VIVINT SMART HOME, INC., 10-K filed on 3/13/2020
Annual Report
v3.20.1
Cover Page - USD ($)
12 Months Ended
Dec. 31, 2019
Mar. 11, 2020
Jun. 28, 2019
Document Information [Line Items]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2019    
Document Fiscal Year Focus 2019    
Document Fiscal Period Focus FY    
Trading Symbol VVNT    
Entity Registrant Name Vivint Smart Home, Inc.    
Entity Central Index Key 0001713952    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer No    
Entity Current Reporting Status Yes    
Entity Shell Company false    
Entity Filer Category Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Voluntary Filers No    
Entity Interactive Data Current Yes    
Entity Address, State or Province UT    
Security Exchange Name NYSE    
Title of 12(b) Security Class A common stock, par value $0.0001 per share    
Entity Public Float     $ 351,900,000
Entity Common Stock, Shares Outstanding   177,862,355  
Warrant [Member]      
Document Information [Line Items]      
Trading Symbol VVNT WS    
Security Exchange Name NYSE    
Title of 12(b) Security Warrants, each exercisable for one share of Class A common stock at an exercise price of $11.50 per share    
v3.20.1
Balance Sheets - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Current assets:    
Cash $ 682,940 $ 892,518
Prepaid expenses 217,809 112,675
Total current assets 900,749 1,005,193
Cash and investments held in Trust Account 355,032,480 350,437,823
Total assets 355,933,229 351,443,016
Current liabilities:    
Accounts payable 75,108 8,735
Accrued expenses 61,194  
Accrued expenses - related parties 48,002 37,530
Franchise tax payable 200,000 5,480
Income tax payable   44,449
Total current liabilities 384,304 96,194
Deferred underwriting commissions 6,071,544 12,075,000
Total liabilities 6,455,848 12,171,194
Commitments
Stockholders' Equity:    
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding at December 31, 2019 and 2018, respectively
Additional paid-in capital
Retained earnings 4,999,143 4,999,032
Total stockholders' equity 5,000,011 5,000,002
Total Liabilities and Stockholders' Equity 355,933,229 351,443,016
Class A Common Stock [Member]    
Current liabilities:    
Class A common stock, $0.0001 par value; 33,847,392 and 33,427,182 shares subject to possible redemption at December 31, 2019 and 2018, respectively 344,477,370 334,271,820
Stockholders' Equity:    
Common stock value 5 107
Total stockholders' equity 5 107
Class F Common Stock [Member]    
Stockholders' Equity:    
Common stock value 863 863
Total stockholders' equity $ 863 $ 863
v3.20.1
Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2019
Dec. 31, 2018
Preferred shares, par value $ 0.0001 $ 0.0001
Preferred shares, shares authorized 1,000,000 1,000,000
Preferred shares, shares issued 0 0
Preferred shares, shares outstanding 0 0
Class A Common Stock [Member]    
Class A common stock, par value $ 0.0001 $ 0.0001
Shares subject to possible redemption 34,447,737 33,427,182
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 52,263 1,072,818
Common stock, shares outstanding 52,263 1,072,818
Class F Common Stock [Member]    
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 20,000,000 20,000,000
Common stock, shares issued 8,625,000 8,625,000
Common stock, shares outstanding 8,625,000 8,625,000
v3.20.1
Statements of Operations - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
General and administrative expenses $ 1,319,573 $ 871,091
Franchise tax expense 194,746 5,480
Loss from operations (1,514,319) (876,571)
Interest income 7,184,341 6,187,823
Income before income tax expense 5,670,022 5,311,252
Income tax expense 1,467,919 44,450
Net income 4,202,103 5,266,802
Class A Common Stock [Member]    
Interest income $ 7,200,000 $ 6,200,000
Weighted average shares outstanding 34,500,000 34,500,000
Basic and diluted net loss per share, Class F $ 0.14 $ 0.16
Class F Common Stock [Member]    
Weighted average shares outstanding 8,625,000 8,625,000
Basic and diluted net loss per share, Class F $ (0.07) $ (0.01)
v3.20.1
Statements of Changes in Stockholders' Equity - USD ($)
Total
Class A Common Stock [Member]
Class F Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings (Accumulated Deficit) [Member]
Beginning Balance at Dec. 31, 2017 $ 5,000,010 $ 160 $ 863 $ 5,215,674 $ (216,687)
Beginning Balance, shares at Dec. 31, 2017   1,599,499 8,625,000    
Common stock subject to possible redemption (5,266,810) $ (53)   (5,266,757)  
Common stock subject to possible redemption, shares   (526,681)      
Reclassification of additional paid-in capital to retained earnings       51,083 (51,083)
Net income 5,266,802       5,266,802
Ending Balance at Dec. 31, 2018 5,000,002 $ 107 $ 863   4,999,032
Ending Balance, shares at Dec. 31, 2018   1,072,818 8,625,000    
Common stock subject to possible redemption (10,205,550) $ (102)   (10,205,448)  
Common stock subject to possible redemption, shares   (1,020,555)      
Underwriter fee reduction 6,003,456     6,003,456  
Reclassification of additional paid-in capital to retained earnings       $ 4,201,992 (4,201,992)
Net income 4,202,103       4,202,103
Ending Balance at Dec. 31, 2019 $ 5,000,011 $ 5 $ 863   $ 4,999,143
Ending Balance, shares at Dec. 31, 2019   52,263 8,625,000    
v3.20.1
Statements of Cash Flows - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash Flows from Operating Activities:    
Net income $ 4,202,103 $ 5,266,802
Adjustments to reconcile net income to net cash used in operating activities:    
Interest income from investments held in Trust Account (7,184,341) (6,187,823)
Changes in operating assets and liabilities:    
Prepaid expenses (105,134) 180,748
Accounts payable 66,373 (85,141)
Accrued expenses 61,194 (5,000)
Accrued expenses—related parties 10,472 (5,385)
Franchise tax payable 194,520 5,480
Income tax payable (44,449) 44,449
Net cash used in operating activities (2,799,262) (785,870)
Cash Flows from Investing Activities    
Interest released from Trust Account 2,589,684 750,000
Net cash provided by investing activities 2,589,684 750,000
Net change in cash (209,578) (35,870)
Cash—beginning of the year 892,518 928,388
Cash—end of the year 682,940 892,518
Supplemental disclosure of noncash transactions:    
Change in value of Class A common stock subject to possible redemption 10,205,550 $ 5,266,810
Change in deferred underwriting commissions 6,003,456  
Supplemental cash flow disclosure:    
Cash paid for income taxes $ 1,708,127  
v3.20.1
Description of Organization and Business Operations
12 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Organization and Business Operations
Note 1. Description of Organization and Business Operations
Vivint Smart Home, Inc. (f/k/a
Mosaic Acquisition Corp.
)
(the “Company”) is a blank check company and was incorporated in the Cayman Islands on July 26, 2017.
In connection with the Closing (as defined below), the Company changed its name from Mosaic Acquisition Corp. to Vivint Smart Home, Inc.
 
