Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 12, 2022 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Entity Registrant Name | Landcadia Holdings IV, Inc. | |
Entity File Number | 001-40283 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-1889525 | |
Entity Address, Address Line One | 1510 West Loop South | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77027 | |
City Area Code | 713 | |
Local Phone Number | 850-1010 | |
Entity Central Index Key | 0001844642 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | true | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Units, each consisting of one share of Class A common stock and one-fourth of one redeemable warrant | ||
Document and Entity Information | ||
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Units, each consisting of one share of Class A common stock and one-fourth of one redeemable warrant | |
Trading Symbol | LCAHU | |
Class A common stock | ||
Document and Entity Information | ||
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | LCA | |
Entity Common Stock, Shares Outstanding | 50,000,000 | |
Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | ||
Document and Entity Information | ||
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of Class A common stock, each at an exercise price of $11.50 per share | |
Trading Symbol | LCAHW | |
Class B common stock | ||
Document and Entity Information | ||
Entity Common Stock, Shares Outstanding | 12,500,000 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 154,504 | $ 41,301 |
Prepaid expenses | 624,605 | 1,044,879 |
Total current assets | 779,109 | 1,086,180 |
Cash, marketable securities and accrued interest held in trust account | 500,762,233 | 500,031,065 |
Deferred tax asset | 230,994 | 0 |
Total assets | 501,772,336 | 501,117,245 |
Current liabilities: | ||
Accounts payable and accrued liabilities | 568,652 | 707,734 |
Notes payable, affiliates | 1,503,712 | 853,712 |
Income tax payable | 30,923 | 0 |
Total current liabilities | 2,103,287 | 1,561,446 |
Deferred underwriting commissions | 17,500,000 | 17,500,000 |
Warrant derivative liability | 6,666,667 | 21,041,666 |
Total liabilities | 26,269,954 | 40,103,112 |
Commitments | ||
Stockholders' Deficit: | ||
Preferred stock, $0.0001 par value, 1,000,000 authorized, no shares issued or outstanding | 0 | 0 |
Accumulated deficit | (25,204,260) | (38,987,117) |
Total stockholders' deficit | (25,203,010) | (38,985,867) |
Total liabilities and stockholders' deficit | 501,772,336 | 501,117,245 |
Class A common stock | ||
Stockholders' Deficit: | ||
Common stock | 0 | 0 |
Class B common stock | ||
Stockholders' Deficit: | ||
Common stock | 1,250 | 1,250 |
Class A common stock subject to possible redemption | ||
Current liabilities: | ||
Class A common stock subject to possible redemption, 50,000,000 shares at redemption value of $10.01 and $10.00 per share, respectively | $ 500,705,392 | $ 500,000,000 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock authorized | 1,000,000 | 1,000,000 |
Preferred stock issued | 0 | 0 |
Preferred stock outstanding | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.00088 | |
Common stock authorized | 301,000,000 | 301,000,000 |
Class A common stock | ||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized | 240,000,000 | 240,000,000 |
Common stock issued | 0 | 0 |
Common stock outstanding | 0 | 0 |
Class B common stock | ||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock authorized | 60,000,000 | 60,000,000 |
Common stock issued | 12,500,000 | 7,187,500 |
Common stock outstanding | 12,500,000 | 7,187,500 |
Class A common stock subject to possible redemption | ||
Shares subject to possible redemption | 50,000,000 | 50,000,000 |
Shares subject to possible redemption, redemption value per share | $ 10.01 | $ 10 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Expenses: | ||||
General and administrative expenses | $ 462,949 | $ 31,242 | $ 923,136 | $ 1,318,142 |
Loss from operations | (462,949) | (31,242) | (923,136) | (1,318,142) |
Other income (expense): | ||||
Interest income | 828,492 | 15,499 | 836,315 | 15,499 |
Gain on warrant derivative liability | 3,750,000 | 10,916,667 | 14,374,999 | 11,250,000 |
Total income (expense) | 4,578,492 | 10,932,166 | 15,211,314 | 11,265,499 |
Income before taxes | 4,115,543 | 10,900,924 | 14,288,178 | 9,947,357 |
Tax benefit | 200,071 | 0 | 200,071 | 0 |
Net income | 4,315,614 | 10,900,924 | 14,488,249 | 9,947,357 |
Class B common stock | ||||
Other income (expense): | ||||
Net income | $ 863,123 | $ 2,180,185 | $ 2,897,650 | $ 1,989,471 |
Basic and diluted income per share: | ||||
Net income per share, Basic | $ 0.07 | $ 0.17 | $ 0.23 | $ 0.16 |
Net income per share, Diluted | $ 0.07 | $ 0.17 | $ 0.23 | $ 0.16 |
Basic weighted average number of shares outstanding | 12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 |
Diluted weighted average number of shares outstanding | 12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 |
Class A common stock | ||||
Other income (expense): | ||||
Net income | $ 3,452,491 | $ 8,720,739 | $ 11,590,599 | $ 7,957,886 |
Basic and diluted income per share: | ||||
Net income per share, Basic | $ 0.07 | $ 0.17 | $ 0.23 | $ 0.16 |
Net income per share, Diluted | $ 0.07 | $ 0.17 | $ 0.23 | $ 0.16 |
Basic weighted average number of shares outstanding | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
Diluted weighted average number of shares outstanding | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 |
STATEMENTS OF CHANGES IN STOCKH
STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Class A common stock | Class B common stock Common Stock | Class B common stock | Additional paid-in capital | (Accumulated deficit) | Subscription note receivable, affiliates | Total |
Balance at Dec. 31, 2020 | $ 719 | $ 281 | $ 0 | $ (1,000) | $ 0 | ||
Balance (in shares) at Dec. 31, 2020 | 7,187,500 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Class B shares issued | $ 719 | 9,281 | 0 | (10,000) | 0 | ||
Class B shares issued (in shares) | 7,187,500 | ||||||
Payment Of Affiliate Note Receivable | $ 0 | 0 | 0 | 0 | |||
Excess cash received over fair value of sponsor warrants | 0 | 1,333,334 | 0 | 0 | 1,333,334 | ||
Class A shares issued, less fair value of public warrants | 0 | 477,833,333 | 0 | 0 | 477,833,333 | ||
Underwriters commissions and offering costs | 0 | (27,046,310) | 0 | 0 | (27,046,310) | ||
Class A shares subject to redemption | 0 | (452,130,107) | (47,869,893) | 0 | (500,000,000) | ||
Shares forfeited | $ (188) | 188 | 0 | 0 | 0 | ||
Shares forfeited (in shares) | (1,875,000) | ||||||
Net income (loss) | $ 0 | 0 | (953,567) | 0 | (953,567) | ||
Balance at Mar. 31, 2021 | $ 1,250 | 0 | (48,823,460) | (11,000) | (48,833,210) | ||
Balance (in shares) at Mar. 31, 2021 | 12,500,000 | ||||||
Balance at Dec. 31, 2020 | $ 719 | 281 | 0 | (1,000) | 0 | ||
Balance (in shares) at Dec. 31, 2020 | 7,187,500 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ 7,957,886 | $ 1,989,471 | 9,947,357 | ||||
Balance at Jun. 30, 2021 | $ 1,250 | 0 | (38,233,836) | 0 | (38,232,586) | ||
Balance (in shares) at Jun. 30, 2021 | 12,500,000 | ||||||
Balance at Mar. 31, 2021 | $ 1,250 | 0 | (48,823,460) | (11,000) | (48,833,210) | ||
Balance (in shares) at Mar. 31, 2021 | 12,500,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Payment Of Affiliate Note Receivable | $ 0 | 0 | 0 | 11,000 | 11,000 | ||
Underwriters commissions and offering costs | 0 | (311,300) | 0 | 0 | (311,300) | ||
Class A shares subject to redemption | 0 | 311,300 | (311,300) | 0 | 0 | ||
Net income (loss) | 8,720,739 | 0 | 2,180,185 | 0 | 10,900,924 | 0 | 10,900,924 |
Balance at Jun. 30, 2021 | $ 1,250 | 0 | (38,233,836) | 0 | (38,232,586) | ||
Balance (in shares) at Jun. 30, 2021 | 12,500,000 | ||||||
Balance at Dec. 31, 2021 | $ 1,250 | 0 | (38,987,117) | 0 | (38,985,867) | ||
Balance (in shares) at Dec. 31, 2021 | 12,500,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ 0 | 0 | 10,172,635 | 0 | 10,172,635 | ||
Balance at Mar. 31, 2022 | $ 1,250 | 0 | (28,814,482) | 0 | (28,813,232) | ||
Balance (in shares) at Mar. 31, 2022 | 12,500,000 | ||||||
Balance at Dec. 31, 2021 | $ 1,250 | 0 | (38,987,117) | 0 | (38,985,867) | ||
Balance (in shares) at Dec. 31, 2021 | 12,500,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 11,590,599 | 2,897,650 | 14,488,249 | ||||
Balance at Jun. 30, 2022 | $ 1,250 | 0 | (25,204,260) | 0 | (25,203,010) | ||
Balance (in shares) at Jun. 30, 2022 | 12,500,000 | ||||||
Balance at Mar. 31, 2022 | $ 1,250 | 0 | (28,814,482) | 0 | (28,813,232) | ||
Balance (in shares) at Mar. 31, 2022 | 12,500,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | $ 3,452,491 | $ 0 | $ 863,123 | 0 | 4,315,614 | 0 | 4,315,614 |
Remeasurement of class A shares subject to redemption | 0 | 0 | (705,392) | 0 | (705,392) | ||
Balance at Jun. 30, 2022 | $ 1,250 | $ 0 | $ (25,204,260) | $ 0 | $ (25,203,010) | ||
Balance (in shares) at Jun. 30, 2022 | 12,500,000 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 14,488,249 | $ 9,947,357 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Trust account interest income | (836,315) | (15,499) |
Gain on warrant derivative liability | (14,374,999) | (11,250,000) |
Deferred tax benefit | (230,994) | 0 |
Changes in operating assets and liabilities: | ||
Decrease (increase) in prepaid expenses | 420,274 | (1,472,119) |
(Decrease) increase in accounts payable and accrued liabilities | (139,082) | 60,000 |
Increase (decrease) in income taxes payable | 30,923 | 0 |
Net cash used in operating activities | (641,944) | (2,730,261) |
Cash flows from investing activities: | ||
Cash withdrawn from trust account for tax payments | 105,147 | 0 |
Cash deposited in trust account | 0 | (500,000,000) |
Net cash provided by (used) in investing activities | 105,147 | (500,000,000) |
Cash flows from financing activities: | ||
Proceeds from public offering | 0 | 500,000,000 |
Proceeds from sale of private placement warrants | 0 | 12,500,000 |
Proceeds from affiliate notes payable | 650,000 | 300,000 |
Payment for underwriting discounts | 0 | (9,057,610) |
Payment of offering costs | 0 | (602,685) |
