Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 23, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | FS DEVELOPMENT CORP. II | |
Trading Symbol | FSII | |
Document Type | 10-Q/A | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | true | |
Amendment Description | References throughout this Amendment No. 1 to the Quarterly Report on Form 10-Q to “we,” “us,” the “Company” or “our company” are to FS Development Corp. II, unless the context otherwise indicates.This Amendment No. 1 (“Amendment No. 1”) to the Quarterly Report on Form 10-Q/A amends the Quarterly Report on Form 10-Q of FS Development Corp. II as of and for the period ended September 30, 2021, as filed with the Securities and Exchange Commission (“SEC”) on November 12, 2021 (this “Amended Quarterly Report”). On November 12, 2021, FS Development Corp. II (the “Company”) filed its Form 10-Q for the quarterly period ending September 30, 2021 (the “Q3 Form 10-Q”), which included a Note 2, Revision of Previously Issued Financial Statements, (“Note 2”) that describes a revision to the Company’s classification of its Public Shares issued in the Company’s initial public offering (“IPO”) on February 19, 2021. As described in Note 2, upon its IPO, the Company classified a portion of the Public Shares as permanent equity to maintain net tangible assets greater than $5,000,000 on the basis that the Company will consummate its initial business combination only if the Company has net tangible assets of at least $5,000,001. The Company’s management re-evaluated the conclusion and determined that the Public Shares included certain provisions that require classification of the Public Shares as temporary equity regardless of the minimum net tangible assets required to complete the Company’s initial business combination. As a result, management corrected the error by restating all Public Shares as temporary equity. This resulted in an adjustment to the initial carrying value of the Class A common stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock.In connection with the change in presentation for the Class A common stock subject to possible redemption, the Company revised its earnings per share calculation to allocate income and losses shared pro rata between the two classes of shares. This presentation differs from the previously presented method of earnings per share, which was similar to the two-class method.The Company determined the changes were not qualitatively material to the Company’s previously issued financial statements and did not restate its financial statements. Instead, the Company revised its previously financial statements in Note 2 to its Q3 Form 10-Q. Although the qualitative factors that management assessed tended to support a conclusion that the misstatements were not material, these factors were not strong enough to overcome the significant quantitative errors in the financial statements. The qualitative and quantitative factors support a conclusion that the misstatements are material on a quantitative basis. Management concluded that the misstatement was such of magnitude that it is probable that the judgment of a reasonable person relying upon the financial statements would have been influenced by the inclusion or correction of the foregoing items. As such, upon further consideration of the change, the Company determined the change in classification of the Class A common stock and change to its presentation of earnings per share is material quantitatively and it should restate its previously issued financial statements.Therefore, on November 23, 2021, the Company’s management and the audit committee of the Company’s board of directors (the “Audit Committee”) concluded that the Company’s previously issued (i) audited balance sheet as of February 19, 2021 (the “Post IPO Balance Sheet”), (ii) unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021, filed with the SEC on May 17, 2021; and (iii) unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021, filed with the SEC on August 16, 2021 (collectively, the “Affected Periods”), should be restated to report all Public Shares as temporary equity and should no longer be relied upon.As such, the Company will restate the Post IPO Balance Sheet and the unaudited condensed financial statements for the periods ended March 31, 2021 and June 30, 2021 in this Amended Quarterly Report.The Company does not expect any of the above changes will have any impact on its cash position and cash held in the trust account established in connection with the IPO.After re-evaluation, the Company’s management has concluded that in light of the errors described above, a material weakness existed in the Company’s internal control over financial reporting during the Affected Periods and that the Company’s disclosure controls and procedures were not effective. The Company’s remediation plan with respect to such material weakness is described in more detail in this Amended Quarterly Report.We are filing this Amendment No. 1 to amend and restate the Q3 Form 10-Q with modification as necessary to reflect the restatements. The following items have been amended to reflect the restatements:Part I, Item 1. Financial InformationPart I, Item 4. Controls and ProceduresPart II, Item 1A. Risk FactorsIn addition, the Company’s Chief Executive Officer and Chief Financial Officer have provided new certifications dated as of the date of this filing in connection with this Amendment No. 1 (Exhibits 31.1, 31.2, 32.1 and 32.2).Except as described above, no other information included in the Q3 Form 10-Q of the Company as of and for the period ended September 30, 2021 is being amended or updated by this Amendment No. 1 and, other than as described herein, this Amendment No. 1 does not purport to reflect any information or events subsequent to Q3 Form 10-Q. This Amended Quarterly Report continues to describe the conditions as of the date of the Q3 Form 10-Q and, except as expressly contained herein, we have not updated, modified or supplemented the disclosures contained in the Q3 Form 10-Q/A. | |
Entity Central Index Key | 0001822711 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | true | |
Entity Ex Transition Period | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-40067 | |
Entity Tax Identification Number | 85-2696306 | |
Entity Address, Address Line One | 900 Larkspur Landing Circle | |
Entity Address, City or Town | Larkspur | |
Entity Address, Address Line Two | Suite 150 | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94939 | |
City Area Code | (415) | |
Local Phone Number | 877- 4887 | |
Title of 12(b) Security | Class A common stock, $0.0001 par value per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Class A Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 20,727,500 | |
Class B Common Stock | ||
Document Information Line Items | ||
Entity Common Stock, Shares Outstanding | 5,031,250 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 48,330 | $ 8,800 |
Prepaid expenses | 522,202 | |
Total current assets | 570,532 | 8,800 |
Deferred offering cost | 82,900 | |
Investments held in Trust Account | 201,262,186 | |
Total Assets | 201,832,718 | 91,700 |
Current liabilities: | ||
Accounts payable | 183,911 | 1,032 |
Accrued expenses | 2,164,500 | 16,700 |
Franchise tax payable | 149,091 | |
Note payable | 50,000 | |
Total current liabilities | 2,497,502 | 67,732 |
Deferred underwriting commissions | 7,043,750 | |
Total liabilities | 9,541,252 | 67,732 |
Commitments and Contingencies | ||
Class A common stock subject to possible redemption, $0.0001 par value; 20,125,000 and -0- shares at $10.00 per share as of September 30, 2021 and December 31, 2020, respectively | 201,250,000 | |
Stockholders’ Equity (Deficit): | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | ||
Class A common stock, $0.0001 par value; 100,000,000 shares authorized; 602,500 and -0- shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively | 60 | |
Class B common stock, $0.0001 par value; 10,000,000 shares authorized; 5,031,250 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 503 | 503 |
Additional paid-in capital | 24,497 | |
Accumulated deficit | (8,959,097) | (1,032) |
Total stockholders’ equity (deficit) | (8,958,534) | 23,968 |
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) | $ 201,832,718 | $ 91,700 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Shares subject to possible redemption | 20,125,000 | 0 |
subject to possible redemption per share (in Dollars per share) | $ 10 | $ 10 |
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, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 602,500 | 0 |
Common stock, shares outstanding | 602,500 | 0 |
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 | 5,031,250 | 5,031,250 |
Common stock, shares outstanding | 5,031,250 | 5,031,250 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | |
Income Statement [Abstract] | |||
General and administrative expenses | $ 1,032 | $ 1,142,579 | $ 3,334,485 |
General and administrative expenses - related party | 30,000 | 80,000 | |
Franchise tax expense | 50,411 | 149,723 | |
Loss from operations | (1,032) | (1,222,990) | (3,564,208) |
Income earned from investments held in Trust Account | 5,073 | 12,186 | |
Net loss | $ (1,032) | $ (1,217,917) | $ (3,552,022) |
Weighted average shares outstanding of Class A common stock, basic and diluted (in Shares) | 20,727,500 | 17,083,104 | |
Basic and diluted net loss per share, Class A common stock (in Dollars per share) | $ (0.05) | $ (0.16) | |
Weighted average shares outstanding of Class B common stock, basic and diluted (in Shares) | 4,375,000 | 5,031,250 | 4,915,865 |
Basic and diluted net loss per share, Class B common stock (in Shares) | 0 | (0.05) | (0.16) |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) - USD ($) | Class ACommon Stock | Class BCommon Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Balance at Aug. 20, 2020 | $ 503 | $ 24,497 | $ 25,000 | ||
Balance (in Shares) at Aug. 20, 2020 | 5,031,250 | ||||
Issuance of Class B common stock to Sponsor | |||||
Issuance of Class B common stock to Sponsor (in Shares) | |||||
Net loss | (1,032) | (1,032) | |||
Balance at Sep. 30, 2020 | $ 503 | 24,497 | (1,032) | 23,968 | |
Balance (in Shares) at Sep. 30, 2020 | 5,031,250 | ||||
Balance at Dec. 31, 2020 | $ 503 | 24,497 | (1,032) | 23,968 | |
Balance (in Shares) at Dec. 31, 2020 | 5,031,250 | ||||
Sale of Private Placement Shares | $ 60 | 6,024,940 | 6,025,000 | ||
Sale of Private Placement Shares (in Shares) | 602,500 | ||||
Accretion of Class A common stock subject to possible redemption amount | (6,049,437) | (5,406,043) | (11,455,480) | ||
Net loss | (168,193) | (168,193) | |||
Balance at Mar. 31, 2021 | $ 60 | $ 503 | (5,575,268) | (5,574,705) | |
Balance (in Shares) at Mar. 31, 2021 | 602,500 | 5,031,250 | |||
Net loss | (2,165,912) | (2,165,912) | |||
Balance at Jun. 30, 2021 | $ 60 | $ 503 | (7,741,180) | (7,740,617) | |
Balance (in Shares) at Jun. 30, 2021 | 602,500 | 5,031,250 | |||