Effective December 21, 2018, the Company changed its jurisdiction of incorporation from Cayman Islands to the State of Delaware (“Domestication”). The Company was formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses that the Company has not yet identified (“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 capitalize on the ability of its management team to identify, acquire and operate a business that may provide opportunities for attractive risk-adjusted returns.
All activity from July 26, 2017 (inception) through December 31, 2019 relates to the Company’s formation, completion of the initial public offering (“Initial Public Offering”), entering into forward purchase agreements, and, since the closing of the Initial Public Offering, the search for a Business Combination candidate described below.
The registration statement for the Company’s Initial Public Offering was declared effective on October 18, 2017. On October 23, 2017, the Company consummated its Initial Public Offering of 34,500,000 units (“units”), including the issuance of 4,500,000 units as a result of the underwriters’ exercise of their over-allotment option in full, at $10.00 per unit, generating gross proceeds of $345 million and incurring offering costs of approximately $19.7 million, inclusive of $12.075 million in deferred underwriting commissions (Note 6).
Simultaneously with the closing of the Initial Public Offering, the Company consummated the private placement (“private placement”) of 5,933,334 warrants (the “private placement warrants”), at a price of $1.50 per private placement warrant, with the Company’s
SPAC
sponsors, Mosaic Sponsor, LLC and Fortress Mosaic Sponsor LLC (each a “
SP
AC
sponsor” and, together, the “
SPAC s
ponsors”), generating gross proceeds of $8.9 million (Note 4).
Upon the closing of the Initial Public Offering and private placement, $345 million ($10.00 per unit) of the aggregate net proceeds of the sale of the units in the Initial Public Offering and the Private Placement was placed in a U.S.-based trust account (“Trust Account”) at J.P. Morgan Chase Bank, N.A., maintained by Continental Stock Transfer & Trust Company, acting as trustee. Beginning in January 2018, the proceeds held in the Trust Account are 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 180 days or less or in any open-ended investment company that holds itself out as a money market fund selected by the Company meeting the conditions of paragraphs (d)(2), (d)(3) and (d)(4) of Rule
2a-7
of the Investment Company Act, as determined by the Company, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the Trust Account as described below.
At December 31, 2019, the Company had approximately $683,000 in cash held outside of the Trust Account. The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the sale of private placement warrants, although substantially all of the net proceeds are intended to be applied generally toward consummating a Business Combination. The Company’s initial Business Combination must be with one or more target businesses that together have an aggregate fair market value of at least 80% of the assets held in the Trust Account (excluding the deferred underwriting commissions and taxes payable on income earned on the trust account) at the time of the agreement to enter into the initial Business Combination. However, the Company will only complete a Business Combination if the post-transaction 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 1940, as amended, or the Investment Company Act.
The Company will provide its holders of Class A common stock (“public stockholders”) with the opportunity to redeem all or a portion of their Class A common stock 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. The decision as to whether the Company will seek stockholder approval of a business combination or conduct a tender offer will be made by the Company, solely in its discretion. If, however, stockholder approval of the transaction is required by law or stock exchange listing requirement, or the Company decides to obtain stockholder approval for business or other legal reasons, it will: (i) conduct the redemptions in conjunction with a proxy solicitation pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), which regulates the solicitation of proxies, and not pursuant to the tender offer rules; and (ii) file proxy materials with the Securities and Exchange Commission (“SEC”). The public stockholders will be entitled to redeem their Class A common stock for a pro rata portion of the amount then in the Trust Account (initially approximately $10.00 per share) plus any pro rata interest earned on the funds held in the Trust Account and not previously released to the Company to fund working capital requirements, subject to an annual limit of $750,000, and/or to pay for the Company’s tax obligations. Since inception, the Company has withdrawn approximately $1.5 million for working capital and approximately $1.8 million for taxes obligations. The
per-share
amount to be distributed to public stockholders who redeem their Class A common stock will not be reduced by the deferred underwriting commissions the Company will pay to the underwriters (as discussed in Note 6). These shares of Class A common stock are recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” In such case, the Company will proceed with a business combination if the Company has net tangible assets of at least $5,000,001 upon such consummation of a business combination and a majority of the shares voted are voted in favor of the business combination. If a stockholder vote is not required by the law and the Company does not decide to hold a stockholder vote for business or other legal reasons, the Company will, pursuant to its certificate of incorporation, conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents with the SEC prior to completing a business combination. If, however, a stockholder approval of the transactions is required by law, or the Company decides to obtain stockholder approval for business or legal reasons, the Company will offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. Additionally, each public stockholder may elect to redeem their Class A common stock irrespective of whether they vote for or against the proposed transaction. If the Company seeks stockholder approval in connection with a business combination, the initial stockholders (as defined below) have agreed to vote their founder shares (as defined in Note 5) and any Class A common stock purchased during or after the Initial Public Offering in favor of a business combination. In addition, the initial stockholders have agreed to waive their redemption rights with respect to their founder shares and Class A common stock in connection with the completion of a business combination.
In addition, certain institutional and accredited investors (“anchor investors”) have entered into forward purchase agreements with the Company, pursuant to which the anchor investors agreed to purchase an aggregate of 15,789,474 shares of Class A common stock, at a purchase price of $9.50 per share of Class A common stock (for an aggregate amount of approximately $150 million), in a private placement to occur concurrently with the closing of the initial business combination (“forward purchase agreements”). The obligations under the forward purchase agreements do not depend on whether any Class A common stock are redeemed by the public stockholders. In connection with these agreements, if the last reported sale price of the Class A common stock is less than $11.00 (as adjusted for share splits, share combinations and the like) for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the first anniversary of the initial business combination, each anchor investor may purchase from the
SPAC
sponsors, at a price per share of Class A common stock of $0.01, a number of Class A common stock (“contingent call shares”) no greater than (a) the number of forward purchase shares issued and sold to such anchor investor less any forward purchase shares sold by such anchor investor prior to its exercise of the right to purchase such contingent call shares divided by (b) 18 (as adjusted for share splits, share combinations and the like).
Notwithstanding the foregoing, the Company’s certificate of incorporation 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 Exchange Act), is restricted from redeeming its shares with respect to more than an aggregate of 15% or more of the Class A common stock sold in the Initial Public Offering, without the prior consent of the Company.
The Company’s
SPAC
sponsors, officers and directors (the “initial stockholders”) agreed not to propose an amendment to the Company’s Memorandum and Articles of Association that would affect the substance or timing of the Company’s obligation to redeem 100% of its Class A common stock if the Company does not complete a business combination, unless the Company provides the public stockholders with the opportunity to redeem their Class A common stock in conjunction with any such amendment.
The initial stockholders agreed to waive their liquidation rights with respect to the founder shares if the Company fails to complete a business combination within the combination period. However, if the initial stockholders should acquire Class A common stock in or after the Initial Public Offering, they will be entitled to liquidating distributions from the trust account with respect to such Class A common stock if the Company fails to complete a business combination within the combination period. The underwriters have agreed to waive their rights to their deferred underwriting commission (see Note 6) held in the Trust Account in the event the Company does not complete a business combination within the combination period and, in such event, such amounts will be included with the funds held in the trust account that will be available to fund the redemption of the Company’s Class A common stock. In the event of such distribution, it is possible that the per share value of the residual assets remaining available for distribution (including trust account assets) will be only $10.00 per share initially held in the trust account (or less than that in certain circumstances). In order to protect the amounts held in the trust account, the
SPAC
sponsors have agreed to be liable to the Company, jointly and severally, 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 amount of funds in the trust account. This liability will not apply with respect to any claims by a third party who executed a waiver of any right, title, interest or claim of any kind in or to any monies held in the trust account or 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”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the
SPAC
sponsors 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
SPAC
sponsors will have to indemnify the trust account due to claims of creditors by endeavoring to have all vendors, service providers (other than the Company’s independent auditors), 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.
Pursuant to the Company’s certificate of incorporation, the Company originally had until 24 months from the closing of the Initial Public Offering (or October 23, 2019) to complete a business combination, or 27 months from the closing of the Initial Public Offering (or January 23, 2020) if the Company has executed a letter of intent, agreement in principle or definitive agreement for an initial business combination within 24 months from the closing of the Initial Public Offering (the “Combination Period”). On September 15, 2019, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), which was later amended on December 18, 2019 (the “Amendment”), by and among Mosaic, Maiden Merger Sub, Inc., a wholly owned subsidiary of Mosaic (“Merger Sub”), and Vivint Smart Home, Inc. (“Vivint Smart Home”). On January 17, 2020 (the “Closing Date”), the consummation was completed (see Note 10).
 
