Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 21, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | ATHENA CONSUMER ACQUISITION CORP. | |
Trading Symbol | ACAQ | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0001869141 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
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 | 001-40921 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-1178222 | |
Entity Address, Address Line One | 442 5th Avenue | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
City Area Code | (970) | |
Local Phone Number | 925-1572 | |
Title of 12(b) Security | Shares of Class A common stock, par value $0.0001 per share, included as part of the units | |
Security Exchange Name | NYSE | |
Entity Interactive Data Current | Yes | |
Entity Address, Postal Zip Code | 0 | |
Class A Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 24,060,000 | |
Class B Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 8,050,000 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 259,269 | $ 850,615 |
Prepaid expenses and other assets | 361,150 | 326,707 |
Total current assets | 620,419 | 1,177,322 |
Prepaid expenses - non current | 16,205 | 249,048 |
Deferred tax asset | 15,299 | |
Investments held in Trust Account | 235,904,801 | 234,604,169 |
TOTAL ASSETS | 236,541,425 | 236,045,838 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 1,715,634 | 28,421 |
Income tax payable | 240,727 | |
Franchise tax payable | 127,524 | 77,036 |
Total current liabilities | 2,083,885 | 105,457 |
Derivative liability – forward purchase agreement | 1,560,000 | |
Deferred underwriting fee payable | 8,650,000 | 8,650,000 |
TOTAL LIABILITIES | 12,293,885 | 8,755,457 |
COMMITMENTS AND CONTINGENCIES | ||
REDEEMABLE COMMON STOCK | ||
Class A common stock subject to possible redemption, $0.0001 par value, 23,000,000 shares at redemption value of $10.24 and $10.20 per share at September 30, 2022 and December 31, 2021, respectively | 235,601,219 | 234,600,000 |
STOCKHOLDERS’ DEFICIT | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding at September 30, 2022 and December 31, 2021 | ||
Class A common stock; $0.0001 par value; 100,000,000 shares authorized; 1,060,000 shares issued and outstanding (excluding 23,000,000 shares subject to possible redemption) at September 30, 2022 and December 31, 2021 | 106 | 106 |
Class B common stock; $0.0001 par value; 10,000,000 shares authorized; 8,050,000 shares issued and outstanding at September 30, 2022 and December 31, 2021 | 805 | 805 |
Additional paid-in capital | ||
Accumulated deficit | (11,354,590) | (7,310,530) |
TOTAL STOCKHOLDERS’ DEFICIT | (11,353,679) | (7,309,619) |
TOTAL LIABILITIES, REDEEMABLE COMMON STOCK AND STOCKHOLDERS’ DEFICIT | $ 236,541,425 | $ 236,045,838 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
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, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock subject to possible redemption, redemption value | 23,000,000 | 23,000,000 |
Common stock subject to possible redemption, redemption value per share (in Dollars per share) | $ 10.24 | $ 10.2 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 1,060,000 | 1,060,000 |
Common stock, shares outstanding | 1,060,000 | 1,060,000 |
Class B Common Stock | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,050,000 | 8,050,000 |
Common stock, shares outstanding | 8,050,000 | 8,050,000 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
OPERATING EXPENSES | ||||
General and administrative | $ 1,271,266 | $ 2,416 | $ 3,416 | $ 2,626,069 |
Total operating expenses | (1,271,266) | (2,416) | (3,416) | (2,626,069) |
OTHER INCOME (EXPENSE) | ||||
Income on investments held in Trust Account | 1,058,835 | 1,399,254 | ||
Change in fair value of Derivative liability – Forward Purchase Agreement | (130,000) | (130,000) | ||
Total other income (expense) | 928,835 | 1,269,254 | ||
LOSS BEFORE PROVISION FOR INCOME TAXES | (342,431) | (2,416) | (3,416) | (1,356,815) |
Provision for income taxes | (196,768) | (256,026) | ||
Net loss | $ (539,199) | $ (2,416) | $ (3,416) | $ (1,612,841) |
Class A Common Stock | ||||
OTHER INCOME (EXPENSE) | ||||
Weighted average shares outstanding (in Shares) | 24,060,000 | 24,060,000 | ||
Basic and diluted net loss per share (in Dollars per share) | $ (0.02) | $ 0 | $ 0 | $ (0.05) |
Class B Common Stock | ||||
OTHER INCOME (EXPENSE) | ||||
Weighted average shares outstanding (in Shares) | 8,050,000 | 7,000,000 | 7,000,000 | 8,050,000 |
Basic and diluted net loss per share (in Dollars per share) | $ (0.02) | $ 0 | $ 0 | $ (0.05) |
Condensed Statements of Opera_2
Condensed Statements of Operations (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Class A Common Stock | ||||
Basic and diluted net loss per share | $ (0.02) | $ 0 | $ 0 | $ (0.05) |
Class B Common Stock | ||||
Basic and diluted net loss per share | $ (0.02) | $ 0 | $ 0 | $ (0.05) |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholders’ Deficit (Unaudited) - USD ($) | Class A Common Stock | Class B Common Stock | Additional paid-in capital | Accumulated deficit | Total | |
Balance at Jun. 03, 2021 | ||||||
Balance (in Shares) at Jun. 03, 2021 | ||||||
Class B common stock issued to sponsor | [1],[2] | $ 805 | 24,195 | 25,000 | ||
Class B common stock issued to sponsor (in Shares) | [1],[2] | 8,050,000 | ||||
Net loss | (1,000) | (1,000) | ||||
Balance at Jun. 30, 2021 | $ 805 | 24,195 | (1,000) | 24,000 | ||
Balance (in Shares) at Jun. 30, 2021 | 8,050,000 | |||||
Balance at Jun. 03, 2021 | ||||||
Balance (in Shares) at Jun. 03, 2021 | ||||||
Net loss | (3,416) | |||||
Balance at Sep. 30, 2021 | $ 805 | 24,195 | (3,416) | 21,584 | ||
Balance (in Shares) at Sep. 30, 2021 | 8,050,000 | |||||
Balance at Jun. 30, 2021 | $ 805 | 24,195 | (1,000) | 24,000 | ||
Balance (in Shares) at Jun. 30, 2021 | 8,050,000 | |||||
Net loss | (2,416) | (2,416) | ||||
Balance at Sep. 30, 2021 | $ 805 | 24,195 | (3,416) | 21,584 | ||
Balance (in Shares) at Sep. 30, 2021 | 8,050,000 | |||||
Balance at Dec. 31, 2021 | $ 106 | $ 805 | (7,310,530) | (7,309,619) | ||
Balance (in Shares) at Dec. 31, 2021 | 1,060,000 | 8,050,000 | ||||
Net loss | (222,314) | (222,314) | ||||
Balance at Mar. 31, 2022 | $ 106 | $ 805 | (7,532,844) | (7,531,933) | ||
Balance (in Shares) at Mar. 31, 2022 | 1,060,000 | 8,050,000 | ||||
Balance at Dec. 31, 2021 | $ 106 | $ 805 | (7,310,530) | (7,309,619) | ||
Balance (in Shares) at Dec. 31, 2021 | 1,060,000 | 8,050,000 | ||||
Remeasurement of Class A common stock subject to possible redemption | 32,155,397 | |||||
Net loss | (1,612,841) | |||||
Balance at Sep. 30, 2022 | $ 106 | $ 805 | (11,354,590) | (11,353,679) | ||
Balance (in Shares) at Sep. 30, 2022 | 1,060,000 | 8,050,000 | ||||
Balance at Mar. 31, 2022 | $ 106 | $ 805 | (7,532,844) | (7,531,933) | ||
Balance (in Shares) at Mar. 31, 2022 | 1,060,000 | 8,050,000 | ||||
Net loss | (851,328) | (851,328) | ||||
Balance at Jun. 30, 2022 | $ 106 | $ 805 | (8,384,172) | (8,383,261) | ||
Balance (in Shares) at Jun. 30, 2022 | 1,060,000 | 8,050,000 | ||||
Remeasurement of Class A common stock subject to possible redemption | (1,001,219) | (1,001,219) | ||||
Initial value of Derivative Liability – Forward Purchase Agreement | (1,430,000) | (1,430,000) | ||||
Net loss | (539,199) | (539,199) | ||||
Balance at Sep. 30, 2022 | $ 106 | $ 805 | $ (11,354,590) | $ (11,353,679) | ||
Balance (in Shares) at Sep. 30, 2022 | 1,060,000 | 8,050,000 | ||||
[1] On September 23, 2021, the Company effected a 1.36440678 for 1 stock split of its common stock so that the Sponsor owns an aggregate of 8,050,000 founder shares. Shares have been retroactively restated to reflect this transaction (Note 5). |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 4 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (3,416) | $ (1,612,841) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Income on investments held in Trust Account | (1,399,254) | |
Deferred tax asset | 15,299 | |
Change in fair value of Derivative liability – Forward Purchase Agreement | 130,000 | |
Changes in operating assets and liabilities: | ||
Prepaid expenses and other assets | 198,400 | |
Accounts payable and accrued expenses | 2,071 | 1,687,213 |
Income tax payable | 240,727 | |
Income tax and Franchise tax payable | 50,488 | |
Net cash used in operating activities | (1,345) | (689,968) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Withdrawal from Trust Account for payment of taxes | 98,622 | |
Net cash provided by investing activities | 98,622 | |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of Class B common stock to Sponsor | 25,000 | |
Payment of deferred offering costs by related party | (107,937) | |
Proceeds from notes payable – related party | 84,282 | |
Net cash provided by financing activities | 1,345 | |
NET CHANGE IN CASH | (591,346) | |
CASH, BEGINNING OF PERIOD | 850,615 | |
CASH, END OF PERIOD | 259,269 | |
Supplement disclosure of noncash activities: | ||
Deferred offering costs included in accrued offering costs | 55,000 | |
Deferred offering costs paid by sponsor in exchange for issuance of Class B common stock | 25,000 | |
Initial value of Derivative liability – Forward Purchase Agreement | $ 1,430,000 | |
Payment of deferred offering costs by the Sponsor | $ 107,937 |
Description of Organization and
Description of Organization and Business Operations | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Description of Organization and Business Operations | Note 1 — Description of Organization and Business Operations Athena Consumer Acquisition Corp. (the “Company”) was incorporated in Delaware on June 4, 2021. The Company is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (a “Business Combination”). The Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies. As of September 30, 2022, the Company had not commenced any operations. All activity through September 30, 2022, relates to the Company’s formation and Initial Public Offering (“IPO”), which is described below and, since the offering, the search for a prospective initial Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest income earned on investments from the proceeds derived from the IPO. The registration statement for the Company’s IPO was declared effective on October 19, 2021. On October 22, 2021, the Company consummated the IPO and overallotment option (“Overallotment Units”) of 23,000,000 units (“Units”) with respect to the Class A common stock included in the Units being offered (the “Public Shares”) at $10.00 per Unit generating gross proceeds of $230,000,000, which is discussed in Note 3. Simultaneously with the closing of the IPO, the Company consummated the sale of 1,060,000 units (“Private Placement Units”) at a price of $10.00 per Private Placement Unit in a private placement to the Company’s sponsor, Athena Consumer Acquisition Sponsor LLC (the “Sponsor”) generating gross proceeds of $10,600,000, which is described in Note 4. Offering costs for the IPO and the exercise of the underwriters’ over-allotment option amounted to $13,116,818, consisting of $4,000,000 of underwriting fees, $8,650,000 of deferred underwriting fees payable (which are held in the Trust Account (defined below) and $466,818 of other costs. As described in Note 6, the $8,650,000 of deferred underwriting fee payable is contingent upon the consummation of a Business Combination, subject to the terms of the underwriting agreement. Following the closing of the IPO and exercise of the over-allotment, $234,600,000 ($10.20 per Unit) from the net proceeds of the sale of the Units in the IPO and the Private Placement Units was placed in a Trust Account (“Trust Account”) and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of paragraphs (d)(2), (d)(3) and (d)(4) of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account, as described below. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the IPO and the sale of the Private Placement Units, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete one or more initial Business Combinations having an aggregate fair market value of at least 80% of the assets held in the Trust Account excluding the deferred underwriting commissions and taxes payable on income earned on the Trust Account at the time of the agreement to enter into the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act. There is no assurance the Company will be able to successfully effect a Business Combination. The Company will provide the holders of the outstanding Public Shares (the “Public Stockholders”) with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) 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. The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (initially anticipated to be $10.20 per Public Share, plus any pro rata interest then in the Trust Account, net of taxes payable). There will be no redemption rights with respect to the Company’s warrants. All of the Public Shares contain a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a stockholder vote or tender offer in connection with the Company’s Business Combination and in connection with certain amendments to the Company’s amended and restated certificate of incorporation. In accordance with Accounting Standards Codification (“ASC”) 480-10-S99, redemption provisions not solely within the control of a company require Class A common stock subject to redemption to be classified outside of permanent equity. Given that the Public Shares will be issued with other freestanding instruments (i.e., public warrants), the initial carrying value of Class A common stock classified as temporary equity will be the allocated proceeds determined in accordance with ASC 470-20. The Class A common stock are subject to ASC 480-10-S99. If it is probable that the equity instrument will become redeemable, the Company has the option to either (i) accrete changes in the redemption value over the period from the date of issuance (or from the date that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or (ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately. While redemptions cannot cause the Company’s net tangible assets to fall below $5,000,001, the Public Shares are redeemable and are classified as such on the balance sheet until such date that a redemption event takes place. Redemptions of the Company’s Public Shares may be subject to the satisfaction of conditions, including minimum cash conditions, pursuant to an agreement relating to the Company’s Business Combination. If the Company seeks stockholder approval of the Business Combination, the Company will proceed with a Business Combination if a majority of the shares voted are voted in favor of the Business Combination, or such other vote as required by law or stock exchange rule. If a stockholder vote is not required by applicable law or stock exchange listing requirements and the Company does not decide to hold a stockholder vote for business or other reasons, the Company will, pursuant to its Certificate of Incorporation, conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (the “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 applicable law or stock exchange listing requirements, or the Company decides to obtain stockholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks stockholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares (as defined in Note 5) and any Public Shares purchased during or after the IPO in favor of approving a Business Combination. Additionally, each Public Stockholder may elect to redeem their Public Shares without voting, and if they do vote, irrespective of whether they vote for or against the proposed transaction. Notwithstanding the foregoing, the Certificate of Incorporation provides that a Public Stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Class A common stock sold in the IPO, without the prior consent of the Company. The Company’s Sponsor, officers and directors (the “Initial Stockholders”) have agreed not to propose an amendment to the Certificate of Incorporation that would affect the substance or timing of the Company’s obligation to redeem 100% of its Public Shares if the Company does not complete a Business Combination, unless the Company provides the Public Stockholders with the opportunity to redeem their shares of Class A common stock in conjunction with any such amendment. If the Company is unable to complete a Business Combination by January 22, 2023, 15 months from the closing of the IPO (“Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to us to pay the Company’s franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. The Initial Stockholders have agreed to waive their liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the Initial Stockholders should acquire Public Shares in or after the IPO, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. The underwriters have agreed to waive their rights to its deferred underwriting commission (see Note 6) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period, 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 $10.20 per shares held in the Trust Account. In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a vendor for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the Trust Account or to any claims under the Company’s indemnity of the underwriters of the IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except the Company’s independent registered public accounting firm), prospective target businesses or other entities with which the Company does business, execute agreements waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Risks and Uncertainties In March 2020, the World Health Organization declared the outbreak of a novel coronavirus (“COVID-19”) as a pandemic which continues to spread throughout the United States and the world. As of the date the financial statements were issued, there was considerable uncertainty around the expected duration of this pandemic. Management continues to evaluate the impact of the COVID-19 pandemic, and the Company has concluded that while it is reasonably possible that COVID-19 could have a negative effect on completing the IPO and subsequently identifying a target company for a Business Combination, the specific impact is not readily determinable as of the date of the unaudited condensed financial statements. The unaudited condensed 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. Further, the impact of this action and related sanctions on the world economy is not determinable as of the date of these unaudited condensed financial statements. The specific impact on the Company’s financial condition, results of operations, and cash flows is also not determinable as of the date of these unaudited condensed financial statements. On August 16, 2022, President Biden signed into law the Inflation Reduction Act of 2022 (the “IR Act”), which, among other things, imposes a new 1% U.S. federal excise tax on certain repurchases of stock by “covered corporations” (which include publicly traded domestic (i.e., U.S.) corporations) beginning in 2023, with certain exceptions (the “Excise Tax”). The Excise Tax is imposed on the repurchasing corporation itself, not its stockholders from which the stock is repurchased. Because the Company is a Delaware corporation and its securities are trading on the NYSE, the Company is a “covered corporation” for this purpose. 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 has authority to provide regulations and other guidance to carry out, and prevent the abuse or avoidance of the Excise Tax; however, no guidance has been issued to date. It is uncertain whether, and/or to what extent, the Excise Tax could apply to any repurchase by the Company of its common stock or in the event of liquidation, in each instance after December 31, 2022, including any redemptions in connection with its initial Business Combination or in the event the Company does not consummate the initial Business Combination. Whether and to what extent the Company would be subject to the Excise Tax on a redemption of shares of Class A common stock or other stock issued by the Company would depend on a number of factors, including (i) whether the redemption is treated as a repurchase of stock for purposes of the Excise Tax, (ii) the fair market value of the redemption treated as a repurchase of stock in connection with the initial Business Combination, an extension or otherwise, (iii) the structure of the initial Business Combination, (iv) the nature and amount of any “PIPE” or other equity issuances in connection with the initial Business Combination (or otherwise issued not in connection with the initial Business Combination but issued within the same taxable year of a redemption treated as a repurchase of stock) and (v) the content of regulations and other guidance from the U.S. Department of the Treasury. As noted above, the Excise Tax would be payable by the Company and not by the redeeming holder. The imposition of the Excise Tax could cause a reduction in the cash available on hand to complete the initial Business Combination or for effecting redemptions and may affect the Company’s ability to complete the initial Business Combination. In addition, the Excise Tax could cause a reduction in the per share amount payable to the public stockholders in the event the Company liquidates the trust account due to a failure to complete the initial Business Combination within the requisite time frame. Going Concern and Capital Resources As of September 30, 2022, the Company had $259,269 in its operating bank accounts, $235,904,801 in securities held in the Trust Account to be used for a Business Combination or to repurchase or redeem its common stock in connection therewith and working capital deficit of $1,463,466. As of September 30, 2022, approximately $1,399,254 of the amount on deposit in the Trust Account represented interest and dividend income, which is available to pay the Company’s tax obligations. Until the consummation of a Business Combination, the Company will be using the funds not held in the Trust Account for identifying and evaluating prospective acquisition candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to acquire, and structuring, negotiating and consummating the Business Combination. The Company will need to raise additional capital through loans or additional investments from its Sponsor, stockholders, officers, directors, or third parties. The Company’s officers, directors and Sponsor may, but are not obligated to, loan the Company funds, from time to time or at any time, in whatever amount they deem reasonable in their sole discretion, to meet the Company’s working capital needs. Accordingly, the Company may not be able to obtain additional financing. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of a potential transaction, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time, which is considered to be one year from the issuance date of the financial statements. These condensed financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern. In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” the Company has until January 22, 2023 to consummate the proposed Business Combination. It is uncertain that the Company will be able to consummate the proposed Business Combination by this time. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company. Management has determined that the mandatory liquidation, should a Business Combination not occur, and potential subsequent dissolution and liquidity condition, raises substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after January 22, 2023. The Company intends to complete the proposed Business Combination before the mandatory liquidation date. However, there can be no assurance that the Company will be able to consummate any Business Combination by January 22, 2023. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements of the Company are presented in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, as filed with the SEC on March 24, 2022. The interim results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future interim periods. Emerging Growth Company The Company is an emerging growth company as defined in Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), which exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised, and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with 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 condensed financial statements in conformity with U.S. 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 financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. Making estimates requires management to exercise significant judgment. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those estimates. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company had $259,269 and $850,615 of cash as of September 30, 2022 and December 31, 2021, respectively, and no cash equivalents. Investments Held in Trust Accoun The Company's portfolio of investments held in the Trust Account 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 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 are included in income on investments held in Trust Account in the accompanying unaudited condensed statements of operations. The estimated fair values of investments held in the Trust Account are determined using available market information. As of September 30, 2022 and December 31, 2021, the Company had $235,904,801 and $234,604,169 in investments held in Trust Account, respectively. Offering Costs associated with the Initial Public Offering Offering costs consist principally of legal, accounting, underwriting fees and other costs directly related to the IPO. Offering costs are allocated to the separable financial instruments issued in the IPO based on a relative fair value basis, compared to total proceeds received. Total offering cost amounted to $13,116,818, out of which $12,245,042 was charged against the carrying value of Class A common stock upon the completion of the IPO. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. At September 30, 2022 and December 31, 2021, the Company has not experienced losses on these accounts. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under the FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying condensed balance sheets, primarily due to their short-term nature. Income Taxes The Company accounts for income taxes under ASC 740, “Income Taxes.” ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the unaudited condensed financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of September 30, 2022 and December 31, 2021, the Company’s deferred tax asset had a full valuation allowance recorded against it. ASC 740-270-25-2 requires that an annual effective tax rate be determined and such annual effective rate applied to year to date income in interim periods under ASC 740-270-30-5. The Company’s effective tax rate was 57.46% and 0.00% for the three months ended September 30, 2022 and 2021, respectively, and 18.87% and 0.00% for the nine months ended September 30, 2022 and for the period from June 4, 2021 to September 2021, respectively. The effective tax rate differs from the statutory tax rate of 21% for the three and nine months ended September 30, 2022 and the three months ended September 30, 2021 and for the period from June 4, 2021 to September 30, 2021, primarily due to the valuation allowance on the deferred tax assets. Derivative Liabilities The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815-15. 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 Company has determined forward purchase agreements are derivative instruments. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position 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. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2022 and December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. C lass 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 Topic 480, “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable Class A common stock (including Class A common stock that features 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) is classified as temporary equity. At all other times, Class A common stock is classified as stockholders’ equity. The Company’s Class A common stock sold in the IPO and over-allotment features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, as of September 30, 2022 and December 31, 2021, 23,000,000 shares of Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ deficit section of the Company’s condensed balance sheets. Under ASC 480-10-S99, the Company has elected to recognize changes in redemption value immediately as they occur and adjust the carrying value of the Class A common stock subject to possible redemption to equal the redemption value at the end of each reporting period. This method would view the end of the reporting period as if it were also the redemption date for the security. Immediately upon 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. Immediately upon the closing of the IPO and over-allotment, the Company recognized the accretion from the initial book value to redemption amount value. This method would view the end of the reporting period as if it were also the redemption date of the security. Immediately upon the closing of the IPO, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable shares of Class A common stock resulted in charges against additional paid-in capital and accumulated deficit. As of September 30, 2022 and December 31, 2021, the shares of Class A common stock subject to possible redemption reflected on the condensed balance sheets are reconciled on the following table: Gross proceeds $ 230,000,000 Less: Fair value of Public Warrants at issuance (15,310,355 ) Class A shares issuance costs (12,245,042 ) Add: Accretion of carrying value to redemption value 32,155,397 Class A common stock subject to possible redemption at December 31, 2021 234,600,000 Add: Accretion of carrying value to redemption value 1,001,219 Class A common stock subject to possible redemption at September 30, 2022 $ 235,601,219 Net Loss per Common Share The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock (the “Founder Shares”). Earnings and losses are shared pro rata between the two classes of shares. On September 30, 2022, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share in the earnings of the Company. As a result, diluted loss per common share is the same as basic loss per common share for the period presented. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net loss per share for each class of stock. For the three months ended Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ (404,021 ) $ (135,178 ) Denominator: Weighted average shares outstanding 24,060,000 8,050,000 Basic and diluted net loss per share $ (0.02 ) $ (0.02 ) For the nine months ended Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ (1,208,501 ) $ (404,340 ) Denominator: Weighted average shares outstanding 24,060,000 8,050,000 Basic and diluted net loss per share $ (0.05 ) $ (0.05 ) For the three months ended September 30, 2021 Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ - $ (2,416 ) Denominator: Weighted average shares outstanding - 7,000,000 Basic and diluted net loss per share $ (0.00 ) $ (0.00 ) For the period from June 4, 2021 Class A Class B common stock Basic and diluted net loss per share: Numerator: Allocation of net loss $ - $ (3,416 ) Denominator: Weighted average shares outstanding - 7,000,000 Basic and diluted net loss per share $ (0.00 ) $ (0.00 ) Accounting for Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance in ASC 480 and ASC 815, “Derivatives and Hedging” (“ASC 815”). The assessment considers whether the instruments are free standing financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s own common shares and whether the instrument holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, was conducted at the time of warrant issuance and as of each subsequent period end date while the instruments are outstanding. Management has concluded that the Public Warrants and Placement Warrants (defined below) issued pursuant to the warrant agreements qualify for equity accounting treatment. Recent Accounting Pronouncements The Company’s management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s condensed financial statements. Franchise Taxes The Company is subject to a franchise tax administered by the Delaware Division of Corporations. The Company estimates its franchise tax liability for the year ended December 31, 2022, to be $200,000. As of September 30, 2022, the Company has $150,000 accrued for franchise taxes. During the three months ended September 30, 2022, the Company received a refund for the prior tax year ended December 31, 2021, in the amount of $22,476. The current period franchise tax is recorded net of the refund received. |
Initial Public Offering and Ove
Initial Public Offering and Over-Allotment | 9 Months Ended |
Sep. 30, 2022 | |
Initial Public Offering Abstract | |
Initial Public Offering and Over-Allotment | Note 3 — Initial Public Offering and Over-Allotment Pursuant to the IPO, and including the underwriters’ exercise of their over-allotment option, the Company sold 23,000,000 Units at a price of $10.00 per Unit. Each Unit consists of one share of Class A common stock (such shares of Class A common stock included in the Units being offered, the “Public Shares”), and one-half a redeemable warrant (each, a “Public 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). |
