Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-39406 | |
Entity Registrant Name | ACE Convergence Acquisition Corp. | |
Entity Incorporation, State or Country Code | E9 | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Postal Zip Code | 19805 | |
Entity Address, Address Line One | 1013 Centre Road, Suite 403S | |
Entity Address, City or Town | Wilmington | |
Entity Address State Or Province | DE | |
City Area Code | 302 | |
Local Phone Number | 633-2102 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Filer Category | Non-accelerated Filer | |
Entity Ex Transition Period | false | |
Entity Shell Company | true | |
Entity Central Index Key | 0001813658 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant | ||
Document and Entity Information | ||
Title of 12(b) Security | Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant | |
Trading Symbol | ACEVU | |
Security Exchange Name | NASDAQ | |
Class A ordinary shares, par value $0.0001 per share | ||
Document and Entity Information | ||
Title of 12(b) Security | Class A ordinary shares, par value $0.0001 per share | |
Trading Symbol | ACEV | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 2,743,228 | |
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | ||
Document and Entity Information | ||
Title of 12(b) Security | Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | |
Trading Symbol | ACEVW | |
Security Exchange Name | NASDAQ | |
Class B ordinary shares | ||
Document and Entity Information | ||
Entity Common Stock, Shares Outstanding | 5,750,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash | $ 0 | $ 8,390 |
Prepaid expenses | 15,597 | 113,140 |
Total Current Assets | 15,597 | 121,530 |
Cash and marketable securities held in Trust Account | 40,293,597 | 230,158,259 |
TOTAL ASSETS | 40,309,194 | 230,279,789 |
Current liabilities | ||
Accounts payable and accrued expenses | 15,756,798 | 6,260,642 |
Promissory note - related party | 1,051,499 | 527,756 |
Advance from related party | 427,857 | |
Convertible promissory note | 1,500,000 | |
Total current liabilities | 18,736,154 | 6,788,398 |
PIPE derivative liability | 19,905,700 | |
Warrant liability | 1,810,000 | 12,766,082 |
Deferred underwriting fee payable | 8,050,000 | 8,050,000 |
TOTAL LIABILITIES | 48,501,854 | 27,604,480 |
Commitments and Contingencies | ||
Shareholders' Deficit | ||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued or outstanding | ||
Accumulated deficit | (48,486,832) | (27,325,266) |
Total Shareholders' Deficit | (48,486,257) | (27,324,691) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT | 40,309,194 | 230,279,789 |
Class A ordinary shares subject to possible redemption | ||
Current liabilities | ||
Class A ordinary shares subject to possible redemption, 8,202,277 and 23,000,000 shares issued and outstanding at redemption value of $10.21 and $10.00 per share at September 30, 2022 and December 31, 2021, respectively | 40,293,597 | 230,000,000 |
Class A ordinary shares not subject to possible redemption | ||
Shareholders' Deficit | ||
Ordinary shares | 0 | 0 |
Class B ordinary shares | ||
Shareholders' Deficit | ||
Ordinary shares | $ 575 | $ 575 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Preferred stock, par value, (per share) | $ 0.0001 | $ 0.0001 |
Preference shares, shares authorized | 5,000,000 | 5,000,000 |
Preference shares, shares issued | 0 | 0 |
Preference shares, shares outstanding | 0 | 0 |
Class A ordinary shares | ||
Ordinary shares, par value (per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Class A ordinary shares subject to possible redemption, issued | 3,945,298 | 23,000,000 |
Class A ordinary shares subject to possible redemption, outstanding | 8,202,277 | 23,000,000 |
Class A ordinary shares subject to possible redemption | ||
Class A ordinary shares subject to possible redemption, issued | 3,945,298 | 23,000,000 |
Class A ordinary shares subject to possible redemption, outstanding | 3,945,298 | 23,000,000 |
Class A ordinary shares subject to possible redemption, redemption value per share | $ 10.21 | $ 10 |
Class A ordinary shares not subject to possible redemption | ||
Ordinary shares, shares issued | 0 | 0 |
Ordinary shares, shares outstanding | 0 | 0 |
Class B ordinary shares | ||
Ordinary shares, par value (per share) | $ 0.0001 | $ 0.0001 |
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 |
Ordinary shares, shares issued | 5,750,000 | 5,750,000 |
Ordinary shares, 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, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating costs | $ 894,289 | $ 2,634,162 | $ 3,248,689 | $ 4,773,008 |
Loss from operations | (894,289) | (2,634,162) | (3,248,689) | (4,773,008) |
Other income (expense): | ||||
Change in fair value of warrant liability | (362,000) | 24,916,621 | 10,956,082 | 14,433,236 |
Change in fair value of PIPE liability | (26,800) | (26,800) | ||
Interest earned on cash and marketable securities held in Trust Account | 5,802 | 113,123 | 61,010 | |
Termination Fees and Expenses | (7,353,469) | (7,353,469) | ||
Total other income (expense), net | (7,742,269) | 24,922,423 | 3,688,936 | 14,494,246 |
Net income (loss) | $ (8,636,558) | $ 22,288,261 | $ 440,247 | $ 9,721,238 |
Class A ordinary shares | ||||
Other income (expense): | ||||
Weighted average shares outstanding, basic | 4,459,878 | 23,000,000 | 8,092,696 | 23,000,000 |
Weighted average shares outstanding, diluted | 4,459,878 | 23,000,000 | 8,092,696 | 23,000,000 |
Basic net income (loss) per share | $ (0.85) | $ 0.78 | $ 0.03 | $ 0.34 |
Diluted net income (loss) per share | $ (0.85) | $ 0.78 | $ 0.03 | $ 0.34 |
Class B ordinary shares | ||||
Other income (expense): | ||||
Weighted average shares outstanding, basic | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 |
Weighted average shares outstanding, diluted | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 |
Basic net income (loss) per share | $ (0.85) | $ 0.78 | $ 0.03 | $ 0.34 |
Diluted net income (loss) per share | $ (0.85) | $ 0.78 | $ 0.03 | $ 0.34 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' DEFICIT - USD ($) | Class A ordinary shares not subject to possible redemption Common stock | Class B ordinary shares Common stock | Additional Paid in Capital | Accumulated Deficit | Total |
Balance at the beginning at Dec. 31, 2020 | $ 0 | $ 575 | $ 0 | $ (33,171,769) | $ (33,171,194) |
Balance at the beginning (in shares) at Dec. 31, 2020 | 0 | 5,750,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (11,524,429) | (11,524,429) | |||
Balance at the end at Mar. 31, 2021 | $ 0 | $ 575 | 0 | (44,696,198) | (44,695,623) |
Balance at the end (in shares) at Mar. 31, 2021 | 0 | 5,750,000 | |||
Balance at the beginning at Dec. 31, 2020 | $ 0 | $ 575 | 0 | (33,171,769) | (33,171,194) |
Balance at the beginning (in shares) at Dec. 31, 2020 | 0 | 5,750,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 9,721,238 | ||||
Balance at the end at Sep. 30, 2021 | $ 0 | $ 575 | 0 | (23,450,531) | (23,449,956) |
Balance at the end (in shares) at Sep. 30, 2021 | 0 | 5,750,000 | |||
Balance at the beginning at Mar. 31, 2021 | $ 0 | $ 575 | 0 | (44,696,198) | (44,695,623) |
Balance at the beginning (in shares) at Mar. 31, 2021 | 0 | 5,750,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (1,042,594) | (1,042,594) | |||
Balance at the end at Jun. 30, 2021 | $ 0 | $ 575 | 0 | (45,738,792) | (45,738,217) |
Balance at the end (in shares) at Jun. 30, 2021 | 0 | 5,750,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 22,288,261 | 22,288,261 | |||
Balance at the end at Sep. 30, 2021 | $ 0 | $ 575 | 0 | (23,450,531) | (23,449,956) |
Balance at the end (in shares) at Sep. 30, 2021 | 0 | 5,750,000 | |||
Balance at the beginning at Dec. 31, 2021 | $ 0 | $ 575 | 0 | (27,325,266) | (27,324,691) |
Balance at the beginning (in shares) at Dec. 31, 2021 | 0 | 5,750,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Accretion for Class A ordinary shares to redemption amount | (492,136) | (492,136) | |||
Net income (loss) | (1,058,490) | (1,058,490) | |||
Balance at the end at Mar. 31, 2022 | $ 575 | (28,875,892) | (28,875,317) | ||
Balance at the end (in shares) at Mar. 31, 2022 | 5,750,000 | ||||
Balance at the beginning at Dec. 31, 2021 | $ 0 | $ 575 | 0 | (27,325,266) | (27,324,691) |
Balance at the beginning (in shares) at Dec. 31, 2021 | 0 | 5,750,000 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | 440,247 | ||||
Balance at the end at Sep. 30, 2022 | $ 0 | $ 575 | 0 | (48,486,832) | (48,486,257) |
Balance at the end (in shares) at Sep. 30, 2022 | 0 | 5,750,000 | |||
Balance at the beginning at Mar. 31, 2022 | $ 575 | (28,875,892) | (28,875,317) | ||
Balance at the beginning (in shares) at Mar. 31, 2022 | 5,750,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Accretion for Class A ordinary shares to redemption amount | (1,009,587) | (1,009,587) | |||
Net income (loss) | 10,135,295 | 10,135,295 | |||
Balance at the end at Jun. 30, 2022 | $ 575 | (19,750,184) | (19,749,609) | ||
Balance at the end (in shares) at Jun. 30, 2022 | 5,750,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Accretion for Class A ordinary shares to redemption amount | (221,190) | (221,190) | |||
Fair value of PIPE derivative liability at issuance | (19,878,900) | (19,878,900) | |||
Net income (loss) | (8,636,558) | (8,636,558) | |||
Balance at the end at Sep. 30, 2022 | $ 0 | $ 575 | $ 0 | $ (48,486,832) | $ (48,486,257) |
Balance at the end (in shares) at Sep. 30, 2022 | 0 | 5,750,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities: | ||||
Net income | $ 440,247 | $ 9,721,238 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Interest earned on cash and marketable securities held in Trust Account | (113,123) | (61,010) | ||
Change in fair value of warrant liability | $ 362,000 | $ (24,916,621) | (10,956,082) | (14,433,236) |
Change in fair value of PIPE derivative liability | 26,800 | 26,800 | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 97,543 | 171,117 | ||
Accounts payable and accrued expenses | 9,496,156 | 3,516,107 | ||
Net cash used in operating activities | (1,008,459) | (1,085,784) | ||
Cash Flows from Investing Activities: | ||||
Investment of cash into Trust Account | (1,451,531) | |||
Cash withdrawn from Trust Account in connection with redemption | 191,429,316 | |||
Net cash provided by investing activities | 189,977,785 | |||
Cash Flows from Financing Activities: | ||||
Proceeds from promissory note - related party | 523,743 | 309,210 | ||
Advance from related party | 427,857 | |||
Convertible promissory note | 1,500,000 | |||
Redemption of ordinary shares | (191,429,316) | |||
Net cash provided by (used in) financing activities | (188,977,716) | 309,210 | ||
Net Change in Cash | (8,390) | (776,574) | ||
Cash - Beginning of period | 8,390 | 792,416 | ||
Cash - End of period | $ 0 | $ 15,842 | $ 0 | $ 15,842 |
ORGANIZATION AND PLAN OF BUSINE
ORGANIZATION AND PLAN OF BUSINESS OPERATIONS | 9 Months Ended |
Sep. 30, 2022 | |
ORGANIZATION AND PLAN OF BUSINESS OPERATIONS | |
ORGANIZATION AND PLAN OF BUSINESS OPERATIONS | NOTE 1 — ORGANIZATION AND PLAN OF BUSINESS OPERATIONS ACE Convergence Acquisition Corp. (the “Company”) is a blank check company incorporated as a Cayman Islands exempted company on March 31, 2020. The Company was formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or other similar business combination with one or more businesses (a “Business Combination”). On January 6, 2021, ACE Convergence Subsidiary Corp. (“Merger Sub”), a Delaware corporation and a wholly owned subsidiary of the Company, was formed. Although the Company is not limited to a particular industry or sector for purposes of consummating a Business Combination, the Company intends to focus on businesses in the IT infrastructure software and semiconductor sector. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies. As of September 30, 2022, the Company had not commenced any operations. All activity through September 30, 2022, relates to the Company’s formation, its 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. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The registration statement for the Company’s Initial Public Offering was declared effective on July 27, 2020. On July 30, 2020, the Company consummated the Initial Public Offering of 23,000,000 units (the “Units,” and the Class A ordinary shares, par value $0.0001 per share, included in the Units offered, the “Public Shares” or the “Class A Ordinary Shares”), which includes the full exercise by the underwriters of their over-allotment option in the amount of 3,000,000 Units, at $10.00 per Unit, generating gross proceeds of $230,000,000, which is described in Note 4. Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 6,600,000 warrants (the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to the Company’s sponsor, ACE Convergence Acquisition LLC, a Delaware limited liability company (the “Sponsor”), generating gross proceeds of $6,600,000, which is described in Note 5. Transaction costs amounted to $13,273,096, consisting of $4,600,000 of underwriting fees, $8,050,000 of deferred underwriting fees and $623,096 of other offering costs. Following the closing of the Initial Public Offering on July 30, 2020, an amount of $230,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”) which was invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less, or in any open-ended investment company that holds itself out as a money market fund investing solely in U.S. Treasuries and meeting certain conditions under Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earliest of: (i) the completion of a Business Combination and (ii) the distribution of the funds in the Trust Account to the Company’s shareholders, as described below. On June 22, 2022, the Company instructed Continental Stock Transfer & Trust Company, the trustee managing the Trust Account, to hold all funds in the Trust Account in cash until the earlier of the consummation of the Tempo Business Combination (as defined below) or the liquidation of the Company. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The Nasdaq listing rules require that the Business Combination must be with one or more operating businesses or assets with a fair market value equal to at least 80% of the assets held in the Trust Account (as defined below) (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Account). The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940. There is no assurance that the Company will be able to successfully effect a Business Combination. The Company will provide the holders of the public shares (the “Public Shareholders”) with the opportunity to redeem all or a portion of their public shares upon the completion of the Business Combination, either (i) in connection with a general meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Shareholders will be entitled to redeem their Public Shares, equal to the aggregate amount then on deposit in the Trust Account, calculated as of two The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 and, if the Company seeks shareholder approval, it receives an ordinary resolution under Cayman Islands law approving a Business Combination, which requires the affirmative vote of a majority of the shareholders who attend and vote in person or by proxy at a general meeting of the Company. If a shareholder vote is not required and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Fourth Amended and Restated Memorandum and Articles of Association, conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (the “SEC”), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination. If the Company seeks shareholder approval in connection with a Business Combination, the Company’s Sponsor and its permitted transferees have agreed to vote their Founder Shares (as defined in Note 5) in favor of approving a Business Combination. Subject to applicable securities laws (including with respect to material nonpublic information), the Sponsor and its and the Company’s respective directors, officers, advisors or respective affiliates may (i) purchase public shares from institutional and other investors (including those who vote, or indicate an intention to vote, against any of the proposals presented in connection with a Business Combination, or elect to redeem, or indicate an intention to redeem, public shares), (ii) enter into transactions with such investors and others to provide them with incentives to not redeem their public shares, or (iii) execute agreements to purchase such public shares from such investors or enter into non-redemption agreements in the future. In the event that the Sponsor or its or the Company’s respective directors, officers, advisors or respective affiliates purchase public shares in situations in which the tender offer rules restrictions on purchases would apply, they (a) would purchase