Document and Entity Information
Document and Entity Information - shares | 7 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Entity File Number | 001-39126 | |
Entity Registrant Name | XPAC ACQUISITION CORP. | |
Entity Incorporation, State or Country Code | KY | |
Entity Tax Identification Number | 00-0000000 | |
Entity Address, Address Line One | 55 West 46th Street, 30th floor | |
Entity Address, City or Town | New York | |
Entity Address State Or Province | NY | |
Entity Address, Postal Zip Code | 10036 | |
City Area Code | 646 | |
Local Phone Number | 664-0501 | |
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 | 0001853397 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Transition Report | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A ordinary share, par value $0.0001 per share | |
Trading Symbol | XPAX | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 21,961,131 | |
Warrants, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants, each whole warrant exercisable for one share of common stock at an exercise price of $11.50 per whole share | |
Trading Symbol | XPAXW | |
Security Exchange Name | NASDAQ | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,490,283 |
CONDENSED BALANCE SHEET
CONDENSED BALANCE SHEET | Sep. 30, 2021USD ($) |
Current assets | |
Cash | $ 1,006,126 |
Prepaid expenses | 414,250 |
Total Current Assets | 1,420,376 |
Cash and marketable securities held in trust account | 219,613,318 |
Prepaid expenses | 333,542 |
Total Noncurrent Assets | 219,946,860 |
Total Assets | 221,367,236 |
Current Liabilities | |
Accounts payable | 162,605 |
Accrued expenses | 302,560 |
Accrued offering costs | 542,000 |
Total Current Liabilities | 1,007,165 |
Promissory note payable - related party | 84,412 |
Deferred underwriter's commission fee | 7,686,396 |
Warrant liability | 8,135,002 |
Total Liabilities | 16,912,975 |
Commitments and Contingencies (Note 8) | |
Class A ordinary shares subject to possible redemption, 21,961,131 shares at redemption value | 219,613,318 |
Shareholders' Deficit | |
Preference shares, $0.0001 par value, 1,000,000 shares authorized; none issued and outstanding | |
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; none issued and outstanding (excluding 21,961,131 shares of Class A ordinary shares subject to redemption) | |
Ordinary shares | |
Accumulated deficit | (15,159,606) |
Total Shareholders' Deficit | (15,159,057) |
Total Liabilities and Shareholders' Deficit | 221,367,236 |
Class B Common Stock | |
Shareholders' Deficit | |
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; none issued and outstanding (excluding 21,961,131 shares of Class A ordinary shares subject to redemption) | 549 |
Ordinary shares | $ 549 |
CONDENSED BALANCE SHEET (Parent
CONDENSED BALANCE SHEET (Parenthetical) | Sep. 30, 2021$ / sharesshares |
Preferred stock, par value, (per share) | $ / shares | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Class A Common Stock | |
Common shares, par value, (per share) | $ / shares | $ 0.0001 |
Common shares, shares authorized | 200,000,000 |
Common shares, shares issued | 0 |
Common shares, shares outstanding | 0 |
Class A Common Stock Subject to Redemption | |
Temporary equity, shares outstanding | 21,961,131 |
Class B Common Stock | |
Common shares, par value, (per share) | $ / shares | $ 0.0001 |
Common shares, shares authorized | 20,000,000 |
Common shares, shares issued | 5,490,283 |
Common shares, shares outstanding | 5,490,283 |
CONDENSED STATEMENTS OF OPERATI
CONDENSED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 7 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Formation and operating costs | $ (589,667) | $ (600,920) |
Loss from operations | (589,667) | (600,920) |
Other Income | ||
Offering expenses related to warrant issuance | (519,498) | (519,498) |
Change in fair value of warrant liabilities | (5,553,385) | (5,553,385) |
Unrealized gain on securities held in trust | 2,008 | 2,008 |
Total Other Income | 5,035,895 | 5,035,895 |
Net Income | $ 4,446,228 | $ 4,434,975 |
Class B Common Stock | ||
Other Income | ||
Weighted-average shares outstanding, basic | 5,629,916 | 5,469,765 |
Diluted weighted average shares outstanding | 5,629,916 | 5,469,765 |
Basic net income (loss) per share | $ 0.23 | $ 0.38 |
Diluted net income (loss) per share | $ 0.23 | $ 0.38 |
Class B Common Stock Not Subject to Redemption | ||
Other Income | ||
Weighted-average shares outstanding, basic | 5,629,916 | 5,469,765 |
Diluted weighted average shares outstanding | 5,629,916 | 5,469,765 |
Basic net income (loss) per share | $ 0.23 | $ 0.38 |
Diluted net income (loss) per share | $ 0.23 | $ 0.38 |
Class A Common Stock Subject to Redemption | ||
Other Income | ||
Weighted-average shares outstanding, basic | 13,594,936 | 6,197,691 |
Diluted weighted average shares outstanding | 13,594,936 | 6,197,691 |
Basic net income (loss) per share | $ 0.23 | $ 0.38 |
Diluted net income (loss) per share | $ 0.23 | $ 0.38 |
CONDENSED STATEMENT OF CHANGES
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Class A Common StockCommon Stock | Class B Common StockCommon Stock | Additional Paid-in Capital | Accumulated Deficit | Total |
Balance at the beginning at Mar. 10, 2021 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Balance at the beginning (in shares) at Mar. 10, 2021 | 0 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of founder shares | $ 0 | $ 575 | 24,425 | 25,000 | |
Issuance of founder shares (in shares) | 0 | 575,000 | |||
Net Loss | $ 0 | (11,069) | (11,069) | ||
Balance at the end at Mar. 31, 2021 | $ 0 | $ 575 | 24,425 | (11,069) | 13,931 |
Balance at the end (in shares) at Mar. 31, 2021 | 0 | 575,000 | |||
Balance at the beginning at Mar. 10, 2021 | $ 0 | $ 0 | 0 | 0 | 0 |
Balance at the beginning (in shares) at Mar. 10, 2021 | 0 | 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Loss | 4,434,975 | ||||
Balance at the end at Sep. 30, 2021 | $ 0 | $ 549 | (15,159,606) | (15,159,057) | |
Balance at the end (in shares) at Sep. 30, 2021 | 0 | 5,490,283 | |||
Balance at the beginning at Mar. 31, 2021 | $ 0 | $ 575 | 24,425 | (11,069) | 13,931 |
Balance at the beginning (in shares) at Mar. 31, 2021 | 0 | 575,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Loss | $ 0 | (183) | (183) | ||
Balance at the end at Jun. 30, 2021 | $ 0 | $ 575 | 24,425 | (11,252) | 13,748 |
Balance at the end (in shares) at Jun. 30, 2021 | 0 | 575,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Forfeiture of founder shares | $ 0 | $ (26) | 26 | ||
Forfeiture of founder shares (in shares) | 0 | (259,717) | |||
Redeemable Share accretion | $ 0 | $ (24,451) | (19,594,582) | (19,619,033) | |
Net Loss | 0 | 4,446,228 | 4,446,228 | ||
Balance at the end at Sep. 30, 2021 | $ 0 | $ 549 | $ (15,159,606) | $ (15,159,057) | |
Balance at the end (in shares) at Sep. 30, 2021 | 0 | 5,490,283 |
CONDENSED STATEMENT OF CASH FLO
CONDENSED STATEMENT OF CASH FLOWS | 7 Months Ended |
Sep. 30, 2021USD ($) | |
Cash flows from operating activities: | |
Net income | $ 4,434,975 |
Adjustments to reconcile cash used in operating activities: | |
Change in warrant liability | (5,553,385) |
Offering costs allocated to warrants | 519,498 |
Unrealized gain on securities held in trust | (2,008) |
Changes in operating assets and liabilities: | |
Prepaid expenses | (747,792) |
Accounts payable | 162,605 |
Accrued expenses | 302,560 |
Due to related party | 84,412 |
Net cash used in operating activities | (799,135) |
Cash Flows from Investing Activities: | |
Investments Held in Trust Account | (219,611,310) |
Net cash used in investing activities | (219,611,310) |
Cash Flows from Financing Activities: | |
Proceeds from sale of Class B ordinary shares to Sponsor | 25,000 |
Proceeds from sale of Units, net of underwriting discount | 215,219,083 |
Proceeds from sale of Private Placement Warrants | 6,392,228 |
Payment of offering costs | (219,740) |
Net cash provided by financing activities | 221,416,571 |
Net change in cash | 1,006,126 |
Cash at beginning of period | 0 |
Cash at end of period | 1,006,126 |
Supplemental disclosure of cash flow information: | |
Record ordinary shares subject to redemption | (219,613,318) |
Deferred underwriting fee payable | (7,686,396) |
Deferred offering costs included in accrued offering costs | 542,000 |
Deferred offering costs included in due to related party | $ 84,412 |
ORGANIZATION AND BUSINESS BACKG
ORGANIZATION AND BUSINESS BACKGROUND | 7 Months Ended |
Sep. 30, 2021 | |
ORGANIZATION AND BUSINESS BACKGROUND | |
