Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 09, 2023 | |
Document Information Line Items | ||
Entity Registrant Name | POWER & DIGITAL INFRASTRUCTURE ACQUISITION II CORP. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001855474 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | true | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-41151 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 86-2962208 | |
Entity Address, Address Line One | 321 North Clark Street | |
Entity Address, Address Line Two | Suite 2440 | |
Entity Address, City or Town | Chicago | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60654 | |
City Area Code | (312) | |
Local Phone Number | 262-5642 | |
Entity Interactive Data Current | Yes | |
Units, each consisting of one share of Class A common stock, $0.0001 par value per share, and one-half of one redeemable warrant | ||
Document Information Line Items | ||
Trading Symbol | XPDBU | |
Title of 12(b) Security | Units, each consisting of one share of Class A common stock, $0.0001 par value per share, and one-half of one redeemable warrant | |
Security Exchange Name | NASDAQ | |
Class A common stock included as part of the units | ||
Document Information Line Items | ||
Trading Symbol | XPDB | |
Title of 12(b) Security | Class A common stock included as part of the units | |
Security Exchange Name | NASDAQ | |
Warrants included as part of the units, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 | ||
Document Information Line Items | ||
Trading Symbol | XPDBW | |
Title of 12(b) Security | Warrants included as part of the units, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 | |
Security Exchange Name | NASDAQ | |
Class A Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 10,608,178 | |
Class B Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 7,187,500 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 294,222 | $ 1,287,986 |
Prepaid expenses | 78,997 | 284,405 |
Total current assets | 373,219 | 1,572,391 |
Investments held in Trust Account | 113,045,191 | 294,395,846 |
Total Assets | 113,418,410 | 295,968,237 |
Current liabilities: | ||
Accounts payable | 601,436 | 267,297 |
Accrued expenses | 5,186,485 | 660,491 |
Excise tax payable | 1,881,321 | |
Income tax payable | 235,113 | 802,367 |
Franchise tax payable | 70,000 | 72,289 |
Total current liabilities | 8,274,355 | 1,802,444 |
Deferred underwriting commissions | 6,037,500 | 10,062,500 |
Total Liabilities | 14,311,855 | 11,864,944 |
Commitments and Contingencies | ||
Class A common stock; 10,608,178 shares subject to possible redemption at $10.61 and $10.20 per share as of September 30, 2023 and December 31, 2022, respectively | 112,519,142 | 293,293,429 |
Stockholders’ Deficit: | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | ||
Class A common stock, $0.0001 par value; 500,000,000 shares authorized; no non-redeemable shares issued or outstanding as of September 30, 2023 and December 31, 2022 | ||
Class B common stock, $0.0001 par value; 50,000,000 shares authorized; 7,187,500 shares issued or outstanding as of as of June 30, 2023 and December 31, 2022 | 719 | 719 |
Additional paid-in capital | ||
Accumulated deficit | (13,413,306) | (9,190,855) |
Total stockholders’ deficit | (13,412,587) | (9,190,136) |
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit | 113,418,410 | 295,968,237 |
Related Party | ||
Current liabilities: | ||
Advance from related party | $ 300,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Class A Common Stock | ||
Common stock subject to possible redemption | 10,608,178 | 10,608,178 |
Common stock subject to possible redemption, per share (in Dollars per share) | $ 10.61 | $ 10.2 |
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, non-redeemable shares issued | ||
Common stock, non-redeemable shares outstanding | ||
Class B Common Stock | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 7,187,500 | 7,187,500 |
Common stock, shares outstanding | 7,187,500 | 7,187,500 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
General and administrative expenses | $ 999,207 | $ 161,483 | $ 4,986,130 | $ 693,349 |
Franchise tax expenses | 50,000 | 50,000 | 150,000 | 165,357 |
Loss from operations | (1,109,207) | (271,483) | (5,316,130) | (1,038,706) |
Other income: | ||||
Other income attributable to derecognition of deferred underwriting fee allocated to offering costs | 205,275 | |||
Income from investments held in Trust Account | 1,450,959 | 1,319,402 | 7,719,842 | 1,731,894 |
Total other income | 1,450,959 | 1,319,402 | 7,925,117 | 1,731,894 |
Income before provision for income taxes | 341,752 | 1,047,919 | 2,608,987 | 693,188 |
Provision for income taxes | (294,202) | (266,575) | (1,411,997) | (297,200) |
Net income (loss) | $ 47,550 | $ 781,344 | $ 1,196,990 | $ 395,988 |
Class A Common Stock | ||||
Other income: | ||||
Weighted average shares outstanding, basic (in Shares) | 10,608,178 | 28,750,000 | 21,440,108 | 28,750,000 |
Basic net income per share (in Dollars per share) | $ 0 | $ 0.02 | $ 0.04 | $ 0.01 |
Class B Common Stock | ||||
Other income: | ||||
Weighted average shares outstanding, basic (in Shares) | 7,187,500 | 7,187,500 | 7,187,500 | 7,187,500 |
Basic net income per share (in Dollars per share) | $ 0 | $ 0.02 | $ 0.04 | $ 0.01 |
Related Party | ||||
General and administrative expenses - related party | $ 60,000 | $ 60,000 | $ 180,000 | $ 180,000 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Operations (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class A Common Stock | ||||
Weighted average shares outstanding, diluted | 10,608,178 | 28,750,000 | 21,440,108 | 28,750,000 |
Diluted net income per share | $ 0 | $ 0.02 | $ 0.04 | $ 0.01 |
Class B Common Stock | ||||
Weighted average shares outstanding, diluted | 7,187,500 | 7,187,500 | 7,187,500 | 7,187,500 |
Diluted net income per share | $ 0 | $ 0.02 | $ 0.04 | $ 0.01 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Deficit - USD ($) | Class A Common Stock | Class B Common Stock | Class B | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2021 | $ 719 | $ (8,314,410) | $ (8,313,691) | |||
Balance (in Shares) at Dec. 31, 2021 | 7,187,500 | |||||
Net income (loss) | (425,789) | (425,789) | ||||
Balance at Mar. 31, 2022 | $ 719 | (8,740,199) | (8,739,480) | |||
Balance (in Shares) at Mar. 31, 2022 | 7,187,500 | |||||
Balance at Dec. 31, 2021 | $ 719 | (8,314,410) | (8,313,691) | |||
Balance (in Shares) at Dec. 31, 2021 | 7,187,500 | |||||
Net income (loss) | 395,988 | |||||
Balance at Sep. 30, 2022 | $ 719 | (8,936,459) | (8,935,740) | |||
Balance (in Shares) at Sep. 30, 2022 | 7,187,500 | |||||
Balance at Mar. 31, 2022 | $ 719 | (8,740,199) | (8,739,480) | |||
Balance (in Shares) at Mar. 31, 2022 | 7,187,500 | |||||
Increase in redemption value of Class A common stock subject to possible redemption | (15,210) | (15,210) | ||||
Net income (loss) | 40,433 | 40,433 | ||||
Balance at Jun. 30, 2022 | $ 719 | (8,714,976) | (8,714,257) | |||
Balance (in Shares) at Jun. 30, 2022 | 7,187,500 | |||||
Increase in redemption value of Class A common stock subject to possible redemption | (1,002,827) | (1,002,827) | ||||
Net income (loss) | 781,344 | 781,344 | ||||
Balance at Sep. 30, 2022 | $ 719 | (8,936,459) | (8,935,740) | |||
Balance (in Shares) at Sep. 30, 2022 | 7,187,500 | |||||
Balance at Dec. 31, 2022 | $ 719 | (9,190,855) | (9,190,136) | |||
Balance (in Shares) at Dec. 31, 2022 | 7,187,500 | 7,187,500 | ||||
Increase in redemption value of Class A common stock subject to possible redemption | (2,649,152) | (2,649,152) | ||||
Net income (loss) | 1,301,449 | 1,301,449 | ||||
Balance at Mar. 31, 2023 | $ 719 | (10,538,558) | (10,537,839) | |||
Balance (in Shares) at Mar. 31, 2023 | 7,187,500 | |||||
Balance at Dec. 31, 2022 | $ 719 | (9,190,855) | (9,190,136) | |||
Balance (in Shares) at Dec. 31, 2022 | 7,187,500 | 7,187,500 | ||||
Net income (loss) | 1,196,990 | |||||
Balance at Sep. 30, 2023 | $ 719 | (13,413,306) | (13,412,587) | |||
Balance (in Shares) at Sep. 30, 2023 | 7,187,500 | 7,187,500 | ||||
Balance at Mar. 31, 2023 | $ 719 | (10,538,558) | (10,537,839) | |||
Balance (in Shares) at Mar. 31, 2023 | 7,187,500 | |||||
Increase in redemption value of Class A common stock subject to possible redemption | (2,701,935) | (2,701,935) | ||||
Excise tax payable attributable to redemption of common stock | (1,881,321) | (1,881,321) | ||||
Waived deferred underwriting discount | 3,819,725 | 3,819,725 | ||||
Net income (loss) | (152,009) | (152,009) | ||||
Balance at Jun. 30, 2023 | $ 719 | 1,117,790 | (12,571,888) | (11,453,379) | ||
Balance (in Shares) at Jun. 30, 2023 | 7,187,500 | |||||
Increase in redemption value of Class A common stock subject to possible redemption | (1,117,790) | (888,968) | (2,006,758) | |||
Net income (loss) | 47,550 | 47,550 | ||||
Balance at Sep. 30, 2023 | $ 719 | $ (13,413,306) | $ (13,412,587) | |||
Balance (in Shares) at Sep. 30, 2023 | 7,187,500 | 7,187,500 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities: | ||
Net income | $ 1,196,990 | $ 395,988 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Income from investments held in Trust Account | (7,719,842) | (1,731,894) |
Other income attributable to derecognition of deferred underwriting fee allocated to offering costs | (205,275) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses | 205,408 | 238,026 |
Advance from related party | 300,000 | |
Accounts payable | 334,139 | (925,282) |
Accrued expenses | 4,525,994 | 212,879 |
Income tax payable | (567,254) | 297,200 |
Franchise tax payable | (2,289) | (66,310) |
Net cash used in operating activities | (1,932,129) | (1,579,393) |
Cash Flows from Investing Activities: | ||
Investment income released from Trust Account to pay for taxes | 2,138,365 | |
Cash withdrawn for redemptions | 188,132,132 | |
Extension payments deposited in Trust Account | (1,200,000) | |
Net cash provided by investing activities | 189,070,497 | |
Cash Flows from Financing Activities: | ||
Redemption of common stock | (188,132,132) | |
Net cash used in financing activities | (188,132,132) | |
Net decrease in cash | (993,764) | (1,579,393) |
Cash - beginning of the period | 1,287,986 | 2,844,602 |
Cash - end of the period | 294,222 | 1,265,209 |
Supplemental disclosure of noncash activities: | ||
Remeasurement of Class A common stock subject to possible redemption | 7,357,845 | 1,018,037 |
Excise tax payable attributable to redemption of common stock | 1,881,321 | |
Reversal of transaction costs incurred in connection with IPO | $ 4,025,000 |
Description of Organization, Bu
Description of Organization, Business Operations and Liquidity | 9 Months Ended |
Sep. 30, 2023 | |
Description of Organization, Business Operations and Liquidity [Abstract] | |