Net loss | (1,217,917) | (1,217,917) | |||
Balance at Sep. 30, 2021 | $ 60 | $ 503 | $ (8,959,097) | $ (8,958,534) | |
Balance (in Shares) at Sep. 30, 2021 | 602,500 | 5,031,250 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statement of Cash Flows - USD ($) | 1 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2021 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (1,032) | $ (3,552,022) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Income earned from investments held in Trust Account | (12,186) | |
Changes in operating assets and liabilities: | ||
Prepaid expenses | (522,202) | |
Franchise tax payable | 149,091 | |
Accounts payable | 9,032 | 57,879 |
Accrued expenses | 2,119,500 | |
Net cash used in operating activities | 8,000 | (1,759,940) |
Cash Flows from Investing Activities | ||
Cash deposited in Trust Account | (201,250,000) | |
Net cash used in investing activities | (201,250,000) | |
Cash Flows from Financing Activities: | ||
Proceeds from note payable to related party | 50,000 | 150,000 |
Repayment of note payable to related party | (200,000) | |
Proceeds received from initial public offering, gross | 201,250,000 | |
Proceeds received from private placement | 6,025,000 | |
Offering costs paid | (41,200) | (4,175,530) |
Net cash provided by financing activities | 8,800 | 203,049,470 |
Net change in cash | 16,800 | 39,530 |
Cash - beginning of the period | 8,800 | |
Cash - end of the period | 16,800 | 48,330 |
Supplemental disclosure of noncash activities: | ||
Offering costs included in accounts payable | 125,000 | |
Offering costs included in accrued expenses | 4,830 | 28,300 |
Deferred underwriting commissions in connection with the initial public offering | $ 7,043,750 | |
Deferred offering costs paid by Sponsor in exchange for issuance of Class B common stock | $ 25,000 |
Description of Organization and
Description of Organization and Business Operations | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Organization and Business Operations | Note 1 — Description of Organization and Business Operations FS Development Corp. II (the “Company”) is a blank check company incorporated in Delaware on August 21, 2020. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company is an emerging growth company and, as such, the Company is subject to all of the risks associated with emerging growth companies. As of September 30, 2021, the Company had not commenced any operations. All activity for the period from August 21, 2020 (inception) through September 30, 2021 relates to the Company’s formation and the initial public offering (the “Initial Public Offering”) described below, and, subsequent to the Initial Public Offering, identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering (as defined below). The Company has selected December 31 as its fiscal year end. The Company’s sponsor is FS Development Holdings II, LLC, a Delaware limited liability company (the “Sponsor”). The registration statements for the Company’s Initial Public Offering became effective on February 16, 2021. On February 19, 2021, the Company consummated its Initial Public Offering of 20,125,000 shares of Class A common stock, par value $0.0001 per share (“Class A Common Stock”) including the issuance of 2,625,000 shares of Class A Common Stock as a result of the underwriter’s exercise in full of its over-allotment option, (each, a “Public Share” and collectively, the “Public Shares”) at $10.00 per share, generating gross proceeds of approximately $201.3 million, and incurring offering costs of approximately $11.5 million, of which approximately $7.0 million was for deferred underwriting commissions (see Note 5). Simultaneously with the closing of the Initial Public Offering, the Company consummated the private placement (the “Private Placement”) of 602,500 shares of Class A Common Stock (each, a “Private Placement Share” and collectively, the “Private Placement Shares”), at a price of $10.00 per Private Placement Share to the Sponsor, generating proceeds of approximately $6.0 million (see Note 4). Upon the closing of the Initial Public Offering and the Private Placement, approximately $201.3 million ($10.00 per share of Class A Common Stock) of the net proceeds of the sale of the Public Shares in the Initial Public Offering and of the Private Placement Shares in the Private Placement were placed in a trust account (“Trust Account”) located in the United States, with Continental Stock Transfer & Trust Company acting as trustee, and are invested only in U.S. “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act of 1940, as amended (the “Investment Company Act”), which will be invested only in direct U.S. government treasury obligations, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account as described below. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of Private Placement Shares, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete one or more initial Business Combinations having an aggregate fair market value of at least 80% of the net assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the interest 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 voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). The Company will provide the holders (the “Public Stockholders”) of the Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Stockholders will be entitled to redeem their Public Shares for a pro rata portion of the amount then held in the Trust Account (initially anticipated to be $10.00 per Public Share). The per-share amount to be distributed to Public Stockholders who redeem their Public Shares will not be reduced by the deferred underwriting commissions the Company will pay to the underwriter (as discussed in Note 5). These Public Shares will be recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering in accordance with the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” The Company will proceed with a Business Combination if a majority of the shares voted are voted in favor of the Business Combination. The Company will not redeem the Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001. If a stockholder vote is not required by law and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, stockholder approval of the transaction is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. Additionally, each public stockholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction. If the Company seeks stockholder approval in connection with a Business Combination, the Initial Stockholders (as defined below) agreed to vote their Founder Shares (as defined below in Note 4), their Private Placement Shares and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination. In addition, the Initial Stockholders agreed to waive their redemption rights with respect to their Founder Shares, their Private Placement Shares and Public Shares in connection with the completion of a Business Combination. 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 20% of the Public Shares, without the prior consent of the Company. The Sponsor and the Company’s officers and directors (the “Initial Stockholders”) agreed not to propose an amendment to the Certificate of Incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of the Public Shares if the Company does not complete a Business Combination within the Combination Period (as defined below) or with respect to any other material provisions relating to stockholders’ rights or pre-initial Business Combination activity, unless the Company provides the Public Stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment. If the Company is unable to complete a Business Combination within 24 months from the closing of the Initial Public Offering, or February 19, 2023, or during any extended period of time that the Company may have to consummate a Business Combination as a result of an amendment to the Certificate of Incorporation (the “Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its 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), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the board of directors, liquidate and dissolve, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. The Initial Stockholders agreed to waive their rights to liquidating distributions from the Trust Account with respect to the Founder Shares and Private Placement Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the Initial Stockholders acquire Public Shares in or after the Initial Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such Public Shares if the Company fails to complete a Business Combination within the Combination Period. The underwriter has agreed to waive its rights to the deferred underwriting commission (see Note 5) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including Trust Account assets) will be only $10.00. In order to protect the amounts held in the Trust Account, the Sponsor agreed to be liable to the Company if and to the extent any claims by a third party (except for the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a letter of intent, confidentiality or other similar agreement or business combination agreement (a “Target”), reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or Target that executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers, 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. Proposed Business Combination and Related Transaction On June 29, 2021, the Company entered into an agreement and plan of merger (the “Merger Agreement”) by and among the Company, Orchard Merger Sub, Inc., a Delaware corporation, a wholly-owned subsidiary of the Company (“Merger Sub”), Pardes Biosciences, Inc., a Delaware corporation (“Pardes”) and Shareholder Representative Services LLC, solely in its capacity as the representative, agent and attorney-in-fact of the securityholders of Pardes (in such capacity, the “Stockholders’ Representative”). The Merger Agreement provides, among other things, that on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into Pardes, with Pardes surviving as a wholly-owned subsidiary of the Company (the “Merger”). Upon the closing of the Merger (the “Closing”), it is anticipated that the Company will change its name to “Pardes Biosciences, Inc.” and is referred to herein as “New Pardes” as of the time following such change of name. The date on which the Closing actually occurs is hereinafter referred to as the “Closing Date.” Consideration and Structure Under the Merger Agreement, the Company has agreed to acquire all of the outstanding equity interests of Pardes in exchange for 32,500,000 shares of Class A Common Stock, to be paid at the effective time of the Merger. Pursuant to the Merger Agreement, at or prior to the effective time of the Merger, each option exercisable for Pardes equity that is outstanding immediately prior to the effective time of the Merger shall be assumed by the Company and continue in full force and effect on the same terms and conditions as are currently applicable to