ORGANIZATION AND BUSINESS BACKGROUND | NOTE 1 — ORGANIZATION AND BUSINESS BACKGROUND XPAC Acquisition Corp. (the “Company”) was incorporated in the Cayman Islands on March 11, 2021. The Company was formed for the purpose of entering into a merger, amalgamation, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company is not limited to a particular industry or sector for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies. As of September 30, 2021, the Company had not commenced any operations. All activity for the period from March 11, 2021 (inception) through September 30, 2021 relates to the Company’s formation and the initial public offering (“Initial Public Offering”). The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end. The registration statement for the Company’s Initial Public Offering was declared effective on July 29, 2021 (the “Effective Date”). On August 3, 2021, the Company consummated the IPO of 20,000,000 Units at $10.00 per Unit, generating gross proceeds of $200,000,000, which is discussed in Note 3. Simultaneously with the closing of the IPO, the Company consummated the sale of 4,000,000 Private Placement Warrants (the “Private Warrants”) at a price of $1.50 per Private Warrant in a private placement to certain funds and accounts managed by XPAC Sponsor, LLC (the “Sponsor”) generating proceeds of $6,000,000 from the sale of the Private Placement Warrants, which is discussed in Note 4. The Company had granted the underwriters in the Initial Public Offering (the “Underwriters”) a 45-day NOTE 1 — ORGANIZATION AND BUSINESS BACKGROUND (Cont.) The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Public Offering and the sale of the Private Placement Warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. There is no assurance that the Company will be able to complete a Business Combination successfully. The Company must complete a Business Combination with one or more operating businesses or assets that together have an aggregate fair market value equal to at least 80% of the net assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on the income earned on the Trust Account) at the time of the Company’s signing a definitive agreement in connection with its initial Business Combination. The Company will only complete a Business Combination if the post-transaction company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target business sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). Management agreed that an amount equal to at least $10.00 per Unit sold in the Initial Public Offering, including the proceeds from the sale of the Private Placement Warrants, will be held in a trust account (“Trust Account”), located in the United States and invested only in U.S. government treasury bills, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries and meeting certain conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the funds held in the Trust Account, as described below. The Company will provide its public shareholders with the opportunity to redeem all or a portion of their public shares upon the completion of the initial business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account calculated as of two business days prior to the consummation of the initial business combination, including interest earned on the funds held in the trust account and not previously released to us to pay our taxes (which interest shall be net of taxes payable), divided by the number of then issued and outstanding public shares, subject to the limitations described herein. The amount in the trust account is initially anticipated to be $10.00 per public share. The per-share amount we will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriter. The redemption rights will include the requirement that a beneficial holder must identify itself in order to validly redeem its shares. There will be no redemption rights upon the completion of our initial business combination with respect to our warrants. Our initial shareholders, directors and officers have entered into a letter agreement with us, pursuant to which they have agreed to waive their redemption rights with respect to any founder shares and public shares held by them in connection with the completion of our initial business combination. The Company will only proceed with a Business Combination if the Company has net tangible assets of at least $5,000,001 either prior to or upon such consummation of a Business Combination and, if the Company seeks shareholder approval, a majority of the shares voted are voted in favor of the Business Combination. If a shareholder vote is not required by applicable law or stock exchange rules and the Company does not decide to hold a shareholder vote for business or other reasons, the Company will, pursuant to its Amended and Restated Certificate of Association (the “Amended and Restated Certificate of Association”), conduct the redemptions pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”) and file tender offer documents with the SEC prior to completing a Business Combination. If, however, shareholder approval of the transaction is required by applicable law or stock exchange rules, or the Company decides to obtain shareholder approval for business or other reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If the Company seeks shareholder approval in connection with a Business Combination, the Sponsor has agreed to vote its Founder Shares (as defined in Note 5), and any Public Shares purchased during or after the Initial Public Offering in favor of approving a Business Combination. Additionally, each public shareholder may elect to redeem their Public Shares irrespective of whether they vote for or against the proposed transaction or do not vote at all. NOTE 1 — ORGANIZATION AND BUSINESS BACKGROUND (Cont.) Notwithstanding the above, if the Company seeks shareholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Amended and Restated Certificate of Incorporation provides that a public shareholder, together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group” (as defined under Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), will be restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Public Shares, without the prior consent of the Company. The Sponsor has agreed (a) to waive its redemption rights with respect to its Founder Shares and Public Shares held by it in connection with the completion of a Business Combination and (b) not to propose an amendment to the Amended and Restated Certificate of Incorporation (i) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the Company’s initial Business Combination or to redeem 100% of its Public Shares if the Company does not complete a Business Combination or (ii) with respect to any other provision relating to shareholders rights or pre-initial business combination activity, unless the Company provides the public shareholders with the opportunity to redeem their Public Shares in conjunction with any such amendment. The Company will have until 24 months from the closing of the Initial Public Offering to complete a Business Combination (the “Combination Period”). If the Company is unable to complete a 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 The Sponsor has agreed to waive its liquidation rights with respect to the Founder Shares if the Company fails to complete a Business Combination within the Combination Period. However, if the Sponsor acquires Public Shares in or after the Initial Public Offering, such Public Shares will be entitled to liquidating distributions from the Trust Account if the Company fails to complete a Business Combination within the Combination Period. The underwriter has agreed to waive it right to its deferred underwriting commission (see Note 8) held in the Trust Account in the event the Company does not complete a Business Combination within the Combination Period and, in such event, such amounts will be included with the other funds held in the Trust Account that will be available to fund the redemption of the Public Shares. In the event of such distribution, it is possible that the per share value of the assets remaining available for distribution will be less than the Initial Public Offering price per Unit ($10.00). NOTE 1 — ORGANIZATION AND BUSINESS BACKGROUND (Cont.) In order to protect the amounts held in the Trust Account, the Sponsor has agreed to be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below (1) $10.00 per Public Share or (2) such lesser amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the trust assets, in each case net of the interest which may be withdrawn to pay franchise and income taxes. This liability will not apply with respect to claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriter of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsor will not be responsible to the extent of any liability for such third-party claims. The Company will seek to reduce the possibility that the Sponsor will have to indemnify the Trust Account due to claims of creditors by endeavoring to have all vendors, service providers (except the Company’s independent registered public accounting firm), prospective target businesses and other entities with which the Company does business, execute agreements with the Company waiving any right, title, interest or claim of any kind in or to monies held in the Trust Account. Going Concern Consideration At September 30, 2021, the Company had $1,006,126 in cash and working capital of $413,211. The Company has incurred and expects to continue to incur significant costs in pursuit of its financing and acquisition plans. These conditions raise substantial doubt about the Company’s ability to continue as a going concern for a period of time within one year after the date that the financial statements are issued. There is no assurance that the Company’s plan to consummate a Business Combination will be successful or successful within the Combination Window. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Risks and Uncertainties Management is currently evaluating the impact of the COVID-19 pandemic 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, close of the Initial Public Offering, and/or search for a target company, the specific impact is not readily determinable as of the date of these financial statements. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 7 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying audited financial statements are presented in in conformity 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 audited 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 period presented. The results for the period for the period ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods. Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. 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. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) Use of Estimates (Cont.) Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. Income taxes The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability method, as required by this accounting standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to the period when assets are realized or liabilities are settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the operation of statement in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of September 30, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented. Offering costs 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 IPO. Offering costs are charged to stockholders’ equity or the statement of operations based on the relative value of the Public Warrants and the Private Placement Warrants to the proceeds received from the Units sold upon the completion of the IPO and any over-allotment exercised. Accordingly, on August 3, 2021, offering costs totaling $11,761,739 (consisting of $4,000,000 of underwriting fee, $7,000,000 of deferred underwriting fee and $761,739 of other offering costs) were recognized with $477,711 included in accumulated deficit as an allocation for the Public Warrants and the Private Placement Warrants, and $11,284,028 included in additional paid-in capital. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) On August 16, 2021, the underwriter partially exercised the over-allotment option and, on August 19, 2021, purchased an additional 1,961,131 Units (the “Over-Allotment Units”) from the Company, generating gross proceeds of $19,611,310. As a result of the partial exercise of the over-allotment option, the incremental increase in offering costs is $1,078,624 (consisting of $392,228 of underwriting fee and $686,396 of deferred underwriting fee) with $41,786 included in accumulated deficit as allocation for the Public Warrants and the Private Placement Warrants, and $1,036,838 included in additional paid-in capital. Net Income Per Ordinary Share The Company’s statements of operations include a presentation of net income per share for ordinary shares subject to possible redemption and applies the two-class method in calculating net income per share. Net income per ordinary share, basic and diluted, is calculated by dividing the pro-rata allocation of net income for each class, by the weighted average number of Class A and Class B non-redeemable ordinary shares outstanding for the period. Net income is allocated pro-rata between Class A redeemable and Class B non-redeemable shares based on their respective weighted average shares outstanding for the period The following table reflects the calculation of basic and diluted net income per ordinary share (in dollars, except per share amounts): For the Period from March 11, For the three months ended 2021 (Inception) Through September 30, 2021 September 30, 2021 Redeemable Non-Redeemable Redeemable Non-Redeemable Class A Class B ordinary Class A ordinary Class B ordinary ordinary shares shares shares shares Basic and diluted net income (loss) per share Numerator: Allocation of net income $ 3,144,169 $ 1,302,059 $ 2,355,835 $ 2,079,140 Denominator: Weighted-average shares outstanding 13,594,936 5,629,916 6,197,691 5,469,765 Basic and diluted net income (loss) per share $ 0.23 $ 0.23 $ 0.38 $ 0.38 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) Fair Value of Financial Instruments The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC 820, “Fair Value Measurement,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances. Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. Warrant Liability The Company accounts for warrants for the Company’s ordinary shares that are not indexed to its own shares as liabilities at fair value on the balance sheet. The warrants 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 ordinary share warrants. At that time, the portion of the warrant liability related to the ordinary share warrants will be reclassified to additional paid-in capital. Related Parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. 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 cash of $1,006,126 as of September 30, 2021. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) Investments Held in Trust Account At September 30, 2021, the $ 219,613,318 held in the Trust Account was held in money market funds, which are invested in U.S. Treasury securities. The investments held in the Trust Account are presented at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in unrealized gains on investments held in trust account on the accompanying condensed statements of operations. The estimated fair value of investments held in the Trust Account are determined using available market information. Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification ("ASC") Topic 480 "Distinguishing Liabilities from Equity." Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and is measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholder’s equity. The Company's ordinary shares 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 ordinary shares subject to possible redemption is presented at redemption value as temporary equity, outside of the shareholder’s equity section of the Company's balance sheet. Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40). The new guidance eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity's own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. This guidance is effective as of January 1, 2022 (Early adoption is permitted effective January 1, 2021). The Company is currently evaluating the effect the updated standard will have on its financial position, results of operations or financial statement disclosure. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on the results of operations, financial condition, or cash flows, based on the current information. |
INITIAL PUBLIC OFFERING
INITIAL PUBLIC OFFERING | 7 Months Ended |
Sep. 30, 2021 | |
INITIAL PUBLIC OFFERING | |
INITIAL PUBLIC OFFERING | NOTE 3 — INITIAL PUBLIC OFFERING Pursuant to the Initial Public Offering on August 3, 2021, the Company sold 20,000,000 Units at a price of $10.00 per Unit. Each Unit consisted of one share of Class A ordinary shares and one -third of one warrant (“Public Warrant”). Each whole Public Warrant entitles the holder to purchase one share of Class A ordinary shares at a price of $11.50 per share, subject to adjustment (see Note 6). On August 16, 2021, the underwriter partially exercised the over-allotment option and on August 19, 2021, purchased an additional 1,961,131 Units from the Company (the “Over-Allotment Units”), generating gross proceeds of $19,611,310. In connection with the Underwriter’s partial exercise of their over-allotment option, the Sponsor purchased an additional 261,485 Private Placement Warrants (the “Additional Private Placement Warrants”), generating gross proceeds to the Company of approximately $392,228. An aggregate of $10.00 per Unit sold in the Initial Public Offering was held in the Trust Account and invested in U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with a maturity of 180 days or less or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company. |
PRIVATE PLACEMENT
PRIVATE PLACEMENT | 7 Months Ended |
Sep. 30, 2021 | |
PRIVATE PLACEMENT | |
PRIVATE PLACEMENT | NOTE 4 — PRIVATE PLACEMENT Simultaneously with the closing of the IPO, the Sponsor purchased an aggregate of 4,000,000 Private Placement Warrants, at a price of $1.50 per Private Placement Warrant, for an aggregate of $6,000,000, in a private placement. Simultaneously, with the closing of the exercise of the over-allotment option, the Company completed the sale of an additional 261,485 Private Placement Warrants to the Sponsor, at a purchase price of $1.50 per Private Warrant, generating gross proceeds of $392,228. A portion of the proceeds from the sale of Private Placement Warrants were added to the proceeds from the IPO held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the proceeds from the sale of the Private Placement Warrants held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law), and the Private Placement Warrants will expire worthless |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 7 Months Ended |
Sep. 30, 2021 | |
RELATED PARTY TRANSACTIONS | |
