Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | May 21, 2021 | |
Document Information Line Items | ||
Entity Registrant Name | B. Riley Principal 150 Merger Corp. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 17,250,000 | |
Amendment Flag | false | |
Entity Central Index Key | 0001839360 | |
Entity Current Reporting Status | No | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | true | |
Entity Ex Transition Period | false | |
Entity File Number | 001-40083 | |
Entity Incorporation, State or Country Code | NY | |
Entity Interactive Data Current | Yes |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 353,077 | $ 25,000 |
Deferred offering costs | 80,000 | |
Prepaid expenses | 896,632 | |
Total current assets | 1,249,709 | 105,000 |
Cash held in Trust Account | 172,504,075 | |
Total assets | 173,753,784 | 105,000 |
Current liabilities: | ||
Accounts payable and accrued expenses | 92,450 | 80,450 |
Due to related party | 998 | |
Total current liabilities | 92,450 | 81,448 |
Warrant liability | 5,573,133 | |
Total liabilities | 5,665,583 | 81,448 |
Commitments | ||
Class A Common stock subject to possible redemption; 16,308,820 shares (at redemption value of $10.00 per share) | 163,088,200 | |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding | ||
Additional paid-in capital | 5,588,472 | 24,569 |
Accumulated deficit | (589,048) | (1,448) |
Total stockholders’ equity | 5,000,001 | 23,552 |
Total liabilities and stockholders’ equity | 173,753,784 | 105,000 |
Class A Common stock | ||
Stockholders’ equity: | ||
Common stock, value | 146 | |
Total stockholders’ equity | 146 | |
Class B Common stock | ||
Stockholders’ equity: | ||
Common stock, value | 431 | 431 |
Total stockholders’ equity | $ 431 | $ 431 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parentheticals) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Common stock subject to possible redemption, shares | 16,308,820 | |
Redemption value, per share (in Dollars per share) | $ 10 | |
Preferred stock par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Class A Common stock | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 1,461,180 | 1,461,180 |
Common stock, shares outstanding | 1,461,180 | 1,461,180 |
Class B Common stock | ||
Common stock, par value (in Dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 4,312,500 | 4,312,500 |
Common stock, shares outstanding | 4,312,500 | 4,312,500 |
Condensed Statement of Operatio
Condensed Statement of Operations (Unaudited) | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Income Statement [Abstract] | |
Operating costs | $ 180,104 |
Loss from operations | (180,104) |
Other income (expense): | |
Interest income | 4,075 |
Warrant issue costs | (115,404) |
Change in fair value of warrants | (296,167) |
Other expense | (407,496) |
Net loss | $ (587,600) |
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption (in Shares) | shares | 6,523,528 |
Basic and diluted loss per share (in Dollars per share) | $ / shares | $ 0 |
Weighted average basic and diluted shares outstanding (in Shares) | shares | 4,896,972 |
Basic and diluted loss per non-redeemable share (in Dollars per share) | $ / shares | $ (0.12) |
Condensed Statements of Changes
Condensed Statements of Changes in Stockholder's Equity (Deficit) (Unaudited) - 3 months ended Mar. 31, 2021 - USD ($) | Class A Common Stock | Class B Common Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at Dec. 31, 2020 | $ 431 | $ 24,569 | $ (1,448) | $ 23,552 | |
Balance (in Shares) at Dec. 31, 2020 | 4,312,500 | ||||
Sale of 17,250,000 Units on February 23, 2021 through IPO | $ 1,725 | 167,380,775 | 167,382,500 | ||
Sale of 17,250,000 Units on February 23, 2021 through IPO (in Shares) | 17,250,000 | ||||
Sale of 520,000 Private Placement Units on February 23, 2021 | $ 52 | 5,040,482 | 5,040,534 | ||
Sale of 520,000 Private Placement Units on February 23, 2021 (in Shares) | 520,000 | ||||
Underwriting fee | (3,450,000) | (3,450,000) | |||
Offering costs charged to stockholders equity | (436,189) | (436,189) | |||
Reclassification of offering costs related to warrants | 115,404 | 115,404 | |||
Net loss for the three months ended March 31, 2021 | (587,600) | (587,600) | |||
Change in Class A common stock subject to possible redemption | $ (1,631) | (163,086,569) | (163,088,200) | ||
Change in Class A common stock subject to possible redemption (in Shares) | (16,308,820) | ||||
Balance at Mar. 31, 2021 | $ 146 | $ 431 | $ 5,588,472 | $ (589,048) | $ 5,000,001 |
Balance (in Shares) at Mar. 31, 2021 | 1,461,180 | 4,312,500 |
Condensed Statements of Chang_2
Condensed Statements of Changes in Stockholder's Equity (Deficit) (Unaudited) (Parentheticals) | 3 Months Ended |
Mar. 31, 2021shares | |
IPO | |
Sale of units | 17,250,000 |
Private Placement | |
Sale of units | 520,000 |
Condensed Statement of Cash Flo
Condensed Statement of Cash Flows (Unaudited) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Cash flows from operating activities: | |
Net loss | $ (587,600) |
Interest earned on investments held in Trust Account | (4,075) |
Adjustments to reconcile net loss to net cash used in operating activities: | |
Warrant issue costs | 115,404 |
Unrealized loss on change in fair value of warrants | 296,167 |
Decrease in deferred offering costs | 80,000 |
Increase in prepaid expenses | (896,632) |
Increase in accounts payable and accrued expenses | 12,000 |
Decrease in due to related party | (998) |
Net cash used in operating activities | (985,734) |
Cash flows from investing activities: | |
Proceeds deposited in Trust Account | (172,500,000) |
Net cash used in investing activities | (172,500,000) |
Cash flows from financing activities: | |
Proceeds from note payable – related party | 40,000 |
Repayment of note payable – related party | (40,000) |
Proceeds from issuance of Class A common stock | 172,500,000 |
Proceeds from issuance of private placement units | 5,200,000 |
Payment of underwriting discounts | (3,450,000) |
Payment of offering expenses | (436,189) |
Net cash provided by financing activities | 173,813,811 |
Increase in cash | 328,077 |
Cash, beginning of year | 25,000 |
Cash, end of period | 353,077 |
Supplemental disclosures: | |
Interest paid | |
Taxes paid | |
Supplemental disclosure of noncash investing and financial activities: | |
Initial value of Class A ordinary shares subject to possible redemption | 163,556,590 |
Change in value of Class A ordinary shares subject to possible redemption | (468,390) |
Initial classification of warrant liability | $ 5,276,966 |
Organization and Nature of Busi
Organization and Nature of Business Operations | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND NATURE OF BUSINESS OPERATIONS | NOTE 1 — ORGANIZATION AND NATURE OF BUSINESS OPERATIONS Organization and General B. Riley Principal 150 Merger Corp. (the “Company”), a blank check corporation, was incorporated as a Delaware corporation on June 19, 2020. The Company is an emerging growth company, as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). 