Payment of offering costs in affiliate notes payable | 0 | (197,315) |
Proceeds from stock subscriptions receivable, affiliates | 0 | 11,000 |
Net cash provided by financing activities | 650,000 | 502,953,390 |
Net increase in cash and cash equivalents | 113,203 | 223,129 |
Cash and cash equivalents at beginning of period | 41,301 | 0 |
Cash and cash equivalents at end of period | 154,504 | 223,129 |
Supplemental schedule of non-cash financing activities: | ||
Initial classification of common shares subject to possible conversion | 0 | 500,000,000 |
Remeasurement of class A common shares subject to redemption | 705,392 | 0 |
Deferred underwriting commissions | 0 | 17,500,000 |
Initial warrant derivative liability | $ 0 | $ 33,333,333 |
Nature of Business
Nature of Business | 6 Months Ended |
Jun. 30, 2022 | |
Nature of Business | |
Nature of Business | 1. Nature of Business Business Landcadia Holdings IV, Inc., (the “Company,” “we,” “us” or “our”), was formed as JFG Holding I LLC, a Delaware limited liability company on August 13, 2020 and converted into a Delaware corporation on January 28, 2021. We consummated an initial public offering (the “Public Offering”) on March 29, 2021. The Company has not had any significant operations to date. The Company was formed to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company has not yet identified a Business Combination for these purposes. There is no assurance that its plans to consummate a Business Combination will be successful or successful within the target business acquisition period. All activity through June 30, 2022 relates to the Company’s formation and Public Offering, which is described below, and identifying a target company for a Business Combination. Sponsors The Company’s sponsors are TJF, LLC (“TJF”) and Jefferies Financial Group Inc. (“JFG” and together with TJF, the “Sponsors”). TJF is wholly owned by Tilman J. Fertitta, the Company’s Co-Chairman and Chief Executive Officer. Going Concern In connection with our assessment of going concern considerations in accordance with the authoritative guidance in Financial Accounting Standard Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that the mandatory liquidation and subsequent dissolution, should the Company be unable to complete a Business Combination before March 29, 2023, raises substantial doubt about its ability to continue as a going concern. If a Business Combination is not consummated by March 29, 2023, there will be a mandatory liquidation and subsequent dissolution. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after March 29, 2023. Financing Prior to the Public Offering, on August 13, 2020, JFG purchased 100% of the membership interest in the Company for $1,000. On January 28, 2021, the Company was converted from a limited liability company to a corporation and issued 5,727,000 shares of Class B common stock, $0.0001 par value (the “Founder Shares”) in lieu of membership rights to its member. Then on February 2, 2021, the Company completed a 1:1.25 stock split of all Founder Shares, resulting in total shares issued and outstanding The Company intends to finance its Business Combination in part with proceeds from its $500,000,000 Public Offering and $12,500,000 private placement (the “Private Placement”) of private placement warrants (the “Sponsor Warrants”). On December 1, 2021, JFG contributed all 6,250,000 Founder Shares and 4,166,666 Sponsor Warrants held by it to Jefferies Group LLC, a wholly-owned subsidiary of JFG. Immediately thereafter, Jefferies Group LLC contributed all 6,250,000 Founder Shares and 4,166,666 Sponsor Warrants to Jefferies US Holdings LLC (“JUSH”), a wholly owned subsidiary of Jefferies Group LLC. As of June 30, 2022, JUSH and TJF each owned 6,250,000 Founder Shares Warrants The registration statement for the Public Offering was declared effective by the U.S. Securities and Exchange Commission (“SEC”) on March 24, 2021. The Company consummated the Public Offering of 50,000,000 units (the “Units”), at $10.00 per Unit on March 29, 2021, generating gross proceeds of $500,000,000. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value (the “Class A common stock”) and one-fourth On May 10, 2021, the Company issued unsecured, convertible promissory notes (the “Convertible Notes”) to both TJF and JFG, pursuant to which the Company could borrow up to $750,000 from each of TJF and JFG, or an aggregate of $1,500,000, for ongoing expenses reasonably related to the business of the Company and the consummation of the Business Combination. On December 1, 2021, JFG assigned all of its rights and obligations under the Convertible Notes to Jefferies Group LLC, and Jefferies Group LLC immediately transferred all of its rights and obligations under the Convertible Notes to JUSH. On July 22, 2022, the Company, TJF and JUSH amended and restated the Convertible Notes to increase the maximum amount the Company may borrow from each of TJF and JUSH from Trust Account The proceeds held in the Trust Account can only be invested in permitted United States “government securities” within the meaning of 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. The Company’s second amended and restated certificate of incorporation (the “Charter”) provides that, other than the withdrawal of interest to pay tax obligations (less up to $100,000 interest to pay dissolution expenses), none of the funds held in the Trust Account will be released until the earliest of: (i) the completion of the Business Combination; (ii) the redemption of any shares of Class A common stock included in the Units sold in the Public Offering (“Public Shares”) properly submitted in connection with a stockholder vote to amend the Charter to modify the substance or timing of the Company’s obligation to redeem 100% of the Public Shares if the Company does not complete the Business Combination by March 29, 2023 (within 24 months from the closing of the Public Offering) or to provide for redemption in connection with a Business Combination; or (iii) the redemption of the Public Shares if the Company is unable to complete the Business Combination by March 29, 2023, subject to applicable law. As of June 30, 2022, total assets held in trust were $500,762,233, which includes $425,693 of accrued interest. Initial Business Combination The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Public Offering and Private Placement, 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 value of the assets held in the Trust Account (excluding deferred underwriting commissions and taxes payable on the interest earned on the Trust Account) at the time of the Company’s signing a definitive agreement in connection with an initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended. The Sponsors, the Company’s officers and directors and JUSH have entered into letter agreements with the Company, pursuant to which they have agreed to (i) waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of the Business Combination, (ii) waive their redemption rights with respect to their Founder Shares and Public Shares held by them in connection with a stockholder vote to approve an amendment to the Charter 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 by March 29, 2023, or to provide for redemption in connection with a Business Combination and (iii) waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares if the Company fails to complete a Business Combination by March 29, 2023, although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if the Company fails to complete a Business Combination within the prescribed time frame; and (iv) vote any Founder Shares held by them and any Public Shares purchased during or after the Public Offering (including in open market and privately-negotiated transactions) in favor of the Business Combination. The Company, after signing a definitive agreement for the Business Combination, will either (i) seek stockholder approval of the Business Combination at a meeting called for such purpose in connection with which public stockholders may seek to redeem their Public Shares, regardless of whether they vote for or against the Business Combination, for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account calculated as of two Notwithstanding the foregoing redemption rights, if the Company seeks stockholder approval of the Business Combination and it does not conduct redemptions in connection with the Business Combination pursuant to the tender offer rules, the Charter 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 Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its Public Shares with respect to more than an aggregate of 15% of the Public Shares, without the Company’s prior consent. The Public Shares have been recorded at their redemption amount and classified as temporary equity (“Redeemable Shares”), in accordance with the FASB Accounting Standards Codification (“ASC”) 480, ‘‘Distinguishing Liabilities from Equity.’’ The amount in the Trust Account was initially $10.00 per Public Share ($500,000,000 held in the Trust Account divided by 50,000,000 Public Shares). See Note 2. The Company will have until March 29, 2023, to complete the Business Combination. If the Company does not complete the Business Combination within this period of time, it shall (i) cease all operations except for the purposes of winding up; (ii) as promptly as reasonably possible, but not more than ten Shares held by them if the Company does not complete the Business Combination within the required time period. