Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 01, 2020 | Jun. 30, 2019 | |
Entity Registrant Name | LF Capital Acquisition Corp. | ||
Entity Central Index Key | 0001721386 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Is Entity a Well-known Seasoned Issuer? | No | ||
Is Entity a Voluntary Filer? | No | ||
Is Entity's Reporting Status Current? | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Emerging Growth Company | true | ||
Entity Small Business | true | ||
Entity Shell Company | true | ||
Entity File Number | 001-38545 | ||
Entity Ex Transition Period | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 158,044,500 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Common Stock Class A | |||
Entity Common Stock, Shares Outstanding | 15,525,000 | ||
Common Stock Class B | |||
Entity Common Stock, Shares Outstanding | 3,881,250 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 161,405 | $ 196,804 |
Prepaid expenses | 304,077 | 43,214 |
Total current assets | 465,482 | 240,018 |
Marketable securities held in Trust Account | 162,019,909 | 159,718,098 |
Total assets | 162,485,391 | 159,958,116 |
Current liabilities: | ||
Accounts payable | 121,516 | 108,292 |
Accrued expenses | 30,610 | 6,500 |
Note payable - related parties | 750,000 | |
Franchise tax payable | 40,000 | 200,000 |
Total current liabilities | 942,126 | 314,792 |
Deferred tax liability | 128,105 | |
Deferred underwriting commissions | 5,433,750 | 5,433,750 |
Total liabilities | 6,503,981 | 5,748,542 |
Class A common stock, $0.0001 par value; 14,461,820 and 14,500,444 shares subject to possible redemption at $10.44 and $10.29 per share at December 31, 2019 and 2018, respectively | 150,981,401 | 149,209,569 |
Stockholders' Equity: | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding at December 31, 2019 and 2018, respectively | ||
Additional paid-in capital | 2,757,412 | 4,529,248 |
Retained earnings | 2,242,103 | 470,267 |
Total stockholders' equity | 5,000,009 | 5,000,005 |
Total Liabilities and Stockholders' Equity | 162,485,391 | 159,958,116 |
Common Stock Class A | ||
Stockholders' Equity: | ||
Common stock value | 106 | 102 |
Total stockholders' equity | 106 | 102 |
Common Stock Class B | ||
Stockholders' Equity: | ||
Common stock value | 388 | 388 |
Total stockholders' equity | $ 388 | $ 388 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Common stock shares redemption | 14,461,820 | 14,500,444 |
Common stock shares redemption price per share | $ 10.44 | $ 10.29 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common Stock Class A | ||
Common stock Par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 1,063,180 | 1,024,556 |
Common stock, outstanding shares | 1,063,180 | 1,024,556 |
Common Stock Class B | ||
Common stock Par value | $ 0.0001 | $ 0.0001 |
Common stock, authorized shares | 15,000,000 | 15,000,000 |
Common stock, issued shares | 3,881,250 | 3,881,250 |
Common stock, outstanding shares | 3,881,250 | 3,881,250 |
Condensed Interim Statements of
Condensed Interim Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
General and administrative expenses | $ 826,307 | $ 586,284 |
Franchise tax expense | 200,000 | 198,617 |
Loss from operations | (1,026,307) | (784,901) |
Interest earned on investments and marketable securities | 3,473,997 | 1,688,934 |
Income before income tax expense | 2,447,690 | 904,033 |
Income tax expense | 675,854 | 311,183 |
Net income | 1,771,836 | 592,850 |
Common Stock Class A | ||
Net income | ||
Weighted average shares outstanding | 15,525,000 | 15,525,000 |
Basic and diluted net loss per share | $ 0.17 | $ 0.08 |
Common Stock Class B | ||
Net income | ||
Weighted average shares outstanding | 3,881,250 | 3,881,250 |
Basic and diluted net loss per share | $ (0.21) | $ (0.15) |
Condensed Statement of Changes
Condensed Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock Class A | Common Stock Class B | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2017 | $ 388 | $ 24,612 | $ (122,583) | $ (97,583) | |
Balance, shares at Dec. 31, 2017 | 3,881,250 | ||||
Sale of units in initial public offering | $ 1,553 | 155,248,447 | 155,250,000 | ||
Sale of units in initial public offering, shares | 15,525,000 | ||||
Offering costs | (9,295,693) | (9,295,693) | |||
Sale of private placement warrants to Sponsor in private placement | 7,760,000 | 7,760,000 | |||
Common stock subject to possible redemption | $ (1,451) | (149,208,118) | (149,209,569) | ||
Common stock subject to possible redemption, shares | (14,500,444) | ||||
Net loss | 592,850 | 592,850 | |||
Balance at Dec. 31, 2018 | $ 102 | $ 388 | 4,529,248 | 470,267 | 5,000,005 |
Balance, shares at Dec. 31, 2018 | 1,024,556 | 3,881,250 | |||
Common stock subject to possible redemption | $ 4 | (1,771,836) | (1,771,832) | ||
Common stock subject to possible redemption, shares | 38,624 | ||||
Net loss | 1,771,836 | 1,771,836 | |||
Balance at Dec. 31, 2019 | $ 106 | $ 388 | $ 2,757,412 | $ 2,242,103 | $ 5,000,009 |
Balance, shares at Dec. 31, 2019 | 1,063,180 | 3,881,250 |
Condensed Interim Statement of
Condensed Interim Statement of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 1,771,836 | $ 592,850 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Deferred tax liabilities | 128,105 | |
Interest earned on investments and marketable securities held in Trust Account | (3,473,528) | (1,687,599) |
Changes in operating assets and liabilities: | ||
Prepaid expenses | (260,863) | (43,214) |
Accounts payable | 13,224 | 14,032 |
Accrued expenses | 24,110 | (7,100) |
Franchise tax payable | (160,000) | 200,000 |
Net cash used in operating activities | (1,957,116) | (931,031) |
Cash Flows from Investing Activities | ||
Principal deposited in Trust Account | (158,355,000) | |
Interest released from Trust Account | 1,171,717 | 324,501 |
Net cash provided by (used in) investing activities | 1,171,717 | (158,030,499) |
Cash Flows from Financing Activities: | ||
Proceeds from note payable to related parties | 750,000 | 260,000 |
Repayment of note payable to related parties | (460,000) | |
Proceeds received from initial public offering | 155,250,000 | |
Offering costs | (3,671,204) | |
Proceeds received from private placement | 7,760,000 | |
Net cash provided by financing activities | 750,000 | 159,138,796 |
Net (decrease) increase in cash | (35,399) | 177,266 |
Cash and cash equivalents - beginning of the period | 196,804 | 19,538 |
Cash and cash equivalents - end of the period | 161,405 | 196,804 |
Supplemental disclosure of noncash investing and financing activities: | ||
Offering costs included in accounts payable | 67,142 | |
Deferred underwriting commissions in connection with the initial public offering | 5,433,750 | |
Reclassification of deferred offering costs to paid-in capital | 178,283 | |
Change in value of Class A common stock subject to possible redemption | 1,771,832 | 149,209,569 |
Supplemental cash flow disclosure: | ||
Cash paid for income taxes | $ 811,467 |
Description of Organization and
