Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 17, 2023 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity Registrant Name | Priveterra Acquisition Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-39945 | |
Entity Tax Identification Number | 85-3940478 | |
Entity Address, Address Line One | 300 SE 2nd Street, Suite 600 | |
Entity Address, City or Town | Fort Lauderdale | |
Entity Address State Or Province | FL | |
Entity Address, Postal Zip Code | 33301 | |
City Area Code | 754 | |
Local Phone Number | 220-9229 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | true | |
Entity Central Index Key | 0001837607 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common stock | ||
Document and Entity Information | ||
Title of 12(b) Security | Class A common stock, par value $0.0001 per share | |
Trading Symbol | PMGM | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 2,002,272 | |
Units, each consisting of one share of Class A common stock and one-third of one redeemable warrant | ||
Document and Entity Information | ||
Title of 12(b) Security | Units, each consisting of one share of Class A common stock and one-third of one redeemable warrant | |
Trading Symbol | PMGMU | |
Security Exchange Name | NASDAQ | |
Class B common stock | ||
Document and Entity Information | ||
Entity Common Stock, Shares Outstanding | 6,900,000 | |
Redeemable Warrants Exercisable For Class Common Stock | ||
Document and Entity Information | ||
Title of 12(b) Security | Redeemable warrants, each warrant exercisable for one share of Class A common stock at an exercise price of $11.50 | |
Trading Symbol | PMGMW | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 457,085 | $ 67,909 |
Prepaid assets | 85,293 | 41,287 |
Total Current Assets | 542,378 | 109,196 |
Cash and Investments held in Trust Account | 21,073,782 | 279,384,429 |
Total Assets | 21,616,160 | 279,493,625 |
Current liabilities: | ||
Accounts payable and accrued expenses | 3,981,146 | 2,620,682 |
Franchise tax payable | 30,032 | 226,936 |
Promissory Note - Related Party | 150,000 | 150,000 |
Deferred tax liability | 588,899 | |
Excise tax liability | 424,059 | |
Income tax payable | 1,287,963 | 294,430 |
Total current liabilities | 5,873,200 | 3,880,947 |
Warrant liabilities | 812,611 | 669,759 |
Deferred underwriting commission | 1,255,800 | 5,892,600 |
Total liabilities | 7,941,611 | 10,443,306 |
Commitments and Contingencies | ||
Class A common stock subject to possible redemption, 2,002,272 shares and 27,600,000 shares as of March 31, 2023, and December 31, 2022, at redemption value of $10.48 and $10.09, respectively | 20,992,500 | 278,487,272 |
Stockholders' Deficit: | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | ||
Additional paid-in capital | 32,000 | 32,000 |
Accumulated deficit | (7,350,641) | (9,469,643) |
Total Stockholders' Deficit | (7,317,951) | (9,436,953) |
Total Liabilities, Common Stock Subject to Possible Redemption and Stockholders' Deficit | 21,616,160 | 279,493,625 |
Class A common stock subject to redemption | ||
Current liabilities: | ||
Class A common stock subject to possible redemption, 2,002,272 shares and 27,600,000 shares as of March 31, 2023, and December 31, 2022, at redemption value of $10.48 and $10.09, respectively | 20,992,500 | 278,487,272 |
Class B common stock | ||
Stockholders' Deficit: | ||
Common stock | $ 690 | $ 690 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Class A Common stock | ||
Redemption of common stock | 25,597,728 | |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, shares authorized | 280,000,000 | 280,000,000 |
Common shares, shares issued | 0 | 0 |
Common shares, shares outstanding | 0 | 0 |
Class A common stock subject to redemption | ||
Redemption of common stock | 2,002,272 | 27,600,000 |
Redemption price per share | $ 10.48 | $ 10.09 |
Class A common stock not subject to redemption | ||
Common shares, shares issued | 0 | 0 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, shares authorized | 20,000,000 | 20,000,000 |
Common shares, shares issued | 6,900,000 | 6,900,000 |
Common shares, shares outstanding | 6,900,000 | 6,900,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating costs | $ 1,743,485 | $ 389,073 |
Loss from operations | (1,743,485) | (389,073) |
Other income (expense) | ||
Unrealized change in fair value of warrants | (142,852) | 3,032,880 |
Gain on forgiveness of deferred underwriting fee payable | 200,087 | |
Interest earned on investments held in Trust Account | 1,702,369 | 129,586 |
Total other income (expense), net | 1,759,604 | 3,162,466 |
Income before provision for income taxes | 16,119 | 2,773,393 |
Provision for income taxes | (404,634) | |
Net (loss) income | $ (388,515) | $ 2,773,393 |
Class B common stock | ||
Other income (expense) | ||
Basic weighted average shares outstanding | 6,900,000 | 6,900,000 |
Diluted weighted average shares outstanding | 6,900,000 | 6,900,000 |
Basic net (loss) income per share | $ (0.02) | $ 0.08 |
Diluted net (loss) income per share | $ (0.02) | $ 0.08 |
Class A Common Stock | ||
Other income (expense) | ||
Basic weighted average shares outstanding | 13,094,621 | 27,600,000 |
Diluted weighted average shares outstanding | 13,094,621 | 27,600,000 |
Basic net (loss) income per share | $ (0.02) | $ 0.08 |
Diluted net (loss) income per share | $ (0.02) | $ 0.08 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($) | Class A Common Stock | Class B Common Stock Common Stock | Additional Paid-In Capital | Accumulated deficit | Total |
Balance at the beginning at Dec. 31, 2021 | $ 690 | $ 32,000 | $ (16,962,545) | $ (16,929,855) | |
Balance at the beginning (in shares) at Dec. 31, 2021 | 6,900,000 | ||||
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT | |||||
Net loss (income) | 2,773,393 | 2,773,393 | |||
Balance at the end at Mar. 31, 2022 | $ 690 | 32,000 | (14,189,152) | (14,156,462) | |
Balance at the end (in shares) at Mar. 31, 2022 | 6,900,000 | ||||
Balance at the beginning at Dec. 31, 2022 | $ 690 | 32,000 | (9,469,643) | (9,436,953) | |
Balance at the beginning (in shares) at Dec. 31, 2022 | 6,900,000 | ||||
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT | |||||
Accretion of Class A common stock to redemption value | 2,931,576 | 2,931,576 | |||
Excise tax imposed on common stock redemptions | $ 258,999,909 | (424,059) | (424,059) | ||
Net loss (income) | (388,515) | (388,515) | |||
Balance at the end at Mar. 31, 2023 | $ 690 | $ 32,000 | $ (7,350,641) | $ (7,317,951) | |
Balance at the end (in shares) at Mar. 31, 2023 | 6,900,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (388,515) | $ 2,773,393 |
Adjustments to reconcile net (loss) income to net cash used in operating activities: | ||
Interest earned on investments held in Trust Account | (1,702,369) | (129,586) |
Unrealized loss on change in fair value of warrants | 142,852 | (3,032,880) |
Gain on forgiveness of deferred underwriting fee payable | (200,087) | |
Changes in operating assets and liabilities: | ||
Prepaid assets | (44,006) | 20,146 |
Income and Franchise tax payable | 796,629 | (150,000) |
Deferred tax liability | (588,899) | |
Accrued expenses | 1,360,464 | 107,258 |
Net cash used in operating activities | (623,931) | (411,669) |
Cash Flows from Investing Activities: | ||
Principal invested into Trust account | (240,000) | |
Withdrawal from Trust Account for tax obligations | 1,253,107 | 80,500 |
Cash withdrawn for redemptions | 258,999,909 | |
Net cash provided by investing activities | 260,013,016 | 80,500 |
Cash Flows from Financing Activities: | ||
Redemption of Class A common stock | (258,999,909) | |
Net cash used in financing activities | (258,999,909) | |
Net Change in Cash | 389,176 | (331,169) |
Cash - Beginning of period | 67,909 | 497,412 |
Cash - End of period | 457,085 | $ 166,243 |
Supplemental Disclosure of Non-cash Financing Activities: | ||
Forgiveness of deferred underwriting fee payable allocated to Class A common stock | 4,436,713 | |
Excise tax liability accrued for common stock redemptions | $ 424,059 |
Organization and Business Opera
Organization and Business Operation | 3 Months Ended |
Mar. 31, 2023 | |
Organization and Business Operation | |
Organization and Business Operation | Note 1 — Organization and Business Operation Organization and General Priveterra Acquisition Corp. (the “Company”) is a blank check company incorporated in Delaware on November 17, 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 (“Business Combination”). On November 15, 2022, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Priveterra Merger Sub Inc., a Delaware corporation and wholly-owned subsidiary of Priveterra Acquisition Corp. The transactions contemplated by the Merger Agreement are intended to serve as the Company’s initial Business Combination. See Note 6 for further information. On January 5, 2023, in connection with the Business Combination proposal, a purported stockholder of the Company filed a complaint in the United States District Court for the Southern District of New York against the Company and its board of directors, alleging that the registration statement on Form S-4 filed on December 27, 2022 with the U.S. Securities and Exchange Commission (“SEC”) omitted material information related to the Business Combination. Since the filing of the complaint, several purported stockholders of the Company have also sent demand letters to the Company’s counsel, similarly alleging that the registration statement filed by the Company on December 27, 2022 with the SEC omitted material information related to the Business Combination and demanding that the Company, its board of directors and/or AEON Biopharma, Inc., a Delaware corporation (“AEON”), make supplemental corrective disclosures addressing the alleged deficiencies. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies. As of March 31, 2023, the Company had not commenced any operations. All activity for the period from November 17, 2020, the Company’s inception, through March 31, 2023, relates to the Company’s formation and the initial public offering (“IPO”), described below, and 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 generates non-operating income in the form of interest income from the proceeds derived from the IPO and unrealized gains and losses on the change in fair value of it warrants. The Company has selected December 31 as its fiscal year end. The Company’s sponsor is Priveterra Sponsor, LLC, a Delaware limited liability company (the “Sponsor”). On November 16, 2022, Guggenheim agreed to waive its entitlement to the deferred underwriting commission of $3,767,400 to which it became entitled upon completion of the Company’s IPO, subject to the consummation of the transaction. As a result, the Company derecognized the deferred underwriting fee payable of $3,767,400 and recorded $3,604,829 of the forgiveness of the deferred underwriting fee allocated to public shares to the carrying value of the shares of Class A common stock and the remaining balance of $162,571 was as a gain from extinguishment of liability allocated to warrant liabilities. On January 23, 2023, Wells Fargo agreed to waive its entitlement to the deferred underwriting commission of $4,636,800 to which it became entitled to upon completion of the Company’s IPO. As a result, the Company during its quarter ended March 31, 2023 derecognized the deferred underwriting fee payable of $4,636,800 and recorded $4,436,713 of the forgiveness of the deferred underwriting fee allocated to public shares to the carrying value of the shares of Class A common stock and the remaining balance of $200,087 was as a gain from extinguishment of liability for the portion allocated to warrant liabilities. As of March 31, 2023, the balance of the deferred underwriting fee payable was $1,255,800. Financing The registration statement for the Company’s IPO was declared