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be less than the initial public offering price per Unit in the Public Offering. Pursuant to the letter agreements referenced above, the Sponsors, officers, directors and JUSH agreed that, if the Company submits the Business Combination to the Company’s stockholders for a vote, such parties will vote their Founder Shares and any Public Shares in favor of the Business Combination. Liquidity and Capital Resources As of June 30, 2022, we had an unrestricted balance of $154,504 as well as cash, marketable securities and accrued interest held in the Trust Account of $500,762,233. Our working capital needs will be satisfied through the funds held outside of the Trust Account from the Public Offering and the Private Placement. Interest on funds held in the Trust Account may be used to pay income taxes and franchise taxes, if any. Further, TJF and JUSH have each agreed, pursuant to the A&R Convertible Notes, to loan us up If the Company’s costs of identifying a target business, related due diligence and negotiating a Business Combination are more than have been estimated, the Company may have insufficient funds available to operate its business prior to our initial Business Combination. Moreover, the Company may need to obtain additional financing either to complete its Business Combination or because the Company has become obligated to redeem a significant number of its Public Shares upon completion of its Business Combination, in which case the Company may issue additional securities or incur debt in connection with such Business Combination. The Company has until March 29, 2023, to consummate a Business Combination. It is uncertain that we will be able to consummate a Business Combination by that date. If a Business Combination is not consummated by that date, there will be a mandatory liquidation and subsequent dissolution. Subsequent Events We have evaluated subsequent events and transactions that occurred after the balance sheet date up to the date the financial statements were issued. The Company did not identify any subsequent events that would have required adjustment to or disclosure in the financial statements, other than those included herein. Fiscal Year End The Company has a December 31 fiscal year-end. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation Our accompanying financial statements include the accounts of the Company and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. The interim financial information provided is unaudited, but includes all adjustments which management considers necessary for the fair presentation of the results for these periods. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year period. Use of Estimates The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying financial statements include the valuation of equity instruments recorded as warrant derivative liabilities. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933 (as amended, the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such 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 another public company which is either not an emerging growth company or an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. 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 June 30, 2022 and December 31, 2021. Cash consists of proceeds from the Public Offering and Private Placement held outside of the Trust Account and loans made by the Sponsors and JUSH, and may be used to pay for business, legal and accounting due diligence for the Business Combination and continuing general and administrative expenses. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts with a financial institution which may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and the Company believes that it is not exposed to significant risks on such accounts. Fair Value of Financial Instruments The Company classifies financial instruments under FASB ASC 820, “Fair Value Measurement,” for its financial assets and liabilities that are reported at fair value at each reporting period. Our financial instruments that are subject to fair value measurements consist of cash and marketable securities held in trust and warrant derivative liability. The carrying value of the Company’s cash and cash equivalents, and accrued liabilities, approximates their fair value due to the short-term nature of such instruments. See Note 7 for further information. Prepaid Expenses Prepaid expenses of $624,605 consist of premiums for directors and officers insurance. These premiums will be amortized over the 2-year term of the agreement. Offering Costs Total offering costs were $800,000 and consisted of legal, accounting, and other costs incurred in connection with the formation and preparation of the Public Offering. Underwriting commissions for the Public Offering were $27,500,000, of which $17,500,000 have been deferred until the completion of the Business Combination. Because the Public Warrants have been accounted for as a liability at fair value instead of equity, the Company applied the relative fair value method and allocated $942,390 of offering costs and underwriting commissions to expenses with the remainder charged to additional paid in capital at the closing of the Public Offering. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities are $568,652 and $707,734 as of June 30, 2022 and December 31, 2021, respectively, and primarily consist offering costs related to the Business Combination and directors and officers insurance premiums. Warrant Liabilities In accordance with FASB ASC 815-40, Derivatives and Hedging: Contracts in an Entities Own Equity, entities must consider whether to classify contracts that may be settled in its own stock, such as warrants, as equity of the entity or as an asset or liability. If an event that is not within the entity’s control could require net cash settlement, then the contract should be classified as an asset or a liability rather than as equity. We have determined because the terms of Public Warrants include a provision that entitles all warrantholders to cash for their warrants in the event of a qualifying cash tender offer, while only certain of the holders of the underlying shares of common stock would be entitled to cash, our warrants should be classified as liability measured at fair value, with changes in fair value each period reported in earnings. Volatility in our Common Stock and Public Warrants may result in significant changes in the value of the derivatives and resulting gains and losses on our statement of operations . Income (Loss) Per Common Share Basic income (loss) per common share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period. All shares of Class B common stock are assumed to convert to shares of Class A common stock on a one-for-one basis. For the three and six months ended June 30, 2022 and 2021, the Company did not have any dilutive warrants, securities or other contracts that could, potentially, be exercised or converted into common stock. As a result, diluted loss per common share is the same as basic loss per common share for all periods presented. Further, in accordance with FASB ASC 260, the loss per share calculation reflects the effect of the stock splits as discussed in Note 3 for all periods presented. A reconciliation of net income per common share as adjusted for the portion of income that is attributable to common stock subject to redemption is as follows: Three months ended June 30, 2022 Three months ended June 30, 2021 Class A Class B Class A Class B Net Income $ 3,452,491 $ 863,123 $ 8,720,739 $ 2,180,185 Basic and diluted weighted average number of shares 50,000,000 12,500,000 50,000,000 12,500,000 Basic and diluted income per share $ 0.07 $ 0.07 $ 0.17 $ 0.17 Six months ended June 30, 2022 Six months ended June 30, 2021 Class A Class B Class A Class B Net income $ 11,590,599 $ 2,897,650 $ 7,957,886 $ 1,989,471 Basic and diluted weighted average number of shares 50,000,000 12,500,000 50,000,000 12,500,000 Basic and diluted income per share $ 0.23 $ 0.23 $ 0.16 $ 0.16 Income Taxes The Company complies with the accounting and reporting requirements of FASB ASC, 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. There were no unrecognized tax benefits as of June 30, 2022 and December 31, 2021. FASB 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. No amounts were accrued for the payment of interest and penalties at June 30, 2022 and 2021. 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 has been subject to income tax examinations by major taxing authorities since inception. The effective tax rate was (4.9%) and (1.4%) for the three and six months ended June 30, 2022, respectively, and 0.0% for both the three and six months ended June 30, 2021. The effective tax rate differs from the statutory rate of 21.0% in all periods due to the non-taxable gain on warrant derivative liability and the movement in the valuation allowance against deferred tax assets. In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of a substantial portion of the deferred tax assets and has therefore established a valuation allowance against a substantial portion of its deferred tax assets. Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity | |
Stockholders' Equity | 3. Stockholders’ Equity On August 13, 2020, JFG purchased 100% of the membership interest in the Company for $1,000. On January 28, 2021, the Company was converted from a limited liability company to a corporation and issued 5,727,000 Founder Shares in lieu of membership rights to its member. Then on February 2, 2021, the Company completed a 1:1.25 stock split of all Founder Shares, resulting in total shares issued and outstanding Founder Redeemable Shares All of the 50,000,000 Public Shares sold as part of the Public Offering contain a redemption feature as defined in the Public Offering. In accordance with FASB ASC 480, redemption provisions not solely within the control of the Company require the security to be classified outside of permanent equity. Although, the Company’s second amended and restated certificate of incorporation provides a minimum net tangible asset threshold of $5,000,001, the Company has determined all of the 50,000,000 Public Shares should be included in temporary equity, classified outside of permanent equity, regardless of the minimum net tangible assets required by the Company’s second amended and restated certificate of incorporation. For further information on the Founder Shares, see Note 5. |
Public Offering
Public Offering | 6 Months Ended |
Jun. 30, 2022 | |
Public Offering. | |