RELATED PARTY TRANSACTIONS | NOTE 5 — RELATED PARTY TRANSACTIONS Founder Shares In March 2021, the Sponsor purchased 5,750,000 shares of the Company’s Class B ordinary shares (the “Founder Shares”) for an aggregate purchase price of $25,000. This amount was paid on behalf of the Company to cover certain expenses. The Founder Shares include an aggregate of up to 750,000 shares subject to forfeiture by the Sponsor to the extent that the underwriter’s overallotment is not exercised in full or in part, so that the number of Founder Shares will collectively represent approximately 20% of the Company’s issued and outstanding shares after the Initial Public Offering. Since the underwriter did not exercise the over-allotment option in full, the Sponsor forfeited 259,717 Class B ordinary shares, which were forfeited by the Company. As a result of such forfeiture, there are currently 5,490,283 Class B ordinary shares issued and outstanding . The Sponsor and the Company’s directors and executive officers have agreed, subject to certain limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier of (A) one year after the completion of a Business Combination and (B) subsequent to a Business Combination, (x) if the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for stock splits, stock reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 120 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, amalgamation, stock exchange, reorganization or other similar transaction that results in all of the Company’s shareholders having the right to exchange their shares of Class A ordinary shares for cash, securities or other property. Promissory Note — Related Party In March 2021, the Sponsor issued an unsecured promissory note to the Company (the “Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $300,000. As of September 30, 2021, the Company had drawn down $84,412 under the promissory note to pay for offering expenses. The Promissory Note was non-interest bearing and the amount of $84,412 is still owed as of September 30, 2021. Related Party Loans In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor may, but is not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company may repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. At the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post-Business Combination entity at a price of $1.50 per warrant. The warrants would be identical to the Private Placement Warrants. As of September 30, 2021, the Company had no outstanding borrowings under the Working Capital Loans. Administrative Support Agreement The Company has agreed, commencing on the date that the Company’s securities are first listed on a U.S. national securities exchange through the earlier of the Company’s consummation of a Business Combination and its liquidation, to pay an affiliate of the Sponsor a total of $10,000 per month for office space, secretarial, and administrative support, when needed. As of September 30, 2021, the Company had not utilized the office space, secretarial, or administrative support and as result has not incurred or accrued for any expense related to this agreement. NOTE 5 — RELATED PARTY TRANSACTIONS (Cont.) Advisory Services Agreement The Company engaged XP Investimentos Corretora de Câmbio, Títulos e Valores Mobiliários S.A., an indirect, wholly-owned subsidiary of XP, Inc. and an affiliate of the Sponsor, to provide financial consulting services, consisting of a review of deal structure and terms and related advice in connection with this offering, for which it received a fee of $1,725,443.24 of the cash underwriting paid to the Underwriter. See Note 8 below for further discussion of the Underwriter Agreement. |
SHAREHOLDER'S EQUITY
SHAREHOLDER'S EQUITY | 7 Months Ended |
Sep. 30, 2021 | |
SHAREHOLDER'S EQUITY | |
SHAREHOLDER'S EQUITY | NOTE 6 Preference shares — outstanding Class A ordinary shares — Class B ordinary shares — outstanding The shares of Class B ordinary shares (founder shares) will automatically convert into shares of Class A ordinary shares at the time of a Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which shares of Class B ordinary shares shall convert into shares of Class A ordinary shares will be adjusted (unless the holders of a majority of the outstanding shares of Class B ordinary shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A ordinary shares issuable upon conversion of all shares of Class B ordinary shares will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of ordinary shares outstanding upon the completion of the Initial Public Offering plus all shares of Class A ordinary shares and equity-linked securities issued or deemed issued in connection with a Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination). Refer to Note 3 and Note 9 for discussion of the initial public offering that occurred on August 3, 2021. |
WARRANTS LIABILITIES
WARRANTS LIABILITIES | 7 Months Ended |
Sep. 30, 2021 | |
WARRANTS LIABILITIES | |
WARRANTS LIABILITIES | NOTE 7 Public 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 Public Warrants will become exercisable on the later of (a) 12 months from the closing of the Initial Public Offering and (b) 30 days after the completion of a Business Combination. NOTE 7 Redemption of warrants when the price per Class A ordinary shares equals or exceeds $18.00 . ● in whole and not in part; ● at a price of $0.01 per warrant; ● upon not less than 30 days ’ prior written notice of redemption to each warrant holder; and ● if, and only if, the last reported sale price of the Class A ordinary shares 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 will send the notice of redemption to the warrant holders (referred to as the “Reference Value”) equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading “— Redeemable Warrants — Public Shareholders’ Warrants — Anti-dilution Adjustments”). If and when the Public Warrants become redeemable by the Company, it may exercise its redemption right even if the Company is unable to register or qualify the underlying securities for sale under all applicable state securities laws. NOTE 7 Redemption of warrants when the price per Class A ordinary shares equals or exceeds $10.00 . ● in whole and not in part; ● at $0.10 per warrant; ● upon a minimum of 30 days ’ prior written notice of redemption provided that holders will be able to exercise their warrants on a cashless basis prior to redemption and receive that number of shares based on the redemption date and the fair market value of the Class A ordinary shares; ● if, and only if, the Reference Value (as defined above under “— Redemption of warrants when the price per share of our Class A ordinary shares equals or exceeds $18.00 ”) equals or exceeds $10.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading “— Anti-dilution Adjustments”); and ● if the Reference Value is less than $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant as described under the heading “— Anti-dilution Adjustments”), the private placement warrants must also be concurrently called for redemption on the same terms as the outstanding public warrants, as described above. In addition, if (x) the Company issues additional shares of Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of a Business Combination at an issue price or effective issue price of less than $9.20 per share of Class A ordinary shares (with such issue price or effective issue price to be determined in good faith by the Company’s board of directors and, in the case of any such issuance to the Sponsor or its affiliates, without taking into account any Founder Shares held by the Sponsor or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds, and interest thereon, available for the funding of a Business Combination on the date of the consummation of a Business Combination (net of redemptions), and (z) the volume weighted average trading price of the shares of Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which the Company consummates a Business Combination (such price, the “Market Value”) is below $9.20 per share, then 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, the $18.00 per share redemption trigger price and the “Redemption of Warrants when the price per share of Class A ordinary shares equals or exceeds $10.00” 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, and the $10.00 per share redemption trigger price described above. The Private Placement Warrants are identical to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Placement Warrants and the shares of Class A ordinary shares issuable upon the exercise of the Private Placement Warrants will not be transferable, assignable or saleable until 30 days after the completion of a Business Combination, subject to certain limited exceptions. Additionally, the Private Placement Warrants will be exercisable for cash or on a cashless basis, at the holder’s option, and be non-redeemable so long as they are held by the initial purchasers or their permitted transferees (except for a number of shares of Class A ordinary shares as described above under Redemption of warrants for Class A ordinary shares). If the Private Placement Warrants are held by someone other than the initial purchasers or their permitted transferees, the Private Placement Warrants will be redeemable by the Company in all redemption scenarios and exercisable by such holders on the same basis as the Public Warrants. NOTE 7 As of September 30, 2021, there were 7,320,377 Public Warrants and 4,261,485 Private Placement Warrants outstanding. The Company accounts for the Public Warrants and Private Placement Warrants in accordance with the guidance contained in ASC 815-40. Such guidance provides that because an event that is not within the entity's control could require net cash settlement the warrants do not meet the criteria for equity classification and as a result each warrant must be recorded as a derivative liability. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 7 Months Ended |