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 (a “Initial Business Combination”). As of March 31, 2021, the Company had not commenced any operations. All activity of the Company includes the activity of the Company from inception and activity related to the initial public offering (the “Public Offering”) described below and evaluating prospective acquisition targets. The Company will not generate any operating revenues until after completion of its Initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Public Offering described below. The Company has selected December 31st as its fiscal year end. Public Offering The Company completed the sale of 17,250,000 units (the “Units”), including the issuance of 2,250,000 Units as a result of the underwriters’ exercise of their over-allotment option in full, at an offering price of $10.00 per Unit in the Public Offering on February 23, 2021. B. Riley Principal 150 Sponsor Co., LLC (the “Sponsor”), a Delaware limited liability company and a wholly-owned indirect subsidiary of B. Riley Financial, Inc. (“B. Riley Financial”), purchased an aggregate of 520,000 Units at a price of $10.00 per Unit (the “Private Placement Units”) in a private placement that closed on February 23, 2021 simultaneously with the Public Offering. The sale of the 17,250,000 Units in the Public Offering (the “Public Units”) generated gross proceeds of $172,500,000, less underwriting commissions of $3,450,000 (2% of the gross proceeds of the Public Offering) and other offering costs of $436,189. The Private Placement Units generated $5,200,000 of gross proceeds. Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value (each a “public share”), and one-third of one redeemable warrant, with each whole warrant exercisable for one share of Class A common stock (each, a “Warrant” and, with respect to the warrants underlying the Private Placement Units, the “Private Placement Warrants” and, collectively, the “Warrants”). One Warrant entitles the holder thereof to purchase one whole share of Class A common stock at a price of $11.50 per share. Sponsor and Note Payable - Related Party The Company has a note payable to Sponsor which allows the Company to borrow up to $300,000 without interest to be used for a portion of the expenses of this offering. The notes payable is payable on the earlier of: (i) December 31, 2021 or (ii) the date on which the Company consummates an initial public offering of its securities. As of February 23, 2021, the borrowings outstanding on the note payable due to related party was $40,000. On March 1, 2021 such amount was repaid using proceeds from the Public Offering and the Private Placement. The Trust Account Upon completion of the Public Offering, $172,500,000 of proceeds were held in the Company’s trust account at J.P. Morgan Chase Bank, N.A., with Continental Stock Transfer & Trust Company acting as trustee (the “Trust Account”) and will be invested in permitted United States “government securities” within the meaning of Section 2(a)(16) of the Investment Company Act of 1940, as amended, which we refer to as the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act that invest only in direct U.S. government treasury obligations. Unless and until the Company completes the Initial Business Combination, it may pay its expenses only from the net proceeds of the Public Offering and the Private Placement held outside the Trust Account, which was $353,077 on March 31, 2021. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, the proceeds from the Public Offering may not be released from the Trust Account until the earliest of: (i) the completion of the Initial Business Combination; (ii) the redemption of any public shares properly submitted in connection with a stockholder vote to amend the Company’s 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 it does not complete the Initial Business Combination within 24 months from the closing of the Public Offering; or (iii) the redemption of all of the Company’s public shares if the Company is unable to complete the Initial Business Combination within 24 months from the closing of the Public Offering (at which such time up to $100,000 of interest shall be available to the Company to pay dissolution expenses), subject to applicable law. 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 holders of the Company’s public shares (the “public stockholders”). Initial Business Combination The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Public Offering, although substantially all of the net proceeds of the Public Offering and the Private Placement are intended to be generally applied toward consummating an Initial Business Combination. The Initial Business Combination must occur with one or more businesses or assets with a fair market value equal to at least 80% of the assets held in the Trust Account. There is no assurance that the Company will be able to successfully effect an Initial Business Combination. The Company will provide its public stockholders with the opportunity to redeem all or a portion of their shares upon the completion of the Initial Business Combination, either (i) in connection with a stockholder meeting called to approve the business combination or (ii) by means of a tender offer. However, in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than $5,000,001. If the Company holds a stockholder meeting to approve the Initial Business Combination, a public stockholder will have the right to redeem its public shares for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Initial Business Combination, including interest but less taxes payable. As a result, such shares of Class A common stock have been recorded at redemption amount and classified as temporary equity upon the completion of the Public Offering, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, “Distinguishing Liabilities from Equity.” Pursuant to the Company’s amended and restated certificate of incorporation, if the Company is unable to complete the Initial Business Combination within 24 months from the closing of the Public Offering, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than ten business days thereafter redeem 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 franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. The Sponsor and the Company’s officers and directors have entered into a letter agreement with the Company, pursuant to which they have agreed to waive their rights to liquidating distributions from the Trust Account with respect to any Founder Shares and Private Placement Shares (as defined below) held by them if the Company fails to complete the Initial Business Combination within 24 months of the closing of the Public Offering. However, if the Sponsor or any of the Company’s directors or officers acquires shares of Class A common stock in or after the Public Offering, they will be entitled to liquidating distributions from the Trust Account with respect to such public shares if the Company fails to complete the Initial Business Combination within the prescribed time period. In the event of a liquidation, dissolution or winding up of the Company after an Initial Business Combination, the Company’s remaining stockholders are entitled to share ratably in all assets remaining available for distribution to them after payment of liabilities and after provision is made for each class of stock, if any, having preference over the common stock. The Company’s stockholders have no preemptive or other subscription rights. The Company will provide its stockholders with the opportunity to redeem their public shares for cash equal to their pro rata share of the aggregate amount then on deposit in the Trust Account, under the circumstances, and, subject to the limitations, described herein. |
Restatement of Previously Issue
Restatement of Previously Issued Financial Statements | 3 Months Ended |
