outstanding 23,650,000 5,750,000 10,858,152 5,301,630 23,650,000 5,750,000 3,645,803 4,918,796 Basic and diluted net income (loss) per common stock $ .02 $ .02 $ (.03) $ (.03) $ .02 $ .02 $ (.05) $ (.05) |
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 Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. |
Fair value of Financial Instruments | Fair value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature, except for warrant liabilities (see Note 10.) |
Recent Accounting Standards | Recent Accounting Standards In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06 — “Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”)”, to simplify accounting for certain financial instruments ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows. Management does not believe that any recently issued, but not yet effective, accounting standards update, if currently adopted, would have a material effect on the Company’s condensed consolidated financial statements. |
RESTATEMENT OF PREVIOUSLY ISS_2
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
Schedule of impact of the restatement on the Company's financial statements | As Previously Balance Sheet as of August 18, 2020 (audited) Reported Adjustment As Restated Class A common stock subject to possible redemption $ 176,443,060 $ 23,556,940 $ 200,000,000 Class A common stock $ 301 $ (236) $ 65 Additional paid-in capital $ 5,837,483 $ (5,837,483) $ — Accumulated deficit $ (838,356) $ (17,719,221) $ (18,557,577) Total Stockholders' Equity (Deficit) $ 5,000,003 $ (23,556,940) $ (18,556,937) Balance Sheet as of September 30, 2020 (unaudited) Class A common stock subject to possible redemption $ 205,177,310 $ 24,822,690 $ 230,000,000 Class A common stock $ 313 $ (248) $ 65 Additional paid-in capital $ 5,453,221 $ (5,453,221) $ — Accumulated deficit $ (454,099) $ (19,369,221) $ (19,823,320) Total Stockholders' Equity (Deficit) $ 5,000,010 $ (24,822,690) $ (19,822,680) Balance Sheet as of December 31, 2020 (audited) Class A common stock subject to possible redemption $ 203,568,640 $ 26,431,360 $ 230,000,000 Class A common stock $ 329 $ (264) $ 65 Additional paid-in capital $ 7,061,874 $ (7,061,874) $ — Accumulated deficit $ (2,062,769) $ (19,369,222) $ (21,431,991) Total Stockholders’ Equity (Deficit) $ 5,000,009 $ (26,431,360) $ (21,431,351) Balance Sheet as of March 31, 2021 (unaudited) Class A common stock subject to possible redemption $ 208,210,350 $ 21,789,650 $ 230,000,000 Class A common stock $ 283 $ (218) $ 65 Additional paid-in capital $ 2,420,210 $ (2,420,210) $ — Accumulated deficit $ 2,578,941 $ (19,369,222) $ (16,790,281) Total Stockholders' Equity (Deficit) $ 5,000,009 $ (21,789,650) $ (16,789,641) Balance Sheet as June 30, 2021 (unaudited) Class A common stock subject to possible redemption $ 203,540,920 $ 26,459,080 $ 230,000,000 Class A common stock $ 330 $ (265) $ 65 Additional paid-in capital $ 7,089,593 $ (7,089,593) $ — Accumulated deficit $ (2,090,494) $ (19,369,222) $ (21,459,716) Total Stockholders' Equity (Deficit) $ 5,000,004 $ (26,459,080) $ (21,459,076) Statement of Operations for the Three Months Ended September 30, 2020 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 18,952,768 (8,094,616) 10,858,152 Basic and diluted net (loss) per share, Class A $ — $ (.03) $ (.03) Basic and diluted weighted average shares outstanding, Class B Common Stock 3,374,881 (1,926,749) 5,301,630 Basic and diluted net (loss) per share, Class B Common Stock $ — $ (.03) $ (.03) Statement of Operations for the Nine Months Ended September 30, 2020 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 18,952,768 (15,306,965) 3,645,803 Basic and diluted net (loss) per share, Class A $ — $ (.05) $ (.05) Basic and diluted weighted average shares outstanding, Class B Common Stock 3,424,425 1,494,371 4,918,796 Basic and diluted net (loss) per share, Class B Common Stock $ — $ (.05) $ (.05) Statement of Operations for the Year Ended December 31, 2020 (audited) Basic and diluted weighted average shares outstanding, Class A Common Stock 20,323,974 181,518 20,505,492 Basic and diluted net (loss) per share, Class A $ — $ (0.08) $ (0.08) Basic and diluted weighted average shares outstanding, Class B Common Stock 2,318,726 2,809,006 5,127,732 Basic and diluted net (loss) per