effective on February 8, 2021 (the “Effective Date”). On February 11, 2021, the Company consummated an IPO of 27,600,000 units at $10.00 per unit (the “Units”), which includes the full exercise by the underwriters of the over-allotment option to purchase an additional 3,600,000 Units, at $10.00 per Unit, generating gross proceeds of $276,000,000, which is discussed in Note 3. Simultaneously with the closing of the IPO, the Company consummated the sale of 5,213,333 warrants (the “Private Placement Warrants”), at a price of $1.50 per warrant, which is discussed in Note 4. Each warrant entitles the holder to purchase one share of common stock at a price of $11.50 per share, generating gross proceeds of $7,820,000. Transaction costs of the IPO amounted to $15,630,212 consisting of $5,520,000 of underwriting fees, $9,660,000 of deferred underwriting fees, and $450,212 of other offering costs. Of the transaction costs, $655,046 is included in offering costs on the statements of operations and $14,975,166 is included in equity. Trust Account Following the closing of the IPO on February 11, 2021, $276,000,000 ($10.00 per Unit) from the net offering proceeds of the sale of the Units in the IPO and the sale of the Private Placement Warrants was placed in a trust account (the “Trust Account”), located in the United States with Continental Stock Transfer & Trust Company acting as trustee and will be invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act of 1940, as amended (“Investment Company Act”), with a maturity of 185 days or less or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its franchise and income tax obligations, if any, the proceeds from the Company’s IPO and the sale of the Private Placement Warrants will not be released from the Trust Account until the earliest of (i) the completion of initial Business Combination, (ii) the redemption of the Company’s public shares if the Company does not complete an initial Business Combination within 24 months from the closing of the IPO, subject to applicable law, or (iii) the redemption of the Company’s public shares properly submitted in connection with a stockholder vote to amend its amended and restated certificate of incorporation to modify the substance or timing of the Company’s obligation to redeem 100% of its public shares if the Company has not consummated an initial business combination within 24 months from the closing of the IPO or with respect to any other material provisions relating to stockholders’ rights or pre-initial Business Combination activity. The proceeds deposited in the Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims of the Company’s public stockholders. In connection with the vote at the special meeting of stockholders held on February 10, 2023 (the “Special Meeting”) the holders of 25,597,728 shares of Class A common stock properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.11 per share, for an aggregate redemption amount of $258,999,909, resulting in 2,002,272 shares of Class A common stock after redemptions. The trust account balance after the redemption payments was $20,259,152. As of March 31, 2023, the trust account balance was $21,073,782. Initial Business Combination The Company will provide its public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of the initial Business Combination either (i) in connection with a stockholder meeting called to approve the initial Business Combination or (ii) by means of a tender offer. The decision as to whether the Company will seek stockholder approval of a proposed initial Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The stockholders will be entitled to redeem their shares for a pro rata portion of the amount then on deposit in the Trust Account (initially approximately $10.00 per share, plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). The shares of common stock subject to redemption are recorded at a redemption value and classified as temporary equity upon the IPO, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” In such case, the Company will proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the issued and outstanding shares voted are voted in favor of the Business Combination. The Sponsor, officers and directors have agreed to (i) waive their redemption rights with respect to their founder shares and public shares in connection with the completion of the initial Business Combination, (ii) waive their redemption rights with respect to their founder shares and public shares in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation, and (iii) waive their rights to liquidating distributions from the Trust Account with respect to their founder shares if the Company fails to complete the initial Business Combination within the Combination Period. On December 12, 2022, the Company entered into a Business Combination Agreement (the “Business Combination Agreement”) by and among the Company, Priveterra Merger Sub, Inc., a Delaware corporation (“Merger Sub”), and AEON Biopharma, Inc., a Delaware corporation (“AEON”). The Business Combination Agreement provides, among other things, that on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into AEON, with AEON surviving as a wholly owned subsidiary of the Company (the “Merger”). Upon the closing of the Merger (the “Closing”), the Company will change its name to “AEON Biopharma, Inc.” The date on which the Closing actually occurs is hereinafter referred to as the “Closing Date.” Liquidation The Company will have 24 months from the closing of the IPO to complete the initial Business Combination (the “Combination Period”). However, if the Company is unable to complete the initial Business Combination within 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 liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, 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 Company’s Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or similar agreement or business combination agreement, 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 $10.10 per 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 prospective target business who 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 underwriters of the Company’s IPO against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). However, the Company has not asked its Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether its Sponsor has sufficient funds to satisfy its indemnity obligations and believe that the Company’s Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure that its Sponsor would be able to satisfy those obligations. Liquidity, Capital Resources and Going Concern The Company’s liquidity needs up to February 11, 2021, the date of the IPO, had been satisfied through a capital contribution from the Sponsor of $25,000 (see Note 5) for the founder shares and the loans under an unsecured promissory note from the Sponsor of $73,295 (see Note 5). In order to finance transaction costs in connection with a Business Combination, the Company’s 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 (see Note 5). The Company’s IPO was on February 11, 2021. As of March 31, 2023, the Company had $457,085 in its operating bank account, and working capital deficit of $5,249,539 (excluding taxes payable which is funded by earnings from the Trust Account) and has incurred and expects to incur additional significant costs in pursuit of its financing and acquisition plans. Additionally, the Company has until August 11, 2023 (originally February 11, 2023; see Note 6) to consummate a Business Combination. In connection with the Company’s assessment of going concern considerations in accordance with FASB ASC Topic 205-40, “Presentation of Financial Statements– Going Concern,” Management has determined that the liquidity condition and mandatory liquidation, should a Business Combination not occur, and potential subsequent dissolution raises substantial doubt about the Company’s ability to continue as a going concern. The Company intends to complete a Business Combination before the mandatory liquidation date. No adjustments have been made to the carrying amounts of assets or liabilities. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Form 10-K/A for the year ended December 31, 2022 as filed with the SEC on April 10, 2023, which contains the audited financial statements and notes thereto. The interim results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any future interim periods. Principles of Consolidation The accompanying consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiary where the Company has the ability to exercise control. All significant intercompany balances and transactions have been eliminated in consolidation. Emerging Growth Company Status 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 a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s condensed consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. Use of Estimates The preparation of unaudited condensed consolidated 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 unaudited condensed consolidated financial statements and the reported amounts of revenues 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 unaudited condensed consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these unaudited condensed consolidated financial statements is the determination of the fair value of the warrant liability. Such estimates may be subject to change as more current information becomes available and 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 approximately $457,000 $68,000 Investments Held in Trust Account At March 31, 2023 and December 31, 2022, substantially all of the assets held in the Trust Account were held as cash held by Continental Stock Transfer & Trust Company. At December 31, 2022, the Company’s portfolio of investments held in the Trust Account was 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, or a combination thereof. The Company classifies its U.S. Treasury and equivalent securities as held-to-maturity in accordance with ASC Topic 320 “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying condensed balance sheets and adjusted for the amortization or accretion of premiums or discounts. Offering Costs associated with the Initial Public Offering The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - “Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering. Offering costs are charged to temporary equity or the statement of operations based on the relative value of the Public Warrants to the proceeds received from the Units sold upon the completion of the IPO. Accordingly, offering costs totaling $15,630,212 (consisting of $5,520,000 of underwriting discount, $9,660,000 of deferred underwriting discount, and $450,212 of other offering costs) were recognized with $ 655,046 which was allocated to the Public Warrants and Private Warrants, included in the consolidated statement of operations and $14,975,166 included in temporary equity. 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 limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. 