Porch(PRCH) - 2020 Q3 - Quarterly Report

Financial Performance - The company incurred a net loss of approximately $3.1 million for the three months ended September 30, 2020, primarily due to general and administrative expenses[116] - The company generated non-operating income of approximately $1.0 million for the nine months ended September 30, 2020, from investments held in the trust account[117] - The ongoing COVID-19 pandemic may materially affect the company's ability to complete its initial business combination and its overall financial position[122] - The company incurred $30,000 and $90,000 for administrative support services for the three and nine months ended September 30, 2020, respectively[129] Initial Public Offering - The company completed its initial public offering on November 26, 2019, raising gross proceeds of $172.5 million from the sale of 17,250,000 units at $10.00 per unit[107] - The company borrowed $225,000 under a promissory note from its sponsor to cover IPO-related expenses, which was paid in full at the closing of the IPO on November 26, 2019[128] Business Combination - The company has a deadline of May 26, 2021, to complete its initial business combination, after which it will cease operations and redeem public shares if not completed[111] - The company has entered into a Merger Agreement with Porch.com, Inc., indicating a potential business combination[113] - The company expects to incur significant costs in pursuing its initial business combination plans[106] Liquidity and Capital Resources - As of September 30, 2020, the company had approximately $907,000 in its operating account and a working capital deficit of approximately $1.8 million[119] - The company has raised $5.7 million from the private placement of 5,700,000 warrants at $1.00 per warrant[108] - The company has a liquidity need that has been satisfied through various loans and proceeds from its initial public offering[121] Stock and Equity - As of September 30, 2020, the company had 16,038,695 shares of Class A common stock subject to conditional redemption, classified as temporary equity[132] - The company completed a private placement of warrants generating gross proceeds of $5.7 million, with each warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share[126] Accounting and Compliance - The company is evaluating the impact of ASU No. 2019-12 on its financial statements, which simplifies accounting for income taxes and is effective for fiscal years beginning after December 15, 2020[133] - The company did not have any off-balance sheet arrangements or long-term debt obligations as of September 30, 2020[135] - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[136] - The company intends to take advantage of the extended transition period provided in the JOBS Act, remaining an emerging growth company until certain revenue or market value thresholds are met[137]