the public shares at a price no higher than the price offered through the Company’s redemption process (i.e., approximately $10.21 per share based on Trust Account figures as of September 30, 2022; (b) would represent in writing that such public shares will not be voted in favor of approving a Business Combination; and (c) would waive in writing any redemption rights with respect to the public shares so purchased. To the extent any such purchases are made by the Sponsor or its or the Company’s respective directors, officers, advisors or respective affiliates in situations in which the tender offer rules and restrictions on purchases apply, the Company will disclose in a Current Report on Form 8-K prior to the extraordinary general meeting the following: (i) the number of public shares purchased outside of the redemption offer, along with the purchase price(s) for such public shares; (ii) the purpose of any such purchases; (iii) the impact, if any, of the purchases on the likelihood that the Business Combination will be approved; (iv) the identities of the Company securityholders who sold to the Sponsor or its or the Company’s respective directors, officers, advisors or respective affiliates (if not purchased on the open market) or the nature of the securityholders (e.g., 5% security holders) who sold such public shares; and (v) the number of ordinary shares for which the Company has received redemption requests pursuant to its redemption offer. The purpose of such share purchases and other transactions would be to increase the likelihood of (x) satisfaction of a minimum cash condition in connection with a Business Combination, (y) otherwise limiting the number of public shares electing to redeem and (z) the Company’s net tangible assets (as determined in accordance with Rule 3a51(g)(1) of the Exchange Act) being at least $5,000,001. A purchase of warrants by the Sponsor or its or the Company’s respective directors, officers, advisors or respective affiliates may have the effect of increasing share ownership of the target company on a fully diluted basis. If such transactions are affected, the consequence could be to cause the Business Combination to be consummated in circumstances where such consummation could not otherwise occur. Consistent with SEC guidance, purchases of shares by the persons described above would not be permitted to be voted for the Business Combination at the extraordinary general meeting and could decrease the chances that the Business Combination would be approved. In addition, if such purchases are made, the public “float” of the Company’s securities and the number of beneficial holders of its securities may be reduced, possibly making it difficult to maintain or obtain the quotation, listing or trading of its securities on a national securities exchange. Additionally, each Public Shareholder may elect to redeem their Public Shares, with or without voting, and if they do vote, irrespective of whether they vote for or against a proposed Business Combination. Notwithstanding the foregoing, if the Company seeks shareholder approval of the Business Combination and the Company does not conduct redemptions pursuant to the tender offer rules, a Public Shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined 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% of the Public Shares without the Company’s prior written consent. The Sponsor and its permitted transferees have agreed (a) to waive their redemption rights with respect to any Founder Shares and Public Shares held by them in connection with the completion of a Business Combination and (b) not to propose an amendment to the Company’s Memorandum and Articles of Association (i) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of the Public Shares if the Company does not complete a Business Combination within the Combination Period (as defined below) or (ii) with respect to any other provision relating to shareholders’ rights or pre-initial business combination activity, unless the Company provides the Public Shareholders with the opportunity to redeem their Public Shares upon approval of any such amendment at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (which interest shall be net of taxes payable), divided by the number of then issued and outstanding Public Shares. The Company will have until January 30, 2023 (the “Combination Period”), to complete the Business Combination. On January 21, 2022, the shareholders of the Company voted to amend the Company’s Amended and Restated Memorandum and Articles of Association to extend the Combination Period to July 13, 2022, from January 30, 2022. On January 21, 2022, in connection with the extension of the business combination period, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 14,797,723 Class A Ordinary Shares. As a result, $148,079,821 was paid out of the Trust Account in connection with such redemptions. On July 12, 2022, the shareholders of the Company voted to amend the Company’s Second Amended and Restated Memorandum and Articles of Association to extend the Combination Period to October 13, 2022, and in connection therewith, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 4,256,979 Class A Ordinary Shares. As a result, $43,349,494 was paid out of the Trust Account in connection with such redemptions. On October 11, 2022, the shareholders of the Company voted to amend the Company’s Third Amended and Restated Memorandum and Articles of Association to extend the Combination Period to January 30, 2023, and in connection therewith, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 1,202,070 Class A Ordinary Shares. As a result, $12,324,919 was paid out of the Trust Account in connection with such redemptions. If the Company has not completed a Business Combination within the Combination Period (as it may be extended), 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 The Sponsor and its permitted transferees have agreed to waive their rights to liquidating distributions from the Trust Account with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period (as it may be extended). However, if the Sponsor or any of its respective affiliates acquire Public Shares, 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 (as it may be extended). The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 6) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period (as it may be extended), 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 that it will be liable to the Company if and to the extent any claims by a third party (other than the Company’s independent auditors) 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 (1) $10.00 per Public Share or (2) such lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of trust assets, in each case net of the interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). 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 (other than the Company’s independent auditors), 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. Going Concern As of September 30, 2022, the Company had no cash in its operating bank accounts, $40,293,597 in cash held in the Trust Account to be used for a Business Combination or to repurchase or redeem its ordinary shares in connection therewith and a working capital deficit of $18,720,557. The Company intends to complete a Business Combination by January 30, 2023 (or, as such date may be extended, such extended date). However, in the absence of a completed Business Combination, the Company will require additional capital. The Company as of September 30, 2022, has no cash held outside of trust and will require further capital contribution from the Sponsor, management, or related parties. 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, suspending the pursuit of a Business Combination. 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 one year from the date of these financial statements 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. In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” the Company has until January 30, 2023, to consummate a Business Combination. It is uncertain that the Company will be able to consummate a Business Combination by this time. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company. Management has determined that the liquidity condition and mandatory liquidation, should a Business Combination not occur, and potential subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities as of September 30, 2022, should the Company be required to liquidate after January 30, 2023. The Company intends to complete its Business Combination before January 30, 2023. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated interim financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 10, 2022. The interim results for the three and nine months ended September 30, 2022, are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any future periods. Principles of Consolidation The accompanying condensed 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 of 2002, 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 shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with those of another public company which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. One of the more significant accounting estimates included in these financial statements is the determination of fair value of the warrant liability. 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 Marketable Securities Held in Trust Account At September 30, 2022, all of the assets held in the Trust Account were held in cash. At December 31, 2021, substantially all of the assets held in the Trust Account were held in cash and money market funds which were invested primarily in U.S. Treasury securities. All of the Company’s investments that were 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. With respect to the regulation of special purpose acquisition companies like the Company (“SPACs”), on March 30, 2022, the SEC issued proposed rules (the “SPAC Rule Proposals”) relating to, among other items, disclosures in business combination transactions involving SPACs and private operating companies; the condensed financial statement requirements applicable to transactions involving shell companies; the use of projections by SPACs in SEC filings in connection with proposed business combination transactions; the potential liability of certain participants in proposed business combination transactions; and the extent to which SPACs could become subject to regulation under the Investment Company Act of 1940, as amended, including a proposed rule that would provide SPACs a safe harbor from treatment as an investment company if they satisfy certain conditions that limit a SPAC’s duration, asset composition, business purpose and activities. With regard to the SEC’s investment company proposals included in the SPAC Rule Proposals, while the funds in the Trust Account have, since the Company’s initial public offering, been held only in U.S. government treasury bills with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries, to mitigate the risk of being viewed as operating an unregistered investment company (including pursuant to the subjective test of Section 3(a)(1)(A) of the Investment Company Act of 1940), on June 22, 2022, the Company instructed Continental Stock Transfer & Trust Company, the trustee managing the Trust Account, to hold all funds in the Trust Account in cash until the earlier of consummation of the Tempo Business Combination or the liquidation of the Company. 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, 2022, and December 31, 2021. Warrant Liability The Company accounts for the public warrants and the private placement warrants (collectively, the “Warrants”) in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815-40 under which the Warrants do not meet the criteria for equity treatment and must be recorded as derivative liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s condensed consolidated statements of operations. The Private Placement Warrants (and the Public Warrants for periods where no observable traded price was available) are valued using a Modified Black Scholes Model. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price was used as the fair value as of each relevant date. As of September 30, 2022 due to market conditions the Company is using the price of the Public Warrants to value the Private Warrants. Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC 815. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the issuance date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The PIPE Derivative is comprised of the Additional PIPE Incentive Shares (as defined in Note 6). The PIPE Derivative meets the criteria for derivative liability classification. As such, the PIPE derivative liability is recorded at its initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the derivative liability is recognized as a non-cash gain or loss on the condensed statements of operations. The fair value of the derivative liability is discussed in Note 9. Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares 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, 2022, and December 31, 2021, Class A ordinary shares subject to possible redemption are presented as temporary equity, outside of the shareholders’ deficit section of the Company’s condensed consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. 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 ordinary shares resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit. On January 13, 2022, contingent upon the Company’s shareholders’ approval of the extension of the business combination period, the Sponsor agreed to contribute to the Company as a loan $0.03 for each Class A Ordinary Share of the Company that was not redeemed in connection with the shareholder vote to approve such extension, for each month (or a pro rata portion thereof if less than a month) until the earlier of (i) the date of the extraordinary general meeting held in connection with the shareholder vote to approve the Tempo Business Combination and (ii) $1.5 million has been loaned, which amounts were to be deposited into the Trust Account. For the three and nine months ended September 30, 2022, the Company contributed an aggregate of $221,190 and $1,451,532 to the Trust Account, respectively. On June 30, 2022, the Sponsor and the Company agreed to, among other things, increase the aggregate principal amount available under such loan from $1,500,000 to $2,000,000, contingent upon the approval by the Company’s shareholders of the proposal to extend the date by which the Company must complete an initial business combination to October 13, 2022, which proposal was approved at an extraordinary general meeting on July 12, 2022. On August 28, 2022, the Company and the Sponsor agreed to, among other things, increase the aggregate principal amount available under such loan from $2,000,000 to $2,125,000, contingent upon the approval by the Company’s shareholders of the extension of the date by which the Company must consummate an initial business combination to January 30, 2023, which proposal was approved in October 2022. Monthly deposits into the Trust Account following the October 2022 redemptions are based on the number of Class A Ordinary Shares still outstanding following such redemptions. In connection with the extension of the business combination period in January 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 14,797,723 Class A Ordinary Shares. As a result, $148,079,821 was paid out of the Trust Account in connection with such redemptions. In connection with the extension of the business combination period in July 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 4,256,979 Class A Ordinary Shares. As a result, $43,349,494 was paid out of the Trust Account in connection with such redemptions. In connection with the extension of the business combination period in October 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 1,202,070 Class A Ordinary Shares. As a result, $12,349,642 was paid out of the Trust Account in connection with such redemptions. At September 30, 2022, and December 31, 2021, the Class A Ordinary Shares reflected in the condensed consolidated balance sheets are reconciled in the following table: Gross proceeds $ 230,000,000 Less: Proceeds allocated to Public Warrants (11,270,000) Class A ordinary shares issuance costs (12,737,837) Plus: Accretion of carrying value to redemption value 24,007,837 Class A ordinary shares subject to possible redemption, December 31, 2021 $ 230,000,000 Less: Redemption of Class A Ordinary Shares (191,429,316) Add: Accretion of carrying value to redemption value 1,722,913 Class A ordinary shares subject to possible redemption, September 30, 2022 $ 40,293,597 Offering Costs Offering costs consisted of underwriting, legal, accounting and other expenses incurred through the Initial Public Offering that are directly related to the Initial Public Offering. Offering costs amounted to $13,273,096, of which $12,605,837 were charged to temporary equity and accreted to redemption value upon the completion of the Initial Public Offering, and the remaining $667,259 of offering costs allocated to the warrant liability was charged to operations. Income Taxes ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30, 2022, and December 31, 2021, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. 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 considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the periods presented. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. Net Income (Loss) Per Ordinary Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income (loss) per ordinary share is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding for the period. Accretion associated with the redeemable shares of Class A ordinary shares 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 18,100,000 Class A ordinary shares in the aggregate. For the three and nine months ended September 30, 2022 and 2021, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted net loss per ordinary share is the same as basic net loss per ordinary share for the periods presented. The following table reflects the calculation of basic and diluted net income (loss) per ordinary share (in dollars, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per ordinary share Numerator: Allocation of net income (loss) $ (3,772,620) $ (4,863,938) $ 17,830,609 4,457,652 $ 257,377 $ 182,870 $ 7,776,990 1,944,248 Denominator: Basic and diluted weighted average shares outstanding 4,459,878 5,750,000 23,000,000 5,750,000 8,092,696 5,750,000 23,000,000 5,750,000 Basic and diluted net income (loss) per ordinary share $ (0.85) $ (0.85) $ 0.78 0.78 $ 0.03 $ 0.03 $ 0.34 0.34 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limits of $250,000. The Company has not experienced losses on this account, and management believes the Company is not exposed to significant risks on such account. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature except derivative liabilities (see Note 9). Recent Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed consolidated financial statements. |
INITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING | 9 Months Ended |
Sep. 30, 2022 | |
INITIAL PUBLIC OFFERING | |
INITIAL PUBLIC OFFERING | NOTE 3 — INITIAL PUBLIC OFFERING Pursuant to the Initial Public Offering, the Company sold 23,000,000 Units, which includes the full exercise by the underwriters of their over-allotment option in the amount of 3,000,000 Units, at a purchase price of $10.00 per Unit. Each Unit consists of one Class A ordinary share and one- half of one |
PRIVATE PLACEMENT
PRIVATE PLACEMENT | 9 Months Ended |
Sep. 30, 2022 | |
PRIVATE PLACEMENT | |
PRIVATE PLACEMENT | NOTE 4 — PRIVATE PLACEMENT Simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 6,600,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, for an aggregate purchase price of $6,600,000. Certain of the Private Placement Warrants have since been transferred to certain permitted transferees. Each Private Placement Warrant is exercisable to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment (see Note 8). A portion of the proceeds from the Private Placement Warrants were added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period (as it may be extended), the proceeds from the sale of the Private Placement Warrants will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law) and the Private Placement Warrants will expire worthless. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2022 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 5 — RELATED PARTY TRANSACTIONS Founder Shares In May 2020, the Sponsor purchased 5,750,000 of the Company’s Class B ordinary shares (the “Founder Shares”) for an aggregate consideration of $25,000. On May 29, 2020, the Sponsor transferred an aggregate of 155,000 Founder Shares to certain members of the Company’s management team. On October 13, 2021, the Sponsor distributed 1,678,500 Founder Shares to Sunny Siu. In January 2022, the Sponsor distributed 755,930 Founder Shares to ACE SO5 Holdings Limited (“ACE SO5”), an affiliate of the Sponsor, and ACE SO5 became a party to (i) the Letter Agreement, dated as of July 27, 2020, by and among ACE, the Sponsor and certain of ACE’s current and former officers, directors and director nominees, and (ii) the Sponsor Support Agreement (as defined below). The Sponsor, the initial shareholders and their respective permitted transferees have agreed, subject to limited exceptions, not to transfer, assign or sell any of their Founder Shares until the earlier to occur of: (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share dividends, rights issuances, consolidations, reorganizations, recapitalizations and the like) for any 20 30 Working Capital Facility On August 12, 2020, the Company entered into a working capital facility (the “Working Capital Facility”) with ASIA-IO Advisors Limited (“ASIA-IO”), an affiliate of the Company, in the aggregate amount of $1,500,000. The funds from the Working Capital Facility shall be utilized to finance transaction costs in connection with a Business Combination. The Working Capital Facility is non-interest bearing, non-convertible and due to be repaid upon the consummation of a Business Combination. In return, the Company deposited $900,000 into an account held by ASIA-IO, from which the Company may make fund withdrawals for up to $1,500,000. Any outstanding amounts deposited with ASIA-IO upon the completion of a Business Combination or dissolution of the Company, shall be returned to the Company. As of September 30, 2022, and December 31, 2021, the Company had $1,051,499 and $527,756, respectively, borrowings under the working capital facility. Administrative Services Agreement The Company entered into an agreement, commencing on July 28, 2020, to pay the Sponsor up to $10,000 per month for office space, administrative and support services. Upon completion of a Business Combination or its liquidation, the Company will cease paying these monthly fees. For the three and nine months ended September 30, 2022, the Company incurred $30,000 and $90,000, respectively, in fees for these services, of which such fee is included in accrued liabilities as of September 30, 2022, on the condensed consolidated balance sheet. For the three and nine months ended September 30, 2021, the Company incurred $30,000 and $90,000 in fees for these services. As of September 30, 2022, and December 31, 2021 the Company had accrued fees in the amount of $180,000 and $90,000, respectively. Related Party Loans On January 13, 2022, in connection with the Company’s extension of the date by which it must complete an initial business combination, the Sponsor agreed to contribute to the Company as a loan (as amended and restated on June 30, 2022, and August 28, 2022, the “Sponsor Loan”) $0.03 for each Class A Ordinary Share of the Company that was not redeemed in connection with the shareholder vote to approve such extension, for each month (or a pro rata portion thereof if less than a month) until the earlier of (i) the date of the extraordinary general meeting held in connection with the shareholder vote to approve the Tempo Business Combination and (ii) $1.5 million has been loaned. Up to $1.5 million of the loans may be settled in whole warrants to purchase Class A Ordinary Shares of the Company at a conversion price equal to $1.00 per warrant. The loan will not bear any interest, and will be repayable by ACE to the Sponsor upon the earlier of the date by which ACE must complete an initial business combination and the consummation of the Tempo Business Combination. The maturity date of the Sponsor Loan may be accelerated upon the occurrence of an Event of Default (as defined therein). Any outstanding principal under the Sponsor Loan may be prepaid at any time by ACE, at its election and without penalty, provided, however, that the Sponsor shall have a right to first convert such principal balance as described in Section 6 of the Sponsor Loan upon notice of such prepayment. On June 30, 2022, ACE and the Sponsor amended and restated the Sponsor Loan in its entirety to, among other things, increase the aggregate principal amount available thereunder from $1,500,000 to $2,000,000, contingent upon the approval by the Company’s shareholders of the proposal to extend the date by which the Company must complete an initial business combination to October 13, 2022, which proposal was approved by special resolution at an extraordinary general meeting on July 12, 2022. On August 28, 2022, ACE and the Sponsor amended and restated the Sponsor Loan in its entirety to, among other things, increase the aggregate principal amount available thereunder from $2,000,000 to $2,125,000, contingent upon the approval by ACE’s shareholders of the extension of the date by which ACE must consummate an initial business combination to January 30, 2023, which extension was approved in October 2022. For the three and nine months ended September 30, 2022, the Company contributed $221,190 and $1,451,532 to the Trust Account, respectively. Monthly deposits into the Trust Account following the October 2022 redemptions are based on the number of Class A Ordinary Shares still outstanding following such redemptions. As of September 30, 2022, and December 31, 2021, the Company had $1,500,000 and $0 borrowings under the Sponsor Loan, respectively. Management has determined the fair value of the note is more accurately recorded at par since the conversion price is almost 1,250% higher than the value of the warrants. No arm’s-length transaction by a note holder would result in a conversion with this fact pattern, thus it is a more accurate depiction with recording at par. As such, no fair value change was booked to the condensed consolidated statements of operations. As of September 30, 2022, and December 31, 2021, members of the Sponsor, the Company’s management and certain other related parties advanced the Company an aggregate of $427,857 and $0, respectively, for expenses related to operations and completing a Business Combination. The amounts loaned are non-interest bearing and due to be repaid upon the consummation of a Business Combination. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2022 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 — COMMITMENTS AND CONTINGENCIES Risks and Uncertainties Management is continuing to evaluate the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or close of a Business Combination, the specific impact is not readily determinable as of the date of these condensed consolidated financial statements. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. 2020 Registration Rights Agreement Pursuant to a registration rights agreement entered into on July 27, 2020, the holders of the Founder Shares, Private Placement Warrants and any warrants that may be issued on conversion of any working capital loans (and any Class A ordinary shares issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of such working capital loans and upon conversion of the Founder Shares) are entitled to registration rights requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to the Company’s Class A ordinary shares). The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that the Company will not be required to effect or permit any registration or cause any registration statement to become effective until termination of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration statements. In connection with the Tempo Business Combination, the registration rights agreement will be amended and restated. At the closing of the Tempo Business Combination, Domesticated ACE (as defined below), the Sponsor, the other parties to the Sponsor Support Agreement and certain former stockholders of Tempo Automation, Inc. will enter into an Amended and Restated Registration Rights Agreement, pursuant to which Domesticated ACE will agree to register for resale, pursuant to Rule 415 under the Securities Act, certain shares of Domesticated ACE common stock and other equity securities of Domesticated ACE that are held by the parties thereto from time to time. Underwriting Agreement The underwriters were paid a cash underwriting discount of $0.20 per Unit, or $4,600,000 in the aggregate. In addition, 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. On March 16, 2022, Cantor Fitzgerald & Co. agreed that the deferred fee may be paid in shares of common stock of Domesticated ACE, subject to certain terms and conditions. Termination of Proposed Achronix Business Combination On January 7, 2021, the Company entered into an Agreement and Plan of Merger (the “Achronix Merger Agreement”) with Achronix Semiconductor Corp., a Delaware corporation (“Achronix”), and Merger Sub. On May 24, 2021, in the Form 10-Q for the quarter ended March 31, 2021, the Company disclosed that the SEC informed the Company that it was investigating certain disclosures made in the Form S-4 relating to the proposed business combination with Achronix. On July 11, 2021, the Company and Achronix entered into a termination and release agreement, pursuant to which the parties agreed to mutually terminate the Achronix Merger Agreement relating to the proposed business combination with Achronix. On October 27, 2021, the Company received a letter from the SEC in connection with its investigation with the following response: “We have concluded the investigation as to ACE Convergence Acquisition Corp. (“ACE”). Based on the information we have as of this date, we do not intend to recommend an enforcement action by the Commission against ACE.” Business Combination Agreement On October 13, 2021, the Company entered into an Agreement and Plan of Merger (as amended and restated on August 12, 2022, and as amended on September 7, 2022, and September 23, 2022, the “Merger Agreement”) with Tempo Automation, Inc., a Delaware corporation (“Tempo”), and Merger Sub. Pursuant to the transactions contemplated by the Merger Agreement (the “Tempo Business Combination”), and subject to the satisfaction or waiver of certain conditions set forth therein, Merger Sub will merge with and into Tempo, with Tempo surviving the merger as a wholly owned subsidiary of the Company (the “Merger”). Prior to the closing of the Tempo Business Combination (the “Closing”), the Company shall domesticate as a Delaware corporation (the “Domestication” and, ACE, after the Domestication, “Domesticated ACE”) and shall be renamed “Tempo Automation Holdings, Inc.” As a result of and upon the Closing, among other things, all outstanding shares of Tempo common stock (after giving effect to the Company Preferred Conversion (as defined in the Merger Agreement)) as of immediately prior to the Closing, and, together with shares of Tempo common stock reserved in respect of Tempo options outstanding as of immediately prior to the Closing that will be converted into awards based on Domesticated ACE common stock, will be cancelled in exchange for the right to receive, or the reservation of (in the case of any earnout shares, if and to the extent earned, and in the case of the Tempo options, if and to the extent earned and subject to their respective terms), an aggregate of approximately 23,500,000 shares of Domesticated ACE common stock (at a deemed value of $10.00 per share) equal to the quotient obtained by dividing (i) $235,000,000 (the “Base Purchase Price”) by (ii) $10.00. On September 7, 2022, ACE and Tempo entered into the First Amendment to the Amended and Restated Agreement and Plan of Merger, pursuant to which the parties agreed, among other things, to increase the Base Purchase Price from $235,000,000 to $257,927,013. On September 23, 2022, ACE and Tempo entered into the Second Amendment to the Amended and Restated Agreement and Plan of Merger, pursuant to which the parties agreed, among other things, that all awards of Tempo RSUs that are outstanding at the closing of the Tempo Business Combination will, at the effective time of the Tempo Business Combination, be converted into (a) Domesticated ACE RSUs and (b) the right to receive a number of earnout shares. Additionally, Tempo has undertaken to use its commercially reasonable efforts to cause the holder of each outstanding and unexercised Tempo warrant to exercise such Tempo warrant in exchange for shares of Tempo common stock immediately prior to the effective time of the Merger. Holders of Tempo warrants may elect not to exercise such Tempo warrants in exchange for shares of Tempo common stock prior to the effective time of the Merger. Any Tempo