On December 20, 2019, the Company convened and then adjourned, without conducting any business, the special meeting of stockholders (the “Special Meeting”) to be held in connection with our previously announced Merger, until January 14, 2020. On January 14, 2020, the Company reconvened and then adjourned, without conducting any business, the Special Meeting to be held in connection with our previously announced Merger, until January 17, 2020.
Further information regarding the Merger is set forth in the Report on Form 8-K, which was filed with the SEC on January 24, 2020.
If the Company was unable to complete a business combination by the Combination Period, the Company would have to (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 Class A common stock 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.
v3.20.1
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Note 2. Summary of Significant Accounting Policies
Basis of presentation
The accompanying financial statement is presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“U.S. 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 accountant standards used.
Use of estimates
The preparation of the financial statements in conformity with U.S. 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 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.
Income taxes
The Company complies with the accounting and reporting requirements of Accounting Standards Codification (“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’s management determined that the Cayman Islands is the Company’s major tax jurisdiction from inception, and changed to State of Delaware since the Domestication on December 21, 2018. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense.
The Company’s currently taxable income primarily consists of interest income on the Trust Account. The Company’s general and administrative expenses are generally considered
start-up
costs and are not currently deductible. The Company’s effective tax rate for the year ended December 31, 2019 and 2018 differ from the expected income tax rate due to the
start-up
costs (discussed above) which are not currently deductible.
As of December 31, 2019 and 2018, there were no unrecognized tax benefits 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.
Class A common stock subject to possible redemption
The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing
Liabilities from Equity.
” Class A common stock subject to mandatory redemption (if any) are classified as liability instruments. Conditionally redeemable Class A common stock (including Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, Class A common stock is classified as stockholders’ equity. The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, an aggregate of 34,447,737 and 33,427,182 Class A common stock subject to possible redemption at redemption value at December 31, 2019 and 2018, respectively, are presented as temporary equity, outside of the stockholders’ equity section of the Company’s accompanying balance sheets.
Net Income (Loss) per Share
The Company’s statement of operations includes a presentation of income per share for common stock subject to redemption in a manner similar to the
two-class
method of income per share. Net income per common stock, basic and diluted for Class A common stock for the year ended December 31, 2019 and 2018 are calculated by dividing the interest income earned on the Trust Account of approximately $7.2 million and $6.2 million, respectively, net of funds available to be withdrawn from the Trust for working capital and tax payable purposes (subject to an annual limit of $750,000), resulted in a total of approximately $5.1 million and $5.4 million, respectively, by the weighted average number of Class A common stock outstanding for the period. Net loss per common stock, basic and diluted for Class F common stock for the year ended December 31,
2019 and 2018
are calculated by dividing the net income, less income attributable to Class A common stock by the weighted average number of Class F common stock outstanding for the period.
The Company complies with accounting and disclosure requirements of FASB ASC 260, “
Earnings Per Share
”. Net loss per share of common stock is computed by dividing net loss applicable to common stockholders by the weighted average number of common stock outstanding for the period. The Company has not considered the effect of the warrants sold in the Initial Public Offering (including the consummation of the over-allotment) and Private Placement to purchase an aggregate of 17,433,334 shares of Class A common stock in the calculation of diluted loss per share, since their inclusion would be anti-dilutive under the treasury stock method at December 31, 2019 and 2018.
Concentration of credit risk
Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal Depository Insurance Corporation coverage of $250,000. At December 31, 2019 and 2018, the Company had not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.
 
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 Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.
Fair Value Measurements
Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:
 
  
Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
 
  
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
 
  
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
Recent Accounting Pronouncements
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.
v3.20.1
Initial Public Offering
12 Months Ended
Dec. 31, 2019
Text Block [Abstract]  
Initial Public Offering
Note 3. Initial Public Offering
On October 23, 2017, the Company sold 34,500,000 units, including the issuance of 4,500,000 units as a result of the underwriters’ exercise of their over-allotment option in full, at a price of $10.00 per unit in the Initial Public Offering. Each unit consists of one Class A common stock and
one-third
of one redeemable warrant. Each whole warrant will entitle the holder to purchase one Class A common stock at an exercise price of $11.50 per share, subject to adjustment (see Note 7).
v3.20.1
Private Placement
12 Months Ended
Dec. 31, 2019
Text Block [Abstract]  
Private Placement
Note 4. Private Placement
Concurrently with the closing of the Initial Public Offering, the Sponsors purchased an aggregate of 5,933,334 Private Placement Warrants, generating gross proceeds of $8.9 million in the aggregate in a Private Placement. Each Private Placement Warrant is exercisable to purchase one Class A common stock at $11.50 per share. A portion of the proceeds from the Private Placement Warrants were added to the proceeds from the Initial Public Offering held in the Trust Account. If the Company does not complete a Business Combination within the Combination Period, the Private Placement Warrants will expire worthless.
v3.20.1
Related Party Transactions
12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions
Note 5. Related Party Transactions
Founder Shares
On October 23, 2017, the Company issued an aggregate of 8,625,000 shares of Class F common stock to the
SPAC
sponsors (the “founder shares”) in exchange for an aggregate capital contribution of $25,000, with each
SPAC
sponsor purchasing an equal number of founder shares. The
S
PAC
sponsors agreed to forfeit an aggregate of up to 1,125,000 founder shares to the extent that the over-allotment option is not exercised in full by the underwriters. On October 23, 2017, the underwriters exercised their over-allotment option. As a result, the 1,125,000 founder shares were no longer subject to forfeiture. The founder shares will automatically convert into Class A common stock upon the consummation of a business combination, or earlier at the option of the holder, on a
one-for-one
basis, subject to adjustment (see Note 7).
 
