Quarterly report pursuant to Section 13 or 15(d)

Trust Account and Fair Value Measurement

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Trust Account and Fair Value Measurement
6 Months Ended
Jun. 30, 2018
Trust Account and Fair Value Measurement [Abstract]  
TRUST ACCOUNT AND FAIR VALUE MEASUREMENT

NOTE 5 – TRUST ACCOUNT AND FAIR VALUE MEASUREMENT

 

The Company complies with FASB ASC 820, Fair Value Measurements, for its financial assets and liabilities that are re-measured and reported at fair value at each reporting period, and non-financial assets and liabilities that are re-measured and reported at fair value at least annually.

 

Upon the closing of the Public Offering and the private placement, a total of $300,000,000 was deposited into the Trust Account. All proceeds in the Trust Account may be invested in either U.S. government treasury bills with a maturity of 180 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act of 1940, as amended, and that invest solely in U.S. government treasury obligations.

 

At June 30, 2018 and December 31, 2017, the proceeds of the Trust Account were invested in U.S. government treasury bills. U.S. government treasury bills held at June 30, 2018 mature in August 2018 and yield interest of approximately 1.8%. The Company classifies its U.S. government treasury bills and equivalent securities as held-to-maturity in accordance with FASB ASC 320, “Investments – Debt and Equity Securities.” Held-to-maturity securities are those securities which the Company has the ability and intent to hold until maturity. Held-to-maturity U.S. government treasury bills are recorded at amortized cost on the accompanying June 30, 2018 and December 31, 2017 balance sheets and adjusted for the amortization of discounts.

 

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of June 30, 2018 and December 31, 2017 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. Since all of the Company’s permitted investments at June 30, 2018 and December 31, 2017 consist of U.S. government treasury bills or money market funds holding U.S. government treasury bills, fair values of its investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical assets or liabilities as follows:

 

                Quoted Price  
    Carrying           Prices in  
    value at
June 30,
    Gross Unrealized     Active Markets  
Description   2018     Holding Gain     (Level 1)  
Assets:                  
Cash and money market   $ 2,000       -     $ 2,000  
U.S. government treasury bills     301,330,000     $ 55,000       301,385,000  
total   $ 301,332,000     $ 55,000     $ 301,387,000  

 

                Quoted Price  
    Carrying           Prices in  
    value at December 31,     Gross Unrealized     Active Markets  
Description   2017     Holding Gain     (Level 1)  
Assets:                  
U.S. government treasury bills   $ 300,403,000     $ 18,000     $ 300,421,000  

 

The U.S. government treasury bills held at June 30, 2018 mature in August 2018. During the three and six months ended June 30, 2018, in April and May 2018, the Company withdrew an aggregate of approximately $1,427,000 from the trust including approximately $750,000 for working capital and $677,000 for payment of federal income and state franchise taxes, including estimated taxes.