0001104659-20-123711.txt : 20201112 0001104659-20-123711.hdr.sgml : 20201112 20201110191115 ACCESSION NUMBER: 0001104659-20-123711 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 44 CONFORMED PERIOD OF REPORT: 20200930 FILED AS OF DATE: 20201112 DATE AS OF CHANGE: 20201110 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FG New America Acquisition Corp. CENTRAL INDEX KEY: 0001818502 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 851648122 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-39550 FILM NUMBER: 201302562 BUSINESS ADDRESS: STREET 1: 105 S. MAPLE STREET CITY: ITASCA STATE: IL ZIP: 60143 BUSINESS PHONE: (847) 791-6817 MAIL ADDRESS: STREET 1: 105 S. MAPLE STREET CITY: ITASCA STATE: IL ZIP: 60143 10-Q 1 tm2035348d1_10q.htm FORM 10-Q

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2020

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from to

 

Commission File No. 001-39550

 

FG NEW AMERICA ACQUISITION CORP.

(Exact name of registrant as specified in its charter)

 

Delaware   82-1648122
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)

 

105 S. Maple Street, Itasca, Illinois 60143

(Address of Principal Executive Offices, including zip code)

 

(847) 791-6817

(Registrant’s telephone number, including area code)

 

N/A

(Former name, former address and former fiscal year, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which
registered
Units, each consisting of one share of Class A common stock and one-half of one redeemable warrant   FGNA.U   The New York Stock Exchange
Class A common stock, par value $0.0001 per share   FGNA   The New York Stock Exchange
Warrants, each exercisable for one share of Class A common stock   FGNA WS   The New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¨ No x

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x  No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

  ¨ Large accelerated filer ¨ Accelerated filer
  x Non-accelerated filer x Smaller reporting company
    x Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes x  No ¨

 

As of November 10, 2020, there were 24,356,375 shares of Class A common stock, par value $0.0001, and 5,943,750 shares of Class B common stock, $0.0001 par value, issued and outstanding.

 

 

 

 

 

 

FG NEW AMERICA ACQUISITION CORP.
Quarterly Report on Form 10-Q

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION 1
Item 1. Financial Statements 1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 14
Item 3. Quantitative and Qualitative Disclosures about Market Risk 18
Item 4. Controls and Procedures 18
PART II - OTHER INFORMATION 19
Item 1. Legal Proceedings 19
Item 1A. Risk Factors 19
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 19
Item 3. Defaults Upon Senior Securities 20
Item 4. Mine Safety Disclosures 20
Item 5. Other Information 21
Item 6. Exhibits 21
SIGNATURES 23

 

  i 

 

 

PART I - FINANCIAL INFORMATION

 

Item 1.Financial Statements.

 

FG New America Acquisition Corp.

Balance Sheet

September 30, 2020

(Unaudited) 

 

ASSETS    
Current assets     
Deferred offering costs  $1,608,028 
Other deferred expenses   323,237 
Cash   27,102 
Total current assets   1,958,367 
TOTAL ASSETS  $1,958,367 
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
Current liabilities     
Accrued offering costs  $1,505,130 
Accounts payable   324,237 
Notes payable   100,000 
Total current liabilities   1,929,367 
TOTAL LIABILITIES  $1,929,367 
      
STOCKHOLDERS' EQUITY     
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding  $- 
Class A common stock, $0.0001 par value; 380,000,000 shares authorized; none issued and outstanding   - 
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 6,468,750 shares issued and outstanding   647 
Additional paid-in capital   29,353 
Accumulated deficit   (1,000)
Total Stockholders' Equity   29,000 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $1,958,367 

 

The accompanying notes are an integral part of these financial statements.

 

 1 

 

 

FG New America Acquisition Corp.

Statement of Operations

(Unaudited) 

 

   For the three
months ended
September 30,
2020
   For the period
from June 24,
2020
(inception) to
September 30,
2020
 
Formation costs   1,000    1,000 
General and administrative expenses   -    - 
Net loss   (1,000)   (1,000)
           
Weighted average common shares outstanding          
Basic and diluted (1)   4,891,304    4,545,455 
           
Basic and diluted net loss per share   (0.0002)   (0.0002)

 

(1) Excludes 843,750 shares that are subject to forfeiture to the extent underwriters' over-allotment option is not exercised in full. Upon partial exercise of over-allotment option by underwriters on October 14, 2020, 525,000 shares of Class B common stock were actually forfeited.

 

The accompanying notes are an integral part of these financial statements.

 

 2 

 

 

FG New America Acquisition Corp.

 

Statement of Changes in Stockholders’ Equity

For the period from June 24, 2020 (inception) to September 30, 2020

(Unaudited) 

 

   Class B             
   Common   Common   Additional       Total 
   Stock   Stock   Paid-in   Accumulated   Stockholders' 
   Shares   Amount   Capital   Deficit   Equity 
Balance at June 24, 2020 (inception) (1)   -   $-   $-   $-   $- 
Common shares issued to initial shareholder (2)   6,468,750    647    29,353    -    30,000 
Net loss   -    -    -    (1,000)   (1,000)
Balance at September 30, 2020   6,468,750   $647   $29,353   $(1,000)  $29,000 

 

(1) Same balances as of July 1, 2020.

(2) Includes 525,000 shares of Class B common stock that were forfeited upon partial exercise of over-allotment option by the underwriters on October 14, 2020.

 

The accompanying notes are an integral part of these financial statements.

 

 3 

 

 

FG New America Acquisition Corp.

 

Statement of Cash Flows

For the period from June 24, 2020 (inception) to September 30, 2020

(Unaudited) 

 

Cash flows from operating activities     
Net loss  $(1,000)
Adjustments to reconcile net loss to net cash used in operating activities:     
Changes in operating assets and liabilities:     
Other deferred expenses   (323,237)
Accounts payable   324,237 
Net cash provided by operating activities  $- 
      
Cash flows from financing activities     
Proceeds from promissory note   100,000 
Proceeds from sale of shares of common stock to initial shareholder  $30,000 
Payment of offering costs   (102,898)
Net Cash provided by financing activities  $27,102 
Net increase in cash  $27,102 
Cash at beginning of period   - 
Cash at end of period  $27,102 
      
Supplemental diclosure for non-cash financing activities     
Accrual of offering costs  $1,505,130 

 

The accompanying notes are an integral part of these financial statements.

 

 4 

 

 

FG New America Acquisition Corp.

Notes to Financial Statements

September 30, 2020 (Unaudited)

 

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

 

FG New America Acquisition Corp. (the “Company”) is a blank check company incorporated in Delaware on June 24, 2020. The Company was formed for the purpose of merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (“Business Combination”).

 

Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to focus on businesses in the financial technology industry. 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, 2020, the Company had not yet commenced any operations. All activity through September 30, 2020 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), which is described below. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate nonoperating 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 September 29, 2020. On October 2, 2020 the Company consummated the Initial Public Offering of 22,500,000 units at $10.00 per unit, (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”) generating gross proceeds of $225,000,000, which is discussed in Note 3. In connection with the Initial Public Offering, the underwriters were granted an option to purchase up to an additional 3,375,000 Units to cover over-allotments, if any. On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units, generating gross proceeds of $12,750,000. In connection with the partial exercise of the over-allotment option by the underwriters, the Company’s sponsor, FG New America Investors LLC (the “Sponsor”), forfeited 525,000 shares of Class B common stock on October 14, 2020.

 

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of i) 3,848,750 $11.50 exercise price warrants (the “$11.50 Private Warrants”) at a price of $1.00 per $11.50 Private Warrant, ii) the sale of 1,512,500 $15.00 exercise price warrants (the “$15 Private Warrants”, and together with $11.50 Private Warrants the “Private Warrants”) at a price of $0.10 per $15 Private Warrant, and iii) the sale of 462,500 units at $10.00 per unit (the “Private Units”) in a private placement to the Sponsor. Each Private Unit consists of one share of Class A common stock and one-half of one non-redeemable warrant (“Private Unit Warrant”). Each whole Private Unit Warrant will entitle the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share.

 

Initial Public Offering costs amounted to $1,608,028 consisting of $1,000,000 of underwriting fees, and $608,028 of other offering costs. These costs are deferred as of September 30, 2020. In addition, underwriters also received an aggregate of 118,875 Units, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account (as defined below). In addition to the offering costs, after the closing of the Initial Public Offering on Oct 2, 2020 the Company also paid $300,037 for directors and officers insurance coverage.

 

Following the closing of the Initial Public Offering and the private placements of Private Warrants and Private Units on October 2, 2020, as well as the closing of the over-allotment option on October 14, 2020, an amount of $243,375,000 from the net proceeds of the sale of Units in the Initial Public Offering (including proceeds from the partial exercise of the over-allotment option) and the sale of Private Warrants and Private Units was placed in a trust account (“Trust Account”) that will be 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 185 days or less, or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the funds in the Trust Account to the Company’s stockholders, as described below.

 

 5 

 

 

The Units are listed on the New York Stock Exchange (“NYSE”). The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and sale of the Private Warrants and Private Units, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. NYSE rules provide that the Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net assets held in the Trust Account (net of amounts disbursed to management for working capital purposes). The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target 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”). There is no assurance that the Company will be able to successfully effect a Business Combination.

 

The Company will provide its stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. In connection with a proposed Business Combination, the Company may seek stockholder approval of a Business Combination at a meeting called for such purpose at which stockholders may seek to redeem their shares, regardless of whether they vote for or against the proposed Business Combination.

 

The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 upon or immediately prior to such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the outstanding shares voted are voted in favor of the Business Combination.

 

If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Company’s amended and restated certificate of incorporation (the “Charter”) provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder 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 seeking redemption rights with respect to 15% or more of the Public Shares without the Company’s prior written consent.

 

The holders of Public Shares are entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (including any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. Following the consummation of the Initial Public Offering on Oct 2, 2020, a portion of the Public Shares will be recorded at redemption value and classified as temporary equity, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity” in order for the Company to maintain net tangible assets of at least $5,000,001.

 

If a stockholder vote is not required and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Charter, offer such redemption pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination.

 

 6 

 

 

The Sponsor, officers, directors and advisors (the “Initial Stockholders”) have agreed (a) to vote their Founder Shares (as defined in Note 5) as well as any shares of Class A common stock underlying the Private Units, and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination, (b) not to propose an amendment to the Charter with respect to the Company’s pre-Business Combination activities prior to the consummation of a Business Combination unless the Company provides dissenting public stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment; (c) not to redeem any shares (including the Founder Shares as well as any shares of Class A common stock underlying the Private Units) into the right to receive cash from the Trust Account in connection with a stockholder vote to approve a Business Combination (or to sell any shares in a tender offer in connection with a Business Combination if the Company does not seek stockholder approval in connection therewith) or a vote to amend the provisions of the Charter relating to stockholders’ rights of pre-Business Combination activity and (d) that the Founder Shares, the Private Units and Private Warrants (including underlying securities) shall not participate in any liquidating distributions upon winding up if a Business Combination is not consummated. However, the Initial Stockholders will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares purchased during or after the Initial Public Offering if the Company fails to complete its Business Combination.

 

The Company has until 24 months from the closing of the Initial Public Offering to consummate a Business Combination (as such period may be extended pursuant to the Charter, 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 no more than ten business days thereafter, redeem 100% of the outstanding Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned (net of taxes payable and less interest to pay dissolution expenses up to $100,000), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the Company’s board of directors, proceed to commence a voluntary liquidation and thereby a formal dissolution of the Company, subject in each case to its obligations to provide for claims of creditors and the requirements of applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete its initial Business Combination within the Combination Period.

 

The Sponsor has agreed that it will be liable to the Company, if and to the extent any claims by a vendor 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 amounts in the Trust Account to below $10.25 per share (but only $10.00 per share for the Units sold pursuant to the underwriters’ over-allotment option), except as to any 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 underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). 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, prospective target businesses or 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.

 

 7 

 

 

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation

 

The accompanying financial statements are presented in U.S. Dollars and conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC.

 

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 auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

 

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s 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 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 periods.

 

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.

 

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 did not have any cash equivalents as of September 30, 2020.

 

 8 

 

 

Deferred Offering costs

 

Deferred offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the Initial Public Offering and that are charged to stockholders equity upon the completion of the Initial Public Offering. As of September 30, 2020, deferred offering costs amounted to $1,608,028 (including $1,000,000 of underwriting fees), which were charged to stockholders’ equity upon the completion of Initial Public Offering on October 2, 2020. In addition, underwriters also received an aggregate of 118,875 Units at closing of the Initial Public Offering and the over-allotment option, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account.

 

Income taxes

 

The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits as of September 30, 2020 and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

 

Net loss per share

 

Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period, excluding shares of common stock subject to forfeiture by the Initial Stockholders. As of September 30, 2020 weighted average shares were reduced for the effect of an aggregate of 843,750 shares that were subject to forfeiture by Initial Stockholders if the over-allotment option is not exercised by the underwriters (see Note 5). In connection with the partial exercise of the over-allotment option by the underwriters, the Sponsor actually forfeited 525,000 shares of Class B common stock on October 14, 2020. At September 30, 2020, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share in the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the period presented.

 

Fair value of financial instruments

 

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

 

 9 

 

 

Recently issued accounting standards

 

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

 

NOTE 3. INITIAL PUBLIC OFFERING

 

The registration statement for the Company’s Initial Public Offering was declared effective on September 29, 2020. On October 2, 2020, the Company consummated the Initial Public Offering of 22,500,000 Units at a purchase price of $10.00 per Unit generating gross proceeds of $225,000,000 from the sale of the Units. Each Unit consists of one share of Class A common stock and one-half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant will entitle the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (see Note 7). On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units, generating additional gross proceeds of $12,750,000.

 

NOTE 4. PRIVATE PLACEMENT

 

On October 2, 2020 simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 3,848,750 $11.50 Private Warrants at a price of $1.00 per $11.50 Private Warrant, 1,512,500 $15 Private Warrants at a price of $0.10 per $15 Private Warrant, and 462,500 Private Units at a price of $10.00 per Private Unit, in each case, from the Company in a private placement. The aggregate gross proceeds from the sale of Private Warrants and Private Units were $8,625,000, part of which was placed in the Trust Account along with the Initial Public Offering gross proceeds. If the Company does not complete a Business Combination within the Combination Period, the Private Warrants and the Private Unit Warrants will expire worthless. The Private Warrants and the Private Unit Warrants are non-redeemable for cash and exercisable on a cashless basis so long as they are held by the Initial Stockholders or the permitted transferees. Each Private Warrant and Private Unit Warrant will entitle the holder to purchase one share of common stock at its respective exercise price.