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 Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Class A common stock subject to mandatory redemption (if any) is classified as a liability instrument and is measured at fair value. Conditionally redeemable Class A common stock (including Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, Class A common stock is classified as stockholders’ equity. The Company’s Class A common stock feature certain redemption rights that is considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ deficit section of the Company’s condensed consolidated balance sheets. As of March 31, 2023 and December 31, 2022, the common stock subject to possible redemption reflected on the condensed consolidated balance sheets are reconciled in the following table: Class A common stock subject to possible redemption, December 31, 2022 $ 278,487,272 Plus: Waiver of Class A shares issuance costs 4,436,712 Less: Redemption (258,999,909) Accretion of carrying value to redemption value (2,931,575) Class A common stock subject to possible redemption, March 31, 2023 $ 20,992,500 See Note 6 for the current amount held in the Trust Account and the ordinary shares currently subject to redemption following the Company’s February 10, 2023 Special Meeting of shareholders to extend the Business Combination deadline date from February 11, 2023 to August 11, 2023 and the waiver of underwriting fee on January 23, 2023. Net Income (Loss) per Common Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. The Company has two classes of common shares, which are referred to as Class A common stock and Class B common stock. Earnings and losses are shared pro rata between the two classes of stock. Private and public warrants to purchase 14,480,000 Class A common stock at $11.50 per share were issued on February 8, 2021. No warrants were exercised during the three months ended March 31, 2023 and 2022. The calculation of diluted net income (loss) per common share does not consider the effect of the warrants issued in connection with the (i) IPO, (ii) exercise of over-allotment, and (iii) Private Placement since the exercise of the warrants are contingent upon the occurrence of future events. As of March 31, 2023 and 2022, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the periods. Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the redemption value approximates fair value. Below is a reconciliation of the net income (loss) per share of common stock: For the Three Months Ended For the Three Months Ended March 31, 2023 March 31, 2022 Class A Class B Class A Class B Basic and diluted net (loss) income per common share Numerator: Allocation of net (loss) income $ (254,441) $ (134,074) $ 2,218,714 $ 554,679 Denominator Weighted-average shares outstanding 13,094,621 6,900,000 27,600,000 6,900,000 Basic and diluted net (loss) income per common share $ (0.02) $ (0.02) $ 0.08 $ 0.08 Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the condensed consolidated balance sheets, primarily due to its short-term nature, other than the derivative warrant liability. Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the condensed consolidated statements of operations. Derivative assets and liabilities are classified in the consolidated balance sheets as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The Company has determined the warrants are a derivative instrument. 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 consist of: ● 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. Income Taxes The Company accounts for income taxes under ASC 740, “Income Taxes.” ASC 740, requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the unaudited condensed consolidated financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of March 31, 2023 and December 31, 2022, the Company’s deferred tax asset had a full valuation allowance recorded against it. The Company’s tax rate was 2,510.10% and 0.00% for the three months ended March 31, 2023 and 2022. The effective tax rate differs from the statutory tax rate of 21% for the three months ended March 31, 2023 and 2022, primarily due to changes in the valuation allowance on the deferred tax assets. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of March 31, 2023 and December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income taxation by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. 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 condensed consolidated financial statements. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. As a result of this action, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. Further, the impact of this action and related sanctions on the world economy are not determinable as of the date of these condensed consolidated financial statements. The specific impact on the Company’s financial condition, results of operations, and cash flows is also not determinable as of the date of these condensed consolidated financial statements. On January 5, 2023, in connection with the Business Combination Proposal, a purposed stockholder of the Company filed a complaint in the United States District Court for the Southern District of New York, against the Company and its board of directors, alleging that the registration statement on Form S-4 filed on December 27, 2022 with the SEC omitted material information related to the Business Combination. Since the filing of the complaint, several purported stockholder of the Company have also sent demand letters to the Company’s counsel, similarly alleging that the registration statement filed by the Company on December 27, 2022 with the SEC omitted material information related to the Business Combination and demanding that the Company, its board of directors and/or AEON make supplemental corrective disclosures addressing the alleged deficiencies. Inflation Reduction Act of 2022 On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its stockholder from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. On December 27, 2022, the Treasury published Notice 2023-2, which provided clarification on some aspects of the application of the excise tax. The notice generally provides that if a publicly traded U.S. corporation completely liquidates and dissolves, distributions in such complete liquidation and other distributions by such corporation in the same taxable year in which the final distribution in complete liquidation and dissolution is made are not subject to the excise tax. Although such notice clarifies certain aspects of the excise tax, the interpretation and operation of aspects of the excise tax (including its application and operation with respect to SPACs) remain unclear and such interim operating rules are subject to change. Because the application of this excise tax is not entirely clear, any redemption or other repurchase effected by the Company in connection with a business combination, extension vote or otherwise, may be subject to this excise tax. Because any such excise tax would be payable by the Company and not by the redeeming holder, it could cause a reduction in the value of Class A common stock, cash available with which to effectuate a business combination or cash available for distribution in a subsequent liquidation. Whether and to what extent the Company would be subject to the excise tax in connection with a business combination will depend on a number of factors, including (i) the structure of the business combination, (ii) the fair market value of the redemptions and repurchases in connection with the business combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with the business combination (or any other equity issuances within the same taxable year of the business combination) and (iv) the content of any subsequent regulations, clarifications, and other guidance issued by the Treasury. Further, the application of the excise tax in respect of distributions pursuant to a liquidation of a publicly traded U.S. corporation is uncertain and has not been addressed by the Treasury in regulations, and it is possible that the proceeds held in the trust account could be used to pay any excise tax owed the Company in the event it is unable to complete a business combination in the required time and redeem 100% of the remaining Class A common stock in accordance with the amended and restated certificate of incorporation, in which case the amount that would otherwise be received by the public stockholders in connection with the Company’s liquidation would be reduced. Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 also requires additional disclosures regarding significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The Company adopted the provisions of this guidance on January 1, 2023. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. Besides the above, the Company’s 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 condensed consolidated financial statements. |
INITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING | 3 Months Ended |
Mar. 31, 2023 | |
INITIAL PUBLIC OFFERING | |
INITIAL PUBLIC OFFERING | NOTE 3. INITIAL PUBLIC OFFERING On February 11, 2021, the Company sold 27,600,000 Units, at a purchase price of $ 10.00 per Unit, which includes the full exercise by the underwriters of their option to purchase an additional 3,600,000 Units at $10.00 per Unit. Each Unit was sold at $10.00 and consisted of one share of Class A common stock, and one The Company paid underwriting fees at the closing of the IPO of $5,520,000. As of February 11, 2021 an additional fee of $9,660,000 (see Note 6) was deferred and will become payable upon the Company’s completion of an initial Business Combination. The deferred portion of the fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event the Company completes its initial Business Combination. Warrants — The warrants will become exercisable on the later of 12 months from the closing of the IPO or 30 days after the completion of its initial Business Combination, and will expire five years after the completion of the Company’s initial Business Combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation. The Company has agreed that as soon as practicable, but in no event later than fifteen (15) business days after the closing of the initial Business Combination, it will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the Class A common stock issuable upon exercise of the warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration or redemption of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective by the sixtieth (60th) business day after the closing of the initial Business Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if the Company’s Class A common stock are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elect, it will not be required to file or maintain in effect a registration statement, and in the event the Company does not so elect, it will use its best efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. Once the warrants become exercisable, the Company may call the warrants for redemption for cash: ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon not less than 30 days ’ prior written notice of redemption to each warrant holder (the “ 30 -day redemption period”) ● if, and only if, the closing price of the common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock capitalizations, reorganizations, recapitalizations and the like and for certain issuances of Class A common stock and equity-linked securities for capital raising purposes in connection with the closing of the initial Business Combination as described elsewhere in the IPO) for any 20 trading days within a 30 -trading day period ending three business days before the Company sends to the notice of redemption to the warrant holders; and ● if the last sale price of the Class A common stock is less than $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like), the Private Placement Warrants must also be concurrently called for redemption on the same terms (except as described above with respect to a holder’s ability to cashless exercise its warrants) as the outstanding public warrants, as described above. |
PRIVATE PLACEMENT
PRIVATE PLACEMENT | 3 Months Ended |
Mar. 31, 2023 | |
PRIVATE PLACEMENT | |
