0001719406 2019-03-31 0001719406 2019-01-01 2019-03-31 0001719406 2018-12-31 0001719406 2018-03-31 0001719406 2018-01-01 2018-03-31 0001719406 2019-05-15 0001719406 us-gaap:CommonStockMember 2019-01-01 2019-03-31 0001719406 us-gaap:CommonStockMember 2018-01-01 2018-03-31 0001719406 us-gaap:CommonStockMember 2018-12-31 0001719406 us-gaap:CommonStockMember 2019-03-31 0001719406 us-gaap:CommonStockMember 2017-12-31 0001719406 us-gaap:CommonStockMember 2018-03-31 0001719406 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0001719406 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-03-31 0001719406 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001719406 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0001719406 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001719406 us-gaap:AdditionalPaidInCapitalMember 2018-03-31 0001719406 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0001719406 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001719406 us-gaap:RetainedEarningsMember 2018-12-31 0001719406 us-gaap:RetainedEarningsMember 2019-03-31 0001719406 us-gaap:RetainedEarningsMember 2017-12-31 0001719406 us-gaap:RetainedEarningsMember 2018-03-31 0001719406 2017-12-31 0001719406 BRPAU:PromissoryNote1Member 2019-03-31 0001719406 BRPAU:PromissoryNote2Member 2019-03-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares 0.001 0.001 1000000 1000000 0.001 0.001 100000000 100000000 Big Rock Partners Acquisition Corp. 0001719406 10-Q 2019-03-31 false --12-31 Yes Non-accelerated Filer Q1 2019 Delaware 2017-09-18 true true false 9035500 50716 30193 48898 19114 1818 11079 267191 449374 71707751 70796159 71657035 70765966 494395 567410 48027 16311 446368 551099 1981037 1257410 1486642 690000 1380000 106642 64726709 64538743 71707751 70796159 5000005 5000006 5000005 2725 2794 2591 2606 5036213 4848178 5102443 5086951 -38932 149033 -105033 -89552 5000001 149033 -38932 4848178 5036213 2794 2725 0 0 6241203 6310461 0 0 0 0 2794297 2725039 2794297 2725039 163181 192374 -163181 -192374 382862 213569 0 -1599 382862 211970 219681 19596 31716 4115 187965 15481 187965 15481 2725039 2794297 2590985 2605782 69258 14797 -187966 -15477 69 15 -118035 -15492 -297696 -197817 31716 4115 -104731 -24667 29784 -19224 382862 213569 -508207 23134 181793 23134 690000 0 796642 -7500 0 7500 65000 0 861642 0 -9261 -182183 <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Big Rock Partners Acquisition
Corp. (the “Company”) is a blank check company incorporated in Delaware on September 18, 2017. The Company was formed
for the purpose of acquiring, through a merger, share exchange, asset acquisition, stock purchase, reorganization, recapitalization,
or other similar business transaction, one or more operating businesses or entities (a “Business Combination”). Although
the Company is not limited to a particular industry or geographic region for purposes of consummating a Business Combination, the
Company is focusing on businesses in the senior housing and care industry in the United States.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">All activity through March
31, 2019 relates to the Company’s formation, the initial public offering (the “Initial Public Offering”) of 6,900,000
units (the “Units”) that occurred on November 22, 2017, the simultaneous sale of 272,500 units (the “Private
Placement Units”) in a private placement to Big Rock Partners Sponsor, LLC (the “Sponsor”), and the Company’s
search for a target business with which to complete a Business Combination.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company initially had
until November 22, 2018 to complete a Business Combination. However, if the Company anticipated that it could not consummate a
Business Combination by November 22, 2018, the Company could extend the period of time to consummate a Business Combination up
to two times, each by an additional three months (for a total of up to 18 months to complete a Business Combination) (the “Combination
Period”). Pursuant to the terms of the Company's Amended and Restated Certificate of Incorporation and the trust agreement
entered into between the Company and Continental Stock Transfer & Trust Company on November 20, 2017, in order to extend the
time available for the Company to consummate a Business Combination, the Sponsor or its affiliates or designees were required to
deposit into the Trust Account $690,000 ($0.10 per share) for each three month extension, up to an aggregate of $1,380,000, or
$0.20 per share, if the Company extended for the full six months, on or prior to the date of the applicable deadline.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On November 20, 2018, the
period of time for the Company to consummate a Business Combination was extended for an additional three month period ending on
February 22, 2019, and, accordingly, $690,000 was deposited into the Trust Account. The deposit was funded by a non-interest bearing
unsecured loan from BRAC Lending Group LLC, an affiliate of the underwriter (the “Investor”). The loan is repayable
upon the consummation of a Business Combination (see Note 4). On February 21, 2019, the Company further extended the time required
to consummate a Business Combination to May 22, 2019 and deposited an additional $690,000 into the Trust Account.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>NASDAQ Notification</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On January 7, 2019, the