The initial stockholders agreed not to transfer, assign or sell any of their founder shares until the earliest of (a) one year after the completion of the initial business combination, (b) subsequent to the initial business combination, if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted) for any 20 trading days within any
30-trading
day period commencing at least 150 days after the initial business combination, or (C) following the completion of the initial business combination, such future date on which the Company completes a liquidation, merger, share exchange, reorganization or other similar transaction that results in all of our public stockholders having the right to exchange their common stock for cash, securities or other property.
Forward Purchase Agreements
The Company entered into forward purchase agreements with anchor investors (including an affiliate of Fortress Mosaic Sponsor LLC), pursuant to which the anchor investors agreed to purchase an aggregate of 15,789,474 shares of Class A common stock at a purchase price of $9.50 multiplied by the number of shares of Class A common stock purchased (“forward purchase shares”), or approximately $150,000,000 in the aggregate, in a private placement to occur concurrently with the closing of the initial business combination.
In connection with the forward purchase shares sold to the anchor investors, the
SPAC
sponsors will receive (by way of an adjustment to their existing founder shares) an aggregate number of additional founder shares equal to one ninth of the aggregate number of forward purchase shares sold to the anchor investors.
If the last reported sale price of the Class A common stock is less than $11.00 (as adjusted for share splits, share combinations and the like) for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on the first anniversary of the Company’s initial business combination, each anchor investor may purchase from the
SPAC
sponsors, at a price per Class A common stock of $0.01, a number of Class A common stock no greater than (a) the number of forward purchase shares issued and sold to such anchor investor less any forward purchase shares sold by such anchor investor prior to its exercise of the right to purchase such contingent call shares divided by (b) 18 (as adjusted for share splits, share combinations and the like).
In connection with the execution of the Amendment, the Company had also entered into amendments with each of the anchor investor. These amendments provide, among other things, for waivers by the forward purchasers of certain rights of first offer with respect to the investments to be made pursuant to the Additional Forward Purchaser Subscription Agreement and the Fortress Subscription and Backstop Agreement (as defined below).
The forward purchase agreements provided that prior to the initial business combination each anchor investor has the right to designate one individual to be, at its election, either elected as a member of our board of directors or a
non-voting
observer of our board of directors.
The proceeds from the sale of the forward purchase shares may be used as part of the consideration to the sellers in the initial business combination, expenses in connection with the initial business combination or for working capital in the post-transaction company. These purchases will be required to be made regardless of whether any Class A common stock are redeemed by the public stockholders and are intended to provide the Company with a minimum funding level for the initial business combination.
The anchor investors will have no right to the funds held in the trust account except with respect to any public shares owned by them.
Additional Forward Purchaser Subscription
In connection with the execution of the Amendment, we had also entered into an additional subscription agreement (the “Additional Forward Purchaser Subscription Agreement”) with one of the anchor investor
s
. Pursuant to the Additional Forward Purchaser Subscription Agreement, immediately prior to the effective time of the Merger, the Company will sell, and the Forward Purchaser will purchase from us, 5,000,000 shares of Mosaic Class A common stock at $10.00 per share. As consideration for the additional investment, 25% of Mosaic Sponsor LLC’s shares of Mosaic Class F common stock and private placement warrants will be forfeited to Mosaic and Mosaic will issue to the Forward Purchaser an equal number of shares of Mosaic Class A common stock and warrants concurrently with the consummation of the merger.
In connection with the Additional Forward Purchaser Subscription Agreement, we had entered into a lockup agreement with the abovementioned anchor investor, pursuant to which the shares purchased by such anchor investor under the Additional Forward Purchaser Subscription Agreement will be subject to
a six-month lockup.
Fortress Subscription and Backstop Agreement
In connection with the execution of the Amendment, we had also entered into a Subscription and Backstop Agreement (the “Fortress Subscription and Backstop Agreement”) with an affiliate of Fortress Investment Group LLC (the “Fortress Subscriber”), pursuant to which the Fortress Subscriber committed to purchase up to $50,000,000 in aggregate purchase price of shares of Mosaic Class A common stock as follows: the Fortress Subscriber (i) intends to purchase up to $50,000,000 in aggregate purchase price of shares of Mosaic Class A common stock in the open market, subject to applicable law, (ii) agreed to backstop redemptions by subscribing for a number of shares of newly-issued shares of Mosaic Class A common stock at a purchase price per share equal to
the per-share value
of the Mosaic’s Trust Account at the time of any such redemptions (the “Trust Value”) to be issued at the closing of the merger with an aggregate value equal to the lesser of (x) $50,000,000 (less the aggregate purchase price of the shares purchased by it in the open market) and (y) the aggregate value of the number of shares of Mosaic Class A common stock that elect to redeem in the redemption offer (based on the Trust Value), and (iii) agreed to subscribe for up to $50,000,000 (less the aggregate purchase price of the shares purchased by it in the open market and to backstop redemptions) in aggregate purchase price of newly-issued shares of Mosaic Class A common stock at $10.00 per share to be issued at the election of Vivint Smart Home at the closing of the merger. The obligations to consummate the subscriptions contemplated by the Fortress Subscription and Backstop Agreement are conditioned upon, among other things, customary closing conditions and the consummation of the transactions contemplated by the merger agreement. All the shares purchased by the Fortress Subscriber under the Fortress Subscription and Backstop Agreement will also be subject to the restrictions of the Confidentiality and Lockup Agreement, dated September 15, 2019, to which it is party.
Office Space and Related Support Services
Effective October 18, 2017, the Company entered into an agreement with an affiliate of one of the
SPAC
sponsors a monthly fee of $16,875 for office space and related support services.
On October 18, 2017, the Company agreed to pay a monthly fee of $5,000 for its Chief Financial Officer (“CFO”) commencing on the closing of the Initial Public Offering, plus a deferred cash payment of $330 per hour, less cumulative monthly fees paid, payable upon completion of its initial business combination or liquidation, whichever occurs first. In addition, the Company also agreed to pay its CFO according to the agreement for services performed prior to the closing of the Initial Public Offering. Any deferred cash payment will not be claimed against the trust account. Additionally, the Company will issue Class A common stock to him upon completion of the Company’s initial business combination (“Equity Compensation”). The number of Class A common stock to be issued is determined in accordance with an agreed formula, which is estimated to be 9,652 shares as of December 31, 2019. The Company was not obligated to issue the Equity Compensation if no Business Combination is consummated. The equity compensation fee is an unrecognized contingent liability, as closing of a potential business combination had not yet occurred as of December 31, 2019 and 2018. On January 17, 2020, the Business Combination was consummated, and the Company is obligated to issue 10,069 shares of Class A common stock to the CFO by July 17, 2020.
The Company had incurred $268,000 and $257,000 in expenses during the year ended December 31, 2019 and 2018, respectively, as reflected in the accompanying Statements of Operations for services provided by related parties in connection with these aforementioned agreements with related parties. An aggregate of approximately $48,000 and $37,500 in fees for these services was accrued as of December 31, 2019 and 2018, respectively, as reflected in the accompanying balance sheets.
Related Party Loans
In order to finance transaction costs in connection with a business combination, the
SPAC
sponsors or an affiliate of either
SPAC
sponsor, or certain of our officers and directors may, but are not obligated to, provide Working Capital Loans to the Company as may be required. If the Company completes a business combination, the Company would repay the Working Capital Loans out of the proceeds of the trust account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the trust account. In the event that a business combination does not close, the Company may use a portion of proceeds held outside the trust account to repay the Working Capital Loans but no proceeds held in the trust account would be used to repay the Working Capital Loans, other than the interest on such proceeds that may be released for working capital purposes. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. The Working Capital Loans would either be repaid upon consummation of a business combination, without interest, or, at the lender’s discretion, up to $1,500,000 of such Working Capital Loans may be convertible into warrants of the post business combination entity at a price of $1.50 per warrant. The warrants would be identical to the private placement warrants. There were no Working Capital Loans outstanding as of December 31, 2019 and 2018.
v3.20.1
Commitments & Contingencies
12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments & Contingencies
Note 6. Commitments & Contingencies
Registration Rights
The holders of the founder shares and private placement warrants and warrants that may be issued upon conversion of Working Capital Loans (and any Class A common stock issuable upon the exercise of the private placement warrants and warrants that may be issued upon conversion of Working Capital Loans) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of the Initial Public Offering. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the consummation of a business combination. However, the registration rights agreement provides 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.
 