PRIVATE PLACEMENT | NOTE 4. PRIVATE PLACEMENT Simultaneously with the closing of the IPO, the Sponsor purchased an aggregate of 5,213,333 Private Placement Warrants, at a price of $1.50 per Private Placement Warrant, for an aggregate purchase price of $7,820,000. Each Private Placement Warrant was identical to the Public Warrants sold in the IPO, except that the Private Placement Warrants, so long as they are held by the Sponsor or its permitted transferees, (i) will not be redeemable by the Company, (ii) may not (including the Class A common stock issuable upon exercise of these warrants), subject to certain limited exceptions, be transferred, assigned or sold by the holders until 30 days after the completion of the Company’s initial Business Combination, and (iii) may be exercised by the holders on a cashless basis. The Company’s Sponsor has agreed to (i) waive its redemption rights with respect to its founder shares and public shares in connection with the completion of the Company’s initial Business Combination, (ii) waive its redemption rights with respect to its founder shares and public shares in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation (A) to modify the substance or timing of the Company’s obligation to redeem 100% of its public shares if the Company does not complete its initial Business Combination within 18 months (or up to 24 months if the Company extends the period of time) from the closing of the Company’s IPO on February 11, 2021 or (B) with respect to any other provision relating to stockholders’ rights or pre-initial Business Combination activity and (iii) waive its rights to liquidating distributions from the Trust Account with respect to its founder shares if the Company fails to complete its initial Business Combination within 18 months (or up to 24 months if the Company extends the period of time) from the closing of the Company’s IPO on February 11, 2021. In addition, the Company’s Sponsor has agreed to vote any founder shares held by them and any public shares purchased during or after the Company’s IPO (including in open market and privately negotiated transactions) in favor of the Company’s initial Business Combination. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2023 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 5. RELATED PARTY TRANSACTIONS Founder Shares On December 17, 2020, the Sponsor paid $25,000, or approximately $0.004 per share, to cover certain offering costs in consideration for 5,750,000 Class B common stock, par value $0.0001 (the “Founder Shares”). On February 8, 2021, as part of an upsizing of the IPO, the Company effected a stock split in which each issued share of Class B common stock that was outstanding was converted into one and two tenths shares of Class B common stock, resulting in an aggregate of 6,900,000 shares of Class B common stock issued and outstanding. All shares and associated amounts have been retroactively restated to reflect the surrender of these shares. The founder shares included an aggregate of up to 900,000 shares subject to forfeiture if the over-allotment option was not exercised by the underwriters in full. As a result of the underwriters’ election to fully exercise of their over-allotment option, the 900,000 shares were no longer subject to forfeiture. The initial stockholders have agreed not to transfer, assign or sell any of their Founder Shares and any Class A common stock issuable upon conversion thereof until the earlier to occur of: (A) one year after the completion of the initial Business Combination and (B) 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 its stockholders having the right to exchange their common stock for cash, securities or other property (the “lock-up”). Notwithstanding the foregoing, if the closing price of the Company’s 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 180 days after the initial Business Combination, the founder shares will be released from the lockup. Promissory Note – Related Party On December 17, 2020, the Sponsor agreed to loan the Company up to $75,000 to be used for a portion of the expenses of the IPO. On January 13, 2021, the Sponsor agreed to loan the Company up to an additional $50,000 to be used for a portion of the expenses of the IPO. These loans are non-interest bearing, unsecured and were due at the earlier of June 30, 2021 or the closing of the IPO. The loan was repaid upon the closing of the IPO out of the offering proceeds. As of March 31, 2023 and December 31, 2022, the Company had no amounts outstanding borrowings under the promissory note. Additionally, this note is no longer available to the Company. On November 28, 2022, the Sponsor issued the promissory note to the Company, pursuant to which the Company was entitled to borrow up to an aggregate principal amount of $150,000 (the “Second Note”). The promissory note is non-interest bearing and payable on the earlier of the date on which the Company consummates a Business Combination or the date that the winding up of the Company is effective. In the month of December, the Sponsor deposited a total of $150,000 of such funds in the operating account. As of March 31, 2023 and December 31, 2022, the outstanding principal balance under the promissory notes amounted to an aggregate of $150,000. Working Capital Loans 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 the initial Business Combination, the Company would repay the Working Capital Loans. In the event that the initial Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans but no proceeds from the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible into Private Placement Warrants at a price of $1.50 per warrant at the option of the lender (the “Working Capital Warrants”). Such warrants would be identical to the Private Placement Warrants. In June 2021 the Company had $100,000 of Working Capital Loans outstanding which were converted into 66,667 Working Capital Warrants. As of March 31, 2023 and December 31, 2022, the Company had no borrowings under the Working Capital Loans. Administrative Service Fee The Company has agreed, commencing on February 8, 2021, to pay $25,000 per month for administrative and other services, of which $10,000 per month will be paid to the Sponsor for office space and administrative services provided to members of the management team and up to $15,000 will be used to compensate the Company’s Chief Operating Officer and Chief Financial Officer and Secretary for a portion of their time spent on the Company’s affairs. Upon completion of the Company’s Business Combination or the Company’s liquidation, the Company will cease paying these monthly fees. For the three months ended March 31, 2023 and 2022, $75,000 was recognized in the condensed consolidated statements of operations and has been paid. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 6. COMMITMENTS AND CONTINGENCIES Underwriters Agreement The underwriters are entitled to a deferred fee of $0.35 per Unit, or $9,660,000 in the aggregate. The deferred fee will become payable to the underwriters from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. On November 16, 2022, the Company and one of the underwriters executed a waiver letter confirming the underwriter’s waiver of its deferred fee under the terms of the underwriting agreement. On January 23, 2023, Wells Fargo agreed to waive its entitlement to the deferred underwriting commission of $4,636,800 to which it became entitled to upon completion of the Company’s IPO, subject to the consummation of the transaction. As a result, the Company derecognized the deferred underwriting fee payable of $4,636,800 and recorded $4,436,713 of the forgiveness of the deferred underwriting fee allocated to Public Shares to the carrying value of the shares of Class A common stock and the remaining balance of $200,087 was as a gain from extinguishment of liability for the portion allocated to warrant liabilities. As of March 31, 2023 and December 31, 2022, the deferred underwriting fee payable is $1,255,800 and $5,892,600, respectively. Excise Tax In connection with the vote to approve the Charter Amendment Proposal, holders of 25,597,728 shares of Class A Common Stock properly exercised their right to redeem their shares of Class A Common Stock for an aggregate redemption amount of $258,999,909. As of March 31, 2023, the Company recorded $424,059 of excise tax liability calculated as 1% of shares redeemed less the number of shares to be issued as stated in the Business Combination Agreement. The liability does not impact the condensed consolidated statements of operations and is offset against additional paid-in capital or accumulated deficit if additional paid-in capital is not available. This excise tax liability can be offset by future share issuances within the same fiscal year which will be evaluated and adjusted in the period in which the issuances occur. Should the Company liquidate prior to December 31, 2023, the excise tax liability will not be due. Registration Rights The holders of the founder shares, Private Placement Warrants, and warrants that may be issued upon conversion of Working Capital Loans will have registration rights to require the Company to register a sale of any of its securities held by them pursuant to a registration rights agreement to be signed in connection with the Company’s IPO. These holders will be entitled to make up to three demands, excluding short form registration demands, that the Company registers such securities for sale under the Securities Act. In addition, these holders will have “piggy-back” registration rights to include their securities in other registration statements filed by the Company. Business Combination Agreement On December 12, 2022, the Company entered into the Business Combination Agreement by and among the Company, Merger Sub, and AEON AEON. The Business Combination Agreement provides, among other things, that on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into AEON, with AEON surviving as a wholly owned subsidiary of the Company. Upon the Closing, the Company will change its name to “AEON Biopharma, Inc.” Pursuant to the Business Combination Agreement, at the effective time of the Merger, each option, whether vested or unvested, exercisable for AEON 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. Under the Business Combination Agreement, the Company will acquire all of the outstanding equity interests of AEON (including equity interests issued upon conversion of the outstanding convertible notes of AEON) in exchange for shares of the Company’s Class A common stock, par value $0.0001 per share (the “Class A Common Stock”), based on an implied AEON equity value of $165,000,000, to be paid to AEON stockholders at the effective time of the Merger, except that 809,000 shares of the Company’s Class A Common Stock otherwise issuable as merger consideration shall be held back to satisfy the exercise of certain of AEON’s convertible notes upon the maturity thereof. For more information regarding the Business Combination Agreement, please see the Current Report on Form 8-K filed on May 1, 2023, and registration statement Amendment No. 2 to Form S-4 filed on May 9, 2023. Special Meeting of Stockholders of the Company On January 11, 2023, the Company and AEON entered into interim financing letter agreements with certain investors for a total aggregate amount of $20 million. On January 5, 2023, in connection with the Business Combination proposal, a purposed stockholder of the Company filed a complaint in the United States District Court for the Southern District of New York, against the Company and its board of directors, alleging that the registration statement on Form S-4 filed on December 27, 2022 with the SEC omitted material information related to the Business Combination. Since the filing of the complaint, several purported stockholders of the Company have also sent demand letters to the Company’s counsel, similarly alleging that the registration statement filed by the Company on December 27, 2022 with the SEC omitted material information related to the Business Combination and demanding that the Company, its board of directors and/or AEON make supplemental corrective disclosures addressing the alleged deficiencies. On January 23, 2023, the Company and a second underwriter executed a waiver letter confirming the underwriter’s waiver of its deferred fee under the terms of the underwriting agreement which represents an additional $4,636,800 of the deferred fee as waived. On February 10, 2023, at the Special Meeting of stockholders of the Company, stockholders of the Company approved the certificate of amendment to the second amended and restated certificate of incorporation to amend the Company’s contractual expiration date of February 11, 2023 by changing the date by which the Company must cease all operations except for the purpose of winding up if it fails to complete a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination from February 11, 2023 to August 11, 2023. In connection with the vote at the Special Meeting, the holders of 25,597,728 shares of Class A Common Stock, par value $0.0001 per share, properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.11 per share, for an aggregate redemption amount of $258,999,909. The remaining shares to be potentially redeemed is 2,002,272. |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 3 Months Ended |
