Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | COLICITY INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001829615 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | true | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-40095 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 85-3526440 | |
Entity Address, Address Line One | 2300 Carillon Point | |
Entity Address, City or Town | Kirkland | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98033 | |
City Area Code | (425) | |
Local Phone Number | 278-7100 | |
Entity Interactive Data Current | Yes | |
Units, each consisting of one share of Class A common stock and one-fifth of one redeemable warrant | ||
Document Information Line Items | ||
Trading Symbol | COLIU | |
Title of 12(b) Security | Units, each consisting of one share of Class A common stock and one-fifth of one redeemable warrant | |
Security Exchange Name | NASDAQ | |
Class A common stock, par value $0.0001 per share | ||
Document Information Line Items | ||
Trading Symbol | COLI | |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | ||
Document Information Line Items | ||
Trading Symbol | COLIW | |
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | |
Security Exchange Name | NASDAQ | |
Class A Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 34,500,000 | |
Class B Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 8,625,000 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 998,001 | |
Prepaid expenses | 431,166 | |
Total current assets | 1,429,167 | |
Deferred offering costs | 37,736 | |
Marketable securities held in Trust Account | 345,023,876 | |
Total Assets | 346,453,043 | 37,736 |
Current liabilities: | ||
Accrued expenses | 117,271 | 229 |
Franchise tax payable | 140,887 | |
Promissory note – related party | 18,143 | |
Total current liabilities | 258,158 | 18,372 |
Warrant liabilities | 11,107,000 | |
Deferred underwriting fee payable | 11,753,875 | |
Total Liabilities | 23,119,033 | 18,372 |
Commitments and Contingencies | ||
Class A common stock subject to possible redemption, 34,500,000 and 0 shares at $10.00 per share redemption value as of September 30, 2021 and December 31, 2020, respectively | 345,000,000 | |
Stockholders’ Equity (Deficit): | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | ||
Class A common stock, $0.0001 par value, 200,000,000 shares authorized | ||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 8,625,000 shares issued and outstanding | 863 | 863 |
Additional paid-in capital | 24,137 | |
Accumulated deficit | (21,666,853) | (5,636) |
Total Stockholders’ Equity (Deficit) | (21,665,990) | 19,364 |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 346,453,043 | $ 37,736 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Redemption value (in Dollars per share) | $ 10 | $ 10 |
Class A common Stock subject to possible redemption | 34,500,000 | 0 |
Preferred stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common Stock | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Class B Common Stock | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 8,625,000 | 8,625,000 |
Common stock, shares outstanding | 8,625,000 | 8,625,000 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
General and administrative expenses | $ 170,379 | $ 528,928 |
Franchise tax expense | 59,113 | 140,887 |
Loss from operations | (229,492) | (669,815) |
Other income (expense), net: | ||
Interest earned on marketable securities held in Trust Account | 4,440 | 23,876 |
Warrant offering costs | (494,746) | |
Change in fair value of warrant liabilities | 9,486,999 | 6,694,000 |
Other income, net | 9,491,439 | 6,223,130 |
Income before provision for income taxes | 9,261,947 | 5,553,315 |
Provision for income taxes | ||
Net income | $ 9,261,947 | $ 5,553,315 |
Class A Common Stock Subject To Possible Redemption [Member] | ||
Other income (expense), net: | ||
Basic and diluted weighted average shares outstanding (in Shares) | 34,500,000 | 27,423,077 |
Basic and diluted net income per share (in Dollars per share) | $ 0.21 | $ 0.15 |
Class B Common Stock Subject To Possible Redemption [Member] | ||
Other income (expense), net: | ||
Basic and diluted weighted average shares outstanding (in Shares) | 8,625,000 | 8,625,000 |
Basic and diluted net income per share (in Dollars per share) | $ 0.21 | $ 0.15 |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders’ Equity (Deficit) (Unaudited) - USD ($) | Class ACommon Stock | Class BCommon Stock | Additional Paid in Capital | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2020 | $ 863 | $ 24,137 | $ (5,636) | $ 19,364 | |
Beginning balance (in Shares) at Dec. 31, 2020 | 8,625,000 | ||||
Accretion for Class A common stock to redemption amount | (24,137) | (27,214,532) | (27,238,669) | ||
Net income (loss) | (3,270,098) | (3,270,098) | |||
Ending balance at Mar. 31, 2021 | $ 863 | (30,490,266) | (30,489,403) | ||
Ending balance (in Shares) at Mar. 31, 2021 | 8,625,000 | ||||
Beginning balance at Dec. 31, 2020 | $ 863 | 24,137 | (5,636) | 19,364 | |
Beginning balance (in Shares) at Dec. 31, 2020 | 8,625,000 | ||||
Accretion for Class A common stock to redemption amount | (27,238,669) | ||||
Ending balance at Sep. 30, 2021 | $ 863 | (21,666,853) | (21,665,990) | ||
Ending balance (in Shares) at Sep. 30, 2021 | 8,625,000 | ||||
Beginning balance at Mar. 31, 2021 | $ 863 | (30,490,266) | (30,489,403) | ||
Beginning balance (in Shares) at Mar. 31, 2021 | 8,625,000 | ||||
Net income (loss) | (438,534) | (438,534) | |||
Ending balance at Jun. 30, 2021 | $ 863 | (30,928,800) | (30,927,937) | ||
Ending balance (in Shares) at Jun. 30, 2021 | 8,625,000 | ||||
Net income (loss) | 9,261,947 | 9,261,947 | |||
Ending balance at Sep. 30, 2021 | $ 863 | $ (21,666,853) | $ (21,665,990) | ||
Ending balance (in Shares) at Sep. 30, 2021 | 8,625,000 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows (Unaudited) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Cash Flows from Operating Activities: | |
Net income | $ 5,553,315 |
Adjustments to reconcile net income to net cash used in operating activities: | |
Interest earned on marketable securities held in Trust Account | (23,876) |
Deferred warrant offering costs | 303,250 |
Change in fair value of warrant liabilities | (6,694,000) |
Changes in operating assets and liabilities: | |
Prepaid expenses | (431,166) |
Accrued expenses | 117,042 |
Franchise tax payable | 140,887 |
Net cash used in operating activities | (1,034,548) |
Cash Flows from Investing Activities: | |
Investment of cash into Trust Account | (345,000,000) |
Net cash used in investing activities | (345,000,000) |
Cash Flows from Financing Activities: | |
Proceeds from sale of Units (including $17.8 million initial measurement of warrants accounted for as liabilities), net of underwriting discounts paid | 338,456,786 |
Proceeds from sale of Private Placement Warrants | 8,900,000 |
Repayment of promissory note – related party | (18,143) |
Payment of offering costs | (306,094) |
Net cash provided by financing activities | 347,032,549 |
Net Change in Cash | 998,001 |
Cash – Beginning of period | |
Cash – End of period | 998,001 |
Non-Cash financing activities: | |
Accretion for Class A common stock to redemption amount | 27,238,669 |
Deferred underwriting fee payable | 11,753,875 |
Payment of offering costs through promissory note – related party | $ 37,736 |
Condensed Statement of Cash F_2
Condensed Statement of Cash Flows (Unaudited) (Parentheticals) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Statement of Cash Flows [Abstract] | |
Initial measurement of warrants | $ 17.8 |
Description of Organization, Bu
Description of Organization, Business Operations and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Description of Organization, Business Operations and Basis of Presentation | Note 1—Description of Organization, Business Operations and Basis of Presentation Colicity Inc. (the “Company”) was incorporated in Delaware on October 19, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). Although the Company is not limited to a particular industry or sector for purposes of consummating a Business Combination, the Company intends to initially focus its search on identifying a prospective target business in the technology, media and telecommunications industries in the United States and other developed countries. All activity for the period from October 19, 2020 (inception) through September 30, 2021 relates to the Company’s formation, its Initial Public Offering (as defined below), and 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 Company generates non-operating income in the form of interest income from the proceeds of the Initial Public Offering. The Company’s sponsor is X-icity Holdings Corporation, a Washington corporation (the “sponsor”). The registration statement for the Initial Public Offering was declared effective on February 23, 2021. On February 26, 2021, the Company consummated the Initial Public Offering of 34,500,000 units (the “Units” and the shares of Class A common stock included in the Units, the “Public Shares”), including the underwriters’ exercise of their full over-allotment option of 4,500,000 units, at $10.00 per Unit (“Over-Allotment Option”), generating gross proceeds of $345.0 million (the “Initial Public Offering”), and incurring offering costs of approximately $18.8 million, inclusive of approximately $11.8 million in deferred underwriting commissions (see Note 7). Simultaneously with the closing of the Initial Public Offering, the Company completed the private sale (the “Private Placement”) of an aggregate of 5,933,333 warrants (the “Private Placement Warrants”) to the Company’s sponsor, X-icity Holdings Corporation, at a purchase price of $1.50 per Private Placement Warrant, generating gross proceeds to the Company of $8.9 million. Upon the closing of the Initial Public Offering and the Private Placement, a total of $345.0 million ($10.00 per Unit), consisting of the net proceeds of the Initial Public Offering and certain of the proceeds of the Private Placement, was placed in a trust account (“Trust Account”), located in the United States at J.P. Morgan Chase Bank, N.A., with Continental Stock Transfer & Trust Company acting as trustee, and will only be 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”), having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act which invest only in direct U.S. government treasury obligations, until the earlier of (i) the completion of a Business Combination or (ii) the distribution of the Trust Account as described below. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete one or more initial Business Combinations having an aggregate fair market value of at least 80% of the net assets held in the Trust Account (net of amounts disbursed to management for working capital purposes and excluding the amount of any deferred underwriting discount held in trust) at the time of the agreement to enter into the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. The Company will provide holders of the Company’s outstanding shares of Class A common stock, par value $0.0001 per share, sold in the Initial Public Offering (the “Public Stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) without a stockholder vote by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then held in the Trust Account (initially anticipated to be $10.00 per Public Share). The per-share amount to be distributed to Public Stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 7). These Public Shares are recorded at a redemption value and classified as temporary equity in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480, Distinguishing Liabilities from Equity The Company’s Certificate of Incorporation provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), is restricted from redeeming its shares with respect to more than an aggregate of 20% or more of the Public Shares, without the prior consent of the Company. The sponsor and the Company’s officers and directors (the “initial stockholders”) have agreed not to propose an amendment to the Certificate of Incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of the Public Shares if the Company does not complete a Business Combination within the Combination Period (as defined below) or with respect to any other material provisions relating to stockholders’ rights or pre-initial Business Combination activity, unless the Company provides the Public Stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment. If the Company is unable to complete a Business Combination by February 26, 2023 (the “Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (less amounts released to pay taxes and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the Company’s board of directors, liquidate and dissolve, subject, in each case, to its obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to the warrants, which will expire worthless if the Company fails to complete a Business Combination within the 24- month time period. The initial stockholders 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. However, if the initial stockholders acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. The underwriters have agreed to waive their rights to the deferred underwriting commission (see Note 7) held in the Trust Account in the event the Company does not complete a Business Combination within in the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be only $10.00. In order to protect the amounts held in the Trust Account, the sponsor has agreed to be liable to the Company if and to the extent any claims by a third party (except for the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a letter of intent, confidentiality or other similar agreement or business combination agreement (a “Target”), reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or Target that executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). The Company will seek to reduce the possibility that the sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except for the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2—Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. 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 U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The Company has selected December 31 as its fiscal year end. The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s prospectus for its Initial Public Offering filed with the SEC on February 25, 2021 (the “Prospectus”), as well as the Company’s Current Report on Form 8-K filed with the SEC on March 4, 2021 (see Note 3). The financial information as of December 31, 2020 is derived from the audited financial statements presented in the Prospectus. The interim results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth 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 an 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 that 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. Liquidity and Capital Resources As of September 30, 2021, the Company had approximately $1.0 million in its operating bank account and working capital of approximately $1.2 million. Prior to the completion of the Initial Public Offering, the Company’s liquidity needs had been satisfied through the receipt of $25,000 from the sponsor in exchange for the issuance of the Founder Shares, and a promissory note (the “Note”) issued by the sponsor (see Note 6). The Company repaid the Note on February 26, 2021. Subsequent to the consummation of the Initial Public Offering and Private Placement, the Company’s liquidity needs have been satisfied with the proceeds from the consummation of the Private Placement not held in the Trust Account. In addition, in order to finance transaction costs in connection with a Business Combination, the sponsor may provide the Company Working Capital Loans (as defined in Note 6). As of September 30, 2021 and December 31, 2020, there were no Working Capital Loans outstanding. Based on the foregoing, management believes that the Company has sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a Business Combination or one year from the date of these financial statements. Over this time period, the Company will be using these funds for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future events. One of the more significant accounting estimates included in these financial statements is the determination of fair value of the Private Placement 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 Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2021 and December 31, 2020. Marketable Securities Held in Trust Account At September 30, 2021, substantially all of the assets held in the Trust Account were held in U.S. Treasury securities. As of September 30, 2021, the Company had not withdrawn any of the interest earned on the Trust Account to pay franchise or income tax obligations. The Company did not have any marketable securities held in a trust account at December 31, 2020. Offering Costs Associated with the Initial Public Offering Offering costs consist of legal, accounting, underwriting fees and other costs incurred that are directly related to the Initial Public Offering. Offering costs amounted to $18.8 million of which $0.5 million were allocated to the warrant liabilities and expensed immediately and $18.3 million were charged to temporary equity upon the completion of the Initial Public Offering and the exercise of the Over-Allotment Option. Warrant Liabilities The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 and ASC 815, Derivatives and Hedging For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and at fair value at each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the condensed statements of operations. The fair value of the warrants as of September 30, 2021, was estimated using a Monte Carlo simulation approach for the Private Placement Warrants and market price for the public warrants (see Note 9). Class A Common Stock Subject to Possible Redemption The Company accounts for its common stock subject to possible redemption in accordance with the guidance in ASC 480. Common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, all of the Company’s 34,500,000 shares of Class A common stock are subject to possible redemption and are presented at redemption amount as temporary equity, outside of the stockholders’ equity (deficit) section of the Company’s condensed balance sheet. The Company did not have any Class A common stock subject to possible redemption at December 31, 2020. As part of the revision of its financial statements (discussed in Note 3), the Company has classified all of its shares of Class A common stock as redeemable. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount. The change in the carrying value of redeemable shares of Class A common stock resulted in charges against additional paid-in capital and accumulated deficit. The Class A common stock subject to possible redemption reflected on the balance sheet as of September 30, 2021 is reconciled in the following table: Gross proceeds $ 345,000,000 Less: Proceeds allocated to public warrants (8,901,000 ) Class A common stock offering costs (18,337,669 ) Plus: Accretion of carrying value to redemption amount 27,238,669 Class A common stock subject to possible redemption $ 345,000,000 Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, Income Taxes ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s currently taxable income primarily consists of interest income on funds held in the Trust Account less any franchise taxes. The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible. During the three and nine months ended September 30, 2021, the Company recorded no income tax expense. The Company’s effective tax rate for the three and nine months ended September 30, 2021, was 0%, which differs from the expected income tax rate primarily due to the recognition of gain or loss from the change in the fair value of warrant liabilities, which is not recognized for tax purposes, and recording a full valuation allowance on the Company’s deferred tax assets as of September 30, 2021. Net Income per Common Share Net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. The Company has not considered the effect of warrants sold in the Initial Public Offering and the Private Placement to purchase 12,833,333 shares of Class A common stock in the calculation of diluted net income per share, since the average market price of the Company’s Class A common stock for the three and nine months ended September 30, 2021 was below the warrants’ $11.50 exercise price and the exercise of the warrants is contingent upon the occurrence of future events. As a result, diluted net income per common share is the same as basic net income per common share for the periods presented. The Company has two classes of common shares, which are referred to as Class A common stock and Class B common stock. Income and losses are shared pro rata between the two classes of common shares as long as a business combination is consummated. Accretion associated with the redeemable shares of Class A common stock is excluded from net income per share as the redemption amount approximates fair value. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income per share for each class of common stock (in dollars, except share amounts): Three Months Ended Nine Months Ended Class A Class B Class A Class B Basic and diluted net income per common share: Numerator: Allocation of net income $ 7,409,558 $ 1,852,389 $ 4,224,608 $ 1,328,707 Denominator: Basic and diluted weighted average common shares outstanding 34,500,000 8,625,000 27,423,077 8,625,000 Basic and diluted net income per common share $ 0.21 $ 0.21 $ 0.15 $ 0.15 Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, Fair Value Measurements and Disclosures Recent Accounting Pronouncements In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) ASU 2020-06 are effective for the Company beginning on January 1, 2024 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently evaluating the impact of this standard on its financial statements but does not expect the adoption of ASU 2020-06 will have a material effect on its financial statements. The Company’s management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
Revision of Previously Issued F
Revision of Previously Issued Financial Statement | 9 Months Ended |
Sep. 30, 2021 | |
Revision Of Previously Issued Financial Statement [Abstract] | |
Revision of Previously Issued Financial Statement | Note 3 —Revision of Previously Issued Financial Statement During the third quarter of 2021, the Company determined that it was appropriate to revise the presentation of Class A common stock subject to redemption to reflect all such shares within temporary equity since the Class A common stock redemption feature is not solely within the control of the Company. Previously, the Company classified a portion of its common stock subject to redemption as permanent equity in order to maintain net tangible assets of at least $5 million as required by its amended and restated certificate of incorporation. However, after further review, the Company believes classifying all of its common stock subject to redemption as temporary equity does not invalidate the $5 million requirement. Additionally, the Company notes that all of its Class A common stock is “subject to redemption” although, as discussed above in Note 1, the Company will not redeem its Class A common stock in an amount that would cause its net tangible assets to be less than $5,000,001. The accompanying statements of changes in stockholders’ equity (deficit) and cash flows no longer present the change in redeemable shares to align with the presentation of all Class A common stock as temporary equity. In addition, the Company’s condensed statements of changes in stockholders’ equity (deficit) for the three months ended March 31, 2021 and June 30, 2021 in these financial statements have been revised to reflect the classification of all of its Class A common stock as temporary equity. There has been no change to the Company’s total assets, liabilities or operating results. In connection with the change in presentation for the Class A common stock subject to redemption, the Company also revised its net income per share calculation to allocate net income evenly to Class A common stock and Class B common stock. This presentation contemplates a business combination as the most likely outcome, in which case, both classes of stock share pro rata in the net income/loss of the Company. The following tables summarizes the effect of the revision on specific line items in the Company’s February 26, 2021 audited closing date balance sheet: As Revision As Revised Balance Sheet as of February 26, 2021 (in dollars, except share amounts) Class A common stock subject to possible redemption $ 312,303,500 $ 32,696,500 $ 345,000,000 Class A common stock 327 (327 ) - Additional paid-in capital 5,501,637 (5,501,637 ) - Accumulated deficit (502,822 ) (27,194,536 ) (27,697,358 ) Total stockholders’ equity (deficit) 5,000,005 (32,696,500 ) (27,696,495 ) Number of Class A common shares subject to redemption 33,010,450 1,489,550 34,500,000 |
Initial Public Offering
Initial Public Offering | 9 Months Ended |
Sep. 30, 2021 | |
Initial Public Offering [Abstract] | |
Initial Public Offering | Note 4—Initial Public Offering On February 26, 2021, the Company consummated the Initial Public Offering of 34,500,000 Units, including the underwriters’ exercise of their full Over-Allotment Option, at $10.00 per Unit, generating gross proceeds of $345.0 million, and incurring offering costs of approximately $18.8 million, inclusive of approximately $11.8 million in deferred underwriting commissions. Each Unit consists of one share of Class A common stock, par value $0.0001 per share, and one-fifth of one redeemable warrant (each, a “Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 8). Pendrell Corporation, the parent of the sponsor (“Pendrell”), and an affiliate of Craig McCaw, the Company’s chief executive officer, purchased an aggregate of 400,000 Units in the Initial Public Offering at the public offering price. The underwriters did not receive any underwriting discounts or commissions on the Units purchased by these parties. If the Company submits its initial Business Combination to its Public Stockholders for a vote, its initial stockholders have agreed to vote their Founder Shares and any Public Shares purchased during or after the Initial Public Offering in favor of the initial Business Combination. As a result, in addition to the initial stockholders’ Founder Shares and the shares underlying the Units purchased by these parties in the Initial Public Offering, the Company would need 12,537,501, or 36.3%, of the 34,500,000 Public Shares sold in the Initial Public Offering to be voted in favor of an initial Business Combination in order to have the initial Business Combination approved (assuming all outstanding shares are voted). |
Private Placement
Private Placement | 9 Months Ended |
Sep. 30, 2021 | |
Private Placement [Abstract] | |
Private Placement | Note 5—Private Placement Simultaneously with the closing of the Initial Public Offering, the Company completed the Private Placement of an aggregate of 5,933,333 Private Placement Warrants to the Company’s sponsor, X-icity Holdings Corporation, at a purchase price of $1.50 per Private Placement Warrant, generating gross proceeds to the Company of $8.9 million. Each whole Private Placement Warrant is exercisable for one whole share of Class A common stock at a price of $11.50 per share. A portion of the proceeds from the sale of the Private Placement Warrants to the sponsor was added to the proceeds from the Initial Public Offering to be held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the Private Placement Warrants will expire worthless. The Private Placement Warrants will be non-redeemable for cash and exercisable on a cashless basis so long as they are held by the sponsor or its permitted transferees unless the Company calls for a redemption of all warrants when the reported price of the Class A common stock is at least $10.00 per share and no more than $18.00 per share. The sponsor and the Company’s officers and directors agreed, subject to limited exceptions, not to transfer, assign or sell any of their Private Placement Warrants until 30 days after the completion of the initial Business Combination. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6—Related Party Transactions Founder Shares On October 20, 2020, the sponsor paid for certain offering costs for an aggregate price of $25,000 in exchange for issuance of 7,187,500 shares of the Company’s Class B common stock, par value $0.0001 per share, (the “Founder Shares”). On February 3, 2021, the Company effected a 312,500 share stock dividend, on February 8, 2021, the Company effected a 1.0541667-for-1 common stock split and on February 23, 2021, the Company effected a 1.0909091-for-1 common stock split, resulting in an aggregate of 8,625,000 shares of Class B common stock outstanding. The sponsor transferred 40,250 Founder Shares to each of Wayne Perry, Dennis Weibling and Cathleen A. Massey, independent director nominees; 195,500 Founder Shares to Craig O. McCaw, director and Chief Executive Officer; 115,000 Founder Shares to Randy Russell, Chief Investment Officer; 97,750 Founder Shares to R. Gerard Salemme, director; 57,500 Founder Shares to Steve Ednie, Chief Financial Officer; and 329,648 Founder Shares to other directors, officers, employees, consultants and affiliates of Pendrell, in each case for approximately the same per-share price initially paid by the sponsor, resulting in the sponsor holding 7,708,852 Founder Shares. The Founder Shares, on an as-converted basis, represent 20.0% of the Company’s issued and outstanding shares. The initial stockholders have agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (i) one year after the completion of the initial Business Combination and (ii) the date following the completion of the initial Business Combination on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Company’s stockholders having the right to exchange their common stock for cash, securities or other property. Notwithstanding the foregoing, if the closing price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination or (2) if the Company consummates a transaction after the initial Business Combination which results in the stockholders having the right to exchange their shares for cash, securities or other property, the Founder Shares will be released from the lock-up. Related Party Loans On October 20, 2020, the sponsor agreed to loan the Company an aggregate of up to $300,000 to cover expenses related to the Initial Public Offering pursuant to the Note. The Note was non-interest bearing, unsecured and due at the earlier of May 31, 2021 or the completion of the Initial Public Offering. The Note was repaid upon the closing of the Initial Public Offering out of the $1.0 million of offering proceeds that had been allocated to the payment of offering expenses. In addition, in order to finance transaction costs in connection with a Business Combination, the sponsor or an affiliate of the sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination or, at the lender’s discretion, up to $1.5 million of such Working Capital Loans may be convertible into warrants of the post Business Combination entity at a price of $1.50 per warrant. The warrants would be identical to the Private Placement Warrants. At September 30, 2021 and December 31, 2020, the Company did not have any borrowings under the Working Capital Loans. Administrative Services Agreement The Company entered into an agreement whereby, commencing on February 23, 2021 and continuing until the earlier of the Company’s consummation of a Business Combination or the Company’s liquidation, the Company will pay an affiliate of the sponsor a total of $10,000 per month for office space, secretarial and administrative services. For the three and nine months ended September 30, 2021, the Company incurred $30,000 and $71,786, respectively, in fees for these services. The sponsor, executive officers and directors, or any of their respective affiliates, will be reimbursed for any out-of-pocket expenses incurred in connection with activities on the Company’s behalf such as identifying potential target businesses and performing due diligence on suitable Business Combinations. The Company’s audit committee will review on a quarterly basis all payments that were made to the sponsor, officers, directors or their affiliates. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 7—Commitments and Contingencies Registration Rights The holders of Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans, if any, (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants, warrants that may be issued upon conversion of Working Capital Loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights agreement. These holders are entitled to certain demand and “piggyback” registration rights. The Company will bear the expenses incurred in connection with the filing of any such registration statement. The registration rights agreement does not provide for any maximum cash penalties nor any penalties connected with delays in registering the Company’s common stock. Risks and Uncertainties Management continues to evaluate the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or search for a target company, the specific impact is not readily determinable as of the date of these condensed financial statements. The condensed financial statements do not include any adjustments that might results from the outcome of this uncertainty. Underwriting Agreement The underwriters received an underwriting discount of $0.20 per unit (excluding the 400,000 units purchased by Pendrell and an affiliate of Craig McCaw as well as 517,500 shares purchased by certain other parties (total of 917,500 shares) with respect to which no underwriting discount is payable), or $6,716,500 in the aggregate, upon the closing of the Initial Public Offering. $0.35 per unit (excluding the 400,000 units purchased by Pendrell and an affiliate of Craig McCaw as well as 517,500 shares purchased by certain other parties (total of 917,500 shares) with respect to which no underwriting discount is payable), or $11,753,875 in the aggregate will be payable to the underwriters for deferred underwriting commissions. 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. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity (Deficit) | Note 8 — Stockholders’ Equity (Deficit) Class A Common Stock Class B Common Stock Stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders. Holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders except as required by law. The Class B common stock will automatically convert into Class A common stock at the time of the initial Business Combination on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the case that additional shares of Class A common stock or equity-linked securities are issued or deemed issued in connection with the initial Business Combination, the number of shares of Class A common stock issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 20% of the total number of shares of Class A common stock outstanding after such conversion (after giving effect to any redemptions of shares of Class A common stock by Public Stockholders), including the total number of shares of Class A common stock issued, or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the consummation of the initial Business Combination, excluding any shares of Class A common stock or equity-linked securities or rights exercisable for or convertible into shares of Class A common stock issued, or to be issued, to any seller in the initial Business Combination and any Private Placement Warrants issued to the sponsor, officers or directors upon conversion of Working Capital Loans, provided that such conversion of Founder Shares will never occur on a less than one-for-one basis. Preferred Stock |
Warrant Liabilities
Warrant Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Warrant Liabilities | Note 9 — Warrant Liabilities Public Warrants may only be exercised for a whole number of shares. No fractional Public Warrants will be issued upon separation of the Units and only whole Public Warrants will trade. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the shares of Class A common stock issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Company has agreed that as soon as practicable, but in no event later than 15 business days, after the closing of a Business Combination, the Company will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the shares of Class A common stock issuable upon exercise of the Public Warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the Public Warrants in accordance with the provisions of the warrant agreement. Notwithstanding the above, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless” basis, and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but the Company will be required to use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. If (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the initial stockholders or their affiliates, without taking into account any Founder Shares held by the initial stockholders or such affiliates, as applicable, prior to such issuance), (y) the aggregate gross proceeds from such issuances represent more than 50% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Class A common stock during the 10 trading day period starting on the trading day after the day on which the Company consummates the initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the Public Warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price of the Public Warrants will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price. The Private Placement Warrants are identical to the Public Warrants, except that the Private Placement Warrants and the shares of Class A common stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the sponsor or its permitted transferees, unless the Company calls for a redemption of all warrants when the reported price of the Class A common stock is at least $10.00 per share and no more than $18.00 per share (subject to the conditions described in more detail below). If the Private Placement Warrants are held by someone other than the sponsor or its 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. The Company may call only the Public Warrants for redemption: ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon a minimum of 30 days’ prior written notice of redemption; and ● if, and only if, (i) the warrants are currently exercisable, (ii) there is an effective registration statement covering the Class A common stock issuable upon exercise of the warrants and (iii) the last sales price of the Class A common stock equals or exceeds $18.00 per share on each of 20 trading days within the 30-trading day period ending on the third business day prior to the date on which the Company sends the notice of redemption to the warrant holders. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The Company may call both the Private Placement Warrants and the Public Warrants for redemption: ● in whole and not in part; ● at a price of $0.10 per warrant; ● upon a minimum of 30 days’ prior written notice of redemption; and ● if, and only if, (i) there is an effective registration statement covering the Class A common stock issuable upon exercise of the warrants, and a current prospectus relating thereto, available throughout the 30-day redemption period, and (ii) the last reported sales price of the Class A common stock reported has been at least $10.00 per share on the trading day prior to the date on which notice of the redemption is given. During this 30-day redemption period in connection with a redemption of warrants when the price of the Class A common stock is at least $10.00 per share and no more than $18.00 per share, the holders of the warrants may elect to receive, in lieu of the redemption price, a number of shares of Class A common stock per warrant determined by reference to the table as set forth in the warrant agreement. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 — Fair Value Measurements At September 30, 2021, assets held in the Trust Account were comprised of $345,023,876 in money market funds which are invested in U.S. Treasury securities. As of September 30, 2021, the Company had not withdrawn any of the interest earned in the Trust Account to pay franchise or income tax obligations. There were no funds held in the Trust Account at December 31, 2020. At September 30, 2021, there were 6,900,000 Public Warrants and 5,933,333 Private Placement Warrants outstanding. There were no Public or Private Placement Warrants outstanding at December 31, 2020. 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 an 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 as of September 30, 2021, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: September 30, Description Level 2021 Assets: Marketable securities held in Trust Account - U.S. Treasury Securities Money Market Fund 1 $ 345,023,876 Liabilities: Warrant liabilities - Public Warrants 1 $ 5,589,000 Warrant liabilities - Private Placement Warrants 3 5,518,000 Total warrant liabilities $ 11,107,000 The Company did not have any assets and liabilities measured at fair value on a recurring basis as of December 31, 2020. Warrants The warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the condensed 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 statements of operations. The Company established the initial fair value for the warrants on February 26, 2021, the date of the Company’s Initial Public Offering, using a Monte Carlo simulation model. The Company allocated the proceeds received from (i) the sale of Units (which is inclusive of one share of Class A common stock and one-fifth of one Public Warrant), (ii) the sale of Private Placement Warrants, and (iii) the issuance of Class B common stock, first to the warrants based on their fair values as determined at initial measurement, with the remaining proceeds allocated to Class A common stock subject to possible redemption (temporary equity) and Class B common stock (permanent equity) based on their relative fair values at the initial measurement date. The warrants were classified as Level 3 at February 26, 2021 (inception) due to the use of unobservable inputs. In accordance with the terms of the Units as disclosed in the Prospectus, on April 16, 2021, the shares of Class A common stock and warrants comprising the Units began separate trading on The Nasdaq Capital Market. As a result, the Company began utilizing the market price to determine the fair value of the Public Warrants and the Public Warrants moved from Level 3 to Level 1. The key inputs into the Monte Carlo simulation model for the Private Placement Warrants were as follows at September 30, 2021: September 30, Input 2021 Risk-free interest rate 1.05 % Expected term (years) 5 Expected volatility 21.00 % Exercise price $ 11.50 Stock price $ 9.77 The Company’s use of a Monte Carlo simulation model required the use of subjective assumptions as follows: ● The risk-free interest rate assumption was based on the U.S. Treasury rate for expected terms, which was commensurate with the contractual term of the warrants, which expire on the earlier of (i) five years after the completion of the initial Business Combination and (ii) upon redemption or liquidation. An increase in the risk-free interest rate, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa. ● The expected term was determined based on the exercise period, the warrants become exercisable on the later of (i) 30 days after the completion of a Business Combination and (ii) 12 months from the Initial Public Offering date. An increase in the expected term, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa. ● The expected volatility assumption was based on observed volatilities from comparable publicly-traded companies, determined based on the size and proximity of other similar business combinations, as well as the volatility implied by the public trading price of Colicity public warrants and Public Shares. An increase in the expected volatility, in isolation, would result in an increase in the fair value measurement of the warrant liabilities and vice versa. ● The stock price at Initial Public Offering (inception) represents the unit price less one-fifth of the warrant price at the Initial Public Offering date. Commencing April 16, 2021, the Company’s Units were able to be separately traded as Class A common stock and warrants. As a result, the stock price at September 30, 2021 represents the market price of Class A common stock on that date Based on the applied volatility assumption and the expected term to a business combination noted above, the Company determined that the fair value of the warrant liabilities at February 26, 2021 (inception) was $17.8 million. As of September 30, 2021, the aggregate value of the warrants was $11.1 million. The aggregate change in the fair value of the warrant liabilities since inception of $6.7 million was recognized in the condensed statements of operations. The change in the fair value of the warrant liabilities classified as Level 3 for the period from February 26, 2021 (inception) through September 30, 2021 is summarized as follows: Warrant Liabilities Initial measurement on February 26, 2021 $ 17,801,000 Change in fair value of warrant liabilities 2,667,333 Fair value as of March 31, 2021 20,468,333 Transfers out of Level 3 (8,970,000 ) Change in fair value of warrant liabilities (1,530,334 ) Fair value as of June 30, 2021 9,967,999 Change in fair value of warrant liabilities (4,449,999 ) Fair value as of September 30, 2021 $ 5,518,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 — Subsequent Events The Company evaluated subsequent events and transactions that occurred after the balance sheet date through November 12, 2021, the date the unaudited condensed financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required recognition or disclosure in the unaudited condensed financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. 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 U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The Company has selected December 31 as its fiscal year end. The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s prospectus for its Initial Public Offering filed with the SEC on February 25, 2021 (the “Prospectus”), as well as the Company’s Current Report on Form 8-K filed with the SEC on March 4, 2021 (see Note 3). The financial information as of December 31, 2020 is derived from the audited financial statements presented in the Prospectus. The interim results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods. |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth 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 an 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 that 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. |
Liquidity and Capital Resources | Liquidity and Capital Resources As of September 30, 2021, the Company had approximately $1.0 million in its operating bank account and working capital of approximately $1.2 million. Prior to the completion of the Initial Public Offering, the Company’s liquidity needs had been satisfied through the receipt of $25,000 from the sponsor in exchange for the issuance of the Founder Shares, and a promissory note (the “Note”) issued by the sponsor (see Note 6). The Company repaid the Note on February 26, 2021. Subsequent to the consummation of the Initial Public Offering and Private Placement, the Company’s liquidity needs have been satisfied with the proceeds from the consummation of the Private Placement not held in the Trust Account. In addition, in order to finance transaction costs in connection with a Business Combination, the sponsor may provide the Company Working Capital Loans (as defined in Note 6). As of September 30, 2021 and December 31, 2020, there were no Working Capital Loans outstanding. Based on the foregoing, management believes that the Company has sufficient working capital and borrowing capacity to meet its needs through the earlier of the consummation of a Business Combination or one year from the date of these financial statements. Over this time period, the Company will be using these funds for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future events. One of the more significant accounting estimates included in these financial statements is the determination of fair value of the Private Placement 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 Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September 30, 2021 and December 31, 2020. |