Private Placement
Private Placement | 9 Months Ended |
Sep. 30, 2022 | |
Private Placement Abstract | |
Private Placement | Note 4 — Private Placement On October 22, 2021, simultaneously with the consummation of the IPO and the underwriters’ exercise of their over-allotment option, the Company consummated the issuance and sale (“Private Placement”) of 1,060,000 Private Placement Units in a private placement transaction at a price of $10.00 per Private Placement Unit, generating gross proceeds of $10,600,000. Each whole Private Placement Unit will consist of one share of Class A common stock (“Placement Share”) and one-half of a redeemable warrant (“Placement Warrant”). Each whole Placement Warrant will be exercisable to purchase one share of Class A common stock at a price of $11.50 per share. A portion of the proceeds from the Private Placement Units will be added to the proceeds from the IPO to be held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Placement Units will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law), and the Private Placement Units and all underlying securities will be worthless. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5 — Related Party Transactions Founder Shares On June 4, 2021, the Sponsor was issued 5,900,000 shares of Class B common stock. Subsequently, on June 24, 2021, the Sponsor paid certain costs totaling $25,000 on behalf of the Company as consideration for 5,900,000 issued on June 4, 2021. On September 23, 2021, the Company effected a 1.36440678 for 1 stock split of its common stock so that the Sponsor owns an aggregate of 8,050,000 Founder Shares. The Sponsor paid approximately $0.003 per share for the Founder Shares. The Founder Shares will automatically convert into shares of Class A common stock at the time of the Company’s initial Business Combination and are subject to certain transfer restrictions, as described in Note 7. Holders of Founder Shares may also elect to convert their shares of Class B common stock into an equal number of shares of Class A common stock, subject to adjustment, at any time. The Initial Stockholders had agreed to forfeit up to 1,050,000 Founder Shares to the extent that the over-allotment option is not exercised in full by the underwriters. Since the underwriters exercised the over-allotment option in full, the Sponsor did not forfeit any Founder Shares. Subject to limited exceptions, each holder of Founder Shares has agreed that, during the period from July 28, 2022 through the earlier to occur of (the “Termination Date”) (a) the closing of the e.Go Transaction (as such term is defined in Note 6) (the “Closing”), (b) such date and time as the Business Combination Agreement (as such term is defined in Note 6) is validly terminated in accordance with its terms and (c) the mutual written agreement of the parties to that certain Sponsor Letter Agreement (as such term is defined in Note 6), except as contemplated by such Sponsor Letter Agreement and the Business Combination Agreement, it shall not, and shall cause its affiliates not to, without the prior written consent of e.GO and the Company (which consent may be given or withheld by e.GO and the Company in their sole discretion), (i) offer for sale, sell (including short sales), transfer, tender, pledge, convert, encumber, assign or otherwise dispose of, directly or indirectly (including by gift, merger, tendering into any tender offer or exchange offer or otherwise) (collectively, a “Transfer”), or enter into any contract, option, derivative, hedging or other agreement or arrangement or understanding (including any profit-sharing arrangement) with respect to, or consent to, a Transfer of, any or all of its Founder Shares; (ii) grant any proxies or powers of attorney with respect to any or all of its Founder Shares held by it (except in connection with voting by proxy at a meeting of shareholders of the Company); or (iii) permit to exist any mortgage, pledge, security interest, encumbrance, lien, license or sub-license, charge or other similar encumbrance or interest (including, in the case of any equity securities, any voting, transfer or similar restrictions) (a “Lien”) with respect to any or all of its Founder Shares, other than those created by the Sponsor Letter Agreement; provided that any Lien with respect to the Founder Shares that would not prevent, impair or delay its ability to comply with the terms and conditions of the Sponsor Letter Agreement shall be permitted and will not be deemed to violate the restrictions contained above. Additionally, subject to limited exceptions, each holder of Founder Shares has agreed that for a period from the Closing through the date that is 180 days thereafter, it shall not, and shall cause its affiliates not to, Transfer, or enter into any contract, option, derivative, hedging or other agreement or arrangement or understanding (including any profit-sharing arrangement) with respect to, or consent to, a Transfer of, any or all of its TopCo Covered Shares. “TopCo Covered Shares” means (i) with respect to the Sponsor, 75% of the TopCo Ordinary Shares to be issued to the Sponsor pursuant to the Business Combination Agreement (it being understood that the terms of this paragraph shall not apply to the remaining 25% of such TopCo Ordinary Shares) and (ii) with respect to the Athena Insiders (as such term is defined in Note 6), all of the TopCo Ordinary Shares to be issued pursuant to the Business Combination Agreement. Related Party Loans On June 4, 2021, the Sponsor agreed to loan the Company an aggregate of up to $300,000 to cover expenses related to the IPO pursuant to a promissory note (the “Note”). This loan was non-interest bearing and payable on the earlier of December 31, 2021, or the completion of the IPO. $117,994 was borrowed under the Note and repaid on October 22, 2021. There was no balance outstanding as of September 30, 2022 and December 31, 2021. This facility is no longer available. 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 will repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1.5 million of such Working Capital Loans may be convertible into Units of the post Business Combination entity at a price of $10.00 per Unit. The Units would be identical to the Private Placement Units. As of September 30, 2022 and December 31, 2021, there were no Working Capital Loans outstanding. Support Services The Company intends to pay an entity affiliated with the Sponsor a fee of approximately $10,000 per month following the consummation of the IPO until the earlier of the consummation of the Business Combination or liquidation for office space and administrative support services. As of September 30, 2022, $90,000 has been incurred under this agreement. For the three and nine months ended September 30, 2022, $30,000 and $90,000, respectively, have been paid under this agreement. As of September 30, 2021, $0 has been incurred under this agreement. For the three months ended September 30, 2021 and for the period from June 4, 2021 through September 30, 2021, $0 has been paid under this agreement. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 6 — Commitments and Contingencies Registration Rights The holders of Founder Shares, Private Placement Units and warrants that may be issued upon conversion of Working Capital Loans, if any, will be entitled to registration rights (in the case of the Founder Shares, only after conversion of such shares to shares of Class A common stock) pursuant to a registration rights agreement to be signed on or before the date of the prospectus for the IPO. These holders will be entitled to certain demand and “piggyback” registration rights. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until the termination of the applicable lock-up period for the securities to be registered. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The Company granted the underwriters a 45-day option from the final prospectus relating to the IPO to purchase up to 3,000,000 additional Units to cover over-allotments, if any, at the IPO price less the underwriting discounts and commissions. On October 22, 2021, the underwriters elected to fully exercise the over-allotment option purchasing 3,000,000 Units. The underwriters were paid a cash underwriting discount of $0.20 per unit on the offering not including the Units issued with the underwriter’s exercise of their over-allotment option, or $4,000,000 in the aggregate at the closing of the IPO. The underwriters have agreed to defer the cash underwriting discount of $0.20 per share related to the over-allotment to be paid upon completion of a Business Combination ($600,000 in the aggregate). In addition, the underwriters are entitled to a deferred underwriting commissions of $0.35 per unit, or $8,050,000 from the closing of the IPO. The total deferred fee is $8,650,000 consisting of the $8,050,000 deferred portion and the $600,000 cash discount agreed to be deferred until completion of a Business Combination. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely if the Company completes a Business Combination, subject to the terms of the underwriting agreement. Business Combination Agreement On July 28, 2022, the Company entered into a Business Combination Agreement (as amended by that certain first amendment to the Business Combination Agreement on September 29, 2022, and as it may be further amended, supplemented or otherwise modified from time to time, the “Business Combination Agreement”), by and among the Company, Next.e.GO Mobile SE, a German company (“e.GO”), Next.e.GO B.V., a Dutch private limited liability company and a wholly owned subsidiary of e.GO (“TopCo”), and Time is Now Merger Sub, Inc., a Delaware corporation and wholly owned subsidiary of TopCo (“Merger Sub”), for the Company’s initial Business Combination (the “e.GO Transaction”). Pursuant to the Business Combination Agreement, among other things, (i) TopCo will issue to the e.GO’s equity securities (the “e.GO Shareholders”) and convertible loan lenders of e.GO (the “Lenders”) an aggregate of up to 79,019,608 TopCo Ordinary Shares, representing aggregate consideration to the e.GO Shareholders of $800,000,000, 30,000,000 of such shares will be unvested and subject to an earn-out (the “Earn-Out Shares”), in exchange for the contribution by the e.GO Shareholders of all of the paid up no-par value shares of e.GO to TopCo and the convertible loans held by the Lenders, assuming that all e.GO Shareholders and Lender participate in the exchange; (ii) each issued and outstanding share of the Company’s Class A common stock will be automatically cancelled and extinguished and converted into one share of common stock, par value $0.0001 per share, of the Surviving Company (the “Surviving Company Common Stock”), (iii) each issued and outstanding share of the Company’s Class B common stock will be automatically cancelled and extinguished and converted into a number of shares of Surviving Company Common Stock