Public Offering | 4. Public Offering Public Units In the Public Offering, which closed March 29, 2021, the Company sold 50,000,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value and one-fourth th Each Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share. Each Public Warrant will become exercisable 30 days after the completion of the Business Combination. However, if the Company does not complete the Business Combination on or prior to March 29, 2023, the warrants will expire at the end of such period. If the Company is unable to deliver registered shares of Class A common stock to the holder upon exercise of Public Warrants issued in connection with the Units during the exercise period, there will be no net cash settlement of these Public Warrants and the Public Warrants will expire worthless, unless they may be exercised on a cashless basis in the circumstances described in the warrant agreement. In addition, 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 the 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 Sponsors, JUSH or their affiliates, without taking into account any Founder Shares held by the Sponsors, JUSH or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the Company’s initial Business Combination on the date of the completion of the Company’s initial Business Combination (net of redemptions), and (z) the volume-weighted average trading price of the Class A common stock during the twenty (20) trading-day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the warrants will be adjusted to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price (See “—Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00”) and the $10.00 per share redemption trigger price will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price (See “—Redemption of warrants when the price per share of Class A common stock equals or exceeds $10.00”). Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00 Once the Public Warrants become exercisable, the Company may call the Public Warrants for redemption: (i) in whole and not in part; (ii) at a price of $0.01 per Public Warrant; (iii) upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and (iv) if, and only if, the reported closing price of the Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders. Redemption of warrants when the price per share of Class A common stock equals or exceeds $10.00 Once the warrants become exercisable, the Company may redeem the outstanding warrants for shares of Class A common stock: ● in whole and not in part; ● at $0.10 per warrant upon a minimum of 30 days ’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares of Class A common stock to be determined by reference to an agreed table based on the redemption date and the “fair market value” of the shares of Class A common stock; ● if, and only if, the last reported sale price (the “closing price”) of the Class A common stock equals or exceeds $10.00 per share (as adjusted) for any 20 trading days within the 30 -trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and ● if the closing price of the Class A common stock for any 20 trading days within a 30 -trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders is less than $18.00 per share (as adjusted), the Sponsor Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants, as described above. The “fair market value” of the Class A common stock shall mean the volume weighted average price of the Class A common stock during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of warrants. The Company will provide warrant holders with the final fair market value no later than one business day after the 10-trading day period described above ends. In no event will the warrants be exercisable in connection with this redemption feature for more than 0.361 shares of Class A common stock per warrant (subject to adjustment). Underwriting Commissions The Company paid an underwriting discount of $10,000,000 ($0.20 per Unit sold) to the underwriters at the closing of the Public Offering on March 29, 2021, with an additional fee (“Deferred Discount”) of $17,500,000 ($0.35 per Unit sold) payable upon the Company’s completion of the Business Combination. The Deferred Discount will become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes its Business Combination. See Note 5 for further information on underwriting commissions. |
Commitments and Related Party T
Commitments and Related Party Transactions | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Related Party Transactions | |
Commitments and Related Party Transactions | 5. Commitments and Related Party Transactions Founder Shares The Founder Shares are identical to the Public Shares except that the Founder Shares are subject to certain transfer restrictions and the holders of the Founder Shares will have the right to elect all of the Company’s directors prior to the Business Combination. The Founder Shares will automatically convert into shares of Class A common stock at the time of the Business Combination on a one-for-one basis, subject to adjustment pursuant to certain anti-dilution rights. TJF and JUSH collectively own 20% of the Company’s issued and outstanding shares. An aggregate of 1,875,000 Founder Shares were forfeited because the underwriters did not exercise their over-allotment option. The holders have agreed not to transfer, assign or sell any of their Founder Shares until one year after the completion of the Business Combination, or earlier if, subsequent to the Business Combination, (i) the closing price of the Company’s common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Business Combination or (ii) the date on which the Company completes a liquidation, merger, stock exchange or other similar transaction after the Business Combination that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property (the “Lock Up Period”). The Founder Shares will automatically convert into shares of Class A common stock concurrently with or immediately following the consummation of the 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. In the case that additional shares of Class A common stock or equity-linked securities are issued or deemed issued in connection with the Business Combination, the number of shares of Class A common stock issuable upon conversion of all Founder Shares will equal, in the aggregate, 20% of the total number of all shares of Class A common stock outstanding after such conversion (after giving effect to any redemptions of Public Shares 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 exercisable for or convertible into shares of Class A common stock issued, or to be issued, to any seller in the Business Combination and any private placement-equivalent warrants issued to the Sponsors, officers, directors or JUSH upon conversion of working capital loans; provided that such conversion of Founder Shares will never occur on a less than one-for-one basis. Sponsor Warrants In conjunction with the Public Offering that closed on March 29, 2021, the Sponsors purchased an aggregate of 8,333,333 Sponsor Warrants at a price of $1.50 per warrant ($12,500,000 in the aggregate) in the Private Placement. A portion of the purchase price of the Sponsor Warrants was added to the proceeds from the Public Offering to be held in the Trust Account such that at closing of the Public Offering, $500,000,000 was placed in the Trust Account. On December 1, 2021, JFG contributed all 4,166,666 Sponsor Warrants held by it to Jefferies Group LLC, a wholly-owned subsidiary of JFG. Immediately thereafter, Jefferies Group LLC contributed all 4,166,666 Sponsor Warrants to JUSH, a wholly-owned subsidiary of Jefferies Group LLC. As of June 30, 2022, JUSH and TJF each owned 4,166,666 Sponsor Warrants Each Sponsor Warrant entitles the holder to purchase one share of Class A common stock at $11.50 per share. The Sponsor Warrants (including the Class A common stock issuable upon exercise of the Sponsor Warrants) are not transferable, assignable or salable until 30 days after the completion of the Business Combination and they are non-redeemable so long as they are held by the Sponsors, JUSH or their permitted transferees (except as set forth in Note 3 above in “- Redemption of warrants when the price per share of Class A common stock equals or exceeds $10.00”). If the Sponsor Warrants are held by someone other than the initial purchasers of the Sponsor Warrants, JUSH or their permitted transferees, the Sponsor Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants included in the Units sold in the Public Offering. Otherwise, the Sponsor Warrants have terms and provisions that are identical to those of the Public Warrants except that the Sponsor Warrants may be exercised on a cashless basis. If the Company does not complete the Business Combination, then the proceeds will be part of the liquidating distribution to the public stockholders and the Sponsor Warrants held by TJF and JUSH will expire worthless. Registration Rights The Sponsors, JUSH and their permitted transferees can demand that the Company register the resale of the Founder Shares, Sponsor Warrants, the shares of Class A common stock issuable upon conversion of the Founder Shares and the exercise of Sponsor Warrants, the warrants that may be issued to them upon conversion of working capital loans (including the A&R Convertible Notes) and the shares of Class A common stock issuable upon exercise of such warrants. These holders will be entitled to make up to three demands, excluding short form registration demands, that the Company register such securities for sale under the Securities Act. In addition, these holders will have ‘‘piggy-back’’ registration rights to include their securities in other registration statements filed by the Company. Notwithstanding the foregoing, JFG and JUSH may not exercise its demand and “piggyback” registration rights after five (5) and seven (7) years, respectively after the effective date of the registration statement relating to the Public Offering and may not exercise its demand rights on more than one occasion. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Commissions Jefferies LLC was the underwriter of the Public Offering, and its indirect parent, JFG, beneficially owns 50.0% of the Founder Shares. Jefferies LLC received all of the underwriting discount that was due at the closing of the Public Offering and will receive the additional Deferred Discount payable from the Trust Account upon completion of the Business Combination. See Note 4 for further information regarding underwriting commissions. Administrative Services Agreement The Company entered into an administrative services agreement in which we will pay Fertitta Entertainment, Inc., (an affiliate of TJF) for office space, secretarial and administrative services provided to members of our management team, in an amount not to exceed $20,000 per month commencing on the date of effectiveness of the Public Offering and ending on the earlier of the completion of a Business Combination or the Company’s liquidation. The Company has recorded administrative services fees of $120,000 and $80,000 as of June 30, 2022 and 2021, respectively. Directors’ Payments We expect to pay $100,000 to each of our independent directors at the closing of a Business Combination for services rendered as board members prior to the completion of a Business Combination. Sponsors’ Indemnification of the Trust Accounts The Sponsors have agreed that they will be jointly and severally liable to the Company if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share or (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, due to reductions in the value of the trust assets, in each case net of the interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriters of the Public Offering against certain liabilities, including liabilities under the Securities Act. Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsors will not be responsible to the extent of any liability for such third party claims. Sponsor Loans On February 5, 2021 the Sponsors agreed to loan the Company up to an aggregate of $300,000 by the issuance of unsecured promissory notes to cover expenses related to the Public Offering. These loans were payable without interest on the earlier of December 31, 2021 or the completion of the Public Offering. These loans of $197,315 were repaid in full in April 2021. On May 10, 2021, the Company issued the Convertible Notes to the Sponsors, pursuant to which the Company could borrow up to $750,000 from each Sponsor, or an aggregate of $1,500,000, for ongoing business expenses and the Business Combination. On December 1, 2021, JFG assigned all of its rights and obligations under the Convertible Notes to Jefferies Group LLC, and Jefferies Group LLC immediately transferred all of its rights and obligations under the Convertible Notes to JUSH. On July 22, 2022, the Company, TJF and JUSH entered into the A&R Convertible Notes to increase the maximum amount the Company may borrow aggregate warrants each |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | 6. Derivative Financial Instruments In accordance with FASB ASC 815-40, Derivatives and Hedging: Contracts in an Entities Own Equity, an entity must consider whether to classify contracts that may be settled in its own stock, such as warrants, as equity of the entity or as an asset or liability. If an event that is not within the entity’s control could require net cash settlement, then the contract should be classified as an asset or a liability rather than as equity. We have determined because the terms of Public Warrants include a provision that entitles all warrantholders to cash for their warrants in the event of a qualifying cash tender offer, while only certain of the holders of the underlying shares of common stock would be entitled to cash, our warrants should be classified as a derivative liability measured at fair value, with changes in fair value each period reported in earnings. Volatility in our Common Stock and Public Warrants may result in significant changes in the value of the derivatives and resulting gains and losses on our statement of operations. In conjunction with our Public Offering, which closed March 29, 2021, the Company sold 50,000,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value and one-fourth Each Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share. Each Public Warrant will become exercisable 30 days after the completion of the Business Combination. However, if the Company does not complete the Business Combination on or prior to March 29, 2023, the warrants will expire at the end of such period. If the Company is unable to deliver registered shares of Class A common stock to a holder upon exercise of Public Warrants issued in connection with the Units during the exercise period, there will be no net cash settlement of these Public Warrants and the Public Warrants will expire worthless, unless they may be exercised on a cashless basis in the circumstances described in the warrant agreement. As of June 30, 2022, the value of our Public Warrants and Sponsor Warrants were $4,000,000 and $2,666,667, respectively. For the three months ended June 30, 2022 and 2021, we recorded gains related to the change in fair value of warrant derivative liability of $3,750,000 and 10,916,667, respectively, in other income and expense on our statement of operations. For the six months ended June 30, 2022 and 2021, we recorded gains related to the change in fair value of warrant derivative liability of $14,374,999 and $11,250,000, respectively, in other income and expense on our statement of operations. For further information on our warrants, see Notes 4 and 5. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 7. Fair Value Measurements Fair value is measured based on an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or liability. Assets and liabilities measured at fair value are based on a market valuation approach using prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. As a basis for considering such assumptions, a three-tiered fair value hierarchy is established, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets that are observable, either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Public Warrants began separate trading on May 17, 2021 and as such have been classified as Level 1 financial instruments. Management determined that the fair value of each Sponsor Warrant is similar to that of a Public Warrant, with an insignificant adjustment for short-term marketability restrictions. Accordingly, the Sponsor Warrants are classified as Level 2 financial instruments. The following table presents the Company’s assets and liabilities that are measured at fair value and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Fair Value measured as of June 30, 2022 Level 1 Level 2 Level 3 Total Cash, marketable securities and accrued interest held in trust $ 500,762,233 $ — $ — $ 500,762,233 Warrant derivative liability Public Warrants $ 4,000,000 $ — $ — $ 4,000,000 Sponsor Warrants — 2,666,667 — 2,666,667 Total Warrant derivative liability $ 4,000,000 $ 2,666,667 $ — $ 6,666,667 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation Our accompanying financial statements include the accounts of the Company and have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC. The interim financial information provided is unaudited, but includes all adjustments which management considers necessary for the fair presentation of the results for these periods. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year period. |
Use of Estimates | Use of Estimates The preparation of these financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the accompanying financial statements include the valuation of equity instruments recorded as warrant derivative liabilities. |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933 (as amended, the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such 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 another public company which is either not an emerging growth company or an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
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 June 30, 2022 and December 31, 2021. Cash consists of proceeds from the Public Offering and Private Placement held outside of the Trust Account and loans made by the Sponsors and JUSH, and may be used to pay for business, legal and accounting due diligence for the Business Combination and continuing general and administrative expenses. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts with a financial institution which may exceed the Federal depository insurance coverage of $250,000. The Company has not experienced losses on these accounts and the Company believes that it is not exposed to significant risks on such accounts. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company classifies financial instruments under FASB ASC 820, “Fair Value Measurement,” for its financial assets and liabilities that are reported at fair value at each reporting period. Our financial instruments that are subject to fair value measurements consist of cash and marketable securities held in trust and warrant derivative liability. The carrying value of the Company’s cash and cash equivalents, and accrued liabilities, approximates their fair value due to the short-term nature of such instruments. See Note 7 for further information. |
Prepaid Expenses | Prepaid Expenses Prepaid expenses of $624,605 consist of premiums for directors and officers insurance. These premiums will be amortized over the 2-year term of the agreement. |
Offering Costs | Offering Costs Total offering costs were $800,000 and consisted of legal, accounting, and other costs incurred in connection with the formation and preparation of the Public Offering. Underwriting commissions for the Public Offering were $27,500,000, of which $17,500,000 have been deferred until the completion of the Business Combination. Because the Public Warrants have been accounted for as a liability at fair value instead of equity, the Company applied the relative fair value method and allocated $942,390 of offering costs and underwriting commissions to expenses with the remainder charged to additional paid in capital at the closing of the Public Offering. |
Accounts Payable and Accrued Liabilities | Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities are $568,652 and $707,734 as of June 30, 2022 and December 31, 2021, respectively, and primarily consist offering costs related to the Business Combination and directors and officers insurance premiums. |
