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 months ended, we had a net loss of
As a result of the restatement described in Note 2 "Restatement of Previously
Issued Financial Statements" to the financial statements included herein, we
classify the warrants issued in connection with our initial public offering and
private placement as liabilities at their fair value and adjust the warrant
instruments to fair value at each reporting period. These liabilities are
subject to remeasurement at each balance sheet date until exercised, and any
change in fair value is recognized in our statement of operations. As part of
the reclassification to warrant liability, we reclassed 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
21
The Company does not believe it will need to raise additional funds in order to meet the expenditures required for operating its business. However, if the Company's estimates of the costs of undertaking in-depth due diligence and negotiating business combination is less than the actual amount necessary to do so, the Company may have insufficient funds available to operate its business prior to the business combination. Moreover, the Company will need to raise additional capital through loans from its sponsor, officers, directors, or 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.
As a result of the restatement described in Note 2 "Restatement of Previously Issued Financial Statements" to the financial statements included herein, we classify the warrants issued in connection with our initial public offering and private placement as liabilities at their fair value and adjust the warrant instruments to fair value at each reporting period. These liabilities are subject to remeasurement at each balance sheet date until exercised, and any change in fair value is recognized in our statement of operations.
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, as a result of the restatement
described in Note 2 "Restatement of Previously Issued Financial Statements" to
the financial statements included herein, 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. The fair value of warrants issued in
connection with our initial public offering and private placement has been
estimated using
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