 

Also, simultaneously with the closing of the Initial Public Offering on October 2, 2020, the Company completed the private placement of an aggregate of 112,500 Units to the underwriters. In connection with the exercise of underwriters’ over-allotment option on October 14, 2020, the Company also issued an additional 6,375 Units to the underwriters for an aggregate of 118,875 Units.

 

NOTE 5. RELATED PARTY TRANSACTIONS

 

Founder Shares

 

On July 13, 2020, the Company issued an aggregate of 6,468,750 shares of Class B common stock (the “Founder Shares”) to the Initial Stockholders for an aggregate purchase price of $30,000 in cash. On August 7, 2020, the Sponsor transferred an aggregate of 1,250,000 Founder Shares to members of the Company’s management and board of directors, resulting in the Sponsor holding 5,218,750 Founder Shares. As of September 30, 2020, the Founder Shares included an aggregate of up to 843,750 shares subject to forfeiture by the Initial Stockholders to the extent that the underwriters’ over-allotment option is not exercised in full or in part, so that the Initial Stockholders will collectively own 20% of the Company’s issued and outstanding shares after the Initial Public Offering (excluding the securities underlying the Private Warrants, the Private Units and the Units issued to underwriters). In connection with the partial exercise of the over-allotment option by the underwriters on October 14, 2020, the Sponsor forfeited 525,000 Founder Shares on October 14, 2020.

 

The Initial Stockholders have agreed not to transfer, assign or sell any of the Founder Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) twelve months after the date of the consummation of a Business Combination, or (ii) the date on which the closing price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing after a Business Combination, with respect to the remaining 50% of the Founder Shares, 12 months after the date of the consummation of a Business Combination, or earlier, in each case, if, subsequent to a Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of the Company’s stockholders having the right to exchange their Public Shares for cash, securities or other property.

 

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Promissory Note

 

On July 13, 2020, the Company issued a non-interest bearing unsecured Promissory Note to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $300,000 from time to time. As of September 30, 2020, there was $100,000 balance outstanding under the Promissory Note. The Promissory Note was fully paid off at the completion of the Initial Public Offering on October 2, 2020.

 

Administrative Services Agreement

 

The Company entered into an administrative services agreement (the “Administrative Services Agreement”) with the Sponsor on September 29, 2020 whereby the Sponsor will perform certain services for the Company for a monthly fee of $10,000.

 

NOTE 6. COMMITMENTS AND CONTINGENCIES

 

Registration Rights

 

Pursuant to a registration rights agreement entered into on September 29, 2020, the holders of the Founder Shares, the Private Units and Private Warrants (and their underlying securities) are entitled to registration rights. The Company will bear the expenses incurred in connection with the filing of any registration statements pursuant to such registration rights.

 

Underwriting Agreement

 

The Company granted the underwriters a 45-day option to purchase up to 3,375,000 additional Units to cover over-allotments at the Initial Public Offering price. On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units.

 

Subject to certain conditions, on September 29, 2020 the Company granted underwriters for a period beginning on the closing of the Initial Public Offering and ending on the later of 24 months after the closing of the Initial Public Offering and 12 months after the consummation of our Business Combination, a right of first refusal to act as (i) exclusive financial advisor in connection with all of the Company’s proposed business combinations for a fee of up to 3.5% of the proceeds of the Initial Public Offering (subject to the Company’s right to allocate up to 50% of such fee to another financial institution or extinguish such amount in Company’s sole discretion), and (ii) sole investment banker, sole book-runner and/or sole placement agent, at underwriters’ sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings, during such period for the Company or any successor to it or any of its subsidiaries, on terms agreed to by both the Company and underwriters in good faith.

 

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NOTE 7. STOCKHOLDERS’ EQUITY

 

Preferred Stock — The Company is authorized to issue 1,000,000 shares of preferred stock, par value $0.0001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, 2020, there were no shares of preferred stock issued or outstanding.

 

Class A Common Stock — The Company is authorized to issue 380,000,000 shares of Class A common stock, par value $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each share. As of September 30, 2020, there were no shares of Class A common stock issued and outstanding. Following the closing of the Initial Public Offering and the private placement of Private Units on October 2, 2020, as well as the closing of the over-allotment option on October 14, 2020, there were 1,069,181 shares of Class A common stock issued and outstanding, excluding 23,287,194 shares subject to possible redemption.

 

Class B Common Stock — The Company is authorized to issue 20,000,000 shares of Class B common stock, par value $0.0001 per share. On July 13, 2020, the Company issued an aggregate of 6,468,750 shares of Class B common stock as Founder Shares to the Initial Stockholders for an aggregate purchase price of $30,000 in cash. On August 7, 2020, the Sponsor transferred an aggregate of 1,250,000 Founder Shares to members of the Company’s management and board of directors, resulting in the Sponsor holding 5,218,750 Founder Shares. As of September 30, 2020, the Founder Shares included an aggregate of up to 843,750 shares subject to forfeiture by the Initial Stockholders to the extent that the underwriters’ over-allotment is not exercised in full or in part, so that the Initial Stockholders will collectively own 20% of the Company’s issued and outstanding shares after the Initial Public Offering (excluding the securities underlying the Private Warrants, the Private Units and the Units issued to underwriters). In connection with the partial exercise of the over-allotment option by the underwriters on October 14, 2020, the Sponsor forfeited 525,000 Founder Shares on October 14, 2020.

 

Holders of the Company’s Class B common stock are entitled to one vote for each share. With respect to any matter submitted to a vote of the Company’s stockholders, including any vote in connection with the Business Combination, holders of the Class A common stock and holders of the Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders, except as required by law.

 

The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the Business Combination, or earlier at the option of the holders, on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, and subject to further adjustment as described herein. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of the Business Combination, including pursuant to a specified future issuance, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the then-outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance, including a specified future issuance) such that: i) the numerator shall be equal to the sum of (A) 25% of all shares of Class A common stock issued or issuable (upon the conversion or exercise of any equity-linked securities or otherwise) by the Company, related to or in connection with the consummation of the Business Combination (excluding any securities issued or issuable to any seller in the Business Combination) plus (B) the number of shares of Class B common stock issued and outstanding prior to the closing of the Business Combination; and ii) the denominator shall be the number of shares of Class B common stock issued and outstanding prior to the closing of the Business Combination.

 

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Warrants — Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. Each whole Public Warrant will entitle the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share, and will become exercisable on the later of 30 days after the completion of the Business Combination or 12 months from the closing of the Initial Public Offering. The Public Warrants will expire on the fifth anniversary of the completion of the Business Combination, or earlier upon redemption or liquidation. The Company may redeem the Public Warrants i) at a redemption price of $0.01 per warrant, ii) at any time after the Public Warrants become exercisable, iii) upon a minimum of 30 days’ prior written notice of redemption, iv) if, and only if, the last sales price of Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 trading day period commencing after the date the Public Warrants become exercisable and ending three business days before Company sends the notice of redemption, and v) if, and only if, there is a current registration statement in effect with respect to the shares of Class A common stock underlying such Public Warrants at the time of redemption and for the entire 30-day trading period referred to above and continuing each day thereafter until the date of redemption.

 

The $11.50 Private Warrants have terms similar to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the $11.50 Private Warrants are issued as a whole warrant having one common stock underlying each $11.50 Private Warrant (as compared to one-half of one Public Warrant included in each Unit sold in the Initial Public Offering), will be non-redeemable and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, $11.50 Private Warrants and the shares issuable upon the exercise of the $11.50 Private Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.

 

The $15 Private Warrants entitle the holder to purchase one share of Class A common stock at an exercise price of $15.00 per each share, will be exercisable for a period of 10 years from the date of Business Combination, will be non-redeemable, and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, $15 Private Warrants and the shares issuable upon the exercise of the $15 Private Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.

 

The Private Unit Warrants have terms similar to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Unit Warrants are non-redeemable and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, Private Unit Warrants and the shares issuable upon the exercise of the Private Unit Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.

 

The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described above, the warrants will not be adjusted for issuances of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such warrants. Accordingly, the warrants may expire worthless.

 

NOTE 8. SUBSEQUENT EVENTS

 

The registration statement for the Company’s Initial Public Offering was declared effective on September 29, 2020. As discussed above in more detail, On October 2, 2020 the Company consummated the Initial Public Offering of 22,500,000 Units, and issued an additional 1,275,000 Units on October 14, 2020 pursuant to the partial exercise of underwriters’ over-allotment option. Simultaneously with the closing of the Initial Public Offering on October 2, 2020, the Company consummated the sale of Private Warrants and Private Units in a private placement to the Sponsor. In connection with the partial exercise of underwriters’ over-allotment option on October 14, 2020, the Company also issued an additional 6,375 Units to the underwriters for an aggregate of 118,875 Units and the Sponsor forfeited 525,000 Founder Shares.

 

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

References in this report (the “Quarterly Report”) to “we,” “us” or the “Company” refer to FG New America Acquisition Corp. References to our “management” or our “management team” refer to our officers and directors, and references to the “Sponsor” refer to FG New America Investors LLC. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this Quarterly Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

 

Cautionary Note Regarding Forward-Looking Statements

 

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Exchange Act that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, business strategy and the plans and objectives of management for future operations, are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to our final prospectus filed in connection with our Initial Public Offering (as defined below), under Cautionary Note Regarding Forward-Looking Statements and Risk Factors. The Company’s securities filings can be accessed on the EDGAR section of the U.S. Securities and Exchange Commission’s (“SEC”) website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

 

Overview

 

FG New America Acquisition Corp. is a blank check company incorporated in Delaware on June 24, 2020. The Company was formed for the purpose of merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (“Business Combination”).

 

Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to focus on businesses in the financial technology industry. 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, 2020, the Company had not yet commenced any operations. All activity through September 30, 2020 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), which is described below. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate nonoperating 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.

 

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The registration statement for the Company’s Initial Public Offering was declared effective September 29, 2020. On October 2, 2020 the Company consummated the Initial Public Offering of 22,500,000 units at $10.00 per unit, (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”) generating gross proceeds of $225,000,000. In connection with the Initial Public Offering, the underwriters were granted an option to purchase up to an additional 3,375,000 Units to cover over-allotments, if any. On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units, generating gross proceeds of $12,750,000.

 

Initial Public Offering costs amounted to $1,608,028 consisting of $1,000,000 of underwriting fees, and $608,028 of other offering costs. In addition, underwriters also received an aggregate of 118,875 Units, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account (as defined below). In addition to the offering costs, after the closing of the Initial Public Offering on Oct 2, 2020 the Company also paid $300,037 for directors and officers insurance coverage.

 

Simultaneously with the closing of the Initial Public Offering on October 2, 2020, the Company consummated the sale of i) 3,848,750 $11.50 exercise price warrants (the “$11.50 Private Warrants”) at a price of $1.00 per $11.50 Private Warrant, ii) the sale of 1,512,500 $15.00 exercise price warrants (the “$15 Private Warrants”, and together with $11.50 Private Warrants the “Private Warrants”) at a price of $0.10 per $15 Private Warrant, and iii) the sale of 462,500 units at $10.00 per unit (the “Private Units”) in a private placement to the Sponsor. Each Private Unit consist of one share of Class A common stock and one-half of one non-redeemable warrant (“Private Unit Warrant”). Each whole Private Unit Warrant will entitle the holder to purchase one share of common stock at an exercise price of $11.50 per share.

 

Following the closing of the Initial Public Offering and the private placements of Private Warrants and Private Units on October 2, 2020, as well as the closing of the over-allotment option on October 14, 2020, an amount of $243,375,000 from the net proceeds of the sale of Units in the Initial Public Offering (including proceeds from the partial exercise of the over-allotment option) and the sale of Private Warrants and Private Units was placed in a trust account (“Trust Account”) that will be 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 185 days or less, or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a-7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the funds in the Trust Account to the Company’s stockholders.

 

The Units and the underlying shares of Class A common stock and warrants are listed on the New York Stock Exchange (“NYSE”). The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and sale of the Private Warrants and Private Units, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. NYSE rules provide that the Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net assets held in the Trust Account (net of amounts disbursed to management for working capital purposes). The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target 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”). There is no assurance that the Company will be able to successfully effect a Business Combination.

 

The Company will provide its stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. In connection with a proposed Business Combination, the Company may seek stockholder approval of a Business Combination at a meeting called for such purpose at which stockholders may seek to redeem their shares, regardless of whether they vote for or against the proposed Business Combination.

 

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The holders of Public Shares are entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (including any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants.

 

The Sponsor has agreed that it will be liable to the Company, if and to the extent any claims by a vendor 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 amounts in the Trust Account to below $10.25 per share (but only $10.00 per share for the Units sold pursuant to the underwriters’ over-allotment option), except as to any 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 underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act. 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, prospective target businesses or 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.

 

Results of Operations

 

Our entire activity since inception up to September 30, 2020 is related to our formation, the Initial Public Offering, and we will not be generating any operating revenues until the closing and completion of our initial Business Combination, at the earliest. We will generate nonoperating income in the form of interest income from the proceeds derived from the Initial Public Offering. Following the closing of our Initial Public Offering on October 2, 2020, we expect to incur increased expenses as a result of becoming a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

 

For the three months ended September 30, 2020 and for the period from June 24, 2020 (inception) to September 30, 2020, the Company reported a net loss of $1,000, which consist solely of formation cost.

 

Liquidity and Capital Resources

 

As of September 30, 2020, the Company held a cash balance of $27,102. Prior to the Initial Public Offering, our liquidity needs have been satisfied through the $30,000 proceeds received from the Sponsor for purchase of Founder Shares (as defined below), as well as $100,000 loan from Sponsor under a promissory note, pursuant to which the we may borrow up to an aggregate principal amount of $300,000 from time to time. The promissory note was fully paid off at the completion of the Initial Public Offering on October 2, 2020.

 

As discussed above, on October 2, 2020, we consummated the Initial Public Offering of 22,500,000 units, and on October 14, 2020 we consummated the partial exercise by underwriters of the over-allotment option for an additional 1,275,000 Units. From the proceeds of Initial Public Offering and private placement of Private Warrants and Private Units, the Company retained approximately $1,200,000 for working capital needs after payment of expenses related to Initial Public Offering and directors and officers insurance.