Warrant Liabilities | Warrant Liabilities In accordance with FASB ASC 815-40, Derivatives and Hedging: Contracts in an Entities Own Equity, entities must consider whether to classify contracts that may be settled in its own stock, such as warrants, as equity of the entity or as an asset or liability. If an event that is not within the entity’s control could require net cash settlement, then the contract should be classified as an asset or a liability rather than as equity. We have determined because the terms of Public Warrants include a provision that entitles all warrantholders to cash for their warrants in the event of a qualifying cash tender offer, while only certain of the holders of the underlying shares of common stock would be entitled to cash, our warrants should be classified as liability measured at fair value, with changes in fair value each period reported in earnings. Volatility in our Common Stock and Public Warrants may result in significant changes in the value of the derivatives and resulting gains and losses on our statement of operations . |
Income (Loss) Per Common Share | Income (Loss) Per Common Share Basic income (loss) per common share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period. All shares of Class B common stock are assumed to convert to shares of Class A common stock on a one-for-one basis. For the three and six months ended June 30, 2022 and 2021, the Company did not have any dilutive warrants, securities or other contracts that could, potentially, be exercised or converted into common stock. As a result, diluted loss per common share is the same as basic loss per common share for all periods presented. Further, in accordance with FASB ASC 260, the loss per share calculation reflects the effect of the stock splits as discussed in Note 3 for all periods presented. A reconciliation of net income per common share as adjusted for the portion of income that is attributable to common stock subject to redemption is as follows: Three months ended June 30, 2022 Three months ended June 30, 2021 Class A Class B Class A Class B Net Income $ 3,452,491 $ 863,123 $ 8,720,739 $ 2,180,185 Basic and diluted weighted average number of shares 50,000,000 12,500,000 50,000,000 12,500,000 Basic and diluted income per share $ 0.07 $ 0.07 $ 0.17 $ 0.17 Six months ended June 30, 2022 Six months ended June 30, 2021 Class A Class B Class A Class B Net income $ 11,590,599 $ 2,897,650 $ 7,957,886 $ 1,989,471 Basic and diluted weighted average number of shares 50,000,000 12,500,000 50,000,000 12,500,000 Basic and diluted income per share $ 0.23 $ 0.23 $ 0.16 $ 0.16 |
Income Taxes | Income Taxes The Company complies with the accounting and reporting requirements of FASB ASC, 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. There were no unrecognized tax benefits as of June 30, 2022 and December 31, 2021. FASB 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. No amounts were accrued for the payment of interest and penalties at June 30, 2022 and 2021. 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 has been subject to income tax examinations by major taxing authorities since inception. The effective tax rate was (4.9%) and (1.4%) for the three and six months ended June 30, 2022, respectively, and 0.0% for both the three and six months ended June 30, 2021. The effective tax rate differs from the statutory rate of 21.0% in all periods due to the non-taxable gain on warrant derivative liability and the movement in the valuation allowance against deferred tax assets. In assessing the realization of the deferred tax assets, management considers whether it is more likely than not that some portion of all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences representing net future deductible amounts become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. After consideration of all of the information available, management believes that significant uncertainty exists with respect to future realization of a substantial portion of the deferred tax assets and has therefore established a valuation allowance against a substantial portion of its deferred tax assets. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of net income per common share | Three months ended June 30, 2022 Three months ended June 30, 2021 Class A Class B Class A Class B Net Income $ 3,452,491 $ 863,123 $ 8,720,739 $ 2,180,185 Basic and diluted weighted average number of shares 50,000,000 12,500,000 50,000,000 12,500,000 Basic and diluted income per share $ 0.07 $ 0.07 $ 0.17 $ 0.17 Six months ended June 30, 2022 Six months ended June 30, 2021 Class A Class B Class A Class B Net income $ 11,590,599 $ 2,897,650 $ 7,957,886 $ 1,989,471 Basic and diluted weighted average number of shares 50,000,000 12,500,000 50,000,000 12,500,000 Basic and diluted income per share $ 0.23 $ 0.23 $ 0.16 $ 0.16 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Measurements | |
Schedule of assets and liabilities that are measured at fair value on a recurring basis | Fair Value measured as of June 30, 2022 Level 1 Level 2 Level 3 Total Cash, marketable securities and accrued interest held in trust $ 500,762,233 $ — $ — $ 500,762,233 Warrant derivative liability Public Warrants $ 4,000,000 $ — $ — $ 4,000,000 Sponsor Warrants — 2,666,667 — 2,666,667 Total Warrant derivative liability $ 4,000,000 $ 2,666,667 $ — $ 6,666,667 |
Nature of Business (Details)
Nature of Business (Details) | 6 Months Ended | ||||||||||||
Dec. 01, 2021 shares | Mar. 29, 2021 USD ($) $ / shares shares | Feb. 05, 2021 USD ($) shares | Feb. 02, 2021 shares | Jan. 28, 2021 $ / shares shares | Aug. 13, 2020 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Jul. 31, 2022 USD ($) | Jul. 22, 2022 USD ($) | Dec. 31, 2021 USD ($) $ / shares shares | May 10, 2021 USD ($) $ / shares | Apr. 30, 2021 USD ($) | |
Nature Of Business [Line Items] | |||||||||||||
Threshold business days for redemption of public shares | 10 days | ||||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.00088 | ||||||||||||
Warrant exercise price | $ / shares | $ 11.50 | $ 11.50 | |||||||||||
Maximum amount of interest to pay dissolution expenses | $ | $ 100,000 | ||||||||||||
Redemption of shares calculated based on business days prior to consummation of business combination (in days) | 2 days | ||||||||||||
Total assets held in trust | $ | $ 500,762,233 | $ 500,031,065 | |||||||||||
Accrued interest | $ | $ 425,693 | ||||||||||||
Percentage refers to fair market value of business transaction | 80% | ||||||||||||
Net tangible assets | $ | $ 5,000,001 | ||||||||||||
Percentage refers to redemption of shares if no business combination occurs | 15% | ||||||||||||
Share price | $ / shares | $ 10 | ||||||||||||
Investment held in trust account | $ | $ 500,000,000 | ||||||||||||
Withdrawal of interest to pay dissolution expenses | $ | $ 100,000 | ||||||||||||
Stock split description of founders shares | 1:1.25 | ||||||||||||
Common stock authorized | 301,000,000 | 301,000,000 | |||||||||||
Preferred stock authorized | 1,000,000 | 1,000,000 | |||||||||||
Preferred stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||
Maximum amount of unsecured promissory note outstanding from sponsors | $ | $ 300,000 | $ 1,500,000 | |||||||||||
Warrant Exercise Price For Conversion Of Loan | $ / shares | $ 1.50 | ||||||||||||
Payments of affiliate notes | $ | $ 1,503,712 | $ 853,712 | |||||||||||
Number of shares per warrant | 1 | ||||||||||||
Proceeds from affiliate notes payable | $ | $ 650,000 | $ 300,000 | |||||||||||
Cash | $ | 154,504 | ||||||||||||
Interest Held In The Trust Account | $ | 500,762,233 | ||||||||||||
Capital | $ | $ 11,000 | ||||||||||||
Founders shares | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Stock issued during period, shares | 5,727,000 | ||||||||||||
Common stock issued | 7,187,500 | ||||||||||||
Number of shares forfeited | 1,875,000 | ||||||||||||
Jefferies LLC | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Number of sponsor warrants assigned and transferred | 4,166,666 | ||||||||||||
Jefferies LLC | Founders shares | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Number of sponsor warrants assigned and transferred | 4,166,666 | ||||||||||||
Number Of Founders Shares Assigned And Transferred | 6,250,000 | ||||||||||||
TJF | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Aggregate sponsor warrants | 4,166,666 | ||||||||||||
Additional borrowings from each sponsor under convertible notes | $ | $ 1,000,000 | $ 1,000,000 | |||||||||||
Aggregate amount of additional borrowings under convertible notes | $ | 2,000,000 | ||||||||||||
Amounts outstanding under debt to be converted | $ | $ 1,500,000 | ||||||||||||
Number of sponsor warrants assigned and transferred | 4,166,666 | ||||||||||||
Consideration for acquisition of membership interest | $ | $ 10,000 | ||||||||||||
Maximum amount of loan convertible in to warrants | $ | $ 751,856 | ||||||||||||
TJF | Founders shares | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Consideration for acquisition of membership interest | $ | $ 10,000 | ||||||||||||
Common stock issued | 7,187,500 | ||||||||||||
Common stock outstanding | 6,250,000 | ||||||||||||
Jush | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Aggregate sponsor warrants | 4,166,666 | ||||||||||||
Additional borrowings from each sponsor under convertible notes | $ | 1,000,000 | 1,000,000 | |||||||||||
Aggregate amount of additional borrowings under convertible notes | $ | 2,000,000 | ||||||||||||
Amounts outstanding under debt to be converted | $ | $ 1,500,000 | ||||||||||||
Number of sponsor warrants assigned and transferred | 4,166,666 | ||||||||||||
Maximum amount of loan convertible in to warrants | $ | $ 751,856 | ||||||||||||
Jush | Founders shares | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Number of sponsor warrants assigned and transferred | 4,166,666 | ||||||||||||
Number Of Founders Shares Assigned And Transferred | 6,250,000 | ||||||||||||
Common stock outstanding | 6,250,000 | ||||||||||||
Sponsor | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Maximum amount of loan convertible in to warrants | $ | $ 750,000 | ||||||||||||