Mar. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2 — RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS On April 12, 2021, the Staff of the Securities and Exchange Commission together issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Statement”). Specifically, the SEC Statement focused on certain settlement terms and provisions related to certain tender offers following a Business Combination, which terms are similar to those contained in the Company’s warrant agreement issued in connection with the Public Offering described above. As a result of the SEC Statement, the Company reevaluated the accounting treatment of (i) the 5,750,000 Public Warrants, and (ii) the 173,333 Private Placement Warrants. The Company previously accounted for all Warrants as components of equity. In further consideration of the guidance in Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging; Contracts in Entity’s Own Equity, the Company concluded that a provision in the Warrant Agreement related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants should be recorded as derivative liabilities on the Balance Sheet and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with ASC 820, Fair Value Measurement, with changes in fair value recognized in the statement of operations in the period of change. The Company concluded that it is appropriate to restate the Company’s previously issued audited balance sheet as of February 23, 2021 as previously reported in its Form 8-K. The restated classification and reported values of the Warrants as accounted for under ASC 815-40 are included in the financial statements herein. The following tables summarize the effect of the revision on each balance sheet line item as of the date: As Previously Reported Adjustment As Restated Balance Sheet at February 23, 2021 Warrant liability $ — $ 5,276,966 $ 5,276,966 Class A common stock subject to possible redemption 168,833,560 (5,276,970 ) 163,556,590 Class A common stock 89 52 141 Additional paid-in capital 5,004,730 115,356 5,120,086 Accumulated deficit (5,246 ) (115,404 ) (120,650 ) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The financial statements of the Company are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). 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 Securities Exchange Act of 1934, as amended) 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 an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement 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. The Company’s unaudited condensed interim financial statements have been prepared in accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial information and the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP. In the opinion of management, all adjustments considered for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any other period. The accompanying unaudited condensed interim financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s prospectus filed with the SEC on February 19, 2021, as well as the Company’s audited balance sheet statement and notes thereto included in the Company’s Form 8-K filed with the SEC on March 2, 2021. Loss Per Common Share The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” Net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding for the period, excluding shares of common stock subject to forfeiture. Net loss per common share is computed by dividing net gain/(loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period, plus, to the extent dilutive, the incremental number of shares of common stock to settle warrants, as calculated using the treasury stock method. At March 31, 2021, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company under the treasury stock method. As a result, diluted loss per common share is the same as basic loss per common share for the periods. Reconciliation of Income (Loss) Per Common Share The Company’s net loss is adjusted for the portion of income that is attributable to shares of common stock subject to possible redemption, as these shares only participate in the earnings of the Trust Account and not the income or losses of the Company. Accordingly, basic and diluted loss per share is calculated as follows: Three Months Ended March 31, 2021 Common stock subject to possible redemption Numerator: Net income allocable to Class A common stock subject to possible redemption Interest income $ 4,075 Less: interest available to be withdrawn for payment of taxes (4,075 ) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted Average Redeemable Class A common stock Redeemable Class A common stock, Basic and Diluted 6,523,528 Basic and Diluted net income per share, Redeemable Class A $ 0.00 Non-Redeemable Common Stock Numerator: Net income minus redeemable Net Earnings Net loss $ (587,600 ) Redeemable Net Earnings — Non-Redeemable Net Loss $ (587,600 ) Denominator: Weighted Average Non-Redeemable Common Stock Weighted average shares outstanding, basic and diluted (1) 4,896,872 Basic and diluted net loss per common share $ (0.12 ) Cash and Cash Equivalents The Company considers all short-term investments with an original maturity date of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of March 31, 2021 and December 31, 2020. 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 Depository Insurance Coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Deferred Offering Costs The Company complies with the requirements of the FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A — “Expenses of Offering.” Deferred offering costs of $80,000 as of December 31, 2020, consisted principally of costs incurred in connection with preparation for the Public Offering. The total offering costs incurred by the Company in connection with the Public Offering was $436,189. These costs and the underwriter discount, of $3,450,000, were charged to capital upon completion of the Public Offering on February 23, 2021 and $115,404 was reclassified to warrant issue costs and charged to expense in the statement of operations for the three months ended March 31, 2021. Income Taxes The Company is included in the consolidated tax return of B. Riley Financial (the “Parent”). The Company calculates the provision for income taxes by using a “separate return” method. Under this method the Company is assumed to file a separate return with the tax authority, thereby reporting its taxable income or loss and paying the applicable tax to, or receiving the appropriate refund from, the Parent. The Company’s current provision is the amount of tax payable or refundable on the basis of a hypothetical, current year, separate return. Any difference between the tax provision (or benefit) allocated to the Company under the separate return method and payments to be made by (or received from) the Parent for tax expense are treated as either dividends or capital contribution. Accordingly, the amount by which the Company’s tax liability under the separate return method exceeds the amount of tax liability ultimately settled as a result of using incremental expenses of the Parent is periodically settled as a capital contribution from the Parent to the Company. The Company complies with the accounting and reporting requirements of ASC Topic 740 “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of March 31, 2021, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. 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 may be subject to potential examination by federal, state and city taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal, state and city 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. The provision for income taxes was deemed to be immaterial. Unrecognized Tax Benefits The Company recognizes tax positions in its financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the financial statements. There were no unrecognized tax benefits as of March 31, 2021. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for interest expense and penalties related to income tax matters as of March 31, 2021. The Company is subject to income tax examinations by major taxing authorities since inception. Warrant Liability The Company accounts for warrants for shares of the Company’s common stock that are not indexed to its own stock as liabilities at fair value on the balance sheet. The warrants will be re-evaluated for the proper accounting treatment at each reporting period and are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the statement of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the common stock warrants. At that time, the portion of the liability related to the common stock warrants will be reclassified to additional paid-in capital. At March 31, 2021, there were 5,923,333 Warrants issued in connection with the Public Offering (the 5,750,000 public Warrants and the 173,333 Private Placement Warrants). Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 4 — RELATED PARTY TRANSACTIONS Founder Shares On June 19, 2020, 4,312,500 shares of our Class B common stock were issued to B. Riley Principal Investments, LLC (the “Founder Shares”). All of the Founder Shares were contributed to the Sponsor in June 2020. As used herein, unless the context otherwise requires, Founder Shares shall be deemed to include the shares of Class A common stock issuable upon conversion thereof. The Founder Shares are identical to the Class A common stock included in the Units being sold in the Proposed Offering, except that the Founder Shares automatically convert into shares of Class A common stock at the time of the Initial Business Combination and are subject to certain transfer restrictions, as described in more detail below, and the holders of the Founder Shares, as described in more detail below, have agreed to certain restrictions and will have certain registration rights with respect thereto. The number of Founder Shares issued was determined based on the expectation that the Founder Shares would represent 20% of the outstanding shares of common stock upon completion of the Proposed Offering excluding the shares underlying the Private Placement Units (the “Private Placement Shares”). The Company’s initial stockholders, officers and directors have agreed, subject to limited exceptions, not to transfer, assign or sell any Founder Shares held by them until the earlier to occur of: (i) one year after the completion of the Initial Business Combination, (ii) the last sale price of Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Initial Business Combination, or (iii) the date following the completion of the Initial Business Combination on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of the public stockholders having the right to exchange their shares of common stock for cash, securities or other property. Business Combination Marketing Agreement Pursuant to a business combination marketing agreement, the Company engaged B. Riley Securities, Inc. as advisors in connection with its Initial Business Combination to assist it in arranging meetings with its stockholders to discuss a potential business combination and the target business’ attributes, introduce it to potential investors that may be interested in purchasing its securities, assist it in obtaining stockholder approval for its Initial Business Combination and assist it with the preparation of press releases and public filings in connection with the Initial Business Combination. The Company will pay B. Riley Securities, Inc. for such services upon the consummation of the Initial Business Combination a cash fee in an amount equal to 3.5% of the gross proceeds of the Public Offering (exclusive of any applicable finders’ fees which might become payable) ($6,037,500 since the underwriters’ over-allotment option was exercised in full). Pursuant to the terms of the business combination marketing agreement, no fee will be due if the Company does not complete an Initial Business Combination. Administrative Fees Commencing on February 19, 2021, the Company agreed to pay an affiliate of the Sponsor a total of $3,750 per month for office space, utilities and secretarial and administrative support. Upon completion of the Initial Business Combination or the Company’s liquidation, it will cease paying these monthly fees. Registration Rights The holders of Founder Shares (and any shares of Class A common stock issuable upon conversion of the Founder Shares), Private Placement Units, Private Placement Shares, Private Placement Warrants (and any shares of Class A common stock issuable upon the exercise of the Private Placement Warrants) and any securities that may be issued upon conversion of working capital loans, if any, have registration rights to require the Company to register the resale of any of its securities held by them (in the case of the Founder Shares, only after conversion of such shares to shares of Class A common stock) pursuant to a registration rights agreement. These holders are also entitled to certain piggyback registration rights. However, the registration rights agreement provides that the Company will not permit any registration statement filed under the Securities Act to become effective until termination of the applicable lock-up period for the securities to be registered. The Company will bear the expenses incurred in connection with the filing of any such registration statements. The Forward Purchase Units and securities underlying the Forward Purchase Units have substantially similar registration rights. Note Payable — Related Party The Company had a Note Payable to the Sponsor which allowed the Company to borrow up to $300,000 without interest to be used for a portion of the expenses associated with the Public Offering. The Note Payable was payable on the earlier of: (i) December 31, 2021 or (ii) the date on which the Company consummated an initial public offering of its securities. At February 23, 2021, the Note Payable balance was $40,000. The Note Payable was paid in full using proceeds from the Public Offering and the Private Placement on March 1, 2021. |
Recurring Fair Value Measuremen
Recurring Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
RECURRING FAIR VALUE MEASUREMENTS | NOTE 5 — RECURRING FAIR VALUE MEASUREMENTS The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of March 31, 2021, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. Quoted Significant Significant Prices In Other Other Active Observable Observable March 31, Markets Inputs Inputs 2021 (Level 1) (Level 2) (Level 3) Assets: Cash held in Trust Account $ 172,504,075 $ 172,504,075 $ — $ — 172,504,075 172,504,075 — — Liabilities: Private Placement Warrants $ 5,405,000 $ — $ — $ 5,405,000 Public Warrants 168,133 — — 168,133 Warrant Liability $ 5,573,133 $ — $ — $ 5,573,133 Warrants The Warrants are accounted for as liabilities in accordance with ASC 815-40 and are presented within warrant liabilities on the Balance Sheet. The warrant liabilities are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of warrant liabilities in the Statement of Operations. Initial Measurement The Company established the initial fair value for the Warrants on February 23, 2021, the date of the Company’s Initial Public Offering, using a Monte Carlo simulation model for the Public Warrants, and the Black-Sholes Model for Private Placement Warrants and Forward Purchase Warrants based on their relative fair values at the initial measurement date. The Warrants were classified as Level 3 at the initial measurement date due to the use of unobservable inputs. The key inputs into the Monte Carlo simulation model and Black-Scholes Model were as follows at initial measurement: February 23, 2021 (Initial Input Measurement) Risk-free interest rate 0.9 % Expected term (years) 6.4 Expected volatility 14.0 % Exercise price $ 9.69 March 31, 2021 Input Measurement Risk-free interest rate 1.2 % Expected term (years) 6.3 Expected volatility 14.0 % Exercise price $ 9.67 Subsequent Measurement At March 31, 2021, the same valuation methodology as indicated above was used to measure the warrant liabilities. |
Stockholder's Equity