Sep. 30, 2021 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 — COMMITMENTS AND CONTINGENCIES Registration and Shareholder Rights The holders of the Founder Shares and Private Placement Warrants (and any shares of Class A ordinary shares issuable upon the exercise of the Private Placement Warrants and warrants that may be issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) are entitled to registration rights pursuant to a registration rights and shareholder agreement to be signed prior to or on the effective date of the Initial Public Offering, requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to shares of Class A ordinary shares). The holders of these securities will be entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders will have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration and shareholder 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. The Company will bear the expenses incurred in connection with the filing of any such registration statements. Underwriter Agreement In connection with the Initial Public Offering, the underwriters were granted a 45-day The underwriters were paid a cash underwriting discount of $0.20 per Unit, or $4,392,226 in the aggregate upon the closing of the Initial Public Offering and the partial exercise of the over-allotment option. In addition, the underwriters will be entitled to a deferred fee of $0.35 per Unit, or $7,686,396 in the aggregate. Subject to the terms of the underwriting agreement, (i) the deferred fee will be placed in the Trust Account and released to the underwriters only upon the completion of a Business Combination and (ii) the deferred fee will be waived by the underwriters in the event that the Company does not complete a Business Combination. |
RECURRING FAIR VALUE MEASUREMEN
RECURRING FAIR VALUE MEASUREMENTS | 7 Months Ended |
Sep. 30, 2021 | |
RECURRING FAIR VALUE MEASUREMENTS | |
RECURRING FAIR VALUE MEASUREMENTS | NOTE 9- RECURRING FAIR VALUE MEASUREMENTS At September 30, 2021, the Company’s warrant liability was valued at $8,135,002. Under the guidance in ASC 815-40, the Public Warrants and the Private Placement Warrants do not meet the criteria for equity treatment. As such, the Public Warrants and the Private Warrants must be recorded on the balance sheet at fair value. This valuation is subject to re-measurement at each balance sheet date. With each re-measurement, the valuations will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations. The following table presents fair value information as of September 30, 2021 of the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. The Company’s warrant liability is based on a valuation models 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 fair value of the warrant liability is classified within Level 3 of the fair value hierarchy at the initial measurement date. For the period ending September 30, 2021, the Public Warrants were reclassified from a Level 3 to a Level 1 classification due to use of the observed trading price of the separated Public Warrants. Transfers between Levels are recorded at the end of each reporting period. The following table sets forth by level within the fair value hierarchy the Company’s assets and liabilities that were accounted for at fair value on a recurring basis: (Level 1) (Level 2) (Level 3) Assets Cash and marketable securities held in trust account $ 219,613,318 $ — $ — Liabilities Public Warrants $ 5,124,264 $ — $ — Private Placement Warrants $ — $ — $ 3,010,738 Measurement The Company established the initial fair value for the warrants on August 3, 2021, the date of the consummation of the Company’s IPO using a Black-Scholes-Merton formula model. At the date of the IPO, the Company allocated the proceeds received from (i) the sale of Units (which is inclusive of one share of Class A common stock and one-half of one Public Warrant), (ii) the sale of Private Placement Warrants, and (iii) the issuance of Class B common stock, first to the warrants based on their fair values as determined at initial measurement, with the remaining proceeds allocated to Class A common stock subject to possible redemption (temporary equity), Class A common stock (permanent equity) and Class B common stock (permanent equity) based on their relative fair values at the initial measurement date. As of September 30, 2021, the Public Warrants were publicly traded and their fair value is based on the publicly traded price. The fair value for the Private Warrants was estimated using a Monte Carlo simulation model. The following table presents a summary of the changes in the fair value of the Private Warrants and Public Warrants, a Level 3 liability, measured on a recurring basis. Private Public Warrant Warrant Fair Value as of August 3, 2021 (IPO date) $ 4,770,000 $ 7,838,000 Change in fair value of warrant liabilities 311,820 768,567 Fair Value as of August 19, 2021 (over-allotment date) $ 5,081,820 $ 8,606,567 Transfer out of Level 3 — (8,606,567) Change in fair value of warrant liabilities (2,071,081) — Fair Value as of September 30, 2021 $ 3,010,738 $ — The key inputs into the Monte Carlo formula model were as follows September 30, 2021: Private Warrant Stock price $ 9.70 Exercise price $ 11.50 Risk-free rate 1.12 % Expected term to merger 0.83 yrs. Expected term of warrants 5.83 yrs. Estimated probability of a successful merger 90 % Callable No Volatility 12.72 % |
RESTATEMENT OF PREVIOUSLY ISSUE
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | 7 Months Ended |
Sep. 30, 2021 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 10 – RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS In connection with the preparation of the Company’s financial statements as of September 30, 2021, management identified errors made in its August 3, 2021 Balance Sheet and the August 3, 2021 Pro Forma Balance Sheet, filed as part of the 8-K filing and subsequent over-allotment filing, at the closing of the Company’s Initial Public Offering. For the August 3, 2021 Balance Sheet and the August 3, 2021 Pro Forma Balance Sheet, the Company determined the Class A ordinary shares subject to possible redemption to be equal to the redemption value of the Public Shares, while also taking into consideration that the redemption cannot result in net tangible assets being less than $5,000,001. Management has determined that while provisions in the Company’s charter may result in the Company being unable to redeem all of the Redeemable Shares in certain situations, the Redeemable Shares still contain redemption provisions which are outside of the Company’s control and therefore should be classified outside of permanent equity. Therefore, management concluded that the redemption value should include all Public Shares subject to possible redemption, resulting in the Class A ordinary shares subject to possible redemption being equal to the full redemption value of the Public Shares. As a result, management has noted a reclassification error related to temporary equity and permanent equity. This resulted in an adjustment to the initial carrying value of the Class A ordinary shares subject to possible redemption with the offset recorded to Class A ordinary shares and additional paid-in capital. The impact of the restatement on the Company’s financial statements is reflected in the following table. As Previously Balance Sheet as of August 3, 2021 (audited) Reported Adjustment As Restated Class A ordinary shares subject to possible redemption $ 176,643,160 $ 23,356,840 $ 200,000,000 Class A ordinary shares $ 237 $ (237) $ — Class B ordinary shares $ 575 $ — $ 575 Additional paid-in capital $ 5,489,003 $ (5,489,003) $ — Accumulated deficit $ (489,807) $ (17,867,600) $ (18,357,407) Total Shareholders’ Equity (Deficit) $ 5,000,005 $ (23,356,840) $ (18,356,835) Pro Forma Balance Sheet as of August 3, 2021 (audited) Class A ordinary shares subject to possible redemption $ 194,487,690 $ 25,123,620 $ 219,611,310 Class A ordinary shares $ 251 $ (251) $ — Class B ordinary shares $ 549 $ — $ 549 Additional paid-in capital $ 5,530,795 $ (5,530,795) $ — Accumulated deficit $ (531,593) $ (19,592,574) $ (20,124,167) Total Shareholders’ Equity (Deficit) $ 5,000,002 $ (25,123,620) $ (20,123,618) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 7 Months Ended |
Sep. 30, 2021 | |
SUBSEQUENT EVENTS | |
SUBSEQUENT EVENTS | NOTE 11 — SUBSEQUENT EVENTS The Company evaluated subsequent events to determine if events or transactions occurred after the balance sheet date up to the date that the financial statements were issued. The Company identified no subsequent events as of the date that the financial statements were issued. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 7 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The accompanying audited financial statements are presented in in conformity 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 audited 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 period presented. The results for the period for the period ended September 30, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021 or for any future interim periods. |
Emerging Growth Company | Emerging Growth Company The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the independent registered public accounting firm attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used. |
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. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) Use of Estimates (Cont.) Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates. |