Description of Organization and Business Operations | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Organization and Business Operations | Note 1. Description of Organization and Business Operations LF Capital Acquisition Corp. (the “Company”) is a blank check company incorporated in the state of Delaware on June 29, 2017. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses that the Company has not yet identified (“Business Combination”). Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to capitalize on the ability of its management team to focus its search for a target business in the commercial banking and financial technology industries. All activity through December 31, 2019 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), and, since the closing of the Initial Public Offering, a search for a Business Combination candidate. The Company has selected December 31 as its fiscal year end. The registration statement for the Company’s Initial Public Offering was declared effective on June 19, 2018. On June 22, 2018, the Company consummated its Initial Public Offering of 15,525,000 units (each, a “Unit” and collectively, the “Units”), including 2,025,000 Units issued pursuant to the exercise in full of the underwriters’ over-allotment option, at $10.00 per Unit, generating gross proceeds of $155.25 million, and incurring offering costs of approximately $9.3 million, inclusive of $5.4338 million in deferred underwriting commissions (Note 3). Simultaneously with the closing of the Initial Public Offering, the Company consummated the private placement (“Private Placement”) of 7,760,000 warrants (each, a “Private Placement Warrant” and collectively, the “Private Placement Warrants”) at a price of $1.00 per Private Placement Warrant in a private placement to the Sponsor, Level Field Capital, LLC (“Sponsor”) and certain funds and accounts managed by subsidiaries of BlackRock, Inc. (collectively, “anchor investor”), generating gross proceeds of $7.76 million (Note 4). Upon the closing of the Initial Public Offering and Private Placement, $158.355 million ($10.20 per Unit) of the net proceeds of the sale of the Units in the Initial Public Offering and the Private Placement was placed in a trust account (“Trust Account”) and is required to be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 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 its Initial Public Offering and Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The Company’s initial Business Combination must be with one or more target businesses that together have 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 1940, as amended, or the Investment Company Act. The Company will provide its shareholders of Public shares (“Public Shareholders”) 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 shareholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. If, however, shareholder approval of the transaction is required by law or stock exchange listing requirement, or the Company decides to obtain shareholder approval for business or other legal reasons, it will: (i) conduct the redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which regulates the solicitation of proxies, and not pursuant to the tender offer rules; and (ii) file proxy materials with the Securities and Exchange Commission (“SEC”). The public shareholders will be entitled to redeem their Public shares for a pro rata portion of the amount then in the Trust Account (initially approximately $10.20 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations, less up to $100,000 of interest to pay dissolution expenses). The per-share amount to be distributed to public shareholders who redeem their Public shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 6). These Public shares have been recorded at redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” In such case, the Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and a majority of the shares voted are voted in favor of the Business Combination. If a shareholder vote is not required by the law and the Company does not decide to hold a shareholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Articles of incorporation, conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents with the SEC prior to completing a Business Combination. If, however, a shareholder approval of the transactions is required by law, or the Company decides to obtain shareholder approval for business or legal 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. Additionally, each public shareholder may elect to redeem their Public shares irrespective of whether they vote for or against the proposed transaction. If the Company seeks shareholder approval in connection with a Business Combination, the initial stockholders have agreed to vote their founder shares (and any Public shares purchased during or after the Initial Public Offering in favor of a Business Combination. In addition, the initial stockholders have agreed to waive their redemption rights with respect to their founder shares and Public shares in connection with the completion of a Business Combination. Notwithstanding the foregoing, the Company’s Amended and Restated Articles of incorporation provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to more than an aggregate of 20% or more of the Class A common stock sold in the Initial Public Offering, without the prior consent of the Company. If the Company is unable to complete a Business Combination on June 22, 2020 (the “Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than ten business days thereafter, redeem 100% of the outstanding Public shares which redemption will completely extinguish public stockholders’ rights as shareholders (including the right to receive further liquidation distributions, if any), subject to applicable law and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining shareholders and the Company’s board of directors, proceed to commence a voluntary liquidation and thereby a formal dissolution of the Company, subject in each case to its obligations to provide for claims of creditors and the requirements of applicable law. In connection with the redemption of 100% of the Company’s outstanding Public shares for a portion of the funds held in the Trust Account, each holder will receive a full pro rata portion of the amount then in the Trust Account, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay for its franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses). 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 Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public shares if the Company fails to complete a Business Combination within the Combination Period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 6) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period and, in such event, such amounts will be included with the funds held in the Trust Account that will be available to fund the redemption of the Company’s 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 share initially held in the Trust Account (or less than that in certain circumstances). In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company, jointly and severally, 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 Initial Public Offering 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 (other than the Company’s independent auditors), prospective target businesses or other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Liquidity As of December 31, 2019, the Company had approximately $161,000 in its operating bank accounts, and working capital deficit of approximately $477,000. Subsequent to the consummation of the Initial Public Offering and Private Placement, the Company’s liquidity needs have been satisfied through the proceeds from the consummation of the Private Placement not held in Trust Account, interest earned released from the Trust Account to pay for its tax obligations, and loans from the Sponsor. 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 officers and directors may, but are not obligated to, provide the Company Working Capital Loans (see Note 5). The Working Capital Loans will either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. On March 4, 2019, the Company issued a convertible note (“Convertible Note”) to the Sponsor, pursuant to which the Sponsor agreed to provide a Working Capital Loan to the Company of up to $1.5 million. The Company was provided $400,000, $350,000 and $130,000 in loan proceeds on March 4, 2019, August 19, 2019 and January 10, 2020, respectively, for an aggregate amount of $880,000, pursuant to the amended Convertible Note (see Note 5). In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern”, management has determined that the mandatory liquidation and subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern after June 22, 2020. Management plans to address this uncertainty through the consummation of a Business Combination. However, there is no assurance that the Company will be able to consummate a Business Combination within the Combination Period. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after June 22, 2020. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies Basis of presentation The Company’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. Emerging growth company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when acquired to be cash equivalents. Marketable Securities The Company’s portfolio of marketable securities is comprised solely of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 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, classified as trading securities. Trading securities are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is recognized as gains or losses in the accompanying Statements of Operations. The estimated fair values of financial instruments are determined using available market information. Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents and marketable securities held for trading. Cash and cash equivalents are maintained in accounts with financial institutions, which, at times may exceed the Federal depository insurance coverage of $250,000. At December 31, 2019 and 2018, the Company had not experienced losses on this account and management believes the Company is not exposed to significant credit risks on such account. The Company’s marketable securities portfolio consists of U.S Treasury Bills and money market funds with an original maturity of 180 days or less. Fair value of financial instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature. Marketable securities are classified as trading securities and are therefore recognized at fair value. The fair value for trading securities is determined using quoted market prices. Fair Value Measurements Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: • Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; • Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. ASC 820, Fair Value Measurement and Disclosures, requires all entities to disclose the fair value of financial instruments, both assets and liabilities for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of December 31, 2019 and 2018, the recorded values of cash and cash equivalents, prepaid expenses, accounts payable, accrued expenses, and note payable to related parties approximate the fair values due to the short-term nature of the instruments. The Company’s portfolio of marketable securities is comprised of an investment in U.S Treasury Bills and money market fund with an original maturity of 180 days or less. The fair value for trading securities is determined using quoted market prices. Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity.” Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable Class A common stock (including Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, shares of Class A common stock are classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, at December 31, 2019 and 2018, 14,461,820 and 14,500,444 shares of Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheets, respectively. Net Income (Loss) per Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding for the period. The Company has not considered the effect of the warrants sold in the Initial Public Offering and Private Placement to purchase an aggregate of 23,285,000 shares of Class A common stock in the calculation of diluted earnings per share, since their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted earnings per share is the same as basic earnings per share for the period. The Company’s statements of operations include a presentation of income (loss) per share for common stock subject to redemption in a manner similar to the two-class method of income (loss) per share. Net income (loss) per share, basic and diluted for Class A common stock is calculated by dividing the interest income earned on the Trust Account, net of applicable taxes, by the weighted average number of shares of Class A common stock outstanding since the initial issuance. Net income (loss) per share, basic and diluted for Class B common stock is calculated by dividing the net income (loss), less income attributable to Class A common stock, by the weighted average number of shares of Class B common stock outstanding for the periods. Reconciliation of net income (loss) per common stock The Company’s net income is adjusted for the portion of income that is attributable to Class A common stock subject to redemption, as these shares only participate in the earnings of the Trust Account (less applicable taxes) and not the income or losses of the Company. Accordingly, basic and diluted income per Class A common stock is calculated as follows: For the Years Ended December 31, 2019 2018 Net income $ 1,771,836 $ 592,850 Less: Income attributable to Class A common stock (2,598,143 ) (1,179,134 ) Adjusted net loss attributable to Class B common stock $ (826,307 ) $ (586,284 ) Weighted average shares outstanding of Class A common stock 15,525,000 15,525,000 Basic and diluted net income per share, Class A $ 0.17 $ 0.08 Weighted average shares outstanding of Class B common stock 3,881,250 3,881,250 Basic and diluted net loss per share, Class B $ (0.21 ) $ (0.15 ) Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of December 31, 2019 and 2018. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at December 31, 2019 and 2018. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. Recent Accounting Pronouncements 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 financial statements. |
Initial Public Offering
Initial Public Offering | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Initial Public Offering | Note 3. Initial Public Offering On June 22, 2018, the Company sold 15,525,000 Units at a price of $10.00 per Unit in the Initial Public Offering. Each Unit consists of one Class A common stock and one redeemable warrant (“Public Warrant”). Each Public Warrant will entitle the holder to purchase one Class A share at an exercise price of $11.50 per share, subject to adjustment (see Note 7). |
Private Placement
Private Placement | 12 Months Ended |
Dec. 31, 2019 | |
Notes to Financial Statements | |