Payments of affiliate notes | $ | $ 197,315 | ||||||||||||
TJF And Jush | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Aggregate amount of additional borrowings under convertible notes | $ | $ 2,000,000 | $ 2,000,000 | |||||||||||
Amounts outstanding under debt to be converted | $ | $ 1,500,000 | ||||||||||||
Public Warrants | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Aggregate sponsor warrants | 12,500,000 | ||||||||||||
Class B common stock | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||
Common stock issued | 7,187,500 | 12,500,000 | 7,187,500 | ||||||||||
Common stock outstanding | 7,187,500 | 12,500,000 | 7,187,500 | ||||||||||
Common stock authorized | 60,000,000 | 60,000,000 | |||||||||||
Class B common stock | Founders shares | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | ||||||||||||
Stock issued during period, shares | 5,727,000 | ||||||||||||
Class A common stock | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||||||||||
Warrant Convertible Ratio | 1 | ||||||||||||
Common stock issued | 0 | 0 | |||||||||||
Common stock outstanding | 0 | 0 | |||||||||||
Common stock authorized | 240,000,000 | 240,000,000 | |||||||||||
Number of shares per warrant | 1 | ||||||||||||
Initial Business Combination | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Membership interest acquired | 50% | ||||||||||||
JFG | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Membership interest acquired | 100% | ||||||||||||
Consideration for acquisition of membership interest | $ | $ 1,000 | ||||||||||||
JFG | Class B common stock | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Common stock issued | 7,187,500 | ||||||||||||
Common stock outstanding | 7,187,500 | ||||||||||||
Public Offering | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Proceeds from sale of stock | $ | $ 500,000,000 | ||||||||||||
Number of units issued | shares | 50,000,000 | 50,000,000 | |||||||||||
Price per unit | $ / shares | $ 10 | ||||||||||||
Number of shares in a unit | 1 | ||||||||||||
Warrant Convertible Ratio | 0.25 | 0.25 | |||||||||||
Percentage of public shares redeemed | 100% | ||||||||||||
Private placement | |||||||||||||
Nature Of Business [Line Items] | |||||||||||||
Proceeds from warrants outstanding | $ | $ 12,500,000 | ||||||||||||
Aggregate sponsor warrants | 8,333,333 | ||||||||||||
Warrant exercise price | $ / shares | $ 1.50 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Net Income Per Common Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net income | $ 4,315,614 | $ 10,172,635 | $ 10,900,924 | $ (953,567) | $ 14,488,249 | $ 9,947,357 |
Class A common stock | ||||||
Net income | $ 3,452,491 | $ 8,720,739 | $ 11,590,599 | $ 7,957,886 | ||
Basic weighted average number of shares outstanding | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||
Diluted weighted average number of shares outstanding | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | ||
Basic income per share | $ 0.07 | $ 0.17 | $ 0.23 | $ 0.16 | ||
Diluted income per share | $ 0.07 | $ 0.17 | $ 0.23 | $ 0.16 | ||
Class B common stock | ||||||
Net income | $ 863,123 | $ 2,180,185 | $ 2,897,650 | $ 1,989,471 | ||
Basic weighted average number of shares outstanding | 12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 | ||
Diluted weighted average number of shares outstanding | 12,500,000 | 12,500,000 | 12,500,000 | 12,500,000 | ||
Basic income per share | $ 0.07 | $ 0.17 | $ 0.23 | $ 0.16 | ||
Diluted income per share | $ 0.07 | $ 0.17 | $ 0.23 | $ 0.16 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Operating Loss Carryforwards [Line Items] | |||||
Federal depository insurance coverage | $ 250,000 | $ 250,000 | |||
Prepaid expenses | 624,605 | 624,605 | $ 1,044,879 | ||
Offering Costs | 800,000 | ||||
Underwriting commissions | 27,500,000 | ||||
Deferred underwriters commission | 17,500,000 | 17,500,000 | |||
Accounts payable and accrued liabilities | 568,652 | $ 568,652 | 707,734 | ||
Conversion ratio | 1 | ||||
Offering Costs And Underwriting Commissions | $ 942,390 | ||||
Unrecognized tax benefits | 0 | 0 | 0 | ||
Unrecognized tax benefits, accrued interest and penalties | $ 0 | $ 0 | $ 0 | ||
Effective tax rate | 4.90% | 1.40% | 0% | ||
Statutory income tax rate | 21% | ||||
Deferred tax benefit | $ (230,994) | $ 0 | |||
Tax expense (benefit) | $ (200,071) | $ 0 | (200,071) | $ 0 | |
Directors and officers insurance | |||||
Operating Loss Carryforwards [Line Items] | |||||
Prepaid expenses | $ 624,605 | $ 624,605 | |||
Amortization period of prepaid expenses | 2 years |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 6 Months Ended | |||||||
Dec. 01, 2021 | Mar. 29, 2021 | Feb. 05, 2021 | Feb. 02, 2021 | Jan. 28, 2021 | Aug. 13, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | ||||||||
Stock split description of founders shares | 1:1.25 | |||||||
Common stock authorized | 301,000,000 | 301,000,000 | ||||||
Common stock par value (in dollars per share) | $ 0.00088 | |||||||
Preferred stock authorized | 1,000,000 | 1,000,000 | ||||||
Preferred stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||||
Invested capital | $ 11,000 | |||||||
Net tangible asset threshold | $ 5,000,001 | |||||||
Founders shares | ||||||||
Class of Stock [Line Items] | ||||||||
Stock issued during period, shares | 5,727,000 | |||||||
Common stock issued | 7,187,500 | |||||||
Aggregate forfeited share | 1,875,000 | |||||||
TJF | ||||||||
Class of Stock [Line Items] | ||||||||
Consideration for acquisition of membership interest | $ 10,000 | |||||||
TJF | Founders shares | ||||||||
Class of Stock [Line Items] | ||||||||
Consideration for acquisition of membership interest | $ 10,000 | |||||||
Common stock issued | 7,187,500 | |||||||
Common stock outstanding | 6,250,000 | |||||||
Jefferies LLC | Founders shares | ||||||||
Class of Stock [Line Items] | ||||||||
Number Of Founders Shares Assigned And Transferred | 6,250,000 | |||||||
Jush | Founders shares | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock outstanding | 6,250,000 | |||||||
Number Of Founders Shares Assigned And Transferred | 6,250,000 | |||||||
Public Offering | ||||||||
Class of Stock [Line Items] | ||||||||
Number of units issued | shares | 50,000,000 | 50,000,000 | ||||||
Redeemable Shares outstanding | 50,000,000 | |||||||
JFG | ||||||||
Class of Stock [Line Items] | ||||||||
Membership interest acquired | 100% | |||||||
Consideration for acquisition of membership interest | $ 1,000 | |||||||
Class A common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issued | 0 | 0 | ||||||
Common stock outstanding | 0 | 0 | ||||||
Common stock authorized | 240,000,000 | 240,000,000 | ||||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||||
Class B common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issued | 7,187,500 | 12,500,000 | 7,187,500 | |||||
Common stock outstanding | 7,187,500 | 12,500,000 | 7,187,500 | |||||
Common stock authorized | 60,000,000 | 60,000,000 | ||||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||||||
Class B common stock | Founders shares | ||||||||
Class of Stock [Line Items] | ||||||||
Stock issued during period, shares | 5,727,000 | |||||||
Common stock par value (in dollars per share) | $ 0.0001 | |||||||
Class B common stock | JFG | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock issued | 7,187,500 | |||||||
Common stock outstanding | 7,187,500 |
Public Offering (Details)
Public Offering (Details) | 6 Months Ended | |||
Mar. 29, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) D $ / shares shares | Dec. 31, 2021 $ / shares | May 10, 2021 $ / shares | |
Subsidiary or Equity Method Investee [Line Items] | ||||
Common stock par value (in dollars per share) | $ 0.00088 | |||
Number Of Business Days | 15 days | |||
Number of shares per warrant | shares | 1 | |||
Warrant exercise price | $ 11.50 | $ 11.50 | ||
Warrant exercisable term, after the completion of the Business Combination | 30 days | |||
Warrants redemption description | Warrants for redemption: (i) in whole and not in part; (ii) at a price of $0.01 per Public Warrant; (iii) upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and (iv) if, and only if, the reported closing price of the Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending three business days before the Company sends the notice of redemption to the warrant holders | |||
Closing share price | $ 10 | |||
Underwriting commissions | $ | $ 27,500,000 | |||
Public Warrants | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Issue price per share | shares | 9.20 | |||
Percentage of total equity related to new issuances which would trigger an adjustment in the exercise price of the warrant | 60% | |||
Trading days determining volume weighted average price | 20 days | |||
Adjustment of exercise price of warrants based on market value and newly issued price (as a percent) | 115% | |||
Threshold business days before sending notice of redemption to warrant holders | 10 days | |||
Number of trading days on which fair market value of shares is reported | D | 10 | |||
Fair market value per share | $ 0.361 | |||
Class A common stock | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Common stock par value (in dollars per share) | $ 0.0001 | $ 0.0001 | ||
Number of shares per warrant | shares | 1 | |||
Warrant Convertible Ratio | 1 | |||
Redeemable warrants | Redemption of Warrants When the Price per Share of Class A Common Stock Equals or Exceeds $18.00 | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 | |||
Redeemable warrants | Redemption Of Warrants When Price Per Share Of Class Common Stock Equals Or Exceeds10.00 [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Stock price trigger for redemption of public warrants (in dollars per share) | $ 10 | |||
Redeemable warrants | Public Warrants | Redemption of Warrants When the Price per Share of Class A Common Stock Equals or Exceeds $18.00 | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Threshold trading days for redemption of public warrants | D | 20 | |||
Threshold consecutive trading days for redemption of public warrants | D | 30 | |||