Income taxes | Income taxes The Company accounts for income taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” (“ASC 740”). Under the asset and liability method, as required by this accounting standard, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts of assets and liabilities in the financial statements and their respective tax basis. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to the period when assets are realized or liabilities are settled. Any effect on deferred tax assets and liabilities of a change in tax rates is recognized in the operation of statement in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Current income taxes are provided for in accordance with the laws of the relevant taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of September 30, 2021. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. ASC 740 prescribes a comprehensive model for how companies should recognize, measure, present, and disclose in their financial statements uncertain tax positions taken or expected to be taken on a tax return. Under ASC 740, tax positions must initially be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions must initially and subsequently be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented. |
Offering costs | Offering costs 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 IPO. Offering costs are charged to stockholders’ equity or the statement of operations based on the relative value of the Public Warrants and the Private Placement Warrants to the proceeds received from the Units sold upon the completion of the IPO and any over-allotment exercised. Accordingly, on August 3, 2021, offering costs totaling $11,761,739 (consisting of $4,000,000 of underwriting fee, $7,000,000 of deferred underwriting fee and $761,739 of other offering costs) were recognized with $477,711 included in accumulated deficit as an allocation for the Public Warrants and the Private Placement Warrants, and $11,284,028 included in additional paid-in capital. NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont.) On August 16, 2021, the underwriter partially exercised the over-allotment option and, on August 19, 2021, purchased an additional 1,961,131 Units (the “Over-Allotment Units”) from the Company, generating gross proceeds of $19,611,310. As a result of the partial exercise of the over-allotment option, the incremental increase in offering costs is $1,078,624 (consisting of $392,228 of underwriting fee and $686,396 of deferred underwriting fee) with $41,786 included in accumulated deficit as allocation for the Public Warrants and the Private Placement Warrants, and $1,036,838 included in additional paid-in capital. |
Net Income Per Ordinary Share | Net Income Per Ordinary Share The Company’s statements of operations include a presentation of net income per share for ordinary shares subject to possible redemption and applies the two-class method in calculating net income per share. Net income per ordinary share, basic and diluted, is calculated by dividing the pro-rata allocation of net income for each class, by the weighted average number of Class A and Class B non-redeemable ordinary shares outstanding for the period. Net income is allocated pro-rata between Class A redeemable and Class B non-redeemable shares based on their respective weighted average shares outstanding for the period The following table reflects the calculation of basic and diluted net income per ordinary share (in dollars, except per share amounts): For the Period from March 11, For the three months ended 2021 (Inception) Through September 30, 2021 September 30, 2021 Redeemable Non-Redeemable Redeemable Non-Redeemable Class A Class B ordinary Class A ordinary Class B ordinary ordinary shares shares shares shares Basic and diluted net income (loss) per share Numerator: Allocation of net income $ 3,144,169 $ 1,302,059 $ 2,355,835 $ 2,079,140 Denominator: Weighted-average shares outstanding 13,594,936 5,629,916 6,197,691 5,469,765 Basic and diluted net income (loss) per share $ 0.23 $ 0.23 $ 0.38 $ 0.38 |
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 820, “Fair Value Measurement,” approximates the carrying amounts represented in the balance sheet, primarily due to their short-term nature. The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances. Level 1 — Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 — Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. |
Warrant Liability | Warrant Liability The Company accounts for warrants for the Company’s ordinary shares that are not indexed to its own shares as liabilities at fair value on the balance sheet. The warrants 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 ordinary share warrants. At that time, the portion of the warrant liability related to the ordinary share warrants will be reclassified to additional paid-in capital. |
Related Parties | Related Parties Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence. |
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 cash of $1,006,126 as of September 30, 2021. |
Investments Held in Trust Account | Investments Held in Trust Account At September 30, 2021, the $ 219,613,318 held in the Trust Account was held in money market funds, which are invested in U.S. Treasury securities. The investments held in the Trust Account are presented at fair value at the end of each reporting period. Gains and losses resulting from the change in fair value of these securities is included in unrealized gains on investments held in trust account on the accompanying condensed statements of operations. The estimated fair value of investments held in the Trust Account are determined using available market information. |
Class A Common Stock Subject to Possible Redemption | Class A Ordinary Shares Subject to Possible Redemption The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification ("ASC") Topic 480 "Distinguishing Liabilities from Equity." Ordinary shares subject to mandatory redemption (if any) are classified as a liability instrument and is measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company's control) are classified as temporary equity. At all other times, ordinary shares are classified as shareholder’s equity. The Company's ordinary shares 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 ordinary shares subject to possible redemption is presented at redemption value as temporary equity, outside of the shareholder’s equity section of the Company's balance sheet. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity's Own Equity (Subtopic 815-40). The new guidance eliminates the beneficial conversion and cash conversion accounting models for convertible instruments. It also amends the accounting for certain contracts in an entity's own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, the new guidance modifies how particular convertible instruments and certain contracts that may be settled in cash or shares impact the diluted EPS computation. This guidance is effective as of January 1, 2022 (Early adoption is permitted effective January 1, 2021). The Company is currently evaluating the effect the updated standard will have on its financial position, results of operations or financial statement disclosure. The Company has considered all new accounting pronouncements and has concluded that there are no new pronouncements that may have a material impact on the results of operations, financial condition, or cash flows, based on the current information. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 7 Months Ended |
Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Reconciliation of Net income per ordinary share | The following table reflects the calculation of basic and diluted net income per ordinary share (in dollars, except per share amounts): For the Period from March 11, For the three months ended 2021 (Inception) Through September 30, 2021 September 30, 2021 Redeemable Non-Redeemable Redeemable Non-Redeemable Class A Class B ordinary Class A ordinary Class B ordinary ordinary shares shares shares shares Basic and diluted net income (loss) per share Numerator: Allocation of net income $ 3,144,169 $ 1,302,059 $ 2,355,835 $ 2,079,140 Denominator: Weighted-average shares outstanding 13,594,936 5,629,916 6,197,691 5,469,765 Basic and diluted net income (loss) per share $ 0.23 $ 0.23 $ 0.38 $ 0.38 |
RECURRING FAIR VALUE MEASUREM_2
RECURRING FAIR VALUE MEASUREMENTS (Tables) | 7 Months Ended |
Sep. 30, 2021 | |
FAIR VALUE MEASUREMENTS. | |
Summary of assets and liabilities that were accounted for at fair value on a recurring basis | (Level 1) (Level 2) (Level 3) Assets Cash and marketable securities held in trust account $ 219,613,318 $ — $ — Liabilities Public Warrants $ 5,124,264 $ — $ — Private Placement Warrants $ — $ — $ 3,010,738 |
Summary of the changes in the fair value of the Private Warrants and Public Warrants, a Level 3 liability, measured on a recurring basis | Private Public Warrant Warrant Fair Value as of August 3, 2021 (IPO date) $ 4,770,000 $ 7,838,000 Change in fair value of warrant liabilities 311,820 768,567 Fair Value as of August 19, 2021 (over-allotment date) $ 5,081,820 $ 8,606,567 Transfer out of Level 3 — (8,606,567) Change in fair value of warrant liabilities (2,071,081) — Fair Value as of September 30, 2021 $ 3,010,738 $ — |