warrants that remain issued and outstanding as of immediately prior to the effective time of the Tempo Business Combination will be converted into warrants to purchase shares of Domesticated ACE common stock on substantially similar terms to the Tempo warrants. An additional 550,000 shares of Domesticated ACE common stock will be purchased (at a price of $10.00 per share) at the Closing by certain third-party investors (“Third Party PIPE Investors”) and certain related parties of the Sponsor (collectively with the Third Party PIPE Investors, the “PIPE Investors”), for a total aggregate purchase price of up to $5.5 million (the “PIPE Investment”). In addition, the Company originally agreed to issue additional shares of Domesticated ACE common stock to each PIPE Investor in the event that the volume weighted average price per share of Domesticated ACE common stock during the 30 days commencing on the date on which a registration statement registering the resale of the shares of Domesticated ACE common stock acquired by the PIPE Investors is declared effective is less than $10.00 per share (which registration statement the Company has agreed to file pursuant to the subscription agreements entered into in connection with the PIPE Investment). Certain PIPE Investors originally subscribed for $25.0 million of ACE’s 12.0% convertible senior notes due 2025, but such subscription was terminated in January 2022 in connection with the subscription by certain parties for $200.0 million of 15.5% convertible notes. The latter subscription was terminated in July 2022; as a result of such termination, if ACE consummates an initial business combination with or among Tempo, Compass AC Holdings, Inc. (“Compass”), Whizz Systems, Inc. (“Whizz”) or any of their respective affiliates or subsidiaries, OCM Tempo Holdings, LLC (“OCM”) will be entitled to a termination fee of 3.5% of the aggregate principal amount of the subscribed notes (approximately $7.0 million), to be paid by ACE immediately following and as a condition subsequent to the closing of such initial business combination. On September 4, 2022, Tempo, ACE, OCM and Oaktree Capital Management, L.P. (“Oaktree”) agreed to reduce such termination fee to 0.6% of the aggregate principal amount of the subscribed notes (approximately $1.1 million) if the closing of the Tempo Business Combination occurs on or before October 15, 2022 (the “Specified Fee Date”), to be paid on the earlier of (i) six months after the closing of the Tempo Business Combination and (ii) the date on which either ACE or Tempo commence bankruptcy proceedings. In addition to the reduced termination fee, ACE and Tempo are required to pay approximately $1.2 million in fees and expenses to OCM on the earlier of (x) immediately following the closing of the Tempo Business Combination and (y) the Outside Business Combination Date (as defined below). The reduced termination fee and all other fees and expenses owed to OCM under such agreement will accrue interest at a rate of 20% per year, compounding monthly, starting on October 15, 2022. If the Tempo Business Combination has not been consummated prior to the Specified Fee Date, on the earliest of (I) the date on which the Merger Agreement is terminated, (II) the date on which either ACE or Tempo commence bankruptcy proceedings and (III) June 15, 2023 (the earliest date, the “Outside Business Combination Date”), ACE and Tempo will pay OCM the full 3.5% termination fee and all of its accrued and unpaid fees and expenses. To the extent the termination fee and accrued and unpaid fees and expenses are not paid on or prior to June 15, 2023, the unpaid portion of the termination fee (together with all other unpaid fees and expenses) will accrue interest at a rate of 20% per year, compounding monthly, starting on October 15, 2022. On October 11, 2022, Tempo, ACE, OCM and Oaktree entered into a letter agreement pursuant to which the Specified Fee Date was amended to November 15, 2022. Additionally, in March 2022, ACE SO3 SPV Limited agreed to purchase an unsecured subordinated convertible note in an aggregate principal amount of $20.0 million in connection with the Closing, which agreement was terminated in July 2022. On July 1, 2022, ACE and Tempo entered into that certain First Amendment to Agreement and Plan of Merger (the “Merger Agreement Amendment”), pursuant to which the parties agreed, among other things, to (i) reduce the Base Purchase Price from $658,434,783 to $488,375,000, (ii) increase the number of earnout shares issuable to eligible Tempo equity holders (the “Tempo Earnout Shares”) from 7,500,000 to 10,000,000, which will vest in two equal tranches of 5,000,000 shares based on Domesticated ACE reaching $10.0 million in EBITDA and $50.0 million in revenue in any quarter during the five-year period following the closing date of the Tempo Business Combination, (iii) remove certain covenants and other obligations of the parties relating to the employee stock purchase plan contemplated by the Merger Agreement and (iv) extend the outside date of the Merger Agreement to November 13, 2022. On August 12, 2022, ACE, Merger Sub and Tempo entered into the Merger Agreement, pursuant to which the parties agreed, among other things, to (i) reduce the Base Purchase Price from $488,375,000 to $235,000,000, (ii) reduce the number of Tempo Earnout Shares from 10,000,000 to 7,000,000, which will vest in two equal tranches of 3,500,000 shares based on Domesticated ACE reaching $5.0 million in Adjusted EBITDA (as defined in the Merger Agreement) and $15.0 million in revenue in any quarter during the five-year period following the closing date, (iii) remove terms relating to the proposed acquisitions by Tempo of each of Whizz and Compass, (iv) reduce the minimum cash condition from $320.0 million to $10.0 million and (v) extend the outside date of the Merger Agreement to December 13, 2022. Pursuant to the Merger Agreement, all outstanding shares of Tempo common stock (after giving effect to the Company Preferred Conversion (as defined in the Merger Agreement)) as of immediately prior to the closing, and, together with shares of Tempo common stock reserved in respect of Tempo options as of immediately prior to the closing that will be converted into awards based on Domesticated ACE common stock, will be cancelled in exchange for the right to receive, or the reservation of (in the case of Tempo options, if and to the extent earned and subject to their respective terms), an aggregate of approximately 23,500,000 shares of Domesticated ACE common stock (at a deemed value of $10.00 per share) equal to the quotient obtained by dividing (i) the Base Purchase Price by (ii) $10.00, including, as applicable, a number of Tempo Earnout Shares. On September 7, 2022, ACE and Tempo entered into the First Amendment to the Amended and Restated Agreement and Plan of Merger, pursuant to which the parties agreed, among other things, to increase the Base Purchase Price from $235,000,000 to $257,927,013. On September 23, 2022, ACE and Tempo entered into the Second Amendment to the Amended and Restated Agreement and Plan of Merger, pursuant to which the parties agreed, among other things, that all awards of Tempo RSUs that are outstanding at the closing of the Tempo Business Combination will, at the effective time of the Tempo Business Combination, be converted into (a) Domesticated ACE RSUs and (b) the right to receive a number of Tempo Earnout Shares. On July 6, 2022, the Company entered into Second Amended and Restated Subscription Agreements (the “Second A&R Subscription Agreements”) with each of the PIPE Investors. Pursuant to the Second A&R Subscription Agreements, among other things, the parties agreed to reduce the minimum Adjustment Period VWAP (as defined in the Second A&R Subscription Agreements) from $6.50 to $4.00. Additionally, ACE agreed (1) to issue 2,000,000 additional shares (the “PIPE Incentive Shares”) to the PIPE Investors on a pro rata basis as an incentive to subscribe for and purchase the shares under the Second A&R Subscription Agreements, (2) that if the Adjustment Period VWAP is less than $10.00 per share, the number of additional shares each PIPE Investor will be entitled to receive shall be (i) (A) (x) the number of shares issued to such PIPE Investor at the closing of the subscription and held by such PIPE Investor on the Measurement Date (as defined in the Second A&R Subscription Agreements), times (y) $10.00, minus the Adjustment Period VWAP, minus (B) the number of PIPE Incentive Shares, times the Adjustment Period VWAP, divided by (ii) the Adjustment Period VWAP, and (3) to issue additional shares of Domesticated ACE common stock to each PIPE Investor in the event that the Additional Period VWAP (as defined below) is less than the Adjustment Period VWAP. In such case, each PIPE Investor will be entitled to receive a number of shares of Domesticated ACE common stock (such additional shares, if any, the “Additional Period Shares”) equal to the lesser of (1) such PIPE Investor’s pro rata portion of 2,000,000 shares, and (2) (i) (A) (x) the number of shares issued to such PIPE Investor pursuant to such subscription agreement and held by such PIPE Investor on the last day of the 30 calendar day period ending on the date that is 15 months following the closing of the subscriptions (such 30 calendar day period, the “Additional Period”), times (y) the Adjustment Period VWAP, minus the average of the volume weighted average price of a share of Domesticated ACE common stock determined for each of the trading days during the Additional Period (the “Additional Period VWAP”), minus (B) the number of PIPE Incentive Shares, times the Additional Period VWAP, divided by (ii) the Additional Period VWAP. Notwithstanding the foregoing, in the event that Domesticated ACE consummates a strategic transaction during the 15 On September 7, 2022, ACE entered into Third Amended and Restated Subscription Agreements (the “Third A&R PIPE Subscription Agreements”) with each of the PIPE Investors, which amend and restate the applicable Second A&R Subscription Agreements in their entirety. One of the Third Party PIPE Investors who entered into a Second A&R Subscription Agreement did not enter into a Third A&R PIPE Subscription Agreement and terminated its Second A&R Subscription Agreement on September 7, 2022. Pursuant to the Third A&R PIPE Subscription Agreements, ACE has agreed to issue additional shares of Domesticated ACE common stock to each PIPE Investor in the event that the volume weighted average price per share of Domesticated ACE common stock (the “Measurement Period VWAP”) during the 30 days commencing on the date on which a registration statement registering the resale of the shares of Domesticated ACE common stock acquired by such PIPE Investors (the “PIPE Resale Registration Statement”) is declared effective is less than $10.00 per share. In such case, each PIPE Investor will be entitled to receive a number of shares of Domesticated ACE common stock equal to the product of (x) the number of shares of Domesticated ACE common stock issued to such PIPE Investor at the closing of the subscription and held by such PIPE Investor through the date that is 30 days after the effective date of the PIPE Resale Registration Statement (the “Measurement Date”) multiplied by (y) a fraction, (A) the numerator of which is $10.00 minus the Adjustment Period VWAP (as defined therein) and (B) the denominator of which is the Adjustment Period VWAP. In the event that the Adjustment Period VWAP is less than $4.00 (the “Price Floor Value”), the Adjustment Period VWAP shall be deemed to be the Price Floor Value. ACE has also agreed to issue up to 500,000 additional shares of Domesticated ACE common stock to each such PIPE Investor in the event that the Additional Period VWAP (as defined below) is less than the Adjustment Period VWAP. In such case, each such PIPE Investor will be entitled to receive a number of shares of Domesticated ACE common stock equal to the lesser of (1) such PIPE Investor’s pro rata portion of 500,000 additional shares of Domesticated ACE common stock, and (2) (i) (A) (x) the number of shares issued to such PIPE Investor pursuant to such subscription agreement and held by such PIPE Investor on the last day of the 30 calendar day period ending on the date that is 15 months following the closing of the subscriptions (such 30 calendar day period, the “Additional Period”), times (y) the Adjustment Period VWAP, minus the average of the volume weighted average price of a share of Domesticated ACE common stock determined for each of the trading days during the Additional Period (the “Additional Period VWAP”), minus (B) the number of PIPE Incentive Shares (as defined below), times the Additional Period VWAP, divided by (ii) the Additional Period VWAP. Additionally, ACE has agreed to issue up to 2,000,000 additional shares (the “PIPE Incentive Shares”) to such PIPE Investors on a pro rata basis with respect to each PIPE Investor’s subscription amount as an incentive to subscribe for and purchase the shares under the Third A&R PIPE Subscription Agreements. Notwithstanding the foregoing, in the event that Domesticated ACE consummates a strategic transaction during the 15-month period beginning on the closing date, then the measurement date for the issuance of such additional shares shall be one day prior to the closing date of such strategic transaction, and the Additional Period VWAP will be deemed to equal the price per share paid or payable to the holders of outstanding shares of Domesticated ACE common stock in connection with such strategic transaction. If such price is payable in whole or in part in the form of consideration other than cash, the value of such consideration will be (a) with respect to any securities, (i) the average of the closing prices of the sales of such securities on all securities exchanges on which such securities are then listed, averaged over a period of 30 trading days ending on the day as of which such value is being determined and the 29 consecutive days preceding such day, or if the information contemplated by the preceding clause (i) is not practically available, then the fair value of such securities as of the date of valuation as determined in accordance with the succeeding clause (b), and (b) with respect to any other non-cash assets, the fair value thereof as of the date of valuation, as determined by an independent, nationally recognized valuation firm reasonably selected by Domesticated ACE, on the basis of an orderly sale to a willing, unaffiliated buyer in an arm’s-length transaction, taking into account all factors determinative of value as the investment banking firm determines relevant (and giving effect to any transfer taxes payable in connection with such sale). One of the PIPE Investors’ subscription agreement provides that, if such PIPE Investor is an Eligible Investor (defined as any subscriber in the offering who is not a beneficial or record owner of ACE’s equity or an affiliate of ACE prior to the Initial Closing (as defined therein)), if, after the date of such subscription agreement, such PIPE Investor acquires ownership of Class A Ordinary Shares in the open market or in privately negotiated transactions with third parties (along with any related rights to redeem or convert such shares in connection with the redemption conducted by ACE in connection with the vote to approve the Tempo Business Combination (the “Tempo Redemption”)) at least five business days prior to ACE’s extraordinary general meeting to approve the Tempo Business Combination, and such PIPE Investor does not redeem or convert such shares in connection with the Tempo Redemption (including revoking any prior redemption or conversion elections made with respect to such shares) (such shares, “PIPE Non-Redeemed Shares”), the number of shares such PIPE Investor (only if an Eligible Investor) will be obligated to purchase under its subscription agreement shall be reduced by the number of PIPE Non-Redeemed Shares. The proceeds of the PIPE Investment, together with the amounts remaining in ACE’s trust account as of immediately following the effective time of the Tempo Business Combination, will be retained by Domesticated ACE following the Closing. In connection with the Tempo Business Combination and pursuant to separate agreements, Tempo was to acquire 100% of the issued The Closing is subject to the satisfaction or waiver of certain customary closing conditions, including, among others, (i) approval of the Business Combination and related agreements and transactions by the respective shareholders of ACE and Tempo, (ii) the absence of any legal restraints on the Closing, and (iii) receipt of approval for listing on The Nasdaq Stock Market LLC (“Nasdaq”) the shares of Domesticated ACE common stock to be issued