Pursuant to the forward purchase agreements, the Company agreed to file within 30 days after the closing of the business combination a registration statement for a secondary offering of the forward purchase shares and contingent call shares and to maintain the effectiveness of such registration statement until the earliest of (A) the date on which the anchor investors cease to hold the securities covered thereby, (B) the date all of the securities covered thereby can be sold publicly without restriction or limitation under Rule 144 under the Securities Act, subject to certain conditions and limitations set forth in the forward purchase agreements.
Underwriting Agreement
The Company granted the underwriters a
45-day
option from the date of the Initial Public Offering to purchase up to 4,500,000 additional units to cover over-allotments, if any, at the price paid by the underwriters in the Initial Public Offering. The underwriters exercised this over-allotment in full concurrently with the closing of the Initial Public Offering.
The underwriters were entitled to an underwriting discount of $0.20 per unit, or $6.9 million in the aggregate, paid upon the closing of the Initial Public Offering. Additionally, a deferred underwriting discount of $0.35 per unit, or $12.075 million in the aggregate will be payable to the underwriters from the amounts held in the trust account solely in the event that the Company completes a business combination, subject to the terms of the underwriting agreement.
 
In January 2020, the Company negotiated the deferred underwriting discount and paid $6.1 million at Closing.
v3.20.1
Stockholders Equity
12 Months Ended
Dec. 31, 2019
Equity [Abstract]  
Stockholders Equity
Note 7. Stockholders’ Equity
Class
 A Common Stock—The
Company is authorized to issue 200,000,000 shares of Class A common stock with a par value of $0.0001 per share. Holders of the Company’s Class A common stock are entitled to one vote for each share on each matter on which they are entitled to vote. At December 31, 2019 and 2018, there were 34,500,000 shares of Class A common stock issued and outstanding, including 34,447,737 and 33,427,182 shares of Class A common stock subject to possible redemption, respectively.
Class
 F Common Stock—The
Company is authorized to issue 20,000,000 founder shares with a par value of $0.0001 per share. Holders of the Company’s founder shares are entitled to one vote for each share on each matter on which they are entitled to vote. The founder shares will automatically convert into Class A common stock on the first business day following the consummation of the initial business
 
combination on a
one-for-one
basis. As of December 31, 2019 and 2018, there were 8,625,000 founder shares outstanding.
Holders of the founder shares will have the right to elect all of the Company’s directors prior to the initial business combination and each director will need to receive the vote of
two-thirds
of the outstanding founder shares in order to be elected. Otherwise, holders of Class A common stock and founder shares will vote together as a single class on all matters submitted to a vote of stockholders except as required by law or the applicable rules of the New York Stock Exchange then in effect.
Founder shares will automatically convert into Class A common stock on the first business day following the consummation of the initial business combination, or earlier at the option of the holders, on a
one-for-one
basis, subject to adjustment. In the case that additional Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts sold in the Initial Public Offering and related to the closing of the initial business combination, the ratio at which the founder shares shall convert into Class A common stock will be adjusted (unless the holders of
two-thirds
of the outstanding founder shares agree to waive such anti-dilution adjustment with respect to any such issuance or deemed issuance) so that the number of Class A common stock issuable upon conversion of all founder shares will equal, in the aggregate, 20% of the sum of the total number of all common stock outstanding upon the completion of the Initial Public Offering plus all Class A common stock and equity-linked securities issued or deemed issued in connection with the initial business combination, excluding any shares or equity-linked securities issued, or to be issued, to any seller in the initial business combination and excluding forward purchase shares sold to the anchor investors. The conversion ratio of the founder shares into Class A common stock will be further adjusted in connection with the forward purchase shares sold to the anchor investors such that the
SPAC
sponsors will receive upon the closing of our initial business combination an aggregate number of additional Class A common stock equal to one ninth of the aggregate number of forward purchase shares sold to the anchor investors.
Preferred stock—The
Company is authorized to issue 1,000,000 preferred stock with a par value of $0.0001 per share. At December 31, 2019 and 2018, there are no preferred stock issued or outstanding.
Warrants—Warrants
may only be exercised for a whole number of shares. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. The warrants will become exercisable on the later of (a) 30 days after the completion of a business combination or (b) 12 months from the closing of the Initial Public Offering; provided in each case that the Company has an effective registration statement under the Securities Act covering the Class A common stock issuable upon exercise of the warrants and a current prospectus relating to them is available (or the Company permits holders to exercise their warrants on a cashless basis and such cashless exercise is exempt from registration under the Securities Act). The Company has agreed that as soon as practicable, but in no event later than 15 business days, after the closing of a business combination, the Company will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the Class A common stock issuable upon exercise of the warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective by the sixtieth (60th) day after the closing of the initial business combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. The warrants will expire five years after the completion of a business combination or earlier upon redemption or liquidation.
The private placement warrants are identical to the warrants underlying the units sold in the Initial Public Offering, except that the private placement warrants and the Class A common stock issuable upon exercise of the private placement warrants will not be transferable, assignable or salable until 30 days after the completion of a business combination, subject to certain limited exceptions. Additionally, the private placement warrants will be
non-redeemable
so long as they are held by the initial purchasers or such purchasers’ permitted transferees. If the private placement warrants are held by someone other than the initial stockholders or their permitted transferees, the private placement warrants will be redeemable by the Company and exercisable by such holders on the same basis as the warrants.
The Company may call the warrants for redemption:
 
1.
For cash:
 
  
in whole and not in part;
 
  
at a price of $0.01 per warrant;
 
  
upon a minimum of 30 days’ prior written notice of redemption; and
 
  
if, and only if, the last reported closing price of the common stock equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, reorganizations, reclassifications, recapitalizations and the like) for any 20 trading days within a
30-trading
day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.
 
2.
For Class A common stock:
 
  
in whole and not in part;
 
  
at a price equal to a number of Class A common stock to be determined by reference to a table included in the warrant agreement, based on the redemption date and the fair market value of the Class A common stock;
 
  
upon a minimum of 30 days’ prior written notice of redemption; and
 
  
if, and only if, the last reported closing price of the common stock equals or exceeds $10.00 per share (as adjusted for share splits, share dividends, reorganizations, reclassifications, recapitalizations and the like) on the trading day prior to the date on which the Company sends notice of redemption to the warrant holders.
If the Company calls the warrants for redemption, management will have the option to require all holders that wish to exercise the warrants to do so on a “cashless basis,” as described in the warrant agreement.
The exercise price and number of Class A common stock issuable upon exercise of the warrants may be adjusted in certain circumstances including in the event of a share dividend, or recapitalization, reorganization, merger or consolidation. However, the warrants will not be adjusted for issuance 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 shares. 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 the respect to such warrants. In such a situation, the warrants would expire worthless.
v3.20.1
Fair Value Measurements
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 8. Fair Value Measurements
The following table presents information about the Company’s assets that are measured on a recurring basis as of December 31, 2019 and 2018 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value.
 