Schedule of key inputs into the Monte Carlo formula model | The key inputs into the Monte Carlo formula model were as follows September 30, 2021: Private Warrant Stock price $ 9.70 Exercise price $ 11.50 Risk-free rate 1.12 % Expected term to merger 0.83 yrs. Expected term of warrants 5.83 yrs. Estimated probability of a successful merger 90 % Callable No Volatility 12.72 % |
RESTATEMENT OF PREVIOUSLY ISS_2
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Tables) | 7 Months Ended |
Sep. 30, 2021 | |
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | |
Summary of impact on previously issued financial statements | As Previously Balance Sheet as of August 3, 2021 (audited) Reported Adjustment As Restated Class A ordinary shares subject to possible redemption $ 176,643,160 $ 23,356,840 $ 200,000,000 Class A ordinary shares $ 237 $ (237) $ — Class B ordinary shares $ 575 $ — $ 575 Additional paid-in capital $ 5,489,003 $ (5,489,003) $ — Accumulated deficit $ (489,807) $ (17,867,600) $ (18,357,407) Total Shareholders’ Equity (Deficit) $ 5,000,005 $ (23,356,840) $ (18,356,835) Pro Forma Balance Sheet as of August 3, 2021 (audited) Class A ordinary shares subject to possible redemption $ 194,487,690 $ 25,123,620 $ 219,611,310 Class A ordinary shares $ 251 $ (251) $ — Class B ordinary shares $ 549 $ — $ 549 Additional paid-in capital $ 5,530,795 $ (5,530,795) $ — Accumulated deficit $ (531,593) $ (19,592,574) $ (20,124,167) Total Shareholders’ Equity (Deficit) $ 5,000,002 $ (25,123,620) $ (20,123,618) |
ORGANIZATION AND BUSINESS BAC_2
ORGANIZATION AND BUSINESS BACKGROUND (Details) | Aug. 19, 2021USD ($)$ / sharesshares | Aug. 03, 2021USD ($)$ / sharesshares | Sep. 30, 2021USD ($)$ / shares |
Subsidiary, Sale of Stock [Line Items] | |||
Condition for future business combination number of businesses minimum | 1 | ||
Gross proceeds from sale of Warrants | $ 6,392,228 | ||
Condition for future business combination use of proceeds percentage | 80 | ||
Condition for future business combination threshold Percentage Ownership | 50 | ||
Minimum Net Tangible Assets Upon Consummation Of Business Combinations | $ 5,000,001 | ||
Redemption limit percentage without prior consent | 15 | ||
Obligation to redeem Public Shares if entity does not complete a Business Combination (as a percent) | 100.00% | ||
Threshold period from closing of public offering the company is obligated to complete business combination | 24 months | ||
Threshold Business Days For Redemption Of Public Share | 10 days | ||
Maximum Allowed Dissolution Expenses | $ 100,000 | ||
Cash | 1,006,126 | ||
Working Capital | $ 413,211 | ||
Initial Public Offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units issued | shares | 20,000,000 | ||
Issue price per share | $ / shares | $ 10 | $ 10 | |
Gross proceeds from sale of Units | $ 200,000,000 | ||
Private Placement | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of warrants to be issued | shares | 261,485 | 4,000,000 | |
Warrants issue price | $ / shares | $ 1.50 | $ 1.50 | |
Gross proceeds from sale of Warrants | $ 392,228 | $ 6,000,000 | |
Over-allotment option | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units issued | shares | 1,961,131 | ||
Issue price per share | $ / shares | $ 10 | ||
Gross proceeds from sale of Units | $ 19,611,310 | ||
Underwriting option period | 45 days | ||
Maximum additional Units to be purchased | shares | 3,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | Aug. 19, 2021 | Aug. 03, 2021 | Sep. 30, 2021 |
Cash equivalents | $ 1,006,126 | ||
Unrecognized tax benefits accrued for interest and penalties | 0 | ||
Cash and marketable securities held in trust account | $ 219,613,318 | ||
Initial Public Offering | |||
Offering costs | $ 11,761,739 | ||
Underwriting fee | 4,000,000 | ||
Deferred underwriting fee | 7,000,000 | ||
Other offering costs | 761,739 | ||
Offering costs included In accumulated deficit | 477,711 | ||
Offering costs included in additional paid-in capital | $ 11,284,028 | ||
Number of units issued | 20,000,000 | ||
Gross proceeds from sale of Units | $ 200,000,000 | ||
Over-allotment option | |||
Offering costs | $ 1,078,624 | ||
Underwriting fee | 392,228 | ||
Deferred underwriting fee | 686,396 | ||
Offering costs included In accumulated deficit | 41,786 | ||
Offering costs included in additional paid-in capital | $ 1,036,838 | ||
Number of units issued | 1,961,131 | ||
Gross proceeds from sale of Units | $ 19,611,310 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Income Per Ordinary Share (Details) - USD ($) | 3 Months Ended | 7 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Class A Common Stock Subject to Redemption | ||
Numerator: | ||
Allocation of net income | $ 3,144,169 | $ 2,355,835 |
Denominator: | ||
Weighted-average shares outstanding, basic | 13,594,936 | 6,197,691 |
Weighted-average shares outstanding, diluted | 13,594,936 | 6,197,691 |
Basic net income (loss) per share | $ 0.23 | $ 0.38 |
Diluted net income (loss) per share | $ 0.23 | $ 0.38 |
Class B Common Stock | ||
Numerator: | ||
Allocation of net income | $ 1,302,059 | $ 2,079,140 |
Denominator: | ||
Weighted-average shares outstanding, basic | 5,629,916 | 5,469,765 |
Weighted-average shares outstanding, diluted | 5,629,916 | 5,469,765 |
Basic net income (loss) per share | $ 0.23 | $ 0.38 |
Diluted net income (loss) per share | $ 0.23 | $ 0.38 |
INITIAL PUBLIC OFFERING (Detail
INITIAL PUBLIC OFFERING (Details) - USD ($) | Aug. 19, 2021 | Aug. 03, 2021 | Sep. 30, 2021 |
Initial Public Offering | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units issued | 20,000,000 | ||
Purchase price, per unit | $ 10 | $ 10 | |
Number of shares in a unit | 1 | ||
IPO proceeds held in Trust account, Per unit | $ 10 | ||
Maturity term of U.S. government securities | 180 days | ||
Initial Public Offering | Public Warrants | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of warrants in a unit | 0.33 | ||
Number of shares issuable per warrant | 1 | ||
Exercise price of warrants | $ 11.50 | ||
Over-allotment option | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units issued | 1,961,131 | ||
Purchase price, per unit | $ 10 | ||
Gross proceeds | $ 19,611,310 | ||
Private Placement | Private Placement Warrants | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of units issued | 261,485 | ||
Gross proceeds | $ 392,228 |
PRIVATE PLACEMENT (Details)
PRIVATE PLACEMENT (Details) - USD ($) | Aug. 19, 2021 | Aug. 03, 2021 | Sep. 30, 2021 |
Subsidiary, Sale of Stock [Line Items] | |||
Gross proceeds from sale of Warrants | $ 6,392,228 | ||
Private Placement | |||
Subsidiary, Sale of Stock [Line Items] | |||
Number of warrants to be issued | 261,485 | 4,000,000 | |
Warrants issue price | $ 1.50 | $ 1.50 | |
Gross proceeds from sale of Warrants | $ 392,228 | $ 6,000,000 |
RELATED PARTY TRANSACTIONS - Fo
RELATED PARTY TRANSACTIONS - Founder Shares (Details) | Aug. 16, 2021shares | Mar. 31, 2021USD ($)shares | Mar. 31, 2021USD ($)shares | Sep. 30, 2021D$ / sharesshares |
Related Party Transaction [Line Items] | ||||
Aggregate purchase price | $ | $ 25,000 | |||
Class B Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Common shares, shares issued | 5,490,283 | |||
Common shares, shares outstanding | 5,490,283 | |||
Sponsor | Initial Public Offering | ||||
Related Party Transaction [Line Items] | ||||
Number of shares forfeited by sponsor | 259,717 | |||
Founder Shares | Sponsor | Class B Common Stock | ||||
Related Party Transaction [Line Items] | ||||
Number of shares issued | 5,750,000 | |||
Aggregate purchase price | $ | $ 25,000 | |||
Shares subject to forfeiture | 750,000 | 750,000 | ||
Percentage of issued and outstanding shares after the Initial Public Offering collectively held by initial stockholders | 20.00% | |||
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 consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination | D | 30 | |||
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences | 120 days |
RELATED PARTY TRANSACTIONS - Ad
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) | 7 Months Ended | |
Sep. 30, 2021 | Mar. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Outstanding balance of related party note | $ 84,412 | |
Proceeds from Related Party Debt | 84,412 | |
Working capital loans warrant | ||
Related Party Transaction [Line Items] | ||
Outstanding balance of related party note | 0 | $ 0 |
Promissory Note with Related Party | ||
Related Party Transaction [Line Items] | ||
Maximum borrowing capacity of related party promissory note | $ 300,000 | |
Administrative Support Agreement | ||
Related Party Transaction [Line Items] | ||
Expenses per month | 10,000 | |
Related Party Loans | ||
Related Party Transaction [Line Items] | ||
Loan conversion agreement warrant | $ 1,500,000 | |
Related Party Loans | Working capital loans warrant | ||
Related Party Transaction [Line Items] | ||
Price of warrant | $ 1.50 | |
Advisory Services Agreement | ||
Related Party Transaction [Line Items] | ||
Cash underwriting paid | $ 1,725,443.24 |
SHAREHOLDER'S EQUITY - Preferre
SHAREHOLDER'S EQUITY - Preferred Stock Shares (Details) | Sep. 30, 2021$ / sharesshares |
SHAREHOLDER'S EQUITY | |
Preferred shares, shares authorized | 1,000,000 |
Preferred stock, par value, (per share) | $ / shares | $ 0.0001 |
Preferred shares, shares issued | 0 |
Preferred shares, shares outstanding | 0 |
SHAREHOLDER'S EQUITY - Common S
SHAREHOLDER'S EQUITY - Common Stock Shares (Details) | 7 Months Ended |
Sep. 30, 2021Vote$ / sharesshares | |
Class A Common Stock | |
Class of Stock [Line Items] | |