Private Placement | Note 4. Private Placement Concurrently with the closing of the Initial Public Offering, the Sponsor and the anchor investor purchased an aggregate of 7,760,000 Private Placement Warrants at $1.00 per warrant ($7.76 million in the aggregate) in a private placement. Among the Private Placement Warrants, 7,209,560 warrants were purchased by the Sponsor and 550,440 warrants were purchased by the anchor investor. Each Private Placement Warrant is exercisable to purchase one Class A share at $11.50 per share. A portion of the proceeds from the Private Placement Warrants was added to the proceeds from the Initial Public Offering to be held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the Private Placement Warrants will expire worthless. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 5. Related Party Transactions Founder Shares In August 2017, the Company issued an aggregate of 4,312,500 shares of Class B common stock to the Sponsor in exchange for an aggregate capital contribution of $25,000. In February 2018, the Sponsor forfeited 431,250 founder shares, resulting in a decrease in the total number of founder shares from 4,312,500 to 3,881,250. All share amounts presented in the financial statements have been retroactively restated to reflect these share forfeitures. In June 2018, the Sponsor forfeited 267,300 founder shares and the anchor investor purchased 267,300 founder shares for an aggregate purchase price of $1,980. Of the 3,881,250 founder shares, the Sponsor had agreed to forfeit an aggregate of up to 506,250 founder shares to the extent that the over-allotment option is not exercised in full by the underwriters. As of June 22, 2018, the underwriter exercised its over-allotment option in full, hence, these 506,250 shares were no longer subject to forfeiture. The founder shares will automatically convert into Class A common stock upon the consummation of a Business Combination on a one-for-one basis, subject to adjustment (see Note 7). The initial stockholders agreed not to transfer, assign or sell any of their founder shares until the earliest of (a) one year after the completion of the initial Business Combination, (b) subsequent to the initial Business Combination, if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, or (C) following the completion of the initial Business Combination, such future date on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of our public stockholders having the right to exchange their common stock for cash, securities or other property. If the anchor investor does not own the number of Public Units equal to 1,336,500 at the time of any stockholder vote with respect to an initial Business Combination or the business day immediately prior to the consummation of the initial Business Combination, the anchor investor will forfeit up to 267,300 founder shares on a pro rata basis. In such case, the Sponsor will repurchase all or a portion of the Private Placement Warrants held by the anchor investor at its original purchase price. Office Space and Related Support Services The Company agreed, commencing on the effective date of the Initial Public Offering in June 2018 through the earlier of the Company’s consummation of a Business Combination and its liquidation, to pay our Sponsor or an affiliate of our Sponsor a monthly fee of $10,000 for office space, utilities and secretarial and administrative support. The Company incurred $120,000 and $60,000 in expenses in connection with such services during the years ended December 31, 2019 and 2018 as reflected in the accompanying Statements of Operations. Board Member Agreement In September 2017, the Company entered into an agreement with B. Prot Conseils, an entity controlled by Mr. Baudouin Prot, one of its board members, pursuant to which the board member will be paid a cash fee of $150,000 per annum in exchange for his service. The agreement was effective as of October 1, 2017 and last until the earlier of December 2019. The Company incurred $150,000 in fees related to this service during each of the years ended December 31, 2019 and 2018 in the accompanying Statements of Operations. On February 20, 2020, the Company has agreed to amend its arrangement with Mr. Prot, pursuant to which no further monthly fees will be paid on a current monthly basis to Mr. Prot, however, if the Company completes its acquisition of a target company prior to June 18, 2020, the Company shall pay Mr. Prot $12,500 for each month Mr. Prot has continued to provide services to the Company since January 1, 2020. If the Company does not complete its acquisition of a target company prior to June 18, 2020 then no further fees will be payable to Mr. Prot following December 31, 2019. Promissory Note - Related Party The Sponsor had agreed to loan the Company an aggregate of up to $300,000 to be used for the payment of costs related to the Initial Public Offering. In April 2018, the Sponsor amended the note to increase the principal amount to $500,000. The loan was non-interest bearing, unsecured and due on the earlier of December 31, 2018 or the closing of the Initial Public Offering. The Company fully repaid the loan from the proceeds of the Initial Public Offering not being placed in the Trust Account on June 22, 2018. Related Party Loans 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 agreed to loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. There were no Working Capital Loans outstanding as of December 31, 2018. On March 4, 2019, the Company issued a convertible note (“Convertible Note”) to the Sponsor, pursuant to which the Sponsor agreed to provide a Working Capital Loan to the Company of up to $1.5 million. The Company was provided $400,000 and $350,000 in loan proceeds on March 4, 2019 and August 19, 2019, for an aggregate amount of $750,000, pursuant to the amended Convertible Note. On January 10, 2020, the Company received an additional loan proceed of $130,000 and increased the total amount outstanding under the Convertible Note to $880,000. |
Commitments & Contingencies
Commitments & Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments & Contingencies | Note 6. Commitments & Contingencies Registration Rights The holders of the founder shares and Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any Class A common stock issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans) 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 prior to or on the effective date of the Initial Public Offering. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the consummation of a Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The underwriters were entitled to an underwriting discount of $0.20 per unit, or $3.105 million in the aggregate, paid upon the closing of the Initial Public Offering. Additionally, a deferred underwriting discount of $0.35 per unit, or $5.434 million in the aggregate will be payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' equity | Note 7. Stockholders’ equity Class A Common stock The Company is authorized to issue 100,000,000 shares of Class A common stock with a par value of $0.0001 per share. At December 31, 2019 and 2018, there were 15,525,000 Class A common stock issued or outstanding, including 14,461,820 and 14,500,444 share of Class A common stock subject to possible redemption, respectively. Holders of the Class A common stock and holders of the Class B common stock will vote together as a single class on all matters submitted to a vote of our stockholders, except as required by law. Each share of common stock will have one vote on all such matters. Class B Common stock The Company is authorized to issue 15,000,000 shares of Class B common stock with a par value of $0.0001 per share. In August 2017, the Company initially issued 4,312,500 Class B common stock. In February 2018, in connection with the decrease of the size of the Initial Public Offering, the Sponsor forfeited 431,250 shares of Class B common stock, resulting in a decrease in the total number of founder shares from 4,312,500 to 3,881,250. All share amounts presented in the financial statements have been retroactively restated to reflect these share forfeitures. Of the 3,881,250 shares of Class B common stock, an aggregate of up to 506,250 shares were subject to forfeiture to the Company by the Sponsor for no consideration to the extent that the underwriters’ over-allotment option was not exercised in full. As of June 22, 2018, the underwriter exercised its over-allotment option in full, hence, these 506,250 shares were no longer subject to forfeiture. At December 31, 2019 and 2018, there were 3,881,250 Class B common stock issued or outstanding. The Class B common stock will automatically convert into Class A common stock on the first business day following the consummation of the initial Business Combination on a one-for-one basis, subject to adjustment. In the case that additional Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts sold in the Initial Public Offering and related to the closing of the initial Business Combination, the ratio at which the Class B common stock shall convert into 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, including a specified future issuance) so that the number of Class A common stock issuable upon conversion of all Class B common stock will equal, in the aggregate, 20% of the sum of the total number of all common stock outstanding upon the completion of the Initial Public Offering plus all 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. Preferred Stock The Company is authorized to issue 1,000,000 preferred shares with a par value of $0.0001 per share. At December 31, 2019 and 2018, there are no preferred shares issued or outstanding. Warrants At December 31, 2019 and 2018 there are 23,285,000 outstanding warrants, consisting of 15,525,000 Public Warrants and 7,760,000 Private Placement Warrants, each warrant exercisable at $11.50 into one share of Class A common stock. The Public Warrants will become exercisable on the later of (a) 30 days after the completion of a Business Combination or (b) 12 months from the closing of the Initial Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the Class A common stock issuable upon exercise of the Public Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Public Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Company has agreed that as soon as practicable, but in no event later than 15 business days, after the closing of a Business Combination, the Company will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the Class A common stock issuable upon exercise of the Public Warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the Public Warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective by the sixtieth (60th) day after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. The Public Warrants will expire five years after the completion of a Business Combination or earlier upon redemption or liquidation. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the Class A common stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the Private Placement Warrants are held by someone other than the initial stockholders or their permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Public Warrants. The Company may call the Public Warrants for redemption (except with respect to the Private Placement Warrants): • in whole and not in part; • at a price of $0.01 per warrant; • upon a minimum of 30 days’ prior written notice of redemption; and • if, and only if, the last reported closing price of the shares equals or exceeds $18.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. If the Company calls the Public Warrants for redemption, management will have the option to require all holders that wish to exercise the Public Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of Class A shares 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, the warrants will not be adjusted for issuance of Class A shares at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants shares. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with the respect to such warrants. Accordingly, the warrants may expire worthless. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8. Fair Value Measurements The following table presents information about the Company’s assets that are measured on a recurring basis as of December 31, 2019 and 2018 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value. Quoted Prices in Active Significant Other Significant Other Description (Level 1) (Level 2) (Level 3) Assets held in Trust at December 31, 2019: U.S. Treasury Securities $ 161,991,526 $ - $ - Money market funds 28,383 - - $ 162,019,909 $ - $ - Description Quoted Prices in Active (Level 1) Significant Other (Level 2) Significant Other (Level 3) Assets held in Trust at December 31, 2018: Money market fund $ 159,718,098 $ — $ — $ 159,718,098 $ — $ — Transfers to/from Levels 1, 2, and 3 are recognized at the end of the reporting period. There were no transfers between levels for the years ended December 31, 2019 and 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes The Company’s financial statements include total net income (loss) before taxes of approximately $2.4 million and approximately $0.9 million for the years ended December 31, 2019 and 2018, respectively. The income tax provision consists of the following: December 31 2019 2018 Federal Current 547,749 311,183 Deferred (40,546 ) (119,993 ) State and Local Current - - Deferred - 13,984 Change in Valuation allowance 168,651 106,009 Income tax provision (benefit) 675,854 311,183 Reconciliations of the differences between the provision/(benefit) for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows: 2019 2018 Amount Percent of Amount Percent of Current tax at U.S. statutory rate 514,015 21.00 % 189,847 21.00 % Nondeductible/nontaxable items 2,436 0.10 % 1,343 0.15 % State taxes, net of federal benefit - 0.00 % - 0.00 % State effect of perm items - 0.00 % - 0.00 % Valuation allowance activity 168,651 6.89 % 106,009 11.72 % Deferred rate change - 0.00 % 13,984 1.55 % Current/deferred rate differential - 0.00 % - 0.00 % Federal payable true-up (9,248 ) -0.38 % - 0.00 % Other 1 0.00 % - 0.00 % Total Income Tax Provision/(Benefit) 675,854 27.61 % 311,183 34.42 % The components of deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: December 31 2019 2018 Deferred tax assets: Unrealized gain/loss - - Start-up cost 313,660 145,009 Total deferred tax assets 313,660 145,009 Valuation allowance (313,660 ) (145,009 ) Deferred tax liabilities Unrealized gain/loss (128,105 ) - Net Deferred tax assets/(liabilities), net of allowance (128,105 ) - As of December 31, 2019 and 2018, the Company has concluded that it is more likely than not that the Company will not realize the benefit of its deferred tax assets associated with start-up costs. Start-up costs cannot be amortized against future operating income until a business combination has occurred. Therefore, a full valuation allowance has been established prior to the company completing a business combination, as future events such as business combinations cannot be considered when assessing the realizability of Deferred Tax Assets and when the probability of a special purpose acquisition company consummating a business combination is less than 51%. In addition, a reliable forecast of trust investment income and start-up costs expected to be incurred in the period/s prior to a business combination or a dissolution and liquidation is not practicable. Accordingly, the net deferred tax assets have been fully reserved. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 10. Subsequent Events On January 10, 2020, the Company received an additional loan proceed of $130,000 and increased the total amount outstanding under the Convertible Note to $880,000. On February 20, 2020, the Company has agreed to amend its arrangement with Mr. Prot, pursuant to which no further monthly fees will be paid on a current monthly basis to Mr. Prot, however, if the Company completes its acquisition of a target company prior to June 18, 2020, the Company shall pay Mr. Prot $12,500 for each month Mr. Prot has continued to provide services to the Company since January 1, 2020. If the Company does not complete its acquisition of a target company prior to June 18, 2020 then no further fees will be payable to Mr. Prot following December 31, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The Company’s financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include all adjustments necessary for the fair presentation of the Company’s financial position for the periods presented. |