share, Class B Common Stock $ (0.89) $ 0.81 $ (0.08) Statement of Operations for the Three Months Ended March 31, 2021 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 21,693,414 1,956,586 23,650,000 Basic and diluted net (loss) per share, Class A $ — $ 0.16 $ 0.16 Basic and diluted weighted average shares outstanding, Class B Common Stock 9,043,136 (3,293,136) 5,750,000 Basic and diluted net (loss) per share, Class B Common Stock $ 0.51 $ (0.35) $ 0.16 Statement of Operations for the Three Months Ended June 30, 2021 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 20,821,035 2,828,965 23,650,000 Basic and diluted net (loss) per share, Class A $ — $ (0.16) $ (0.16) Basic and diluted weighted average shares outstanding, Class B Common Stock 8,485,715 (2,735,715) 5,750,000 Basic and diluted net (loss) per share, Class B Common Stock $ (0.54) $ 0.38 $ (0.16) Statement of Operations for the Six Months Ended June 30, 2020 (unaudited) Basic and diluted weighted average shares outstanding, Class A Common Stock 21,926,782 1,723,218 23,650,000 Basic and diluted weighted average shares outstanding, Class B Common Stock 8,809,768 (3,059,768) 5,750,000 Statement of Cash Flows for the Nine Months Ended September 30, 2020 (unaudited) Initial classification of Class A common stock subject to possible redemption $ 204,793,060 $ 25,206,940 $ 230,000,000 Change in value of Class A common stock subject to possible redemption $ 384,250 $ (384,250) $ — Statement of Cash Flows for the Year Ended December 31, 2020 (audited) Initial classification of Class A common stock subject to possible redemption $ 204,793,060 $ 25,206,940 $ 230,000,000 Change in value of Class A common stock subject to possible redemption $ (1,224,420) $ 1,224,420 $ — Statement of Cash Flows for the Three Months Ended March 31, 2021 (unaudited) Change in value of Class A common stock subject to possible redemption $ 4,641,710 $ (4,641,710) $ — Statement of Cash Flows for the Six Months Ended June 30, 2021 (unaudited) Change in value of Class A common stock subject to possible redemption $ (27,720) $ 27,720 $ — Statement of Changes in Stockholders' Equity (Deficit) for the Period Ended September 30, 2020 (unaudited) Sale of 23,000,000 Units, net of underwriting discounts 204,482,544 (204,482,544) — Class A common stock subject to possible redemption (205,177,310) 205,177,310 — Accretion to common stock subject to redemption amount — (25,517,456) (25,517,456) Total Stockholders' Equity 5,000,010 (24,822,689) (19,822,680) Statement of Changes in Stockholders' Equity (Deficit) for the Year Ended December 30, 2020 (audited) Change in value of common stock subject to redemption 1,608,670 (1,608,670) — Total Stockholders' Equity 5,000,009 (26,431,360) (21,431,351) Statement of Changes in Stockholders' Equity (Deficit) for the Period Ended March 31, 2021 (unaudited) Change in value of common stock subject to redemption (4,641,710) (4,641,710) — Total Stockholders' Equity 5,000,009 (21,789,650) (16,789,641) Statement of Changes in Stockholders' Equity (Deficit) for the Period Ended June 30, 2021 (unaudited) Change in value of common stock subject to redemption 4,669,430 (4,669,430) — Total Stockholders' Equity 5,000,004 (26,459,080) (21,459,076) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of reconciliation of Class A common stock reflected on the balance sheet | Gross proceeds $ 230,000,000 Less: Proceeds allocated to Public Warrants $ (13,225,000) Class A common stock issuance costs $ (12,292,456) Plus: Accretion of carrying value to redemption value $ 25,517,456 Class A common stock subject to possible redemption $ 230,000,000 |
Reconciliation of Net Loss per Common Share | The following table reflects the calculation of basic and diluted net loss per common stock (in dollars, except per share amounts): Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 (As Restated) (As Restated) Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per common stock Numerator: Allocation of net income (loss), as adjusted $ 582,608 $ 141,649 $ (304,448) $ (148,650) $ 560,306 $ 136,226 $ (192,876) $ (260,222) Denominator: Basic and diluted weighted average stock outstanding 23,650,000 5,750,000 10,858,152 5,301,630 23,650,000 5,750,000 3,645,803 4,918,796 Basic and diluted net income (loss) per common stock $ .02 $ .02 $ (.03) $ (.03) $ .02 $ .02 $ (.05) $ (.05) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE MEASUREMENTS | |