 

In order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of our officers and directors may, but are not obligated to, loan us funds as may be required (“Working Capital Loans”). As of September 30, 2020, there were no Working Capital Loans under this arrangement.

 

We do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business. However, if our estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our initial Business Combination. Moreover, we may need to obtain additional financing either to complete our Business Combination or because we become obligated to redeem a significant number of our public shares upon completion of our Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination.

 

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Off-Balance Sheet Arrangement

 

We have no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of September 30, 2020.

 

Contractual Obligations

 

Registration Rights

 

Pursuant to a registration rights agreement entered into on September 29, 2020, the holders of the Founder Shares (as defined below), the Private Units and Private Warrants (and their underlying securities) are entitled to registration rights. The Company will bear the expenses incurred in connection with the filing of any registration statements pursuant to such registration rights.

 

Underwriting Agreement

 

The Company granted the underwriters a 45-day option to purchase up to 3,375,000 additional Units to cover over-allotments at the Initial Public Offering price. On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units.

 

Subject to certain conditions, on September 29, 2020 the we granted underwriters for a period beginning on the closing of the Initial Public Offering and ending on the later of 24 months after the closing of the Initial Public Offering and 12 months after the consummation of our Business Combination, a right of first refusal to act as (i) exclusive financial advisor in connection with all of our proposed business combinations for a fee of up to 3.5% of the proceeds of the Initial Public Offering (subject to our right to allocate up to 50% of such fee to another financial institution or extinguish such amount in our sole discretion), and (ii) sole investment banker, sole book-runner and/or sole placement agent, at underwriters’ sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings, during such period for us or any successor to us or any of our subsidiaries, on terms agreed to by both us and underwriters in good faith.

 

Related Party Transactions

 

Founder Shares

 

On July 13, 2020, we issued an aggregate of 6,468,750 shares of Class B common stock (the “Founder Shares”) to the Sponsor for an aggregate purchase price of $30,000 in cash. On August 7, 2020, the Sponsor transferred an aggregate of 1,250,000 Founder Shares to members of the Company’s management and board of directors, resulting in the Sponsor holding 5,218,750 Founder Shares. As of September 30, 2020, the Founder Shares included an aggregate of up to 843,750 shares subject to forfeiture by the Sponsor to the extent that the underwriters’ over-allotment option is not exercised in full or in part. In connection with the partial exercise of the over-allotment option by the underwriters on October 14, 2020, the Sponsor forfeited 525,000 Founder Shares on October 14, 2020.

 

The Sponsor and our management have agreed not to transfer, assign or sell any of the Founder Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) twelve months after the date of the consummation of a Business Combination, or (ii) the date on which the closing price of our Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days within any 30-trading day period commencing after a Business Combination, with respect to the remaining 50% of the Founder Shares, 12 months after the date of the consummation of a Business Combination, or earlier, in each case, if, subsequent to a Business Combination, we consummate a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of our stockholders having the right to exchange their Public Shares for cash, securities or other property.

 

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Promissory Note

 

On July 13, 2020, we issued an unsecured Promissory Note to the Sponsor, pursuant to which we may borrow up to an aggregate principal amount of $300,000 from time to time. As of September 30, 2020, there was $100,000 balance outstanding under the Promissory Note. The Promissory Note was fully paid off at the completion of the Initial Public Offering on October 2, 2020.

 

Administrative Services Agreement

 

We entered into an administrative services agreement (the “Administrative Services Agreement”) with the Sponsor on September 29, 2020 whereby the Sponsor will provide office space, secretarial and administrative services for the Company for a monthly fee of $10,000.

 

Recent accounting pronouncements

 

Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our financial statements.

 

Item 3.Quantitative and Qualitative Disclosures about Market Risk

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

 

Item 4.Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

 

Evaluation of Disclosure Controls and Procedures

 

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2020. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act) were effective.

 

Changes in Internal Control Over Financial Reporting

 

During the quarter ended September 30, 2020, there has been no change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

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PART II - OTHER INFORMATION

 

Item 1.Legal Proceedings.

 

None.

 

Item 1A.Risk Factors.

 

The significant factors known to us that could materially adversely affect our business, financial condition, or operating results are described in our final prospectus, filed with the SEC on October 1, 2020, under Cautionary Note Regarding Forward-Looking Statements and Risk Factors. As of the date of this Quarterly Report, other than as described below, there have been no material changes to the risk factors disclosed in our final prospectus.

 

The securities in which we invest the funds held in the Trust Account could bear a negative rate of interest, which could reduce the value of the assets held in trust such that the per-share redemption amount received by public stockholders may be less than $10.00 per share.

 

The proceeds held in the Trust Account are invested only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act, which invest only in direct U.S. government treasury obligations. While short-term U.S. government treasury obligations currently yield a positive rate of interest, they have briefly yielded negative interest rates in recent years. Central banks in Europe and Japan pursued interest rates below zero in recent years, and the Open Market Committee of the Federal Reserve has not ruled out the possibility that it may in the future adopt similar policies in the United States. In the event that we are unable to complete our Business Combination or make certain amendments to our Charter, our public stockholders are entitled to receive their pro-rata share of the proceeds held in the Trust Account, plus any interest income not released to us, net of taxes payable. Negative interest rates could impact the per-share redemption amount that may be received by public stockholders.

 

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.

 

On June 24, 2020, we issued to our Sponsor an aggregate of 6,468,750 Founder Shares in exchange for a capital contribution of $30,000. On August 7, 2020, our Sponsor transferred an aggregate of 1,250,000 Founder Shares to members of our management and our board of directors, resulting in our Sponsor holding 5,218,750 Founder Shares. On October 14, 2020, our Sponsor forfeited 525,000 Founder Shares in connection with the underwriters’ partial exercise of the over-allotment option, resulting in our Sponsor holding 4,693,750 Founder Shares and there being a total of 5,943,750 Founder Shares outstanding.

 

On September 29, 2020 we priced and on October 2, 2020 we closed our Initial Public Offering of 22,500,000 Units. The Units were sold at an offering price of $10.00 per unit, generating total gross proceeds of $225,000,000. Piper Sandler & Co. and ThinkEquity, a division of Fordham Financial Management, Inc., acted as joint book-running managers of the offering. The securities sold in the Initial Public Offering were registered under the Securities Act on registration statement on Form S-1 (No. 333-248429). The SEC declared the registration statement effective on September 29, 2020. On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units, generating gross proceeds of $12,750,000.

 

Simultaneously with the consummation of the Initial Public Offering, we consummated a private placement of 462,500 Private Units to our Sponsor at a price of $10.00 per Private Unit, generating total proceeds of $4,625,000. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act. The Private Units are the same as the Units sold in the Initial Public Offering, except that our Sponsor has agreed not to transfer, assign or sell any of the Private Units (except to certain permitted transferees) until 30 days after the completion of our initial Business Combination. In addition, for as long as the warrants underlying the Private Units are held by our Sponsor or its permitted transferees, they (i) will not be redeemable by us, (ii) may be exercised by the holders on a cashless basis and (iii) will be entitled to registration rights. The Private Units (including the underlying securities) are not entitled to redemption.

 

 19 

 

 

Also simultaneously with the closing of the Initial Public Offering, we completed the private sale of an aggregate of 3,848,750 $11.50 Private Warrants to our Sponsor at a purchase price of $1.00 per $11.50 Private Warrant. The $11.50 Private Warrants are identical to the warrants included in the Units sold in the Initial Public Offering (the “Public Warrants”), except that the $11.50 Private Warrants, so long as they are held by our Sponsor or its permitted transferees, (i) are not redeemable by us, (ii) may not (including the shares of Class A common stock issuable upon exercise of such $11.50 Private Warrants), subject to certain limited exceptions, be transferred, assigned or sold by such holders until 30 days after the completion of our initial Business Combination, (iii) may be exercised by the holders on a cashless basis and (iv) will be entitled to registration rights. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

 

Also simultaneously with the closing of the Initial Public Offering, we completed the private sale of an aggregate of 1,512,500 $15 Private Warrants to our Sponsor at a purchase price of $0.10 per $15 Private Warrant. The $15 Private Warrants are identical to the Public Warrants, except that the $15 Private Warrants are each exercisable to purchase one share of Class A common stock at $15.00 per share, so long as they are held by our Sponsor or its permitted transferees, (i) are not redeemable by us, (ii) may not (including the shares of Class A common stock issuable upon exercise of such $15 Private Warrants), subject to certain limited exceptions, be transferred, assigned or sold by such holders until 30 days after the completion of our initial Business Combination, (iii) may be exercised by the holders on a cashless basis, (iv) will be entitled to registration rights, and will expire at 5:00 p.m. New York City time ten years after the consummation of our initial business combination. Such securities were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

 

Also simultaneously with the closing of the Initial Public Offering on October 2, 2020, we completed the private placement of an aggregate of 112,500 Units to the underwriters. The underwriter Units are identical to the Units sold in the Initial Public Offering, except so long as they are held by the underwriters or their permitted transferees, they (i) will not be redeemable by us, (ii) may not (including the shares of Class A common stock issuable upon exercise of the warrants underlying the underwriter Units), subject to certain limited exceptions, be transferred, assigned or sold by the holders until after the completion of our initial Business Combination, (iii) may be exercised by the holders on a cashless basis, (iv) will be entitled to registration rights and (v) for so long as they are held by the underwriters, will not be exercisable more than five years from the effective date of the Registration Statement in accordance with FINRA Rule 5110(f)(2)(G)(i). On October 14, 2020, we issued an additional 6,375 Units to the underwriters in connection with the underwriters’ partial exercise of the over-allotment option. No underwriting discounts or commissions were paid with respect to either placement. The issuance of the underwriter Units was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

 

Of the gross proceeds received from the Initial Public Offering, the partial exercise of the underwriters’ over-allotment option and private placement of Private Units and the Private Warrants, $243,375,000 was placed in a Trust Account.

 

We paid a total of $1,000,000 in underwriting fees and $608,028 for other costs and expenses related to the Initial Public Offering.

 

For a description of the use of the proceeds generated in our Initial Public Offering, see Part I, Item 2 of this Quarterly Report.

 

Item 3.Defaults Upon Senior Securities.

 

None.

 

Item 4.Mine Safety Disclosures.

 

Not applicable.

 

 20 

 

 

Item 5.Other Information.

 

None.

 

Item 6.Exhibits.

 

The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.

 

No.   Description of Exhibit
3.1   Amended and Restated Certificate of Incorporation of FG New America Acquisition Corp. (incorporated by reference to Exhibit 3.1 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).
3.2   Bylaws of FG New America Acquisition Corp. (incorporated by reference to Exhibit 3.3 of FG New America Acquisition Corp.’s Amendment No. 1 to Form S-1 filed with the SEC on September 14, 2020).
4.1   Warrant Agreement, dated September 29, 2020, by and between FG New America Acquisition Corp. and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 4.1 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).
10.1   Securities Subscription Agreement between FG New America Acquisition Corp. and FG New America Investors LLC (incorporated by reference to Exhibit 10.7 of FG New America Acquisition Corp.’s Form S-1 filed with the SEC on August 26, 2020).
10.2   Letter Agreement, dated September 29, 2020, by and among FG New America Acquisition Corp., its executive officers, its directors and FG New America Investors LLC (incorporated by reference to Exhibit 10.1 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).
10.3   Investment Management Trust Agreement, dated September 29, 2020, by and between FG New America Acquisition Corp. and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 10.2 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).
10.4   Registration Rights Agreement, dated September 29, 2020, by and among FG New America Acquisition Corp., FG New America Investors LLC and the other holders party thereto (incorporated by reference to Exhibit 10.3 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).
10.5   Founder Warrants Purchase Agreement, dated September 29, 2020, by and among FG New America Acquisition Corp. and FG New America Investors LLC (incorporated by reference to Exhibit 10.4 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).
10.6   $15 Exercise Price Warrants Purchase Agreement, dated September 29, 2020, by and among FG New America Acquisition Corp. and FG New America Investors LLC (incorporated by reference to Exhibit 10.5 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).
10.7   Private Placement Units Purchase Agreement, dated September 29, 2020, by and among FG New America Acquisition Corp. and FG New America Investors LLC (incorporated by reference to Exhibit 10.6 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).
10.8   Administrative Services Agreement, dated September 29, 2020, by and between FG New America Acquisition Corp. and FG New America Investors LLC (incorporated by reference to Exhibit 10.7 of FG New America Acquisition Corp.’s Current Report on Form 8-K filed with the SEC on October 2, 2020).