in connection with the Merger. ACE’s obligation to consummate the Business Combination is also subject to, among other things, the accuracy of the representations and warranties of Tempo as of the date of the Original Merger Agreement (as defined below) and as of the Closing and each of the covenants of Tempo having been performed in all material respects. Tempo’s obligation to consummate the Merger is also subject to, among other things, (i) the accuracy of the representations and warranties of ACE as of the date of the Original Merger Agreement and as of the Closing, (ii) ACE having performed each of the covenants in all material respects, (iii) the Domestication having been completed and (iv) the sum of (w) the amount of cash available in the Trust Account into which substantially all of the proceeds of ACE’s initial public offering and private placements of its warrants have been deposited for the benefit of ACE, certain of its public shareholders and the underwriters of ACE’s initial public offering, after deducting the amount required to satisfy ACE’s obligations to its shareholders (if any) that exercise their rights to redeem their Class A ordinary shares pursuant to ACE’s amended and restated memorandum and articles of association (but prior to payment of (a) any deferred underwriting commissions being held in the Trust Account and (b) any transaction expenses of ACE or its affiliates), plus (x) the PIPE Investment Amount (as defined in the Merger Agreement) actually received by ACE prior to or substantially concurrently with the closing, plus (y) the Available Credit Amount (as defined in the Merger Agreement), plus (z) the Available Cash Amount (as defined in the Merger Agreement), being at least equal to $10,000,000. The Merger Agreement may be terminated at any time prior to the Closing (i) by mutual written consent of ACE and Tempo, (ii) by Tempo, if certain approvals of the shareholders of ACE, to the extent required under the Merger Agreement, are not obtained as set forth therein or if there is a Modification in Recommendation (as defined in the Merger Agreement), (iii) by ACE, if certain approvals of the stockholders of Tempo, to the extent required under the Merger Agreement, are not obtained within five business days of the effective date of the Proxy Statement/Registration Statement (as defined in the Merger Agreement), (iv) by either ACE or Tempo in certain other circumstances set forth in the Merger Agreement, including (a) if any Governmental Authority (as defined in the Merger Agreement) shall have issued or otherwise entered a final, non-appealable order making consummation of the Merger illegal or otherwise preventing or prohibiting consummation of the Merger and (b) in the event of certain uncured breaches by the other party or if the Closing has not occurred on or before December 13, 2022 (the “Agreement End Date”), unless ACE is in material breach of the Merger Agreement. The Merger Agreement also provides that, if the proxy statement for ACE’s shareholder meeting to approve the Tempo Business Combination has not been mailed by August 30, 2022, then ACE will file a proxy statement to extend the date by which it must complete an initial business combination by at least three months, to such date as may be agreed in writing between ACE and Tempo. Concurrently with the execution of the original Agreement and Plan of Merger in October 2021 (the “Original Merger Agreement”), an affiliate of the Sponsor (such affiliate, the “Backstop Investor”) entered into a backstop subscription agreement (the “Backstop Subscription Agreement”) with ACE, pursuant to, and on the terms and subject to the conditions on which, the Backstop Investor committed to purchase, following the Domestication and prior to or substantially concurrently with the Closing, up to 2,500,000 shares of Domesticated ACE common stock, in a private placement for a purchase price of $10.00 per share and an aggregate purchase price of up to $25,000,000, to backstop certain redemptions by ACE shareholders. On March 16, 2022, ACE and the Backstop Investor terminated the Backstop Subscription Agreement in connection with the execution of the Cantor Purchase Agreement (as defined below). On October 13, 2021, ACE entered into a Support Agreement (the “Original Sponsor Support Agreement,” and, as amended, the “Sponsor Support Agreement”), by and among ACE, the Sponsor, certain of ACE’s directors and officers and Tempo, pursuant to which the Sponsor and each director and officer of ACE agreed to, among other things, vote in favor of the Merger Agreement and the transactions contemplated thereby, in each case, subject to the terms and conditions contemplated by the Original Sponsor Support Agreement. On July 6, 2022, the parties to the Original Sponsor Support Agreement entered into an Amendment to Sponsor Support Agreement (the “SSA Amendment”), pursuant to which, among other things, certain Sponsors (as defined in the Sponsor Support Agreement, and, each, an “Earnout Sponsor”) agreed, immediately prior to the Domestication, to contribute, transfer, assign, convey and deliver to ACE an aggregate of 5,595,000 founder shares in exchange for an aggregate of 3,595,000 Class A Ordinary Shares of ACE (the “SSA Exchange”). Pursuant to the SSA Amendment, the Earnout Sponsors also agreed to subject an aggregate of 2,000,000 shares of Domesticated ACE common stock (the “Sponsor Earnout Shares”) received in the SSA Exchange to certain earnout vesting conditions or, should such shares fail to vest, forfeiture to ACE for no consideration. On the earlier of (i) the date which is 15 months following the closing of the Tempo Business Combination and (ii) immediately prior to the closing of a strategic transaction, the Sponsor Earnout Shares will vest in an amount equal to (A) the number of Sponsor Earnout Shares, less (B) the number of Additional Period Shares, if any, issuable in the aggregate under the Second A&R Subscription Agreements. In the event of a strategic transaction, the holders of any vested Sponsor Earnout Shares will be eligible to participate in such strategic transaction with respect to such Sponsor Earnout Shares on the same terms, and subject to the same conditions, as the other holders of shares of Domesticated ACE common stock generally. On August 12, 2022, the parties to the SSA Amendment entered into a Second Amendment to Sponsor Support Agreement (the “Second SSA Amendment”), pursuant to which the SSA Exchange was amended such that the Earnout Sponsors agreed, immediately prior to the Domestication, to contribute, transfer, assign, convey and deliver to ACE an aggregate of 5,595,000 founder shares in exchange for an aggregate of 3,095,000 Class A Ordinary Shares. Pursuant to the Second SSA Amendment, the Earnout Sponsors also agreed to reduce the number of Sponsor Earnout Shares to 500,000. On the earlier of (i) the date which is fifteen (15) months following the closing of the Tempo Business Combination and (ii) immediately prior to the closing of a strategic transaction, the Sponsor Earnout Shares will vest in an amount equal to (A) the number of Sponsor Earnout Shares, less (B) the number of Additional Period Shares (as defined therein), if any, issuable in the aggregate under the Third A&R PIPE Subscription Agreements. In the event of a strategic transaction, the holders of any vested Sponsor Earnout Shares will be eligible to participate in such strategic transaction with respect to such Sponsor Earnout Shares on the same terms, and subject to the same conditions, as the other holders of shares of Domesticated ACE common stock generally. On September 7, 2022, the parties to the Sponsor Support Agreement entered into a Third Amendment to Sponsor Support Agreement, pursuant to which the parties agreed to increase the number of shares issued in the aggregate in the SSA Exchange from 3,095,000 to 3,595,000, and to increase the number of Sponsor Earnout Shares from 500,000 to 1,000,000. On October 13, 2021, ACE entered into a Support Agreement (the “Tempo Holders Support Agreement”), by and among ACE, Tempo and certain stockholders of Tempo (the “Tempo Stockholders”). Pursuant to the Tempo Holders Support Agreement, the Tempo Stockholders agreed to, among other things, vote to adopt and approve, upon the effectiveness of the R |
SHAREHOLDERS' DEFICIT
SHAREHOLDERS' DEFICIT | 9 Months Ended |
Sep. 30, 2022 | |
SHAREHOLDERS' DEFICIT | |
SHAREHOLDERS' DEFICIT | NOTE 7 — SHAREHOLDERS’ DEFICIT Preference Shares Class A Ordinary Shares outstanding outstanding In connection with the extension of the date by which the Company must complete an initial business combination in January 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 14,797,723 Class A Ordinary Shares. As a result, $148,079,821 was paid out of the Trust Account in connection with the redemptions. In connection with the extension of the date by which the Company must complete an initial business combination in July 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 4,256,979 Class A Ordinary Shares. As a result, $43,349,494 was paid out of the Trust Account in connection with the redemptions. In connection with the extension of the date by which the Company must complete an initial business combination in October 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 1,202,070 Class A Ordinary Shares. As a result, $12,349,642 was paid out of the Trust Account in connection with the redemptions. Class B Ordinary Shares Holders of Class A ordinary shares and Class B ordinary shares will vote together as a single class on all matters submitted to a vote of shareholders, except as required by law. The Class B ordinary shares will automatically convert into Class A ordinary shares at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts sold in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which Class B ordinary shares shall convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the issued and outstanding Class B ordinary shares agree to waive such anti-dilution adjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares issuable upon conversion of all Class B ordinary shares will equal, in the aggregate, 20% of the sum of all ordinary shares issued and outstanding upon completion of the Initial Public Offering plus all Class A ordinary shares and equity-linked securities issued or deemed issued in connection with the Business Combination, excluding any shares or equity-linked securities issued, or to be issued, to any seller in the Business Combination. |
WARRANTS
WARRANTS | 9 Months Ended |
Sep. 30, 2022 | |
WARRANTS | |
WARRANTS | NOTE 8 — WARRANTS As of September 30, 2022, the Company had 11,500,000 Public Warrants outstanding. Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination and (b) 12 months from the closing of the Initial Public Offering. The Public Warrants will expire five years from the completion of a Business Combination or earlier upon redemption or liquidation. The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act covering the issuance of the Class A ordinary shares issuable upon exercise of the Public Warrants is then effective and a current prospectus relating thereto is available, subject to the Company satisfying its obligations with respect to registration, or a valid exemption from registration is available, including in connection with a cashless exercise. No Public Warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their Public Warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. The Company has agreed that as soon as practicable, but in no event later than 15 Once the Public Warrants become exercisable, the Company may redeem the Public Warrants: ● in whole and not in part; ● at a price of $0.01 per Public Warrant; ● upon not less than 30 days ’ prior written notice of redemption to each warrant holder; and ● if, and only if, the reported last sale price of the Class A ordinary shares for any 20 trading days within a 30 - trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share dividends, rights issuances, consolidations, reorganizations, recapitalizations and the like). If and when the warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company calls the Public Warrants for redemption, as described above, its management will have the option to require any holder that wishes to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of ordinary shares issuable upon exercise of the Public Warrants may be adjusted in certain circumstances including in the event of a share dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described below, the Public Warrants will not be adjusted for issuances of ordinary shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Public Warrants. If the Company is unable to complete a Business Combination within the Combination Period (as it may be extended) and the Company liquidates the funds held in the Trust Account, holders of Public Warrants will not receive any of such funds with respect to their Public Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such Public Warrants. Accordingly, the Public Warrants may expire worthless. In addition, if (x) the Company issues additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per Class A ordinary share (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of its Class A ordinary shares during the 20 As of September 30, 2022, the Company had 6,600,000 Private Placement Warrants outstanding. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A ordinary shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable on a cashless basis and be non-redeemable, except as described above, so long as they are held by the initial purchasers or their permitted transferees. If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2022 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 9 — FAIR VALUE MEASUREMENTS The Company classifies its U.S. Treasury and equivalent securities as held-to-maturity in accordance with ASC Topic 320, “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying balance sheets and adjusted for the amortization or accretion of premiums or discounts. At September 30, 2022, assets held in the Trust Account were comprised of $40,293,597 in cash. During the three and nine months ended September 30, 2022, the Company did not withdraw any interest income from the Trust Account. At December 31, 2021, assets held in the Trust Account were comprised of $598 in cash and $230,157,661 in money market funds. In October 2022, public shareholders redeemed 1,202,070 public shares in connection with the shareholder vote to approve the extension of the date by which ACE must complete an initial business combination to January 30, 2023. As a result, approximately $12,349,642 was paid out of the trust account in connection with such redemptions. 