Mar. 31, 2023 | |
STOCKHOLDERS' DEFICIT | |
STOCKHOLDERS' DEFICIT | NOTE 7. STOCKHOLDERS’ DEFICIT Preferred Stock — Class A Common Stock— Class B Common Stock — Holders of Class A common stock and holders of Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders except as required by law. Unless specified in the Company’s amended and restated certificate of incorporation, or as required by applicable provisions of the Delaware state law or applicable stock exchange rules, the affirmative vote of a majority of the Company’s shares of common stock that are voted is required to approve any such matter voted on by its stockholders. 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 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 Class A common stock outstanding after such conversion (after giving effect to any redemptions of Class A common stock by public stockholders), including the total number 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 Class A common stock or equity-linked securities exercisable for or convertible into Class A common stock issued, or to be issued, to any seller in the initial Business Combination and any Private Placement Warrants 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. |
RECURRING FAIR VALUE MEASUREMEN
RECURRING FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2023 | |
RECURRING FAIR VALUE MEASUREMENTS | |
RECURRING FAIR VALUE MEASUREMENTS | NOTE 8. RECURRING FAIR VALUE MEASUREMENTS At March 31, 2023 and December 31, 2022, the Company’s warrant liability was valued at $812,611 and $669,759, respectively. Under the guidance in ASC 815-40 the Warrants do not meet the criteria for equity treatment. As such, the Warrants must be recorded on the condensed balance sheet at fair value. This valuation is subject to re-measurement at each balance sheet date. With each re-measurement, the warrant valuation will be adjusted to fair value, with the change in fair value recognized in the Company’s condensed consolidated statement of operations. The Company’s warrant liability for the Private Placement Warrants is based on a valuation model utilizing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. The fair value of the Private Warrant liability classified within Level 3 of the fair value hierarchy. The Company’s warrant liability for the Public Warrants is based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. The fair value of the Public Warrant liability is classified within Level 2 of the fair value hierarchy due to limited trading activity. The Company classifies its U.S. Treasury and equivalent securities as held-to-maturity in accordance with ASC Topic 320 “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying condensed consolidated balance sheets and adjusted for the amortization or accretion of premiums or discounts. At March 31, 2023, assets held in the Trust Account were comprised of $21,073,782 in cash held by Continental Stock Transfer & Trust. During the three months ended March 31, 2023, the Company withdrew $1,253,107 in interest income from the Trust Account for tax obligation purposes. At December 31, 2022, assets held in the Trust Account were comprised of $4,858 in cash and $279,379,571 in U.S. Treasury Bills. The sum of the cash held in trust and the U.S. Treasury bills total the condensed consolidated balance sheet balance of $279,384,429. During the year ended December 31, 2022, the Company withdrew $401,925 in interest income from the Trust Account for tax obligation purposes. The following table presents information about the Company’s gross holding gains and fair value of held-to-maturity securities at March 31, 2023 and December 31, 2022: Gross Amortized Holding Held-To-Maturity Level Cost Gain Fair Value December 31, 2022 U.S. Treasury Bill (Matures on 01/05/2023) 1 $ 279,339,034 $ 40,537 $ 279,379,571 March 31, 2023 Cash held by Continental Stock Transfer & Trust N/A — — $ 21,073,782 The following table presents information about the Company’s liabilities that were measured at fair value on a recurring basis as of March 31, 2023 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. Level 1 Level 2 Level 3 Liabilities: Private Placement Warrants $ — $ — $ 306,611 Public Warrants $ — $ 506,000 $ — The following table presents information about the Company’s liabilities that were measured at fair value on a recurring basis as of December 31, 2022 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. Level 1 Level 2 Level 3 Liabilities: Private Placement Warrants $ — $ — $ 250,239 Public Warrants $ — $ 419,520 $ — Measurement The Company established the initial fair value for the Warrants on February 11, 2021, the date of the consummation of the Company’s IPO using a Monte Carlo simulation model to value the Public Warrants and a modified Black-Scholes model to value the Private Placement Warrants. The Warrants were initially classified within Level 3 of the fair value hierarchy due to the use of unobservable inputs. In April 2021, the Public Warrants began trading in the open market and were reclassified to Level 1. On March 31, 2023 and December 31, 2022, the fair value was remeasured. At March 31, 2023 and December 31, 2022, the Company used a Monte Carlo simulation and modified Black-Scholes model, respectively, to value the Private Placement Warrants. The Public Warrants were previously classified as Level 3 due to the lack of an observable market price for the warrants and initially valued using the Black-Scholes Option Pricing Model. Public Warrants were transferred to a level 2 due to lack of an active market during the quarter ended September 30, 2022. As of March 31, 2023 and December 31, 2022, the Public Warrant remain as Level 2 inputs due to continued lack of an active market. The Private Placement Warrants were classified within Level 3 of the fair value hierarchy at the measurement date due to the use of unobservable inputs. The Company’s Private Placement Warrant liability is based on a valuation model utilizing management judgment and pricing inputs from observable and unobservable markets with less volume and transaction frequency than active markets. Significant deviations from these estimates and inputs could result in a material change in fair value. The key inputs into the valuation models was as follows: December 31, March 31, Input 2022 2023 Risk-free interest rate 4.75 % 4.79 % Expected term (years) 5.71 5.28 Expected volatility 9.8 % 9.1 % Dividend rate 0.0 % 0.0 % Exercise price $ 11.50 $ 11.50 Market implied likelihood of IBC 8.9 % 9.5 % The following table provides a reconciliation of changes in fair value of the beginning and ending balances for the Company’s assets and liabilities classified as level 3 for the three months ended March 31, 2023 and 2022. Fair Value at December 31, 2022 $ 250,239 Change in fair value 56,372 Fair Value at March 31, 2023 306,611 Fair Value at December 31, 2021 $ 2,692,800 Change in fair value (1,100,880) Fair Value at March 31, 2022 1,591,920 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2023 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 9. SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the condensed consolidated balance sheet date up to the date that the unaudited condensed consolidated financial statements were issued. Based upon this review, the Company did not identify any additional subsequent events that would have required adjustment or disclosure in the unaudited condensed consolidated financial statements. On April 27, 2023, the Company issued an unsecured promissory note (the “Promissory Note”) to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $1,000,000. The Promissory Note is non-interest bearing, unsecured and payable upon the effective date of the Company’s initial business combination. The Promissory Note is subject to customary events of default which could, subject to certain conditions, cause the Promissory Notes to become immediately due and payable. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Form 10-K/A for the year ended December 31, 2022 as filed with the SEC on April 10, 2023, which contains the audited financial statements and notes thereto. The interim results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 or for any future interim periods. Principles of Consolidation The accompanying consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiary where the Company has the ability to exercise control. All significant intercompany balances and transactions have been eliminated in consolidation. |
Emerging Growth Company Status | Emerging Growth Company Status 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 a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s condensed consolidated financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
Use of Estimates | Use of Estimates The preparation of unaudited condensed consolidated 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 unaudited condensed consolidated financial statements and the reported amounts of revenues 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 unaudited condensed consolidated financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. One of the more significant accounting estimates included in these unaudited condensed consolidated financial statements is the determination of the fair value of the warrant liability. Such estimates may be subject to change as more current information becomes available and 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 approximately $457,000 $68,000 |
Investments Held in Trust Account | Investments Held in Trust Account At March 31, 2023 and December 31, 2022, substantially all of the assets held in the Trust Account were held as cash held by Continental Stock Transfer & Trust Company. At December 31, 2022, the Company’s portfolio of investments held in the Trust Account was 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, or a combination thereof. The Company classifies its U.S. Treasury and equivalent securities as held-to-maturity in accordance with ASC Topic 320 “Investments - Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity treasury securities are recorded at amortized cost on the accompanying condensed balance sheets and adjusted for the amortization or accretion of premiums or discounts. |