calculated as the sum of (x) one plus (y) the lower of (a) the total amount funded under the credit agreement, dated September 29, 2022, between e.GO, Brucke Funding LLC, Brucke Agent LLC and certain lenders party thereto (the “Bridge Financing”), divided by $15,000,000 and multiplied with one-fifth and (b) one-fifth; (iv) TopCo will change its legal form from a Dutch private limited liability company ( besloten vennootschap met beperkte aansprakelijkheid naamloze vennootschap Sponsor Letter Agreement On July 28, 2022, the Company, the Sponsor, e.GO, TopCo and certain of the Company’s officers and directors (the “Athena Insiders”) entered into a Sponsor Letter Agreement, which was amended on September 29, 2022 (as it may be further amended, supplemented or otherwise modified from time to time, the “Sponsor Letter Agreement”), pursuant to which, among other things, the Sponsor and the Athena Insiders have agreed to (i) vote all of its, his or her shares of the Company’s Class A common stock to approve and adopt the Business Combination Agreement and the e.GO Transaction, (ii) waive its, his or her redemption rights with respect to its, his or her shares of the Company’s Class A common stock in connection with the e.GO Transaction, (iii) not transfer any of its, his or her shares of the Company’s Class A common stock until the Closing or termination of the Business Combination Agreement (except in limited circumstances), (iv) not transfer (a) with respect to the Sponsor, 75% of its TopCo shares and (b) with respect to all other Athena Insiders any of its, his or her TopCo ordinary shares until the date that is 180 days after the Closing (except in limited circumstances), (v) waive any adjustment to the conversion ratio set forth in the Company’s amended and restated certificate of incorporation or any other anti-dilution or similar protection with respect to the shares of the Company’s Class B common stock held by the Sponsor or the Athena Insiders, in each case, subject to the terms and conditions contemplated by the Sponsor Letter Agreement. Pursuant to the Sponsor Letter Agreement, TopCo will indemnify the Sponsor from and against certain liabilities relating to the e.GO Transaction for a period of six years after the Closing and subject to an aggregate maximum indemnity of $4,000,000. Forward Purchase Agreement On September 29, 2022, the Company, TopCo, e.GO and Vellar Opportunity Fund SPV LLC – Series 3 (“Vellar”) entered into a Forward Purchase Agreement (the “Forward Purchase Agreement”) for an OTC equity prepaid share forward transaction (the “Forward Purchase Transaction”). Vellar has agreed to waive any redemption rights with respect to any shares of the Company and shares of TopCo following the Closing of the e.GO Transaction (collectively, the “Shares”) in connection with the e.GO Transaction. Pursuant to the terms of the Forward Purchase Agreement, Vellar intends, but is not obligated, to purchase through a broker in the open market from Public Stockholders who have redeemed or indicated an intention to redeem, or from the Company, up to an aggregate amount of 15,000,000 shares of Class A common stock (the “Forward Purchase Shares”). Vellar may not beneficially own greater than 9.9% of the Shares on a post-combination pro forma basis. Upon Closing, or upon the date any assets from the Company’s Trust Account are disbursed in connection with the e.GO Transaction, Vellar shall be paid directly, out of the funds held in the Trust Account, an amount equal to (a) (i) the redemption price of shares of the Company’s Class A common stock redeemed by the Public Stockholders and purchased by Vellar, minus (ii) 10% of such amount and (b) the product of 1,500,000 multiplied by the redemption price of shares of the Company’s Class A common stock indicated to the Public Stockholders prior to the redemption deadline (as consideration for having purchased Class A common stock prior to Closing). From time to time following the Closing, Vellar, in its discretion, may sell the Forward Purchase Shares (such shares sold, the “Vellar Terminated Shares”) without payment obligation to TopCo until such time as the proceeds from the sales equal (i) 10% of the product of the number of the Forward Purchase Shares and the redemption price per share indicated to investors ahead of the Company’s redemption notice deadline or (ii) in the case of an event of default under the Bridge Financing, all amounts that are due to Vellar under such financing. Upon the second anniversary of the Closing, TopCo is obligated to pay to Vellar an amount equal to the product of (a) (x) 15,000,000 less (y) the number of Vellar Terminated Shares multiplied by (b) $2.50. Vellar may freely transfer or assign its rights under the Forward Purchase Agreement if the number of the Forward Purchase Shares it acquires would exceed 9.9% on a post-e.GO Transaction basis. |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) | 9 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity (Deficit) | Note 7 — Stockholders’ Deficit Class A Common Stock Pursuant to the e.Go Transaction, if approved by the Company’s stockholders, at Closing, each issued and outstanding share of the Company’s Class A common stock will be automatically cancelled and extinguished and converted into one share the Surviving Company Common Stock. Class B Common Stock Holders of Class A common stock and Class B common stock will vote together as a single class on all other matters submitted to a vote of stockholders except as required by law. The Company’s amended and restated certificate of incorporation provides that the shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the initial Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the IPO and related to the closing of the initial Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, approximately 26.0% of the sum of the total number of all shares of common stock outstanding upon the completion of the IPO 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 and any private placement-equivalent warrants issued to the Sponsor or its affiliates upon conversion of loans made to the Company). Holders of Founder Shares may also elect to convert their shares of Class B common stock into an equal number of shares of Class A common stock, subject to adjustment as provided above, at any time. Pursuant to the e.Go Transaction, if approved by the Company’s stockholders, at Closing, each issued and outstanding shares of Class B common stock will be automatically cancelled and extinguished and converted into a number of shares of Surviving Company Common Stock calculated as the sum of (x) one plus (y) the lower of (a) the total amount funded under the Bridge Financing divided by $15,000,000 and multiplied with one-fifth and (b) one-fifth, and, immediately thereafter, each of the resulting shares of Surviving Company Common Stock will be exchanged for one TopCo Ordinary Share. Preferred Stock Warrants— The Company will not be obligated to deliver any shares of common stock pursuant to the exercise of a Warrant and will have no obligation to settle such Warrant exercise unless a registration statement under the Securities Act with respect to the shares of common stock underlying the Warrants is then effective and a prospectus relating thereto is current, subject to the Company satisfying its obligations with respect to registration. No Warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their Warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption is available. The Company has agreed that as soon as practicable, but in no event later than 15 business days, after the closing of a Business Combination, it will use its best efforts to file, and within 60 business days following a Business Combination to have declared effective, a registration statement covering the offer and sale of the shares of common stock issuable upon exercise of the Warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the Warrants in accordance with the provisions of the warrant agreements. No Warrants will be exercisable for cash unless the Company has an effective and current registration statement covering the offer and sale of the shares of common stock issuable upon exercise of the Warrants and a current prospectus relating to such shares of common stock. Notwithstanding the foregoing, if a registration statement covering the offer and sale of the shares of common stock issuable upon exercise of the Warrants is not effective within a specified period following the consummation of a Business Combination, Warrant holders may, until such time as there is an effective registration statement and during any period when the Company shall have failed to maintain an effective registration statement, exercise Warrants on a cashless basis pursuant to the exemption provided by Section 3(a)(9) of the Securities Act, provided that such exemption is available. If that exemption, or another exemption, is not available, holders will not be able to exercise their Warrants on a cashless basis. Once the Warrants become exercisable, the Company may redeem the Warrants: ● in whole and not in part; ● at a price of $0.01 per Warrant; ● upon not less than 30 days’ prior written notice of redemption, to each Warrant holder; and ● if, and only if, the reported last sale price of the shares of common stock equals or exceeds $18.00 per share (as adjusted for share subdivisions, share consolidations, share capitalizations, rights issuances, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the Warrant holders. If and when the Warrants become redeemable by the Company, the Company may not exercise its redemption right if the issuance of shares upon exercise of the Warrants is not exempt from registration or qualification under applicable state blue sky laws or the Company is unable to effect such registration or qualification. If the Company calls the Warrants for redemption, management will have the option to require all holders that wish to exercise the Warrants to do so on a “cashless basis,” as described in the Public Warrant agreement and Private Warrant agreement. The exercise price and number of shares of common stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, except as described below, the Warrants will not be adjusted for issuances of shares of common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the Warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of Warrants will not receive any of such funds with respect to their Warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such Warrants. Accordingly, the Warrants may expire worthless. In addition, if (x) the Company issues additional shares of common stock or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of 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 Company’s initial Business Combination on the date of the consummation of such initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s shares of common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the Warrants will be adjusted (to the nearest cent) to be equal to 115% of the greater of the Market Value and the Newly Issued Price. The Placement Warrants are identical to the Public Warrants underlying the Units being sold in the IPO, except that the Placement Warrants and the shares of common stock issuable upon the exercise of the Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Placement Warrants will be exercisable at the election of the holder on a “cashless basis”. Neither the Placement Warrants nor the Public Warrants contain any provision that change dependent upon the characteristics of the holder of the Warrant. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8 — Fair Value Measurements The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities: Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based on assessment of the assumptions that market participants would use in pricing the asset or liability. At September 30, 2022 and December 31, 2021, the assets held in the Trust Account were held in treasury funds. All of the Company’s investments held in the Trust Account are classified as trading securities. The following tables present information about the Company’s liabilities that are measured at fair value on a recurring basis at September 30, 2022 and December 31, 2021 and indicate the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Quoted Significant Significant Active Observable Unobservable September 30, 2022 Level (Level 1) (Level 2) (Level 3) Assets: Marketable securities held in Trust Account 1 $ 235,904,801 — — Liabilities: Derivative liability – Forward Purchase Agreement 3 — — $ 1,560,000 Quoted Significant Significant Active Observable Unobservable December 31, 2021 Level (Level 1) (Level 2) (Level 3) Assets: U.S. Treasury Securities 1 $ 234,604,169 — — The Company utilizes a Put Model Option to value its forward purchase agreement at each reporting period, with changes in fair value recognized in the unaudited condensed statements of operations. The estimated fair value of the forward purchase agreement liabilities is determined using Level 3 inputs. Inherent in put options pricing model are assumptions related to expected share-price volatility, expected life and risk-free interest rate. The Company estimates the volatility of its ordinary shares based on historical volatility that matches the expected remaining life of the forward purchase agreement. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant date for a maturity similar to the expected remaining life of the forward purchase agreement. The expected life of the forward purchase agreement is assumed to be equivalent to their remaining contractual term. For the nine months ended September 30, 2022 and December 31, 2021, there were no transfers between Levels 1, 2 or 3. The following table provides quantitative information regarding Level 3 fair value measurements: September 29, September 30, Risk-free interest rate 4.20 % 4.20 % Term 2.51 2.50 Expected volatility 69.80 % 71.50 % Exercise price $ 2.50 $ 2.50 Stock Price $ 10.06 $ 10.06 Probability of transaction 50 % 50.0 % The following table presents the changes in the fair value of Forward Purchase Agreement: Forward Purchase Agreement Fair value as of September 29, 2022 $ 1,430,000 Change in valuation inputs or other assumptions 130,000 Fair value as of September 30, 2022 1,560,000 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 — Subsequent Events The Company evaluated subsequent events and transactions that occurred after the condensed balance sheet date up to the date that the condensed financial statements were issued. Based on this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed financial statements of the Company are presented in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, as filed with the SEC on March 24, 2022. The interim results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the year ending December 31, 2022 or for any future interim periods. |
Emerging Growth Company | Emerging Growth Company The Company is an emerging growth company as defined in Section 102(b)(1) of the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), which exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised, and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with 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 condensed financial statements in conformity with U.S. 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 financial statements and the reported amounts of expenses during the reporting periods. Actual results could differ from those estimates. Making estimates requires management to exercise significant judgment. Such estimates may be subject to change as more current information becomes available and accordingly the actual results could differ significantly from those estimates. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company had $259,269 and $850,615 of cash as of September 30, 2022 and December 31, 2021, respectively, and no cash equivalents. |
Investments Held in Trust Account | Investments Held in Trust Accoun The Company's portfolio of investments held in the Trust Account 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 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 are included in income on investments held in Trust Account in the accompanying unaudited condensed statements of operations. The estimated fair values of investments held in the Trust Account are determined using available market information. As of September 30, 2022 and December 31, 2021, the Company had $235,904,801 and $234,604,169 in investments held in Trust Account, respectively. |
Offering Costs associated with the Initial Public Offering | Offering Costs associated with the Initial Public Offering Offering costs consist principally of legal, accounting, underwriting fees and other costs directly related to the IPO. Offering costs are allocated to the separable financial instruments issued in the IPO based on a relative fair value basis, compared to total proceeds received. Total offering cost amounted to $13,116,818, out of which $12,245,042 was charged against the carrying value of Class A common stock upon the completion of the IPO. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash accounts in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation coverage limit of $250,000. At September 30, 2022 and December 31, 2021, the Company has not experienced losses on these accounts. |
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 the FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying condensed balance sheets, primarily due to their short-term nature. |
Income Taxes | Income Taxes The Company accounts for income taxes under ASC 740, “Income Taxes.” ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the unaudited condensed financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of September 30, 2022 and December 31, 2021, the Company’s deferred tax asset had a full valuation allowance recorded against it. ASC 740-270-25-2 requires that an annual effective tax rate be determined and such annual effective rate applied to year to date income in interim periods under ASC 740-270-30-5. The Company’s effective tax rate was 57.46% and 0.00% for the three months ended September 30, 2022 and 2021, respectively, and 18.87% and 0.00% for the nine months ended September 30, 2022 and for the period from June 4, 2021 to September 2021, respectively. The effective tax rate differs from the statutory tax rate of 21% for the three and nine months ended September 30, 2022 and the three months ended September 30, 2021 and for the period from June 4, 2021 to September 30, 2021, primarily due to the valuation allowance on the deferred tax assets. |
Derivative Liabilities | Derivative Liabilities The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815-15. 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 Company has determined forward purchase agreements are derivative instruments. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position 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. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2022 and December 31, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. |
Class A common stock subject to possible redemption | C lass 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 Topic 480, “Distinguishing Liabilities from Equity.” Shares of Class A common stock subject to mandatory redemption (if any) are classified as a liability instrument and are measured at fair value. Conditionally redeemable Class A common stock (including Class A common stock that features 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) is classified as temporary equity. At all other times, Class A common stock is classified as stockholders’ equity. The Company’s Class A common stock sold in the IPO and over-allotment features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, as of September 30, 2022 and December 31, 2021, 23,000,000 shares of Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ deficit section of the Company’s condensed balance sheets. Under ASC 480-10-S99, the Company has elected to recognize changes in redemption value immediately as they occur and adjust the carrying value of the Class A common stock subject to possible redemption to equal the redemption value at the end of each reporting period. This method would view the end of the reporting period as if it were also the redemption date for the security. Immediately upon 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. Immediately upon the closing of the IPO and over-allotment, the Company recognized the accretion from the initial book value to redemption amount value. This method would view the end of the reporting period as if it were also the redemption date of the security. Immediately upon the closing of the IPO, the Company recognized the accretion from initial book value to redemption amount value. The change in the carrying value of redeemable shares of Class A common stock resulted in charges against additional paid-in capital and accumulated deficit. As of September 30, 2022 and December 31, 2021, the shares of Class A common stock subject to possible redemption reflected on the condensed balance sheets are reconciled on the following table: Gross proceeds $ 230,000,000 Less: Fair value of Public Warrants at issuance (15,310,355 ) Class A shares issuance costs (12,245,042 ) Add: Accretion of carrying value to redemption value 32,155,397 Class A common stock subject to possible redemption at December 31, 2021 234,600,000 Add: Accretion of carrying value to redemption value 1,001,219 Class A common stock subject to possible redemption at September 30, 2022 $ 235,601,219 |