DESCRIPTION OF ORGANIZATION, BUSINESS OPERATIONS AND LIQUIDITY | NOTE 1 - DESCRIPTION OF ORGANIZATION, BUSINESS OPERATIONS AND LIQUIDITY Power & Digital Infrastructure Acquisition II Corp. (the “Company”) is a blank check company incorporated in Delaware on March 23, 2021. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses or entities (the “Business Combination”). The Company is an emerging growth company and, as such, the Company is subject to all of the risks associated with emerging growth companies. As of September 30, 2023, the Company had not commenced any operations. All activity for the period from March 23, 2021 (inception) through September 30, 2023 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), as described below, and subsequent to the Initial Public Offering, identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end. The Company’s sponsor is XPDI Sponsor II LLC, a Delaware limited liability company (the “Sponsor”). The registration statement for the Company’s Initial Public Offering was declared effective on December 9, 2021. On December 14, 2021, the Company consummated its Initial Public Offering of 28,750,000 units (the “Units” and, with respect to the Class A common stock, $0.0001 par value per share (“Class A common stock”) included in the Units being offered, the “Public Shares”), which included the exercise of the underwriters’ option to purchase an additional 3,750,000 Units at the initial public offering price to cover over-allotments (the “Over-Allotment Units”), at $10.00 per Unit, generating gross proceeds of $287.5 million, and incurring offering costs of approximately $20.7 million, of which approximately $10.1 million was for deferred underwriting fees (see Note 5). Simultaneously with the closing of the Initial Public Offering, the Company consummated the private placement (“Private Placement”) of 11,125,000 warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”), at a price of $1.00 per Private Placement Warrant to the Sponsor and certain funds and accounts managed by subsidiaries of BlackRock, Inc., an unrelated party (the “Anchor Investors”), generating proceeds of approximately $11.1 million (Note 4). Upon the closing of the Initial Public Offering and the Private Placement, approximately $290.4 million ($10.10 per Unit) of the net proceeds of the sale of the Units in the Initial Public Offering and of the Private Placement Warrants in the Private Placement were placed in a trust account (“Trust Account”) located in the United States with Continental Stock Transfer & Trust Company acting as trustee, and invested only in U.S. “government securities,” within the meaning of Section 2(a)(16) of the Investment Company Act 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, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account as described below. While the Company’s management has broad discretion with respect to the specific application of the cash held outside of the Trust Account, substantially all of the net proceeds from the Initial Public Offering and the sale of the Private Placement Warrants, which are placed in the Trust Account, are intended to be applied generally toward completing a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete one or more initial Business Combinations having an aggregate fair market value of at least 80% of the net assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable by us on the income earned on the trust account) at the time of the agreement to enter into the initial Business Combination. However, the Company only intends to complete a Business Combination if the post-transaction company owns or acquires 50% or more of the issued and outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. The Company will provide the holders (the “Public Stockholders”) of the Company’s Public Shares with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then held in the Trust Account (initially at $10.10 per Public Share). The per-share amount to be distributed to Public Stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 5). All of the Public Shares contain a redemption feature which allows for the redemption of such Public Shares in connection with the liquidation, if there is a stockholder vote or tender offer in connection with the initial Business Combination and in connection with certain amendments to the Amended and Restated Certificate of Incorporation (the “Amended and Restated Certificate of Incorporation”). These Public Shares were recorded at a redemption value and classified as temporary equity in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity” (“ASC 480”). The Company will proceed with a Business Combination if a majority of the shares voted are voted in favor of the Business Combination. If a stockholder vote is not required by law and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation, conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transaction is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem the Public Shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. Additionally, each Public Stockholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction. If the Company seeks stockholder approval in connection with a Business Combination, the initial stockholders (as defined below) agreed to vote their Founder Shares (as defined below in Note 4) and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination. In addition, the initial stockholders agreed to waive their redemption rights with respect to their Founder Shares and Public Shares in connection with the completion of a Business Combination. The Amended and Restated Certificate of Incorporation provides that a Public Stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% of the Public Shares, without the prior consent of the Company. On May 5, 2023, the Company filed a preliminary proxy statement (the “Proxy Statement”) for the solicitation of proxies in connection with the special meeting in lieu of Annual Meeting of the Company’s stockholders (the “Special Meeting”) to consider and vote on, among other proposals, the extension of the date by which the Company must consummate an initial Business Combination from June 14, 2023 (the “Current Outside Date”) to December 14, 2023 (such date, the “Extended Date”), and to allow the Company, without another stockholder vote, by resolution of the Company’s board of directors to elect to further extend the Extended Date in one-month increments up to three additional times, or a total of up to nine months after the Current Outside Date, until March 14, 2024 (the “Combination Period”), unless the closing of a Business Combination shall have occurred prior thereto or such earlier date as determined by our board of directors to be in the best interests of the Company (such proposal, the “Extension Amendment Proposal”), and the amendment of the Company’s amended and restated certificate of incorporation to remove the limitation that the Company may not redeem public shares to the extent that such redemption would result in the Company having net tangible assets (as determined in accordance with Rule 3a51-1(g)(1) of the Exchange Act, as amended, (or any successor rule)) of less than $5,000,001 (such proposal, the “Redemption Limitation Amendment Proposal”). At the Special Meeting on June 9, 2023, the Company’s stockholders approved the Extension Amendment Proposal and the Redemption Limitation Amendment Proposal. In connection with the stockholders’ vote at the Special Meeting, the stockholders elected to redeem 18,141,822 shares of Class A common stock at a redemption price of approximately $10.37 per share, for an aggregate redemption amount of $188,132,132 (the “Redemption”). After the satisfaction of the Redemption, the balance in the Trust Account as of September 30, 2023 was approximately $113,045,191. Upon completion of the Redemption, 10,608,178 shares of Class A common stock and 7,187,500 shares of Class B common stock remain issued and outstanding. In connection with the approval of the Extension Amendment Proposal, the Company or the Sponsor will deposit, beginning on June 15, 2023, and thereafter on the 10th day of each month (or if such 10th day is not a business day, on the business day immediately preceding such 10th day), additional funds into the Trust Account in an amount equal to the lesser of (i) $0.03 multiplied by the number of shares of Class A common stock then outstanding and not redeemed in connection with the Special Meeting and (ii) $300,000. As a result, $300,000 was deposited in the Trust Account by the Company on June 15, 2023, July 10, 2023 and August 10, 2023. On September 8, 2023, October 10, 2023 and November 9, 2023, $300,000 was deposited in the Trust Account by the Sponsor. On August 7, 2023 and September 8, 2023, a previous target of a potential business combination paid the Company $300,000 and $200,000, respectively, as a partial reimbursement of expenses incurred by the Company in connection with due diligence and negotiations and related activities with respect to such potential business combination, which were terminated in March of 2023. If the Company is unable to complete a Business Combination within the Combination Period, as it may be extended, or such later date as approved by holders of a majority of the voting power of the Company’s then outstanding shares of common stock that are voted at a meeting to extend such Combination Period, voting together as a single class, the Company will (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than 10 business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest (less up to $100,000 of interest to pay dissolution expenses and which interest shall be net of taxes payable by us), divided by the number of then issued and outstanding Public Shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any); and (3) as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the Company’s board of directors, liquidate and dissolve, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. The holders of the Founder Shares (the “initial stockholders”) agreed not to propose an amendment to the Amended and Restated Certificate of Incorporation (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with its initial Business Combination or to redeem 100% of the Public Shares if the Company has not consummated an initial Business Combination within the Combination Period or (B) with respect to any other provisions of the Amended and Restated Certificate of Incorporation relating to stockholders’ rights or pre-initial Business Combination activity, unless the Company provides the Public Stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment. The initial stockholders and Anchor Investors agreed to waive their rights to liquidating distributions from the Trust Account with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the initial stockholders and Anchor Investors acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. The underwriters agreed to waive their rights to the deferred underwriting commission (see Note 5) held in the Trust Account in the event the Company does not complete a Business Combination within in the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be only $10.10, or $10.20 or $10.30 per Public Share, as applicable, if the Company extends the period of time the Company will have to complete an initial Business Combination. In order to protect the amounts held in the Trust Account, the Sponsor agreed to be liable to the Company if and to the extent any claims by a third party (except for the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement (a “Target”), reduce the amount of funds in the Trust Account to below (i) $10.10 per Public Share, or $10.20 or $10.30 per public share, as applicable, if the Company extends the period of time it will have to complete an initial Business Combination, or (ii) the lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the Trust assets, in each case net of interest which may be withdrawn to pay taxes, provided that such liability will not apply to any claims by a third party or Target that executed a waiver of any and all rights to seek access to the Trust Account nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). In the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (other than the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Merger Agreement On June 5, 2023, the Company and XPDB Merger Sub, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company (“Merger Sub”), entered into an Agreement and Plan of Merger (as it may be amended, supplemented or otherwise modified from time to time in accordance with its terms, the “Merger Agreement”) with Montana Technologies LLC, a Delaware limited liability company (“Montana”), pursuant to which Merger Sub will merge with and into Montana, with Montana surviving the Merger as a wholly owned subsidiary of the Company (the “Merger” and, along with the transactions