Description
  
Quoted Prices

in Active Markets

(Level 1)
   
Significant Other

Observable Inputs

(Level 2)
   
Significant Other

Unobservable Inputs

(Level 3)
 
Investments held in Trust Account at December 31, 2019
  $355,032,480   $  $
 
Description
  
Quoted Prices

in Active Markets

(Level 1)
   
Significant Other

Observable Inputs

(Level 2)
   
Significant Other

Unobservable Inputs

(Level 3)
 
Investments held in Trust Account at December 31, 2018
  $350,437,823   $  $
None of the balance in the Trust Account was held in cash as of December 31, 2019 and 2018.
 
v3.20.1
Income Taxes
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Income Taxes
Note 9. Income Taxes
The Company’s net deferred tax assets are as follows:
 
   
December 31,
 
   
 
 
 
 
 
 
 
 
 
 
2019
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
Deferred tax asset
    
Net operating loss carryforward
  $—     $—   
Startup/Organizational Costs
   286,152    8,937 
  
 
 
   
 
 
 
Total deferred tax assets
   286,152    8,937 
Valuation Allowance
   (286,152   (8,937
  
 
 
   
 
 
 
Deferred tax asset, net of allowance
  $   $ 
  
 
 
   
 
 
 
The income tax provision consists of the following:
 
   
For the years ended December 31,
 
   
2019
   
2018
 
Current
    
Federal
  $1,467,919   $44,450 
State
   —      —   
Deferred
    
Federal
       —   
State
       —   
  
 
 
   
 
 
 
Income tax provision expense
  $1,467,919  $44,450 
  
 
 
   
 
 
 
At December 31, 2019 and 2018, the Company had gross deferred tax assets of approximately $286,000 and $9,000. In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and taxing strategies in making this assessment. In case the deferred tax assets will not be realized in future periods, the Company has provided a valuation allowance for the full amount of the deferred tax assets at December 31, 2019 and 2018.
 
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
 
   
For the years ended December 31,
 
   
2019
  
2018
 
Statutory federal income tax rate
   21.0  21.0
State taxes, net of federal tax benefit
   0.0  0.0
Valuation allowance
   4.9  5.3
  
 
 
  
 
 
 
Income tax provision expense
   25.9  26.3
  
 
 
  
 
 
 
The Company’s major tax jurisdiction is the United States. All of the Company’s tax years will remain open three years for examination by the Federal authorities from the date of utilization of the net operating loss. The Company does not have any tax audits pending.
v3.20.1
Merger Agreement
12 Months Ended
Dec. 31, 2019
Business Combinations [Abstract]  
Merger Agreement
Note 10. Merger Agreement
Pursuant to the terms of the amended Merger Agreement, a business combination between Mosaic and Vivint Smart Home
was
effected through the merger of Merger Sub with and into Vivint Smart Home, with Vivint Smart Home surviving as the surviving company (the “Merger”). The Amendment amend
ed
 the Merger Agreement to, among other things, (i) reduce the exchange ratio and VGI exchange ratio from 209.6849221312 and 0.2076986176 to 84.5320916792 and 0.0864152412, respectively, to reflect a reduced transaction enterprise valuation of $4.1 billion, (ii) provide for an additional 12.5 million of Class A common shares to be issued to Vivint Smart Home’s holders upon achievement of a $17.50 earnout threshold, (iii) provide for the additional investment by a forward purchaser and the additional investment by an affiliate of Fortress Investment Group LLC (each as described under “Additional Forward Purchaser Subscription” and “Fortress Subscription and Backstop Agreement”, respectively), (iv) decrease the termination fee to $32.4 million and (v) agree to adjourn the special meeting to approve the merger
to January 14, 2020. On January 14, 2020, the Company reconvened and then adjourned, without conducting any business, the Special Meeting to be held in connection with our previously announced Merger, until January 17, 2020
.
Pursuant to the terms of the Merger Agreement, Mosaic was required to use reasonable best efforts to cause the Common Stock to be issued in connection with the transactions contemplated by the Merger Agreement (the “Transactions”) to be listed on the New York Stock Exchange (“NYSE”) prior to the closing of the Merger (the “Closing”). Certain investment funds managed by affiliates of Fortress Investment Group LLC (“Fortress”) and certain investment funds affiliated with The Blackstone Group Inc. (such investment funds, collectively, “Blackstone”) have agreed to purchase, respectively,
12,500,000 and 10,000,000 newly-issued shares of Common Stock (such purchases, the “Fortress Subscription” and the “Blackstone Subscription”, respectively, and together, the “Subscriptions”) concurrently with the completion of the Merger. 
 
Earnout
Following the Closing, holders of Vivint common stock and holders of Rollover Restricted Stock (as defined in the Merger Agreement) and outstanding Rollover Equity Awards (as defined in the Merger Agreement) will have the contingent right to receive, in the aggregate, up to 37,500,000 shares of Common Stock if, from the Closing until the fifth anniversary thereof, the dollar volume-weighted average price of Common Stock exceeds certain thresholds. The first issuance of 12,500,000 earnout shares will occur if the volume-weighted average price of Common Stock exceeds $12.50 for any 20 trading days within any 30 trading day period (the “First Earnout”). The second issuance of 12,500,000 earnout shares will occur if the volume weighted average price of Common Stock exceeds $15.00 for any 20 trading days within any 30 day trading period (the “Second Earnout”). The third issuance of 12,500,000 earnout shares will occur if the volume weighted average price of Common Stock exceeds $17.50 for any 20 trading days within any 30 trading day period (the “Third Earnout”) (as further described in the Merger Agreement).
Sponsor Agreement
In connection with the execution of the Merger Agreement, the SPAC sponsors and Eugene I. Davis (together with the SPAC sponsors, the “Sponsor Agreement Parties”) entered into an amendment to the existing SPAC sponsor agreement (as amended, the “Sponsor Agreement”) with Mosaic and Vivint Smart Home pursuant to which the Sponsor Agreement Parties have agreed to vote all shares of Common Stock beneficially owned by such persons in favor of each of the proposals at the Mosaic special stockholder meeting, to use their reasonable best efforts to take all actions reasonably necessary to consummate the Merger and the other transactions contemplated by the Merger Agreement and to not take any action that would reasonable be expected to materially delay or prevent the satisfaction of the conditions to the Merger set forth in the Merger Agreement.
 