Redeemable warrants | Public Warrants | Redemption Of Warrants When Price Per Share Of Class Common Stock Equals Or Exceeds10.00 [Member] | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Stock price trigger for redemption of public warrants (in dollars per share) | $ 10 | |||
Redemption price per public warrant (in dollars per share) | $ 0.10 | |||
Minimum threshold written notice period for redemption of public warrants | 30 days | |||
Threshold trading days for redemption of public warrants | D | 20 | |||
Threshold consecutive trading days for redemption of public warrants | D | 30 | |||
Public Offering | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Number of units issued | shares | shares | 50,000,000 | 50,000,000 | ||
Price per unit | $ 10 | |||
Number of shares in a unit | shares | 1 | |||
Warrant Convertible Ratio | 0.25 | 0.25 | ||
Underwriting commissions | $ | $ 10,000,000 | |||
Underwriting discount per unit | 0.20 | |||
Additional fee deferred discount | $ | $ 17,500,000 | |||
Additional fee deferred discount per unit | 0.35 | |||
Public Offering | Public Warrants | ||||
Subsidiary or Equity Method Investee [Line Items] | ||||
Adjustment of redemption price of stock based on market value and newly issued price 1 (as a percent) | 180 |
Commitments and Related Party_2
Commitments and Related Party Transactions - Founded shares (Details) - Founders shares | 6 Months Ended |
Jun. 30, 2022 $ / shares shares | |
Related Party Transaction [Line Items] | |
Stock conversion ratio | 1 |
Aggregate forfeited share | shares | 1,875,000 |
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) | $ / shares | $ 12 |
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | 20 days |
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | 30 days |
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences | 150 days |
TJF And Jush | |
Related Party Transaction [Line Items] | |
Percentage of issued and outstanding shares after the Initial Public Offering collectively held by initial stockholders | 20% |
Class A common stock | |
Related Party Transaction [Line Items] | |
Percentage of issued and outstanding shares after the Initial Public Offering collectively held by initial stockholders | 20% |
Commitments and Related Party_3
Commitments and Related Party Transactions (Details) - USD ($) | 6 Months Ended | ||||
Dec. 01, 2021 | Mar. 29, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | May 10, 2021 | |
Related Party Transaction [Line Items] | |||||
Warrant exercise price | $ 11.50 | $ 11.50 | |||
Threshold closing price of common stock | $ 10 | ||||
Threshold trading days for conversion of founders Shares | 30 days | ||||
Redeemable warrants | |||||
Related Party Transaction [Line Items] | |||||
Warrant exercise price | $ 11.50 | ||||
Public Offering | |||||
Related Party Transaction [Line Items] | |||||
Proceeds from sale of stock | $ 500,000,000 | ||||
Private placement | |||||
Related Party Transaction [Line Items] | |||||
Aggregate sponsor warrants | 8,333,333 | ||||
Warrant exercise price | $ 1.50 | ||||
Proceeds from warrants outstanding | $ 12,500,000 | ||||
Founders shares | |||||
Related Party Transaction [Line Items] | |||||
Threshold closing price of common stock | $ 10 | ||||
Founders shares | Jefferies LLC | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage of initial stockholders | 50% | ||||
Fertitta Entertainment, Inc | |||||
Related Party Transaction [Line Items] | |||||
Per month payment for office space, utilities and secretarial and administrative support | $ 20,000 | ||||
Administrative services fees | $ 120,000 | $ 80,000 | |||
Jefferies LLC | |||||
Related Party Transaction [Line Items] | |||||
Number of sponsor warrants assigned and transferred | 4,166,666 | ||||
TJF | |||||
Related Party Transaction [Line Items] | |||||
Aggregate sponsor warrants | 4,166,666 | ||||
Number of sponsor warrants assigned and transferred | 4,166,666 | ||||
Jush | |||||
Related Party Transaction [Line Items] | |||||
Aggregate sponsor warrants | 4,166,666 | ||||
Number of sponsor warrants assigned and transferred | 4,166,666 |
Commitments and Related Party_4
Commitments and Related Party Transactions - Directors' Payments (Details) | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Directors' | |
Related Party Transaction [Line Items] | |
Payments to independent directors | $ 100,000 |
Commitments and Related Party_5
Commitments and Related Party Transactions - Sponsor loans (Details) - USD ($) | 6 Months Ended | ||||||
Jun. 30, 2022 | Jul. 31, 2022 | Jul. 22, 2022 | Dec. 31, 2021 | May 10, 2021 | Apr. 30, 2021 | Feb. 05, 2021 | |
Related Party Transaction [Line Items] | |||||||
Maximum amount of unsecured promissory note outstanding from sponsors | $ 1,500,000 | $ 300,000 | |||||
Payments of affiliate notes | $ 1,503,712 | $ 853,712 | |||||
Warrant exercise price for conversion of loan | $ 1.50 | ||||||
Warrant exercise price | $ 11.50 | $ 11.50 | |||||
Number of shares per warrant | 1 | ||||||
Sponsor | |||||||
Related Party Transaction [Line Items] | |||||||
Payments of affiliate notes | $ 197,315 | ||||||
Maximum amount of loan convertible in to warrants | $ 750,000 | ||||||
TJF | |||||||
Related Party Transaction [Line Items] | |||||||
Additional borrowings from each sponsor under convertible notes | $ 1,000,000 | $ 1,000,000 | |||||
Aggregate amount of additional borrowings under convertible notes | 2,000,000 | ||||||
Amounts outstanding under debt to be converted | $ 1,500,000 | ||||||
Maximum amount of loan convertible in to warrants | 751,856 | ||||||
Jush | |||||||
Related Party Transaction [Line Items] | |||||||
Additional borrowings from each sponsor under convertible notes | $ 1,000,000 | 1,000,000 | |||||
Aggregate amount of additional borrowings under convertible notes | $ 2,000,000 | ||||||
Amounts outstanding under debt to be converted | 1,500,000 | ||||||
Maximum amount of loan convertible in to warrants | $ 751,856 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) | 3 Months Ended | 6 Months Ended | ||||||
Dec. 01, 2021 shares | Mar. 29, 2021 USD ($) $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) $ / shares | May 10, 2021 $ / shares | |
Derivative Financial Instruments | ||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.00088 | $ 0.00088 | ||||||
Warrant exercise price | $ / shares | $ 11.50 | $ 11.50 | $ 11.50 | |||||
Restriction to transfer sponsor warrants | The Sponsor Warrants (including the Class A common stock issuable upon exercise of the Sponsor Warrants) are not transferable, assignable or salable until 30 days after the completion of the Business Combination and they are non-redeemable so long as they are held by the Sponsors, JUSH or their permitted transferees | |||||||
Warrant exercisable term, after the completion of the Business Combination | 30 days | |||||||
Warrant liability | $ | $ 6,666,667 | $ 6,666,667 | $ 21,041,666 | |||||
Change in fair value of warrant derivative liability | $ | $ (3,750,000) | $ (10,916,667) | $ (14,374,999) | $ (11,250,000) | ||||
Jefferies LLC | ||||||||
Derivative Financial Instruments | ||||||||
Number of sponsor warrants assigned and transferred | 4,166,666 | |||||||
TJF | ||||||||
Derivative Financial Instruments | ||||||||
Aggregate warrants | 4,166,666 | 4,166,666 | ||||||
Number of sponsor warrants assigned and transferred | 4,166,666 | |||||||
Jush | ||||||||
Derivative Financial Instruments | ||||||||
Aggregate warrants | 4,166,666 | 4,166,666 | ||||||
Number of sponsor warrants assigned and transferred | 4,166,666 | |||||||
Public Offering | ||||||||
Derivative Financial Instruments | ||||||||
Number of units issued | shares | 50,000,000 | 50,000,000 | ||||||
Price per unit | $ / shares | $ 10 | |||||||
Warrant Convertible Ratio | 0.25 | 0.25 | ||||||
Private placement | ||||||||
Derivative Financial Instruments | ||||||||
Aggregate warrants | 8,333,333 | |||||||
Warrant exercise price | $ / shares | $ 1.50 | |||||||
Proceeds from warrants outstanding | $ | $ 12,500,000 | |||||||
Warrant derivative liability | ||||||||
Derivative Financial Instruments | ||||||||
Change in fair value of warrant derivative liability | $ | $ 3,750,000 | $ 10,916,667 | $ 14,374,999 | $ 11,250,000 | ||||
Class A common stock | ||||||||
Derivative Financial Instruments | ||||||||
Common stock par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |||||
Warrant Convertible Ratio | 1 | |||||||
Public Warrants | ||||||||
Derivative Financial Instruments | ||||||||
Aggregate warrants | 12,500,000 | 12,500,000 | ||||||
Warrant liability | $ | $ 4,000,000 | $ 4,000,000 | ||||||
Sponsor Warrants | ||||||||
Derivative Financial Instruments | ||||||||
Aggregate warrants | 8,333,333 | 8,333,333 | ||||||
Warrant liability | $ | $ 2,666,667 | $ 2,666,667 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value Measurements | ||
Cash, marketable securities and accrued interest held in trust | $ 500,762,233 | |
Warrant derivative liability | 6,666,667 | $ 21,041,666 |
Level 1 | ||
Fair Value Measurements | ||
Cash, marketable securities and accrued interest held in trust | 500,762,233 | |
Warrant derivative liability | 4,000,000 | |
Level 2 | ||
Fair Value Measurements | ||
Cash, marketable securities and accrued interest held in trust | 0 | |
Warrant derivative liability | 2,666,667 | |
Level 3 | ||
Fair Value Measurements | ||
Cash, marketable securities and accrued interest held in trust | 0 | |
Warrant derivative liability | 0 | |
Public Warrants | ||
Fair Value Measurements | ||
Warrant derivative liability | 4,000,000 | |
Public Warrants | Level 1 | ||
Fair Value Measurements | ||
Warrant derivative liability | 4,000,000 | |
Public Warrants | Level 2 | ||
Fair Value Measurements | ||
Warrant derivative liability | 0 | |
Public Warrants | Level 3 | ||
Fair Value Measurements | ||
Warrant derivative liability | 0 | |
Sponsor Warrants | ||
Fair Value Measurements | ||
Warrant derivative liability | 2,666,667 | |
Sponsor Warrants | Level 1 | ||
Fair Value Measurements | ||
Warrant derivative liability | 0 | |
Sponsor Warrants | Level 2 | ||
Fair Value Measurements | ||
Warrant derivative liability | 2,666,667 | |
Sponsor Warrants | Level 3 | ||
Fair Value Measurements | ||
Warrant derivative liability | $ 0 |