Net Loss per Common Share | Net Loss per Common Share The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock (the “Founder Shares”). Earnings and losses are shared pro rata between the two classes of shares. On September 30, 2022, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share in the earnings of the Company. As a result, diluted loss per common share is the same as basic loss per common share for the period presented. The table below presents a reconciliation of the numerator and denominator used to compute basic and diluted net loss per share for each class of stock. For the three months ended Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ (404,021 ) $ (135,178 ) Denominator: Weighted average shares outstanding 24,060,000 8,050,000 Basic and diluted net loss per share $ (0.02 ) $ (0.02 ) For the nine months ended Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ (1,208,501 ) $ (404,340 ) Denominator: Weighted average shares outstanding 24,060,000 8,050,000 Basic and diluted net loss per share $ (0.05 ) $ (0.05 ) For the three months ended September 30, 2021 Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ - $ (2,416 ) Denominator: Weighted average shares outstanding - 7,000,000 Basic and diluted net loss per share $ (0.00 ) $ (0.00 ) For the period from June 4, 2021 Class A Class B common stock Basic and diluted net loss per share: Numerator: Allocation of net loss $ - $ (3,416 ) Denominator: Weighted average shares outstanding - 7,000,000 Basic and diluted net loss per share $ (0.00 ) $ (0.00 ) |
Accounting for Warrants | Accounting for Warrants The Company accounts for warrants as either equity-classified or liability-classified instruments based on an assessment of the instruments’ specific terms and applicable authoritative guidance in ASC 480 and ASC 815, “Derivatives and Hedging” (“ASC 815”). The assessment considers whether the instruments are free standing financial instruments pursuant to ASC 480, meet the definition of a liability pursuant to ASC 480, and whether the instruments meet all of the requirements for equity classification under ASC 815, including whether the instruments are indexed to the Company’s own common shares and whether the instrument holders could potentially require “net cash settlement” in a circumstance outside of the Company’s control, among other conditions for equity classification. This assessment, which requires the use of professional judgment, was conducted at the time of warrant issuance and as of each subsequent period end date while the instruments are outstanding. Management has concluded that the Public Warrants and Placement Warrants (defined below) issued pursuant to the warrant agreements qualify for equity accounting treatment. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company’s management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s condensed financial statements. |
Franchise Taxes | Franchise Taxes |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of class A common stock reflected on the balance sheet | Gross proceeds $ 230,000,000 Less: Fair value of Public Warrants at issuance (15,310,355 ) Class A shares issuance costs (12,245,042 ) Add: Accretion of carrying value to redemption value 32,155,397 Class A common stock subject to possible redemption at December 31, 2021 234,600,000 Add: Accretion of carrying value to redemption value 1,001,219 Class A common stock subject to possible redemption at September 30, 2022 $ 235,601,219 |
Schedule of basic and diluted net loss per share | For the three months ended Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ (404,021 ) $ (135,178 ) Denominator: Weighted average shares outstanding 24,060,000 8,050,000 Basic and diluted net loss per share $ (0.02 ) $ (0.02 ) For the nine months ended Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ (1,208,501 ) $ (404,340 ) Denominator: Weighted average shares outstanding 24,060,000 8,050,000 Basic and diluted net loss per share $ (0.05 ) $ (0.05 ) For the three months ended September 30, 2021 Class A Class B Basic and diluted net loss per share: Numerator: Allocation of net loss $ - $ (2,416 ) Denominator: Weighted average shares outstanding - 7,000,000 Basic and diluted net loss per share $ (0.00 ) $ (0.00 ) For the period from June 4, 2021 Class A Class B common stock Basic and diluted net loss per share: Numerator: Allocation of net loss $ - $ (3,416 ) Denominator: Weighted average shares outstanding - 7,000,000 Basic and diluted net loss per share $ (0.00 ) $ (0.00 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy of the valuation inputs | Quoted Significant Significant Active Observable Unobservable September 30, 2022 Level (Level 1) (Level 2) (Level 3) Assets: Marketable securities held in Trust Account 1 $ 235,904,801 — — Liabilities: Derivative liability – Forward Purchase Agreement 3 — — $ 1,560,000 Quoted Significant Significant Active Observable Unobservable December 31, 2021 Level (Level 1) (Level 2) (Level 3) Assets: U.S. Treasury Securities 1 $ 234,604,169 — — |
Schedule of provides quantitative information | September 29, September 30, Risk-free interest rate 4.20 % 4.20 % Term 2.51 2.50 Expected volatility 69.80 % 71.50 % Exercise price $ 2.50 $ 2.50 Stock Price $ 10.06 $ 10.06 Probability of transaction 50 % 50.0 % |
Schedule of changes in the fair value of forward purchase agreement | Forward Purchase Agreement Fair value as of September 29, 2022 $ 1,430,000 Change in valuation inputs or other assumptions 130,000 Fair value as of September 30, 2022 1,560,000 |
Description of Organization a_2
Description of Organization and Business Operations (Details) - USD ($) | 1 Months Ended | 4 Months Ended | 9 Months Ended |
Oct. 22, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Description of Organization and Business Operations (Details) [Line Items] | |||
Gross proceeds | $ 25,000 | ||
Offering costs | 13,116,818 | ||
Underwriting fees | 4,000,000 | ||
Deferred underwriting fees | 8,650,000 | ||
Other offering costs | $ 466,818 | ||
Fair market value percentage assets held in the trust account | 80% | ||
Public share price (in Dollars per share) | $ 10.2 | ||
Net tangible assets | $ 5,000,001 | ||
Public share, percentage | 15% | ||
Public shares redeem percentage | 100% | ||
Public share held in the Trust Account. (in Dollars per share) | $ 10.2 | ||
U.S. federal excise tax percentage | 1% | ||
Excise tax percentage | 1% | ||
Operating bank amount | $ 259,269 | ||
Assets held in the trust account | 235,904,801 | ||
Working capital cash | 1,463,466 | ||
Deposit amount | $ 1,399,254 | ||
Ownership [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Business combination acquires percentage | 50% | ||
IPO [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Number of units issued (in Shares) | 23,000,000 | ||
Shares issued price per share (in Dollars per share) | $ 10 | ||
Gross proceeds | $ 230,000,000 | ||
Sale of stock price (in Dollars per share) | $ 10.2 | ||
Net proceeds | $ 234,600,000 | ||
Private Placement [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Number of units issued (in Shares) | 1,060,000 | ||
Sale of stock units (in Shares) | 1,060,000 | ||
Sale of stock price (in Dollars per share) | $ 10 | ||
Generating gross proceeds | $ 10,600,000 | ||
Business Combination [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Deferred underwriting fees | $ 8,650,000 | ||
Business combination, description | If the Company is unable to complete a Business Combination by January 22, 2023, 15 months from the closing of the IPO (“Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account including interest earned on the funds held in the Trust Account and not previously released to us to pay the Company’s franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will completely extinguish Public Stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 4 Months Ended | 7 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2022 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Cash | $ 259,269 | $ 850,615 | $ 259,269 | ||||
Investments held in trust account | 235,904,801 | 234,604,169 | 235,904,801 | ||||
Offering costs | $ 13,116,818 | 13,116,818 | |||||
Federal depository insurance corporation coverage limit | $ 250,000 | ||||||
Effective income tax rate | 57.46% | 0% | 18.87% | 0% | |||
Statutory tax rate | 21% | 21% | 21% | 21% | |||
Common stock subject to possible redemption | 23,000,000 | ||||||
Accrued franchise taxes | $ 150,000 | $ 150,000 | |||||
Refund for prior tax | $ 22,476 | ||||||
Forecast [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Franchise tax liability | $ 200,000 | ||||||
Class A Common Stock [Member] | |||||||
Summary of Significant Accounting Policies (Details) [Line Items] | |||||||
Offering costs | $ 12,245,042 | 12,245,042 | |||||
Common stock subject to possible redemption | $ 23,000,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of class A common stock reflected on the balance sheet - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Schedule Of Class ACommon Stock Reflected On The Balance Sheet Abstract | ||
Gross proceeds | $ 230,000,000 | |
Fair value of Public Warrants at issuance | (15,310,355) | |
Class A shares issuance costs | (12,245,042) | |
Add: Accretion of carrying value to redemption value | $ (1,001,219) | 32,155,397 |
Class A common stock subject to possible redemption at December 31, 2021 | 234,600,000 | |
Add: Accretion of carrying value to redemption value | 1,001,219 | |
Class A common stock subject to possible redemption at September 30, 2022 | $ 235,601,219 | $ 235,601,219 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net loss per share - USD ($) | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Class A Common Stock [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net loss per share [Line Items] | ||||
Allocation of net loss | $ (404,021) | $ (1,208,501) | ||
Weighted average shares outstanding | 24,060,000 | 24,060,000 | ||
Basic net loss per share | $ (0.02) | $ 0 | $ 0 | $ (0.05) |
Class B Common Stock [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net loss per share [Line Items] | ||||
Allocation of net loss | $ (135,178) | $ (2,416) | $ (3,416) | $ (404,340) |
Weighted average shares outstanding | 8,050,000 | 7,000,000 | 7,000,000 | 8,050,000 |
Basic net loss per share | $ (0.02) | $ 0 | $ 0 | $ (0.05) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net loss per share (Parentheticals) - $ / shares | 3 Months Ended | 4 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | |
Class A Common Stock [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net loss per share (Parentheticals) [Line Items] | ||||
Diluted net loss per share | $ (0.02) | $ 0 | $ 0 | $ (0.05) |
Class B Common Stock [Member] | ||||
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net loss per share (Parentheticals) [Line Items] | ||||
Diluted net loss per share | $ (0.02) | $ 0 | $ 0 | $ (0.05) |
Initial Public Offering and O_2
Initial Public Offering and Over-Allotment (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 29, 2022 | |
Initial Public Offering and Over-Allotment (Details) [Line Items] | ||
Price per share | $ 10.06 | $ 10.06 |
Over-Allotment Option [Member] | ||
Initial Public Offering and Over-Allotment (Details) [Line Items] | ||
Sale of units (in Shares) | 23,000,000 | |
Sales price per share | $ 10 | |
Initial Public Offering [Member] | ||
Initial Public Offering and Over-Allotment (Details) [Line Items] | ||
Sale of stock, description | Each Unit consists of one share of Class A common stock (such shares of Class A common stock included in the Units being offered, the “Public Shares”), and one-half a redeemable warrant (each, a “Public Warrant”). | |