Pursuant to the Sponsor Agreement, prior to the valid termination of the Merger Agreement, each Sponsor Agreement Party is subject to
certain non-solicitation restrictions
restricting each Sponsor Agreement Party from, among other things, soliciting, initiating or knowingly encouraging or knowingly facilitating any inquiry, proposal or offer which constitutes, or could reasonably be expected to constitute a Business Combination Proposal (as defined in the Sponsor Agreement) other than with Vivint Smart Home, its stockholders and their respective affiliates and representatives or entering into any letter of intent, merger agreement or similar agreement providing such a Business Combination Proposal.
The Sponsor Agreement provides that the Sponsor Agreement Parties will not redeem any shares of Common Stock owned by such persons in connection with the Merger and will take all actions necessary to opt out of any class in any class action with respect to any claim, derivative or otherwise, against Mosaic, Vivint Smart Home or any of their respective successors and assigns relating to the negotiation, execution or delivery of the Sponsor Agreement, the Merger Agreement or the consummation of the transactions contemplated in such agreements.
The Sponsor Agreement Parties have also agreed, subject to the Stockholders Agreement (described below) and subject to certain exceptions, not to transfer any Founder Shares (as defined in the Sponsor Agreement) (or any shares of Common Stock issuable upon conversion thereof) or any Private Placement Warrants (as defined in the Sponsor Agreement) (or any shares of Common Stock issuable upon exercise thereof) until the earlier of (A) one year after the completion of the Merger, (B) subsequent to the Merger, if the last sale price of Common Stock equals or exceeds $12.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within
any 30-trading day
period commencing at least 150 days after the Merger or (C) such future date following the completion of the Merger on which Mosaic completes a liquidation, merger, share exchange, reorganization or similar transaction that results in all of Mosaic’s stockholders having the right to exchange their shares of Common Stock for cash, securities or other property
(the “Lock-up Period”).
The Sponsor Agreement also provides that all the Founder Shares (and any shares of Common Stock issuable upon conversion thereof) and Private Placement Warrants held by each Sponsor Agreement Party as of the Closing shall be unvested and shall be subject to certain time and performance-based vesting provisions described below. The Sponsor Agreement Parties have agreed not to transfer any unvested Founder Shares or Private Placement Warrants prior to the date such securities become vested.
Pursuant to the Sponsor Agreement, 50% of the unvested Founder Shares shall vest at the closing of the Merger. 25% of the unvested Founder Shares shall vest at such time as a $12.50 Stock Price Level (as defined below) is achieved on or before the fifth anniversary of the Closing. The remaining 25% of unvested Founder Shares shall vest at such time as a $15.00 Stock Price Level is achieved on or before the fifth anniversary of the Closing. 50% of the unvested Private Placement Warrants shall vest at such time as a $12.50 Stock Price Level is achieved on or before the fifth anniversary of the Closing. The remaining 50% of the unvested Private Placement Warrants shall vest at such time as a $15.00 Stock Price Level is achieved on or before the fifth anniversary of the Closing.
In the event Mosaic enters into a binding agreement on or before the fifth anniversary of the Closing related to certain sale transactions involving the shares of Common Stock or all or substantially all the assets of Mosaic (a “Mosaic Sale”), all unvested Founder Shares and unvested Private Placement Warrants shall vest on the day prior to the closing of such Mosaic Sale if the per share price implied in such Mosaic Sale meets or exceeds the applicable Stock Price Level.
Any Founder Shares or Private Placement Warrants that remain unvested after the fifth anniversary of the Closing shall be forfeited. The applicable “Stock Price Level” will be considered achieved only (a) when the volume weighted average price of Common Stock on the New York Stock Exchange is greater than or equal to the applicable threshold for any 20 trading days within a 30 trading day period or (b) the per share price implied in a Mosaic Sale is greater than or equal to the applicable threshold.
The Sponsor Agreement shall terminate on the earlier of (a) the consummation of a Mosaic Sale and (b) the later of (i) the earlier of (x) the achievement of a $15.00 Stock Price Level on or before the fifth anniversary of the Closing and (y) the fifth anniversary of the Closing and (ii) the expiration of
the Lock-up Period.
Stockholders Agreement
In connection with the execution of the Merger Agreement, Mosaic entered into a stockholders agreement (the “Stockholders Agreement”) with the
S
PAC
sponsors, Blackstone and certain other parties thereto (collectively, the “Stockholder Parties”). The Stockholders Agreement will become effective upon the consummation of the Merger. Pursuant to the terms of the Stockholders Agreement, Blackstone will have the right to designate nominees for election to Mosaic’s board of directors following the Closing at any meeting of its stockholders (each, a “Blackstone Director”). The number of nominees that Blackstone will be entitled to nominate pursuant to the Stockholders Agreement is dependent on Blackstone’s beneficial ownership of Common Stock. For so long as Blackstone and their affiliates own (i) 50% or more of the Common Stock, Blackstone will be entitled to designate a majority of Mosaic’s directors, (ii) 40% to 50% of the Common Stock, Blackstone will be entitled to designate 40% of Mosaic’s directors, (iii) 30% (but less than 40%) of the Common Stock, Blackstone will be entitled to designate 30% of Mosaic’s directors, (iv) 20% (but less than 30%) of the Common Stock, Blackstone will be entitled to designate 20% of Mosaic’s directors and (v) 5% (but less than 20%) of the Common Stock, Blackstone will be entitled to designate 10% of Mosaic’s directors.
Under the Stockholders Agreement, Mosaic agreed to nominate one director designated by Fortress (the “Fortress Director”) to Mosaic’s board of directors so long as Fortress beneficially owns at least 50% of the shares of Mosaic’s Common Stock it owns immediately following the consummation of the Merger; provided that the Fortress Director must be an employee or principal of the Softbank Vision Fund unless otherwise agreed by Mosaic and Blackstone. Additionally, so long as Fortress beneficially owns at least 50% of the shares of Mosaic’s common stock it owns immediately following the consummation of the Merger, Fortress shall have the right to appoint a representative (the “Fortress Observer”) who will have the right to attend meetings of Mosaic’s board of directors and receive information given to Mosaic’s directors, subject to certain customary exceptions, including to preserve confidentiality obligations or privilege. The Fortress Observer will not have any voting rights.
Under the Stockholders Agreement, Mosaic agreed to nominate one director designated by the Summit Designator (as defined in the Stockholders Agreement) (the “Summit Director” and together with the Blackstone Directors and the Fortress Director, the “Stockholder Directors”) to Mosaic’s board of directors so long as the Summit Holders (as defined in the Stockholders Agreement) beneficially own at least 50% of the shares of Mosaic’s Common Stock they own immediately following the consummation of the Merger. Additionally, so long as the Summit Holders beneficially owns at least 50% of the shares of Mosaic’s common stock they own immediately following the consummation of the Merger, the Summit Holders shall have the right to appoint a representative (the “Summit Observer”) who will have the right to attend meetings of Mosaic’s board of directors and receive information given to Summit’s directors, subject to certain customary exceptions, including to preserve confidentiality obligations or privilege. The Summit Observer will not have any voting rights.
In the case of a vacancy on Mosaic’s board created by the removal or resignation of a Stockholder Director, Mosaic agreed to nominate an individual designated by Blackstone or Fortress, as applicable, for election to fill the vacancy.
Confidentiality and Lockup Agreements
In addition, pursuant to certain Confidentiality and Lockup Agreements (the “Confidentiality and Lockup Agreements”), certain stockholders have agreed that they will not, during the period beginning on the effective time of the Merger and continuing to and including the date that is (i) in the case of 313 Acquisition, six months after the date of Closing, (ii) in the case of the Pedersen Holders, Dunn Holders, Summit Holders and Black Horse Holders (each as defined in the Stockholders Agreement), two years after the date of Closing and (iii) for all other Stockholder Parties, one year after the date of Closing, directly or indirectly, offer, sell, contract to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose of any shares of Common Stock, or any options or warrants to purchase any shares of Common Stock, or any securities convertible into, exchangeable for or that represent the right to receive shares of Common Stock, or any interest in any of the foregoing (in each case, subject to certain exceptions set forth in the Confidentiality and Lockup Agreements). The Confidentiality and Lockup Agreements will become effective upon the consummation of the Merger.
 