Marketable Securities Held in Trust Account | Marketable Securities Held in Trust Account At September 30, 2021, substantially all of the assets held in the Trust Account were held in U.S. Treasury securities. As of September 30, 2021, the Company had not withdrawn any of the interest earned on the Trust Account to pay franchise or income tax obligations. The Company did not have any marketable securities held in a trust account at December 31, 2020. |
Offering Costs Associated with the Initial Public Offering | Offering Costs Associated with the Initial Public Offering Offering costs consist of legal, accounting, underwriting fees and other costs incurred that are directly related to the Initial Public Offering. Offering costs amounted to $18.8 million of which $0.5 million were allocated to the warrant liabilities and expensed immediately and $18.3 million were charged to temporary equity upon the completion of the Initial Public Offering and the exercise of the Over-Allotment Option. |
Warrant Liabilities | Warrant Liabilities The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 and ASC 815, Derivatives and Hedging For issued or modified warrants that meet all of the criteria for equity classification, the warrants are required to be recorded as a component of additional paid-in capital at the time of issuance. For issued or modified warrants that do not meet all the criteria for equity classification, the warrants are required to be recorded at their initial fair value on the date of issuance, and at fair value at each balance sheet date thereafter. Changes in the estimated fair value of the warrants are recognized as a non-cash gain or loss on the condensed statements of operations. The fair value of the warrants as of September 30, 2021, was estimated using a Monte Carlo simulation approach for the Private Placement Warrants and market price for the public warrants (see Note 9). |
Class A Common Stock Subject to Possible Redemption | Class A Common Stock Subject to Possible Redemption The Company accounts for its common stock subject to possible redemption in accordance with the guidance in ASC 480. Common stock subject to mandatory redemption is classified as a liability instrument and is measured at fair value. Conditionally redeemable common stock (including common stock that features redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, common stock is classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, at September 30, 2021, all of the Company’s 34,500,000 shares of Class A common stock are subject to possible redemption and are presented at redemption amount as temporary equity, outside of the stockholders’ equity (deficit) section of the Company’s condensed balance sheet. The Company did not have any Class A common stock subject to possible redemption at December 31, 2020. As part of the revision of its financial statements (discussed in Note 3), the Company has classified all of its shares of Class A common stock as redeemable. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount. The change in the carrying value of redeemable shares of Class A common stock resulted in charges against additional paid-in capital and accumulated deficit. The Class A common stock subject to possible redemption reflected on the balance sheet as of September 30, 2021 is reconciled in the following table: Gross proceeds $ 345,000,000 Less: Proceeds allocated to public warrants (8,901,000 ) Class A common stock offering costs (18,337,669 ) Plus: Accretion of carrying value to redemption amount 27,238,669 Class A common stock subject to possible redemption $ 345,000,000 |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, Income Taxes ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s currently taxable income primarily consists of interest income on funds held in the Trust Account less any franchise taxes. The Company’s general and administrative costs are generally considered start-up costs and are not currently deductible. During the three and nine months ended September 30, 2021, the Company recorded no income tax expense. The Company’s effective tax rate for the three and nine months ended September 30, 2021, was 0%, which differs from the expected income tax rate primarily due to the recognition of gain or loss from the change in the fair value of warrant liabilities, which is not recognized for tax purposes, and recording a full valuation allowance on the Company’s deferred tax assets as of September 30, 2021. |
Net Income per Common Share | Net Income per Common Share Net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding for the period. The Company has not considered the effect of warrants sold in the Initial Public Offering and the Private Placement to purchase 12,833,333 shares of Class A common stock in the calculation of diluted net income per share, since the average market price of the Company’s Class A common stock for the three and nine months ended September 30, 2021 was below the warrants’ $11.50 exercise price and the exercise of the warrants is contingent upon the occurrence of future events. As a result, diluted net income per common share is the same as basic net income per common share for the periods presented. The Company has two classes of common shares, which are referred to as Class A common stock and Class B common stock. Income and losses are shared pro rata between the two classes of common shares as long as a business combination is consummated. Accretion associated with the redeemable shares of Class A common stock is excluded from net income per share as the redemption amount approximates fair value. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net income per share for each class of common stock (in dollars, except share amounts): Three Months Ended Nine Months Ended Class A Class B Class A Class B Basic and diluted net income per common share: Numerator: Allocation of net income $ 7,409,558 $ 1,852,389 $ 4,224,608 $ 1,328,707 Denominator: Basic and diluted weighted average common shares outstanding 34,500,000 8,625,000 27,423,077 8,625,000 Basic and diluted net income per common share $ 0.21 $ 0.21 $ 0.15 $ 0.15 |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. |
Financial Instruments | Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, Fair Value Measurements and Disclosures |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the FASB issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) ASU 2020-06 are effective for the Company beginning on January 1, 2024 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently evaluating the impact of this standard on its financial statements but does not expect the adoption of ASU 2020-06 will have a material effect on its financial statements. The Company’s management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of common stock subject to possible redemption | Gross proceeds $ 345,000,000 Less: Proceeds allocated to public warrants (8,901,000 ) Class A common stock offering costs (18,337,669 ) Plus: Accretion of carrying value to redemption amount 27,238,669 Class A common stock subject to possible redemption $ 345,000,000 |
Schedule of basic and diluted net income per share for each class of common stock | Three Months Ended Nine Months Ended Class A Class B Class A Class B Basic and diluted net income per common share: Numerator: Allocation of net income $ 7,409,558 $ 1,852,389 $ 4,224,608 $ 1,328,707 Denominator: Basic and diluted weighted average common shares outstanding 34,500,000 8,625,000 27,423,077 8,625,000 Basic and diluted net income per common share $ 0.21 $ 0.21 $ 0.15 $ 0.15 |
Revision of Previously Issued_2
Revision of Previously Issued Financial Statement (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revision of Previously Issued Financial Statement [Abstract] | |
Schedule of the effect of the revision | As Revision As Revised Balance Sheet as of February 26, 2021 (in dollars, except share amounts) Class A common stock subject to possible redemption $ 312,303,500 $ 32,696,500 $ 345,000,000 Class A common stock 327 (327 ) - Additional paid-in capital 5,501,637 (5,501,637 ) - Accumulated deficit (502,822 ) (27,194,536 ) (27,697,358 ) Total stockholders’ equity (deficit) 5,000,005 (32,696,500 ) (27,696,495 ) Number of Class A common shares subject to redemption 33,010,450 1,489,550 34,500,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy | September 30, Description Level 2021 Assets: Marketable securities held in Trust Account - U.S. Treasury Securities Money Market Fund 1 $ 345,023,876 Liabilities: Warrant liabilities - Public Warrants 1 $ 5,589,000 Warrant liabilities - Private Placement Warrants 3 5,518,000 Total warrant liabilities $ 11,107,000 |
Schedule of Monte Carlo simulation model for the private placement warrants | September 30, Input 2021 Risk-free interest rate 1.05 % Expected term (years) 5 Expected volatility 21.00 % Exercise price $ 11.50 Stock price $ 9.77 |
Schedule of changes in the fair value of warrant liabilities | Warrant Liabilities Initial measurement on February 26, 2021 $ 17,801,000 Change in fair value of warrant liabilities 2,667,333 Fair value as of March 31, 2021 20,468,333 Transfers out of Level 3 (8,970,000 ) Change in fair value of warrant liabilities (1,530,334 ) Fair value as of June 30, 2021 9,967,999 Change in fair value of warrant liabilities (4,449,999 ) Fair value as of September 30, 2021 $ 5,518,000 |
Description of Organization, _2