contemplated in the Merger Agreement, the “Proposed Transactions”). Following the closing of the Proposed Transactions (the “Closing”), the Company will be renamed “Montana Technologies Corporation” (the “Combined Company”). As part of the Transactions, equity holders of Montana will receive aggregate consideration of approximately $421.9 million (subject to adjustment as described in the Merger Agreement), payable (i) in the case of Class B and holders of Class C common units of Montana (after giving effect to the conversion of all outstanding preferred units of Montana into Class B common units, which conversion will occur prior to the Closing), newly issued shares of Class A common stock, par value $0.0001 per share, of the Combined Company (“Combined Company Class A common stock”), with a value ascribed to each share of Combined Company Class A common stock of $10.00, (ii) in the case of holders of Class A common units of Montana, newly issued shares of Class B common stock, par value $0.0001 per share, of the Combined Company (“Combined Company Class B common stock”), which Combined Company Class B common stock will have a number of votes per share such that the equity holders of Montana as of immediately prior to the Closing will collectively own at least 80% of the voting power of all classes of stock of the Combined Company entitled to vote immediately following the Closing and (iii) in the case of Montana’s option holders and warrant holders, options and warrants of the Combined Company, respectively, having substantially similar terms to the applicable options and warrants of Montana. Montana’s equity holders (other than warrant holders) will also have the opportunity to receive additional equity consideration (in each case, in accordance with their respective pro rata share) in the form of shares of Combined Company Class A common stock with a $10.00 value ascribed to each share (the “Earnout Shares”), only upon full completion of construction and operational viability (including all permitting, regulatory approvals and necessary or useful inspections) of new production capacity of Montana’s key components or assemblies based solely on demand from bona fide customer commitments evidenced by binding contracts (or in the discretion of a majority of the independent members of the board of directors of the Combined Company, a non-binding letter of intent or indication of interest or similar writing that is substantially likely to become a binding contract) with a known price or pricing formula that exceeds a level of production capacity that is expected to generate Annualized EBITDA of more than $150,000,000 (the “Threshold Annualized EBITDA”), which shall be determined by a majority of the independent members of the board of directors of the Combined Company in its sole discretion, equal to (i) the ratio of (x) (1) the Annualized EBITDA that is expected from such new production capacity (the “Expected Annualized EBITDA”) less (2) (A) the Threshold Annualized EBITDA plus (B) all previously Expected Annualized EBITDA amounts associated with previous new production capacities for which previous earnouts were achieved, divided by (y) $150,000,000 multiplied by (ii) $200,000,000, provided that the aggregate Expected Annualized EBITDA may not exceed $300,000,000. The maximum value of the Earnout Shares will be capped at $200 million and the ability to receive Earnout Shares will expire on the fifth anniversary of the Closing. A majority of the independent members of the board of directors of the Combined Company then serving will have sole discretion in determining, among other things, the achievement of the applicable milestones, the calculations of payments of Earnout Shares to the applicable Montana equity holders, the dates on which construction and operational viability of new production capacity is deemed completed and whether to consent to a transfer of the applicable Montana equity holder’s right to receive Earnout Shares. Earnout Shares issuable in respect of Montana options outstanding as of immediately prior to the effective time of the Merger may be issued to the holder of such Montana option only if such holder continues to provide services (whether as an employee, director or individual independent contractor) to the Combined Company or one of its subsidiaries through the date on which such Earnout Shares are issued, as determined by a majority of the independent members of the Combined Company Board. As of the date of the Merger Agreement, 100.0% of the total outstanding Class A common units of Montana and 72.7% of the total outstanding Class B common units of Montana (or an aggregate of approximately 76.6% of the total outstanding Class A common units and Class B common units of Montana in the aggregate) were held by unitholders that are expected to continue as directors, officers or employees of the Combined Company. The retention of certain holders of options of Montana who will continue as directors, officers or employees of the Combined Company (whose responsibilities are expected to include continued technology development and commercial execution) is integral to the achievement of the milestones that will determine whether Earnout Shares are payable. Montana does not believe that such targets are achievable absent the continued involvement of such persons. The Combined Company is expected to provide competitive compensation, benefits and equity awards (pursuant to the terms of the Montana Technologies Corporation 2023 Incentive Award Plan) to these individuals following the Merger in order to incentivize these individuals to continue to provide services to the Combined Company. Sponsor Support Agreement In connection with the execution of the Merger Agreement, the Sponsor entered into a sponsor support agreement (the “Sponsor Support Agreement”) with the Company, Montana and other holders of the Company’s Class B common stock, $0.0001 par value per share (“Class B common stock”). The Sponsor Support Agreement provides that as of immediately prior to (but subject to) the Closing, 1,380,736 (or 20%) of the Class B common stock held by the Sponsor as of the Closing will be subject to certain time and performance-based vesting provisions. The Sponsor Support Agreement will terminate on the earlier of (i) the date the Proposed Transactions become effective or (ii) the termination of the Merger Agreement in accordance with its terms Investment Agreement On September 29, 2023, the Company entered into an Investment Agreement (the “Investment Agreement”) with Montana Technologies LLC (“Montana”), Contemporary Amperex Technology Co., Limited (“CATL”), CATL US Inc., an affiliate of CATL (“CATL US”) and Contemporary Amperex Technology USA Inc. an affiliate of CATL (“CATL USA,” and, together with CATL US and CATL, the “CATL Parties”), pursuant to which the CATL Parties agreed, among other things, that they will not, directly or indirectly, (i) acquire any additional units of the Company following the consummation of its proposed business combination with Montana (the “Business Combination,” and such surviving company, the “Post-Combination Company”), (ii) seek election to, or to place a representative on, Montana’s board of managers or the board of directors of the Post-Combination Company, or (iii) acquire any securities of the Post-Combination Company if, following such acquisition, the CATL Parties and their affiliates would hold, in the aggregate, an interest in the Post-Combination Company of greater than 9.8% on either an economic or voting basis (the “CATL Ownership Limit”). In the event the CATL Parties and their affiliates exceed the CATL Ownership Limit, the CATL Parties have agreed, following written notice from the Post-Combination Company, to divest within five business days such number of Post-Combination Company securities as shall be necessary to cause the CATL Ownership Limit not to be exceeded. In addition, at any time the CATL Ownership Limit is exceeded, the CATL Parties have agreed to vote any voting power they hold in excess of 9.8% in accordance with the recommendation of the board of directors of the Post-Combination Company. The CATL Parties agreed that they will not, and will cause their affiliates not to, access, obtain, or seek to access or obtain Montana or the Post-Combination Company’s trade secrets, know-how, or other confidential, proprietary, or competitively sensitive information (excluding any such information that Montana is obligated to provide to CATL US, CAMT, or CAMT’s subsidiaries pursuant to that certain Amended and Restated Joint Venture Agreement for CAMT, dated as of September 29, 2023, by and among Montana, CAMT Climate Solutions, Ltd. (“CAMT”) and CATL US), including by reverse engineering, or seeking to reverse engineer, any of Montana’s products. Montana has agreed to use its reasonable best efforts to assist CATL USA in selling, prior to the consummation of the Business Combination, units of Montana representing at least 2% of Montana’s issued and outstanding units at a price per unit that is not materially lower than the price per unit implied by the valuation of Montana in connection with the Business Combination. In so assisting CATL USA, Montana is not obligated to incur any expenses or grant any concessions, nor is it obligated to prioritize any sale by CATL USA over its own capital raising or financing activities. The Investment Agreement contains customary representations and warranties and may be terminated only with the written consent of the parties thereto. Liquidity, Capital Resources and Going Concern As of September 30, 2023, the Company had approximately $0.3 million in cash and working capital deficit of approximately $7.9 million. The Company’s liquidity needs prior to the consummation of the Initial Public Offering were satisfied through the payment of $25,000 from the Sponsor to cover certain offering costs on behalf of the Company in exchange for issuance of Founder Shares (as defined in Note 4) and a loan from a related party of approximately $115,000 under the Note (as defined in Note 4). The Company fully repaid the Note on December 17, 2021. Subsequent to the consummation of the Initial Public Offering, the Company’s liquidity has been satisfied through the net proceeds from the consummation of the Initial Public Offering and the Private Placement held outside of the Trust Account. In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor, members of the Company’s founding team or any of their affiliates may, but are not obligated to, loan the Company funds under the Working Capital Loans (as defined and described in Note 4). In connection with the Company’s assessment of going concern considerations in accordance with FASB ASC Topic 205-40, “Presentation of Financial Statements – Going Concern,” management has determined that the liquidity needs, mandatory liquidation and subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern, which is considered to be one year from the issuance of these financial statements. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after December 14, 2023. The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern. The Company intends to complete a Business Combination before the mandatory liquidation date, as it may be extended. Over this time period, the Company will be using the funds outside of the Trust Account for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company’s ability to continue as a going concern through one year from the issuance date of these financial statements. These financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. Risks and Uncertainties Management is currently evaluating the impact of the COVID-19 pandemic on the Company and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations and/or search for a Target, the specific impact is not readily determinable as of the date of the financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. As a result of this action, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. The recent military conflict between Israel and militant groups led by Hamas has also caused uncertainty in the global markets. Further, the impact of these actions and related sanctions on the world economy are not determinable as of the date of these financial statements. Certain purported shareholders of the Company sent demand letters (the “Demands”) alleging deficiencies and/or omissions in the Registration Statement on Form S-4, filed by the Company on August 9, 2023. The Demands seek additional disclosures to remedy these purported deficiencies. The Company believes that the allegations in the Demands are meritless. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared in U.S. dollars in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and Article 8 of Regulation S-X. Accordingly, certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements. In the opinion of management, all adjustments (consisting of normal accruals) considered for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or any future period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on April 17, 2023, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2022, is derived from the audited financial statements presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on April 17, 2023. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, XPDB Merger Sub, LLC. There has been no intercompany activity since inception. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s condensed financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. Actual results could differ from those estimates. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times, may exceed the Federal Depository Insurance Corporation coverage of $250,000. The Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. 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 had no cash equivalents as of September 30, 2023 and December 31, 2022. Investments Held in Trust Account The Company’s portfolio of investments is comprised of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities and generally have a readily determinable fair value, or a combination thereof. When the Company’s investments held in the Trust Account are comprised of U.S. government securities, the investments are classified as trading securities. When the Company’s investments held in the Trust Account are comprised of money market funds, the investments are recognized at fair value. Trading securities and investments in money market funds are presented on the condensed consolidated balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in income from investments held in Trust Account in the accompanying statement of operations. The estimated fair values of investments held in the Trust Account are determined using available market information. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the condensed consolidated balance sheets, primarily due to their short-term nature. Fair Value Measurements Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The warrants issued in the Initial Public Offering (“Public Warrants”) and the Private Placement Warrants are not precluded from equity classification, based on the guidance in ASC 480 and ASC 815. Equity-classified contracts are initially measured at fair value (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity. Offering Costs Associated with the Initial Public Offering Offering costs consisted of legal, accounting, underwriting fees and other costs incurred that were directly related to the Initial Public Offering. Upon completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial Public Offering on a relative fair value basis, compared to total proceeds received. Offering costs associated with the Class A common stock were charged to the carrying value of Class A common stock subject to possible redemption upon the completion of the Initial Public Offering. Offering costs associated with the Public Warrants and the Private Placement Warrants were recognized net in equity. Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Shares of Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable shares of Class A common stock (including shares of Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, shares of Class A common stock are classified as stockholders’ equity. Shares of Class A common stock of the Company feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, as of September 30, 2023 and December 31, 2022, 10,608,178 and 28,750,000, respectively, shares of Class A common stock subject to possible redemption were presented as temporary equity, outside of the stockholders’ equity section of the Company’s condensed consolidated balance sheets. In connection with the stockholders’ vote at the Special Meeting, the stockholders elected to redeem 18,141,822 shares of Class A common stock at a redemption price of approximately $10.37 per share, for an aggregate redemption amount of approximately $188,132,132. After the satisfaction of the Redemption, the balance in the Trust Account as of September 30, 2023 was approximately $113,045,191. Upon completion of the Redemption, 10,608,178 shares of Class A common stock and 7,187,500 shares of Class B common stock remain issued and outstanding. Under ASC 480, the Company has elected to recognize changes in the redemption value immediately as they occur and adjust the carrying value of the security to equal the redemption value at the end of the reporting period. This method would view the end of the reporting period as if it were also the redemption date of the security. Effective with the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount, which resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit. Income Taxes The Company complies with the accounting and reporting requirements of FASB ASC Topic 740, “Income Taxes” (“ASC 740”), 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. FASB ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of September 30, 2023 and December 31, 2022. 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 as of September 30, 2023 and December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s effective tax rate was 86.09% and 25.4% for the three months ended September 30, 2023 and 2022, respectively, 54.12% and 49.04% for the nine months ended September 30, 2023 and 2022, respectively. The effective tax rate differs from the statutory tax rate of 21% for the three and nine months ended September 30, 2023 due to the increase in the valuation allowance. Net (Loss) Income per Common Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock. Income and losses are shared pro rata between the two classes of shares. Net (loss) income per common share is calculated by dividing the net (loss) income by the weighted average shares of common stock outstanding for the respective period. The calculation of diluted net (loss) income does not consider the effect of the Public Warrants and the Private Placement Warrants to purchase an aggregate of 25,500,000 Class A common stock in the calculation of diluted (loss) income per share, because their exercise is contingent upon future events and their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted net (loss) income per share is the same as basic net (loss) income per share for the three and nine months ended September 30, 2023 and 2022. Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the redemption value approximates fair value. For The Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income per common stock Numerator: Allocation of net income $ 28,345 $ 19,205 $ 625,075 $ 156,269 $ 896,463 $ 300,527 $ 316,790 $ 79,198 Denominator: Basic and diluted weighted average common stock outstanding 10,608,178 7,187,500 28,750,000 7,187,500 21,440,108 7,187,500 28,750,000 7,187,500 Basic and diluted net income per common stock $ 0.00 $ 0.00 $ 0.02 $ 0.02 $ 0.04 $ 0.04 $ 0.01 $ 0.01 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 condensed consolidated financial statements. |
Initial Public Offering
Initial Public Offering | 9 Months Ended |
Sep. 30, 2023 | |
Initial Public Offering [Abstract] | |
INITIAL PUBLIC OFFERING | NOTE 3 - INITIAL PUBLIC OFFERING On December 14, 2021, the Company consummated its Initial Public Offering of 28,750,000 Units, which included the exercise of the underwriters’ option to purchase an additional 3,750,000 Over-Allotment Units at the initial public offering price, generating gross proceeds of $287.5 million, and incurring offering costs of approximately $20.7 million, of which approximately $10.1 million was for deferred underwriting fees. Each Unit consists of one share of Class A common stock, and one-half of one redeemable warrant. Each Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 7). |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 4 - RELATED PARTY TRANSACTIONS Founder Shares On March 30, 2021, the Sponsor paid $25,000 to cover for certain offering costs on behalf of the Company in exchange for issuance of 5,750,000 shares of the Company’s Class B common stock, par value $0.0001 per share, (the “Founder Shares”). In November 2021, the Company effected a stock dividend of 1,437,500 shares of Class B common stock, resulting in there being an aggregate of 7,187,500 shares of Class B common stock outstanding. All shares and associated amounts have been retroactively restated to reflect the stock dividend. The initial stockholders agreed to forfeit up to an aggregate of 937,500 Founder Shares, so that the Founder Shares would represent 20.0% of the Company’s issued and outstanding shares after the Initial Public Offering. The underwriters exercised their over-allotment option in full on December 14, 2021; thus, these 937,500 Founder Shares were no longer subject to forfeiture. In July 2021, the Sponsor transferred 30,000 Founder Shares to each of the four independent director nominees, a total of 120,000 Founder Shares. In November 2021, the Sponsor repurchased 30,000 shares of Class B common stock from a former independent director nominee at a price of $120. The transfer of the Founder Shares is in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon the grant date. The Founders Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founders Shares is recognized only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance. As of September 30, 2023 and December 31, 2022, the Company determined that a Business Combination is not considered probable, and, therefore, no stock-based compensation expense has been recognized. As of September 30, 2023 and December 31, 2022, stock-based compensation of approximately $516,000 will be recognized at the date a Business Combination is considered probable (i.e., upon completion of a Business Combination). In exchange for the Anchor Investors participating in the Initial Public Offering and the Private Placement, the Company agreed to sell 1,078,125 Founder Shares to the Anchor Investors, and the Anchor Investors agreed to purchase from the Company on the date of the initial Business Combination such Founder Shares. The Sponsor also agreed that in the event of such purchase by the Anchor Investors, the Sponsor will forfeit to the Company for no consideration a number of Founder Shares equal to the number of Founder Shares purchased by the Anchor Investors. Further, the Anchor Investors agreed that, if they do not own an aggregate of at least certain amount of Public Shares (such amount, the “Anchor Threshold”) at the time of any stockholder vote with respect to an initial Business Combination or the business day immediately prior to the completion of the initial Business Combination, the number of Founder Shares to be purchased by such Anchor