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 assessment of the assumptions that market participants would use in pricing the asset or liability. The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at September 30, 2022, and December 31, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Markets September 30, Markets December 31, Description (level) 2022 (level) 2021 Assets: Cash and Marketable Securities held in Trust Account 1 $ 40,293,597 1 $ 230,158,259 Liabilities: PIPE derivative liability- PIPE Incentive Shares 3 $ 19,905,700 — $ — Warrant Liability – Public Warrants 1 $ 1,150,000 1 $ 7,820,000 Warrant Liability – Private Placement 2 $ 660,000 3 $ 4,946,082 The Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the Company’s condensed consolidated 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 condensed consolidated statements of operations. At September 30, 2022, the Company valued the Private Placement Warrants using the value of the Public Warrants. The Public Warrants are priced using the active observable market quote. At September 30, 2022, the primary difference between the Private Placement Warrants and the Public Warrants of ACE is a redemption feature that caps the upside of the Public Warrants at $18.00 per share. As it is unlikely the value of the underlying security will exceed this threshold, it was determined that it would be reasonable to use the closing price of the Public Warrants as the value of the Private Placement Warrants as of the measurement date of September 30, 2022. At December 31, 2021, and previous reporting periods, the Private Placement Warrants were valued using a Modified Black Scholes Option Pricing Model, which is considered to be a Level 3 fair value measurement. The Public Warrants were initially classified as Level 3 due to the use of unobservable inputs. For periods subsequent to the detachment of the warrants from the Units, the close price of the Public Warrant price was used as the fair value as of each relevant date. The measurement of the Public Warrants is classified as Level 1 due to the use of an observable market quote in an active market. The key inputs in the modified Black Scholes model for the Private Placement Warrants were as follows at December 31, 2021: December 31, Input: 2021 Risk-free interest rate 1.26 % Expected term (years) 5.28 Expected volatility 18.8 % Exercise price $ 11.50 Stock Price $ 9.96 The following tables present the changes in the fair value of Level 3 warrant liabilities for the three and nine months ended September 30, 2022 and 2021: Private Placement Fair value as of January 1, 2022 $ 4,946,082 Change in fair value (295,793) Fair value as of March 31, 2022 4,650,289 Change in fair value (4,122,289) Fair value as of June 30, 2022 528,000 Change in fair value 132,000 Transfer to Level 2 (660,000) Fair value as of September 30, 2022 $ — Private Placement Fair value as of January 1, 2021 $ 9,504,000 Change in fair value 3,871,560 Fair value as of March 31, 2021 13,375,560 Change in fair value (115,675) Fair value as of June 30, 2021 13,259,885 Change in fair value (9,104,121) Fair value as of September 30, 2021 $ 4,155,764 During the three and nine months ended September 30, 2022 and 2021 $660,000 was transferred from Level 3 to Level 2. The PIPE Derivative was accounted for as a liability in accordance with ASC 815-40 and presented within current liabilities on the condensed consolidated balance sheet as of September 30, 2022. The PIPE derivative liability is measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of PIPE derivative liability in the condensed statements of operations. The Additional PIPE Incentive Shares were initially and as of September 30, 2022 and September 7, 2022 (initial measurement), valued using a discounted cash flows model which is considered to be a Level 3 fair value measurement. A key assumption in this model and valuation is the certainty of the closing of the Business Combination. Present value factors were determined using November 22, 2022 as the estimated date of closing of the Business Combination. The key inputs into the Discounted Cash Flows Model for the PIPE Derivative Liability were as follows: As of As of September 30, September 7, 2022 2022 Incentive shares 2,000,000 2,000,000 Per share subscription price $ 10.00 $ 10.00 Discount period 0.210 0.150 Present value factor 0.994 0.995 The following table presents the changes in the fair value of the PIPE Derivative Liability: PIPE Derivative Liability Fair value as of September 7, 2022 $ 19,878,900 Change in fair value 26,800 Fair value as of September 30, 2022 $ 19,905,700 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 10 — SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the condensed consolidated balance sheet date up to the date that the condensed consolidated financial statements were issued. Based upon this review, other than the below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements other than as described below. On November 1, 2022, the proxy statement/prospectus was declared effective and on November 2, 2022, the Company commenced with mailing the proxy materials to the Company’s shareholders ahead of the extraordinary general meeting of the Company’s shareholders expected to be held on November 17, 2022. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated interim financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as filed with the SEC on March 10, 2022. The interim results for the three and nine months ended September 30, 2022, are not necessarily indicative of the results to be expected for the year ending December 31, 2022, or for any future periods. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed 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 of 2002, 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 shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies, but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with those of another public company which is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Use of Estimates | Use of Estimates The preparation of the unaudited condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. One of the more significant accounting estimates included in these financial statements is the determination of fair value of the warrant liability. 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 Marketable Securities Held in Trust Account | Cash and Marketable Securities Held in Trust Account At September 30, 2022, all of the assets held in the Trust Account were held in cash. At December 31, 2021, substantially all of the assets held in the Trust Account were held in cash and money market funds which were invested primarily in U.S. Treasury securities. All of the Company’s investments that were 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. With respect to the regulation of special purpose acquisition companies like the Company (“SPACs”), on March 30, 2022, the SEC issued proposed rules (the “SPAC Rule Proposals”) relating to, among other items, disclosures in business combination transactions involving SPACs and private operating companies; the condensed financial statement requirements applicable to transactions involving shell companies; the use of projections by SPACs in SEC filings in connection with proposed business combination transactions; the potential liability of certain participants in proposed business combination transactions; and the extent to which SPACs could become subject to regulation under the Investment Company Act of 1940, as amended, including a proposed rule that would provide SPACs a safe harbor from treatment as an investment company if they satisfy certain conditions that limit a SPAC’s duration, asset composition, business purpose and activities. With regard to the SEC’s investment company proposals included in the SPAC Rule Proposals, while the funds in the Trust Account have, since the Company’s initial public offering, been held only in U.S. government treasury bills with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries, to mitigate the risk of being viewed as operating an unregistered investment company (including pursuant to the subjective test of Section 3(a)(1)(A) of the Investment Company Act of 1940), on June 22, 2022, the Company instructed Continental Stock Transfer & Trust Company, the trustee managing the Trust Account, to hold all funds in the Trust Account in cash until the earlier of consummation of the Tempo Business Combination or the liquidation of the Company. |
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, 2022, and December 31, 2021. |
Warrant Liability | Warrant Liability The Company accounts for the public warrants and the private placement warrants (collectively, the “Warrants”) in accordance with the guidance contained in Accounting Standards Codification (“ASC”) 815-40 under which the Warrants do not meet the criteria for equity treatment and must be recorded as derivative liabilities. Accordingly, the Company classifies the Warrants as liabilities at their fair value and adjust the Warrants to fair value at each reporting period. This liability is subject to re-measurement at each balance sheet date until exercised, and any change in fair value is recognized in the Company’s condensed consolidated statements of operations. The Private Placement Warrants (and the Public Warrants for periods where no observable traded price was available) are valued using a Modified Black Scholes Model. For periods subsequent to the detachment of the Public Warrants from the Units, the Public Warrant quoted market price was used as the fair value as of each relevant date. As of September 30, 2022 due to market conditions the Company is using the price of the Public Warrants to value the Private Warrants. |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC 815. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the issuance date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The PIPE Derivative is comprised of the Additional PIPE Incentive Shares (as defined in Note 6). The PIPE Derivative meets the criteria for derivative liability classification. As such, the PIPE derivative liability is recorded at its initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the derivative liability is recognized as a non-cash gain or loss on the condensed statements of operations. The fair value of the derivative liability is discussed in Note 9. |
Class A Ordinary Shares Subject to Possible Redemption | Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its Class A ordinary shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption are classified as a liability instrument and are measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s Class A ordinary shares 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, 2022, and December 31, 2021, Class A ordinary shares subject to possible redemption are presented as temporary equity, outside of the shareholders’ deficit section of the Company’s condensed consolidated balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. 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 ordinary shares resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit. On January 13, 2022, contingent upon the Company’s shareholders’ approval of the extension of the business combination period, the Sponsor agreed to contribute to the Company as a loan $0.03 for each Class A Ordinary Share of the Company that was not redeemed in connection with the shareholder vote to approve such extension, for each month (or a pro rata portion thereof if less than a month) until the earlier of (i) the date of the extraordinary general meeting held in connection with the shareholder vote to approve the Tempo Business Combination and (ii) $1.5 million has been loaned, which amounts were to be deposited into the Trust Account. For the three and nine months ended September 30, 2022, the Company contributed an aggregate of $221,190 and $1,451,532 to the Trust Account, respectively. On June 30, 2022, the Sponsor and the Company agreed to, among other things, increase the aggregate principal amount available under such loan from $1,500,000 to $2,000,000, contingent upon the approval by the Company’s shareholders of the proposal to extend the date by which the Company must complete an initial business combination to October 13, 2022, which proposal was approved at an extraordinary general meeting on July 12, 2022. On August 28, 2022, the Company and the Sponsor agreed to, among other things, increase the aggregate principal amount available under such loan from $2,000,000 to $2,125,000, contingent upon the approval by the Company’s shareholders of the extension of the date by which the Company must consummate an initial business combination to January 30, 2023, which proposal was approved in October 2022. Monthly deposits into the Trust Account following the October 2022 redemptions are based on the number of Class A Ordinary Shares still outstanding following such redemptions. In connection with the extension of the business combination period in January 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 14,797,723 Class A Ordinary Shares. As a result, $148,079,821 was paid out of the Trust Account in connection with such redemptions. In connection with the extension of the business combination period in July 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 4,256,979 Class A Ordinary Shares. As a result, $43,349,494 was paid out of the Trust Account in connection with such redemptions. In connection with the extension of the business combination period in October 2022, shareholders of Class A Ordinary Shares elected to redeem an aggregate of 1,202,070 Class A Ordinary Shares. As a result, $12,349,642 was paid out of the Trust Account in connection with such redemptions. At September 30, 2022, and December 31, 2021, the Class A Ordinary Shares reflected in the condensed consolidated balance sheets are reconciled in the following table: Gross proceeds $ 230,000,000 Less: Proceeds allocated to Public Warrants (11,270,000) Class A ordinary shares issuance costs (12,737,837) Plus: Accretion of carrying value to redemption value 24,007,837 Class A ordinary shares subject to possible redemption, December 31, 2021 $ 230,000,000 Less: Redemption of Class A Ordinary Shares (191,429,316) Add: Accretion of carrying value to redemption value 1,722,913 Class A ordinary shares subject to possible redemption, September 30, 2022 $ 40,293,597 |
Offering Costs | Offering Costs Offering costs consisted of underwriting, legal, accounting and other expenses incurred through the Initial Public Offering that are directly related to the Initial Public Offering. Offering costs amounted to $13,273,096, of which $12,605,837 were charged to temporary equity and accreted to redemption value upon the completion of the Initial Public Offering, and the remaining $667,259 of offering costs allocated to the warrant liability was charged to operations. |
Income Taxes | Income Taxes ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30, 2022, and December 31, 2021, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. 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 considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the periods presented. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. |
Net Income (Loss) Per Ordinary Share | Net Income (Loss) Per Ordinary Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income (loss) per ordinary share is computed by dividing net income (loss) by the weighted average number of ordinary shares outstanding for the period. Accretion associated with the redeemable shares of Class A ordinary shares 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 18,100,000 Class A ordinary shares in the aggregate. For the three and nine months ended September 30, 2022 and 2021, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted net loss per ordinary share is the same as basic net loss per ordinary share for the periods presented. The following table reflects the calculation of basic and diluted net income (loss) per ordinary share (in dollars, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per ordinary share Numerator: Allocation of net income (loss) $ (3,772,620) $ (4,863,938) $ 17,830,609 4,457,652 $ 257,377 $ 182,870 $ 7,776,990 1,944,248 Denominator: Basic and diluted weighted average shares outstanding 4,459,878 5,750,000 23,000,000 5,750,000 8,092,696 5,750,000 23,000,000 5,750,000 Basic and diluted net income (loss) per ordinary share $ (0.85) $ (0.85) $ 0.78 0.78 $ 0.03 $ 0.03 $ 0.34 0.34 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limits of $250,000. The Company has not experienced losses on this account, and management believes the Company is not exposed to significant risks on such account. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying condensed consolidated balance sheets, primarily due to their short-term nature except derivative liabilities (see Note 9). |
Recent Accounting Standards | Recent Accounting Standards Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Summary of reconciliation of Class A common stock reflected on the balance sheet | Gross proceeds $ 230,000,000 Less: Proceeds allocated to Public Warrants (11,270,000) Class A ordinary shares issuance costs (12,737,837) Plus: Accretion of carrying value to redemption value 24,007,837 Class A ordinary shares subject to possible redemption, December 31, 2021 $ 230,000,000 Less: Redemption of Class A Ordinary Shares (191,429,316) Add: Accretion of carrying value to redemption value 1,722,913 Class A ordinary shares subject to possible redemption, September 30, 2022 $ 40,293,597 |
Schedule of calculation of basic and diluted net loss per ordinary share | Three Months Ended Nine Months Ended September 30, September 30, 2022 2021 2022 2021 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income (loss) per ordinary share Numerator: Allocation of net income (loss) $ (3,772,620) $ (4,863,938) $ 17,830,609 4,457,652 $ 257,377 $ 182,870 $ 7,776,990 1,944,248 Denominator: Basic and diluted weighted average shares outstanding 4,459,878 5,750,000 23,000,000 5,750,000 8,092,696 5,750,000 23,000,000 5,750,000 Basic and diluted net income (loss) per ordinary share $ (0.85) $ (0.85) $ 0.78 0.78 $ 0.03 $ 0.03 $ 0.34 0.34 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Schedule of Company's assets and liabilities that are measured at fair value on a recurring basis | Markets September 30, Markets December 31, Description (level) 2022 (level) 2021 Assets: Cash and Marketable Securities held in Trust Account 1 $ 40,293,597 1 $ 230,158,259 Liabilities: PIPE derivative liability- PIPE Incentive Shares 3 $ 19,905,700 — $ — Warrant Liability – Public Warrants 1 $ 1,150,000 1 $ 7,820,000 Warrant Liability – Private Placement 2 $ 660,000 3 $ 4,946,082 |