Description of Organization, Business Operations and Basis of Presentation (Details) - USD ($) | Feb. 26, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Description of Organization, Business Operations and Basis of Presentation (Textual) | |||
Per unit price | $ 10 | ||
Gross proceeds (in Dollars) | $ 345,000,000 | ||
Deferred underwriting commissions (in Dollars) | $ 11,800,000 | ||
Initial public offering, total (in Dollars) | $ 345,000,000 | ||
Initial public offering, per share | $ 10 | ||
Maximum term of Investments in Trust Account | 185 days | ||
Business combination of owns or acquires of the voting | 50.00% | ||
Tangible assets required to proceed with business combination net (in Dollars) | $ 5,000,000 | ||
Percentage of shares to shares outstanding | 20.00% | ||
Obligation to redeem percentage | 100.00% | ||
Maximum net interest to pay dissolution expenses (in Dollars) | $ 100,000 | ||
Price per share for distribution of remaining residual assets | $ 10 | ||
Price per public share due to reductions in trust assets | $ 10 | ||
Minimum [Member] | |||
Description of Organization, Business Operations and Basis of Presentation (Textual) | |||
Tangible assets required to proceed with business combination net (in Dollars) | $ 5,000,001 | ||
Initial Public Offering [Member] | |||
Description of Organization, Business Operations and Basis of Presentation (Textual) | |||
Number of units issued (in Shares) | 34,500,000 | ||
Private Placement [Member] | |||
Description of Organization, Business Operations and Basis of Presentation (Textual) | |||
Warrants issued (in Shares) | 5,933,333 | 5,933,333 | |
Price per warrants issued | $ 1.5 | ||
Gross proceeds (in Dollars) | $ 8,900,000 | ||
Per share price | $ 10 | ||
Class A Common Stock [Member] | |||
Description of Organization, Business Operations and Basis of Presentation (Textual) | |||
Offering costs (in Dollars) | $ (18,337,669) | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Tangible assets required to proceed with business combination net (in Dollars) | $ 5,000,001 | ||
Class A Common Stock [Member] | Initial Public Offering [Member] | |||
Description of Organization, Business Operations and Basis of Presentation (Textual) | |||
Number of units issued (in Shares) | 34,500,000 | ||
Per unit price | $ 10 | ||
Gross proceeds (in Dollars) | $ 345,000,000 | ||
Offering costs (in Dollars) | 18,800,000 | ||
Deferred underwriting commissions (in Dollars) | $ 11,800,000 | ||
Per share price | $ 11.5 | ||
Class A Common Stock [Member] | Over-Allotment Option [Member] | |||
Description of Organization, Business Operations and Basis of Presentation (Textual) | |||
Number of units issued (in Shares) | 4,500,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies (Textual) | |||
Cash | $ 1,000,000 | $ 1,000,000 | |
Working capital | $ 1,200,000 | 1,200,000 | |
Sponsor payment | $ 25,000 | ||
Subject to possible redemption (in Shares) | 34,500,000 | 34,500,000 | 0 |
Income tax rate | 0.00% | 0.00% | |
Number of common stock shares purchase by warrant | $ 12,833,333 | ||
Warrants exercise price (in Dollars per share) | $ 11.5 | $ 11.5 | |
Federal deposit insurance corporation coverage | $ 250,000 | $ 250,000 | |
Initial Public Offering [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Warrant liability offering costs | 500,000 | ||
Over-Allotment Option [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Offering cost | 18,300,000 | 18,300,000 | |
Class A Common Stock [Member] | Initial Public Offering [Member] | |||
Summary of Significant Accounting Policies (Textual) | |||
Offering cost | $ 18,800,000 | $ 18,800,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of common stock subject to possible redemption - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Gross proceeds | $ 345,000,000 | |
Less: | ||
Proceeds allocated to public warrants | (8,901,000) | |
Plus: | ||
Accretion of carrying value to redemption amount | 27,238,669 | |
Class A common stock subject to possible redemption | 345,000,000 | |
Class A Common Stock [Member] | ||
Less: | ||
Class A common stock offering costs | $ (18,337,669) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net income per share for each class of common stock - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Class A [Member] | ||
Numerator: | ||
Allocation of net income | $ 7,409,558 | $ 4,224,608 |
Denominator: | ||
Basic and diluted weighted average common shares outstanding | 34,500,000 | 27,423,077 |
Basic and diluted net income per common share | $ 0.21 | $ 0.15 |
Class B [Member] | ||
Numerator: | ||
Allocation of net income | $ 1,852,389 | $ 1,328,707 |
Denominator: | ||
Basic and diluted weighted average common shares outstanding | 8,625,000 | 8,625,000 |
Basic and diluted net income per common share | $ 0.21 | $ 0.15 |
Revision of Previously Issued_3
Revision of Previously Issued Financial Statement (Details) | Sep. 30, 2021USD ($) |
Revision of Previously Issued Financial Statement (Details) [Line Items] | |
Tangible assets required to proceed with business combination net | $ 5,000,000 |
Common Stock [Member] | |
Revision of Previously Issued Financial Statement (Details) [Line Items] | |
Tangible assets required to proceed with business combination net | 5,000,000 |
Class A Common Stock [Member] | |
Revision of Previously Issued Financial Statement (Details) [Line Items] | |
Tangible assets required to proceed with business combination net | $ 5,000,001 |
Revision of Previously Issued_4
Revision of Previously Issued Financial Statement (Details) - Schedule of the effect of the revision | Feb. 26, 2021USD ($)shares |
As Previously Reported [Member] | |
Class A common stock subject to possible redemption | $ 312,303,500 |
Class A common stock | 327 |
Additional paid-in capital | 5,501,637 |
Accumulated deficit | (502,822) |
Total stockholders’ equity (deficit) | $ 5,000,005 |
Number of Class A common shares subject to redemption (in Shares) | shares | 33,010,450 |
Revision Adjustments [Member] | |
Class A common stock subject to possible redemption | $ 32,696,500 |
Class A common stock | (327) |
Additional paid-in capital | (5,501,637) |
Accumulated deficit | (27,194,536) |
Total stockholders’ equity (deficit) | $ (32,696,500) |
Number of Class A common shares subject to redemption (in Shares) | shares | 1,489,550 |
As Revised [Member] | |
Class A common stock subject to possible redemption | $ 345,000,000 |
Class A common stock | |
Additional paid-in capital | |
Accumulated deficit | (27,697,358) |
Total stockholders’ equity (deficit) | $ (27,696,495) |
Number of Class A common shares subject to redemption (in Shares) | shares | 34,500,000 |
Initial Public Offering (Detail
Initial Public Offering (Details) - USD ($) | Feb. 26, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Initial Public Offering (Textual) | |||
Deferred underwriting commissions (in Dollars) | $ 11,800,000 | ||
Aggregate number of units purchased | 400,000 | ||
Initial public offering shares to be voted | 12,537,501 | ||
Percentage of shares | 36.30% | ||
Public shares sold | 34,500,000 | ||
Initial Public Offering [Member] | |||
Initial Public Offering (Textual) | |||
Sale of units | 34,500,000 | ||
Sale of stock per share (in Dollars per share) | $ 10 | ||
Gross proceeds (in Dollars) | $ 345,000,000 | ||
Class A Common Stock [Member] | |||
Initial Public Offering (Textual) | |||
Offering costs (in Dollars) | $ (18,337,669) | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Class A Common Stock [Member] | Initial Public Offering [Member] | |||
Initial Public Offering (Textual) | |||
Sale of units | 34,500,000 | ||
Offering costs (in Dollars) | $ 18,800,000 | ||
Deferred underwriting commissions (in Dollars) | $ 11,800,000 | ||
Shares issued price per share (in Dollars per share) | $ 11.5 |
Private Placement (Details)
Private Placement (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 26, 2021 | Sep. 30, 2021 |
Private Placement [Member] | ||
Private Placement (Textual) | ||
Warrants issued (in Shares) | 5,933,333 | 5,933,333 |
Price per warrants issued | $ 1.5 | |
Gross proceeds (in Dollars) | $ 8.9 | |
Warrant exercisable price per share | $ 11.5 | |
Class A Common Stock [Member] | ||
Private Placement (Textual) | ||
Minimum warrants price redemption in cash per share | 10 | |
Maximum warrants price redemption in cash per share | $ 18 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Feb. 08, 2021 | Feb. 03, 2021 | Feb. 23, 2021 | Oct. 20, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Related Party Transactions (Textual) | |||||||
Cost of founders shares | $ 25,000 | ||||||
Share stock dividend (in Shares) | 312,500 | ||||||
Common stock split | the Company effected a 1.0541667-for-1 common stock split | the Company effected a 1.0909091-for-1 common stock split, resulting in an aggregate of 8,625,000 shares of Class B common stock outstanding. | |||||
Related party transaction, description | The sponsor transferred 40,250 Founder Shares to each of Wayne Perry, Dennis Weibling and Cathleen A. Massey, independent director nominees; 195,500 Founder Shares to Craig O. McCaw, director and Chief Executive Officer; 115,000 Founder Shares to Randy Russell, Chief Investment Officer; 97,750 Founder Shares to R. Gerard Salemme, director; 57,500 Founder Shares to Steve Ednie, Chief Financial Officer; and 329,648 Founder Shares to other directors, officers, employees, consultants and affiliates of Pendrell, in each case for approximately the same per-share price initially paid by the sponsor, resulting in the sponsor holding 7,708,852 Founder Shares. The Founder Shares, on an as-converted basis, represent 20.0% of the Company’s issued and outstanding shares. | ||||||