Investors from the Company will be reduced pro rata by a fraction, the numerator of which will equal the Anchor Threshold less the number of Public Shares held by such Anchor Investors after giving effect to any redemptions of the Public Shares by such Anchor Investors and their affiliates, and the denominator of which will equal the Anchor Threshold; provided, however, in no event will such pro rata reduction in the number of Founder Shares to be purchased by the Anchor Investors reduce the number of Founder Shares to be purchased by more than 75%. The Company determined that the excess of the fair value of the Founder Shares to be acquired by the Anchor Investors upon the closing of the initial Business Combination (in which case the Sponsor also agreed to forfeit to the Company for no consideration a number of Founder Shares equal to the number of Founder Shares purchased by the Anchor Investors) should be recognized as an offering cost by the Company in accordance with SEC Staff Accounting Bulletin (“SAB”) Topic 5A, “Expenses of Offerings.” The Company estimated the aggregate fair value of the Sponsor’s agreement to sell Founder Shares to the Anchor Investors to be approximately $4.7 million using a Monte Carlo simulation. Accordingly, the additional offering cost is allocated to the separable financial instruments issued in the Initial Public Offering on a relative fair value basis, compared to total proceeds received. The allocated portion of the additional offering cost associated with the Class A common stock was charged to the carrying value of Class A common stock subject to possible redemption upon the completion of the Initial Public Offering. The initial stockholders and the Anchor Investors agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (A) one year after the completion of the initial Business Combination; and (B) subsequent to the initial Business Combination (x) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20-trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination or (y) the date on which the Company completes a liquidation, merger, capital stock exchange, reorganization or other similar transaction that results in all of the Company’s stockholders having the right to exchange their shares of common stock for cash, securities or other property. Any permitted transferees would be subject to the same restrictions and other agreements of the initial stockholders and the Anchor Investors with respect to any Founder Shares. Private Placement Warrants Simultaneously with the closing of the Initial Public Offering, the Company consummated the Private Placement of 11,125,000 Private Placement Warrants, at a price of $1.00 per Private Placement Warrant to the Sponsor and the Anchor Investors, generating proceeds of approximately $11.1 million. Each Private Placement Warrant is exercisable for one whole share of Class A common stock at a price of $11.50 per share. A portion of the proceeds from the sale of the Private Placement Warrants was added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the Private Placement Warrants will expire worthless. The purchasers of the Private Placement Warrants agreed, subject to limited exceptions, not to transfer, assign or sell any of their Private Placement Warrants (except to permitted transferees) until 30 days after the completion of the initial Business Combination. Related Party Loans On March 30, 2021, the Sponsor agreed to loan the Company an aggregate of up to $300,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (as amended and restated on July 1, 2021, the “Note”). This loan was non-interest bearing and payable upon the completion of the Initial Public Offering. As of December 14, 2021, the Company borrowed approximately $115,000 under the Note. The Company fully repaid the Note on December 17, 2021. In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. The Working Capital Loans would either be repaid upon completion of a Business Combination or, at the lender’s discretion, up to $1.5 million of such Working Capital Loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. As of September 30, 2023 and December 31, 2022, the Company had no borrowings under the Working Capital Loans. Advance from Related Party On September 10, 2023, October 10, 2023 and November 9, 2023, pursuant to the approval of the Extension Amendment Proposal the Sponsor contributed $300,000 to the Trust Account to extend the termination date. As of September 30, 2023, the Sponsor had advanced $300,000 to the Company. Administrative Services Agreement Commencing on December 9, 2021 through the earlier of consummation of the initial Business Combination and the Company’s liquidation, the Company agreed to pay affiliates of the Sponsor a total of $20,000 per month for office space, administrative and support services. During the three and nine months ended September 30, 2023, the Company incurred $60,000 and $180,000 of such fees, respectively, which are recognized in general and administrative expenses – related party, in the accompanying condensed consolidated statements of operations. During the three and nine months ended September 30, 2022, the Company incurred $60,000 and $180,000 of such fees, respectively, which are recognized in general and administrative expenses - related party, in the accompanying condensed consolidated statements of operations. As of September 30, 2023 and December 31, 2022, the Company had $440,000 and $260,000, respectively, payable in connection with such agreement, included as accrued expenses in the accompanying condensed consolidated balance sheets. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 5 - COMMITMENTS AND CONTINGENCIES Registration Rights The holders of Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans, if any (and any shares of common stock issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares), were entitled to registration rights pursuant to a registration rights agreement to be signed prior to the consummation of the Initial Public Offering. These holders are entitled to certain demand and “piggyback” registration rights. However, the registration rights agreement provides that the Company will not be required to effect or permit any registration or cause any registration statement to become effective until termination of the applicable lock-up period. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The underwriters were entitled to an underwriting discount of $0.20 per Unit on all Units sold in the Initial Public Offering, except for the Units purchased by the Anchor Investors, or approximately $5.3 million in the aggregate, paid upon the closing of the Initial Public Offering. An additional fee of $0.35 per Unit, or approximately $10.1 million in the aggregate will be payable to the underwriters for deferred underwriting commissions. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. On June 20, 2023, BofA Securities, Inc. waived its entitlement to the payment of any deferred discount to be paid under the terms of underwriting agreement. As a result, the reduction in deferred fees was allocated on a pro rata basis between additional paid-in capital and other income based upon the original amount of the deferred underwriting fees allocation to the liability-classified instruments in the initial public offering. Therefore, the deferred underwriting fee was reduced by $4,025,000, of which $205,275 is reflected in the condensed consolidated statement of operations as other income and $3,819,725 is charged to additional paid-in capital in the statement of stockholders’ deficit. As a result of the waiver, the outstanding deferred underwriting fee payable was reduced to approximately $6.0 million. Inflation Reduction Act of 2022 On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its shareholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. Any share redemption or other share repurchase that occurs after December 31, 2022, in connection with a Business Combination, extension vote or otherwise, may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax in connection with a Business Combination, extension vote or otherwise will depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, extension or otherwise, (ii) the structure of a Business Combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with a Business Combination (or otherwise issued not in connection with a Business Combination but issued within the same taxable year of a Business Combination) and (iv) the content of regulations and other guidance from the Treasury. In addition, because the excise tax would be payable by the Company and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination and in the Company’s ability to complete a Business Combination. On June 9, 2023, the Company’s stockholders redeemed 18,141,822 shares of Class A shares of common stock for a total of $188,132,132. The Company evaluated the classification and accounting of the stock redemption under ASC 450, “Contingencies”. ASC 450 states that when a loss contingency exists the likelihood that the future event(s) will confirm the loss or impairment of an asset or the incurrence of a liability can range from probable to remote. A contingent liability must be reviewed at each reporting period to determine appropriate treatment. The Company evaluated the current status and probability of completing a Business Combination as of September 30, 2023 and concluded that it is probable that a contingent liability should be recorded. As of September 30, 2023, the Company recorded $1,881,321 of excise tax liability calculated as 1% of shares redeemed on June 9, 2023. |
Class A Common Stock Subject to
Class A Common Stock Subject to Possible Redemption | 9 Months Ended |
Sep. 30, 2023 | |
Class A Common Stock Subject to Possible Redemption [Abstract] | |
CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION | NOTE 6 – CLASS A COMMON STOCK SUBJECT TO POSSIBLE REDEMPTION The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of future events. The Company is authorized to issue 500,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each share. As of September 30, 2023 and December 31, 2022, there were 10,608,178 and 28,750,000, respectively, shares of Class A common stock outstanding, which were all subject to possible redemption and classified outside of permanent equity in the accompanying condensed consolidated balance sheets. In connection with the stockholders’ vote at the Special Meeting, the stockholders elected to redeem 18,141,822 shares of Class A common stock at a redemption price of approximately $10.37 per share, for an aggregate redemption amount of approximately $188,132,132. After the satisfaction of the Redemption, the balance in the Trust Account as of September 30, 2023 was approximately $113,045,191. Upon completion of the Redemption, 10,608,178 shares of Class A common stock and 7,187,500 shares of Class B common stock remain issued and outstanding. The Class A common stock subject to possible redemption reflected on the condensed consolidated balance sheets is reconciled on the following table: Gross proceeds $ 287,500,000 Less: Proceeds allocated to Public Warrants (14,662,500 ) Issuance costs allocated to Class A common stock (19,627,833 ) Plus: Adjust carrying value to initial redemption value 40,083,762 Class A common stock subject to possible redemption as of December 31, 2022 293,293,429 Less: Redemption (188,132,132 ) Plus: Remeasurement of carrying value to initial redemption value 7,357,845 Class A common stock subject to possible redemption as of September 30, 2023 $ 112,519,142 |
Stockholders_ Deficit
Stockholders’ Deficit | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders’ Deficit [Abstract] | |