Offering Costs associated with the Initial Public Offering | Offering Costs associated with the Initial Public Offering The Company complies with the requirements of the ASC 340-10-S99-1 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A - “Expenses of Offering”. Offering costs consist principally of professional and registration fees incurred through the balance sheet date that are related to the Public Offering. Offering costs are charged to temporary equity or the statement of operations based on the relative value of the Public Warrants to the proceeds received from the Units sold upon the completion of the IPO. Accordingly, offering costs totaling $15,630,212 (consisting of $5,520,000 of underwriting discount, $9,660,000 of deferred underwriting discount, and $450,212 of other offering costs) were recognized with $ 655,046 which was allocated to the Public Warrants and Private Warrants, included in the consolidated statement of operations and $14,975,166 included in temporary equity. |
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 limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows. |
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 Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Class A common stock subject to mandatory redemption (if any) is classified as a liability instrument and is measured at fair value. Conditionally redeemable Class A common stock (including Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, Class A common stock is classified as stockholders’ equity. The Company’s Class A common stock feature certain redemption rights that is considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, Class A common stock subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ deficit section of the Company’s condensed consolidated balance sheets. As of March 31, 2023 and December 31, 2022, the common stock subject to possible redemption reflected on the condensed consolidated balance sheets are reconciled in the following table: Class A common stock subject to possible redemption, December 31, 2022 $ 278,487,272 Plus: Waiver of Class A shares issuance costs 4,436,712 Less: Redemption (258,999,909) Accretion of carrying value to redemption value (2,931,575) Class A common stock subject to possible redemption, March 31, 2023 $ 20,992,500 See Note 6 for the current amount held in the Trust Account and the ordinary shares currently subject to redemption following the Company’s February 10, 2023 Special Meeting of shareholders to extend the Business Combination deadline date from February 11, 2023 to August 11, 2023 and the waiver of underwriting fee on January 23, 2023. |
Net Income (loss) Per Common Share | Net Income (Loss) per Common Share The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. The Company has two classes of common shares, which are referred to as Class A common stock and Class B common stock. Earnings and losses are shared pro rata between the two classes of stock. Private and public warrants to purchase 14,480,000 Class A common stock at $11.50 per share were issued on February 8, 2021. No warrants were exercised during the three months ended March 31, 2023 and 2022. The calculation of diluted net income (loss) per common share does not consider the effect of the warrants issued in connection with the (i) IPO, (ii) exercise of over-allotment, and (iii) Private Placement since the exercise of the warrants are contingent upon the occurrence of future events. As of March 31, 2023 and 2022, the Company did not have any dilutive securities or other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company. As a result, diluted net income (loss) per common share is the same as basic net income (loss) per common share for the periods. Accretion associated with the redeemable Class A common stock is excluded from earnings per share as the redemption value approximates fair value. Below is a reconciliation of the net income (loss) per share of common stock: For the Three Months Ended For the Three Months Ended March 31, 2023 March 31, 2022 Class A Class B Class A Class B Basic and diluted net (loss) income per common share Numerator: Allocation of net (loss) income $ (254,441) $ (134,074) $ 2,218,714 $ 554,679 Denominator Weighted-average shares outstanding 13,094,621 6,900,000 27,600,000 6,900,000 Basic and diluted net (loss) income per common share $ (0.02) $ (0.02) $ 0.08 $ 0.08 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the condensed consolidated balance sheets, primarily due to its short-term nature, other than the derivative warrant liability. |
Derivative Financial Instruments | Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the condensed consolidated statements of operations. Derivative assets and liabilities are classified in the consolidated balance sheets as current or non-current based on whether or not net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The Company has determined the warrants are a derivative instrument. |
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 consist of: ● 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. |
Income Taxes | Income Taxes The Company accounts for income taxes under ASC 740, “Income Taxes.” ASC 740, requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the unaudited condensed consolidated financial statements and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of March 31, 2023 and December 31, 2022, the Company’s deferred tax asset had a full valuation allowance recorded against it. The Company’s tax rate was 2,510.10% and 0.00% for the three months ended March 31, 2023 and 2022. The effective tax rate differs from the statutory tax rate of 21% for the three months ended March 31, 2023 and 2022, primarily due to changes in the valuation allowance on the deferred tax assets. ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim period, disclosure and transition. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of March 31, 2023 and December 31, 2022. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income taxation by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. |
Risks and Uncertainties | 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 condensed consolidated financial statements. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. As a result of this action, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. Further, the impact of this action and related sanctions on the world economy are not determinable as of the date of these condensed consolidated financial statements. The specific impact on the Company’s financial condition, results of operations, and cash flows is also not determinable as of the date of these condensed consolidated financial statements. On January 5, 2023, in connection with the Business Combination Proposal, a purposed stockholder of the Company filed a complaint in the United States District Court for the Southern District of New York, against the Company and its board of directors, alleging that the registration statement on Form S-4 filed on December 27, 2022 with the SEC omitted material information related to the Business Combination. Since the filing of the complaint, several purported stockholder of the Company have also sent demand letters to the Company’s counsel, similarly alleging that the registration statement filed by the Company on December 27, 2022 with the SEC omitted material information related to the Business Combination and demanding that the Company, its board of directors and/or AEON make supplemental corrective disclosures addressing the alleged deficiencies. Inflation Reduction Act of 2022 On August 16, 2022, the Inflation Reduction Act of 2022 (the “IR Act”) was signed into federal law. The IR Act provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases of stock by publicly traded U.S. domestic corporations and certain U.S. domestic subsidiaries of publicly traded foreign corporations occurring on or after January 1, 2023. The excise tax is imposed on the repurchasing corporation itself, not its stockholder from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of the Treasury (the “Treasury”) has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. On December 27, 2022, the Treasury published Notice 2023-2, which provided clarification on some aspects of the application of the excise tax. The notice generally provides that if a publicly traded U.S. corporation completely liquidates and dissolves, distributions in such complete liquidation and other distributions by such corporation in the same taxable year in which the final distribution in complete liquidation and dissolution is made are not subject to the excise tax. Although such notice clarifies certain aspects of the excise tax, the interpretation and operation of aspects of the excise tax (including its application and operation with respect to SPACs) remain unclear and such interim operating rules are subject to change. Because the application of this excise tax is not entirely clear, any redemption or other repurchase effected by the Company in connection with a business combination, extension vote or otherwise, may be subject to this excise tax. Because any such excise tax would be payable by the Company and not by the redeeming holder, it could cause a reduction in the value of Class A common stock, cash available with which to effectuate a business combination or cash available for distribution in a subsequent liquidation. Whether and to what extent the Company would be subject to the excise tax in connection with a business combination will depend on a number of factors, including (i) the structure of the business combination, (ii) the fair market value of the redemptions and repurchases in connection with the business combination, (iii) the nature and amount of any “PIPE” or other equity issuances in connection with the business combination (or any other equity issuances within the same taxable year of the business combination) and (iv) the content of any subsequent regulations, clarifications, and other guidance issued by the Treasury. Further, the application of the excise tax in respect of distributions pursuant to a liquidation of a publicly traded U.S. corporation is uncertain and has not been addressed by the Treasury in regulations, and it is possible that the proceeds held in the trust account could be used to pay any excise tax owed the Company in the event it is unable to complete a business combination in the required time and redeem 100% of the remaining Class A common stock in accordance with the amended and restated certificate of incorporation, in which case the amount that would otherwise be received by the public stockholders in connection with the Company’s liquidation would be reduced. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU 2016-13 also requires additional disclosures regarding significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. The Company adopted the provisions of this guidance on January 1, 2023. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. Besides the above, the Company’s 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 condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of common stock subject to possible redemption | Class A common stock subject to possible redemption, December 31, 2022 $ 278,487,272 Plus: Waiver of Class A shares issuance costs 4,436,712 Less: Redemption (258,999,909) Accretion of carrying value to redemption value (2,931,575) Class A common stock subject to possible redemption, March 31, 2023 $ 20,992,500 |
Schedule of reconciliation of the net income (loss) per share of common stock | For the Three Months Ended For the Three Months Ended March 31, 2023 March 31, 2022 Class A Class B Class A Class B Basic and diluted net (loss) income per common share Numerator: Allocation of net (loss) income $ (254,441) $ (134,074) $ 2,218,714 $ 554,679 Denominator Weighted-average shares outstanding 13,094,621 6,900,000 27,600,000 6,900,000 Basic and diluted net (loss) income per common share $ (0.02) $ (0.02) $ 0.08 $ 0.08 |
RECURRING FAIR VALUE MEASUREM_2
RECURRING FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
RECURRING FAIR VALUE MEASUREMENTS | |