Stockholder's Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDER'S EQUITY | NOTE 6 — STOCKHOLDER’S EQUITY Common Stock The authorized common stock of the Company includes up to 100,000,000 shares of Class A common stock and 25,000,000 shares of Class B common stock. If the Company enters into an Initial Business Combination, it may (depending on the terms of such an Initial Business Combination) be required to increase the number of shares of Class A common stock which the Company is authorized to issue at the same time as the Company’s stockholders vote on the Initial Business Combination, to the extent the Company seeks stockholder approval in connection with the Initial Business Combination. Holders of the Company’s common stock are entitled to one vote for each share of common stock. Preferred Stock The Company is authorized to issue 1,000,000 shares of preferred stock with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. At March 31, 2021 and December 31, 2020, there were no shares of preferred stock issued or outstanding. Warrants Warrants may only be exercised for a whole number of shares. No fractional Warrants will be issued upon separation of the Units and only whole Warrants will trade. The Warrants will become exercisable on the later of (a) 30 days after the completion of the Initial Business Combination or (b) 12 months from the closing of the Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the shares of Class A common stock issuable upon exercise of the Warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their Warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Company will as soon as practicable, but in no event later than 15 business days, after the closing of the Initial Business Combination, use its best efforts to file with the Securities and Exchange Commission (“SEC”) a registration statement for the registration, under the Securities Act, of the shares of Class A common stock issuable upon exercise of the Warrants, to cause such registration statement to become effective within 60 business days after the closing of the Initial Business Combination and to maintain a current prospectus relating to those shares of Class A common stock until the Warrants expire or are redeemed, as specified in the Company’s warrant agreement. If the shares issuable upon exercise of the Warrants are not registered under the Securities Act by the 60 th The Warrants will expire at 5:00 p.m., New York City time, five years after the completion of a Business Combination or earlier upon redemption or liquidation. The Private Placement Warrants are identical to the Warrants underlying the Units sold in the Public Offering, except that the Private Placement Warrants and the shares of Class A common stock issuable upon exercise of the Private Placement Warrants will not be transferable, assignable or salable until 30 days after the completion of the Initial Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be non-redeemable so long as they are held by the Sponsor or its permitted transferees. If the Private Placement Warrants are held by someone other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by the Company and exercisable by such holders on the same basis as the Warrants. The Company may call the Warrants for redemption (except with respect to the Private Placement Warrants): ● in whole and not in part; ● at a price of $0.01 per Warrant; ● upon a minimum of 30 days’ prior written notice of redemption (the “30-day redemption period”); and ● if, and only if, the last sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. If the Company calls the Warrants for redemption, management will have the option to require all holders that wish to exercise the Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. In addition, if (x) the Company issues additional shares of Class A common stock or securities convertible into or exercisable or exchangeable for shares of Class A common stock for capital raising purposes in connection with the closing of the Initial Business Combination (excluding any issuance of securities under the forward purchase agreement), at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance (the “Newly Issued Price”)), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for funding the Initial Business Combination, and (z) the volume weighted average trading price of the Class A common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates the Initial Business Combination (the “Market Value”) is below $9.20 per share, the exercise price of the Warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price. Additionally, in no event will the Company be required to net cash settle any Warrant. In the event that a registration statement is not effective for the exercised Warrants, the purchaser of a Unit containing such Warrant will have paid the full purchase price for the Unit solely for the share of Class A common stock underlying such Unit. There will be no redemption rights or liquidating distributions with respect to the Warrants, which will expire worthless if the Company fails to complete an Initial Business Combination within the 24-month time period. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 7 — SUBSEQUENT EVENTS The Company evaluates subsequent events and transactions that occurred after the balance sheet date up to the date the financial statement was issued. Based upon this review, other than disclosed, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial statements of the Company are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). 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 Securities Exchange Act of 1934, as amended) 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 an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statement 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. The Company’s unaudited condensed interim financial statements have been prepared in accordance with U.S. GAAP and the rules and regulations of the SEC for interim financial information and the instructions to Form 10-Q. Accordingly, the financial statements do not include all of the information and footnotes required by U.S. GAAP. In the opinion of management, all adjustments considered for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or any other period. The accompanying unaudited condensed interim financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s prospectus filed with the SEC on February 19, 2021, as well as the Company’s audited balance sheet statement and notes thereto included in the Company’s Form 8-K filed with the SEC on March 2, 2021. |
Loss Per Common Share | Loss Per Common Share The Company complies with accounting and disclosure requirements of ASC Topic 260, “Earnings Per Share.” Net loss per common share is computed by dividing net loss by the weighted average number of common shares outstanding for the period, excluding shares of common stock subject to forfeiture. Net loss per common share is computed by dividing net gain/(loss) applicable to common stockholders by the weighted average number of common shares outstanding during the period, plus, to the extent dilutive, the incremental number of shares of common stock to settle warrants, as calculated using the treasury stock method. At March 31, 2021, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company under the treasury stock method. As a result, diluted loss per common share is the same as basic loss per common share for the periods. |