Summary of assets measured at fair value on a recurring basis | September 30, December 31, Description Level 2021 2020 Assets: Marketable securities held in Trust Account 1 $ 230,008,192 $ 230,011,254 Liabilities Warrant Liability – Public Warrants 1 9,890,000 12,995,000 Warrant Liability – Private Warrants 3 286,000 370,500 |
Key inputs for Private Placement Warrants | Input September 30, 2021 December 31, 2020 Risk-free interest rate 1.04 % 0.51 % Trading days per year 250 252 Expected volatility 14.0 % 15.8 % Exercise price $ 11.50 $ 11.50 Stock Price $ 9.91 $ 10.08 |
Schedule of fair value of warrant liabilities | Private Placement Public Warrant liabilities December 31, 2020 $ 370,500 $ 12,995,000 $ 13,365,500 Change in fair value (133,250) (4,715,000) (4,848,250) Fair value as of March 31, 2021 237,250 8,280,000 8,517,250 Change in fair value 84,500 2,645,000 2,729,500 Fair value as of June 30, 2021 321,750 10,925,000 11,246,750 Change in fair value (35,750) (1,035,000) (1,070,750) Fair value as of September 30, 2021 $ 286,000 $ 9,890,000 $ 10,176,000 |
DESCRIPTION OF ORGANIZATION A_2
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details) - USD ($) | Jul. 29, 2021 | Jul. 11, 2021 | Feb. 21, 2021 | Aug. 24, 2020 | Aug. 18, 2020 | Feb. 06, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Aug. 20, 2020 | Jan. 30, 2020 |
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Proceeds from issuance | $ 25,000 | ||||||||||
Redemption price per share | $ 10 | ||||||||||
Cash outside the trust | $ 353,032 | ||||||||||
Dissolution Expenses Payable | 100,000 | ||||||||||
Working capital deficit | $ 2,508,819 | ||||||||||
Membership Interest Purchase Agreement | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Numerator for calculation | $ 32,500,000,000 | ||||||||||
Denominator for calculation | $ 10 | ||||||||||
Number of Escrow Units | 6,000,000 | ||||||||||
Dividends Payable | $ 1,029,000,000 | ||||||||||
Sponsor | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Number of units sold (in shares) | 5,750,000 | ||||||||||
Fair value on assets held In trust (as a percent) | 80.00% | ||||||||||
Redemption price per share | $ 10 | ||||||||||
Business combination limit on net tangible assets | $ 5,000,001 | ||||||||||
Share redemption (as a percent) | 100.00% | ||||||||||
Related party committed loan amount to consummate business combination | $ 1,000,000 | $ 750,000 | |||||||||
Sponsor | Maximum | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Share redemption (as a percent) | 15.00% | ||||||||||
Related party committed loan amount to consummate business combination | $ 250,000 | $ 750,000 | |||||||||
Class A Common Stock | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Common stock shares par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Class V Common Stock | Membership Interest Purchase Agreement | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Common stock shares par value | $ 0.0001 | ||||||||||
New Warrants | Membership Interest Purchase Agreement | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Exercise price | $ 11.50 | ||||||||||
Initial Public Offering | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Number of units sold (in shares) | 23,000,000 | ||||||||||
Share price | $ 10 | $ 10 | |||||||||
Transaction cost | $ 13,128,937 | ||||||||||
Underwriting fees | 4,600,000 | ||||||||||
Deferred underwriting fee | 8,050,000 | ||||||||||
Other offering costs | $ 478,937 | ||||||||||
Initial Public Offering | Class A Common Stock | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Number of units sold (in shares) | 20,000,000 | ||||||||||
Share price | $ 10 | $ 11.50 | |||||||||
Proceeds from issuance IPO | $ 200,000,000 | ||||||||||
Private placement | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Number of units sold (in shares) | 650,000 | ||||||||||
Share price | $ 10 | 10 | |||||||||
Proceeds from issuance | $ 6,500,000 | ||||||||||
Private placement | Class A Common Stock | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Exercise price | $ 11.50 | ||||||||||
Over Allotment Option | |||||||||||