Schedule of Company's gross holding gains and fair value of held-to-maturity securities | Gross Amortized Holding Held-To-Maturity Level Cost Gain Fair Value December 31, 2022 U.S. Treasury Bill (Matures on 01/05/2023) 1 $ 279,339,034 $ 40,537 $ 279,379,571 March 31, 2023 Cash held by Continental Stock Transfer & Trust N/A — — $ 21,073,782 |
Schedule of Company's liabilities that were measured at fair value on a recurring basis | Level 1 Level 2 Level 3 Liabilities: Private Placement Warrants $ — $ — $ 306,611 Public Warrants $ — $ 506,000 $ — Level 1 Level 2 Level 3 Liabilities: Private Placement Warrants $ — $ — $ 250,239 Public Warrants $ — $ 419,520 $ — |
Schedule of key inputs | December 31, March 31, Input 2022 2023 Risk-free interest rate 4.75 % 4.79 % Expected term (years) 5.71 5.28 Expected volatility 9.8 % 9.1 % Dividend rate 0.0 % 0.0 % Exercise price $ 11.50 $ 11.50 Market implied likelihood of IBC 8.9 % 9.5 % |
Schedule of reconciliation of changes in fair value of the assets and liabilities classified as level 3 | Fair Value at December 31, 2022 $ 250,239 Change in fair value 56,372 Fair Value at March 31, 2023 306,611 Fair Value at December 31, 2021 $ 2,692,800 Change in fair value (1,100,880) Fair Value at March 31, 2022 1,591,920 |
Organization and Business Ope_2
Organization and Business Operation (Details) | 3 Months Ended | ||||||
Feb. 10, 2023 USD ($) $ / shares shares | Nov. 16, 2022 USD ($) | Feb. 11, 2021 USD ($) $ / shares shares | Mar. 31, 2023 USD ($) item $ / shares shares | Jan. 31, 2023 USD ($) | Jan. 23, 2023 USD ($) | Feb. 08, 2021 $ / shares shares | |
Organization and Business Operation | |||||||
Condition for future business combination number of businesses minimum | item | 1 | ||||||
Deferred underwriting commission | $ 3,767,400 | $ 4,636,800 | |||||
Deferred underwriting fee payable derecognized | 3,767,400 | $ 4,636,800 | |||||
Balance of the deferred underwriting fee payable | $ 1,255,800 | ||||||
Purchase price, per unit | $ / shares | $ 10 | ||||||
Offering Costs | $ 15,630,212 | ||||||
Underwriting discount | 5,520,000 | ||||||
Deferred underwriting discount | 9,660,000 | ||||||
Other offering costs | 450,212 | ||||||
Transaction cost included in operation statement | 655,046 | ||||||
Transaction costs included in equity statement | $ 14,975,166 | ||||||
Investments maximum maturity term | 185 days | ||||||
Threshold period from the closing of the proposed public offering to consummate an initial business combination after extension | 24 months | 24 months | |||||
Obligation to redeem public shares if entity does not complete a business combination (as a percent) | 100% | 100% | |||||
Maximum allowed dissolution expenses | $ 100,000 | ||||||
Cash operating bank account | 457,085 | ||||||
Working capital deficit | 5,249,539 | ||||||
Assets trust account | 21,073,782 | ||||||
Class A Common stock | |||||||
Organization and Business Operation | |||||||
Deferred underwriting commission | 3,604,829 | ||||||
Deferred underwriting fee payable derecognized | 4,436,713 | 4,436,713 | |||||
Sale of private placement warrants (in share) | shares | 14,480,000 | ||||||
Exercise price of warrants | $ / shares | $ 11.50 | ||||||
Number of shares issued | shares | 25,597,728 | ||||||
Redemption price | $ / shares | $ 10.11 | ||||||
Aggregate redemption amount | $ 258,999,909 | ||||||
Aggregate redemption shares | shares | 2,002,272 | ||||||
Redemption payments | $ 20,259,152 | ||||||
Warrants | |||||||
Organization and Business Operation | |||||||
Deferred underwriting fee payable derecognized | 200,087 | $ 200,087 | |||||
Number of shares issuable per warrant | shares | 1 | ||||||
Exercise price of warrants | $ / shares | $ 11.50 | ||||||
Warrants | Class A Common stock | |||||||
Organization and Business Operation | |||||||
Deferred underwriting fee payable derecognized | $ 162,571 | ||||||
Initial Public Offering | |||||||
Organization and Business Operation | |||||||
Number of units sold | shares | 27,600,000 | ||||||
Purchase price, per unit | $ / shares | $ 10 | $ 10.10 | |||||
Gross proceeds from IPO | $ 276,000,000 | ||||||
Underwriting discount | 5,520,000 | ||||||
Deferred underwriting discount | 9,660,000 | ||||||
Payments for investment of cash in trust account | $ 276,000,000 | ||||||
Condition for future business combination threshold net tangible assets | $ 5,000,001 | ||||||
Initial Public Offering | Private Placement Warrants | |||||||
Organization and Business Operation | |||||||
Price of warrant | $ / shares | $ 1.50 | ||||||
Private Placement | Private Placement Warrants | |||||||
Organization and Business Operation | |||||||
Sale of private placement warrants (in share) | shares | 5,213,333 | ||||||
Number of shares issuable per warrant | shares | 1 | ||||||
Exercise price of warrants | $ / shares | $ 11.50 | ||||||
Gross proceeds from issuance of warrants | $ 7,820,000 | ||||||
Gross proceeds from issuance of warrants | $ 7,820,000 | ||||||
Over-allotment option | |||||||
Organization and Business Operation | |||||||
Number of units sold | shares | 3,600,000 | ||||||
Purchase price, per unit | $ / shares | $ 10 | ||||||
Over-allotment option | Private Placement Warrants | |||||||
Organization and Business Operation | |||||||
Price of warrant | $ / shares | $ 1.50 | ||||||
Sponsor | |||||||
Organization and Business Operation | |||||||
Consideration received | $ 25,000 | ||||||
Promissory note - related party | $ 73,295 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | ||||||
Feb. 10, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 16, 2022 | Feb. 11, 2021 | Feb. 08, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Maturity term of U.S government securities | 185 days | ||||||
Offering costs | $ 15,630,212 | ||||||
Underwriting discount | 5,520,000 | ||||||
Deferred underwriting discount | 9,660,000 | ||||||
Other offering costs | $ 450,212 | ||||||
Number of warrants exercised | 0 | 0 | |||||
Effective tax rate (as a percent) | 2,510.10% | 0% | |||||
Statutory tax rate (as a percent) | 21% | 21% | |||||
Unrecognized tax benefits | $ 0 | $ 0 | |||||
Unrecognized accrued for interest and penalties | 0 | $ 0 | |||||
Aggregated redemption value | $ (258,999,909) | ||||||
Class A Common stock | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Number of warrants to purchase shares issued | 14,480,000 | ||||||
Exercise price of warrants | $ 11.50 | ||||||
Aggregate redemption shares | 2,002,272 | ||||||
Percentage of redemption of business combination | 100% | ||||||
Initial Public Offering | |||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Underwriting discount | $ 5,520,000 | ||||||
Deferred underwriting discount | $ 9,660,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of common stock to possible redemption (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Class A common stock subject to possible redemption | $ 20,992,500 | $ 278,487,272 |
Waiver of Class A shares issuance costs | 4,436,712 | |
Redemption | (258,999,909) | |
Accretion of carrying value to redemption value | $ (2,931,575) |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of the net income (Loss) per share of common stock (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Class A Common stock | ||
Numerator: | ||
Allocation of net income | $ (254,441) | $ 2,218,714 |
Denominator | ||
Weighted-average shares outstanding, Basic | 13,094,621 | 27,600,000 |
Weighted-average shares outstanding, Diluted | 13,094,621 | 27,600,000 |
Basic net (loss) income per common share | $ (0.02) | $ 0.08 |
Diluted net (loss) income per common share | $ (0.02) | $ 0.08 |
Class B common stock | ||
Numerator: | ||
Allocation of net income | $ (134,074) | $ 554,679 |
Denominator | ||
Weighted-average shares outstanding, Basic | 6,900,000 | 6,900,000 |
Weighted-average shares outstanding, Diluted | 6,900,000 | 6,900,000 |
Basic net (loss) income per common share | $ (0.02) | $ 0.08 |
Diluted net (loss) income per common share | $ (0.02) | $ 0.08 |
INITIAL PUBLIC OFFERING (Detail
INITIAL PUBLIC OFFERING (Details) - USD ($) | Feb. 11, 2021 | Mar. 31, 2023 | Feb. 08, 2021 |
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | |||
Purchase price, per unit | $ 10 | ||
Underwriting discount | $ 5,520,000 | ||
Deferred underwriting discount | $ 9,660,000 | ||
Class A Common stock | |||
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | |||
Exercise price of warrants | $ 11.50 | ||
Initial Public Offering | |||
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | |||
Number of units sold | 27,600,000 | ||
Purchase price, per unit | $ 10 | $ 10.10 | |
Underwriting discount | $ 5,520,000 | ||
Deferred underwriting discount | $ 9,660,000 | ||
Initial Public Offering | Public Warrants | |||
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | |||
Purchase price, per unit | $ 10 | ||
Number of warrants in a unit | 0.33 | ||
Exercise price of warrants | $ 11.50 | ||
Warrant exercise period condition one | 30 days | ||
Warrant exercise period condition two | 12 months | ||
Public Warrants expiration term | 5 years | ||
Initial Public Offering | Public Warrants | Class A Common stock | |||
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | |||
Number of shares in a unit | 1 | ||
Number of shares issuable per warrant | 1 | ||
Over-allotment option | |||
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | |||
Number of units sold | 3,600,000 | ||
Purchase price, per unit | $ 10 |
INITIAL PUBLIC OFFERING - Warra
INITIAL PUBLIC OFFERING - Warrants (Details) | 3 Months Ended | |
Mar. 31, 2023 D $ / shares shares | Feb. 08, 2021 $ / shares | |
Class A Common stock | ||
Warrants | ||
Exercise price of warrants | $ 11.50 | |
Warrants | ||
Warrants | ||
Number of shares issuable per warrant | shares | 1 | |
Exercise price of warrants | $ 11.50 | |
Warrants | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 | ||
Warrants | ||
Adjustment of exercise price of warrants based on market value and newly issued price (as a percent) | 180% | |
Maximum period after business combination in which to file registration statement | 15 days | |
Period of time within which registration statement is expected to become effective | 60 days | |
Redemption price per public warrant (in dollars per share) | $ 0.01 | |
Threshold number of business days before sending notice of redemption to warrant holders | 30 days | |
Redemption period | 30 days | |
Share price trigger used to measure dilution of warrant | $ 18 | |
Trading period after business combination used to measure dilution of warrant | 20 days | |
Minimum threshold written notice period for redemption of public warrants | 30 days | |
Threshold trading days for redemption of public warrants | 3 days | |
Private Placement Warrants | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 | ||
Warrants | ||
Share price trigger used to measure dilution of warrant | $ 18 | |
Public Warrants | Class A Common stock | ||
Warrants | ||
Share price | $ 9.20 | |
Percentage of gross proceeds on total equity proceeds | 60% | |
Threshold consecutive trading days for redemption of public warrants | D | 20 | |
Public Warrants | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 | ||
Warrants | ||
Share price | $ 9.20 | |
Adjustment one of redemption price of stock based on market value and newly issued price (as a percent) | 115% | |
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 | |
Warrant exercise period condition one | 12 months | |
Warrant exercise period condition two | 30 days | |
Public Warrants expiration term | 5 years |
PRIVATE PLACEMENT (Details)
PRIVATE PLACEMENT (Details) - USD ($) | 3 Months Ended | |
Feb. 11, 2021 | Mar. 31, 2023 | |
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | ||
Advance notice prior to the applicable deadline affiliates or designees must deposit into the Trust Account | 30 days | |