 

 21 

 

 

No.   Description of Exhibit
31.1   Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2   Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1   Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2   Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS   XBRL Instance Document
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   XBRL Taxonomy Extension Labels Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

 22 

 

 

SIGNATURES

 

Pursuant to the requirements of Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  FG NEW AMERICA ACQUISITION CORP.
Date:  November 10, 2020 By: /s/ Hassan R. Baqar
  Name: Hassan R. Baqar
  Title: Chief Financial Officer
    (Principal Financial Officer and Duly Authorized Officer)

 

 23 

EX-31.1 2 tm2035348d1_ex31-1.htm EXHIBIT 31.1

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Larry G. Swets, Jr., certify that:

 

1.I have reviewed this quarterly report on Form 10-Q of FG New America Acquisition Corp.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

 

b)(Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313);

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 10, 2020

 

  /s/ Larry G. Swets, Jr.
  Larry G. Swets, Jr.
  Chief Executive Officer
  (Principal Executive Officer)

 

 

EX-31.2 3 tm2035348d1_ex31-2.htm EXHIBIT 31.2

Exhibit 31.2

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Hassan Baqar, certify that:

 

1.I have reviewed this quarterly report on Form 10-Q of FG New America Acquisition Corp.;

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

 

b)(Paragraph omitted pursuant to SEC Release Nos. 33-8238/34-47986 and 33-8392/34-49313);

 

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 10, 2020

 

  /s/ Hassan Baqar
  Hassan Baqar
  Chief Financial Officer
  (Principal Financial and Accounting Officer)

 

 

EX-32.1 4 tm2035348d1_ex32-1.htm EXHIBIT 32.1

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of FG New America Acquisition Corp. (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2020, as filed with the Securities and Exchange Commission (the “Report”), I, Larry G. Swets, Jr., Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

 

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

 

Date: November 10, 2020

 

  /s/ Larry G. Swets, Jr.
  Larry G. Swets, Jr.
  Chief Executive Officer
  (Principal Executive Officer)

 

 

EX-32.2 5 tm2035348d1_ex32-2.htm EXHIBIT 32.2

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of FG New America Acquisition Corp. (the “Company”) on Form 10-Q for the quarterly period ended September 30, 2020, as filed with the Securities and Exchange Commission (the “Report”), I, Hassan Baqar, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

 

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2.To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

 

Date: November 10, 2020

 

  /s/ Hassan Baqar
  Hassan Baqar
  Chief Financial Officer
  (Principal Accounting and Financial Officer)

 

 