STOCKHOLDERS’ DEFICIT | NOTE 7 – STOCKHOLDERS’ DEFICIT Preferred Stock no Class A Common Stock In connection with the stockholders’ vote at the Special Meeting, the stockholders elected to redeem 18,141,822 shares of Class A common stock at a redemption price of approximately $10.37 per share, for an aggregate redemption amount of approximately $188,132,132. After the satisfaction of the Redemption, the balance in the Trust Account as of September 30, 2023 was approximately $113,045,191. Upon completion of the Redemption, 10,608,178 shares of Class A common stock and 7,187,500 shares of Class B common stock remain issued and outstanding. Class B Common Stock Common stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders and vote together as a single class, except as required by law; provided, that, prior to the Company’s initial Business Combination, holders of the Class B common stock will have the right to appoint all of the Company’s directors and remove members of the board of directors for any reason, and holders of the Class A common stock will not be entitled to vote on the appointment of directors during such time. The Class B common stock will automatically convert into Class A common stock at the time of the initial Business Combination, or earlier at the option of the holder, on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of the initial Business Combination, the ratio at which the shares of Class B common stock will convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the issued and outstanding shares of the Class B common stock agree to waive such anti-dilution adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of all shares of common stock issued and outstanding upon the completion of the Initial Public Offering plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with the initial Business Combination, excluding any shares or equity-linked securities issued, or to be issued, to any seller in the initial Business Combination. Warrants The warrants have an exercise price of $11.50 per share, subject to adjustments, and will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. 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 Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of the initial Business Combination on the date of the completion of the initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Class A common stock during the 20 trading day period starting on the trading day prior to the day on which the Company completes the initial Business Combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, the $18.00 per share redemption trigger prices described below under “Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00” to be equal to 180% of the higher of the Market Value and the Newly Issued Price described below under “Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00” will be adjusted (to the nearest cent) to be equal to the higher of the Market Value and the Newly Issued Price. The Private Placement Warrants will be non-redeemable and will be exercisable on a cashless basis at the option of the holder. Redemption of Public Warrants when the price per share of Class A common stock equals or exceeds $18.00: Once the warrants become exercisable, the Company may call the outstanding warrants for redemption (except as described herein with respect to the Private Placement Warrants): ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon a minimum of 30 days’ prior written notice of redemption to each warrant holder; and ● if, and only if, the last reported sale price of 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 (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted). Unless the Company has elected to require Public Warrant holders to exercise such warrants on a cashless basis, the Company will not redeem the Public Warrants as described above unless a registration statement under the Securities Act covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available throughout the 30-day redemption period. If and when the Public Warrants become redeemable by the Company, the Company may exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 8 – FAIR VALUE MEASUREMENTS The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value. Description Level 1 Level 2 Level 3 September 30, 2023 – Assets Investments held in Trust Account $ 113,045,191 — — December 31, 2022 – Assets Investments held in Trust Account $ 294,395,846 — — Transfers to/from Levels 1, 2, and 3 are recognized at the beginning of the reporting period. There were no transfers between levels for the period from March 23, 2021 (inception) through September 30, 2023. Level 1 assets include investments in money market funds or U.S. Treasury securities. The Company uses inputs such as actual trade data, benchmark yields, quoted market prices from dealers or brokers, and other similar sources to determine the fair value of its investments. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the condensed consolidated financial statements were issued. Based upon this review the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements other than described below. On October 10, 2023 and November 9, 2023, pursuant to the approval of the Extension Amendment Proposal, the Sponsor contributed $300,000, on each occasion, to the Trust Account to extend the termination date to December 14, 2023. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements of the Company have been prepared in U.S. dollars in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and Article 8 of Regulation S-X. Accordingly, certain disclosures included in the annual financial statements have been condensed or omitted from these financial statements as they are not required for interim financial statements. In the opinion of management, all adjustments (consisting of normal accruals) considered for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or any future period. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on April 17, 2023, which contains the audited financial statements and notes thereto. The financial information as of December 31, 2022, is derived from the audited financial statements presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC on April 17, 2023. |
Principles of Consolidation | Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, XPDB Merger Sub, LLC. There has been no intercompany activity since inception. |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s condensed financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times, may exceed the Federal Depository Insurance Corporation coverage of $250,000. The Company has not experienced losses on this account and management believes the Company is not exposed to significant risks on such account. |
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 had no cash equivalents as of September 30, 2023 and December 31, 2022. |
Investments Held in Trust Account | Investments Held in Trust Account The Company’s portfolio of investments is comprised of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities and generally have a readily determinable fair value, or a combination thereof. When the Company’s investments held in the Trust Account are comprised of U.S. government securities, the investments are classified as trading securities. When the Company’s investments held in the Trust Account are comprised of money market funds, the investments are recognized at fair value. Trading securities and investments in money market funds are presented on the condensed consolidated balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in income from investments held in Trust Account in the accompanying statement of operations. The estimated fair values of investments held in the Trust Account are determined using available market information. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the condensed consolidated balance sheets, primarily due to their short-term nature. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. |
Derivative Financial Instruments | Derivative Financial Instruments The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815, “Derivatives and Hedging” (“ASC 815”). The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period. The warrants issued in the Initial Public Offering (“Public Warrants”) and the Private Placement Warrants are not precluded from equity classification, based on the guidance in ASC 480 and ASC 815. Equity-classified contracts are initially measured at fair value (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity. |
Offering Costs Associated with the Initial Public Offering | Offering Costs Associated with the Initial Public Offering Offering costs consisted of legal, accounting, underwriting fees and other costs incurred that were directly related to the Initial Public Offering. Upon completion of the Initial Public Offering, offering costs were allocated to the separable financial instruments issued in the Initial Public Offering on a relative fair value basis, compared to total proceeds received. Offering costs associated with the Class A common stock were charged to the carrying value of Class A common stock subject to possible redemption upon the completion of the Initial Public Offering. Offering costs associated with the Public Warrants and the Private Placement Warrants were recognized net in equity. |
Class A Common Stock Subject to Possible Redemption | Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC 480. Shares of Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable shares of Class A common stock (including shares of Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, shares of Class A common stock are classified as stockholders’ equity. Shares of Class A common stock of the Company feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, as of September 30, 2023 and December 31, 2022, 10,608,178 and 28,750,000, respectively, shares of Class A common stock subject to possible redemption were presented as temporary equity, outside of the stockholders’ equity section of the Company’s condensed consolidated balance sheets. In connection with the stockholders’ vote at the Special Meeting, the stockholders elected to redeem 18,141,822 shares of Class A common stock at a redemption price of approximately $10.37 per share, for an aggregate redemption amount of approximately $188,132,132. After the satisfaction of the Redemption, the balance in the Trust Account as of September 30, 2023 was approximately $113,045,191. Upon completion of the Redemption, 10,608,178 shares of Class A common stock and 7,187,500 shares of Class B common stock remain issued and outstanding. Under ASC 480, the Company has elected to recognize changes in the redemption value immediately as they occur and adjust the carrying value of the security to equal the redemption value at the end of the reporting period. This method would view the end of the reporting period as if it were also the redemption date of the security. Effective with the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount, which resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit. |
Income Taxes | Income Taxes The Company complies with the accounting and reporting requirements of FASB ASC Topic 740, “Income Taxes” (“ASC 740”), 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. FASB ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of September 30, 2023 and December 31, 2022. 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 as of September 30, 2023 and December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. The Company’s effective tax rate was 86.09% and 25.4% for the three months ended September 30, 2023 and 2022, respectively, 54.12% and 49.04% for the nine months ended September 30, 2023 and 2022, respectively. The effective tax rate differs from the statutory tax rate of 21% for the three and nine months ended September 30, 2023 due to the increase in the valuation allowance. |