Reconciliation of Income (Loss) Per Common Share | Reconciliation of Income (Loss) Per Common Share The Company’s net loss is adjusted for the portion of income that is attributable to shares of common stock subject to possible redemption, as these shares only participate in the earnings of the Trust Account and not the income or losses of the Company. Accordingly, basic and diluted loss per share is calculated as follows: Three Months Ended March 31, 2021 Common stock subject to possible redemption Numerator: Net income allocable to Class A common stock subject to possible redemption Interest income $ 4,075 Less: interest available to be withdrawn for payment of taxes (4,075 ) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted Average Redeemable Class A common stock Redeemable Class A common stock, Basic and Diluted 6,523,528 Basic and Diluted net income per share, Redeemable Class A $ 0.00 Non-Redeemable Common Stock Numerator: Net income minus redeemable Net Earnings Net loss $ (587,600 ) Redeemable Net Earnings — Non-Redeemable Net Loss $ (587,600 ) Denominator: Weighted Average Non-Redeemable Common Stock Weighted average shares outstanding, basic and diluted (1) 4,896,872 Basic and diluted net loss per common share $ (0.12 ) |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all short-term investments with an original maturity date of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of March 31, 2021 and December 31, 2020. |
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 Depository Insurance Coverage of $250,000. The Company has not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Deferred Offering Costs | Deferred Offering Costs The Company complies with the requirements of the FASB ASC 340-10-S99-1 and SEC Staff Accounting Bulletin Topic 5A — “Expenses of Offering.” Deferred offering costs of $80,000 as of December 31, 2020, consisted principally of costs incurred in connection with preparation for the Public Offering. The total offering costs incurred by the Company in connection with the Public Offering was $436,189. These costs and the underwriter discount, of $3,450,000, were charged to capital upon completion of the Public Offering on February 23, 2021 and $115,404 was reclassified to warrant issue costs and charged to expense in the statement of operations for the three months ended March 31, 2021. |
Income Taxes | Income Taxes The Company is included in the consolidated tax return of B. Riley Financial (the “Parent”). The Company calculates the provision for income taxes by using a “separate return” method. Under this method the Company is assumed to file a separate return with the tax authority, thereby reporting its taxable income or loss and paying the applicable tax to, or receiving the appropriate refund from, the Parent. The Company’s current provision is the amount of tax payable or refundable on the basis of a hypothetical, current year, separate return. Any difference between the tax provision (or benefit) allocated to the Company under the separate return method and payments to be made by (or received from) the Parent for tax expense are treated as either dividends or capital contribution. Accordingly, the amount by which the Company’s tax liability under the separate return method exceeds the amount of tax liability ultimately settled as a result of using incremental expenses of the Parent is periodically settled as a capital contribution from the Parent to the Company. The Company complies with the accounting and reporting requirements of ASC Topic 740 “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of March 31, 2021, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. 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 may be subject to potential examination by federal, state and city taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal, state and city 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. The provision for income taxes was deemed to be immaterial. |
Unrecognized Tax Benefits | Unrecognized Tax Benefits The Company recognizes tax positions in its financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position. A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement. A liability is established for differences between positions taken in a tax return and amounts recognized in the financial statements. There were no unrecognized tax benefits as of March 31, 2021. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for interest expense and penalties related to income tax matters as of March 31, 2021. The Company is subject to income tax examinations by major taxing authorities since inception. |
Warrant Liability | Warrant Liability The Company accounts for warrants for shares of the Company’s common stock that are not indexed to its own stock as liabilities at fair value on the balance sheet. The warrants will be re-evaluated for the proper accounting treatment at each reporting period and are subject to remeasurement at each balance sheet date and any change in fair value is recognized as a component of other income (expense), net on the statement of operations. The Company will continue to adjust the liability for changes in fair value until the earlier of the exercise or expiration of the common stock warrants. At that time, the portion of the liability related to the common stock warrants will be reclassified to additional paid-in capital. At March 31, 2021, there were 5,923,333 Warrants issued in connection with the Public Offering (the 5,750,000 public Warrants and the 173,333 Private Placement Warrants). |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements. |
Restatement of Previously Iss_2
Restatement of Previously Issued Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of the restatement on each financial statement | As Previously Reported Adjustment As Restated Balance Sheet at February 23, 2021 Warrant liability $ — $ 5,276,966 $ 5,276,966 Class A common stock subject to possible redemption 168,833,560 (5,276,970 ) 163,556,590 Class A common stock 89 52 141 Additional paid-in capital 5,004,730 115,356 5,120,086 Accumulated deficit (5,246 ) (115,404 ) (120,650 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of basic and diluted net income (loss) per common share | Three Months Ended March 31, 2021 Common stock subject to possible redemption Numerator: Net income allocable to Class A common stock subject to possible redemption Interest income $ 4,075 Less: interest available to be withdrawn for payment of taxes (4,075 ) Net income allocable to Class A common stock subject to possible redemption $ — Denominator: Weighted Average Redeemable Class A common stock Redeemable Class A common stock, Basic and Diluted 6,523,528 Basic and Diluted net income per share, Redeemable Class A $ 0.00 Non-Redeemable Common Stock Numerator: Net income minus redeemable Net Earnings Net loss $ (587,600 ) Redeemable Net Earnings — Non-Redeemable Net Loss $ (587,600 ) Denominator: Weighted Average Non-Redeemable Common Stock Weighted average shares outstanding, basic and diluted (1) 4,896,872 Basic and diluted net loss per common share $ (0.12 ) |
Recurring Fair Value Measurem_2
Recurring Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Quoted Significant Significant Prices In Other Other Active Observable Observable March 31, Markets Inputs Inputs 2021 (Level 1) (Level 2) (Level 3) Assets: Cash held in Trust Account $ 172,504,075 $ 172,504,075 $ — $ — 172,504,075 172,504,075 — — Liabilities: Private Placement Warrants $ 5,405,000 $ — $ — $ 5,405,000 Public Warrants 168,133 — — 168,133 Warrant Liability $ 5,573,133 $ — $ — $ 5,573,133 |
Schedule of fair value of initial measurement | February 23, 2021 (Initial Input Measurement) Risk-free interest rate 0.9 % Expected term (years) 6.4 Expected volatility 14.0 % Exercise price $ 9.69 March 31, 2021 Input Measurement Risk-free interest rate 1.2 % Expected term (years) 6.3 Expected volatility 14.0 % Exercise price $ 9.67 |
Organization and Nature of Bu_2
Organization and Nature of Business Operations (Details) - USD ($) | 1 Months Ended | 3 Months Ended |
Jun. 19, 2020 | Mar. 31, 2021 | |
Organization and Nature of Business Operations (Details) [Line Items] | ||
Price per share (in Dollars per share) | $ 11.50 | |
Gross proceeds | $ 167,382,500 | |