Subsidiary, Sale of Stock [Line Items] | |||||||||||
Number of units sold (in shares) | 3,000,000 | ||||||||||
Proceeds from issuance | $ 30,000,000 | ||||||||||
Aggregate proceeds held in the Trust Account | $ 230,000,000 |
RESTATEMENT OF PREVIOUSLY ISS_3
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Aug. 18, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Balance Sheet (audited) | ||||||||||||
Class A common stock subject to possible redemption | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | |||||||||
Accumulated deficit | (20,735,459) | (20,735,459) | (21,431,991) | |||||||||
Total Stockholders' Deficit | (20,734,819) | $ (21,459,076) | $ (16,789,641) | $ (19,822,680) | $ (21,459,076) | (20,734,819) | $ (19,822,680) | (21,431,351) | $ 24,000 | $ 24,000 | $ (1,000) | |
Statement of Cash Flows (unaudited) | ||||||||||||
Initial classification of Class A common stock subject to possible redemption | 230,000,000 | |||||||||||
Statement of Changes in Stockholders' Equity (Deficit) | ||||||||||||
Sale of 23,000,000 Units, net of underwriting discounts | 0 | |||||||||||
Accretion to common stock subject to redemption amount | 25,517,456 | |||||||||||
Stockholders' Equity Attributable to Parent | (20,734,819) | (21,459,076) | (16,789,641) | (19,822,680) | (21,459,076) | (20,734,819) | (19,822,680) | (21,431,351) | $ 24,000 | $ 24,000 | $ (1,000) | |
Restatement of redeemable common stock as temporary equity | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Accumulated deficit | (21,459,716) | (16,790,281) | (19,823,320) | (21,459,716) | (19,823,320) | (21,431,991) | $ (18,557,577) | |||||
Total Stockholders' Deficit | (21,459,076) | (16,789,641) | (19,822,680) | (21,459,076) | (19,822,680) | (21,431,351) | (18,556,937) | |||||
Statement of Cash Flows (unaudited) | ||||||||||||
Initial classification of Class A common stock subject to possible redemption | 230,000,000 | 230,000,000 | ||||||||||
Statement of Changes in Stockholders' Equity (Deficit) | ||||||||||||
Accretion to common stock subject to redemption amount | (25,517,456) | |||||||||||
Stockholders' Equity Attributable to Parent | (21,459,076) | (16,789,641) | (19,822,680) | (21,459,076) | (19,822,680) | (21,431,351) | (18,556,937) | |||||
As Previously Reported | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Additional paid-in capital | 7,089,593 | 2,420,210 | 5,453,221 | 7,089,593 | 5,453,221 | 7,061,874 | 5,837,483 | |||||
Accumulated deficit | (2,090,494) | 2,578,941 | (454,099) | (2,090,494) | (454,099) | (2,062,769) | (838,356) | |||||
Total Stockholders' Deficit | 5,000,004 | 5,000,009 | 5,000,010 | 5,000,004 | 5,000,010 | 5,000,009 | 5,000,003 | |||||
Statement of Cash Flows (unaudited) | ||||||||||||
Initial classification of Class A common stock subject to possible redemption | 204,793,060 | 204,793,060 | ||||||||||
Change in value of Class A common stock subject to possible redemption | 4,641,710 | (27,720) | 384,250 | (1,224,420) | ||||||||
Statement of Changes in Stockholders' Equity (Deficit) | ||||||||||||
Sale of 23,000,000 Units, net of underwriting discounts | 204,482,544 | |||||||||||
Class A common stock subject to possible redemption | (205,177,310) | |||||||||||
Change in value of common stock subject to redemption | (4,641,710) | 4,669,430 | 1,608,670 | |||||||||
Stockholders' Equity Attributable to Parent | 5,000,004 | 5,000,009 | 5,000,010 | 5,000,004 | 5,000,010 | 5,000,009 | 5,000,003 | |||||
Adjustment | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Additional paid-in capital | (7,089,593) | (2,420,210) | (5,453,221) | (7,089,593) | (5,453,221) | (7,061,874) | (5,837,483) | |||||
Accumulated deficit | (19,369,222) | (19,369,222) | (19,369,221) | (19,369,222) | (19,369,221) | (19,369,222) | (17,719,221) | |||||
Total Stockholders' Deficit | (26,459,080) | (21,789,650) | (24,822,690) | (26,459,080) | (24,822,690) | (26,431,360) | (23,556,940) | |||||
Statement of Cash Flows (unaudited) | ||||||||||||
Initial classification of Class A common stock subject to possible redemption | 25,206,940 | 25,206,940 | ||||||||||
Change in value of Class A common stock subject to possible redemption | (4,641,710) | 27,720 | (384,250) | 1,224,420 | ||||||||
Statement of Changes in Stockholders' Equity (Deficit) | ||||||||||||