Emerging growth company | Emerging growth company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Cash and cash equivalents | Cash and cash equivalents The Company considers all highly liquid investments with an original maturity of three months or less when acquired to be cash equivalents. |
Marketable Securities | Marketable Securities The Company’s portfolio of marketable securities is comprised solely of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 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, classified as trading securities. Trading securities are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is recognized as gains or losses in the accompanying Statements of Operations. The estimated fair values of financial instruments are determined using available market information. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Company to concentration of credit risk consist of cash and cash equivalents and marketable securities held for trading. Cash and cash equivalents are maintained in accounts with financial institutions, which, at times may exceed the Federal depository insurance coverage of $250,000. At December 31, 2019 and 2018, the Company had not experienced losses on this account and management believes the Company is not exposed to significant credit risks on such account. The Company’s marketable securities portfolio consists of U.S Treasury Bills and money market funds with an original maturity of 180 days or less. |
Fair value of financial instruments | Fair value of financial instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature. Marketable securities are classified as trading securities and are therefore recognized at fair value. The fair value for trading securities is determined using quoted market prices. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: • Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; • Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and • Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. ASC 820, Fair Value Measurement and Disclosures, requires all entities to disclose the fair value of financial instruments, both assets and liabilities for which it is practicable to estimate fair value, and defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. As of December 31, 2019 and 2018, the recorded values of cash and cash equivalents, prepaid expenses, accounts payable, accrued expenses, and note payable to related parties approximate the fair values due to the short-term nature of the instruments. The Company’s portfolio of marketable securities is comprised of an investment in U.S Treasury Bills and money market fund with an original maturity of 180 days or less. The fair value for trading securities is determined using quoted market prices. |
Class A Common Stock Subject to Possible Redemption | Class A Common Stock Subject to Possible Redemption The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing Liabilities from Equity.” Class A common stock subject to mandatory redemption (if any) are classified as liability instruments and are measured at fair value. Conditionally redeemable Class A common stock (including Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, shares of Class A common stock are classified as stockholders’ equity. The Company’s Class A common stock features certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, at December 31, 2019 and 2018, 14,461,820 and 14,500,444 shares of Class A common stock subject to possible redemption are presented as temporary equity, outside of the stockholders’ equity section of the Company’s balance sheets, respectively. |
Net Income (Loss) per Share | Net Income (Loss) per Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Net income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of shares of common stock outstanding for the period. The Company has not considered the effect of the warrants sold in the Initial Public Offering and Private Placement to purchase an aggregate of 23,285,000 shares of Class A common stock in the calculation of diluted earnings per share, since their inclusion would be anti-dilutive under the treasury stock method. As a result, diluted earnings per share is the same as basic earnings per share for the period. The Company’s statements of operations include a presentation of income (loss) per share for common stock subject to redemption in a manner similar to the two-class method of income (loss) per share. Net income (loss) per share, basic and diluted for Class A common stock is calculated by dividing the interest income earned on the Trust Account, net of applicable taxes, by the weighted average number of shares of Class A common stock outstanding since the initial issuance. Net income (loss) per share, basic and diluted for Class B common stock is calculated by dividing the net income (loss), less income attributable to Class A common stock, by the weighted average number of shares of Class B common stock outstanding for the periods. |
Reconciliation of net income (loss) per common stock | Reconciliation of net income (loss) per common stock The Company’s net income is adjusted for the portion of income that is attributable to Class A common stock subject to redemption, as these shares only participate in the earnings of the Trust Account (less applicable taxes) and not the income or losses of the Company. Accordingly, basic and diluted income per Class A common stock is calculated as follows: For the Years Ended December 31, 2019 2018 Net income $ 1,771,836 $ 592,850 Less: Income attributable to Class A common stock (2,598,143 ) (1,179,134 ) Adjusted net loss attributable to Class B common stock $ (826,307 ) $ (586,284 ) Weighted average shares outstanding of Class A common stock 15,525,000 15,525,000 Basic and diluted net income per share, Class A $ 0.17 $ 0.08 Weighted average shares outstanding of Class B common stock 3,881,250 3,881,250 Basic and diluted net loss per share, Class B $ (0.21 ) $ (0.15 ) |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of December 31, 2019 and 2018. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties at December 31, 2019 and 2018. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Table)) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Reconciliation of net loss per common stock | Accordingly, basic and diluted income per Class A common stock is calculated as follows: For the Years Ended December 31, 2019 2018 Net income $ 1,771,836 $ 592,850 Less: Income attributable to Class A common stock (2,598,143 ) (1,179,134 ) Adjusted net loss attributable to Class B common stock $ (826,307 ) $ (586,284 ) Weighted average shares outstanding of Class A common stock 15,525,000 15,525,000 Basic and diluted net income per share, Class A $ 0.17 $ 0.08 Weighted average shares outstanding of Class B common stock 3,881,250 3,881,250 Basic and diluted net loss per share, Class B $ (0.21 ) $ (0.15 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets measured on a recurring basis | The following table presents information about the Company’s assets that are measured on a recurring basis as of December 31, 2019 and 2018 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value. Quoted Prices in Active Significant Other Significant Other Description (Level 1) (Level 2) (Level 3) Assets held in Trust at December 31, 2019: U.S. Treasury Securities $ 161,991,526 $ - $ - Money market funds 28,383 - - $ 162,019,909 $ - $ - Description Quoted Prices in Active (Level 1) Significant Other (Level 2) Significant Other (Level 3) Assets held in Trust at December 31, 2018: Money market fund $ 159,718,098 $ — $ — $ 159,718,098 $ — $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The income tax provision consists of the following: December 31 2019 2018 Federal Current 547,749 311,183 Deferred (40,546 ) (119,993 ) State and Local Current - - Deferred - 13,984 Change in Valuation allowance 168,651 106,009 Income tax provision (benefit) 675,854 311,183 |