such options, subject to adjustments to exercise price and number of shares of Class A Common Stock issued upon exercise. Representations, Warranties and Covenants The parties to the Merger Agreement have agreed to customary representations and warranties for transactions of this type. The representations and warranties of Pardes made under the Merger Agreement will not survive the Closing. In addition, the parties to the Merger Agreement agreed to be bound by certain customary covenants for transactions of this type, including, among others, covenants with respect to the conduct of Pardes, the Company and their respective subsidiaries during the period between execution of the Merger Agreement and the Closing. The covenants made under the Merger Agreement will not survive the Closing. Each of the parties to the Merger Agreement has agreed to use its reasonable best efforts to cause all actions and things necessary to consummate and expeditiously implement the Merger. Conditions to Closing Under the Merger Agreement, the obligations of the parties to consummate the Merger are subject to the satisfaction or waiver of certain customary closing conditions of the respective parties, including, without limitation: (i) the approval and adoption of the Merger Agreement and transactions contemplated thereby by requisite vote of the Company’s stockholders (the “Company Stockholder Approval”) and Pardes’ stockholders (the “Pardes Stockholder Approval”); (ii) the receipt of consents or approvals from the applicable governmental, regulatory or administrative authorities; (iii) the aggregate cash proceeds from Company’s trust account, together with the proceeds from the Subscriptions (as defined below), equaling no less than $100,000,000 (after deducting any amounts paid to Company stockholders that exercise their redemption rights in connection with the Merger and net of the Company’s unpaid liabilities), (iv) (A) the representations and warranties of the Company, Pardes and Merger Sub contained in the Merger Agreement (other than each party’s respective Fundamental Representations, as defined in the Merger Agreement) being true and correct as of the date of the Merger Agreement and as of the Closing Date, except for any failure to be true and correct that would not have or reasonably be expected to have a Material Adverse Effect (as defined in the Merger Agreement) and (B) each party’s respective Fundamental Representations being true and correct as of the date of the Merger Agreement and as of the Closing Date, except for de minimis inaccuracies; (v) the absence of a Material Adverse Effect since the date of the Merger Agreement; (vi) the Company has not redeemed the Class A Common Stock of the Company in an amount that would cause the Company to have net tangible assets of less than $5,000,001; and (vii) the Company’s initial listing application with Nasdaq in connection with the Merger has been conditionally approved and, immediately following the effective time of the Merger, the Company has satisfied any applicable initial and continuing listing requirements of Nasdaq, and the Company has not received any notice of non-compliance therewith, and the shares of the Company’s Class A Common Stock has been approved for listing on Nasdaq. Liquidity and Capital Resources As of September 30, 2021, the Company had approximately $48,000 in cash, and working capital deficit of approximately $1.8 million (not taking into account approximately $149,000 of tax obligations that may be paid using investment income classified in the Trust Account). The Company’s liquidity needs prior to the consummation of the Initial Public Offering were satisfied through the payment of $25,000 from the Sponsor to cover certain offering costs on behalf of the Company in exchange for issuance of Founder Shares (as defined in Note 4), and loan proceeds from the Sponsor of approximately $200,000 under the Note (see Note 4). The Company repaid the Note in full on February 19, 2021. Subsequent to the consummation of the Initial Public Offering, the Company’s liquidity has been satisfied through the net proceeds from the consummation of the Initial Public Offering and the Private Placement held outside of the Trust Account. In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, provide the Company Working Capital Loans (as defined in Note 4). As of September 30, 2021, there were no amounts outstanding under any Working Capital Loans. Based on the foregoing, management believes that the Company will have sufficient working capital and borrowing capacity from the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors to meet its needs through the earlier of the consummation of a Business Combination or one year from this filing. Over this time period, the Company will be using the funds held outside of the Trust Account for paying existing accounts payable, identifying and evaluating prospective initial Business Combination candidates, performing due diligence on prospective target businesses, paying for travel expenditures, selecting the target business to merge with or acquire, and structuring, negotiating and consummating the Business Combination. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2 — Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected through December 31, 2021 or any future periods. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Form 8-K and the prospectus filed by the Company with the SEC on February 25, 2021 and February 18, 2021, respectively. Restatement of Previously Reported Financial Statements In preparation of the Company’s unaudited condensed consolidated financial statements for the quarterly period ended September 30, 2021, the Company concluded it should restate its previously issued financial statements to classify all Public Shares in temporary equity. In accordance with the SEC and its staff’s guidance on redeemable equity instruments in ASC 480-10-S99, redemption provisions not solely within the control of the Company, require Public Shares to be classified outside of permanent equity. The Company had previously classified a portion of its Public Shares in permanent equity. Although the Company did not specify a maximum redemption threshold, its charter currently provides that the Company will not redeem its Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these condensed consolidated financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. In connection with the change in presentation for the Public Shares, the Company has revised its earnings per share calculation to allocate income and losses shared pro rata between the two classes of shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of shares participate pro rata in the income and losses of the Company. In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the corrections and has determined that the related impact was material to the The impact of the restatement to the Post-IPO Balance Sheet is an increase to Class A common stock subject to possible redemption of approximately $10.5 million, a decrease to additional paid-in capital of $5.1 million, an increase to the accumulated deficit of $5.4 million, and the reclassification of 1,048,264 Class A common stock from permanent equity to Class A common stock subject to possible redemption as presented below. As of February 19, 2021 As Previously Adjustment As Restated Total assets $ 203,119,261 - $ 203,119,261 Total liabilities $ 7,351,899 - $ 7,351,899 Class A common stock subject to possible redemption 190,767,360 10,482,640 201,250,000 Preferred stock - - - Class A common stock 165 (105 ) 60 Class B common stock 503 - 503 Additional paid-in capital 5,051,492 (5,051,492 ) - Accumulated deficit (52,158 ) (5,431,043 ) (5,483,201 ) Total stockholders’ equity (deficit) $ 5,000,002 $ (10,482,640 ) $ (5,482,638 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 203,119,261 $ - $ 203,119,261 The impact of the restatement on the financial statements for the Affected Quarterly Periods is presented below. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of March 31, 2021: As of March 31, 2021 As Previously Adjustment As Restated Total assets $ 202,959,356 - $ 202,959,356 Total liabilities $ 7,284,061 - $ 7,284,061 Class A common stock subject to possible redemption 190,675,290 10,574,710 201,250,000 Preferred stock - - - Class A common stock 166 (106 ) 60 Class B common stock 503 - 503 Additional paid-in capital 5,168,561 (5,168,561 ) - Accumulated deficit (169,225 ) (5,406,043 ) (5,575,268 ) Total stockholders’ equity (deficit) $ 5,000,005 $ (10,574,710 ) $ (5,574,705 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 202,959,356 $ - $ 202,959,356 The Company’s statement of stockholders’ equity has been restated to reflect the changes to the impacted stockholders’ equity accounts described above. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the three months ended March 31, 2021: Three Months Ended March 31, 2021 As Previously Adjustment As Restated Supplemental Disclosure of Noncash Financing Activities: Initial value of Class A common stock subject to possible redemption $ 190,767,360 $ (190,767,360 ) $ - Change in value of Class A common stock subject to possible redemption $ (92,070 ) $ 92,070 $ - The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of June 30, 2021: As of June 30, 2021 As Previously Adjustment As Restated Total assets $ 202,246,887 - $ 202,246,887 Total liabilities $ 8,737,504 - $ 8,737,504 Class A common stock subject to possible redemption 188,509,380 12,740,620 201,250,000 Preferred stock - - - Class A common stock 188 (128 ) 60 Class B common stock 503 - 503 Additional paid-in capital 7,334,449 (7,334,449 ) - Accumulated deficit (2,335,137 ) (5,406,043 ) (7,741,180 ) Total stockholders’ equity (deficit) $ 5,000,003 $ (12,740,620 ) $ (7,740,617 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 202,246,887 $ - $ 202,246,887 The Company’s statement of stockholders’ equity has been restated to reflect the changes to the impacted stockholders’ equity accounts described above. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the six months ended June 30, 2021: Six Months Ended June 30, 2021 As Previously Adjustment As Restated Supplemental Disclosure of Noncash Financing Activities: Initial value of Class A common stock subject to possible redemption $ 190,767,360 $ (190,767,360 ) $ - Change in value of Class A common stock subject to possible redemption $ (2,257,980 ) $ 2,257,980 $ - The impact to the reported amounts of weighted average shares outstanding and basic and diluted earnings per share is presented below for the Affected Quarterly Periods: Earnings Per Share As Previously Reported Adjustment As Restated Three Months Ended March 31, 2021 Net loss $ (168,193 ) $ - $ (168,193 ) Weighted average shares outstanding - Class A common stock 20,727,500 (11,054,667 ) 9,672,833 Basic and diluted earnings per share - Class A common stock $ - $ (0.01 ) $ (0.01 ) Weighted average shares outstanding - Class B common stock 4,681,250 - 4,681,250 Basic and diluted earnings per share - Class B common stock $ (0.04 ) $ 0.03 $ (0.01 ) Earnings Per Share As Previously Reported Adjustment As Restated Three Months Ended June 30, 2021 Net loss $ (2,165,912 ) $ - $ (2,165,912 ) Weighted average shares outstanding - Class A common stock 20,125,000 602,500 20,727,500 Basic and diluted earnings per share - Class A common stock $ - $ (0.08 ) $ (0.08 ) Weighted average shares outstanding - Class B common stock 5,633,750 $ (602,500 ) 5,031,250 Basic and diluted earnings per share - Class B common stock $ (0.38 ) $ 0.30 $ (0.08 ) Earnings Per Share As Previously Reported Adjustment As Restated Six Months Ended June 30, 2021 Net loss $ (2,334,105 ) $ - $ (2,334,105 ) Weighted average shares outstanding - Class A common stock 20,125,000 (4,894,296 ) 15,230,704 Basic and diluted earnings per share - Class A common stock $ - $ (0.12 ) $ (0.12 ) Weighted average shares outstanding - Class B common stock 5,299,938 (442,721 ) 4,857,217 Basic and diluted earnings per share - Class B common stock $ (0.44 ) $ 0.32 $ (0.12 ) Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s unaudited condensed consolidated financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of September 30, 2021 and December 31, 2020. Investments Held in the Trust Account The Company’s portfolio of investments is comprised of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities and generally have a readily determinable fair value, or a combination thereof. When the Company’s investments held in the Trust Account are comprised of U.S. government securities, the investments are classified as trading securities. When the Company’s investments held in the Trust Account are comprised of money market funds, the investments are recognized at fair value. Trading securities and investments in money market funds are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in income on investments held in the Trust Account in the accompanying unaudited condensed consolidated statement of operations. The estimated fair values of investments held in the Trust Account are determined using available market information. 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. As of September 30, 2021 and December 31, 2020, the Company had not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. Fair Value Measurements Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. Offering Costs Associated with the Initial Public Offering Offering costs consisted of legal, accounting, underwriting fees and other costs incurred through the Initial Public Offering that were charged to stockholders’ equity upon the completion of the Initial Public Offering. The Company classifies deferred underwriting commissions as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities. Offering costs associated with the Class A common stock issued were charged against the carrying value of the shares of Class A common stock upon the completion of the Initial Public Offering. 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) is classified as liability instruments 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) are classified as temporary equity. At all other times, Class A common stock is classified as stockholders’ equity. As part of the Private Placement, the Company issued 602,500 shares of Class A common stock to the Sponsor (“Private Placement Shares”). These Private Placement Shares will not be transferable, assignable or salable until 30 days after the completion of our initial business combination, as such are considered non-redeemable and presented as permanent equity in the Company’s condensed consolidated balance sheet. The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, as of September 30, 2021, 20,125,000 shares of Class A common stock subject to possible redemption are presented at redemption value as temporary equity, outside of the stockholders’ equity (deficit) section of the Company’s condensed consolidated balance sheets. There was no Class A common stock issued or outstanding as of December 31, 2020. Effective with the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount, which resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit. Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC Topic 740, “Income Taxes” (“ASC 740”). 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. As of September 30, 2021, and December 31, 2020, the Company had deferred tax assets with a full valuation allowance against them. 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 September 30, 2021 or December 31, 2020. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. Net Income (Loss) Per Share of Common Stock The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock. Income and losses are shared pro rata between the two classes of shares. Net income (loss) per common share is calculated by dividing the net income (loss) by the weighted average shares of common stock outstanding for the respective period. Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the redemption value approximates fair value. The following table reflects presents a reconciliation of the numerator and denominator used to compute basic and diluted net income (loss) per share for each class of common stock: For the Three Months Ended For the Nine Months Ended Class A Class B Class A Class B Basic and diluted net loss per ordinary share: Numerator: Allocation of net loss $ (980,031 ) $ (237,886 ) $ (2,758,291 ) $ (793,731 ) Denominator: Basic and diluted weighted average ordinary shares outstanding 20,727,500 5,031,250 17,083,104 4,915,865 Basic and diluted net loss per ordinary share $ (0.05 ) $ (0.05 ) $ (0.16 ) $ (0.16 ) For the Period From Class A Class B Basic and diluted net loss per ordinary share: Numerator: Allocation of net loss $ - $ (1,032 ) Denominator: Basic and diluted weighted average ordinary shares outstanding - 4,375,000 Basic and diluted net loss per ordinary share $ - $ (0.00 ) Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying unaudited condensed consolidated financial statements. |
Initial Public Offering
Initial Public Offering | 9 Months Ended |
Sep. 30, 2021 | |
Initial Public Offering [Abstract] | |
Initial Public Offering | Note 3 — Initial Public Offering On February 19, 2021, the Company consummated its Initial Public Offering of 20,125,000 Public Shares, including the issuance of 2,625,000 shares as a result of the underwriter’s exercise in full of its over-allotment option, at $10.00 per share, generating gross proceeds of approximately $201.3 million, and incurring offering costs of approximately $11.5 million, of which approximately $7.0 million was for deferred underwriting commissions. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 4 — Related Party Transactions Founder Shares and Private Placement Shares On August 26, 2020, the Sponsor paid $25,000 to cover certain offering costs on behalf of the Company in consideration of 2,875,000 shares (the “Founder Shares”) of the Company’s Class B common stock, par value $0.0001 per share (“Class B Common Stock”). On January 22, 2021, the Sponsor transferred 30,000 Founder Shares to each of Dr. Dubin, Mr. Hughes and Dr. Pakianathan, at their original per-share purchase price, for an aggregate of 90,000 Founder Shares transferred. On February 5, 2021, the Company effected a 1:1½ stock split of the Class B Common Stock and on February 16, 2021, the Company effected a 1:1 1 6 Simultaneously with the closing of the Initial Public Offering, the Company consummated the Private Placement of 602,500 Private Placement Shares, at a price of $10.00 per Private Placement Share to the Sponsor, generating proceeds of approximately $6.0 million. The Initial Stockholders agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (i) one year after the completion of the initial Business Combination and (ii) the date following the completion of the initial Business Combination on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the stockholders having the right to exchange their common stock for cash, securities or other property and the Sponsor agreed not to transfer, assign or sell any of its Private Placement Shares until 30 days after the completion of the initial Business Combination. Notwithstanding the foregoing, if the closing price of the Class A Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, the Founder Shares will be released from the lockup. Related Party Loans On August 26, 2020, the Sponsor agreed to loan the Company an aggregate of up to $200,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note, as amended (the “Note”). This loan was non-interest bearing and payable upon the completion of the Initial Public Offering. The Company borrowed $200,000 under the Note and fully repaid it on February 19, 2021. No future borrowings are available under the agreement. In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor, or an affiliate of the Sponsor, or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company would repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. The Working Capital Loans would either be repaid upon consummation of a Business Combination or, at the lenders’ discretion, up to $1.5 million of such Working Capital Loans may be convertible into shares of Class A Common Stock of the post-Business Combination entity at a price of $10.00 per share. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. As of September 30, 2021 and December 31, 2020, the Company had no borrowings under the Working Capital Loans. Subscription Agreement In connection with the proposed business combination, the Company entered in a subscription agreement with two related parties, each subscribing to purchase shares of Class A Common Stock in the amount of $5,000,000 ($10,000,000 in aggregate) at the closing date of the proposed business combination. Administrative Services Agreement Commencing on the date that the Company’s securities were first listed on Nasdaq and continuing until the earlier of the Company’s consummation of a Business Combination and the Company’s liquidation, the Company agreed to pay the Sponsor, or an affiliate a total of $10,000 per month for office space, secretarial and administrative services provided to members of the Company’s management team. The Company incurred approximately $30,000, $80,000 and $0 in administrative expenses under the agreement, which is recognized in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended June 30, 2021, and for the period from August 21, 2020 (inception) through September 30, 2020, respectively, within general and administrative expense – related party. As of September 30, 2021 and December 31, 2020, there was no outstanding balance in accounts payable with related party, as reflected in the accompanying condensed consolidated balance sheets. The Sponsor, officers and directors, or any of their respective affiliates will be reimbursed for any out-of-pocket expenses incurred in connection with activities on the Company’s behalf such as identifying potential target businesses and performing due diligence on suitable Business Combinations. The Company’s audit committee will review on a quarterly basis all payments that were made to the Sponsor, officers or directors, or their affiliates. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5 — Commitments and Contingencies Registration Rights The holders of Founder Shares, Private Placement Shares, and shares of Class A Common Stock that may be issued upon conversion of Working Capital Loans, if any, are entitled to registration rights pursuant to a registration rights agreement. 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 completion of the initial Business Combination. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriting Agreement The Company granted the underwriter a 45-day option from the date of the final prospectus relating to the Proposed Public Offering to purchase up to 2,625,000 additional shares of Class A Common Stock to cover over-allotments, if any, at the Proposed Public Offering price, less underwriting discounts and commissions. The underwriter exercised its over-allotment option in full on February 19, 2021. The underwriter was entitled to an underwriting discount of $0.20 per share, or approximately $4.0 million in the aggregate, paid upon the closing of the Initial Public Offering. In addition, $0.35 per share, or approximately $7.0 million in the aggregate will be payable to the underwriter for deferred underwriting commissions. The deferred fee will become payable to the underwriter 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. Risks and Uncertainties Management continues to evaluate the impact of the COVID-19 pandemic on the industry and has concluded that while it is reasonably possible that the virus could have a negative effect on the Company’s financial position, results of its operations, and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statement. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Class A Common Stock Subject to
Class A Common Stock Subject to Possible Redemption | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Class A Common Stock Subject to Possible Redemption | Note 6 — Class A Common Stock Subject to Possible Redemption The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of future events. The Company is authorized to issue 100,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holder of the Company’s Class A common stock are entitled to one vote for each share. Accordingly, there were 20,125,000 shares of Class A common stock subject to possible redemption. The Class A common stock subject to possible redemption reflected on the balance sheet is reconciled on the following table: Gross proceeds from Initial Public Offering $ 201,250,000 Less: Offering costs allocated to Class A common stock subject to possible redemption (11,455,480 ) Plus: Accretion of carrying value to redemption value 11,455,480 Class A common stock subject to possible redemption $ 201,250,000 |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders’ Equity | Note 7 — Stockholders’ Equity Preferred Stock— Class A Common Stock Class B Common Stock The Class B Common Stock will automatically convert into Class A Common Stock concurrently with or immediately following the consummation of the initial Business Combination on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, and subject to further adjustment as provided herein. In the case that additional shares of Class A Common Stock or equity-linked securities are issued or deemed issued in connection with the initial Business Combination, the number of shares of Class A Common Stock issuable upon conversion of all Founder Shares will equal, in the aggregate, on an as-converted basis, 20% of the total number of shares of Class A Common Stock issued and outstanding (excluding the Private Placement Shares) after such conversion (after giving effect to any redemptions of shares of Class A Common Stock by Public Stockholders), including the total number of shares of Class A Common Stock issued, or deemed issued or issuable upon conversion or exercise of any equity-linked securities or rights issued or deemed issued, by the Company in connection with or in relation to the consummation of the initial Business Combination, excluding any shares of Class A Common Stock or equity-linked securities or rights exercisable for or convertible into shares of Class A Common Stock issued, or to be issued, to any seller in the initial Business Combination and any Private Placement Shares issued to the Sponsor, officers or directors upon conversion of Working Capital Loans, provided that such conversion of Founder Shares will never occur on a less than one-for-one basis. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
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 at fair value on a recurring basis as of September 30, 2021 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value. Description Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Investments held in Trust Account – money market funds $ 201,262,131 $ - $ - Transfers to/from Levels 1, 2, and 3 are recognized at the beginning of the reporting period. There were no transfers between levels of the hierarchy for the three and nine months ended September 30, 2021. Level 1 instruments include investments in money market funds that invest solely in U.S. government securities with an original maturity of 185 days or less. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 — Subsequent Events The Company evaluated subsequent events and transactions that occurred up to the date the condensed consolidated financial statements were available to be issued. Based upon this review, the Company determined that there have been no events that have occurred that would require adjustments to the disclosures in the unaudited condensed consolidated financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements are presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for financial information and pursuant to the rules and regulations of the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, the unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments necessary for the fair statement of the balances and results for the periods presented. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected through December 31, 2021 or any future periods. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Form 8-K and the prospectus filed by the Company with the SEC on February 25, 2021 and February 18, 2021, respectively. Restatement of Previously Reported Financial Statements In preparation of the Company’s unaudited condensed consolidated financial statements for the quarterly period ended September 30, 2021, the Company concluded it should restate its previously issued financial statements to classify all Public Shares in temporary equity. In accordance with the SEC and its staff’s guidance on redeemable equity instruments in ASC 480-10-S99, redemption provisions not solely within the control of the Company, require Public Shares to be classified outside of permanent equity. The Company had previously classified a portion of its Public Shares in permanent equity. Although the Company did not specify a maximum redemption threshold, its charter currently provides that the Company will not redeem its Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these condensed consolidated financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. In connection with the change in presentation for the Public Shares, the Company has revised its earnings per share calculation to allocate income and losses shared pro rata between the two classes of shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of shares participate pro rata in the income and losses of the Company. In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the corrections and has determined that the related impact was material to the The impact of the restatement to the Post-IPO Balance Sheet is an increase to Class A common stock subject to possible redemption of approximately $10.5 million, a decrease to additional paid-in capital of $5.1 million, an increase to the accumulated deficit of $5.4 million, and the reclassification of 1,048,264 Class A common stock from permanent equity to Class A common stock subject to possible redemption as presented below. As of February 19, 2021 As Previously Adjustment As Restated Total assets $ 203,119,261 - $ 203,119,261 Total liabilities $ 7,351,899 - $ 7,351,899 Class A common stock subject to possible redemption 190,767,360 10,482,640 201,250,000 Preferred stock - - - Class A common stock 165 (105 ) 60 Class B common stock 503 - 503 Additional paid-in capital 5,051,492 (5,051,492 ) - Accumulated deficit (52,158 ) (5,431,043 ) (5,483,201 ) Total stockholders’ equity (deficit) $ 5,000,002 $ (10,482,640 ) $ (5,482,638 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 203,119,261 $ - $ 203,119,261 The impact of the restatement on the financial statements for the Affected Quarterly Periods is presented below. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of March 31, 2021: As of March 31, 2021 As Previously Adjustment As Restated Total assets $ 202,959,356 - $ 202,959,356 Total liabilities $ 7,284,061 - $ 7,284,061 Class A common stock subject to possible redemption 190,675,290 10,574,710 201,250,000 Preferred stock - - - Class A common stock 166 (106 ) 60 Class B common stock 503 - 503 Additional paid-in capital 5,168,561 (5,168,561 ) - Accumulated deficit (169,225 ) (5,406,043 ) (5,575,268 ) Total stockholders’ equity (deficit) $ 5,000,005 $ (10,574,710 ) $ (5,574,705 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 202,959,356 $ - $ 202,959,356 The Company’s statement of stockholders’ equity has been restated to reflect the changes to the impacted stockholders’ equity accounts described above. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the three months ended March 31, 2021: Three Months Ended March 31, 2021 As Previously Adjustment As Restated Supplemental Disclosure of Noncash Financing Activities: Initial value of Class A common stock subject to possible redemption $ 190,767,360 $ (190,767,360 ) $ - Change in value of Class A common stock subject to possible redemption $ (92,070 ) $ 92,070 $ - The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of June 30, 2021: As of June 30, 2021 As Previously Adjustment As Restated Total assets $ 202,246,887 - $ 202,246,887 Total liabilities $ 8,737,504 - $ 8,737,504 Class A common stock subject to possible redemption 188,509,380 12,740,620 201,250,000 Preferred stock - - - Class A common stock 188 (128 ) 60 Class B common stock 503 - 503 Additional paid-in capital 7,334,449 (7,334,449 ) - Accumulated deficit (2,335,137 ) (5,406,043 ) (7,741,180 ) Total stockholders’ equity (deficit) $ 5,000,003 $ (12,740,620 ) $ (7,740,617 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 202,246,887 $ - $ 202,246,887 The Company’s statement of stockholders’ equity has been restated to reflect the changes to the impacted stockholders’ equity accounts described above. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the six months ended June 30, 2021: Six Months Ended June 30, 2021 As Previously Adjustment As Restated Supplemental Disclosure of Noncash Financing Activities: Initial value of Class A common stock subject to possible redemption $ 190,767,360 $ (190,767,360 ) $ - Change in value of Class A common stock subject to possible redemption $ (2,257,980 ) $ 2,257,980 $ - The impact to the reported amounts of weighted average shares outstanding and basic and diluted earnings per share is presented below for the Affected Quarterly Periods: Earnings Per Share As Previously Reported Adjustment As Restated Three Months Ended March 31, 2021 Net loss $ (168,193 ) $ - $ (168,193 ) Weighted average shares outstanding - Class A common stock 20,727,500 (11,054,667 ) 9,672,833 Basic and diluted earnings per share - Class A common stock $ - $ (0.01 ) $ (0.01 ) Weighted average shares outstanding - Class B common stock 4,681,250 - 4,681,250 Basic and diluted earnings per share - Class B common stock $ (0.04 ) $ 0.03 $ (0.01 ) Earnings Per Share As Previously Reported Adjustment As Restated Three Months Ended June 30, 2021 Net loss $ (2,165,912 ) $ - $ (2,165,912 ) Weighted average shares outstanding - Class A common stock 20,125,000 602,500 20,727,500 Basic and diluted earnings per share - Class A common stock $ - $ (0.08 ) $ (0.08 ) Weighted average shares outstanding - Class B common stock 5,633,750 $ (602,500 ) 5,031,250 Basic and diluted earnings per share - Class B common stock $ (0.38 ) $ 0.30 $ (0.08 ) Earnings Per Share As Previously Reported Adjustment As Restated Six Months Ended June 30, 2021 Net loss $ (2,334,105 ) $ - $ (2,334,105 ) Weighted average shares outstanding - Class A common stock 20,125,000 (4,894,296 ) 15,230,704 Basic and diluted earnings per share - Class A common stock $ - $ (0.12 ) $ (0.12 ) Weighted average shares outstanding - Class B common stock 5,299,938 (442,721 ) 4,857,217 Basic and diluted earnings per share - Class B common stock $ (0.44 ) $ 0.32 $ (0.12 ) |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that an emerging growth company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s unaudited condensed consolidated financial statements with another public company that is neither an emerging growth company nor an emerging growth company that has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company had no cash equivalents as of September 30, 2021 and December 31, 2020. |
Investments Held in the Trust Account | Investments Held in the Trust Account The Company’s portfolio of investments is comprised of U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities and generally have a readily determinable fair value, or a combination thereof. When the Company’s investments held in the Trust Account are comprised of U.S. government securities, the investments are classified as trading securities. When the Company’s investments held in the Trust Account are comprised of money market funds, the investments are recognized at fair value. Trading securities and investments in money market funds are presented on the balance sheets at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in income on investments held in the Trust Account in the accompanying unaudited condensed consolidated statement of operations. The estimated fair values of investments held in the Trust Account are determined using available market information. |
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. As of September 30, 2021 and December 31, 2020, the Company had not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include: ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. |
Offering Costs Associated with the Initial Public Offering | Offering Costs Associated with the Initial Public Offering Offering costs consisted of legal, accounting, underwriting fees and other costs incurred through the Initial Public Offering that were charged to stockholders’ equity upon the completion of the Initial Public Offering. The Company classifies deferred underwriting commissions as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities. Offering costs associated with the Class A common stock issued were charged against the carrying value of the shares of Class A common stock upon the completion of the Initial Public Offering. |
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) is classified as liability instruments 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) are classified as temporary equity. At all other times, Class A common stock is classified as stockholders’ equity. As part of the Private Placement, the Company issued 602,500 shares of Class A common stock to the Sponsor (“Private Placement Shares”). These Private Placement Shares will not be transferable, assignable or salable until 30 days after the completion of our initial business combination, as such are considered non-redeemable and presented as permanent equity in the Company’s condensed consolidated balance sheet. The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, as of September 30, 2021, 20,125,000 shares of Class A common stock subject to possible redemption are presented at redemption value as temporary equity, outside of the stockholders’ equity (deficit) section of the Company’s condensed consolidated balance sheets. There was no Class A common stock issued or outstanding as of December 31, 2020. Effective with the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption amount, which resulted in charges against additional paid-in capital (to the extent available) and accumulated deficit. |
Income Taxes | Income Taxes The Company follows the asset and liability method of accounting for income taxes under FASB ASC Topic 740, “Income Taxes” (“ASC 740”). 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. As of September 30, 2021, and December 31, 2020, the Company had deferred tax assets with a full valuation allowance against them. 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 September 30, 2021 or December 31, 2020. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of September 30, 2021 and December 31, 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception. |
Net Income (Loss) Per Share of Common Stock | Net Income (Loss) Per Share of Common Stock The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock. Income and losses are shared pro rata between the two classes of shares. Net income (loss) per common share is calculated by dividing the net income (loss) by the weighted average shares of common stock outstanding for the respective period. Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the redemption value approximates fair value. The following table reflects presents a reconciliation of the numerator and denominator used to compute basic and diluted net income (loss) per share for each class of common stock: For the Three Months Ended For the Nine Months Ended Class A Class B Class A Class B Basic and diluted net loss per ordinary share: Numerator: Allocation of net loss $ (980,031 ) $ (237,886 ) $ (2,758,291 ) $ (793,731 ) Denominator: Basic and diluted weighted average ordinary shares outstanding 20,727,500 5,031,250 17,083,104 4,915,865 Basic and diluted net loss per ordinary share $ (0.05 ) $ (0.05 ) $ (0.16 ) $ (0.16 ) For the Period From Class A Class B Basic and diluted net loss per ordinary share: Numerator: Allocation of net loss $ - $ (1,032 ) Denominator: Basic and diluted weighted average ordinary shares outstanding - 4,375,000 Basic and diluted net loss per ordinary share $ - $ (0.00 ) |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying unaudited condensed consolidated financial statements. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of balance sheet | As of February 19, 2021 As Previously Adjustment As Restated Total assets $ 203,119,261 - $ 203,119,261 Total liabilities $ 7,351,899 - $ 7,351,899 Class A common stock subject to possible redemption 190,767,360 10,482,640 201,250,000 Preferred stock - - - Class A common stock 165 (105 ) 60 Class B common stock 503 - 503 Additional paid-in capital 5,051,492 (5,051,492 ) - Accumulated deficit (52,158 ) (5,431,043 ) (5,483,201 ) Total stockholders’ equity (deficit) $ 5,000,002 $ (10,482,640 ) $ (5,482,638 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 203,119,261 $ - $ 203,119,261 As of March 31, 2021 As Previously Adjustment As Restated Total assets $ 202,959,356 - $ 202,959,356 Total liabilities $ 7,284,061 - $ 7,284,061 Class A common stock subject to possible redemption 190,675,290 10,574,710 201,250,000 Preferred stock - - - Class A common stock 166 (106 ) 60 Class B common stock 503 - 503 Additional paid-in capital 5,168,561 (5,168,561 ) - Accumulated deficit (169,225 ) (5,406,043 ) (5,575,268 ) Total stockholders’ equity (deficit) $ 5,000,005 $ (10,574,710 ) $ (5,574,705 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 202,959,356 $ - $ 202,959,356 As of June 30, 2021 As Previously Adjustment As Restated Total assets $ 202,246,887 - $ 202,246,887 Total liabilities $ 8,737,504 - $ 8,737,504 Class A common stock subject to possible redemption 188,509,380 12,740,620 201,250,000 Preferred stock - - - Class A common stock 188 (128 ) 60 Class B common stock 503 - 503 Additional paid-in capital 7,334,449 (7,334,449 ) - Accumulated deficit (2,335,137 ) (5,406,043 ) (7,741,180 ) Total stockholders’ equity (deficit) $ 5,000,003 $ (12,740,620 ) $ (7,740,617 ) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 202,246,887 $ - $ 202,246,887 |
Schedule of cash flows | Three Months Ended March 31, 2021 As Previously Adjustment As Restated Supplemental Disclosure of Noncash Financing Activities: Initial value of Class A common stock subject to possible redemption $ 190,767,360 $ (190,767,360 ) $ - Change in value of Class A common stock subject to possible redemption $ (92,070 ) $ 92,070 $ - Six Months Ended June 30, 2021 As Previously Adjustment As Restated Supplemental Disclosure of Noncash Financing Activities: Initial value of Class A common stock subject to possible redemption $ 190,767,360 $ (190,767,360 ) $ - Change in value of Class A common stock subject to possible redemption $ (2,257,980 ) $ 2,257,980 $ - Earnings Per Share As Previously Reported Adjustment As Restated Three Months Ended March 31, 2021 Net loss $ (168,193 ) $ - $ (168,193 ) Weighted average shares outstanding - Class A common stock 20,727,500 (11,054,667 ) 9,672,833 Basic and diluted earnings per share - Class A common stock $ - $ (0.01 ) $ (0.01 ) Weighted average shares outstanding - Class B common stock 4,681,250 - 4,681,250 Basic and diluted earnings per share - Class B common stock $ (0.04 ) $ 0.03 $ (0.01 ) Earnings Per Share As Previously Reported Adjustment As Restated Three Months Ended June 30, 2021 Net loss $ (2,165,912 ) $ - $ (2,165,912 ) Weighted average shares outstanding - Class A common stock 20,125,000 602,500 20,727,500 Basic and diluted earnings per share - Class A common stock $ - $ (0.08 ) $ (0.08 ) Weighted average shares outstanding - Class B common stock 5,633,750 $ (602,500 ) 5,031,250 Basic and diluted earnings per share - Class B common stock $ (0.38 ) $ 0.30 $ (0.08 ) Earnings Per Share As Previously Reported Adjustment As Restated Six Months Ended June 30, 2021 Net loss $ (2,334,105 ) $ - $ (2,334,105 ) Weighted average shares outstanding - Class A common stock 20,125,000 (4,894,296 ) 15,230,704 Basic and diluted earnings per share - Class A common stock $ - $ (0.12 ) $ (0.12 ) Weighted average shares outstanding - Class B common stock 5,299,938 (442,721 ) 4,857,217 Basic and diluted earnings per share - Class B common stock $ (0.44 ) $ 0.32 $ (0.12 ) |