Company received a notice from the staff of the Listing Qualifications Department of Nasdaq stating that the Company was no longer
in compliance with Nasdaq Listing Rule 5620(a) for continued listing due to its failure to hold an annual meeting of stockholders
within twelve months of the end of the Company’s fiscal year ended December 31, 2017. The Company submitted a plan of compliance
with Nasdaq and Nasdaq granted the Company an extension until May 22, 2019 to regain compliance with the rule by holding an annual
meeting of stockholders. The Company has scheduled its annual meeting of stockholders for May 21, 2019 (see Note 7).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">As of March 31, 2019, the
Company had $1,818 in its operating bank account, $71,657,035 in cash and marketable securities held in the Trust Account to be
used for a Business Combination or to repurchase or convert stock in connection therewith and a working capital deficit of $345,652,
which excludes franchise and income taxes payable of $98,027, of which such amounts will be paid from interest earned on the Trust
Account. As of March 31, 2019, approximately $1,277,000 of the amount on deposit in the Trust Account represented interest income,
which is available to pay the Company’s tax obligations. To date, the Company has withdrawn approximately $224,000 of interest
from the Trust Account in order to pay the Company’s taxes, of which approximately $182,000 was withdrawn during the three
months ended March 31, 2019.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On November 17, 2018, the
Company entered into an agreement (the “Agreement”) with the Sponsor and the Investor, pursuant to which the Sponsor
agreed to be responsible for all liabilities of the Company as of November 17, 2018 and to loan the Company the funds necessary
to pay the expenses of the Company other than Business Combination expenses through the closing of a Business Combination when
and as needed. If a Business Combination is not consummated, all outstanding loans made by the Sponsor will be forgiven (see Note
4). In addition, the Investor agreed to loan the Company all funds necessary to pay expenses incurred in connection with and in
order to consummate a business combination (the “Business Combination Expenses”) and such loans will be added to the
Notes (as defined in Note 4). If the Company does not consummate a Business Combination, all outstanding loans under the Notes
will be forgiven, except to the extent of any funds held outside of the Trust Account after paying all other fees and expenses
of the Company incurred prior to the date of such failure to consummate a Business Combination (see Note 4).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company may raise additional
capital through loans or additional investments from the Sponsor or its stockholders, officers, directors, or third parties. Other
than as described above, the Company’s officers and directors and the Sponsor may, but are not obligated to, loan the Company
funds, from time to time, in whatever amount they deem reasonable in their sole discretion, to meet the Company’s working
capital needs.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company does not believe
it will need to raise additional funds in order to meet expenditures required for operating its business. Neither the Sponsor,
nor any of the stockholders, officers or directors, or third parties are under any obligation to advance funds to, or invest in,
the Company, except as discussed above. Accordingly, the Company may not be able to obtain additional financing. If the Company
is unable to raise additional capital, it may be required to take additional measures to conserve liquidity, which could include,
but not necessarily be limited to suspending the pursuit of a potential transaction. The Company cannot provide any assurance that
new financing will be available to it on commercially acceptable terms, if at all. Even if the Company can obtain sufficient financing
or raise additional capital, it only has until May 22, 2019 to consummate a Business Combination. There is no assurance that the
Company will be able to do so prior to May 22, 2019 (see Note 7).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Basis of presentation</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited
condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article
8 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information or footnote disclosures
normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules
and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes
necessary for a comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management,
the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which
are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited
condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended
December 31, 2018 as filed with the SEC on March 15, 2019, which contains the audited financial statements and notes thereto. The
interim results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the
year ending December 31, 2019 or for any future interim periods.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Use of estimates</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of condensed