Private Placement Warrants [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Schedule of initial measurement of key inputs for Private Placement Warrants and Public Warrants | December 31, Input: 2021 Risk-free interest rate 1.26 % Expected term (years) 5.28 Expected volatility 18.8 % Exercise price $ 11.50 Stock Price $ 9.96 |
Level 3 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Schedule of changes in fair value of warrant liabilities | Private Placement Fair value as of January 1, 2022 $ 4,946,082 Change in fair value (295,793) Fair value as of March 31, 2022 4,650,289 Change in fair value (4,122,289) Fair value as of June 30, 2022 528,000 Change in fair value 132,000 Transfer to Level 2 (660,000) Fair value as of September 30, 2022 $ — Private Placement Fair value as of January 1, 2021 $ 9,504,000 Change in fair value 3,871,560 Fair value as of March 31, 2021 13,375,560 Change in fair value (115,675) Fair value as of June 30, 2021 13,259,885 Change in fair value (9,104,121) Fair value as of September 30, 2021 $ 4,155,764 |
Derivative [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Schedule of initial measurement of key inputs for Private Placement Warrants and Public Warrants | As of As of September 30, September 7, 2022 2022 Incentive shares 2,000,000 2,000,000 Per share subscription price $ 10.00 $ 10.00 Discount period 0.210 0.150 Present value factor 0.994 0.995 |
Schedule of changes in fair value of warrant liabilities | PIPE Derivative Liability Fair value as of September 7, 2022 $ 19,878,900 Change in fair value 26,800 Fair value as of September 30, 2022 $ 19,905,700 |
ORGANIZATION AND PLAN OF BUSI_2
ORGANIZATION AND PLAN OF BUSINESS OPERATIONS (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
Oct. 11, 2022 | Jul. 12, 2022 | Jan. 21, 2022 | Jul. 30, 2020 | Oct. 31, 2022 | Jul. 31, 2022 | Jan. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Transaction costs | $ 13,273,096 | |||||||||
Underwriting fees | 4,600,000 | |||||||||
Deferred underwriting fees | $ 8,050,000 | 8,050,000 | ||||||||
Other offering costs | 623,096 | |||||||||
Investment of Cash into Trust Account | 221,190 | $ 1,451,532 | ||||||||
Threshold minimum aggregate fair market value as a percentage of the assets held in the Trust Account | 80% | |||||||||
Threshold percentage of outstanding voting securities of the target to be acquired by post-transaction company to complete business combination | 50% | |||||||||
Redemption of shares calculated based on business days prior to consummation of business combination (in days) | 2 days | |||||||||
Minimum net tangible assets upon consummation of the business combination | 5,000,001 | $ 5,000,001 | ||||||||
Threshold percentage of public shares subject to redemption without the company's prior written consent | 15% | |||||||||
Obligation to redeem public shares if entity does not complete a business combination (as a percent) | 100% | |||||||||
Threshold business days for redemption of public shares | 10 days | |||||||||
Maximum net interest to pay dissolution expenses | $ 100,000 | |||||||||
Amount of cash paid out of Trust Account for redemptions | $ 148,079,821 | $ 12,349,642 | $ 148,079,821 | |||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 1,202,070 | |||||||||
Payments for redemptions out of Trust Account per share | $ 10.21 | |||||||||
Percentage of security holders | 5% | |||||||||
Cash | 0 | $ 0 | $ 8,390 | |||||||
Cash and marketable securities held in Trust Account | 40,293,597 | 40,293,597 | $ 230,158,259 | |||||||
Working capital | $ 18,720,557 | $ 18,720,557 | ||||||||
Class A common stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Amount of cash paid out of Trust Account for redemptions | $ 43,349,494 | $ 12,349,642 | $ 43,349,494 | $ 148,079,821 | ||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 4,256,979 | 14,797,723 | 1,202,070 | 4,256,979 | 14,797,723 | |||||
Ordinary shares, par value (per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Subsequent event [Member] | Class A common stock [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Amount of cash paid out of Trust Account for redemptions | $ 12,324,919 | |||||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 1,202,070 | |||||||||
Initial Public Offering | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of units issued | 23,000,000 | |||||||||
Unit price | $ 10 | $ 10 | $ 10 | |||||||
Proceeds from issuance of units | $ 230,000,000 | |||||||||
Investment of Cash into Trust Account | $ 230,000,000 | |||||||||
Over-allotment option | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Number of units issued | 3,000,000 | |||||||||
Private Placement | Private Placement Warrants [Member] | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Private placement warrants issued | 6,600,000 | 6,600,000 | 6,600,000 | |||||||
Price of warrant | $ 1 | $ 1 | $ 1 | |||||||
Proceeds from sale of Private Placement Warrants | $ 6,600,000 | $ 6,600,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Oct. 11, 2022 | Jul. 12, 2022 | Jan. 21, 2022 | Jan. 13, 2022 | Oct. 31, 2022 | Jul. 31, 2022 | Jan. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Aug. 28, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies | ||||||||||||
Offering costs charged to temporary equity and accreted to redemption value | $ 12,605,837 | |||||||||||
Amount of loan contributed | 523,743 | $ 309,210 | ||||||||||
Amount contributed to Trust Account | $ 221,190 | 1,451,532 | ||||||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 1,202,070 | |||||||||||
Cash withdrawn from Trust Account in connection with redemption | $ 148,079,821 | $ 12,349,642 | $ 148,079,821 | |||||||||
Unrecognized tax benefits | 0 | 0 | $ 0 | |||||||||
Amount accrued for interest and penalties | 0 | 0 | $ 0 | |||||||||
Offering costs | 13,273,096 | |||||||||||
Offering costs allocated to warrant liability | 667,259 | |||||||||||
Sponsor [Member] | ||||||||||||
Significant Accounting Policies | ||||||||||||
Maximum borrowing capacity | 2,000,000 | 2,000,000 | $ 2,125,000 | |||||||||
Minimum borrowing capacity | $ 1,500,000 | $ 1,500,000 | $ 2,000,000 | |||||||||
Related Party Loans | ||||||||||||
Significant Accounting Policies | ||||||||||||
Amount of loan contributed | $ 1,500,000 | |||||||||||
Class A common stock [Member] | ||||||||||||
Significant Accounting Policies | ||||||||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 1,202,070 | |||||||||||
Cash withdrawn from Trust Account in connection with redemption | $ 12,349,642 | |||||||||||
Class A common stock [Member] | ||||||||||||
Significant Accounting Policies | ||||||||||||
Sponsor loan amount per share of ordinary share upon extension of business combination period | $ 0.03 | |||||||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 4,256,979 | 14,797,723 | 1,202,070 | 4,256,979 | 14,797,723 | |||||||
Cash withdrawn from Trust Account in connection with redemption | $ 43,349,494 | $ 12,349,642 | $ 43,349,494 | $ 148,079,821 | ||||||||
Class A common stock [Member] | Subsequent event [Member] | ||||||||||||
Significant Accounting Policies | ||||||||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 1,202,070 | |||||||||||
Cash withdrawn from Trust Account in connection with redemption | $ 12,324,919 | |||||||||||
Class A common stock [Member] | Warrants [Member] | ||||||||||||
Significant Accounting Policies | ||||||||||||
Exclusion of shares in the calculation of diluted income (loss) per share | 18,100,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Calculation of basic and diluted net loss per ordinary share (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Class A common stock [Member] | ||||
Numerator: | ||||
Allocation of net income (loss) | $ (3,772,620) | $ 17,830,609 | $ 257,377 | $ 7,776,990 |
Denominator: | ||||
Weighted average shares outstanding, basic | 4,459,878 | 23,000,000 | 8,092,696 | 23,000,000 |
Weighted average shares outstanding, diluted | 4,459,878 | 23,000,000 | 8,092,696 | 23,000,000 |
Basic net income (loss) ordinary per share | $ (0.85) | $ 0.78 | $ 0.03 | $ 0.34 |
Diluted net income (loss) per ordinary share | $ (0.85) | $ 0.78 | $ 0.03 | $ 0.34 |
Class B common stock | ||||
Numerator: | ||||
Allocation of net income (loss) | $ (4,863,938) | $ 4,457,652 | $ 182,870 | $ 1,944,248 |
Denominator: | ||||
Weighted average shares outstanding, basic | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 |
Weighted average shares outstanding, diluted | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 |
Basic net income (loss) ordinary per share | $ (0.85) | $ 0.78 | $ 0.03 | $ 0.34 |
Diluted net income (loss) per ordinary share | $ (0.85) | $ 0.78 | $ 0.03 | $ 0.34 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Consolidated balance sheets (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Significant Accounting Policies | ||
Gross proceeds | $ 230,000,000 | |
Proceeds allocated to Public Warrants | (11,270,000) | |
Class A ordinary shares issuance costs | (12,737,837) | |
Accretion of carrying value to redemption value | $ 1,722,913 | 24,007,837 |
Redemption of Class A Ordinary Shares | (191,429,316) | |
Class A ordinary shares subject to possible redemption | ||
Significant Accounting Policies | ||
Class A ordinary shares subject to possible redemption | $ 40,293,597 | $ 230,000,000 |
INITIAL PUBLIC OFFERING (Detail
INITIAL PUBLIC OFFERING (Details) - $ / shares | Jul. 30, 2020 | Sep. 30, 2022 |
Initial Public Offering | ||
Subsidiary, Sale of Stock | ||
Number of units issued | 23,000,000 | |
Unit price | $ 10 | $ 10 |
Number of shares in a unit | 1 | |
Number of warrants in a unit | 0.5 | |
Number of shares issuable per warrant | 1 | |
Exercise price of warrants | $ 11.50 | |
Over-allotment option | ||
Subsidiary, Sale of Stock | ||
Number of units issued | 3,000,000 |
PRIVATE PLACEMENT (Details)
PRIVATE PLACEMENT (Details) - Private Placement - Private Placement Warrants - USD ($) | 9 Months Ended | |
Jul. 30, 2020 | Sep. 30, 2022 | |
Subsidiary, Sale of Stock | ||
Number of warrants to purchase shares issued | 6,600,000 | 6,600,000 |
Price of warrants | $ 1 | $ 1 |
Aggregate purchase price | $ 6,600,000 | $ 6,600,000 |
Number of shares per warrant | 1 | |
Exercise price of warrant | $ 11.50 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - Founder Shares - Sponsor - USD ($) | 1 Months Ended | 9 Months Ended | |||
Oct. 13, 2021 | May 29, 2020 | Jan. 31, 2022 | May 31, 2020 | Sep. 30, 2022 | |
ACE SO5 | |||||
Related Party Transaction | |||||
Number of shares transferred (in shares) | 755,930 | ||||
Sunny Siu | |||||
Related Party Transaction | |||||
Number of shares transferred (in shares) | 1,678,500 | ||||
Class B ordinary shares | |||||
Related Party Transaction | |||||
Number of shares issued | 5,750,000 | ||||
Aggregate purchase price | $ 25,000 | ||||
Number of shares transferred (in shares) | 155,000 | ||||
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination | 1 year | ||||
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 | ||||
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences | 150 days |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional information (Details) | 3 Months Ended | 9 Months Ended | ||||||
Jan. 13, 2022 USD ($) $ / shares | Aug. 12, 2020 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Aug. 28, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction | ||||||||
Amount of loan contributed | $ 523,743 | $ 309,210 | ||||||
Percentage of conversion price higher than value of warrants | 1,250 | 1,250 | ||||||
Advance from related party | $ 427,857 | $ 427,857 | ||||||
Convertible promissory note | 1,500,000 | 1,500,000 | ||||||
Administrative Services Agreement | ||||||||
Related Party Transaction | ||||||||
Expenses per month | 10,000 | |||||||
Expense incurred | 30,000 | $ 30,000 | 90,000 | $ 90,000 | ||||
Accrued fee | 180,000 | 180,000 | $ 90,000 | |||||
Related Party Loans | ||||||||
Related Party Transaction | ||||||||
Amount of loan contributed | $ 1,500,000 | |||||||
Price of warrants (in dollars per share) | $ / shares | $ 1 | |||||||
Advance from related party | 427,857 | 427,857 | 0 | |||||
Convertible promissory note | 1,500,000 | 1,500,000 | 0 | |||||
Amount deposited in trust account | 221,190 | 1,451,532 | ||||||
Working Capital Loans | ||||||||
Related Party Transaction | ||||||||
Maximum borrowing capacity of related party promissory note | $ 2,125,000 | |||||||
Outstanding balance of related party note | 1,500,000 | 1,500,000 | $ 2,000,000 | 2,000,000 | ||||
Sponsor loan amount per share of ordinary share upon extension of business combination period | $ / shares | $ 0.03 | |||||||
Working Capital Facility | ||||||||
Related Party Transaction | ||||||||
Maximum borrowing capacity of related party promissory note | $ 1,500,000 | |||||||
Outstanding balance of related party note | $ 1,051,499 | $ 1,051,499 | $ 527,756 | |||||
Amount deposited | 900,000 | |||||||
Maximum fund withdraw for lending facility deposits | $ 1,500,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 9 Months Ended | |||||||||
Oct. 13, 2021 USD ($) $ / shares shares | Sep. 30, 2022 USD ($) $ / shares | Sep. 07, 2022 shares | Sep. 04, 2022 USD ($) | Jul. 01, 2022 USD ($) | Mar. 31, 2022 USD ($) | Mar. 16, 2022 USD ($) | Jan. 18, 2022 USD ($) | Oct. 31, 2021 USD ($) | Jul. 27, 2020 item | |
COMMITMENTS AND CONTINGENCIES | ||||||||||
Maximum number of demands for registration of securities | item | 3 | |||||||||
Cash underwriting discount per unit | $ / shares | $ 0.20 | |||||||||
Cash underwriting discount paid | $ 4,600,000 | |||||||||
Deferred fee per unit | $ / shares | $ 0.35 | |||||||||
Deferred underwriting fee payable | $ 8,050,000 | |||||||||
Business Combination Agreement | PIPE Investors | 12.0% convertible senior notes | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Aggregate principal amount | $ 25,000,000 | |||||||||
Interest rate | 12% | |||||||||
Business Combination Agreement | PIPE Investors | 15.5% convertible notes [Member] | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Aggregate purchase price of additional shares issued | $ 200,000,000 | |||||||||
Interest rate | 15.50% | |||||||||
Business Combination Agreement | ACE SO3 SPV Limited | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Aggregate purchase price | $ 20,000,000 | |||||||||
Business Combination Agreement | Common stock | PIPE Investors | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Price per share | $ / shares | $ 10 | |||||||||
Additional number of shares issued | shares | 550,000 | |||||||||
Aggregate purchase price of additional shares issued | $ 5,500,000 | |||||||||
Business Combination Agreement | Tempo | Common stock | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Number of shares outstanding | shares | 23,500,000 | |||||||||
Price per share | $ / shares | $ 10 | |||||||||
Aggregate purchase price | $ 235,000,000 | |||||||||
Cantor purchase agreement | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Aggregate purchase price | $ 100,000,000 | |||||||||
Merger Agreement | Sponsor | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Price per share | $ / shares | $ 12 | |||||||||
Merger Agreement Amendment | Business Combination Agreement | Tempo | Common stock | Minimum | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Base purchase price | $ 235,000,000 | |||||||||
Merger Agreement Amendment | Business Combination Agreement | Tempo | Common stock | Maximum | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Base purchase price | $ 257,927,013 | |||||||||
Backstop Subscription Agreement | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Aggregate purchase price | $ 25,000,000 | |||||||||
Third Amended And Restated Subscription Agreements | Business Combination Agreement | Common stock | PIPE Investors | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Additional number of shares issued | shares | 500,000 | |||||||||
Tempo Holdings Llc | Subscription Agreement | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Aggregate principal amount | $ 1,100,000 | |||||||||
Tor Asia Credit Opportunity Master Fund Ii Lp | Subscription Agreement | ||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||
Aggregate purchase price | $ 25,000,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) | Jun. 15, 2023 | Sep. 07, 2022 USD ($) $ / shares shares | Sep. 04, 2022 USD ($) | Aug. 12, 2022 USD ($) tranche $ / shares shares | Jul. 30, 2022 USD ($) | Jul. 06, 2022 $ / shares shares | Jul. 05, 2022 $ / shares | Jul. 01, 2022 USD ($) tranche shares | Oct. 13, 2022 | Sep. 30, 2022 USD ($) $ / shares | Oct. 31, 2021 USD ($) $ / shares shares | Oct. 13, 2021 $ / shares |
OCM | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Percentage of termination fee | 0.60% | 3.50% | ||||||||||
Aggregate principal amount | $ | $ 1,100,000 | $ 7,000,000 | ||||||||||