Obligation to redeem public shares if entity does not complete a business combination (as a percent) | 100% | 100% |
Threshold period from the closing of the proposed public offering to consummate an initial business combination | 18 months | |
Threshold period from the closing of the proposed public offering to consummate an initial business combination after extension | 24 months | 24 months |
Private Placement | Private Placement Warrants | ||
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | ||
Number of warrants to purchase shares issued | 5,213,333 | |
Aggregate purchase price | $ 7,820,000 | |
Over-allotment option | Private Placement Warrants | ||
INITIAL PUBLIC OFFERING/PRIVATE PLACEMENT | ||
Price of warrants | $ 1.50 |
RELATED PARTY TRANSACTIONS - Fo
RELATED PARTY TRANSACTIONS - Founder Shares (Details) | 3 Months Ended | ||||
Feb. 11, 2021 USD ($) | Dec. 17, 2020 USD ($) $ / shares shares | Mar. 31, 2023 D $ / shares shares | Dec. 31, 2022 $ / shares shares | Feb. 08, 2021 shares | |
RELATED PARTY TRANSACTIONS | |||||
Common stock shares issued price per share | $ / shares | $ 10 | ||||
Class B common stock | |||||
RELATED PARTY TRANSACTIONS | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | |||
Common shares, shares issued | shares | 6,900,000 | 6,900,000 | 6,900,000 | ||
Common shares, shares outstanding | shares | 6,900,000 | 6,900,000 | 6,900,000 | ||
Sponsor | |||||
RELATED PARTY TRANSACTIONS | |||||
Consideration received | $ | $ 25,000 | ||||
Founder shares | Sponsor | Class B common stock | |||||
RELATED PARTY TRANSACTIONS | |||||
Consideration received | $ | $ 25,000 | ||||
Common stock shares issued price per share | $ / shares | $ 0.004 | ||||
Number of shares issued | shares | 5,750,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | ||||
Shares subject to forfeiture | shares | 900,000 | ||||
Shares are no longer subject to forfeiture | shares | 900,000 | ||||
Restrictions on transfer period of time after business combination completion | 1 year | ||||
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) | $ / shares | $ 12 | ||||
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | D | 20 | ||||
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences | 180 days | ||||
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | D | 30 |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 28, 2022 | Feb. 08, 2021 | Jan. 13, 2021 | Dec. 17, 2020 | Dec. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2021 | |
Promissory Note with Related Party | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Maximum borrowing capacity of related party promissory note | $ 75,000 | |||||||
Additional borrowing capacity of related party promissory note | $ 50,000 | |||||||
Repayment of promissory note - related party | $ 0 | $ 0 | ||||||
Outstanding balance of related party note | $ 150,000 | $ 150,000 | 150,000 | |||||
Promissory Note with Related Party | Sponsor | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Maximum borrowing capacity of related party promissory note | $ 150,000 | |||||||
Deposit into operating account | 150,000 | |||||||
Working Capital Loans | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Price of warrant | $ 1.50 | |||||||
Working capital loans | $ 0 | $ 0 | 0 | |||||
Maximum loans convertible into warrants | 1,500,000 | |||||||
Working Capital Loans | Working Capital Warrants | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Working capital loans | $ 100,000 | |||||||
Maximum loans convertible into warrants | $ 66,667 | |||||||
Administrative Service Fee | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Expenses per month | $ 25,000 | |||||||
Expenses incurred and paid | $ 75,000 | $ 75,000 | ||||||
Administrative Service Fee | Sponsor | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Expenses per month | 10,000 | |||||||
Administrative Service Fee | CEO and CFO | ||||||||
RELATED PARTY TRANSACTIONS | ||||||||
Expenses per month | $ 15,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended | 12 Months Ended | |||||
Feb. 10, 2023 USD ($) $ / shares shares | Jan. 23, 2023 USD ($) | Nov. 16, 2022 USD ($) | Mar. 31, 2023 USD ($) item $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Jan. 31, 2023 USD ($) | Jan. 11, 2023 USD ($) | |
COMMITMENTS AND CONTINGENCIES | |||||||
Deferred fee per unit | $ / shares | $ 0.35 | ||||||
Deferred underwriting discount | $ 9,660,000 | ||||||
Deferred underwriting commission | $ 4,636,800 | $ 3,767,400 | |||||
Deferred underwriting fee payable derecognized | 3,767,400 | 4,636,800 | |||||
Balance of the deferred underwriting fee payable | $ 1,255,800 | ||||||
Reduction in deferred underwriting fee payable, Waiver | $ 4,636,800 | ||||||
Deferred underwriting fee payable | 4,636,800 | $ 1,255,800 | $ 5,892,600 | ||||
Maximum number of demands for registration of securities | item | 3 | ||||||
Excise tax imposed on common stock redemptions | $ (424,059) | ||||||
Excise tax liability | $ 424,059 | ||||||
Percentage of excise tax liability | 1% | ||||||
Warrants | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||
Deferred underwriting fee payable derecognized | 200,087 | $ 200,087 | |||||
AEON | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||
Agreed amount with certain investors | $ 20,000,000 | ||||||
Class A Common stock | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||
Deferred underwriting commission | 3,604,829 | ||||||
Deferred underwriting fee payable derecognized | 4,436,713 | $ 4,436,713 | |||||
Common stock par value | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||
Number of shares issued | shares | 25,597,728 | ||||||
Redemption price | $ / shares | $ 10.11 | ||||||
Aggregate redemption amount | $ 258,999,909 | ||||||
Aggregate redemption shares | shares | 2,002,272 | ||||||
Redemption of common stock | shares | 25,597,728 | ||||||
Excise tax imposed on common stock redemptions | $ 258,999,909 | ||||||
Class A Common stock | Warrants | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||
Deferred underwriting fee payable derecognized | $ 162,571 | ||||||
Business Combination Agreement | Class A Common stock | AEON | |||||||
COMMITMENTS AND CONTINGENCIES | |||||||
Common stock par value | $ / shares | $ 0.0001 | ||||||
Equity value of the company to be acquired | $ 165,000,000 | ||||||
Shares held back to satisfy the conditions | shares | 809,000 |
STOCKHOLDERS' DEFICIT- Preferre
STOCKHOLDERS' DEFICIT- Preferred Stock (Details) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
STOCKHOLDERS' DEFICIT | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, par value, (per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
STOCKHOLDERS' DEFICIT - Common
STOCKHOLDERS' DEFICIT - Common Stock (Details) | 3 Months Ended | |||
Mar. 31, 2023 Vote $ / shares shares | Feb. 10, 2023 $ / shares | Dec. 31, 2022 $ / shares shares | Feb. 08, 2021 shares | |
STOCKHOLDERS' DEFICIT | ||||
Shares issued upon converted basis | 1 | |||
Class A Common stock | ||||
STOCKHOLDERS' DEFICIT | ||||
Common stock, shares authorized | 280,000,000 | 280,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Common stock, shares issued | 0 | 0 | ||
Common stock, shares outstanding | 0 | 0 | ||
Class A common stock subject to possible redemption, outstanding (in shares) | 25,597,728 | |||
Class A common stock subject to redemption | ||||
STOCKHOLDERS' DEFICIT | ||||
Class A common stock subject to possible redemption, outstanding (in shares) | 2,002,272 | 27,600,000 | ||
Class A common stock not subject to redemption | ||||
STOCKHOLDERS' DEFICIT | ||||
Common stock, shares issued | 0 | 0 | ||
Class B common stock | ||||
STOCKHOLDERS' DEFICIT | ||||
Common stock, shares authorized | 20,000,000 | 20,000,000 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.0001 | $ 0.0001 | ||
Common stock, votes per share | Vote | 1 | |||
Common stock, shares issued | 6,900,000 | 6,900,000 | 6,900,000 | |
Common stock, shares outstanding | 6,900,000 | 6,900,000 | 6,900,000 | |
Ratio to be applied to the stock in the conversion | 20% |
RECURRING FAIR VALUE MEASUREM_3
RECURRING FAIR VALUE MEASUREMENTS - Fair value of held-to-maturity securities (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
U.S. Treasury Bill | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost | ||
Amortized Cost | $ 279,339,034 | |
Gain Holding Gain | 40,537 | |
Fair Value | $ 279,379,571 | |
Cash held by Continental Stock Transfer & Trust | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost | ||
Fair Value | $ 21,073,782 |
RECURRING FAIR VALUE MEASUREM_4
RECURRING FAIR VALUE MEASUREMENTS - Assets and Liabilities Measured at Fair Value (Details) - USD ($) | Mar. 31, 2023 | Dec. 31, 2022 |
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant liabilities | $ 812,611 | $ 669,759 |
Level 2 | Public Warrants | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant liabilities | 506,000 | 419,520 |
Level 3 | Private Placement Warrants | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant liabilities | $ 306,611 | $ 250,239 |
RECURRING FAIR VALUE MEASUREM_5
RECURRING FAIR VALUE MEASUREMENTS - Level 3 Fair Value Measurements Inputs (Details) | Mar. 31, 2023 item Y $ / shares | Dec. 31, 2022 Y item $ / shares |
Risk-free interest rate | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant and rights outstanding, measurement input | 0.0479 | 0.0475 |
Expected term (years) | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant and rights outstanding, measurement input | Y | 5.28 | 5.71 |
Expected volatility | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant and rights outstanding, measurement input | 0.091 | 0.098 |
Dividend rate | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant and rights outstanding, measurement input | item | 0 | 0 |
Exercise price | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant and rights outstanding, measurement input | $ / shares | 11.50 | 11.50 |
Market implied likelihood of Initial Business Combination | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant and rights outstanding, measurement input | 0.095 | 0.089 |
RECURRING FAIR VALUE MEASUREM_6
RECURRING FAIR VALUE MEASUREMENTS - Change in the Fair Value of the assets and liabilities (Details) - Level 3 - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation | ||
Fair value at, Beginning balance | $ 250,239 | $ 2,692,800 |
Change in fair value | 56,372 | (1,100,880) |
Fair value at, Ending balance | $ 306,611 | $ 1,591,920 |
RECURRING FAIR VALUE MEASUREM_7
RECURRING FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
RECURRING FAIR VALUE MEASUREMENTS | ||
Warrant liabilities | $ 812,611 | $ 669,759 |
Cash and Investments held in Trust Account | 21,073,782 | 279,384,429 |
Withdraw from Trust Account | 1,253,107 | |
Interest income from Trust Account | 401,925 | |
U.S. Treasury Bill | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Cash and Investments held in Trust Account | 279,379,571 | |
Cash | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Cash and Investments held in Trust Account | $ 4,858 | |
Cash Held By Continental Stock Transfer & Trust [Member] | ||
RECURRING FAIR VALUE MEASUREMENTS | ||
Cash and Investments held in Trust Account | $ 21,073,782 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Apr. 27, 2023 | Nov. 28, 2022 | Dec. 17, 2020 | Jan. 11, 2023 |
Promissory Note with Related Party | ||||
SUBSEQUENT EVENTS | ||||
Maximum borrowing capacity of related party promissory note | $ 75,000 | |||
Promissory Note with Related Party | Sponsor | ||||
SUBSEQUENT EVENTS | ||||
Maximum borrowing capacity of related party promissory note | $ 150,000 | |||
AEON | ||||
SUBSEQUENT EVENTS | ||||
Agreed amount with certain investors | $ 20,000,000 | |||
Subsequent event | Promissory Note with Related Party | Sponsor | ||||
SUBSEQUENT EVENTS | ||||
Maximum borrowing capacity of related party promissory note | $ 1,000,000 |