Schedule of basic and diluted net income (loss) per share | For the Three Months Ended For the Nine Months Ended Class A Class B Class A Class B Basic and diluted net loss per ordinary share: Numerator: Allocation of net loss $ (980,031 ) $ (237,886 ) $ (2,758,291 ) $ (793,731 ) Denominator: Basic and diluted weighted average ordinary shares outstanding 20,727,500 5,031,250 17,083,104 4,915,865 Basic and diluted net loss per ordinary share $ (0.05 ) $ (0.05 ) $ (0.16 ) $ (0.16 ) For the Period From Class A Class B Basic and diluted net loss per ordinary share: Numerator: Allocation of net loss $ - $ (1,032 ) Denominator: Basic and diluted weighted average ordinary shares outstanding - 4,375,000 Basic and diluted net loss per ordinary share $ - $ (0.00 ) |
Class A Common Stock Subject _2
Class A Common Stock Subject to Possible Redemption (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of class A common stock subject to possible redemption | Gross proceeds from Initial Public Offering $ 201,250,000 Less: Offering costs allocated to Class A common stock subject to possible redemption (11,455,480 ) Plus: Accretion of carrying value to redemption value 11,455,480 Class A common stock subject to possible redemption $ 201,250,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value hierarchy of the valuation techniques | Description Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Investments held in Trust Account – money market funds $ 201,262,131 $ - $ - |
Description of Organization a_2
Description of Organization and Business Operations (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Feb. 19, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Description of Organization and Business Operations (Details) [Line Items] | |||
Share price per share (in Dollars per share) | $ 10 | ||
Net proceeds | $ 201,300,000 | ||
Percentage of fair market value | 80.00% | ||
Ownership percentage | 50.00% | ||
Public price per share (in Dollars per share) | $ 10 | ||
Net tangible assets | $ 5,000,001 | ||
Percentage of restricted redeeming shares | 20.00% | ||
Share price (in Dollars per share) | $ 10 | ||
Business combination agreement, description | In order to protect the amounts held in the Trust Account, the Sponsor agreed to be liable to the Company if and to the extent any claims by a third party (except for the Company’s independent registered public accounting firm) for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a letter of intent, confidentiality or other similar agreement or business combination agreement (a “Target”), reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per Public Share due to reductions in the value of the trust assets, less taxes payable, provided that such liability will not apply to any claims by a third party or Target that executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). | ||
Conditions to closing description | Under the Merger Agreement, the obligations of the parties to consummate the Merger are subject to the satisfaction or waiver of certain customary closing conditions of the respective parties, including, without limitation: (i) the approval and adoption of the Merger Agreement and transactions contemplated thereby by requisite vote of the Company’s stockholders (the “Company Stockholder Approval”) and Pardes’ stockholders (the “Pardes Stockholder Approval”); (ii) the receipt of consents or approvals from the applicable governmental, regulatory or administrative authorities; (iii) the aggregate cash proceeds from Company’s trust account, together with the proceeds from the Subscriptions (as defined below), equaling no less than $100,000,000 (after deducting any amounts paid to Company stockholders that exercise their redemption rights in connection with the Merger and net of the Company’s unpaid liabilities), (iv) (A) the representations and warranties of the Company, Pardes and Merger Sub contained in the Merger Agreement (other than each party’s respective Fundamental Representations, as defined in the Merger Agreement) being true and correct as of the date of the Merger Agreement and as of the Closing Date, except for any failure to be true and correct that would not have or reasonably be expected to have a Material Adverse Effect (as defined in the Merger Agreement) and (B) each party’s respective Fundamental Representations being true and correct as of the date of the Merger Agreement and as of the Closing Date, except for de minimis inaccuracies; (v) the absence of a Material Adverse Effect since the date of the Merger Agreement; (vi) the Company has not redeemed the Class A Common Stock of the Company in an amount that would cause the Company to have net tangible assets of less than $5,000,001; and (vii) the Company’s initial listing application with Nasdaq in connection with the Merger has been conditionally approved and, immediately following the effective time of the Merger, the Company has satisfied any applicable initial and continuing listing requirements of Nasdaq, and the Company has not received any notice of non-compliance therewith, and the shares of the Company’s Class A Common Stock has been approved for listing on Nasdaq. | ||
Cash | $ 48,000 | ||
Working capital deficit | 1,800,000 | ||
Tax obligations | 149,000 | ||
Loan proceeds | $ 200,000 | ||
Business Acquisition [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Company's obligation to redeemed, percentage | 100.00% | ||
Business combination, description | If the Company is unable to complete a Business Combination within 24 months from the closing of the Initial Public Offering, or February 19, 2023, or during any extended period of time that the Company may have to consummate a Business Combination as a result of an amendment to the Certificate of Incorporation (the “Combination Period”), the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than ten business days thereafter, redeem the Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously released to the Company to pay its 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), and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the board of directors, liquidate and dissolve, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. | ||
Initial Public Offering [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Number of shares issued (in Shares) | 20,125,000 | ||
Share price per share (in Dollars per share) | $ 10 | ||
Gross proceeds | $ 201,300,000 | ||
Offering costs | 11,500,000 | ||
Deferred underwriting commission | $ 7,000,000 | ||
Payment to offering cost | $ 25,000 | ||
Over-Allotment Option [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Number of shares issued (in Shares) | 2,625,000 | ||
Private Placement [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Number of shares issued (in Shares) | 602,500 | ||
Share price per share (in Dollars per share) | $ 10 | ||
Gross proceeds | $ 6,000,000 | ||
Class A Common Stock [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Common stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |
Outstanding equity interests | $ 32,500,000 | ||
Class A Common Stock [Member] | Initial Public Offering [Member] | |||
Description of Organization and Business Operations (Details) [Line Items] | |||
Common stock par value (in Dollars per share) | $ 0.0001 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Tangible assets | $ 5,000,001 | ||
Subject to possible redemption | 10,500,000 | ||
Accumulated deficit | (8,959,097) | $ (1,032) | |
Reclassification common stock (in Shares) | 6,000,000 | ||
Federal deposit insurance corporation coverage limit | 250,000 | ||
IPO [Member] | |||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Additional paid in capital | 5,100,000 | ||
Accumulated deficit | $ 5,400,000 | ||
Class A Common Stock [Member] | |||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Reclassification common stock (in Shares) | 1,048,264 | ||
Company issued shares (in Shares) | 602,500 | 0 | |
Common stock subject to possible redemption (in Shares) | 20,125,000 | ||
Class A Common Stock [Member] | Private Placement [Member] | |||
Basis of Presentation and Summary of Significant Accounting Policies (Details) [Line Items] | |||
Company issued shares (in Shares) | 602,500 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of balance sheet - USD ($) | Jun. 30, 2021 | Mar. 31, 2021 | Feb. 19, 2021 |
As Previously Reported [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Total assets | $ 202,246,887 | $ 202,959,356 | $ 203,119,261 |
Total liabilities | 8,737,504 | 7,284,061 | 7,351,899 |
Class A common stock subject to possible redemption | 188,509,380 | 190,675,290 | 190,767,360 |
Preferred stock | |||
Additional paid-in capital | 7,334,449 | 5,168,561 | 5,051,492 |
Accumulated deficit | (2,335,137) | (169,225) | (52,158) |
Total stockholders’ equity (deficit) | 5,000,003 | 5,000,005 | 5,000,002 |
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) | 202,246,887 | 202,959,356 | 203,119,261 |
As Previously Reported [Member] | Class A Common Stock [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock | 188 | 166 | 165 |
As Previously Reported [Member] | Class B Common Stock [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock | 503 | 503 | 503 |
Adjustment [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Total assets | |||
Total liabilities | |||
Class A common stock subject to possible redemption | 12,740,620 | 10,574,710 | 10,482,640 |
Preferred stock | |||
Additional paid-in capital | (7,334,449) | (5,168,561) | (5,051,492) |
Accumulated deficit | (5,406,043) | (5,406,043) | (5,431,043) |
Total stockholders’ equity (deficit) | (12,740,620) | (10,574,710) | (10,482,640) |
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) | |||
Adjustment [Member] | Class A Common Stock [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock | (128) | (106) | (105) |
Adjustment [Member] | Class B Common Stock [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock | |||
As Restated [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Total assets | 202,246,887 | 202,959,356 | 203,119,261 |