Common shares, shares authorized (in shares) | 200,000,000 |
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 |
Common shares, votes per share | Vote | 1 |
Common shares, shares issued (in shares) | 0 |
Common shares, shares outstanding (in shares) | 0 |
Class A Common Stock Subject to Redemption | |
Class of Stock [Line Items] | |
Class A common stock subject to possible redemption, outstanding (in shares) | 21,961,131 |
Class B Common Stock | |
Class of Stock [Line Items] | |
Common shares, shares authorized (in shares) | 20,000,000 |
Common shares, par value (in dollars per share) | $ / shares | $ 0.0001 |
Common shares, shares issued (in shares) | 5,490,283 |
Common shares, shares outstanding (in shares) | 5,490,283 |
Class of Warrant or Right, Adjustment of Redemption Price of Warrants or Rights, Percent, Based On Market Value And Newly Issued Price 1 | 20.00% |
Ratio to be applied to the stock in the conversion | 20 |
Common stock subject to redemption | |
Class of Stock [Line Items] | |
Common shares, shares issued (in shares) | 21,961,131 |
WARRANTS LIABILITIES (Details)
WARRANTS LIABILITIES (Details) | 7 Months Ended |
Sep. 30, 2021D$ / sharesshares | |
Initial Public Offering | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $10.00 | |
Class of Stock [Line Items] | |
Adjustment of redemption price of stock based on market value and newly issued price (as a percent) | 180.00% |
Public Warrants | |
Class of Stock [Line Items] | |
Public Warrants exercisable term from the closing of the initial public offering | 12 months |
Minimum threshold written notice period for redemption of public warrants | 30 days |
Number of warrants outstanding | shares | 7,320,377 |
Public Warrants | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00 | |
Class of Stock [Line Items] | |
Minimum threshold written notice period for redemption of public warrants | 30 days |
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 |
Redemption price per public warrant (in dollars per share) | $ 0.01 |
Threshold trading days for redemption of public warrants | D | 20 |
Threshold consecutive trading days for redemption of public warrants | D | 30 |
Threshold number of business days before sending notice of redemption to warrant holders | D | 3 |
Public Warrants | Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $10.00 | |
Class of Stock [Line Items] | |
Minimum threshold written notice period for redemption of public warrants | 30 days |
Stock price trigger for redemption of public warrants (in dollars per share) | $ 10 |
Redemption price per public warrant (in dollars per share) | 0.10 |
Public Warrants | Redemption of Warrants When the Price per Class A Ordinary Share is Less Than $18.00 | |
Class of Stock [Line Items] | |
Stock price trigger for redemption of public warrants (in dollars per share) | 18 |
Public Warrants | Class A Common Stock | |
Class of Stock [Line Items] | |
Stock price trigger for redemption of public warrants (in dollars per share) | $ 18 |
Threshold consecutive trading days for redemption of public warrants | D | 20 |
Share price | $ 9.20 |
Percentage of gross proceeds on total equity proceeds | 60.00% |
Adjustment of exercise price of warrants based on market value and newly issued price (as a percent) | 115.00% |
Private Placement Warrants | |
Class of Stock [Line Items] | |
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination | 30 days |
Number of warrants outstanding | shares | 4,261,485 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Aug. 19, 2021 | Aug. 03, 2021 | Sep. 30, 2021 |
Commitments and Contingencies [Line Items] | |||
Underwriting cash discount per unit | $ 0.20 | ||
Underwriter cash discount | $ 4,392,226 | ||
Deferred Fee Per Unit | $ 0.35 | ||
Deferred underwriting fee payable | $ 7,686,396 | ||
Over-allotment option | |||
Commitments and Contingencies [Line Items] | |||
Number of units issued | 1,961,131 | ||
Underwriting option period | 45 days | ||
Maximum additional Units to be purchased | 3,000,000 | ||
Issue price per share | $ 10 | ||
Gross proceeds from sale of Units | $ 19,611,310 |
RECURRING FAIR VALUE MEASUREM_3
RECURRING FAIR VALUE MEASUREMENTS (Details) | Sep. 30, 2021USD ($) |
FAIR VALUE MEASUREMENTS. | |
Warrant liability | $ 8,135,002 |
RECURRING FAIR VALUE MEASUREM_4
RECURRING FAIR VALUE MEASUREMENTS - Fair value hierarchy the Company's assets and liabilities (Details) - Recurring | Sep. 30, 2021USD ($) |
Level 1 | |
Assets. | |
Cash and marketable securities held in trust account | $ 219,613,318 |
Level 1 | Public Warrants | |
Liabilities. | |
Warrants | 5,124,264 |
Level 3 | Private Placement Warrants | |
Liabilities. | |
Warrants | $ 3,010,738 |
RECURRING FAIR VALUE MEASUREM_5
RECURRING FAIR VALUE MEASUREMENTS - Changes in the fair value of the Private Warrants and Public Warrants (Details) - USD ($) | 1 Months Ended | |
Sep. 30, 2021 | Aug. 19, 2021 | |
Public Warrants | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value as of beginning | $ 8,606,567 | $ 7,838,000 |
Transfer out of Level 3 | (8,606,567) | |
Change in fair value | 768,567 | |
Fair Value as of ending | 8,606,567 | |
Private Placement Warrants | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair Value as of beginning | 5,081,820 | 4,770,000 |
Change in fair value | (2,071,081) | 311,820 |
Fair Value as of ending | $ 3,010,738 | $ 5,081,820 |
RECURRING FAIR VALUE MEASUREM_6
RECURRING FAIR VALUE MEASUREMENTS - Monte Carlo formula model (Details) - Private Placement Warrants | Sep. 30, 2021Y |
Stock price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 9.70 |
Exercise price | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 11.50 |
Risk-free rate | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 1.12 |
Expected term to merger | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 0.83 |
Expected term of warrants | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 5.83 |
Estimated probability of a successful merger | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 90 |
Callable | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 0 |
Volatility | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Warrants, measurement input | 12.72 |
RESTATEMENT OF PREVIOUSLY ISS_3
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (Details) - USD ($) | Sep. 30, 2021 | Aug. 03, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Mar. 10, 2021 |
CONDENSED BALANCE SHEET | |||||
Class A ordinary shares subject to possible redemption | $ 219,613,318 | ||||
Ordinary shares | |||||
Accumulated deficit | (15,159,606) | ||||
Total Shareholders' Equity (Deficit) | (15,159,057) | $ 13,748 | $ 13,931 | $ 0 | |
Class B Common Stock | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | $ 549 | ||||
As Restated | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Minimum net tangible assets | $ 5,000,001 | ||||
CONDENSED BALANCE SHEET | |||||
Class A ordinary shares subject to possible redemption | 200,000,000 | ||||
Accumulated deficit | (18,357,407) | ||||
Total Shareholders' Equity (Deficit) | (18,356,835) | ||||
As Restated | Pro Forma | |||||
CONDENSED BALANCE SHEET | |||||
Class A ordinary shares subject to possible redemption | 219,611,310 | ||||
Accumulated deficit | (20,124,167) | ||||
Total Shareholders' Equity (Deficit) | (20,123,618) | ||||
As Restated | Class B Common Stock | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | 575 | ||||
As Restated | Class B Common Stock | Pro Forma | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | 549 | ||||
As Previously Reported | As Restated | |||||
CONDENSED BALANCE SHEET | |||||
Class A ordinary shares subject to possible redemption | 176,643,160 | ||||
Additional paid-in capital | 5,489,003 | ||||
Accumulated deficit | (489,807) | ||||
Total Shareholders' Equity (Deficit) | 5,000,005 | ||||
As Previously Reported | As Restated | Pro Forma | |||||
CONDENSED BALANCE SHEET | |||||
Class A ordinary shares subject to possible redemption | 194,487,690 | ||||
Additional paid-in capital | 5,530,795 | ||||
Accumulated deficit | (531,593) | ||||
Total Shareholders' Equity (Deficit) | 5,000,002 | ||||
As Previously Reported | As Restated | Class A Common Stock | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | 237 | ||||
As Previously Reported | As Restated | Class A Common Stock | Pro Forma | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | 251 | ||||
As Previously Reported | As Restated | Class B Common Stock | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | 575 | ||||
As Previously Reported | As Restated | Class B Common Stock | Pro Forma | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | 549 | ||||
Adjustment | As Restated | |||||
CONDENSED BALANCE SHEET | |||||
Class A ordinary shares subject to possible redemption | 23,356,840 | ||||
Additional paid-in capital | (5,489,003) | ||||
Accumulated deficit | (17,867,600) | ||||
Total Shareholders' Equity (Deficit) | (23,356,840) | ||||
Adjustment | As Restated | Pro Forma | |||||
CONDENSED BALANCE SHEET | |||||
Class A ordinary shares subject to possible redemption | 25,123,620 | ||||
Additional paid-in capital | (5,530,795) | ||||
Accumulated deficit | (19,592,574) | ||||
Total Shareholders' Equity (Deficit) | (25,123,620) | ||||
Adjustment | As Restated | Class A Common Stock | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | (237) | ||||
Adjustment | As Restated | Class A Common Stock | Pro Forma | |||||
CONDENSED BALANCE SHEET | |||||
Ordinary shares | $ (251) |