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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 auditor attestation requirements of Section&nbsp;404 of the Sarbanes-Oxley&nbsp;Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Further, Section&nbsp;102(b)(1)&nbsp;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 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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&nbsp;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&#x2019;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.</font> </p><div /></div> </div> 1000 1000 323237 100000 243375000 300000 0.035 0.50 5000001 5000001 525000 525000 525000 525000 525000 525000 525000 5218750 5218750 1 1 843750 843750 843750 1250000 1250000 1 0.5 0.5 1.00 323237 0.80 0.20 0.25 10.25 10.00 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">NOTE&nbsp;4. PRIVATE PLACEMENT</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">On October&nbsp;2, 2020 simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 3,848,750&nbsp;$11.50 Private Warrants at a price of $1.00 per $11.50 Private Warrant, 1,512,500 $15 Private Warrants at a price of $0.10 per $15 Private Warrant, and 462,500 Private Units at a price of $10.00 per Private Unit, in each case, from the Company in a private placement. The aggregate gross proceeds from the sale of Private Warrants and Private Units were $8,625,000, part of which was placed in the Trust Account along with the Initial Public Offering gross proceeds. If the Company does not complete a Business Combination within the Combination Period, the Private Warrants and the Private Unit Warrants will expire worthless. The Private Warrants and the Private Unit Warrants are&nbsp;non-redeemable&nbsp;for&nbsp;cash and exercisable on a cashless basis so long as they are held by the Initial Stockholders or the permitted transferees. Each Private Warrant and Private Unit Warrant will entitle the holder to purchase one share of common stock at its respective exercise price.</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Also, simultaneously with the closing of the Initial Public Offering on October&nbsp;2, 2020, the Company completed the private placement of an aggregate of 112,500 Units to the underwriters. In connection with the exercise of underwriters&#x2019; over-allotment option on October&nbsp;14, 2020, the Company also issued an additional 6,375 Units to the underwriters for an aggregate of 118,875 Units.</font> </p><div /></div> </div> <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">NOTE&nbsp;3. INITIAL PUBLIC OFFERING</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The registration statement for the Company&#x2019;s Initial Public Offering was declared effective on September&nbsp;29, 2020. On October&nbsp;2, 2020, the Company consummated the Initial Public Offering of 22,500,000 Units at a purchase price of $10.00 per Unit generating gross proceeds of $225,000,000 from the sale of the Units. Each Unit&nbsp;&nbsp;consists of one share of Class&nbsp;A common stock and one-half of one redeemable warrant (&#x201C;Public Warrant&#x201D;). Each whole Public Warrant will entitle the holder to purchase one share of Class&nbsp;A common stock at an exercise price of $11.50 per share (see Note&nbsp;7). On October&nbsp;14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units, generating additional gross proceeds of $12,750,000.</font> </p><div /></div> </div> 0.15 10000 608028 1000000 0.50 0.50 P24M P12M P12M P12M 12.00 P30D P20D 3375000 3375000 462500 22500000 22500000 22500000 1275000 1275000 1275000 1275000 324237 29353 1958367 1958367 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Basis of presentation</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The accompanying financial statements are presented in U.S. Dollars and conformity with accounting principles generally accepted in the United States of America (&#x201C;GAAP&#x201D;) and pursuant to the rules&nbsp;and regulations of the SEC.</font> </p><div /></div> </div> 27102 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Cash and cash equivalents</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company considers all short-term&nbsp;investments with an original maturity of three&nbsp;months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September&nbsp;30, 2020.</font> </p><div /></div> </div> 0 27102 27102 11.50 15 11.50 11.50 11.50 15.00 11.50 11.50 1 1 1 1 1 3848750 3848750 1512500 1512500 462500 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">NOTE&nbsp;6. COMMITMENTS AND CONTINGENCIES</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Registration Rights</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Pursuant to a registration rights agreement entered into on September&nbsp;29, 2020, the holders of the Founder Shares, the Private Units and Private Warrants (and their underlying securities) are entitled to registration rights. The Company will bear the expenses incurred in connection with the filing of any registration statements pursuant to such registration rights.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Underwriting Agreement</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company granted the underwriters a 45&#8209;day&nbsp;option to purchase up to 3,375,000 additional Units to cover over-allotments&nbsp;at the Initial Public Offering price. On October&nbsp;14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units.</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Subject to certain conditions, on September&nbsp;29, 2020 the Company granted underwriters for a period beginning on the closing of the Initial Public Offering and ending on the later of 24&nbsp;months after the closing of the Initial Public Offering and 12&nbsp;months after the consummation of our Business Combination, a right of first refusal to act as (i)&nbsp;exclusive financial advisor in connection with all of the Company&#x2019;s proposed business combinations for a fee of up to 3.5% of the proceeds of the Initial Public Offering (subject to the Company&#x2019;s right to allocate up to 50% of such fee to another financial institution or extinguish such amount in Company&#x2019;s sole discretion), and (ii)&nbsp;sole investment banker, sole book-runner and/or sole placement agent, at underwriters&#x2019; sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings, during such period for the Company or any successor to it or any of its subsidiaries, on terms agreed to by both the Company and underwriters in good faith.</font> </p><div /></div> </div> 0.0001 0.0001 0.0001 0.0001 380000000 380000000 20000000 20000000 6468750 0 0 6468750 1069181 0 0 6468750 1069181 647 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Deferred Offering costs</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Deferred offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the Initial Public Offering and that are charged to stockholders equity upon the completion of the Initial Public Offering. As of September&nbsp;30, 2020, deferred offering costs amounted to $1,608,028 (including $1,000,000 of underwriting fees), which were charged to stockholders&#x2019; equity upon the completion of Initial Public Offering on October&nbsp;2, 2020. In addition, underwriters also received an aggregate of 118,875 Units at closing of the Initial Public Offering and the over-allotment option, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account.</font> </p><div /></div> </div> 1608028 -0.0002 -0.0002 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Net loss per share</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period, excluding shares of common stock subject to forfeiture by the Initial Stockholders. As of September&nbsp;30, 2020 weighted average shares were reduced for the effect of an aggregate of 843,750 shares that were subject to forfeiture by Initial Stockholders if the over-allotment&nbsp;option is not exercised by the underwriters (see Note&nbsp;5). In connection with the partial exercise of the over-allotment option by the underwriters, the Sponsor actually forfeited 525,000 shares of Class&nbsp;B common stock on October&nbsp;14, 2020. At September&nbsp;30, 2020, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share in the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the period presented.</font> </p><div /></div> </div> <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Fair value of financial instruments</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The fair value of the Company&#x2019;s assets and liabilities, which qualify as financial instruments under ASC Topic 820, &#x201C;Fair Value Measurement,&#x201D; approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term&nbsp;nature.</font> </p><div /></div> </div> <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Income taxes</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company complies with the accounting and reporting requirements of ASC Topic 740, &#x201C;Income Taxes,&#x201D; which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not&nbsp;to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits as of September&nbsp;30, 2020 and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.</font> </p><div /></div> </div> 324237 1929367 1958367 1929367 27102 0 -1000 -1000 -1000 -1000 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Recently issued accounting standards</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company&#x2019;s financial statements.</font> </p><div /></div> </div> 100000 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">NOTE&nbsp;1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">FG New America Acquisition Corp. (the &#x201C;Company&#x201D;) is a blank check company incorporated in Delaware on June&nbsp;24, 2020. The Company was formed for the purpose of merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (&#x201C;Business Combination&#x201D;).</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to focus on businesses in the financial technology industry. 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.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">As of September&nbsp;30, 2020, the Company had not yet commenced any operations. All activity through September&nbsp;30, 2020 relates to the Company&#x2019;s formation and the initial public offering (&#x201C;Initial Public Offering&#x201D;), which is described below. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate nonoperating income in the form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December&nbsp;31 as its fiscal&nbsp;year end.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The registration statement for the Company&#x2019;s Initial Public Offering was declared effective September&nbsp;29, 2020. On October&nbsp;2, 2020 the Company consummated the Initial Public Offering of 22,500,000 units at $10.00 per unit, (the &#x201C;Units&#x201D; and, with respect to the shares of Class&nbsp;A common stock included in the Units sold, the &#x201C;Public Shares&#x201D;) generating gross proceeds of $225,000,000, which is discussed in Note&nbsp;3. In connection with the Initial Public Offering, the underwriters were granted an option to purchase up to an additional 3,375,000 Units to cover over-allotments, if any. On October&nbsp;14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units, generating gross proceeds of $12,750,000. In connection with the partial exercise of the over-allotment option by the underwriters, the Company&#x2019;s sponsor, FG New America Investors LLC (the &#x201C;Sponsor&#x201D;), forfeited 525,000 shares of Class&nbsp;B common stock on October&nbsp;14, 2020.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of i) 3,848,750&nbsp;$11.50 exercise price warrants (the &#x201C;$11.50 Private Warrants&#x201D;) at a price of $1.00 per $11.50&nbsp;Private Warrant, ii) the sale of 1,512,500&nbsp;$15.00 exercise price warrants (the &#x201C;$15 Private Warrants&#x201D;, and together with $11.50 Private Warrants the &#x201C;Private Warrants&#x201D;) at a price of $0.10 per $15 Private Warrant, and iii) the sale of 462,500 units at $10.00 per unit (the &#x201C;Private Units&#x201D;) in a private placement to the Sponsor. Each Private Unit consists of one share of Class&nbsp;A common stock and one-half of one non-redeemable warrant (&#x201C;Private Unit Warrant&#x201D;). Each whole Private Unit Warrant will entitle the holder to purchase one share of Class&nbsp;A common stock at an exercise price of $11.50 per share.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Initial Public Offering costs amounted to $1,608,028 consisting of $1,000,000 of underwriting fees, and $608,028 of other offering costs. These costs are deferred as of September 30, 2020. In addition, underwriters also received an aggregate of 118,875 Units, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account (as defined below). In addition to the offering costs, after the closing of the Initial Public Offering on Oct 2, 2020 the Company also paid $300,037 for directors and officers insurance coverage.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Following the closing of the Initial Public Offering and the private placements of Private Warrants and Private Units on October&nbsp;2, 2020, as well as the closing of the over-allotment option on October&nbsp;14, 2020, an amount of $243,375,000 from the net proceeds of the sale of Units in the Initial Public Offering (including proceeds from the partial exercise of the over-allotment option) and the sale of Private Warrants and Private Units was placed in a trust account (&#x201C;Trust Account&#x201D;) that will be invested in U.S. government securities, within the meaning set forth in Section&nbsp;2(a)(16) of the Investment Company Act, with a maturity of 185&nbsp;days or less, or in any open-ended&nbsp;investment company that holds itself out as a money market fund meeting the conditions of Rule&nbsp;2a&#8209;7&nbsp;of the Investment Company Act, as determined by the Company, until the earlier of: (i)&nbsp;the consummation of a Business Combination or (ii)&nbsp;the distribution of the funds in the Trust Account to the Company&#x2019;s stockholders, as described below.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Units are listed on the New York Stock Exchange (&#x201C;NYSE&#x201D;). The Company&#x2019;s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and sale of the Private Warrants and Private Units, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. NYSE rules&nbsp;provide that the Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net assets held in the Trust Account (net of amounts disbursed to management for working capital purposes). The Company will only complete a Business Combination if the post-Business&nbsp;Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the &#x201C;Investment Company Act&#x201D;). There is no assurance that the Company will be able to successfully effect a Business Combination.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company will provide its stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i)&nbsp;in connection with a stockholder meeting called to approve the Business Combination or (ii)&nbsp;by means of a tender offer. In connection with a proposed Business Combination, the Company may seek stockholder approval of a Business Combination at a meeting called for such purpose at which stockholders may seek to redeem their shares, regardless of whether they vote for or against the proposed Business Combination.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 upon or immediately prior to such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the outstanding shares voted are voted in favor of the Business Combination.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Company&#x2019;s amended and restated certificate of incorporation (the &#x201C;Charter&#x201D;) provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a &#x201C;group&#x201D; (as defined under Section&nbsp;13 of the Securities Exchange Act of 1934, as amended (the &#x201C;Exchange Act&#x201D;)), will be restricted from seeking redemption rights with respect to 15% or more of the Public Shares without the Company&#x2019;s prior written consent.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The holders of Public Shares are entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (including any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). There will be no redemption rights upon the completion of a Business Combination with respect to the Company&#x2019;s warrants. Following the consummation of the Initial Public Offering on Oct 2, 2020, a portion of the Public Shares will be recorded at redemption value and classified as temporary equity, in accordance with Accounting Standards Codification (&#x201C;ASC&#x201D;) Topic 480 &#x201C;Distinguishing Liabilities from Equity&#x201D; in order for the Company to maintain net tangible assets of at least $5,000,001.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">If a stockholder vote is not required and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Charter, offer such redemption pursuant to the tender offer rules&nbsp;of the U.S. Securities and Exchange Commission (&#x201C;SEC&#x201D;), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Sponsor, officers, directors and advisors (the &#x201C;Initial Stockholders&#x201D;) have agreed (a)&nbsp;to vote their Founder Shares (as defined in Note&nbsp;5) as well as any shares of Class&nbsp;A common stock underlying the Private Units, and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination, (b)&nbsp;not to propose an amendment to the Charter with respect to the Company&#x2019;s pre-Business&nbsp;Combination activities prior to the consummation of a Business Combination unless the Company provides dissenting public stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment; (c)&nbsp;not to redeem any shares (including the Founder Shares as well as any shares of Class&nbsp;A common stock underlying the Private Units) into the right to receive cash from the Trust Account in connection with a stockholder vote to approve a Business Combination (or to sell any shares in a tender offer in connection with a Business Combination if the Company does not seek stockholder approval in connection therewith) or a vote to amend the provisions of the Charter relating to stockholders&#x2019; rights of pre-Business&nbsp;Combination activity and (d)&nbsp;that the Founder Shares, the Private Units and Private Warrants (including underlying securities) shall not participate in any liquidating distributions upon winding up if a Business Combination is not consummated. However, the Initial Stockholders will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares purchased during or after the Initial Public Offering if the Company fails to complete its Business Combination.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company has until 24&nbsp;months from the closing of the Initial Public Offering to consummate a Business Combination (as such period may be extended pursuant to the Charter, the &#x201C;Combination Period&#x201D;). If the Company is unable to complete a Business Combination within the Combination Period, the Company will (i)&nbsp;cease all operations except for the purpose of winding up, (ii)&nbsp;as promptly as reasonably possible but no more than ten business&nbsp;days thereafter, redeem 100% of the outstanding Public Shares, at a per-share&nbsp;price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned (net of taxes payable and less interest to pay dissolution expenses up to $100,000), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders&#x2019; rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii)&nbsp;as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the Company&#x2019;s board of directors, proceed to commence a voluntary liquidation and thereby a formal dissolution of the Company, subject in each case to its obligations to provide for claims of creditors and the requirements of applicable law. There will be no redemption rights or liquidating distributions with respect to the Company&#x2019;s warrants, which will expire worthless if the Company fails to complete its initial Business Combination within the Combination Period.</font> </p> <p style="margin:0pt;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Sponsor has agreed that it will be liable to the Company, if and to the extent any claims by a vendor 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 amounts in the Trust Account to below $10.25 per share (but only $10.00 per share for the Units sold pursuant to the underwriters&#x2019; over-allotment&nbsp;option), except as to any 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&#x2019;s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the &#x201C;Securities Act&#x201D;). 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&nbsp;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, prospective target businesses or 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.</font> </p><div /></div> </div> 102898 1608028 1608028 300037 0.0001 0.0001 1000000 1000000 0 0 0 0 30000 30000 30000 8625000 225000000 225000000 12750000 12750000 100000 -1000 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">NOTE&nbsp;5. RELATED PARTY TRANSACTIONS</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Founder Shares</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">On July&nbsp;13, 2020, the Company issued an aggregate of 6,468,750 shares of Class&nbsp;B common stock (the &#x201C;Founder Shares&#x201D;) to the Initial Stockholders for an aggregate purchase price of $30,000 in cash. On August&nbsp;7, 2020, the Sponsor transferred an aggregate of 1,250,000 Founder Shares to members of the Company&#x2019;s management and board of directors, resulting in the Sponsor holding 5,218,750 Founder Shares. As of September&nbsp;30, 2020, the Founder Shares included an aggregate of up to 843,750&nbsp;shares subject to forfeiture by the Initial Stockholders to the extent that the underwriters&#x2019; over-allotment&nbsp;option is not exercised in full or in part, so that the Initial Stockholders will collectively own 20% of the Company&#x2019;s issued and outstanding shares after the Initial Public Offering (excluding the securities underlying the Private Warrants, the Private Units and the Units issued to underwriters). In connection with the partial exercise of the over-allotment option by the underwriters on October&nbsp;14, 2020, the Sponsor forfeited 525,000 Founder Shares on October&nbsp;14, 2020.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Initial Stockholders have agreed not to transfer, assign or sell any of the Founder Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i)&nbsp;twelve&nbsp;months after the date of the consummation of a Business Combination, or (ii)&nbsp;the date on which the closing price of the Company&#x2019;s Class&nbsp;A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading&nbsp;days within any 30&#8209;trading&nbsp;day period commencing after a Business Combination, with respect to the remaining 50% of the Founder Shares, 12&nbsp;months after the date of the consummation of a Business Combination, or earlier, in each case, if, subsequent to a Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of the Company&#x2019;s stockholders having the right to exchange their Public Shares for cash, securities or other property.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Promissory Note</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">On July&nbsp;13, 2020, the Company issued a non-interest bearing unsecured Promissory Note&nbsp;to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $300,000 from time to time. As of September&nbsp;30, 2020, there was $100,000 balance outstanding under the Promissory Note. The Promissory Note&nbsp;was fully paid off at the completion of the Initial Public Offering on October&nbsp;2, 2020.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Administrative Services Agreement</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company entered into an administrative services agreement (the &#x201C;Administrative Services Agreement&#x201D;) with the Sponsor on September&nbsp;29, 2020 whereby the Sponsor will perform certain services for the Company for a&nbsp;monthly fee of $10,000.</font> </p><div /></div> </div> -1000 11.50 15 10.00 10.00 10.00 0 6468750 100000 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">NOTE&nbsp;2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Basis of presentation</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The accompanying financial statements are presented in U.S. Dollars and conformity with accounting principles generally accepted in the United States of America (&#x201C;GAAP&#x201D;) and pursuant to the rules&nbsp;and regulations of the SEC.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Emerging growth company</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company is an &#x201C;emerging growth company,&#x201D; as defined in Section&nbsp;2(a)&nbsp;of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the &#x201C;JOBS Act&#x201D;), 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 auditor attestation requirements of Section&nbsp;404 of the Sarbanes-Oxley&nbsp;Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Further, Section&nbsp;102(b)(1)&nbsp;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&nbsp;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&#x2019;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.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Use of estimates</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The preparation of financial statements in conformity with GAAP requires 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 periods.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">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.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Cash and cash equivalents</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company considers all short-term&nbsp;investments with an original maturity of three&nbsp;months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of September&nbsp;30, 2020.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Deferred Offering costs</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Deferred offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the Initial Public Offering and that are charged to stockholders equity upon the completion of the Initial Public Offering. As of September&nbsp;30, 2020, deferred offering costs amounted to $1,608,028 (including $1,000,000 of underwriting fees), which were charged to stockholders&#x2019; equity upon the completion of Initial Public Offering on October&nbsp;2, 2020. In addition, underwriters also received an aggregate of 118,875 Units at closing of the Initial Public Offering and the over-allotment option, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Income taxes</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Company complies with the accounting and reporting requirements of ASC Topic 740, &#x201C;Income Taxes,&#x201D; which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not&nbsp;to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits as of September&nbsp;30, 2020 and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Net loss per share</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period, excluding shares of common stock subject to forfeiture by the Initial Stockholders. As of September&nbsp;30, 2020 weighted average shares were reduced for the effect of an aggregate of 843,750 shares that were subject to forfeiture by Initial Stockholders if the over-allotment&nbsp;option is not exercised by the underwriters (see Note&nbsp;5). In connection with the partial exercise of the over-allotment option by the underwriters, the Sponsor actually forfeited 525,000 shares of Class&nbsp;B common stock on October&nbsp;14, 2020. At September&nbsp;30, 2020, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share in the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the period presented.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Fair value of financial instruments</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The fair value of the Company&#x2019;s assets and liabilities, which qualify as financial instruments under ASC Topic 820, &#x201C;Fair Value Measurement,&#x201D; approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term&nbsp;nature.</font> </p> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Recently issued accounting standards</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company&#x2019;s financial statements.</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">&nbsp;</font> </p><div /></div> </div> 0 0 0 0 29000 29000 29353 -1000 647 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">NOTE&nbsp;7. STOCKHOLDERS&#x2019; EQUITY</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:0pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;font-weight:bold;font-style:italic;">Preferred Stock&nbsp;&#x2014; </font><font style="display:inline;">The Company is authorized to issue 1,000,000&nbsp;shares of preferred stock, par value $0.0001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company&#x2019;s board of directors. As of September&nbsp;30, 2020, there were no shares of preferred stock issued or outstanding.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:0pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;font-weight:bold;font-style:italic;">Class&nbsp;A Common Stock&nbsp;</font><font style="display:inline;">&#x2014; The Company is authorized to issue 380,000,000 shares of Class&nbsp;A common stock, par value $0.0001 per share. Holders of the Company&#x2019;s Class&nbsp;A common stock are entitled to one vote for each share. As of September&nbsp;30, 2020, there were no shares of Class&nbsp;A common stock issued and outstanding. Following the closing of the Initial Public Offering and the private placement of Private Units on October&nbsp;2, 2020, as well as the closing of the over-allotment option on October&nbsp;14, 2020, there were 1,069,181 shares of Class&nbsp;A common stock issued and outstanding, excluding 23,287,194 shares subject to possible redemption.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:0pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;font-weight:bold;font-style:italic;">Class&nbsp;B Common Stock</font><font style="display:inline;">&nbsp;&#x2014; The Company is authorized to issue 20,000,000 shares of Class&nbsp;B common stock, par value $0.0001 per share. On July&nbsp;13, 2020, the Company issued an aggregate of 6,468,750 shares of Class&nbsp;B common stock as Founder Shares to the Initial Stockholders for an aggregate purchase price of $30,000 in cash. On August&nbsp;7, 2020, the Sponsor transferred an aggregate of 1,250,000 Founder Shares to members of the Company&#x2019;s management and board of directors, resulting in the Sponsor holding 5,218,750 Founder Shares. As of September&nbsp;30, 2020, the Founder Shares included an aggregate of up to 843,750&nbsp;shares subject to forfeiture by the Initial Stockholders to the extent that the underwriters&#x2019; over-allotment&nbsp;is not exercised in full or in part, so that the Initial Stockholders will collectively own 20% of the Company&#x2019;s issued and outstanding shares after the Initial Public Offering (excluding the securities underlying the Private Warrants, the Private Units and the Units issued to underwriters). In connection with the partial exercise of the over-allotment option by the underwriters on October&nbsp;14, 2020, the Sponsor forfeited 525,000 Founder Shares on October&nbsp;14, 2020.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">Holders of the Company&#x2019;s Class&nbsp;B common stock are entitled to one vote for each share. With respect to any matter submitted to a vote of the Company&#x2019;s stockholders, including any vote in connection with the Business Combination, holders of the Class&nbsp;A common stock and holders of the Class&nbsp;B common stock will vote together as a single class on all matters submitted to a vote of the Company&#x2019;s stockholders, except as required by law.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The shares of Class&nbsp;B common stock will automatically convert into shares of Class&nbsp;A common stock at the time of the Business Combination, or earlier at the option of the holders, on a&nbsp;one-for-one&nbsp;basis,&nbsp;subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, and subject to further adjustment as described herein. In the case that additional shares of Class&nbsp;A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of the Business Combination, including pursuant to a specified future issuance, the ratio at which shares of Class&nbsp;B common stock shall convert into shares of Class&nbsp;A common stock will be adjusted (unless the holders of a majority of the then-outstanding shares of Class&nbsp;B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance, including a specified future issuance) such that: i) the numerator shall be equal to the sum of (A)&nbsp;25% of all shares of Class&nbsp;A common stock issued or issuable (upon the conversion or exercise of any equity-linked securities or otherwise) by the Company, related to or in connection with the consummation of the Business Combination (excluding any securities issued or issuable to any seller in the Business Combination) plus (B)&nbsp;the number of shares of Class&nbsp;B common stock issued and outstanding prior to the closing of the Business Combination; and ii) the denominator shall be the number of shares of Class&nbsp;B common stock issued and outstanding prior to the closing of the Business Combination.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:0pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;font-weight:bold;font-style:italic;">Warrants&nbsp;&#x2014;</font><font style="display:inline;">&nbsp;Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. Each whole Public Warrant will entitle the holder to purchase one share of Class&nbsp;A common stock at an exercise price of $11.50 per share, and will become exercisable on the later of 30&nbsp;days after the completion of the Business Combination or 12&nbsp;months from the closing of the Initial Public Offering. The Public Warrants will expire on the fifth anniversary of the completion of the Business Combination, or earlier upon redemption or liquidation. The Company may redeem the Public Warrants i) at a redemption price of $0.01 per warrant, ii) at any time after the Public Warrants become exercisable, iii) upon a minimum of 30&nbsp;days&#x2019; prior written notice of redemption, iv) if, and only if, the last sales price of Company&#x2019;s Class&nbsp;A common stock equals or exceeds $18.00 per share for any 20 trading&nbsp;days within a 30 trading day period commencing after the date the Public Warrants become exercisable and ending three business&nbsp;days before Company sends the notice of redemption, and v) if, and only if, there is a current registration statement in effect with respect to the shares of Class&nbsp;A common stock underlying such Public Warrants at the time of redemption and for the entire 30&#8209;day trading period referred to above and continuing each day thereafter until the date of redemption.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The $11.50 Private Warrants have terms similar to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the $11.50 Private Warrants are issued as a whole warrant having one common stock underlying each $11.50 Private Warrant (as compared to one-half of one Public Warrant included in each Unit sold in the Initial Public Offering), will be non-redeemable and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, $11.50 Private Warrants and the shares issuable upon the exercise of the $11.50 Private Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The $15 Private Warrants entitle the holder to purchase one share of Class&nbsp;A common stock at an exercise price of $15.00 per each share, will be exercisable for a period of 10&nbsp;years from the date of Business Combination, will be non-redeemable, and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, $15 Private Warrants and the shares issuable upon the exercise of the $15 Private Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The Private Unit Warrants have terms similar to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Unit Warrants are non-redeemable and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, Private Unit Warrants and the shares issuable upon the exercise of the Private Unit Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described above, the warrants will not be adjusted for issuances of Class&nbsp;A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company&#x2019;s assets held outside of the Trust Account with respect to such warrants. Accordingly, the warrants may expire worthless.</font> </p><div /></div> </div> 6468750 6468750 30000 29353 647 <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">NOTE&nbsp;8. SUBSEQUENT EVENTS</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The registration statement for the Company&#x2019;s Initial Public Offering was declared effective on September&nbsp;29, 2020. As discussed above in more detail, On October&nbsp;2, 2020 the Company consummated the Initial Public Offering of 22,500,000 Units, and issued an additional 1,275,000 Units on October&nbsp;14, 2020 pursuant to the partial exercise of underwriters&#x2019; over-allotment option. Simultaneously with the closing of the Initial Public Offering on October&nbsp;2, 2020, the Company consummated the sale of Private Warrants and Private Units in a private placement to the Sponsor. In connection with the partial exercise of underwriters&#x2019; over-allotment option on October&nbsp;14, 2020, the Company also issued an additional 6,375 Units to the underwriters for an aggregate of 118,875 Units and the Sponsor forfeited 525,000 Founder Shares.</font> </p> <p style="margin:0pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">.</font> </p><div /></div> </div> <div> <div> <p style="margin:0pt 0pt 12pt;font-family:Times New Roman,Times,serif;font-weight:bold;font-size: 10pt;"> <font style="display:inline;">Use of estimates</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">The preparation of financial statements in conformity with GAAP requires 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 periods.</font> </p> <p style="margin:0pt 0pt 12pt;text-indent:36pt;text-align:justify;text-justify:inter-ideograph;font-family:Times New Roman,Times,serif;font-size: 10pt;"> <font style="display:inline;">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.</font> </p><div /></div> </div> P10Y 4545455 4891304 Same balances as of July 1, 2020. Includes 525,000 shares of Class B common stock that were forfeited upon partial exercise of over-allotment option by the underwriters on October 14, 2020. 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3 Months Ended
Sep. 30, 2020
Nov. 10, 2020
Document Information [Line Items]    
Document Type 10-Q  
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Document Period End Date Sep. 30, 2020  
Entity Registrant Name FG New America Acquisition Corp.  
Entity Current Reporting Status No  
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 0001818502  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q3  
Amendment Flag false  
Class A Common Stock    
Document Information [Line Items]    
Title of 12(b) Security Class A common stock, par value $0.0001 per share  
Trading Symbol FGNA  
Security Exchange Name NYSE  
Entity Common Stock, Shares Outstanding   24,356,375
Class B Common Stock    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   5,943,750
Units    
Document Information [Line Items]    
Title of 12(b) Security Units, each consisting of one share of Class A common stock and one-half of one redeemable warrant  
Trading Symbol FGNA.U  
Security Exchange Name NYSE  
Warrants    
Document Information [Line Items]    
Title of 12(b) Security Warrants, each exercisable for one share of Class A common stock  
Trading Symbol FGNA WS  
Security Exchange Name NYSE  
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Balance Sheet
Sep. 30, 2020
USD ($)
Current assets  
Deferred offering costs $ 1,608,028
Other deferred expenses 323,237
Cash 27,102
Total current assets 1,958,367
TOTAL ASSETS 1,958,367
Current liabilities  
Accrued offering costs 1,505,130
Accounts payable 324,237
Notes payable 100,000
Total current liabilities 1,929,367
TOTAL LIABILITIES 1,929,367
STOCKHOLDERS' EQUITY  
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding Class A common stock, $0.0001 par value; 380,000,000 shares authorized; none issued and outstanding
Additional paid-in capital 29,353
Accumulated deficit (1,000)
Total Stockholder's Equity 29,000
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY 1,958,367
Class A Common Stock  
STOCKHOLDERS' EQUITY  
Common Stock
Class B Common Stock  
STOCKHOLDERS' EQUITY  
Common Stock $ 647
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Sep. 30, 2020
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shares
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Preferred stock, shares authorized 1,000,000
Preferred stock, shares issued 0
Preferred stock, shares outstanding 0
Class A Common Stock  
Common stock, par value | $ / shares $ 0.0001
Common stock, shares authorized 380,000,000
Common stock, shares issued 0
Common stock, shares outstanding 0
Class B Common Stock  
Common stock, par value | $ / shares $ 0.0001
Common stock, shares authorized 20,000,000
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Common stock, shares outstanding 6,468,750
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Statement of Operations - USD ($)
3 Months Ended
Sep. 30, 2020
Sep. 30, 2020
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Net Loss $ (1,000) $ (1,000)
Weighted average common shares outstanding    
Basic and diluted 4,891,304 4,545,455
Basic and diluted net loss per share $ (0.0002) $ (0.0002)
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Statement of Operations (Parenthetical)
3 Months Ended
Sep. 30, 2020
shares
Number of shares subject to forfeiture (in shares) 843,750
Over-allotment Option  
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Statement of Changes in Stockholders' Equity - 3 months ended Sep. 30, 2020 - USD ($)
Common Stock
Class B Common Stock
Additional Paid-in Capital
Accumulated Deficit
Total
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Net loss     (1,000) (1,000)
Balance at the ending at Sep. 30, 2020 $ 647 $ 29,353 $ (1,000) $ 29,000
Balance at the ending (in shares) at Sep. 30, 2020 6,468,750      
[1] Same balances as of July 1, 2020.
[2] Includes 525,000 shares of Class B common stock that were forfeited upon partial exercise of over-allotment option by the underwriters on October 14, 2020.
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Statement of Changes in Stockholders' Equity (Parenthetical)
Oct. 14, 2020
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Class B Common Stock | Subsequent Event  
Number of shares forfeited (in shares) 525,000
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Statement of Cash Flows
3 Months Ended
Sep. 30, 2020
USD ($)
Cash Flows from Operating Activities:  
Net loss $ (1,000)
Changes in operating assets and liabilities:  
Other deferred expenses (323,237)
Accounts payable 324,237
Net cash provided by operating activities 0
Cash Flows from Financing Activities:  
Proceeds from promissory note 100,000
Proceeds from sale of shares of common stock to initial shareholder 30,000
Payment of offering costs (102,898)
Net cash provided by financing activities 27,102
Net increase in cash 27,102
Cash at beginning of period 0
Cash at end of period 27,102
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Accrual of offering costs $ 1,505,130
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DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS
3 Months Ended
Sep. 30, 2020
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS.  
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