Sale of 23,000,000 Units, net of underwriting discounts | (204,482,544) | |||||||||||
Class A common stock subject to possible redemption | 205,177,310 | |||||||||||
Change in value of common stock subject to redemption | (4,641,710) | (4,669,430) | (1,608,670) | |||||||||
Accretion to common stock subject to redemption amount | (25,517,456) | |||||||||||
Stockholders' Equity Attributable to Parent | (26,459,080) | (21,789,650) | $ (24,822,690) | (26,459,080) | $ (24,822,690) | (26,431,360) | (23,556,940) | |||||
Class A Common Stock | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Class A common stock | $ 65 | $ 65 | 65 | |||||||||
Statement of Operations (unaudited) | ||||||||||||
Weighted average shares outstanding, basic | 23,650,000 | 10,858,152 | 23,650,000 | 3,645,803 | ||||||||
Weighted average shares outstanding, diluted | 23,650,000 | 10,858,152 | 23,650,000 | 3,645,803 | ||||||||
Basic net (loss) per share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) | ||||||||
Diluted net (loss) per share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) | ||||||||
Class A Common Stock | Restatement of redeemable common stock as temporary equity | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Class A common stock | $ 65 | $ 65 | $ 65 | $ 65 | $ 65 | $ 65 | 65 | |||||
Statement of Operations (unaudited) | ||||||||||||
Weighted average shares outstanding, basic | 23,650,000 | 10,858,152 | 23,650,000 | 3,645,803 | 20,505,492 | |||||||
Weighted average shares outstanding, diluted | 23,650,000 | 23,650,000 | 10,858,152 | 23,650,000 | 3,645,803 | 20,505,492 | ||||||
Basic net (loss) per share | $ (0.16) | $ (0.03) | $ (0.05) | $ (0.08) | ||||||||
Diluted net (loss) per share | $ (0.16) | $ 0.16 | $ (0.03) | $ (0.05) | $ (0.08) | |||||||
Class A Common Stock | As Previously Reported | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Class A common stock | $ 330 | $ 283 | $ 313 | $ 330 | $ 313 | $ 329 | 301 | |||||
Statement of Operations (unaudited) | ||||||||||||
Weighted average shares outstanding, basic | 20,821,035 | 18,952,768 | 21,926,782 | 18,952,768 | 20,323,974 | |||||||
Weighted average shares outstanding, diluted | 20,821,035 | 21,693,414 | 18,952,768 | 21,926,782 | 18,952,768 | 20,323,974 | ||||||
Class A Common Stock | Adjustment | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Class A common stock | $ (265) | $ (218) | $ (248) | $ (265) | $ (248) | $ (264) | (236) | |||||
Statement of Operations (unaudited) | ||||||||||||
Weighted average shares outstanding, basic | 2,828,965 | (8,094,616) | 1,723,218 | (15,306,965) | 181,518 | |||||||
Weighted average shares outstanding, diluted | 2,828,965 | 1,956,586 | (8,094,616) | 1,723,218 | (15,306,965) | 181,518 | ||||||
Basic net (loss) per share | $ (0.16) | $ (0.03) | $ (0.05) | $ (0.08) | ||||||||
Diluted net (loss) per share | $ (0.16) | $ 0.16 | $ (0.03) | $ (0.05) | $ (0.08) | |||||||
Class A Common Stock Subject to Redemption | Restatement of redeemable common stock as temporary equity | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Class A common stock subject to possible redemption | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | 200,000,000 | |||||
Class A Common Stock Subject to Redemption | As Previously Reported | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Class A common stock subject to possible redemption | 203,540,920 | 208,210,350 | 205,177,310 | 203,540,920 | 205,177,310 | 203,568,640 | 176,443,060 | |||||
Class A Common Stock Subject to Redemption | Adjustment | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Class A common stock subject to possible redemption | $ 26,459,080 | $ 21,789,650 | $ 24,822,690 | $ 26,459,080 | $ 24,822,690 | 26,431,360 | $ 23,556,940 | |||||
Class B Common Stock | ||||||||||||
Balance Sheet (audited) | ||||||||||||
Class A common stock | $ 575 | $ 575 | $ 575 | |||||||||
Statement of Operations (unaudited) | ||||||||||||
Weighted average shares outstanding, basic | 5,750,000 | 5,301,630 | 5,750,000 | 4,918,796 | ||||||||
Weighted average shares outstanding, diluted | 5,750,000 | 5,301,630 | 5,750,000 | 4,918,796 | ||||||||
Basic net (loss) per share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) | ||||||||
Diluted net (loss) per share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) | ||||||||