Threshold period for payment of termination fee | 6 months | |||||||||||
Amount agreed to pay in terms of fees and expenses | $ | $ 1,200,000 | |||||||||||
Accrued interest rate for termination fees and other fees and expenses (in percent) | 20% | |||||||||||
Merger Agreement Amendment | Sponsor | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Number of trading days | 20 days | |||||||||||
Number of consecutive trading days | 30 days | |||||||||||
Backstop Subscription Agreement | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Number of shares subscribed by PIPE investors as a part of merger agreement | 2,500,000 | |||||||||||
purchase price per share | $ / shares | $ 10 | |||||||||||
Aggregate purchase price | $ | $ 25,000,000 | |||||||||||
Merger Agreement | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Available cash amount | $ | $ 10,000,000 | |||||||||||
Merger Agreement | Sponsor | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Price per share | $ / shares | $ 12 | |||||||||||
Tempo | Compass | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Percentage of equity interest | 100% | |||||||||||
Business Combination Agreement | Whizz Sellers | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
After closing date | 150 days | |||||||||||
Business Combination Agreement | SSA Amendment | Sponsor | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Number of founder shares to contribute, transfer, assign, convey and deliver by Sponsored | 5,595,000 | 5,595,000 | ||||||||||
Number of shares exchanged for founder shares | 3,095,000 | 3,595,000 | ||||||||||
Number of Sponsor Earnout Shares to be issued | 500,000 | |||||||||||
Business Combination Agreement | Minimum | Third Amended And Restated Subscription Agreements | Sponsor | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Number of shares exchanged for founder shares | 3,095,000 | |||||||||||
Number of Sponsor Earnout Shares to be issued | 500,000 | |||||||||||
Business Combination Agreement | Maximum | Third Amended And Restated Subscription Agreements | Sponsor | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Number of shares exchanged for founder shares | 3,595,000 | |||||||||||
Number of Sponsor Earnout Shares to be issued | 1,000,000 | |||||||||||
Business Combination Agreement | Common stock | PIPE Investors | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Price per share | $ / shares | $ 10 | |||||||||||
Business Combination Agreement | Common stock | Third Amended And Restated Subscription Agreements | PIPE Investors | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Price per share | $ / shares | $ 10 | |||||||||||
Minimum adjustment period VWAP | $ / shares | $ 4 | |||||||||||
Additional number of shares to be issued | 2,000,000 | |||||||||||
Period of holding from closing of subscription (in months) | 15 months | |||||||||||
Number of trading days | 30 days | |||||||||||
Number of consecutive trading days | 29 days | |||||||||||
Measurement date | 30 days | |||||||||||
Business Combination Agreement | Common stock | Second A&R Subscription Agreements | PIPE Investors | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Price per share | $ / shares | $ 10 | |||||||||||
Minimum adjustment period VWAP | $ / shares | $ 4 | |||||||||||
Additional number of shares to be issued | 2,000,000 | |||||||||||
Number of trading days | 30 days | |||||||||||
Number of consecutive trading days | 29 days | |||||||||||
Business Combination Agreement | Common stock | SSA Amendment | PIPE Investors | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Period of holding from closing of subscription (in months) | 15 months | |||||||||||
Business Combination Agreement | Common stock | Maximum | Second A&R Subscription Agreements | PIPE Investors | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Minimum adjustment period VWAP | $ / shares | $ 6.50 | |||||||||||
Business Combination Agreement | Class A ordinary shares | SSA Amendment | Sponsor | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Number of Sponsor Earnout Shares to be issued | 2,000,000 | |||||||||||
Business Combination Agreement | Tempo | Whizz | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Percentage of equity interest | 100% | |||||||||||
Business Combination Agreement | Tempo | Common stock | Merger Agreement Amendment | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Number of earnout shares to be issued | 7,500,000 | |||||||||||
Number of tranches for vesting of earnout shares | tranche | 2 | 2 | ||||||||||
Number of earnout shares in one tranche | 3,500,000 | 5,000,000 | ||||||||||
Amount of EBITDA to be earned for vesting of earnout shares | $ | $ 5,000,000 | $ 10,000,000 | ||||||||||
Amount of revenue to be earned for vesting of earnout shares | $ | $ 15,000,000 | $ 50,000,000 | ||||||||||
Period for EBITDA and revenue to be earned for vesting of earnout shares | 5 years | 5 years | ||||||||||
Number of shares outstanding | 23,500,000 | |||||||||||
Price per share | $ / shares | $ 10 | |||||||||||
Business Combination Agreement | Tempo | Common stock | Minimum | Merger Agreement Amendment | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Base purchase price | $ | $ 235,000,000 | $ 235,000,000 | $ 488,375,000 | |||||||||
Number of earnout shares to be issued | 7,000,000 | |||||||||||
Reduce the minimum cash condition | $ | $ 10,000,000 | |||||||||||
Business Combination Agreement | Tempo | Common stock | Maximum | Merger Agreement Amendment | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Base purchase price | $ | $ 257,927,013 | $ 488,375,000 | $ 658,434,783 | |||||||||
Number of earnout shares to be issued | 10,000,000 | 10,000,000 | ||||||||||
Reduce the minimum cash condition | $ | $ 320,000,000 | |||||||||||
Business Combination Agreement | PIPE Promissory Notes | Common stock | Second A&R Subscription Agreements | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Period of holding from closing of subscription (in months) | 15 months | |||||||||||
Subsequent event | OCM | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||
Percentage of termination fee | 3.50% | |||||||||||
Accrued interest rate for termination fees and other fees and expenses (in percent) | 20% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Subscription Agreement (Details) $ in Millions | Jun. 15, 2023 | Sep. 04, 2022 USD ($) | Jul. 30, 2022 USD ($) | Jan. 18, 2022 USD ($) item |
OCM | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Percentage of termination fee | 0.60% | 3.50% | ||
Aggregate principal amount | $ 1.1 | $ 7 | ||
Amount agreed to pay in terms of fees and expenses | $ 1.2 | |||
Threshold period for payment of termination fee | 6 months | |||
Accrued interest rate for termination fees and other fees and expenses (in percent) | 20% | |||
OCM | Subsequent event | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Percentage of termination fee | 3.50% | |||
Accrued interest rate for termination fees and other fees and expenses (in percent) | 20% | |||
Subscription Agreement | OCM | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Aggregate purchase price | $ 175 | |||
Number of directors to be appointed | item | 2 | |||
Percentage of aggregate principal amount of no longer holds or control notes | 50% | |||
Subscription Agreement | OCM | 15.5% convertible notes | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Interest rate | 15.50% | |||
Tempo Holdings Llc [Member] | Subscription Agreement | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Percentage of termination fee | 0.60% | |||
Aggregate principal amount | $ 1.1 | |||
Amount agreed to pay in terms of fees and expenses | $ 1.2 | |||
Threshold period for payment of termination fee | 6 months | |||
Accrued interest rate for termination fees and other fees and expenses (in percent) | 20% | |||
Tor Asia Credit Opportunity Master Fund Ii Lp | Subscription Agreement | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Aggregate purchase price | $ 25 | |||
Tor Asia Credit Opportunity Master Fund Ii Lp | Subscription Agreement | 15.5% convertible notes | ||||
COMMITMENTS AND CONTINGENCIES | ||||
Interest rate | 15.50% |
SHAREHOLDERS' DEFICIT - Prefere
SHAREHOLDERS' DEFICIT - Preference Shares (Details) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
SHAREHOLDERS' DEFICIT | ||
Preference shares, par value | $ 0.0001 | $ 0.0001 |
Preference shares, shares authorized | 5,000,000 | 5,000,000 |
Preference shares, shares issued | 0 | 0 |
Preference shares, shares outstanding | 0 | 0 |
SHAREHOLDERS' DEFICIT - Ordinar
SHAREHOLDERS' DEFICIT - Ordinary shares (Details) | 1 Months Ended | ||||||||
Oct. 11, 2022 USD ($) shares | Jul. 12, 2022 USD ($) shares | Jan. 21, 2022 USD ($) shares | Oct. 31, 2022 USD ($) shares | Jul. 31, 2022 USD ($) shares | Jan. 31, 2022 USD ($) shares | Sep. 30, 2022 Vote $ / shares shares | Dec. 31, 2021 $ / shares shares | Jul. 30, 2020 $ / shares | |
Class of Stock [Line Items] | |||||||||
Threshold conversion ratio of stock | 20% | ||||||||
Cash withdrawn from Trust Account in connection with redemption | $ | $ 148,079,821 | $ 12,349,642 | $ 148,079,821 | ||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 1,202,070 | ||||||||
Class A ordinary shares | |||||||||
Class of Stock [Line Items] | |||||||||
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 | |||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||
Common shares, votes per share | Vote | 1 | ||||||||
Ordinary shares, subject to possible redemption issued | 3,945,298 | 23,000,000 | |||||||
Ordinary shares, shares subject to possible redemption | 8,202,277 | 23,000,000 | |||||||
Cash withdrawn from Trust Account in connection with redemption | $ | $ 43,349,494 | $ 12,349,642 | $ 43,349,494 | $ 148,079,821 | |||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 4,256,979 | 14,797,723 | 1,202,070 | 4,256,979 | 14,797,723 | ||||
Class A ordinary shares | Subsequent event [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Cash withdrawn from Trust Account in connection with redemption | $ | $ 12,324,919 | ||||||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 1,202,070 | ||||||||
Class A ordinary shares subject to possible redemption | |||||||||
Class of Stock [Line Items] | |||||||||
Ordinary shares, subject to possible redemption issued | 3,945,298 | 23,000,000 | |||||||
Ordinary shares, shares subject to possible redemption | 3,945,298 | 23,000,000 | |||||||
Class A ordinary shares not subject to possible redemption | |||||||||
Class of Stock [Line Items] | |||||||||
Ordinary shares, shares issued | 0 | 0 | |||||||
Ordinary shares, shares outstanding | 0 | 0 | |||||||
Class B common stock | |||||||||
Class of Stock [Line Items] | |||||||||
Ordinary shares, shares authorized | 50,000,000 | 50,000,000 | |||||||
Ordinary shares, par value | $ / shares | $ 0.0001 | $ 0.0001 | |||||||
Common shares, votes per share | Vote | 1 | ||||||||
Ordinary shares, shares issued | 5,750,000 | 5,750,000 | |||||||
Ordinary shares, shares outstanding | 5,750,000 | 5,750,000 |
WARRANTS (Details)
WARRANTS (Details) | 9 Months Ended |
Sep. 30, 2022 $ / shares shares | |
WARRANTS | |
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 |
Public Warrant | |
WARRANTS | |
Warrants outstanding | shares | 11,500,000 |
Public Warrants exercisable term after the completion of a business combination | 30 days |
Public Warrants exercisable term from the closing of the initial public offering | 12 months |
Public Warrants expiration term | 5 years |
Threshold period for filling registration statement after business combination | 15 days |
Threshold period for registration statement to be effective after which warrants can be exercised on a cashless basis | 60 days |
Redemption price per public warrant (in dollars per share) | $ 0.01 |
Minimum threshold written notice period for redemption of public warrants | 30 days |
Threshold trading days for redemption of public warrants | 20 days |
Threshold consecutive trading days for redemption of public warrants | 30 days |
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 |
Threshold issue price for capital raising purposes in connection with the closing of a Business Combination | $ 9.20 |
Percentage of gross proceeds on total equity proceeds | 60% |
Threshold trading days for calculating market value | 20 days |
Adjustment of exercise price of warrants based on market value and newly issued price (as a percent) | 115% |
Adjustment one of redemption price of stock based on market value and newly issued price (as a percent) | 180% |
Private Placement Warrants | |
WARRANTS | |
Warrants outstanding | shares | 6,600,000 |
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination | 30 days |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets and liabilities measured on recurring basis (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Assets: | ||
Cash and marketable securities held in Trust Account | $ 40,293,597 | $ 230,158,259 |
Liabilities: | ||
Warrant liability | 1,810,000 | 12,766,082 |
Level 1 | ||
Assets: | ||
Cash and marketable securities held in Trust Account | 40,293,597 | 230,158,259 |
Level 1 | Public Warrant | ||
Liabilities: | ||
Warrant liability | 1,150,000 | 7,820,000 |
Level 2 | Private Placement Warrants | ||
Liabilities: | ||
Warrant liability | 660,000 | |
Level 3 | ||
Liabilities: | ||
PIPE derivative liability- PIPE Incentive Shares | $ 19,905,700 | |
Level 3 | Private Placement Warrants | ||
Liabilities: | ||
Warrant liability | $ 4,946,082 |
FAIR VALUE MEASUREMENTS - Initi
FAIR VALUE MEASUREMENTS - Initial measurement of key inputs for Private Placement Warrants and Public Warrants (Details) | Dec. 31, 2021 Y USD ($) |
Risk-free interest rate | |
FAIR VALUE MEASUREMENTS | |
Warrants initial measurement | 0.0126 |
Expected term (years) | |
FAIR VALUE MEASUREMENTS | |
Warrants initial measurement | Y | 5.28 |
Expected volatility | |
FAIR VALUE MEASUREMENTS | |
Warrants initial measurement | 0.188 |
Exercise price | |
FAIR VALUE MEASUREMENTS | |
Warrants initial measurement | 11.50 |
Stock Price | |
FAIR VALUE MEASUREMENTS | |
Warrants initial measurement | 9.96 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value of warrant liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | |||||||||
Transfers to Level 2 | $ 660,000 | $ 660,000 | |||||||
Fair Value, Liability, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Fair Value Adjustment of Warrants | Fair Value Adjustment of Warrants | |||||||
Level 3 | Private Placement Warrants | |||||||||
FAIR VALUE MEASUREMENTS | |||||||||
Fair value, beginning balance | 528,000 | $ 4,650,289 | $ 4,946,082 | $ 13,259,885 | $ 13,375,560 | $ 9,504,000 | $ 4,946,082 | $ 9,504,000 | 9,504,000 |
Change in fair value | 132,000 | (4,122,289) | (295,793) | (9,104,121) | (115,675) | 3,871,560 | |||
Transfers to Level 2 | $ (660,000) | ||||||||
Fair value, ending balance | $ 528,000 | $ 4,650,289 | $ 4,155,764 | $ 13,259,885 | $ 13,375,560 | $ 4,155,764 | $ 4,946,082 |
FAIR VALUE MEASUREMENTS - Disco
FAIR VALUE MEASUREMENTS - Discounted Cash Flows Model for the PIPE Derivative Liability (Details) - PIPE Derivative Liability | Sep. 30, 2022 $ / shares USD ($) | Sep. 07, 2022 $ / shares USD ($) |
Incentive shares | ||
FAIR VALUE MEASUREMENTS | ||
Measurement input | $ | 2,000,000 | 2,000,000 |
Per share subscription price | ||
FAIR VALUE MEASUREMENTS | ||
Measurement input | $ / shares | 10 | 10 |
Discount period | ||
FAIR VALUE MEASUREMENTS | ||
Measurement input | 0.00210 | 0.00150 |
Present value factor | ||
FAIR VALUE MEASUREMENTS | ||
Measurement input | 0.00994 | 0.00995 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair value of the PIPE Derivative Liability (Details) - PIPE Derivative Liability | 1 Months Ended |
Sep. 30, 2022 USD ($) | |
FAIR VALUE MEASUREMENTS | |
Fair value, beginning balance | $ 19,878,900 |
Change in fair value | 26,800 |
Fair value, ending balance | $ 19,905,700 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 21, 2022 | Oct. 31, 2022 | Jan. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
FAIR VALUE MEASUREMENTS | ||||||
Assets held-in-trust, noncurrent | $ 40,293,597 | $ 40,293,597 | $ 230,158,259 | |||
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 | |||||
Class A Ordinary shares elected to redeem upon extension of business combination period | 1,202,070 | |||||
Cash withdrawn from Trust Account in connection with redemption | $ 148,079,821 | $ 12,349,642 | $ 148,079,821 | |||
Transferred from Level 3 to Level 2 | 660,000 | 660,000 | ||||
Public Warrant | ||||||
FAIR VALUE MEASUREMENTS | ||||||
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 | |||||
Cash | ||||||
FAIR VALUE MEASUREMENTS | ||||||
Assets held-in-trust, noncurrent | $ 40,293,597 | $ 40,293,597 | 598 | |||
U.S. Treasury Securities | ||||||
FAIR VALUE MEASUREMENTS | ||||||
Assets held-in-trust, noncurrent | $ 230,157,661 |