FG New America Acquisition Corp. (the “Company”) is a blank check company incorporated in Delaware on June 24, 2020. The Company was formed for the purpose of merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities (“Business Combination”).

Although the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the Company intends to focus on businesses in the financial technology industry. 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, 2020, the Company had not yet commenced any operations. All activity through September 30, 2020 relates to the Company’s formation and the initial public offering (“Initial Public Offering”), which is described below. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate nonoperating 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 September 29, 2020. On October 2, 2020 the Company consummated the Initial Public Offering of 22,500,000 units at $10.00 per unit, (the “Units” and, with respect to the shares of Class A common stock included in the Units sold, the “Public Shares”) generating gross proceeds of $225,000,000, which is discussed in Note 3. In connection with the Initial Public Offering, the underwriters were granted an option to purchase up to an additional 3,375,000 Units to cover over-allotments, if any. On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units, generating gross proceeds of $12,750,000. In connection with the partial exercise of the over-allotment option by the underwriters, the Company’s sponsor, FG New America Investors LLC (the “Sponsor”), forfeited 525,000 shares of Class B common stock on October 14, 2020.

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of i) 3,848,750 $11.50 exercise price warrants (the “$11.50 Private Warrants”) at a price of $1.00 per $11.50 Private Warrant, ii) the sale of 1,512,500 $15.00 exercise price warrants (the “$15 Private Warrants”, and together with $11.50 Private Warrants the “Private Warrants”) at a price of $0.10 per $15 Private Warrant, and iii) the sale of 462,500 units at $10.00 per unit (the “Private Units”) in a private placement to the Sponsor. Each Private Unit consists of one share of Class A common stock and one-half of one non-redeemable warrant (“Private Unit Warrant”). Each whole Private Unit Warrant will entitle the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share.

Initial Public Offering costs amounted to $1,608,028 consisting of $1,000,000 of underwriting fees, and $608,028 of other offering costs. These costs are deferred as of September 30, 2020. In addition, underwriters also received an aggregate of 118,875 Units, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account (as defined below). In addition to the offering costs, after the closing of the Initial Public Offering on Oct 2, 2020 the Company also paid $300,037 for directors and officers insurance coverage.

Following the closing of the Initial Public Offering and the private placements of Private Warrants and Private Units on October 2, 2020, as well as the closing of the over-allotment option on October 14, 2020, an amount of $243,375,000 from the net proceeds of the sale of Units in the Initial Public Offering (including proceeds from the partial exercise of the over-allotment option) and the sale of Private Warrants and Private Units was placed in a trust account (“Trust Account”) that will be 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 185 days or less, or in any open-ended investment company that holds itself out as a money market fund meeting the conditions of Rule 2a‑7 of the Investment Company Act, as determined by the Company, until the earlier of: (i) the consummation of a Business Combination or (ii) the distribution of the funds in the Trust Account to the Company’s stockholders, as described below.

The Units are listed on the New York Stock Exchange (“NYSE”). The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and sale of the Private Warrants and Private Units, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. NYSE rules provide that the Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net assets held in the Trust Account (net of amounts disbursed to management for working capital purposes). The Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target 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”). There is no assurance that the Company will be able to successfully effect a Business Combination.

The Company will provide its stockholders with the opportunity to redeem all or a portion of their Public Shares upon the completion of a Business Combination either (i) in connection with a stockholder meeting called to approve the Business Combination or (ii) by means of a tender offer. In connection with a proposed Business Combination, the Company may seek stockholder approval of a Business Combination at a meeting called for such purpose at which stockholders may seek to redeem their shares, regardless of whether they vote for or against the proposed Business Combination.

The Company will proceed with a Business Combination only if the Company has net tangible assets of at least $5,000,001 upon or immediately prior to such consummation of a Business Combination and, if the Company seeks stockholder approval, a majority of the outstanding shares voted are voted in favor of the Business Combination.

If the Company seeks stockholder approval of a Business Combination and it does not conduct redemptions pursuant to the tender offer rules, the Company’s amended and restated certificate of incorporation (the “Charter”) provides that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder 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 seeking redemption rights with respect to 15% or more of the Public Shares without the Company’s prior written consent.

The holders of Public Shares are entitled to redeem their Public Shares for a pro rata portion of the amount then in the Trust Account (including any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to pay its tax obligations). There will be no redemption rights upon the completion of a Business Combination with respect to the Company’s warrants. Following the consummation of the Initial Public Offering on Oct 2, 2020, a portion of the Public Shares will be recorded at redemption value and classified as temporary equity, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity” in order for the Company to maintain net tangible assets of at least $5,000,001.

If a stockholder vote is not required and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its Charter, offer such redemption pursuant to the tender offer rules of the U.S. Securities and Exchange Commission (“SEC”), and file tender offer documents containing substantially the same information as would be included in a proxy statement with the SEC prior to completing a Business Combination.

The Sponsor, officers, directors and advisors (the “Initial Stockholders”) have agreed (a) to vote their Founder Shares (as defined in Note 5) as well as any shares of Class A common stock underlying the Private Units, and any Public Shares purchased during or after the Initial Public Offering in favor of a Business Combination, (b) not to propose an amendment to the Charter with respect to the Company’s pre-Business Combination activities prior to the consummation of a Business Combination unless the Company provides dissenting public stockholders with the opportunity to redeem their Public Shares in conjunction with any such amendment; (c) not to redeem any shares (including the Founder Shares as well as any shares of Class A common stock underlying the Private Units) into the right to receive cash from the Trust Account in connection with a stockholder vote to approve a Business Combination (or to sell any shares in a tender offer in connection with a Business Combination if the Company does not seek stockholder approval in connection therewith) or a vote to amend the provisions of the Charter relating to stockholders’ rights of pre-Business Combination activity and (d) that the Founder Shares, the Private Units and Private Warrants (including underlying securities) shall not participate in any liquidating distributions upon winding up if a Business Combination is not consummated. However, the Initial Stockholders will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares purchased during or after the Initial Public Offering if the Company fails to complete its Business Combination.

The Company has until 24 months from the closing of the Initial Public Offering to consummate a Business Combination (as such period may be extended pursuant to the Charter, 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 no more than ten business days thereafter, redeem 100% of the outstanding Public Shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned (net of taxes payable and less interest to pay dissolution expenses up to $100,000), divided by the number of then outstanding Public Shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as promptly as reasonably possible following such redemption, subject to the approval of the remaining stockholders and the Company’s board of directors, proceed to commence a voluntary liquidation and thereby a formal dissolution of the Company, subject in each case to its obligations to provide for claims of creditors and the requirements of applicable law. There will be no redemption rights or liquidating distributions with respect to the Company’s warrants, which will expire worthless if the Company fails to complete its initial Business Combination within the Combination Period.

The Sponsor has agreed that it will be liable to the Company, if and to the extent any claims by a vendor 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 amounts in the Trust Account to below $10.25 per share (but only $10.00 per share for the Units sold pursuant to the underwriters’ over-allotment option), except as to any 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 underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). 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, prospective target businesses or 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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation

The accompanying financial statements are presented in U.S. Dollars and conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC.

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 auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s 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 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 periods.

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.

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 did not have any cash equivalents as of September 30, 2020.

Deferred Offering costs

Deferred offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the Initial Public Offering and that are charged to stockholders equity upon the completion of the Initial Public Offering. As of September 30, 2020, deferred offering costs amounted to $1,608,028 (including $1,000,000 of underwriting fees), which were charged to stockholders’ equity upon the completion of Initial Public Offering on October 2, 2020. In addition, underwriters also received an aggregate of 118,875 Units at closing of the Initial Public Offering and the over-allotment option, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account.

Income taxes

The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits as of September 30, 2020 and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

Net loss per share

Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period, excluding shares of common stock subject to forfeiture by the Initial Stockholders. As of September 30, 2020 weighted average shares were reduced for the effect of an aggregate of 843,750 shares that were subject to forfeiture by Initial Stockholders if the over-allotment option is not exercised by the underwriters (see Note 5). In connection with the partial exercise of the over-allotment option by the underwriters, the Sponsor actually forfeited 525,000 shares of Class B common stock on October 14, 2020. At September 30, 2020, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share in the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the period presented.

Fair value of financial instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Recently issued accounting standards

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

 

XML 22 R11.htm IDEA: XBRL DOCUMENT v3.20.2
INITIAL PUBLIC OFFERING
3 Months Ended
Sep. 30, 2020
INITIAL PUBLIC OFFERING  
INITIAL PUBLIC OFFERING

NOTE 3. INITIAL PUBLIC OFFERING

The registration statement for the Company’s Initial Public Offering was declared effective on September 29, 2020. On October 2, 2020, the Company consummated the Initial Public Offering of 22,500,000 Units at a purchase price of $10.00 per Unit generating gross proceeds of $225,000,000 from the sale of the Units. Each Unit  consists of one share of Class A common stock and one-half of one redeemable warrant (“Public Warrant”). Each whole Public Warrant will entitle the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share (see Note 7). On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units, generating additional gross proceeds of $12,750,000.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.20.2
PRIVATE PLACEMENT
3 Months Ended
Sep. 30, 2020
PRIVATE PLACEMENT  
PRIVATE PLACEMENT

NOTE 4. PRIVATE PLACEMENT

On October 2, 2020 simultaneously with the closing of the Initial Public Offering, the Sponsor purchased an aggregate of 3,848,750 $11.50 Private Warrants at a price of $1.00 per $11.50 Private Warrant, 1,512,500 $15 Private Warrants at a price of $0.10 per $15 Private Warrant, and 462,500 Private Units at a price of $10.00 per Private Unit, in each case, from the Company in a private placement. The aggregate gross proceeds from the sale of Private Warrants and Private Units were $8,625,000, part of which was placed in the Trust Account along with the Initial Public Offering gross proceeds. If the Company does not complete a Business Combination within the Combination Period, the Private Warrants and the Private Unit Warrants will expire worthless. The Private Warrants and the Private Unit Warrants are non-redeemable for cash and exercisable on a cashless basis so long as they are held by the Initial Stockholders or the permitted transferees. Each Private Warrant and Private Unit Warrant will entitle the holder to purchase one share of common stock at its respective exercise price.