Business combination capital stock exchange other transaction, description | (i) one year after the completion of the initial Business Combination and (ii) the date following the completion of the initial Business Combination on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the Company’s stockholders having the right to exchange their common stock for cash, securities or other property. Notwithstanding the foregoing, if the closing price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination or (2) if the Company consummates a transaction after the initial Business Combination which results in the stockholders having the right to exchange their shares for cash, securities or other property, the Founder Shares will be released from the lock-up. | ||||||
Loan amount | 300,000 | $ 18,143 | |||||
Offering proceeds designed for payment of offering expenses | 1,000,000 | ||||||
Working capital loans | $ 1,500,000 | ||||||
Price per warrant (in Dollars per share) | $ 1.5 | ||||||
Administrative service fees per month | $ 10,000 | ||||||
Services and fees | $ 30,000 | $ 71,786 | |||||
Class B Common Stock [Member] | |||||||
Related Party Transactions (Textual) | |||||||
Common stock exchange for issuance shares (in Shares) | 7,187,500 | ||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||
Share stock dividend (in Shares) | 312,500 | ||||||
Common stock outstanding (in Shares) | 8,625,000 | 8,625,000 | 8,625,000 | 8,625,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies (Textual) | |
Underwriting agreement description | The underwriters received an underwriting discount of $0.20 per unit (excluding the 400,000 units purchased by Pendrell and an affiliate of Craig McCaw as well as 517,500 shares purchased by certain other parties (total of 917,500 shares) with respect to which no underwriting discount is payable), or $6,716,500 in the aggregate, upon the closing of the Initial Public Offering. $0.35 per unit (excluding the 400,000 units purchased by Pendrell and an affiliate of Craig McCaw as well as 517,500 shares purchased by certain other parties (total of 917,500 shares) with respect to which no underwriting discount is payable), or $11,753,875 in the aggregate will be payable to the underwriters for deferred underwriting commissions. 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. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Details) - $ / shares | Feb. 08, 2021 | Feb. 03, 2021 | Feb. 23, 2021 | Sep. 30, 2021 | Feb. 26, 2021 | Dec. 31, 2020 | Oct. 31, 2020 | Oct. 20, 2020 |
Stockholders’ Equity (Textual) | ||||||||
Subject to possible redemption, share | 34,500,000 | 0 | ||||||
Stock dividends, shares | 312,500 | |||||||
Common stock split | the Company effected a 1.0541667-for-1 common stock split | the Company effected a 1.0909091-for-1 common stock split, resulting in an aggregate of 8,625,000 shares of Class B common stock outstanding. | ||||||
Percentage of number of shares | 20.00% | |||||||
Preferred stock, authorized shares | 1,000,000 | 1,000,000 | ||||||
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||||||
Preferred stock, shares issued | 0 | 0 | ||||||
Preferred stock, shares outstanding | 0 | 0 | ||||||
Class A Common Stock [Member] | ||||||||
Stockholders’ Equity (Textual) | ||||||||
Common stock, shares authorized to issue | 200,000,000 | 200,000,000 | ||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock, shares issued | 0 | 0 | ||||||
Common stock, shares outstanding | 0 | 0 | ||||||
Class B Common Stock [Member] | ||||||||
Stockholders’ Equity (Textual) | ||||||||
Common stock, shares authorized to issue | 20,000,000 | 20,000,000 | ||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Common stock, shares issued | 8,625,000 | 8,625,000 | 7,187,500 | |||||
Common stock, shares outstanding | 8,625,000 | 8,625,000 | 8,625,000 | |||||
Stock dividends, shares | 312,500 |
Warrant Liabilities (Details)
Warrant Liabilities (Details) | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Warrant Liabilities (Details) [Line Items] | |
Warrant exercise period under condition one | 30 days |
Warrant exercise period under condition two | 12 months |
Maximum period after business combination in which to file registration statement | 15 |
Warrant expiration | 5 years |
Common stock, description | If (x) the Company issues additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the initial stockholders or their affiliates, without taking into account any Founder Shares held by the initial stockholders or such affiliates, as applicable, prior to such issuance), (y) the aggregate gross proceeds from such issuances represent more than 50% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Class A common stock during the 10 trading day period starting on the trading day after the day on which the Company consummates the initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the Public Warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price of the Public Warrants will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price. |
Description of private placement warrants and the public warrants for redemption | The Company may call both the Private Placement Warrants and the Public Warrants for redemption: ● in whole and not in part; ● at a price of $0.10 per warrant; ● upon a minimum of 30 days’ prior written notice of redemption; and ● if, and only if, (i) there is an effective registration statement covering the Class A common stock issuable upon exercise of the warrants, and a current prospectus relating thereto, available throughout the 30-day redemption period, and (ii) the last reported sales price of the Class A common stock reported has been at least $10.00 per share on the trading day prior to the date on which notice of the redemption is given. During this 30-day redemption period in connection with a redemption of warrants when the price of the Class A common stock is at least $10.00 per share and no more than $18.00 per share, the holders of the warrants may elect to receive, in lieu of the redemption price, a number of shares of Class A common stock per warrant determined by reference to the table as set forth in the warrant agreement. |
Warrant [Member] | |
Warrant Liabilities (Details) [Line Items] | |
Public warrants for redemption, description | The Company may call only the Public Warrants for redemption: ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon a minimum of 30 days’ prior written notice of redemption; and ●if, and only if, (i) the warrants are currently exercisable, (ii) there is an effective registration statement covering the Class A common stock issuable upon exercise of the warrants and (iii) the last sales price of the Class A common stock equals or exceeds $18.00 per share on each of 20 trading days within the 30-trading day period ending on the third business day prior to the date on which the Company sends the notice of redemption to the warrant holders. |
Class A Common Stock [Member] | Minimum [Member] | |
Warrant Liabilities (Details) [Line Items] | |
Warrant exercise price per share | $ 10 |
Class A Common Stock [Member] | Maximum [Member] | |
Warrant Liabilities (Details) [Line Items] | |
Warrant exercise price per share | $ 18 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Feb. 26, 2021 | |
Fair Value Liabilities Measured on Recurring Basis [Line Items] | |||
Trust account | $ 345,023,876 | $ 345,023,876 | |
Fair value of the warrant liabilities | 11,107,000 | 11,107,000 | |
Change in fair value of warrant liabilities | $ (9,486,999) | $ (6,694,000) | |
Public Warrants [Member] | |||
Fair Value Liabilities Measured on Recurring Basis [Line Items] | |||
Warrants outstanding (in Shares) | 6,900,000 | 6,900,000 | |
Fair value of the warrant liabilities | $ 11,100,000 | $ 11,100,000 | $ 17,800,000 |
Change in fair value of warrant liabilities | $ (6,700,000) | ||
Private Placement [Member] | |||
Fair Value Liabilities Measured on Recurring Basis [Line Items] | |||
Warrants outstanding (in Shares) | 5,933,333 | 5,933,333 | 5,933,333 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of fair value hierarchy | Sep. 30, 2021USD ($) |
Assets: | |
Marketable securities held in Trust Account - U.S. Treasury Securities Money Market Fund | $ 345,023,876 |
Liabilities: | |
Total warrant liabilities | 11,107,000 |
Level 1 [Member] | U.S. Treasury Securities Money Market Fund [Member] | |
Assets: | |
Marketable securities held in Trust Account - U.S. Treasury Securities Money Market Fund | 345,023,876 |
Public Warrants [Member] | Level 1 [Member] | |
Liabilities: | |
Total warrant liabilities | 5,589,000 |
Private Placement Warrants [Member] | Level 3 [Member] | |
Liabilities: | |
Total warrant liabilities | $ 5,518,000 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Schedule of Monte Carlo simulation model for the private placement warrants | 9 Months Ended |
Sep. 30, 2021$ / shares | |
Risk-free interest rate [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk-free interest rate | 1.05% |
Expected term [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Expected term (years) | 5 years |
Expected volatility [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Risk-free interest rate | 21.00% |
Exercise price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Exercise price | $ 11.5 |
Stock price [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Stock price | $ 9.77 |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details) - Schedule of changes in the fair value of warrant liabilities - Warrants [Member] - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Initial measurement on February 26, 2021 | $ 17,801,000 | $ 9,967,999 | $ 20,468,333 |
Transfers out of Level 3 | (8,970,000) | ||
Change in fair value of warrant liabilities | 2,667,333 | (4,449,999) | (1,530,334) |
Fair value | $ 20,468,333 | $ 5,518,000 | $ 9,967,999 |