Class A Common Stock [Member] | ||
Initial Public Offering and Over-Allotment (Details) [Line Items] | ||
Price per share | $ 11.5 |
Private Placement (Details)
Private Placement (Details) - USD ($) | 1 Months Ended | |
Oct. 22, 2021 | Sep. 30, 2022 | |
Private Placement [Member] | ||
Private Placement (Details) [Line Items] | ||
Sale of units (in Shares) | 1,060,000 | |
Price per share | $ 10 | |
Gross proceeds amount (in Dollars) | $ 10,600,000 | |
Class A Common Stock [Member] | ||
Private Placement (Details) [Line Items] | ||
Price per share | $ 11.5 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jun. 03, 2021 | Jul. 28, 2022 | Sep. 23, 2021 | Jun. 24, 2021 | Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | Oct. 22, 2021 | |
Related Party Transactions (Details) [Line Items] | ||||||||
Sponsor repaid amount | $ 25,000 | |||||||
Sponsor shares (in Shares) | 5,900,000 | |||||||
Stock split description | On September 23, 2021, the Company effected a 1.36440678 for 1 stock split of its common stock so that the Sponsor owns an aggregate of 8,050,000 Founder Shares. | |||||||
Borrowed amount | $ 117,994 | |||||||
Outstanding balance | $ 0 | $ 0 | $ 0 | |||||
Working capital loans description | The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1.5 million of such Working Capital Loans may be convertible into Units of the post Business Combination entity at a price of $10.00 per Unit. | |||||||
Price per shares (in Dollars per share) | $ 10 | $ 10 | ||||||
Sponsor Fees | $ 10,000 | |||||||
Incurred cost | 90,000 | |||||||
Paid for agreement | $ 30,000 | 90,000 | ||||||
Support services incurred amount | $ 0 | $ 0 | ||||||
Maximum [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Ordinary share issued percentage | 75% | |||||||
Minimum [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Ordinary share issued percentage | 25% | |||||||
Founder Shares [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Sponsor paid per share (in Dollars per share) | $ 0.003 | |||||||
Agreed to forfeit (in Shares) | 1,050,000 | |||||||
Sponsor [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Ordinary share issued percentage | 75% | |||||||
Sponsor [Member] | Class B common stock [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Common stock shares (in Shares) | 5,900,000 | |||||||
Promissory Note [Member] | ||||||||
Related Party Transactions (Details) [Line Items] | ||||||||
Aggregate cover expenses | $ 300,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Jul. 28, 2022 | Oct. 22, 2021 | Sep. 30, 2022 | |
Commitments and Contingencies (Details) [Line Items] | |||
Underwriting discount | $ 0.2 | ||
Total deferred fee | 8,650,000 | ||
Deferred portion | 8,050,000 | ||
Deferred cash discount | 600,000 | ||
Aggregate consideration amount | $ 800,000,000 | ||
Unvested Shares (in Shares) | 30,000,000 | ||
Total funded amount | 15,000,000 | ||
Aggregate indemnity amount | $ 4,000,000 | ||
Purchase share percentage | 9.90% | ||
Public stockholders percentage | 10% | ||
Redemption price of share (in Shares) | 1,500,000 | ||
Forward purchase agreement description | Upon the second anniversary of the Closing, TopCo is obligated to pay to Vellar an amount equal to the product of (a) (x) 15,000,000 less (y) the number of Vellar Terminated Shares multiplied by (b) $2.50. Vellar may freely transfer or assign its rights under the Forward Purchase Agreement if the number of the Forward Purchase Shares it acquires would exceed 9.9% on a post-e.GO Transaction basis. | ||
Common Stock [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Converted common stock share (in Shares) | 1 | ||
Common stock per value (in Dollars per share) | $ 0.0001 | ||
Exchanged ordinary share (in Shares) | 1 | ||
Forward Purchase Agreement [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Public stockholders percentage | 10% | ||
Over-Allotment Option [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Additional units (in Shares) | 3,000,000 | ||
Purchasing units (in Shares) | 3,000,000 | ||
Cash underwriting discount price per share (in Dollars per share) | $ 0.2 | ||
Business combination | $ 600,000 | ||
IPO [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Underwriter exercise price | $ 4,000,000 | ||
Underwriting commissions per unit (in Dollars per share) | $ 0.35 | ||
Underwriting commissions | $ 8,050,000 | ||
Aggregate ordinary share (in Shares) | 23,000,000 | ||
Common stock per value (in Dollars per share) | $ 10 | ||
Class A Common Stock [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Converted common stock share (in Shares) | 1 | ||
Class A Common Stock [Member] | Forward Purchase Agreement [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Purchasing units (in Shares) | 15,000,000 | ||
Sponsor [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Ordinary share percentage | 75% | ||
Topco [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Aggregate ordinary share (in Shares) | 79,019,608 | ||
Bridge Financing [Member] | |||
Commitments and Contingencies (Details) [Line Items] | |||
Total funded amount | $ 15,000,000 |
Stockholders_ Equity (Deficit)
Stockholders’ Equity (Deficit) (Details) - USD ($) | 7 Months Ended | 9 Months Ended |
Dec. 31, 2021 | Sep. 30, 2022 | |
Stockholders’ Equity (Deficit) (Details) [Line Items] | ||
Stockholders’ equity , description | The Company’s amended and restated certificate of incorporation provides that the shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the initial Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the IPO and related to the closing of the initial Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, approximately 26.0% of the sum of the total number of all shares of common stock outstanding upon the completion of the IPO 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 and any private placement-equivalent warrants issued to the Sponsor or its affiliates upon conversion of loans made to the Company). Holders of Founder Shares may also elect to convert their shares of Class B common stock into an equal number of shares of Class A common stock, subject to adjustment as provided above, at any time. | |
Total funded amount (in Dollars) | $ 15,000,000 | |
Preferred stock shares authorized | 1,000,000 | 1,000,000 |
Preferred stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Warrants exercisable, description | Once the Warrants become exercisable, the Company may redeem the Warrants: ● in whole and not in part; ● at a price of $0.01 per Warrant; ● upon not less than 30 days’ prior written notice of redemption, to each Warrant holder; and ● if, and only if, the reported last sale price of the shares of common stock equals or exceeds $18.00 per share (as adjusted for share subdivisions, share consolidations, share capitalizations, rights issuances, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date the Company sends the notice of redemption to the Warrant holders. | |
Business combination of common stock, description | In addition, if (x) the Company issues additional shares of common stock or equity-linked securities for capital raising purposes in connection with the closing of its initial Business Combination at an issue price or effective issue price of less than $9.20 per share of 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 Company’s initial Business Combination on the date of the consummation of such initial Business Combination (net of redemptions), and (z) the volume weighted average trading price of the Company’s shares of common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates its initial Business Combination (such price, the “Market Value”) is below $9.20 per share, the exercise price of the Warrants will be adjusted (to the nearest cent) to be equal to 115% of the greater of the Market Value and the Newly Issued Price. | |
Warrants [Member] | ||
Stockholders’ Equity (Deficit) (Details) [Line Items] | ||
Public warrants | 11,500,000 | |
Placement warrants | 530,000 | |
Class A Common Stock [Member] | ||
Stockholders’ Equity (Deficit) (Details) [Line Items] | ||
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock shares outstanding | 1,060,000 | 1,060,000 |
Common stock shares issued | 1,060,000 | 1,060,000 |
Common stock subject to possible redemption, redemption value | 23,000,000 | 23,000,000 |
Class B Common Stock [Member] | ||
Stockholders’ Equity (Deficit) (Details) [Line Items] | ||
Common stock shares authorized | 10,000,000 | 10,000,000 |
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock shares outstanding | 8,050,000 | 8,050,000 |
Common stock shares issued | 8,050,000 | 8,050,000 |
Common stock voting rights | one | one |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of fair value hierarchy of the valuation inputs - USD ($) | 7 Months Ended | 9 Months Ended |
Dec. 31, 2021 | Sep. 30, 2022 | |
Quoted Prices in Active Markets (Level 1) [Member] | Marketable securities held in Trust Account [Member] | ||
Assets: | ||
Fair value assets | $ 235,904,801 | |
Quoted Prices in Active Markets (Level 1) [Member] | Forward Purchase Agreement [Member] | ||
Liabilities: | ||
Derivative liability | ||
Quoted Prices in Active Markets (Level 1) [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Fair value assets | $ 234,604,169 | |
Significant Other Observable Inputs (Level 2) [Member] | Marketable securities held in Trust Account [Member] | ||
Assets: | ||
Fair value assets | ||
Significant Other Observable Inputs (Level 2) [Member] | Forward Purchase Agreement [Member] | ||
Liabilities: | ||
Derivative liability | ||
Significant Other Observable Inputs (Level 2) [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Fair value assets | ||
Significant Other Unobservable Inputs (Level 3) [Member] | Marketable securities held in Trust Account [Member] | ||
Assets: | ||
Fair value assets | ||
Significant Other Unobservable Inputs (Level 3) [Member] | Forward Purchase Agreement [Member] | ||
Liabilities: | ||
Derivative liability | $ 1,560,000 | |
Significant Other Unobservable Inputs (Level 3) [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Fair value assets |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details) - Schedule of provides quantitative information - $ / shares | 9 Months Ended | |
Sep. 30, 2022 | Sep. 29, 2022 | |
Schedule Of Provides Quantitative Information Abstract | ||
Risk-free interest rate | 4.20% | 4.20% |
Term | 2 years 6 months | 2 years 6 months 3 days |
Expected volatility | 71.50% | 69.80% |
Exercise price (in Dollars per share) | $ 2.5 | $ 2.5 |
Stock Price (in Dollars per share) | $ 10.06 | $ 10.06 |
Probability of transaction | 50% | 50% |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details) - Schedule of changes in the fair value of forward purchase agreement | Sep. 30, 2022 USD ($) |
Schedule Of Changes In The Fair Value Of Forward Purchase Agreement Abstract | |
Fair value as of September 29, 2022 | $ 1,430,000 |
Change in valuation inputs or other assumptions | 130,000 |
Fair value as of September 30, 2022 | $ 1,560,000 |