Class B Common Stock | Restatement of redeemable common stock as temporary equity | ||||||||||||
Statement of Operations (unaudited) | ||||||||||||
Weighted average shares outstanding, basic | 5,750,000 | 5,750,000 | 5,301,630 | 5,750,000 | 4,918,796 | 5,127,732 | ||||||
Weighted average shares outstanding, diluted | 5,750,000 | 5,301,630 | 5,750,000 | 4,918,796 | 5,127,732 | |||||||
Basic net (loss) per share | $ (0.16) | $ 0.16 | $ (0.03) | $ (0.05) | $ (0.08) | |||||||
Diluted net (loss) per share | $ (0.16) | $ (0.03) | $ (0.05) | $ (0.08) | ||||||||
Class B Common Stock | As Previously Reported | ||||||||||||
Statement of Operations (unaudited) | ||||||||||||
Weighted average shares outstanding, basic | 8,485,715 | 9,043,136 | 3,374,881 | 8,809,768 | 3,424,425 | 2,318,726 | ||||||
Weighted average shares outstanding, diluted | 8,485,715 | 3,374,881 | 8,809,768 | 3,424,425 | 2,318,726 | |||||||
Basic net (loss) per share | $ (0.54) | $ 0.51 | $ (0.89) | |||||||||
Diluted net (loss) per share | $ (0.54) | $ (0.89) | ||||||||||
Class B Common Stock | Adjustment | ||||||||||||
Statement of Operations (unaudited) | ||||||||||||
Weighted average shares outstanding, basic | (2,735,715) | (3,293,136) | (1,926,749) | (3,059,768) | 1,494,371 | 2,809,006 | ||||||
Weighted average shares outstanding, diluted | (2,735,715) | (1,926,749) | (3,059,768) | 1,494,371 | 2,809,006 | |||||||
Basic net (loss) per share | $ 0.38 | $ (0.35) | $ (0.03) | $ (0.05) | $ 0.81 | |||||||
Diluted net (loss) per share | $ 0.38 | $ (0.03) | $ (0.05) | $ 0.81 |
RESTATEMENT OF PREVIOUSLY ISS_4
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Parenthetical) (Details) - shares | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Class A Common Stock | Common stock | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Sale of Units, net of underwriting discounts and offering expenses | 23,000,000 | 23,000,000 |
RESTATEMENT OF PREVIOUSLY ISS_5
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS - Additional Information (Details) | Sep. 30, 2021USD ($)$ / shares |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
Redemption value per share | $ / shares | $ 10 |
Minimum net tangible assets upon redemption of common stock subject to possible redemption | $ | $ 5,000,001 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Unrecognized tax benefits | 0 | |
Accrued for interest and penalties amount | 0 | |
Cash, FDIC Insured Amount | $ 250,000 | |
New Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded in the calculation of diluted loss per share | 11,825,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Class A common stock reflected in the balance sheet (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Gross proceeds | $ 230,000,000 | |
Less: Proceeds allocated to Public Warrants | (13,225,000) | |
Class A common stock issuance costs | 12,292,456 | |
Plus: Accretion of carrying value to redemption value | 25,517,456 | |
Class A common stock subject to possible redemption | $ 230,000,000 | $ 230,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - calculation of basic and diluted net loss per common stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Class A Common Stock | ||||
Numerator: | ||||
Allocation of net income (loss), as adjusted | $ 582,608 | $ (304,448) | $ 560,306 | $ (192,876) |
Denominator: | ||||
Weighted average shares outstanding, basic | 23,650,000 | 10,858,152 | 23,650,000 | 3,645,803 |
Weighted average shares outstanding, diluted | 23,650,000 | 10,858,152 | 23,650,000 | 3,645,803 |
Basic net income per common share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) |
Diluted net income per common share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) |
Class B Common Stock | ||||
Numerator: | ||||
Allocation of net income (loss), as adjusted | $ 141,649 | $ (148,650) | $ 136,226 | $ (260,222) |
Denominator: | ||||
Weighted average shares outstanding, basic | 5,750,000 | 5,301,630 | 5,750,000 | 4,918,796 |
Weighted average shares outstanding, diluted | 5,750,000 | 5,301,630 | 5,750,000 | 4,918,796 |
Basic net income per common share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) |
Diluted net income per common share | $ 0.02 | $ (0.03) | $ 0.02 | $ (0.05) |
INITIAL PUBLIC OFFERING (Detail
