Results of Operations and Known Trends or Future Events
We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities, those necessary to prepare for our initial public offering and identifying a target company for our initial business combination. We do not expect to generate any operating revenues until after completion of our initial business combination. We generate non-operating income in the form of interest income on cash and cash equivalents held in the trust account. We incur expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.
For the three and nine months ended
We reclassified a portion of the offering costs associated with the IPO
originally charged to stockholders' equity, to an expense in the statement of
operations in the amount of
Liquidity and Capital Resources
As of
Through
The Company anticipates that the
The Company can raise additional capital through Working Capital Loans (as defined in Note 6 to our financial statements) from the initial stockholders, the Company's officers, directors, or their respective affiliates (which is described in Note 6 to our financial statements) or through loans from third parties. None of the sponsor, officers or directors are under any obligation to advance funds to, or to invest in, the Company. If the Company is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include, but not necessarily be limited to, curtailing operations, suspending the pursuit of its business plan, and reducing overhead expenses. The Company cannot provide any assurance that new financing will be available to it on commercially acceptable terms, if at all. These conditions raise substantial doubt about the Company's ability to continue as a going concern for a reasonable period of time, which is considered to be one year from the issuance date of the financial statements.
18
Derivative Warrant Liabilities
We do not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. We evaluate all of our financial instruments, including issued stock purchase warrants, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to ASC 480 and ASC 815-15. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is reassessed at the end of each reporting period.
We issued an aggregate of 17,433,333 warrants in connection with our initial
public offering and private placement, which, are recognized as derivative
liabilities in accordance with ASC 815-40. Accordingly, we recognize the
warrants as liabilities at fair value and adjust the instruments to fair value
at each reporting period. The liabilities are subject to remeasurement at each
balance sheet date until exercised, and any change in fair value is recognized
in the Company's statement of operations. At IPO, the Company utilized a Monte
Carlo simulation model to determine the initial value of the public warrants and
private warrants. At
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