Percentage of gross proceeds | 3.50% | |
Borrowing amount | 300,000 | |
Due to related party | $ 40,000 | |
Public Offering [Member] | ||
Organization and Nature of Business Operations (Details) [Line Items] | ||
Sale of stock in shares (in Shares) | 17,250,000 | |
Price per share (in Dollars per share) | $ 10 | |
Underwriting commissions | $ 3,450,000 | |
Percentage of gross proceeds | 2.00% | |
Other offering costs | $ 436,189 | |
Description of transaction | Each Unit consists of one share of the Company’s Class A common stock, $0.0001 par value (each a “public share”), and one-third of one redeemable warrant, with each whole warrant exercisable for one share of Class A common stock (each, a “Warrant” and, with respect to the warrants underlying the Private Placement Units, the “Private Placement Warrants” and, collectively, the “Warrants”). One Warrant entitles the holder thereof to purchase one whole share of Class A common stock at a price of $11.50 per share. | |
Public share par value (in Dollars per share) | $ 0.0001 | |
Proceeds of initial public offering | $ 172,500,000 | |
Description of initial business combination | The Initial Business Combination must occur with one or more businesses or assets with a fair market value equal to at least 80% of the assets held in the Trust Account. There is no assurance that the Company will be able to successfully effect an Initial Business Combination. The Company will provide its public stockholders with the opportunity to redeem all or a portion of their shares upon the completion of the Initial Business Combination, either (i) in connection with a stockholder meeting called to approve the business combination or (ii) by means of a tender offer. However, in no event will the Company redeem its public shares in an amount that would cause its net tangible assets to be less than $5,000,001. If the Company holds a stockholder meeting to approve the Initial Business Combination, a public stockholder will have the right to redeem its public shares for an amount in cash equal to its pro rata share of the aggregate amount then on deposit in the Trust Account as of two business days prior to the consummation of the Initial Business Combination, including interest but less taxes payable. As a result, such shares of Class A common stock have been recorded at redemption amount and classified as temporary equity upon the completion of the Public Offering, in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 480, “Distinguishing Liabilities from Equity.” Pursuant to the Company’s amended and restated certificate of incorporation, if the Company is unable to complete the Initial Business Combination within 24 months from the closing of the Public Offering, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but no more than ten business days thereafter redeem 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 franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. | |
Over-allotment option [Member] | ||
Organization and Nature of Business Operations (Details) [Line Items] | ||
Sale of stock in shares (in Shares) | 2,250,000 | |
Gross proceeds | $ 6,037,500 | |
Private Placement Units [Member] | ||
Organization and Nature of Business Operations (Details) [Line Items] | ||
Sale of stock in shares (in Shares) | 520,000 | |
Price per share (in Dollars per share) | $ 10 | |
Gross proceeds | $ 5,200,000 | |
Public Units [Member] | ||
Organization and Nature of Business Operations (Details) [Line Items] | ||
Sale of stock in shares (in Shares) | 17,250,000 | |
Public Units [Member] | ||
Organization and Nature of Business Operations (Details) [Line Items] | ||
Gross proceeds | $ 172,500,000 | |
Trust Account [Member] | ||
Organization and Nature of Business Operations (Details) [Line Items] | ||
Description of transaction | the Investment Company Act, having a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 promulgated under the Investment Company Act that invest only in direct U.S. government treasury obligations. Unless and until the Company completes the Initial Business Combination, it may pay its expenses only from the net proceeds of the Public Offering and the Private Placement held outside the Trust Account, which was $353,077 on March 31, 2021. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, the proceeds from the Public Offering may not be released from the Trust Account until the earliest of: (i) the completion of the Initial Business Combination; (ii) the redemption of any public shares properly submitted in connection with a stockholder vote to amend the Company’s 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 it does not complete the Initial Business Combination within 24 months from the closing of the Public Offering; or (iii) the redemption of all of the Company’s public shares if the Company is unable to complete the Initial Business Combination within 24 months from the closing of the Public Offering (at which such time up to $100,000 of interest shall be available to the Company to pay dissolution expenses), subject to applicable law. 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 holders of the Company’s public shares (the “public stockholders”). | |
Sponsor [Member] | ||
Organization and Nature of Business Operations (Details) [Line Items] | ||
Description of transaction | (i) December 31, 2021 or (ii) the date on which the Company consummates an initial public offering of its securities. As of February 23, 2021, the borrowings outstanding on the note payable due to related party was $40,000. On March 1, 2021 such amount was repaid using proceeds from the Public Offering and the Private Placement. |
Restatement of Previously Iss_3
Restatement of Previously Issued Financial Statements (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Warrant Description | As a result of the SEC Statement, the Company reevaluated the accounting treatment of (i) the 5,750,000 Public Warrants, and (ii) the 173,333 Private Placement Warrants. The Company previously accounted for all Warrants as components of equity. |
Restatement of Previously Iss_4
Restatement of Previously Issued Financial Statements (Details) - Schedule of the restatement on each financial statement | 1 Months Ended |
Feb. 23, 2021USD ($)shares | |
As Previously Reported [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Warrant liability | |
Class A common stock subject to possible redemption (in Shares) | shares | 168,833,560 |
Class A common stock | $ 89 |
Additional paid-in capital | 5,004,730 |
Accumulated deficit | (5,246) |
Adjustment [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Warrant liability | $ 5,276,966 |
Class A common stock subject to possible redemption (in Shares) | shares | (5,276,970) |
Class A common stock | $ 52 |
Additional paid-in capital | 115,356 |
Accumulated deficit | (115,404) |
As Restated [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Warrant liability | $ 5,276,966 |
Class A common stock subject to possible redemption (in Shares) | shares | 163,556,590 |
Class A common stock | $ 141 |
Additional paid-in capital | 5,120,086 |
Accumulated deficit | $ (120,650) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Feb. 23, 2021 | Dec. 31, 2020 | |
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Federal Depository insurance coverage | $ 250,000 | ||
Deferred offering costs | $ 80,000 | ||
Public offering costs | $ 436,189 | ||
Deferred underwriting discount | $ 3,450,000 | ||
Other offering costs | $ 115,404 | ||
Warrant [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Issuance of warrants (in Shares) | 5,923,333 | ||
Public Warrants [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Issuance of warrants (in Shares) | 5,750,000 | ||
Private Placement Warrants [Member] | |||
Summary of Significant Accounting Policies (Details) [Line Items] | |||