INITIAL PUBLIC OFFERING (Details) - $ / shares | Aug. 24, 2020 | Aug. 18, 2020 | Sep. 30, 2021 |
Initial Public Offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units sold (in shares) | 23,000,000 | ||
Purchase price per unit | $ 10 | $ 10 | |
Over Allotment Option | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units sold (in shares) | 3,000,000 | ||
Class A Common Stock | Initial Public Offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units sold (in shares) | 20,000,000 | ||
Purchase price per unit | $ 10 | $ 11.50 | |
Number of ordinary shares per unit | 1 | ||
Number of public warrants per unit | 1 | ||
Warrants exercise ratio | 1 |
PRIVATE PLACEMENT (Details)
PRIVATE PLACEMENT (Details) - USD ($) | Aug. 18, 2020 | Mar. 31, 2020 | Sep. 30, 2021 |
Subsidiary, Sale of Stock [Line Items] | |||
Purchase price | $ 25,000 | ||
Private placement | |||
Subsidiary, Sale of Stock [Line Items] | |||
Issuance of Class B common stock to Sponsor (in shares) | 650,000 | ||
Purchase price per unit | $ 10 | $ 10 | |
Purchase price | $ 6,500,000 | ||
Private placement | Class A Common Stock | |||
Subsidiary, Sale of Stock [Line Items] | |||
Warrants exercise price | $ 11.50 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jul. 29, 2021 | Feb. 21, 2021 | Aug. 24, 2020 | Aug. 14, 2020 | Feb. 06, 2020 | Jan. 10, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 |
Related Party Transaction [Line Items] | ||||||||||
Repayment of related party debt | $ 140,671 | |||||||||
General and administrative services expense per month | $ 15,000 | |||||||||
Proceeds held in trust account to repay working capital loans | $ 0 | |||||||||
Related party transaction Converted notes Price per share upon consummation of a Business Combination | $ 10 | |||||||||
Unsecured promissory note | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Borrowings principal amount | $ 300,000 | |||||||||
Due to related parties | $ 140,671 | |||||||||
Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Related party transaction Converted notes upon consummation of a Business Combination | $ 1,000,000 | |||||||||
Sponsor | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of units sold (in shares) | 5,750,000 | |||||||||
Stock dividend | 0.15 | |||||||||
Number of shares, common stock subject to forfeiture | 750,000 | |||||||||
Shares owned by initial stock holders (in percentage) | 22.03% | |||||||||
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) | $ 12 | |||||||||
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | 20 days | |||||||||
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | 30 days | |||||||||
Related party committed loan amount to consummate business combination | $ 1,000,000 | $ 750,000 | ||||||||
Sponsor | Class B Common Stock | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of units sold (in shares) | 5,000,000 | |||||||||
Proceeds from issuance of shares | $ 25,000 | |||||||||
Sponsor | Maximum | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Number of shares, common stock subject to forfeiture | 750,000 | |||||||||
Related party committed loan amount to consummate business combination | $ 250,000 | $ 750,000 | ||||||||
Accounts Payable and Accrued Liabilities | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Fees for administrative support | $ 45,000 | $ 30,000 | $ 135,000 | $ 30,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Mar. 31, 2020 | Sep. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Purchase price | $ 25,000 | |
Underwriting Agreement | ||
Loss Contingencies [Line Items] | ||
Deferred Fees, Payable per Unit | $ 0.35 | |
Deferred Fee Payable | $ 8,050,000 | |
Forward Purchase Agreement | ||
Loss Contingencies [Line Items] | ||
Purchase price | $ 100,000,000 | |
Commitment fee (in percent) | 2.00% | |
Open Market or Privately Negotiated Transactions | ||
Loss Contingencies [Line Items] | ||
Purchase price | $ 85,000,000 | |
Right of First Refusal | ||
Loss Contingencies [Line Items] | ||
Percentage of outstanding common stock of the post-business combination | 5.00% | |
Maximum duration (in years) | 3 years | |
Maximum | Forward Purchase Agreement | ||
Loss Contingencies [Line Items] | ||
Commitment carrying costs | $ 1,000,000 | |
Additional financing amount | $ 400,000,000 |