Net (Loss) Income per Common Share | Net (Loss) Income per Common Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock. Income and losses are shared pro rata between the two classes of shares. Net (loss) income per common share is calculated by dividing the net (loss) income by the weighted average shares of common stock outstanding for the respective period. The calculation of diluted net (loss) income does not consider the effect of the Public Warrants and the Private Placement Warrants to purchase an aggregate of 25,500,000 Class A common stock in the calculation of diluted (loss) income per share, because their exercise is contingent upon future events and their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted net (loss) income per share is the same as basic net (loss) income per share for the three and nine months ended September 30, 2023 and 2022. Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the redemption value approximates fair value. For The Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income per common stock Numerator: Allocation of net income $ 28,345 $ 19,205 $ 625,075 $ 156,269 $ 896,463 $ 300,527 $ 316,790 $ 79,198 Denominator: Basic and diluted weighted average common stock outstanding 10,608,178 7,187,500 28,750,000 7,187,500 21,440,108 7,187,500 28,750,000 7,187,500 Basic and diluted net income per common stock $ 0.00 $ 0.00 $ 0.02 $ 0.02 $ 0.04 $ 0.04 $ 0.01 $ 0.01 |
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 condensed consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Basic And Diluted Net (Loss) Income Per Share | Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the redemption value approximates fair value. For The Three Months Ended For the Nine Months Ended 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Basic and diluted net income per common stock Numerator: Allocation of net income $ 28,345 $ 19,205 $ 625,075 $ 156,269 $ 896,463 $ 300,527 $ 316,790 $ 79,198 Denominator: Basic and diluted weighted average common stock outstanding 10,608,178 7,187,500 28,750,000 7,187,500 21,440,108 7,187,500 28,750,000 7,187,500 Basic and diluted net income per common stock $ 0.00 $ 0.00 $ 0.02 $ 0.02 $ 0.04 $ 0.04 $ 0.01 $ 0.01 |
Class A Common Stock Subject _2
Class A Common Stock Subject to Possible Redemption (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Class A Common Stock Subject to Possible Redemption [Abstract] | |
Schedule of Common Stock Subject to Possible Redemption | The Class A common stock subject to possible redemption reflected on the condensed consolidated balance sheets is reconciled on the following table: Gross proceeds $ 287,500,000 Less: Proceeds allocated to Public Warrants (14,662,500 ) Issuance costs allocated to Class A common stock (19,627,833 ) Plus: Adjust carrying value to initial redemption value 40,083,762 Class A common stock subject to possible redemption as of December 31, 2022 293,293,429 Less: Redemption (188,132,132 ) Plus: Remeasurement of carrying value to initial redemption value 7,357,845 Class A common stock subject to possible redemption as of September 30, 2023 $ 112,519,142 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Measurements [Abstract] | |
Schedule of Company’s Assets that are Measured at Fair Value on a Recurring Basis | The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2023 and December 31, 2022 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value. Description Level 1 Level 2 Level 3 September 30, 2023 – Assets Investments held in Trust Account $ 113,045,191 — — December 31, 2022 – Assets Investments held in Trust Account $ 294,395,846 — — |
Description of Organization, _2
Description of Organization, Business Operations and Liquidity (Details) - USD ($) | 9 Months Ended | ||||||||||
Sep. 08, 2023 | Aug. 07, 2023 | Dec. 14, 2021 | Sep. 30, 2023 | Nov. 09, 2023 | Sep. 29, 2023 | Aug. 10, 2023 | Jul. 10, 2023 | Jun. 15, 2023 | Jun. 09, 2023 | Dec. 31, 2022 | |
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Price per share (in Dollars per share) | $ 10 | ||||||||||
Offering costs | $ 20,700,000 | ||||||||||
Deferred underwriting fees | $ 10,100,000 | ||||||||||
Aggregate fair market value percentage | 80% | ||||||||||
Percentage of ownership | 100% | ||||||||||
Public price per share (in Dollars per share) | $ 10.1 | ||||||||||
Aggregate public shares, percentage | 15% | ||||||||||
Net tangible assets | $ 5,000,001 | ||||||||||
Redemption price per share (in Dollars per share) | $ 18 | $ 10.37 | |||||||||
Redemption balance in trust account | $ 113,045,191 | ||||||||||
Common stock outstanding (in Dollars per share) | $ 0.03 | ||||||||||
Deposited in the trust account | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | ||||||
Business combination value | $ 200,000 | $ 300,000 | |||||||||
Net of taxes payable | $ 100,000 | ||||||||||
Residual assets remaining description | In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be only $10.10, or $10.20 or $10.30 per Public Share, as applicable, if the Company extends the period of time the Company will have to complete an initial Business Combination. In order to protect the amounts held in the Trust Account, the Sponsor agreed to be liable to the Company if and to the extent any claims by a third party (except for the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement (a “Target”), reduce the amount of funds in the Trust Account to below (i) $10.10 per Public Share, or $10.20 or $10.30 per public share, as applicable, if the Company extends the period of time it will have to complete an initial Business Combination, or (ii) the lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the Trust assets, in each case net of interest which may be withdrawn to pay taxes, provided that such liability will not apply to any claims by a third party or Target that executed a waiver of any and all rights to seek access to the Trust Account nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). | ||||||||||
Aggregate transaction | $ 421,900,000 | ||||||||||
Additional shares of common stock (in Dollars per share) | $ 10 | ||||||||||
Annualized amount | $ 150,000,000 | ||||||||||
Annualized, description | (i) the ratio of (x) (1) the Annualized EBITDA that is expected from such new production capacity (the “Expected Annualized EBITDA”) less (2) (A) the Threshold Annualized EBITDA plus (B) all previously Expected Annualized EBITDA amounts associated with previous new production capacities for which previous earnouts were achieved, divided by (y) $150,000,000 multiplied by (ii) $200,000,000, provided that the aggregate Expected Annualized EBITDA may not exceed $300,000,000. | ||||||||||
Earning amount | $ 200,000,000 | ||||||||||
Sponsor agreement (in Shares) | 1,380,736 | ||||||||||
Percentage of vesting | 20% | ||||||||||
Interest rate percentage | 9.80% | ||||||||||
Percentage of issued and outstanding | 2% | ||||||||||
Stock Issued | $ 300,000 | ||||||||||
Working Capital Deficit | 7,900,000 | ||||||||||
IPO [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Net proceeds | $ 290,400,000 | ||||||||||
Share price per unit (in Dollars per share) | $ 10.1 | ||||||||||
Over-Allotment Option [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Purchase additional units (in Shares) | 3,750,000 | ||||||||||
Price per share (in Dollars per share) | $ 10 | ||||||||||
Gross proceeds | $ 287,500,000 | ||||||||||
Private Placement Warrants [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Gross proceeds | $ 11,100,000 | ||||||||||
Private placement warrants (in Shares) | 11,125,000 | ||||||||||
Price per share (in Dollars per share) | $ 1 | ||||||||||
Generating proceeds | $ 11,100,000 | ||||||||||
Founder Shares [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Sponsor payment | 25,000 | ||||||||||
Loan amount | $ 115,000 | ||||||||||
Class A Common Stock [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||
Percentage of ownership | 72.70% | ||||||||||
Stockholders elected to redeem shares (in Shares) | 18,141,822 | ||||||||||
Redemption amount | $ 188,132,132 | ||||||||||
Shares issued redemption (in Shares) | 10,608,178 | ||||||||||
Shares outstanding redemption (in Shares) | 10,608,178 | 10,608,178 | |||||||||
Class A Common Stock [Member] | IPO [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Shares issued (in Shares) | 28,750,000 | ||||||||||
Class B Common Stock [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |||||||||
Percentage of ownership | 76.60% | ||||||||||
Common stock, shares issued (in Shares) | 7,187,500 | 7,187,500 | |||||||||
Common stock, shares outstanding (in Shares) | 7,187,500 | 7,187,500 | |||||||||
Class B Common Stock [Member] | Minimum [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Percentage of ownership | 80% | ||||||||||
Merger Agreement [Member] | Class B Common Stock [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | ||||||||||
Business Combination [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Percentage of ownership | 50% | ||||||||||
Percentage of voting power | 9.80% | ||||||||||
Business Combination [Member] | Maximum [Member] | |||||||||||
Description of Organization Business Operations and Liquidity [Line Items] | |||||||||||
Percentage of redemption public shares | 100% |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Federal depository insurance corporation coverage (in Dollars) | $ 250,000 | ||||
Shares subject to possible redemption (in Shares) | 10,608,178 | 10,608,178 | |||
Aggregate redemption amount (in Dollars) | $ 188,132,132 | ||||
Trust account (in Dollars) | $ 113,045,191 | $ 113,045,191 | $ 294,395,846 | ||
Effective tax rate | 86.09% | 25.40% | 54.12% | 49.04% | |
Statutory tax rate | 21% | 21% | |||
Class A Common Stock [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Shares subject to possible redemption (in Shares) | 10,608,178 | 10,608,178 | 28,750,000 | ||
Shares of common stock (in Shares) | 18,141,822 | ||||
Redemption price per share (in Dollars per share) | $ 10.37 | $ 10.37 | |||
Aggregate redemption amount (in Dollars) | $ 188,132,132 | ||||
Trust account (in Dollars) | $ 113,045,191 | $ 113,045,191 | |||
Number of classes of shares | 2 | ||||
Aggregate of shares (in Shares) | 25,500,000 | ||||
Class B Common Stock [Member] | |||||
Basis of Presentation and Summary of Significant Accounting Policies [Line Items] | |||||
Common stock shares issued (in Shares) | 7,187,500 | 7,187,500 | 7,187,500 | ||
Common stock shares outstanding (in Shares) | 7,187,500 | 7,187,500 | 7,187,500 | ||
Number of classes of shares | 2 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Basic And Diluted Net (Loss) Income Per Share - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class A Common stock [Member] | ||||
Numerator: | ||||
Allocation of net income | $ 28,345 | $ 625,075 | $ 896,463 | $ 316,790 |
Denominator: | ||||
Basic weighted average common stock outstanding | 10,608,178 | 28,750,000 | 21,440,108 | 28,750,000 |
Basic net income per common stock | $ 0 | $ 0.02 | $ 0.04 | $ 0.01 |
Class B Common stock [Member] | ||||
Numerator: | ||||
Allocation of net income | $ 19,205 | $ 156,269 | $ 300,527 | $ 79,198 |
Denominator: | ||||
Basic weighted average common stock outstanding | 7,187,500 | 7,187,500 | 7,187,500 | 7,187,500 |
Basic net income per common stock | $ 0 | $ 0.02 | $ 0.04 | $ 0.01 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of Basic And Diluted Net (Loss) Income Per Share (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class A Common stock [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Diluted weighted average common stock outstanding | 10,608,178 | 28,750,000 | 21,440,108 | 28,750,000 |
Diluted net income per common stock | $ 0 | $ 0.02 | $ 0.04 | $ 0.01 |
Class B Common stock [Member] | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Diluted weighted average common stock outstanding | 7,187,500 | 7,187,500 | 7,187,500 | 7,187,500 |