Reconciliation between provision/(benefit) for income taxes and income taxes at statutory U.S. federal income tax rate | Reconciliations of the differences between the provision/(benefit) for income taxes and income taxes at the statutory U.S. federal income tax rate is as follows: 2019 2018 Amount Percent of Amount Percent of Current tax at U.S. statutory rate 514,015 21.00 % 189,847 21.00 % Nondeductible/nontaxable items 2,436 0.10 % 1,343 0.15 % State taxes, net of federal benefit - 0.00 % - 0.00 % State effect of perm items - 0.00 % - 0.00 % Valuation allowance activity 168,651 6.89 % 106,009 11.72 % Deferred rate change - 0.00 % 13,984 1.55 % Current/deferred rate differential - 0.00 % - 0.00 % Federal payable true-up (9,248 ) -0.38 % - 0.00 % Other 1 0.00 % - 0.00 % Total Income Tax Provision/(Benefit) 675,854 27.61 % 311,183 34.42 % |
Schedule of deferred income tax assets and liabilities | The components of deferred tax assets and liabilities as of December 31, 2019 and 2018 are as follows: December 31 2019 2018 Deferred tax assets: Unrealized gain/loss - - Start-up cost 313,660 145,009 Total deferred tax assets 313,660 145,009 Valuation allowance (313,660 ) (145,009 ) Deferred tax liabilities Unrealized gain/loss (128,105 ) - Net Deferred tax assets/(liabilities), net of allowance (128,105 ) - |
Description of Organization a_2
Description of Organization and Business Operations (Details Narrative) - USD ($) | Jan. 10, 2020 | Mar. 04, 2019 | Aug. 19, 2019 | Jun. 22, 2018 | Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Sale of units per share | $ 10.20 | |||||||
Sale of units in initial public offering aggragate amount | $ 155,250,000 | |||||||
Deferred underwriting commissions | $ 5,433,750 | 5,433,750 | ||||||
Offering costs | 9,295,693 | |||||||
Cash placed in a trust account | $ 162,019,909 | 159,718,098 | ||||||
Percentage of asset held in trust account | 80.00% | |||||||
Business combination, percentage of voting securities | 50.00% | |||||||
Tax obligation, maximum amount | $ 100,000 | |||||||
Business Combination, minimum amount of net tangible assets | 5,000,001 | |||||||
Cash | 161,405 | $ 196,804 | $ 19,538 | |||||
Woking capital | $ 477,000 | |||||||
Working capital loan repayment description | The Working Capital Loans will either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. On March 4, 2019, the Company issued a convertible note (“Convertible Note”) to the Sponsor, pursuant to which the Sponsor agreed to provide a Working Capital Loan to the Company of up to $1.5 million. The Company was provided $400,000 and $350,000 in loan proceeds on March 4, 2019 and August 19, 2019, respectively, for an aggregate amount of $750,000, pursuant to the amended Convertible Note (see Note 5). | |||||||
Proceeds from Convertible debt | $ 880,000 | |||||||
Sponsor [Member] | ||||||||
Working capital loan repayment description | The Sponsor had agreed to loan the Company an aggregate of up to $300,000 | |||||||
Working Capital Loan | $ 1,500,000 | |||||||
Proceeds from Convertible debt | $ 400,000 | $ 350,000 | ||||||
Subsequent Event [Member] | ||||||||
Proceeds from Convertible debt | $ 130,000 | |||||||
Private Placement Warrants [Member] | ||||||||
Sale of units in initial public offering | 7,760,000 | |||||||
Sale of units in initial public offering aggragate amount | $ 7,760,000 | |||||||
Warrants price per share | $ 1 | |||||||
Private Placement Warrants [Member] | Sponsor [Member] | ||||||||
Sale of units in initial public offering | 7,209,560 | |||||||
Over-Allotment Option [Member] | ||||||||
Sale of units in initial public offering | 2,025,000 | |||||||
Initial Public Offering [Member] | ||||||||
Sale of units in initial public offering | 15,525,000 | |||||||
Sale of units per share | $ 10 | |||||||
Sale of units in initial public offering aggragate amount | $ 155,250,000 | |||||||
Warrants price per share | $ 1 | |||||||
Deferred underwriting commissions | $ 5,433,800 | |||||||
Offering costs | $ 9,300,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details)) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net income (loss) | $ 1,771,836 | $ 592,850 |
Less: Income attributable to Class A common stock | (2,598,143) | (1,179,134) |
Adjusted net income (loss) attributable to Class B common stock | (826,307) | (586,284) |
Common Stock Class A | ||
Net income (loss) | ||
Weighted average shares outstanding | 15,525,000 | 15,525,000 |
Basic and diluted net income (loss) per share | $ 0.17 | $ 0.08 |
Common Stock Class B | ||
Net income (loss) | ||
Weighted average shares outstanding | 3,881,250 | 3,881,250 |
Basic and diluted net income (loss) per share | $ (0.21) | $ (0.15) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Federal depository insurance coverage | $ 250,000 | |
Common stock shares redemption | 14,461,820 | 14,500,444 |
Initial Public Offering (Detail
Initial Public Offering (Details Narrative) - $ / shares | 1 Months Ended | |
Jun. 22, 2018 | Dec. 31, 2019 | |
Sale of units per share | $ 10.20 | |
Initial Public Offering [Member] | ||
Sale of units in initial public offering | 15,525,000 | |
Sale of units per share | $ 10 | |
Warrants exercise price share | $ 11.50 |
Private Placement (Details Narr
Private Placement (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended |
Jun. 22, 2018 | Dec. 31, 2018 | |
Sale of private placement warrants aggregate amount | $ 155,250,000 | |
Private Placement Warrants [Member] | ||
Sale of private placement warrants, shares | 7,760,000 | |
Sale of private placement warrants aggregate amount | $ 7,760,000 | |
Warrants price per share | $ 1 | |
Warrants exercise price share | $ 11.50 | |
Initial Public Offering [Member] | ||
Sale of private placement warrants, shares | 15,525,000 | |
Sale of private placement warrants aggregate amount | $ 155,250,000 | |
Warrants price per share | $ 1 | |
Warrants exercise price share | $ 11.50 | |
Sponsor [Member] | Private Placement Warrants [Member] | ||
Sale of private placement warrants, shares | 7,209,560 | |
Investor [Member] | Private Placement Warrants [Member] | ||
Sale of private placement warrants, shares | 550,440 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | Jan. 10, 2020 | Mar. 04, 2019 | Feb. 20, 2020 | Aug. 19, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Apr. 30, 2018 | Feb. 28, 2018 | Aug. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2019 |
Related party agreement description | The Working Capital Loans will either be repaid upon consummation of a Business Combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post Business Combination entity at a price of $1.00 per warrant. The warrants would be identical to the Private Placement Warrants. On March 4, 2019, the Company issued a convertible note (“Convertible Note”) to the Sponsor, pursuant to which the Sponsor agreed to provide a Working Capital Loan to the Company of up to $1.5 million. The Company was provided $400,000 and $350,000 in loan proceeds on March 4, 2019 and August 19, 2019, respectively, for an aggregate amount of $750,000, pursuant to the amended Convertible Note (see Note 5). | |||||||||||
Proceeds from Convertible debt | $ 880,000 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Proceeds from Convertible debt | $ 130,000 | |||||||||||
Convertible debt | $ 880,000 | |||||||||||
Sponsor [Member] | ||||||||||||
Monthly fee for office space, utilities and administrative support | 10,000 | |||||||||||
Related party agreement description | The Sponsor had agreed to loan the Company an aggregate of up to $300,000 | |||||||||||
Promissory note payable | $ 500,000 | |||||||||||