Also, simultaneously with the closing of the Initial Public Offering on October 2, 2020, the Company completed the private placement of an aggregate of 112,500 Units to the underwriters. In connection with the exercise of underwriters’ over-allotment option on October 14, 2020, the Company also issued an additional 6,375 Units to the underwriters for an aggregate of 118,875 Units.

XML 24 R13.htm IDEA: XBRL DOCUMENT v3.20.2
RELATED PARTY TRANSACTIONS
3 Months Ended
Sep. 30, 2020
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS

NOTE 5. RELATED PARTY TRANSACTIONS

Founder Shares

On July 13, 2020, the Company issued an aggregate of 6,468,750 shares of Class B common stock (the “Founder Shares”) to the Initial Stockholders for an aggregate purchase price of $30,000 in cash. On August 7, 2020, the Sponsor transferred an aggregate of 1,250,000 Founder Shares to members of the Company’s management and board of directors, resulting in the Sponsor holding 5,218,750 Founder Shares. As of September 30, 2020, the Founder Shares included an aggregate of up to 843,750 shares subject to forfeiture by the Initial Stockholders to the extent that the underwriters’ over-allotment option is not exercised in full or in part, so that the Initial Stockholders will collectively own 20% of the Company’s issued and outstanding shares after the Initial Public Offering (excluding the securities underlying the Private Warrants, the Private Units and the Units issued to underwriters). In connection with the partial exercise of the over-allotment option by the underwriters on October 14, 2020, the Sponsor forfeited 525,000 Founder Shares on October 14, 2020.

The Initial Stockholders have agreed not to transfer, assign or sell any of the Founder Shares (except to certain permitted transferees) until, with respect to 50% of the Founder Shares, the earlier of (i) twelve months after the date of the consummation of a Business Combination, or (ii) the date on which the closing price of the Company’s Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations and recapitalizations) for any 20 trading days within any 30‑trading day period commencing after a Business Combination, with respect to the remaining 50% of the Founder Shares, 12 months after the date of the consummation of a Business Combination, or earlier, in each case, if, subsequent to a Business Combination, the Company consummates a subsequent liquidation, merger, stock exchange or other similar transaction which results in all of the Company’s stockholders having the right to exchange their Public Shares for cash, securities or other property.

Promissory Note

On July 13, 2020, the Company issued a non-interest bearing unsecured Promissory Note to the Sponsor, pursuant to which the Company may borrow up to an aggregate principal amount of $300,000 from time to time. As of September 30, 2020, there was $100,000 balance outstanding under the Promissory Note. The Promissory Note was fully paid off at the completion of the Initial Public Offering on October 2, 2020.

Administrative Services Agreement

The Company entered into an administrative services agreement (the “Administrative Services Agreement”) with the Sponsor on September 29, 2020 whereby the Sponsor will perform certain services for the Company for a monthly fee of $10,000.

XML 25 R14.htm IDEA: XBRL DOCUMENT v3.20.2
COMMITMENTS AND CONTINGENCIES
3 Months Ended
Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES  
COMMITMENTS AND CONTINGENCIES

NOTE 6. COMMITMENTS AND CONTINGENCIES

Registration Rights

Pursuant to a registration rights agreement entered into on September 29, 2020, the holders of the Founder Shares, the Private Units and Private Warrants (and their underlying securities) are entitled to registration rights. The Company will bear the expenses incurred in connection with the filing of any registration statements pursuant to such registration rights.

Underwriting Agreement

The Company granted the underwriters a 45‑day option to purchase up to 3,375,000 additional Units to cover over-allotments at the Initial Public Offering price. On October 14, 2020, the underwriters partially exercised the over-allotment option and purchased an additional 1,275,000 Units.

Subject to certain conditions, on September 29, 2020 the Company granted underwriters for a period beginning on the closing of the Initial Public Offering and ending on the later of 24 months after the closing of the Initial Public Offering and 12 months after the consummation of our Business Combination, a right of first refusal to act as (i) exclusive financial advisor in connection with all of the Company’s proposed business combinations for a fee of up to 3.5% of the proceeds of the Initial Public Offering (subject to the Company’s right to allocate up to 50% of such fee to another financial institution or extinguish such amount in Company’s sole discretion), and (ii) sole investment banker, sole book-runner and/or sole placement agent, at underwriters’ sole discretion, for each and every future public and private equity and debt offering, including all equity linked financings, during such period for the Company or any successor to it or any of its subsidiaries, on terms agreed to by both the Company and underwriters in good faith.

XML 26 R15.htm IDEA: XBRL DOCUMENT v3.20.2
STOCKHOLDERS' EQUITY
3 Months Ended
Sep. 30, 2020
STOCKHOLDERS' EQUITY  
STOCKHOLDERS' EQUITY

NOTE 7. STOCKHOLDERS’ EQUITY

Preferred Stock — The Company is authorized to issue 1,000,000 shares of preferred stock, par value $0.0001 per share, with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of September 30, 2020, there were no shares of preferred stock issued or outstanding.

Class A Common Stock — The Company is authorized to issue 380,000,000 shares of Class A common stock, par value $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each share. As of September 30, 2020, there were no shares of Class A common stock issued and outstanding. Following the closing of the Initial Public Offering and the private placement of Private Units on October 2, 2020, as well as the closing of the over-allotment option on October 14, 2020, there were 1,069,181 shares of Class A common stock issued and outstanding, excluding 23,287,194 shares subject to possible redemption.

Class B Common Stock — The Company is authorized to issue 20,000,000 shares of Class B common stock, par value $0.0001 per share. On July 13, 2020, the Company issued an aggregate of 6,468,750 shares of Class B common stock as Founder Shares to the Initial Stockholders for an aggregate purchase price of $30,000 in cash. On August 7, 2020, the Sponsor transferred an aggregate of 1,250,000 Founder Shares to members of the Company’s management and board of directors, resulting in the Sponsor holding 5,218,750 Founder Shares. As of September 30, 2020, the Founder Shares included an aggregate of up to 843,750 shares subject to forfeiture by the Initial Stockholders to the extent that the underwriters’ over-allotment is not exercised in full or in part, so that the Initial Stockholders will collectively own 20% of the Company’s issued and outstanding shares after the Initial Public Offering (excluding the securities underlying the Private Warrants, the Private Units and the Units issued to underwriters). In connection with the partial exercise of the over-allotment option by the underwriters on October 14, 2020, the Sponsor forfeited 525,000 Founder Shares on October 14, 2020.

Holders of the Company’s Class B common stock are entitled to one vote for each share. With respect to any matter submitted to a vote of the Company’s stockholders, including any vote in connection with the Business Combination, holders of the Class A common stock and holders of the Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders, except as required by law.

The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the Business Combination, or earlier at the option of the holders, on a one-for-one basis, subject to adjustment for stock splits, stock dividends, reorganizations, recapitalizations and the like, and subject to further adjustment as described herein. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of the Business Combination, including pursuant to a specified future issuance, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the then-outstanding shares of Class B common stock agree to waive such adjustment with respect to any such issuance or deemed issuance, including a specified future issuance) such that: i) the numerator shall be equal to the sum of (A) 25% of all shares of Class A common stock issued or issuable (upon the conversion or exercise of any equity-linked securities or otherwise) by the Company, related to or in connection with the consummation of the Business Combination (excluding any securities issued or issuable to any seller in the Business Combination) plus (B) the number of shares of Class B common stock issued and outstanding prior to the closing of the Business Combination; and ii) the denominator shall be the number of shares of Class B common stock issued and outstanding prior to the closing of the Business Combination.

Warrants — Public Warrants may only be exercised for a whole number of shares. No fractional shares will be issued upon exercise of the Public Warrants. Each whole Public Warrant will entitle the holder to purchase one share of Class A common stock at an exercise price of $11.50 per share, and will become exercisable on the later of 30 days after the completion of the Business Combination or 12 months from the closing of the Initial Public Offering. The Public Warrants will expire on the fifth anniversary of the completion of the Business Combination, or earlier upon redemption or liquidation. The Company may redeem the Public Warrants i) at a redemption price of $0.01 per warrant, ii) at any time after the Public Warrants become exercisable, iii) upon a minimum of 30 days’ prior written notice of redemption, iv) if, and only if, the last sales price of Company’s Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 trading day period commencing after the date the Public Warrants become exercisable and ending three business days before Company sends the notice of redemption, and v) if, and only if, there is a current registration statement in effect with respect to the shares of Class A common stock underlying such Public Warrants at the time of redemption and for the entire 30‑day trading period referred to above and continuing each day thereafter until the date of redemption.

The $11.50 Private Warrants have terms similar to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the $11.50 Private Warrants are issued as a whole warrant having one common stock underlying each $11.50 Private Warrant (as compared to one-half of one Public Warrant included in each Unit sold in the Initial Public Offering), will be non-redeemable and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, $11.50 Private Warrants and the shares issuable upon the exercise of the $11.50 Private Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.

The $15 Private Warrants entitle the holder to purchase one share of Class A common stock at an exercise price of $15.00 per each share, will be exercisable for a period of 10 years from the date of Business Combination, will be non-redeemable, and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, $15 Private Warrants and the shares issuable upon the exercise of the $15 Private Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.

The Private Unit Warrants have terms similar to the Public Warrants underlying the Units sold in the Initial Public Offering, except that the Private Unit Warrants are non-redeemable and may be exercised on a cashless basis so long as they continue to be held by the Initial Stockholders or their permitted transferees. Additionally, Private Unit Warrants and the shares issuable upon the exercise of the Private Unit Warrants will not be transferable, assignable or salable until after the completion of a Business Combination, subject to certain limited exceptions.

The exercise price and number of ordinary shares issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary dividend or recapitalization, reorganization, merger or consolidation. However, except as described above, the warrants will not be adjusted for issuances of Class A common stock at a price below its exercise price. Additionally, in no event will the Company be required to net cash settle the warrants. If the Company is unable to complete a Business Combination within the Combination Period and the Company liquidates the funds held in the Trust Account, holders of warrants will not receive any of such funds with respect to their warrants, nor will they receive any distribution from the Company’s assets held outside of the Trust Account with respect to such warrants. Accordingly, the warrants may expire worthless.

XML 27 R16.htm IDEA: XBRL DOCUMENT v3.20.2
SUBSEQUENT EVENTS
3 Months Ended
Sep. 30, 2020
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

NOTE 8. SUBSEQUENT EVENTS

The registration statement for the Company’s Initial Public Offering was declared effective on September 29, 2020. As discussed above in more detail, On October 2, 2020 the Company consummated the Initial Public Offering of 22,500,000 Units, and issued an additional 1,275,000 Units on October 14, 2020 pursuant to the partial exercise of underwriters’ over-allotment option. Simultaneously with the closing of the Initial Public Offering on October 2, 2020, the Company consummated the sale of Private Warrants and Private Units in a private placement to the Sponsor. In connection with the partial exercise of underwriters’ over-allotment option on October 14, 2020, the Company also issued an additional 6,375 Units to the underwriters for an aggregate of 118,875 Units and the Sponsor forfeited 525,000 Founder Shares.

.

XML 28 R17.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  
Basis of presentation

Basis of presentation

The accompanying financial statements are presented in U.S. Dollars and conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the SEC.

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 auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s 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 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 periods.

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.

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 did not have any cash equivalents as of September 30, 2020.

Deferred Offering costs

Deferred Offering costs

Deferred offering costs consist of underwriting, legal, accounting and other expenses incurred through the balance sheet date that are directly related to the Initial Public Offering and that are charged to stockholders equity upon the completion of the Initial Public Offering. As of September 30, 2020, deferred offering costs amounted to $1,608,028 (including $1,000,000 of underwriting fees), which were charged to stockholders’ equity upon the completion of Initial Public Offering on October 2, 2020. In addition, underwriters also received an aggregate of 118,875 Units at closing of the Initial Public Offering and the over-allotment option, with such Units restricted from sale until the closing of the Business Combination and with no redemption rights from the Trust Account.

Income taxes

Income taxes

The Company complies with the accounting and reporting requirements of ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if any, as income tax expense. There were no unrecognized tax benefits as of September 30, 2020 and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

Net loss per share

Net loss per share

Net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period, excluding shares of common stock subject to forfeiture by the Initial Stockholders. As of September 30, 2020 weighted average shares were reduced for the effect of an aggregate of 843,750 shares that were subject to forfeiture by Initial Stockholders if the over-allotment option is not exercised by the underwriters (see Note 5). In connection with the partial exercise of the over-allotment option by the underwriters, the Sponsor actually forfeited 525,000 shares of Class B common stock on October 14, 2020. At September 30, 2020, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares of common stock and then share in the earnings of the Company. As a result, diluted loss per share is the same as basic loss per share for the period presented.

Fair value of financial instruments

Fair value of financial instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

Recently issued accounting standards

Recently issued accounting standards

Management does not believe that any recently issued, but not yet effective, accounting pronouncements, if currently adopted, would have a material effect on the Company’s financial statements.