STOCKHOLDER'S EQUITY (Details)
STOCKHOLDER'S EQUITY (Details) | 9 Months Ended | ||
Sep. 30, 2021Vote$ / sharesshares | Dec. 31, 2020$ / sharesshares | Jan. 30, 2020$ / sharesshares | |
Class of Stock [Line Items] | |||
Preferred stock shares authorized | 1,000,000 | 1,000,000 | 1,000,000 |
Preferred stock shares par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Preferred stock shares issued | 0 | 0 | |
Preferred stock shares outstanding | 0 | 0 | |
Percentage of common stock outstanding for conversion basis | 20.00% | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock shares par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Number of votes per share of common stock | Vote | 1 | ||
Common stock, shares outstanding | 650,000 | 650,000 | |
Class A common stock subject to possible redemption, shares | 23,000,000 | 23,000,000 | |
Class B Common Stock | |||
Class of Stock [Line Items] | |||
Common stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 |
Common stock shares par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Number of votes per share of common stock | Vote | 1 | ||
Common stock, shares issued | 5,750,000 | 5,750,000 | |
Common stock, shares outstanding | 5,750,000 | 5,750,000 |
WARRANTS (Details)
WARRANTS (Details) | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Public Warrants [Member] | |
Warrant term | 5 years |
Warrants exercise price | $ 0.01 |
Sale price of the ordinary shares | 18 |
Closing of business combination | |
Purchase price per unit | $ 9.20 |
Exercise price of the warrants will be adjusted of the higher of the market value (in percentage) | 115.00% |
Period In which private warrants will not be transferable | 30 days |
Maximum | |
Written notice of redemption to each Public Warrant holder | 30 days |
Minimum | |
Written notice of redemption to each Public Warrant holder | 20 days |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) | Sep. 30, 2021shares |
Private Placement Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding | 325,000 |
Public Warrants [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding | 11,500,000 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of assets measured at fair value on a recurring basis (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warranty liability | $ 10,176,000 | $ 13,365,500 |
Level 1 | Public Warrants [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warranty liability | 9,890,000 | 12,995,000 |
Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities held in Trust Account | 230,008,192 | 230,011,254 |
Level 3 | Private Placement Warrants [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warranty liability | $ 286,000 | $ 370,500 |
FAIR VALUE MEASUREMENTS - Key i
FAIR VALUE MEASUREMENTS - Key inputs for Private Placement Warrants (Details) - Private Placement Warrants [Member] | Sep. 30, 2021$ / sharesD | Dec. 31, 2020$ / sharesD |
Risk-free interest rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 1.04 | 0.51 |
Trading days per year | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading days per year | D | 250 | 252 |
Expected volatility | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 14 | 15.8 |
Exercise price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 11.50 | 11.50 |
Stock Price | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrants measurement input | 9.91 | 10.08 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of fair value of warrant liabilities (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | |
New Warrants | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value at beginning | $ 11,246,750 | $ 8,517,250 | $ 13,365,500 |
Change in fair value | (1,070,750) | 2,729,500 | (4,848,250) |
Fair value at ending | 10,176,000 | 11,246,750 | 8,517,250 |
Private Placement Warrants [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value at beginning | 321,750 | 237,250 | 370,500 |
Change in fair value | (35,750) | 84,500 | (133,250) |
Fair value at ending | 286,000 | 321,750 | 237,250 |
Public Warrants [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value at beginning | 10,925,000 | 8,280,000 | 12,995,000 |
Change in fair value | (1,035,000) | 2,645,000 | (4,715,000) |
Fair value at ending | $ 9,890,000 | $ 10,925,000 | $ 8,280,000 |