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 condensed financial statements
and the reported amounts of revenues and expenses during the reporting period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">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 the Company’s estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Cash and marketable securities held in Trust
Account</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At March 31, 2019 and December
31, 2018, the assets held in the Trust Account were held in money market funds. During the three months ended March 31, 2019, the
Company withdrew $181,793 of interest income to pay its franchise tax obligations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Net loss per common share</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Net loss per common share
is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company
applies the two-class method in calculating earnings per share. Shares of common stock subject to possible redemption at March
31, 2019 and December 31, 2018, which are not currently redeemable and are not redeemable at fair value, have been excluded from
the calculation of basic net loss per share since such shares, if redeemed, only participate in their pro rata share of the Trust
Account earnings. The Company has not considered the effect of (1) warrants sold in the Initial Public Offering and private placement
to purchase 3,586,250 shares of common stock, (2) rights sold in the Initial Public Offering and private placement that convert
into 717,250 shares of common stock and (3) 600,000 shares of common stock, warrants to purchase 300,000 shares of common stock
and rights that convert into 60,000 shares of common stock in the unit purchase option sold to the underwriter, in the calculation
of diluted loss per share, since the exercise of the warrants, the conversion of the rights into shares of common stock and the
exercise of the unit purchase option are contingent upon the occurrence of future events. As a result, diluted loss per common
share is the same as basic income per common share for the periods presented.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">   </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Reconciliation of net loss per common share</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company’s net
income is adjusted for the portion of income that is attributable to common stock subject to possible redemption, as these shares
only participate in the earnings of the Trust Account and not the income or losses of the Company. Accordingly, basic and diluted
loss per share is calculated as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended March 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 8pt; text-align: left">Net income</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">187,965</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">15,481</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Less: Income attributable to common stock subject to possible redemption</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(272,387</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(185,056</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Adjusted net loss</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(84,422</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(169,575</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; padding-bottom: 2.5pt">Weighted average shares outstanding, basic and diluted</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">2,725,039</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">2,590,985</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per common share</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(0.03</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(0.07</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">On November 17, 2018, the
Company entered into an Agreement with the Sponsor and the Investor. Pursuant to the Agreement, the Sponsor transferred an aggregate
of 1,500,000 Founder’s Shares to the Investor in exchange for the agreements set forth below and aggregate cash consideration
of $1.00.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to the Agreement,
the Sponsor agreed to extend the period of time the Company has to consummate a Business Combination up to two times for an aggregate
of up to six months and the Investor agreed to loan the Company the funds necessary to obtain the extensions (the Extensions”).
On November 20, 2018 and February 21, 2019, the Company issued unsecured promissory notes (the “Notes”) in favor of
the Investor, in the original principal amount of $690,000 each (or an aggregate of $1,380,000), to provide the Company the funds
necessary to obtain an aggregate of six-month Extensions. Pursuant to the Agreement, the Investor has also agreed to loan the Company
all funds necessary to pay expenses incurred in connection with and in order to consummate a Business Combination (the “Business
Combination Expenses”) and such loans will be added to the Notes. If the Company does not consummate a Business Combination,
all outstanding loans under the Notes will be forgiven, except to the extent of any funds held outside of the Trust Account after
paying all other fees and expenses of the Company incurred prior to the date of such failure to consummate a Business Combination.