Total liabilities | 8,737,504 | 7,284,061 | 7,351,899 |
Class A common stock subject to possible redemption | 201,250,000 | 201,250,000 | 201,250,000 |
Preferred stock | |||
Additional paid-in capital | |||
Accumulated deficit | (7,741,180) | (5,575,268) | (5,483,201) |
Total stockholders’ equity (deficit) | (7,740,617) | (5,574,705) | (5,482,638) |
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) | 202,246,887 | 202,959,356 | 203,119,261 |
As Restated [Member] | Class A Common Stock [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock | 60 | 60 | 60 |
As Restated [Member] | Class B Common Stock [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Common stock | $ 503 | $ 503 | $ 503 |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of cash flows - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | |
As Previously Reported [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Initial value of Class A common stock subject to possible redemption | $ 190,767,360 | $ 190,767,360 | |
Change in value of Class A common stock subject to possible redemption | (92,070) | (2,257,980) | |
Net loss | $ (2,165,912) | $ (168,193) | $ (2,334,105) |
As Previously Reported [Member] | Class A Common Stock [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Weighted average shares outstanding (in Shares) | 20,125,000 | 20,727,500 | 20,125,000 |
Basic and diluted earnings per share (in Dollars per share) | |||
As Previously Reported [Member] | Class B Common Stock [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Weighted average shares outstanding (in Shares) | 5,633,750 | 4,681,250 | 5,299,938 |
Basic and diluted earnings per share (in Dollars per share) | $ (0.38) | $ (0.04) | $ (0.44) |
Adjustment [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Initial value of Class A common stock subject to possible redemption | $ (190,767,360) | $ (190,767,360) | |
Change in value of Class A common stock subject to possible redemption | 92,070 | 2,257,980 | |
Net loss | |||
Adjustment [Member] | Class A Common Stock [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Weighted average shares outstanding (in Shares) | 602,500 | (11,054,667) | (4,894,296) |
Basic and diluted earnings per share (in Dollars per share) | $ (0.08) | $ (0.01) | $ (0.12) |
Adjustment [Member] | Class B Common Stock [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Weighted average shares outstanding (in Shares) | (602,500) | (442,721) | |
Basic and diluted earnings per share (in Dollars per share) | $ 0.3 | $ 0.03 | $ 0.32 |
As Restated [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Initial value of Class A common stock subject to possible redemption | |||
Change in value of Class A common stock subject to possible redemption | |||
Net loss | $ (2,165,912) | $ (168,193) | $ (2,334,105) |
As Restated [Member] | Class A Common Stock [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Weighted average shares outstanding (in Shares) | 20,727,500 | 9,672,833 | 15,230,704 |
Basic and diluted earnings per share (in Dollars per share) | $ (0.08) | $ (0.01) | $ (0.12) |
As Restated [Member] | Class B Common Stock [Member] | |||
Supplemental Disclosure of Noncash Financing Activities: | |||
Weighted average shares outstanding (in Shares) | 5,031,250 | 4,681,250 | 4,857,217 |
Basic and diluted earnings per share (in Dollars per share) | $ (0.08) | $ (0.01) | $ (0.12) |
Basis of Presentation and Sum_6
Basis of Presentation and Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net income (loss) per share - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | |
Class A [Member] | |||
Numerator: | |||
Allocation of net loss | $ (980,031) | $ (2,758,291) | |
Denominator: | |||
Basic and diluted weighted average ordinary shares outstanding | 20,727,500 | 17,083,104 | |
Basic and diluted net loss per ordinary share | $ (0.05) | $ (0.16) | |
Class B [Member] | |||
Numerator: | |||
Allocation of net loss | $ (1,032) | $ (237,886) | $ (793,731) |
Denominator: | |||
Basic and diluted weighted average ordinary shares outstanding | 4,375,000 | 5,031,250 | 4,915,865 |
Basic and diluted net loss per ordinary share | $ 0 | $ (0.05) | $ (0.16) |
Initial Public Offering (Detail
Initial Public Offering (Details) $ / shares in Units, $ in Millions | 1 Months Ended |
Feb. 19, 2021USD ($)$ / sharesshares | |
Initial Public Offering [Member] | |
Initial Public Offering (Details) [Line Items] | |
Number of shares issued (in Shares) | shares | 20,125,000 |
Shares issued price per share (in Dollars per share) | $ / shares | $ 10 |
Gross proceeds | $ 201.3 |
Offering costs | 11.5 |
Deferred underwriting commission | $ 7 |
Over-Allotment Option [Member] | |
Initial Public Offering (Details) [Line Items] | |
Number of shares issued (in Shares) | shares | 2,625,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Feb. 05, 2021 | Feb. 19, 2021 | Jan. 22, 2021 | Sep. 30, 2020 | Aug. 26, 2020 | Jun. 30, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 |
Related Party Transactions (Details) [Line Items] | |||||||||
Founder shares transferred (in Shares) | 30,000 | ||||||||
Aggregate of founder shares transferred (in Shares) | 90,000 | ||||||||
Stock splits, description | the Company effected a 1:1½ stock split of the Class B Common Stock and on February 16, 2021, the Company effected a 1:11/6 stock split of the Class B Common Stock, resulting in the Sponsor holding an aggregate of 4,941,250 Founder Shares and there being an aggregate of 5,031,250 Founder Shares outstanding. The Sponsor agreed to forfeit up to 656,250 Founder Shares to the extent that the over-allotment option was not exercised in full by the underwriter, so that the Founder Shares would represent 20.0% of the Company’s issued and outstanding shares of common stock after the Initial Public Offering (excluding the Private Placement Shares). | ||||||||
Subject to forfeiture (in Shares) | 656,250 | ||||||||
Share price per share (in Dollars per share) | $ 10 | ||||||||
Founder shares, description | (i) one year after the completion of the initial Business Combination and (ii) the date following the completion of the initial Business Combination on which the Company completes a liquidation, merger, capital stock exchange or other similar transaction that results in all of the stockholders having the right to exchange their common stock for cash, securities or other property and the Sponsor agreed not to transfer, assign or sell any of its Private Placement Shares until 30 days after the completion of the initial Business Combination. Notwithstanding the foregoing, if the closing price of the Class A Common Stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination, the Founder Shares will be released from the lockup. | ||||||||
Costs and expenses, related party | $ 200,000 | ||||||||
Borrowings | $ 200,000 | ||||||||
Working capital loans | $ 1,500,000 | ||||||||
Office space | $ 10,000 | ||||||||
Administrative expenses | $ 0 | $ 30,000 | $ 80,000 | ||||||
Business Acquisition [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Business Combination price per share (in Dollars per share) | $ 10 | ||||||||
Private Placement [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Number of shares issued (in Shares) | 602,500 | ||||||||
Share price per share (in Dollars per share) | $ 10 | ||||||||
Gross proceeds | $ 6,000,000 | ||||||||
Class B Common Stock [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Common stock, par value (in Dollars per share) | 0.0001 | $ 0.0001 | |||||||
Class B Common Stock [Member] | Founder Shares [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Issuance of ordinary shares (in Shares) | 2,875,000 | ||||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | ||||||||
Class B Common Stock [Member] | Founder Shares [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Sponsor paid | $ 25,000 | ||||||||
Class A Common Stock [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 | |||||||
Interest to purchase of common stock amount | $ 5,000,000 | ||||||||
Interest to purchase of common stock amount aggregate | $ 10,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2021shares | |
Commitments and Contingencies Disclosure [Abstract] | |
Additional purchase share | 2,625,000 |
Underwriting agreement, description | The underwriter was entitled to an underwriting discount of $0.20 per share, or approximately $4.0 million in the aggregate, paid upon the closing of the Initial Public Offering. In addition, $0.35 per share, or approximately $7.0 million in the aggregate will be payable to the underwriter for deferred underwriting commissions. |
Class A Common Stock Subject _3
Class A Common Stock Subject to Possible Redemption (Details) - Class A Common Stock [Member] - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Class A Common Stock Subject to Possible Redemption (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 subject to possible redemption | $ 20,125,000 |
Class A Common Stock Subject _4
Class A Common Stock Subject to Possible Redemption (Details) - Schedule of class A common stock subject to possible redemption - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Dec. 31, 2020 | |
Schedule of class A common stock subject to possible redemption [Abstract] | |||
Gross proceeds from Initial Public Offering | $ 201,250,000 | ||
Offering costs allocated to Class A common stock subject to possible redemption | (11,455,480) | ||
Accretion of carrying value to redemption value | 11,455,480 | ||
Class A common stock subject to possible redemption | $ 201,250,000 |
Stockholders_ Equity (Details)
Stockholders’ Equity (Details) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Stockholders’ Equity (Details) [Line Items] | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Shares subject to possible redemption | 20,125,000 | 0 |
Shareholders ownership, percentage | 50.00% | |
Founder Shares [Member] | ||
Stockholders’ Equity (Details) [Line Items] | ||
Shareholders ownership, percentage | 20.00% | |
Class A Common Stock [Member] | ||
Stockholders’ Equity (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 | 20,727,500 | |
Common Stock, Shares, Outstanding | 602,500 | 0 |
Common stock, shares issued | 602,500 | 0 |
Class B Common Stock [Member] | ||
Stockholders’ Equity (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 | 5,031,250 | 5,031,250 |
Common stock, shares issued | 5,031,250 | 5,031,250 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Schedule of fair value hierarchy of the valuation techniques | Sep. 30, 2021USD ($) |
Quoted Prices in Active Markets (Level 1) [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Marketable securities held in Trust Account | $ 201,262,131 |
Significant Other Observable Inputs (Level 2) [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Marketable securities held in Trust Account | |
Significant Other Unobservable Inputs (Level 3) [Member] | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Marketable securities held in Trust Account |