Issuance of warrants (in Shares) | 173,333 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of basic and diluted net income (loss) per common share | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Numerator: Net income allocable to Class A common stock subject to possible redemption | |
Interest income | $ 4,075 |
Less: interest available to be withdrawn for payment of taxes | (4,075) |
Net income allocable to Class A common stock subject to possible redemption | |
Denominator: Weighted Average Redeemable Class A common stock | |
Redeemable Class A common stock, Basic and Diluted (in Shares) | shares | 6,523,528 |
Basic and Diluted net income per share, Redeemable Class A (in Dollars per share) | $ / shares | $ 0 |
Numerator: Net income minus redeemable Net Earnings | |
Net loss | $ (587,600) |
Redeemable Net Earnings | |
Non-Redeemable Net Loss | $ (587,600) |
Denominator: Weighted Average Non-Redeemable Common Stock | |
Weighted average shares outstanding, basic and diluted (in Shares) | shares | 4,896,972 |
Basic and diluted net loss per common share (in Dollars per share) | $ / shares | $ (0.12) |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Jun. 19, 2020 | Mar. 31, 2021 | Feb. 19, 2021 | |
Related Party Transactions (Details) [Line Items] | |||
Percentage of public offering | 3.50% | ||
Underwriter's amount | $ 167,382,500 | ||
Per month of office space | $ 3,750 | ||
Borrowing amount | $ 300,000 | ||
Description of notes payable related party | The Note Payable was payable on the earlier of: (i) December 31, 2021 or (ii) the date on which the Company consummated an initial public offering of its securities. At February 23, 2021, the Note Payable balance was $40,000. The Note Payable was paid in full using proceeds from the Public Offering and the Private Placement on March 1, 2021. | ||
Founder Shares [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Description of transaction | The Company’s initial stockholders, officers and directors have agreed, subject to limited exceptions, not to transfer, assign or sell any Founder Shares held by them until the earlier to occur of: (i) one year after the completion of the Initial Business Combination, (ii) the last sale price of Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the Initial Business Combination, or (iii) the date following the completion of the Initial Business Combination on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of the public stockholders having the right to exchange their shares of common stock for cash, securities or other property. | ||
Over-Allotment Option [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Underwriter's amount | $ 6,037,500 | ||
Common Stock [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Percentage Of Outstanding shares | 20.00% | ||
Class B common stock [Member] | |||
Related Party Transactions (Details) [Line Items] | |||
Issuance of shares (in Shares) | 4,312,500 | ||
Underwriter's amount |
Recurring Fair Value Measurem_3
Recurring Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Mar. 31, 2021USD ($) |
Recurring Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Cash held in Trust Account | $ 172,504,075 |
Total assets | 172,504,075 |
Private Placement Warrants | 5,405,000 |
Public Warrants | 168,133 |
Warrant Liability | 5,573,133 |
Quoted Prices In Active Markets (Level 1) | |
Recurring Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Cash held in Trust Account | 172,504,075 |
Total assets | 172,504,075 |
Private Placement Warrants | |
Public Warrants | |
Warrant Liability | |
Significant Other Observable Inputs (Level 2) | |
Recurring Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Cash held in Trust Account | |
Total assets | |
Private Placement Warrants | |
Public Warrants | |
Warrant Liability | |
Significant Other Observable Inputs (Level 3) | |
Recurring Fair Value Measurements (Details) - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Cash held in Trust Account | |
Total assets | |
Private Placement Warrants | 5,405,000 |
Public Warrants | 168,133 |
Warrant Liability | $ 5,573,133 |
Recurring Fair Value Measurem_4
Recurring Fair Value Measurements (Details) - Schedule of fair value of initial measurement - $ / shares | 1 Months Ended | 3 Months Ended |
Feb. 23, 2021 | Mar. 31, 2021 | |
Schedule of fair value of initial measurement [Abstract] | ||
Risk-free interest rate | 0.90% | 1.20% |
Expected term (years) | 6 years 146 days | 6 years 109 days |
Expected volatility | 14.00% | 14.00% |
Exercise price (in Dollars per share) | $ 9.69 | $ 9.67 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Stockholder's Equity (Details) [Line Items] | ||
Preferred stock shares authorized | 1,000,000 | 1,000,000 |
Warrant term | 5 years | |
Description of warrant | The Company may call the Warrants for redemption (except with respect to the Private Placement Warrants): ●in whole and not in part; ●at a price of $0.01 per Warrant; ●upon a minimum of 30 days’ prior written notice of redemption (the “30-day redemption period”); and ●if, and only if, the last sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. If the Company calls the Warrants for redemption, management will have the option to require all holders that wish to exercise the Warrants to do so on a “cashless basis,” as described in the warrant agreement. The exercise price and number of shares of Class A common stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. In addition, if (x) the Company issues additional shares of Class A common stock or securities convertible into or exercisable or exchangeable for shares of Class A common stock for capital raising purposes in connection with the closing of the Initial Business Combination (excluding any issuance of securities under the forward purchase agreement), at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance (the “Newly Issued Price”)), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for funding the Initial Business Combination, and (z) the volume weighted average trading price of the Class A common stock during the 20 trading day period starting on the trading day prior to the day on which the Company consummates the Initial Business Combination (the “Market Value”) is below $9.20 per share, the exercise price of the Warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described above will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price. Additionally, in no event will the Company be required to net cash settle any Warrant. In the event that a registration statement is not effective for the exercised Warrants, the purchaser of a Unit containing such Warrant will have paid the full purchase price for the Unit solely for the share of Class A common stock underlying such Unit. There will be no redemption rights or liquidating distributions with respect to the Warrants, which will expire worthless if the Company fails to complete an Initial Business Combination within the 24-month time period. | |
Warrant [Member] | ||
Stockholder's Equity (Details) [Line Items] | ||
Warrant price (in Dollars per share) | $ 0.01 | |
Board of directors [Member] | ||
Stockholder's Equity (Details) [Line Items] | ||
Preferred stock shares authorized | 1,000,000 | |
Class A common stock [Member] | ||
Stockholder's Equity (Details) [Line Items] | ||
Shares of common stock | 100,000,000 | 100,000,000 |
Class A common stock [Member] | Maximum [Member] | ||
Stockholder's Equity (Details) [Line Items] | ||
Shares of common stock | 100,000,000 | |
Class B common stock [Member] | ||
Stockholder's Equity (Details) [Line Items] | ||
Shares of common stock | 10,000,000 | 10,000,000 |
Class B common stock [Member] | Maximum [Member] | ||
Stockholder's Equity (Details) [Line Items] | ||
Shares of common stock | 25,000,000 |