As of March 31, 2019, the outstanding balance under the Notes amounted to an aggregate of $1,380,000.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Sponsor has agreed to
be responsible for all liabilities of the Company as of November 17, 2018, except for liabilities associated with the possible
redemption of shares by the Company’s shareholders, as described in the Company’s Amended and Restated Certificate
of Incorporation. The Sponsor has also agreed to loan the Company the funds necessary to pay the expenses of the Company other
than the Business Combination Expenses through the closing of a Business Combination when and as needed in order for the Company
to continue in operation (the “Non-Business Combination Related Expenses”). Upon consummation of a Business Combination,
up to $200,000 of the Non-Business Combination Related Expenses will be repaid by the Company to the Sponsor provided that the
Company has funds available to it sufficient to repay such expenses (the “Cap”) as well as to pay for all stockholder
redemptions, all Business Combination Expenses, repayment of the Notes, and any funds necessary for the working capital requirements
of the Company following closing of the Business Combination. Any remaining amounts in excess of the Cap will be forgiven. If the
Company does not consummate a Business Combination, all outstanding loans made by the Sponsor to cover the Non-Business Combination
Related Expenses will be forgiven. At March 31, 2019, the outstanding balance under this loan amounted to $106,642.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Registration Rights</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b> </b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Pursuant to a registration
rights agreement entered into on November 20, 2017, the holders of the Company’s common stock prior to the Initial Public
Offering (the “Founder Shares”), Private Placement Units (and their underlying securities), the shares issued to EarlyBirdCapital,
Inc. (“EarlyBirdCapital”) at the closing of the Initial Public Offering (the “Representative Shares”) and
any Units that may be issued upon conversion of the working capital loans (and their underlying securities) are entitled to registration
rights. The holders of a majority of these securities are entitled to make up to three demands, excluding short form demands, that
the Company register such securities. The holders of the majority of the Founder’s Shares can elect to exercise these registration
rights at any time commencing three months prior to the date on which these shares of common stock are to be released from escrow.
The holders of a majority of the Private Placement Units or Units issued to the Sponsor, officers, directors or their affiliates
in payment of working capital loans made to the Company (in each case, including the underlying securities) can elect to exercise
these registration rights at any time after the Company consummates a Business Combination. In addition, the holders will have
certain “piggy-back” registration rights with respect to registration statements filed subsequent to the completion
of a Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the
Securities Act of 1933, as amended (the “Securities Act”). Notwithstanding anything to the contrary, EarlyBirdCapital
and its designees may participate in a “piggy-back” registration during the seven year period beginning on the effective
date of the registration statement. However, the registration rights agreement will provide that the Company will not permit any
registration statement filed under the Securities Act to become effective until termination of the applicable lock-up period. The
Company will bear the expenses incurred in connection with the filing of any such registration statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Business Combination Marketing Agreement</b></p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company has engaged
EarlyBirdCapital as an advisor in connection with a Business Combination to assist the Company in holding meetings with its stockholders
to discuss a potential Business Combination and the target business’ attributes, introduce the Company to potential investors
that are interested in purchasing securities, assist the Company in obtaining stockholder approval for the Business Combination
and assist the Company with its press releases and public filings in connection with a Business Combination. The Company will pay
EarlyBirdCapital a cash fee for such services upon the consummation of a Business Combination in an amount equal to 4.0% of the
gross proceeds of the Initial Public Offering (exclusive of any applicable finders’ fees which might become payable). If
a Business Combination is not consummated for any reason, no fee will be due or payable.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>Preferred Stock</i></b>
— The Company is authorized to issue 1,000,000 shares of preferred stock with a par value of $0.001 per share with such designation,
rights and preferences as may be determined from time to time by the Company’s Board of Directors. At March 31, 2019 and
December 31, 2018, there were no shares of preferred stock issued or outstanding.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in">  </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"><b><i>Common Stock</i></b>
— The Company is authorized to issue 100,000,000 shares of common stock with a par value of $0.001 per share. Holders of
the Company’s common stock are entitled to one vote for each share. At March 31, 2019 and December 31, 2018, there were 2,794,297
and 2,725,039, respectively, shares of common stock issued and outstanding (excluding 6,241,203 and 6,310,461 shares of common
stock subject to possible redemption, respectively).</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company evaluates subsequent
events and transactions that occur after the balance sheet date up to the date that the condensed financial statements were issued.