Related party expenses | 120,000 | $ 60,000 | ||||||||||
Working Capital Loan | $ 1,500,000 | |||||||||||
Proceeds from Convertible debt | $ 400,000 | $ 350,000 | ||||||||||
Board Member [Member] | ||||||||||||
Related party agreement description | board member will be paid a cash fee of $150,000 per annum in exchange for his service | |||||||||||
Related party agreement maturiy date | Dec. 31, 2019 | |||||||||||
Related party service fee | $ 150,000 | $ 150,000 | ||||||||||
Prot | Subsequent Event [Member] | ||||||||||||
Service cost | $ 12,500 | |||||||||||
Common Stock Class B | Sponsor [Member] | ||||||||||||
Number of shares issued | $ 25,000 | |||||||||||
Number of shares issued, shares | 3,881,250 | 4,312,500 | ||||||||||
Number of shares forfeited | 267,300 | 431,250 | ||||||||||
Number of shares forfeit agreement with related party | 506,250 shares were no longer subject to forfeiture | |||||||||||
Common Stock Class B | Investor [Member] | ||||||||||||
Number of shares issued | $ 1,980 | |||||||||||
Number of shares issued, shares | 267,300 | |||||||||||
Number of shares forfeit agreement with related party | If the anchor investor does not own the number of Public Units equal to 1,336,500 at the time of any stockholder vote with respect to an initial Business Combination or the business day immediately prior to the consummation of the initial Business Combination, the anchor investor will forfeit up to 267,300 founder shares on a pro rata basis. |
Commitments & Contingencies (De
Commitments & Contingencies (Details Narrative) | 1 Months Ended |
Jun. 22, 2018USD ($)$ / sharesshares | |
Private Placement Warrants [Member] | |
Sale of units in initial public offering | shares | 7,760,000 |
Initial Public Offering [Member] | |
Sale of units in initial public offering | shares | 15,525,000 |
Minimum [Member] | Initial Public Offering [Member] | |
Underwriting commissions and cost | $ | $ 3,105,000 |
Underwriting discount per unit | $ / shares | $ 0.20 |
Maximum [Member] | Initial Public Offering [Member] | |
Underwriting commissions and cost | $ | $ 5,434,000 |
Underwriting discount per unit | $ / shares | $ 0.35 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - $ / shares | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Jun. 22, 2018 | Feb. 28, 2018 | Aug. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2019 | |
Common stock shares redemption | 14,500,444 | 14,461,820 | ||||
Preferred stock, par value | $ 0.0001 | $ 0.0001 | ||||
Preferred stock, authorized shares | 1,000,000 | 1,000,000 | ||||
Preferred stock, issued shares | 0 | 0 | ||||
Preferred stock, outstanding shares | 0 | 0 | ||||
Aggregate number of warrants | 23,285,000 | 23,285,000 | ||||
Over-Allotment Option [Member] | ||||||
Sale of private placement warrants, shares | 2,025,000 | |||||
Private Placement Warrants [Member] | ||||||
Sale of private placement warrants, shares | 7,760,000 | |||||
Warrants exercise price share | $ 11.50 | |||||
Initial Public Offering [Member] | ||||||
Sale of private placement warrants, shares | 15,525,000 | |||||
Warrants exercise price share | $ 11.50 | |||||
Common Stock Class B | ||||||
Common stock, authorized shares | 15,000,000 | 15,000,000 | ||||
Common stock Par value | $ 0.0001 | $ 0.0001 | ||||
Common stock, issued shares | 3,881,250 | 3,881,250 | ||||
Common stock, outstanding shares | 3,881,250 | 3,881,250 | ||||
Common Stock Class A | ||||||
Common stock, authorized shares | 100,000,000 | 100,000,000 | ||||
Common stock Par value | $ 0.0001 | $ 0.0001 | ||||
Common stock, issued shares | 1,024,556 | 1,063,180 | ||||
Common stock, outstanding shares | 1,024,556 | 1,063,180 | ||||
Sale of private placement warrants, shares | 15,525,000 | |||||
Investor [Member] | Private Placement Warrants [Member] | ||||||
Sale of private placement warrants, shares | 550,440 | |||||
Investor [Member] | Common Stock Class B | ||||||
Number of shares issued, shares | 267,300 | |||||
Number of shares forfeit agreement with related party | If the anchor investor does not own the number of Public Units equal to 1,336,500 at the time of any stockholder vote with respect to an initial Business Combination or the business day immediately prior to the consummation of the initial Business Combination, the anchor investor will forfeit up to 267,300 founder shares on a pro rata basis. | |||||
Sponsor [Member] | Private Placement Warrants [Member] | ||||||
Sale of private placement warrants, shares | 7,209,560 | |||||
Sponsor [Member] | Common Stock Class B | ||||||
Number of shares issued, shares | 3,881,250 | 4,312,500 | ||||
Number of shares forfeited | 267,300 | 431,250 | ||||
Number of shares forfeit agreement with related party | 506,250 shares were no longer subject to forfeiture |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring Basis [Member] - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets held in Trust | $ 162,019,909 | $ 159,718,098 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets held in Trust | ||
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Assets held in Trust | ||
U.S. Treasury Securities [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets held in Trust | 161,991,526 | |
U.S. Treasury Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets held in Trust | ||
U.S. Treasury Securities [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | ||
Assets held in Trust | ||
Money Market Fund [Member] | Quoted Prices in Active Markets (Level 1) [Member] | ||
Assets held in Trust | 28,383 | 159,718,098 |
Money Market Fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Assets held in Trust | ||
Money Market Fund [Member] | Significant Other Unobservable Inputs (Level 3) [Member] | ||
Assets held in Trust |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Federal | ||
Current | $ 547,749 | $ 311,183 |
Deferred | (40,546) | (119,993) |
State and Local | ||
Current | ||
Deferred | 13,984 | |
Change in Valuation allowance | 168,651 | 106,009 |
Income tax provision (benefit) | $ 675,854 | $ 311,183 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income tax reconciliation | ||
Current tax at U.S. statutory rate | $ 514,015 | $ 189,847 |
Nondeductible/nontaxable items | 2,436 | 1,343 |
State taxes, net of federal benefit | ||
State effect of perm items | ||
Valuation allowance activity | 168,651 | 106,009 |
Deferred rate change | 13,984 | |
Current/deferred rate differential | ||
Federal payable true-up | (9,248) | |
Other | 1 | |
Total Income Tax Provision/(Benefit) | $ 675,854 | $ 311,183 |
Percent of Pretax Income | ||
Current tax at U.S. statutory rate | 21.00% | 21.00% |
Nondeductible/nontaxable items | 0.10% | 0.15% |
State taxes, net of federal benefit | 0.00% | 0.00% |
State effect of perm items | 0.00% | 0.00% |
Valuation allowance activity | 6.89% | 11.72% |
Deferred rate change | 0.00% | 1.55% |
Current/deferred rate differential | 0.00% | 0.00% |
Federal payable true-up | (0.38%) | 0.00% |
Other | 0.00% | 0.00% |
Total Income Tax Provision/(Benefit) | 27.61% | 34.42% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Unrealized gain/loss | ||
Start-up cost | 313,660 | 145,009 |
Total deferred tax assets | 313,660 | 145,009 |
Valuation allowance | (313,660) | (145,009) |
Deferred tax liabilities | ||
Unrealized gain/loss | (128,105) | |
Net Deferred tax assets/(liabilities), net of allowance | $ (128,105) |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before income tax expense | $ 2,447,690 | $ 904,033 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Jan. 10, 2020 | Feb. 20, 2020 | Dec. 31, 2019 |
Proceeds from Convertible debt | $ 880,000 | ||
Subsequent Event [Member] | |||
Proceeds from Convertible debt | $ 130,000 | ||
Convertible debt | $ 880,000 | ||
Subsequent Event [Member] | Prot | |||
Service cost | $ 12,500 |