XML 29 R18.htm IDEA: XBRL DOCUMENT v3.20.2
DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS (Details) - USD ($)
3 Months Ended
Oct. 14, 2020
Oct. 14, 2020
Oct. 02, 2020
Sep. 30, 2020
Subsidiary, Sale of Stock [Line Items]        
Offering cost       $ 102,898
$11.50 Private Warrants        
Subsidiary, Sale of Stock [Line Items]        
Share price       $ 11.50
Exercise price of warrants (in dollars per share)       $ 11.50
$15 Private Warrants        
Subsidiary, Sale of Stock [Line Items]        
Number of shares issuable per warrant (in shares)       1
Class A Common Stock | $15 Private Warrants        
Subsidiary, Sale of Stock [Line Items]        
Share price       $ 15
Exercise price of warrants (in dollars per share)       $ 15
Number of shares issuable per warrant (in shares)       1
Subsequent Event        
Subsidiary, Sale of Stock [Line Items]        
Additional units issued to underwriters 118,875   118,875  
Payments for directors and officers insurance coverage     $ 300,037  
Investment of cash into trust account $ 243,375,000      
Subsequent Event | $11.50 Private Warrants        
Subsidiary, Sale of Stock [Line Items]        
Number of warrants to purchase the shares issued (in shares)     3,848,750  
Price of warrants     $ 1.00  
Exercise price of warrants (in dollars per share)     $ 11.50  
Subsequent Event | $15 Private Warrants        
Subsidiary, Sale of Stock [Line Items]        
Number of warrants to purchase the shares issued (in shares)     1,512,500  
Price of warrants     $ 0.10  
Exercise price of warrants (in dollars per share)     $ 15.00  
Subsequent Event | Class B Common Stock        
Subsidiary, Sale of Stock [Line Items]        
Number of shares forfeited (in shares) 525,000      
IPO        
Subsidiary, Sale of Stock [Line Items]        
Offering cost       $ 1,608,028
Cash underwriting fee       1,000,000
Other offering cost       $ 608,028
Percentage of aggregate fair market value of assets       80.00%
Ownership interest to be acquired on post-transaction company       50.00%
Minimum net tangible assets upon consummation of business combination       $ 5,000,001
Maximum percentage of shares that can be redeemed without prior consent of the Company       15.00%
Percentage of shares of stock the Company is obligated to redeem without consummating a business combination       100.00%
Interest to pay dissolution expenses       $ 100,000
Per share value of residual assets in trust account       $ 10.25
IPO | Subsequent Event | Class A Common Stock        
Subsidiary, Sale of Stock [Line Items]        
Number of shares issued     22,500,000  
Proceeds from issuance of shares     $ 225,000,000  
Share price     $ 10.00  
Exercise price of warrants (in dollars per share)     $ 11.50  
Number of shares in a unit     1  
Number of warrants in a unit     0.5  
Number of shares issuable per warrant (in shares)     1  
Over-allotment Option        
Subsidiary, Sale of Stock [Line Items]        
Per share value of residual assets in trust account       $ 10.00
Over-allotment Option | Subsequent Event        
Subsidiary, Sale of Stock [Line Items]        
Proceeds from issuance of shares $ 12,750,000      
Over-allotment Option | Subsequent Event | Class A Common Stock        
Subsidiary, Sale of Stock [Line Items]        
Number of shares issued 1,275,000      
Proceeds from issuance of shares $ 12,750,000      
Additional units agreed to be issued   3,375,000 3,375,000  
Private Placement | Subsequent Event        
Subsidiary, Sale of Stock [Line Items]        
Number of shares issued     462,500  
Share price     $ 10.00  
Number of warrants to purchase the shares issued (in shares)     462,500  
Price of warrants     $ 10.00  
Number of shares in a unit     1  
Number of warrants in a unit     0.5  
Number of shares issuable per warrant (in shares)     1  
Additional units issued to underwriters 6,375   112,500  
Private Placement | Subsequent Event | Class A Common Stock        
Subsidiary, Sale of Stock [Line Items]        
Exercise price of warrants (in dollars per share)     $ 11.50  
XML 30 R19.htm IDEA: XBRL DOCUMENT v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
3 Months Ended
Oct. 14, 2020
Oct. 02, 2020
Sep. 30, 2020
Subsidiary, Sale of Stock [Line Items]      
Offering cost     $ 102,898
Underwriting fees     $ 1,000,000
Number of shares subject to forfeiture (in shares)     843,750
Subsequent Event      
Subsidiary, Sale of Stock [Line Items]      
Additional units issued to underwriters 118,875 118,875  
IPO      
Subsidiary, Sale of Stock [Line Items]      
Offering cost     $ 1,608,028
Class B Common Stock | Subsequent Event      
Subsidiary, Sale of Stock [Line Items]      
Number of shares forfeited (in shares) 525,000    
XML 31 R20.htm IDEA: XBRL DOCUMENT v3.20.2
INITIAL PUBLIC OFFERING (Details) - Subsequent Event - USD ($)
Oct. 14, 2020
Oct. 02, 2020
IPO | Class A Common Stock    
Subsidiary, Sale of Stock [Line Items]    
Number of shares issued   22,500,000
Share price   $ 10.00
Proceeds from issuance of shares   $ 225,000,000
Number of shares in a unit   1
Number of warrants in a unit   0.5
Number of shares issuable per warrant (in shares)   1
Exercise price of warrants (in dollars per share)   $ 11.50
Over-allotment Option    
Subsidiary, Sale of Stock [Line Items]    
Proceeds from issuance of shares $ 12,750,000  
Over-allotment Option | Class A Common Stock    
Subsidiary, Sale of Stock [Line Items]    
Number of shares issued 1,275,000  
Proceeds from issuance of shares $ 12,750,000  
XML 32 R21.htm IDEA: XBRL DOCUMENT v3.20.2
PRIVATE PLACEMENT (Details) - USD ($)
Oct. 14, 2020
Oct. 02, 2020
Sep. 30, 2020
$11.50 Private Warrants      
Exercise price of warrants (in dollars per share)     $ 11.50
$15 Private Warrants      
Number of shares issuable per warrant (in shares)     1
Subsequent Event      
Additional units issued to underwriters 118,875 118,875  
Subsequent Event | $11.50 Private Warrants      
Number of warrants issued   3,848,750  
Price of warrants   $ 1.00  
Exercise price of warrants (in dollars per share)   $ 11.50  
Subsequent Event | $15 Private Warrants      
Number of warrants issued   1,512,500  
Price of warrants   $ 0.10  
Exercise price of warrants (in dollars per share)   $ 15.00  
Private Placement | Subsequent Event      
Number of warrants issued   462,500  
Price of warrants   $ 10.00  
Aggregate gross proceeds   $ 8,625,000  
Additional units issued to underwriters 6,375 112,500  
Number of shares issuable per warrant (in shares)   1  
XML 33 R22.htm IDEA: XBRL DOCUMENT v3.20.2
RELATED PARTY TRANSACTIONS - Founder share (Details) - USD ($)
3 Months Ended
Aug. 07, 2020
Jul. 13, 2020
Sep. 30, 2020
Related Party Transaction [Line Items]      
Proceeds from issuance of Class B common stock to Sponsor     $ 30,000
Number of shares subject to forfeiture (in shares)     843,750
Class B Common Stock      
Related Party Transaction [Line Items]      
Common stock, shares subject to forfeiture, as a percent of issued and outstanding shares (as a percent)     20.00%
Class B Common Stock | Founder Shares      
Related Party Transaction [Line Items]      
Proceeds from issuance of Class B common stock to Sponsor   $ 30,000  
Number of shares transferred to Company's management and board of directors 1,250,000    
Number of shares held 5,218,750    
Class B Common Stock | Founder Shares | Sponsor      
Related Party Transaction [Line Items]      
Common shares issued to initial shareholder (in shares)   6,468,750  
Proceeds from issuance of Class B common stock to Sponsor   $ 30,000  
Number of shares transferred to Company's management and board of directors 1,250,000    
Number of shares held 5,218,750    
Number of shares subject to forfeiture (in shares)     843,750
Percentage of issued and outstanding shares after the Initial Public Offering collectively held by initial stockholders     20.00%
Number of shares forfeited (in shares)     525,000
Threshold percentage of shares accepted to not transfer, assign or sell after the completion of the initial business combination     50.00%
Threshold period for not to transfer, assign or sell any of their shares or warrants after the completion of the initial business combination     12 months
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)     $ 12.00
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination     20 days
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination     30 days
XML 34 R23.htm IDEA: XBRL DOCUMENT v3.20.2
RELATED PARTY TRANSACTIONS - Promisary note administrative support agreement (Details) - USD ($)
Sep. 30, 2020
Sep. 29, 2020
Jul. 13, 2020
Related Party Transaction [Line Items]      
Notes payable $ 100,000    
Promissory Note      
Related Party Transaction [Line Items]      
Maximum borrowing capacity of related party promissory note     $ 300,000
Outstanding Balance $ 100,000    
Administrative Services Agreement      
Related Party Transaction [Line Items]      
Expenses per month   $ 10,000  
XML 35 R24.htm IDEA: XBRL DOCUMENT v3.20.2
COMMITMENTS AND CONTINGENCIES (Details) - shares
Oct. 14, 2020
Oct. 14, 2020
Oct. 02, 2020
Sep. 29, 2020
Subsidiary, Sale of Stock [Line Items]        
Threshold period after the closing of the Initial Public Offering for underwriters right to first refusal to act as exclusive financial advisor       24 months
Threshold period after the consummation of Business Combination for underwriters right to first refusal to act as exclusive financial advisor       12 months
Maximum underwriter's fee (as a percent)       3.50%
Maximum of underwriter's fee to be allocated to another financial institution (as a percent)       50.00%
Over-allotment Option | Class A Common Stock | Subsequent Event        
Subsidiary, Sale of Stock [Line Items]        
Additional units agreed to be issued   3,375,000 3,375,000  
Number of shares issued 1,275,000      
XML 36 R25.htm IDEA: XBRL DOCUMENT v3.20.2
STOCKHOLDERS' EQUITY - Preferred Stock (Details)
Sep. 30, 2020
$ / shares
shares
STOCKHOLDERS' EQUITY  
Preferred stock, shares authorized 1,000,000
Preferred stock, par value | $ / shares $ 0.0001
Preferred stock, shares issued 0
Preferred stock, shares outstanding 0
XML 37 R26.htm IDEA: XBRL DOCUMENT v3.20.2
STOCKHOLDERS' EQUITY - Common Stock (Details) - USD ($)
3 Months Ended 4 Months Ended
Oct. 14, 2020
Aug. 07, 2020
Jul. 13, 2020
Sep. 30, 2020
Oct. 14, 2020
Class of Stock [Line Items]          
Proceeds from Issuance of Common Stock       $ 30,000  
Promissory Note          
Class of Stock [Line Items]          
Maximum Borrowing Capacity Of Related Party Promissory Note     $ 300,000    
Class A Common Stock          
Class of Stock [Line Items]          
Common stock, shares authorized       380,000,000  
Common stock, par value       $ 0.0001  
Common stock, number of votes per share       $ 1  
Percentage of shares issued or issuable (as a percent)         25.00%
Common stock, shares issued       0  
Common stock, shares outstanding       0  
Class A Common Stock | Subsequent Event          
Class of Stock [Line Items]          
Common stock, shares issued 1,069,181       1,069,181
Common stock, shares outstanding 1,069,181       1,069,181
Common stock, shares subject to forfeiture (in shares) 23,287,194       23,287,194
Class B Common Stock          
Class of Stock [Line Items]          
Common stock, shares authorized       20,000,000  
Common stock, par value       $ 0.0001  
Common stock, shares issued       6,468,750  
Common stock, shares outstanding       6,468,750  
Common stock, shares subject to forfeiture (in shares)       843,750  
Common stock, shares subject to forfeiture, as a percent of issued and outstanding shares (as a percent)       20.00%  
Class B Common Stock | Founder Shares          
Class of Stock [Line Items]          
Common stock, shares issued     6,468,750    
Proceeds from Issuance of Common Stock     $ 30,000    
Number of shares transferred to Company's management and board of directors   1,250,000      
Number of shares held   5,218,750      
Class B Common Stock | Subsequent Event          
Class of Stock [Line Items]          
Number of shares forfeited (in shares) 525,000        
Class B Common Stock | Subsequent Event | Founder Shares          
Class of Stock [Line Items]          
Number of shares forfeited (in shares) 525,000        
XML 38 R27.htm IDEA: XBRL DOCUMENT v3.20.2
STOCKHOLDERS' EQUITY - Warrants (Details)
3 Months Ended
Sep. 30, 2020
$ / shares
shares
Class of Warrant or Right [Line Items]  
Stock price trigger for redemption of warrants (in dollars per share) $ 18.00
Threshold trading days for redemption of warrants 3 days
Threshold consecutive trading days for redemption of warrants 30 days
Threshold number of trading days before sending notice of redemption to warrant holders 20 days
Public Warrants  
Class of Warrant or Right [Line Items]  
Number of warrants in a unit | shares 1
Public Warrants | Class A Common Stock  
Class of Warrant or Right [Line Items]  
Number of shares issuable per warrant (in shares) | shares 1
Exercise price of warrants (in dollars per share) $ 11.50
Redemption price per warrant (in dollars per share) 0.01
$11.50 Private Warrants  
Class of Warrant or Right [Line Items]  
Exercise price of warrants (in dollars per share) 11.50
Redemption price per warrant (in dollars per share) 11.50
Newly Issued Price (in dollars per share) 11.50
$11.50 Private Warrants | Maximum  
Class of Warrant or Right [Line Items]  
Exercise price of warrants (in dollars per share) $ 11.50
$15 Private Warrants  
Class of Warrant or Right [Line Items]  
Number of shares issuable per warrant (in shares) | shares 1
$15 Private Warrants | Class A Common Stock  
Class of Warrant or Right [Line Items]  
Number of shares issuable per warrant (in shares) | shares 1
Exercise price of warrants (in dollars per share) $ 15
Exercisable term of warrants 10 years
Newly Issued Price (in dollars per share) $ 15
Adjustment of exercise price of warrants based on market value and newly issued price (as a percent) 15.00%
XML 39 R28.htm IDEA: XBRL DOCUMENT v3.20.2
SUBSEQUENT EVENTS (Details) - Subsequent Event - shares
Oct. 14, 2020
Oct. 02, 2020
Subsequent Event [Line Items]    
Additional units issued to underwriters 118,875 118,875
Private Placement    
Subsequent Event [Line Items]    
Number of shares issued   462,500
Additional units issued to underwriters 6,375 112,500
Class A Common Stock | IPO    
Subsequent Event [Line Items]    
Number of shares issued   22,500,000
Class A Common Stock | Over-allotment Option    
Subsequent Event [Line Items]    
Number of shares issued 1,275,000  
Class B Common Stock    
Subsequent Event [Line Items]    
Number of shares forfeited (in shares) 525,000  
Founder Shares | Class B Common Stock    
Subsequent Event [Line Items]    
Number of shares forfeited (in shares) 525,000  
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