Other than as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure
in the condensed financial statements.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company has scheduled
its annual meeting of stockholders for May 21, 2019, pursuant to which it will seek stockholder approval to, among other matters,
extend the time by which the Company has to complete a Business Combination from May 22, 2019 to August 22, 2019. There is no assurance
that the Company’s stockholders will vote to approve the extension of time with which the Company has to complete a Business
Combination. If the Company does not obtain stockholder approval, the Company would wind up its affairs and liquidate.</p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited
condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States
of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article
8 of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information or footnote disclosures
normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules
and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes
necessary for a comprehensive presentation of financial position, results of operations, or cash flows. In the opinion of management,
the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which
are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The accompanying unaudited
condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended
December 31, 2018 as filed with the SEC on March 15, 2019, which contains the audited financial statements and notes thereto. The
interim results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the
year ending December 31, 2019 or for any future interim periods.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The preparation of condensed
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 condensed financial statements
and the reported amounts of revenues and expenses during the reporting period.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">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 the Company’s estimates.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">At March 31, 2019 and December
31, 2018, the assets held in the Trust Account were held in money market funds. During the three months ended March 31, 2019, the
Company withdrew $181,793 of interest income to pay its franchise tax obligations.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">Net loss per common share
is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. The Company
applies the two-class method in calculating earnings per share. Shares of common stock subject to possible redemption at March
31, 2019 and December 31, 2018, which are not currently redeemable and are not redeemable at fair value, have been excluded from
the calculation of basic net loss per share since such shares, if redeemed, only participate in their pro rata share of the Trust
Account earnings. The Company has not considered the effect of (1) warrants sold in the Initial Public Offering and private placement
to purchase 3,586,250 shares of common stock, (2) rights sold in the Initial Public Offering and private placement that convert
into 717,250 shares of common stock and (3) 600,000 shares of common stock, warrants to purchase 300,000 shares of common stock
and rights that convert into 60,000 shares of common stock in the unit purchase option sold to the underwriter, in the calculation
of diluted loss per share, since the exercise of the warrants, the conversion of the rights into shares of common stock and the
exercise of the unit purchase option are contingent upon the occurrence of future events. As a result, diluted loss per common
share is the same as basic income per common share for the periods presented.</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0">   </p> <p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">The Company’s net
income is adjusted for the portion of income that is attributable to common stock subject to possible redemption, as these shares
only participate in the earnings of the Trust Account and not the income or losses of the Company. Accordingly, basic and diluted
loss per share is calculated as follows:</p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended March 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 8pt; text-align: left">Net income</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">187,965</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">15,481</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Less: Income attributable to common stock subject to possible redemption</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(272,387</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(185,056</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Adjusted net loss</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(84,422</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(169,575</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; padding-bottom: 2.5pt">Weighted average shares outstanding, basic and diluted</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">2,725,039</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">2,590,985</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per common share</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(0.03</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(0.07</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p> <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="7" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">Three Months Ended March 31,</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2019</td><td style="font-size: 8pt; font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="3" style="font-size: 8pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid">2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 56%; font-size: 8pt; text-align: left">Net income</td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">187,965</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td><td style="width: 8%; font-size: 8pt"> </td>
<td style="width: 1%; font-size: 8pt; text-align: left">$</td><td style="width: 12%; font-size: 8pt; text-align: right">15,481</td><td style="width: 1%; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="font-size: 8pt; text-align: left; padding-bottom: 1pt; text-indent: -9pt; padding-left: 9pt">Less: Income attributable to common stock subject to possible redemption</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(272,387</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 1pt solid; font-size: 8pt; text-align: right">(185,056</td><td style="padding-bottom: 1pt; font-size: 8pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Adjusted net loss</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(84,422</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(169,575</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; padding-bottom: 2.5pt">Weighted average shares outstanding, basic and diluted</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">2,725,039</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">2,590,985</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="font-size: 8pt; text-align: left; padding-bottom: 2.5pt">Basic and diluted net loss per common share</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(0.03</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td><td style="font-size: 8pt; padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; font-size: 8pt; text-align: right">(0.07</td><td style="padding-bottom: 2.5pt; font-size: 8pt; text-align: left">)</td></tr>
</table> -272387 -185056 -84422 -169575 Excludes an aggregate of up to 6,241,203 and 6,429,718 shares subject to possible redemption at March 31, 2019 and 2018, respectively. Net loss per common share - basic and diluted excludes income attributable to common stock subject to possible redemption of $272,387 and $185,056, respectively, for the three months ended March 31, 2019 and 2018, respectively.