Diluted net income per common stock | $ 0 | $ 0.02 | $ 0.04 | $ 0.01 |
Initial Public Offering (Detail
Initial Public Offering (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 14, 2021 | Sep. 30, 2023 | |
Initial Public Offering [Line Items] | ||
Initial public offering shares (in Shares) | 28,750,000 | |
Incurring offering costs | $ 20.7 | |
Deferred underwriting fees | $ 10.1 | |
Description of units per share | Each Unit consists of one share of Class A common stock, and one-half of one redeemable warrant. Each Public Warrant entitles the holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment (see Note 7). | |
Over-Allotment Option [Member] | ||
Initial Public Offering [Line Items] | ||
Additional shares purchased (in Shares) | 3,750,000 | |
Proceeds generating gross amount | $ 287.5 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 09, 2021 | Nov. 30, 2021 | Jul. 31, 2021 | Mar. 30, 2021 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Nov. 09, 2023 | Oct. 10, 2023 | Sep. 10, 2023 | Dec. 14, 2021 | |
Related Party Transaction [Line Items] | |||||||||||||
Founder shares (in Shares) | 120,000 | ||||||||||||
Stock based compensation | $ 516,000 | $ 516,000 | |||||||||||
Percentage of founder shares | 75% | ||||||||||||
Private placement warrant, description | Each Private Placement Warrant is exercisable for one whole share of Class A common stock at a price of $11.50 per share. | ||||||||||||
Loan borrowed value | $ 115,000 | ||||||||||||
Working capital loans | $ 1,500,000 | ||||||||||||
Warrant price per share (in Dollars per share) | $ 1 | ||||||||||||
Sponsor contributed amount | $ 300,000 | $ 300,000 | $ 300,000 | ||||||||||
Fees amount | $ 60,000 | $ 60,000 | $ 180,000 | $ 180,000 | |||||||||
Sponsor [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Offering costs | $ 25,000 | ||||||||||||
Founder shares (in Shares) | 30,000 | ||||||||||||
Aggregate fair value | $ 4,700,000 | ||||||||||||
Aggregate to cover expenses | $ 300,000 | ||||||||||||
Founder Shares [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Founder shares (in Shares) | 937,500 | ||||||||||||
Issued and outstanding shares percentage | 20% | ||||||||||||
Founder shares no longer subject to forfeiture (in Shares) | 937,500 | ||||||||||||
Initial Public Offering [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Founder shares (in Shares) | 1,078,125 | ||||||||||||
Private Placement Warrants [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Warrant outstanding (in Shares) | 11,125,000 | ||||||||||||
Price per share (in Dollars per share) | $ 1 | $ 1 | |||||||||||
Generating gross proceeds | $ 11,100,000 | ||||||||||||
Administrative Service [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Office space, administrative and support services | $ 20,000 | ||||||||||||
Accrued expenses | $ 440,000 | $ 440,000 | $ 260,000 | ||||||||||
Class B Common Stock [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Stock dividend shares (in Shares) | 1,437,500 | ||||||||||||
Aggregate shares (in Shares) | 7,187,500 | ||||||||||||
Shares repurchased (in Shares) | 30,000 | ||||||||||||
Director nominee price per share (in Dollars per share) | $ 120 | ||||||||||||
Class B Common Stock [Member] | Founder Shares [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Issuance of shares (in Shares) | 5,750,000 | ||||||||||||
Common stock par value | $ 0.0001 | ||||||||||||
Class A Common Stock [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Common stock equal or exceeds per share (in Dollars per share) | $ 12 | ||||||||||||
Sponsor [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
$ 300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | |||
Jun. 09, 2023 | Aug. 16, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Commitments and Contingencies [Line Items] | ||||
Underwriting discount per units (in Dollars per share) | $ 0.2 | |||
Aggregate amount | $ 5,300,000 | |||
Additional fee per units (in Dollars per share) | $ 0.35 | |||
Deferred underwriting fee | $ 4,025,000 | |||
Underwriting fee reflected in other income | 205,275 | |||
Additional paid-in capital | 3,819,725 | |||
Deferred underwriting fee payable | 6,000,000 | |||
Percentage of excise tax | 1% | |||
Percentage of fair market value | 1% | |||
Total common stock | ||||
Excise tax liabilities | 1,881,321 | |||
Percentage of shares redemption | 1% | |||
Underwriting [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Aggregate amount | $ 10,100,000 | |||
Class A Common Stock [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Redemption of common stock (in Shares) | 18,141,822 | |||
Total common stock | $ 188,132,132 |
Class A Common Stock Subject _3
Class A Common Stock Subject to Possible Redemption (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Dec. 14, 2021 | |
Class A Common Stock Subject to Possible Redemption [Line Items] | |||
Aggregate redemption amount (in Dollars) | $ (188,132,132) | ||
Trust account (in Dollars) | $ 113,045,191 | $ 294,395,846 | |
Class A Common Stock [Member] | |||
Class A Common Stock Subject to Possible Redemption [Line Items] | |||
Common stock, shares authorized | 500,000,000 | 500,000,000 | |
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Voting rights | one | ||
Common stock, shares outstanding | 10,608,178 | 28,750,000 | |
Shares of common stock | 18,141,822 | ||
Redemption price per share (in Dollars per share) | $ 10.61 | $ 10.2 | |
Trust account (in Dollars) | $ 113,045,191 | ||
Class B Common Stock [Member] | |||
Class A Common Stock Subject to Possible Redemption [Line Items] | |||
Common stock, shares authorized | 50,000,000 | 50,000,000 | |
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |
Common stock, shares outstanding | 7,187,500 | ||
Common stock shares issued | 7,187,500 | 7,187,500 | |
Common stock shares outstanding | 7,187,500 | 7,187,500 | |
Stockholders’ [Member] | |||
Class A Common Stock Subject to Possible Redemption [Line Items] | |||
Common stock, shares outstanding | 10,608,178 | ||
Redemption price per share (in Dollars per share) | $ 10.37 | ||
Stockholders’ [Member] | Class A Common Stock [Member] | |||
Class A Common Stock Subject to Possible Redemption [Line Items] | |||
Shares of common stock | 18,141,822 | ||
Redemption price per share (in Dollars per share) | $ 10.37 | ||
Aggregate redemption amount (in Dollars) | $ 188,132,132 | ||
Trust account (in Dollars) | $ 113,045,191 | ||
Common stock shares issued | 10,608,178 | ||
Common stock shares outstanding | 10,608,178 | ||
Stockholders’ [Member] | Class B Common Stock [Member] | |||
Class A Common Stock Subject to Possible Redemption [Line Items] | |||
Common stock shares issued | 7,187,500 | ||
Common stock shares outstanding | 7,187,500 |
Class A Common Stock Subject _4
Class A Common Stock Subject to Possible Redemption (Details) - Schedule of Common Stock Subject to Possible Redemption - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Common Stock Subject to Possible Redemption [Abstract] | ||
Gross proceeds | $ 287,500,000 | |
Less: | ||
Proceeds allocated to Public Warrants | (14,662,500) | |
Issuance costs allocated to Class A common stock | (19,627,833) | |
Plus: | ||
Adjust carrying value to initial redemption value | 40,083,762 | |
Class A common stock subject to possible redemption as of December 31, 2022 | $ 293,293,429 | |
Less: | ||
Redemption | $ (188,132,132) | |
Plus: | ||
Remeasurement of carrying value to initial redemption value | 7,357,845 | |
Class A common stock subject to possible redemption as of September 30, 2023 | $ 112,519,142 |
Stockholders_ Deficit (Details)
Stockholders’ Deficit (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Jun. 09, 2023 | Dec. 14, 2021 | |
Stockholders Deficit [Line Items] | ||||
Preferred stock shares authorized | 1,000,000 | 1,000,000 | ||
Preferred stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
Preferred stock issued | ||||
Preferred stock outstanding | ||||
Assets held In trust (in Dollars) | $ 113,045,191 | |||
Percentage of common stock | 20% | |||
Expire year | 5 years | |||
Percentage of equity proceeds | 60% | |||
Market value per share (in Dollars per share) | $ 9.2 | |||
Percentage of market value | 115% | |||
Redemption trigger price (in Dollars per share) | $ 18 | |||
Warrant exceeds price (in Dollars per share) | 18 | |||
Redemption of public warrants price per share (in Dollars per share) | $ 18 | $ 10.37 | ||
Warrants description | Once the warrants become exercisable, the Company may call the outstanding warrants for redemption (except as described herein with respect to the Private Placement Warrants): ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon a minimum of 30 days’ prior written notice of redemption to each warrant holder; and ● if, and only if, the last reported sale price of 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 (the “Reference Value”) equals or exceeds $18.00 per share (as adjusted). | |||
Public Warrants [Member] | ||||
Stockholders Deficit [Line Items] | ||||
Public warrants | 14,375,000 | |||
Private Placement Warrants [Member] | ||||
Stockholders Deficit [Line Items] | ||||
Private placement warrants outstanding | 11,125,000 | |||
Warrants exercise price per share (in Dollars per share) | $ 1 | |||
Warrants [Member] | ||||
Stockholders Deficit [Line Items] | ||||
Warrants exercise price per share (in Dollars per share) | $ 11.5 | |||
Class A Common Stock [Member] | ||||
Stockholders Deficit [Line Items] | ||||
Common stock authorized | 500,000,000 | 500,000,000 | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Shares of common stock, outstanding | 10,608,178 | 28,750,000 | ||
Shares of common stock, issued | 10,608,178 | 28,750,000 | ||
Stockholders elected to redeem shares | 18,141,822 | |||
Common stock redemption price (in Dollars per share) | $ 10.61 | $ 10.2 | ||
Issue price (in Dollars per share) | $ 9.2 | |||
Percentage of market value | 180% | |||
Warrants exceed price (in Dollars per share) | $ 18 | |||
Class B Common Stock [Member] | ||||
Stockholders Deficit [Line Items] | ||||
Common stock authorized | 50,000,000 | 50,000,000 | ||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | ||
Shares of common stock, outstanding | 7,187,500 | |||
Common stock outstanding | 7,187,500 | 7,187,500 | ||
Common stock issued | 7,187,500 | 7,187,500 | ||
Stockholders’ [Member] | ||||
Stockholders Deficit [Line Items] | ||||
Shares of common stock, outstanding | 10,608,178 | |||
Stockholders elected to redeem shares | 18,141,822 | |||
Common stock redemption price (in Dollars per share) | $ 10.37 | |||
Common stock aggregate redemption amount (in Dollars) | $ 188,132,132 | |||
Assets held In trust (in Dollars) | $ 113,045,191 | |||
Stockholders’ [Member] | Class A Common Stock [Member] | ||||
Stockholders Deficit [Line Items] | ||||
Common stock redemption price (in Dollars per share) | $ 10.37 | |||
Common stock outstanding | 10,608,178 | |||
Common stock issued | 10,608,178 | |||
Stockholders’ [Member] | Class B Common Stock [Member] | ||||
Stockholders Deficit [Line Items] | ||||
Common stock outstanding | 7,187,500 | |||
Common stock issued | 7,187,500 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of Company’s Assets that are Measured at Fair Value on a Recurring Basis - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Level 1 [Member] | ||
September 30, 2023 – Assets | ||
Investments held in Trust Account | $ 113,045,191 | $ 294,395,846 |
Level 2 [Member] | ||
September 30, 2023 – Assets | ||
Investments held in Trust Account | ||
Level 3 [Member] | ||
September 30, 2023 – Assets | ||
Investments held in Trust Account |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Nov. 09, 2023 | Oct. 10, 2023 |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Deposited in the trust account | $ 300,000 | $ 300,000 |