Registration Rights Agreement
In connection with the execution of the Merger Agreement, Vivint Smart Home, Mosaic, 313 Acquisition and certain significant stockholders of Mosaic entered into a registration rights agreement (“Registration Rights Agreement”). The Registration Rights Agreement will become effective upon the consummation of the Merger. Under the Registration Rights Agreement, following the consummation of the Merger Mosaic agreed to provide to 313 Acquisition an unlimited number of “demand” registration rights and to provide to other stockholders customary “piggyback” registration rights. The Registration Rights Agreement also provides that Mosaic will pay certain expenses relating to such registrations and indemnify the registration rights holders against (or make contributions in respect of) certain liabilities which may arise under the Securities Act.
Support and Services Agreement
In connection with the execution of the Merger Agreement, Mosaic, a subsidiary of Vivint Smart Home and Blackstone Management Partners L.L.C. (“BMP”), an affiliate of Blackstone, entered into an amended and restated support and services agreement (as amended, the “Support and Services Agreement”), which amends and restates and existing agreement between Vivint Smart Home and BMP. The Support and Services Agreement will become effective upon the consummation of the Merger. Pursuant to the Support and Services Agreement, BMP has been engaged to provide, directly or indirectly, monitoring, advisory and consulting services that may be requested by Vivint Smart Home in the following areas: (1) advice regarding the structure, distribution and timing of debt and equity offerings and advice regarding relationships with Vivint Smart Home’s lenders and bankers, (2) advice regarding the structuring and implementation of equity participation plans, employee benefit plans and other incentive arrangements for certain of Vivint Smart Home’s key executives, (3) general advice regarding dispositions and/or acquisitions, (4) advice regarding the strategic direction of Vivint Smart Home’s business and (5) such other advice directly related or ancillary to the above advisory services as may be reasonably requested by Vivint Smart Home. In exchange for these services, Vivint Smart Home will pay an annual monitoring fee to BMP of 1% of consolidated EBITDA until upon the earlier of (1) the completion of Vivint Smart Home’s fiscal year ended December 31, 2021 or (2) the date upon which Blackstone owns less than 5% of the voting power of all of the shares of capital stock entitled to vote generally in the election of directors of Vivint Smart Home or its direct or indirect controlling parent, and such stake has a fair market value (as determined by Blackstone) of less than $25 million.
Additionally, under the Support and Services Agreement, BMP will make available to Vivint Smart Home its portfolio operations group to provide support services customarily provided by Blackstone’s portfolio operations group to Blackstone’s private equity portfolio companies of a type and amount determined by such portfolio services group it its sole discretion to be warranted and appropriate. BMP may, at any time, choose not to provide any such services. Such services will be provided without charge, other than for the reimbursement of
related out-of-pocket expenses
incurred by BMP and its affiliates.
v3.20.1
Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events
Note 11. Subsequent Events
Transaction between Legacy Vivint Smart Home and Vivint Smart Home
On January 17, 2020 (the “Closing Date”), the Company consummated the previously announced merger pursuant to that certain Agreement and Plan of Merger, dated September 15, 2019, by and among the Company, Maiden Merger Sub, Inc., its subsidiary (“Merger Sub”), and Legacy Vivint Smart Home, Inc. (f/k/a Vivint Smart Home, Inc.) (“Legacy Vivint Smart Home”), as amended by Amendment No. 1 to the Agreement and Plan of Merger (the “Amendment” and as amended, the “Merger Agreement”), dated as of December 18, 2019, by and among the Company, Maiden Sub and Legacy Vivint Smart Home.
Pursuant to the terms of the Merger Agreement, a business combination between the Company and Legacy Vivint Smart Home was effected through the merger of Merger Sub with and into Legacy Vivint Smart Home, with Legacy Vivint Smart Home surviving as the surviving company (the “Merger”). At the effective time of the Merger (the “Effective Time”), each stockholder of Legacy Vivint Smart Home received 84.5320916792 shares of the Company’s Class A common stock, par value $0.0001 per share (the “Common Stock”), for each share of Legacy Vivint Smart Home common stock, par value $0.01 per share, that such stockholder owned.
 
Pursuant in each case to a Subscription Agreement entered into in connection with the Merger Agreement, certain investment funds managed by affiliates of Fortress Investment Group LLC (“Fortress”) and certain investment funds affiliated with The Blackstone Group Inc. (“Blackstone”) purchased, respectively, 12,500,000 and 10,000,000 newly-issued shares of Common Stock (such purchases, the “Fortress PIPE” and the “Blackstone PIPE,” respectively, and together, the “PIPE”) concurrently with the completion of the Merger (the “Closing”) on the Closing Date for an aggregate purchase price of $125,000,000 and $100,000,000, respectively. The founder shares automatically converted into Common Stock at Closing, on a
one-for-one
basis, subject to adjustment. The private placement warrants will expire five years after the Closing or earlier upon redemption or liquidation.
In connection with the execution of the Amendment, the Company entered into a Subscription and Backstop Agreement (the “Fortress Subscription and Backstop Agreement”) with Fortress, pursuant to which Fortress committed to (i) purchase $50,000,000 in aggregate purchase price of shares of the Company’s Common Stock in the open market, subject to applicable law, (ii) backstop redemptions by subscribing for a number of shares of newly-issued shares of the Company’s Common Stock at a purchase price per share equal to the
per-share
value of our trust account at the time of any such redemptions and (iii) subscribe for up to $50,000,000 (less the aggregate purchase price of the shares purchased by it in the open market and to backstop redemptions) in aggregate purchase price of newly-issued shares of the Company’s Common Stock at a purchase price of $10.00 per share to be issued at the Company’s election at the Closing. On the Closing Date, pursuant to the Fortress Subscription and Backstop Agreement, Fortress purchased 2,698,753 shares of Common Stock for an aggregate of $27.8 million. In connection with the Closing, 31,074,592 shares of Common Stock were redeemed at a per price share of approximately $10.29.
In addition, the Company entered into an additional subscription agreement (the “Additional Forward Purchaser Subscription Agreement”) with one of the forward purchasers (the “Forward Purchaser”). Pursuant to the Additional Forward Purchaser Subscription Agreement, immediately prior to the Effective Time, the Forward Purchaser purchased from us 5,000,000 shares of Common Stock at a purchase price of $10.00 per share. As consideration for the additional investment, 25% of Mosaic Sponsor LLC’s founder shares and private placement warrants were forfeited to the Company and the Company issued to the Forward Purchaser an equal number of shares of Common Stock and warrants concurrently with the Closing.
At the Closing, certain investors (including an affiliate of Fortress) received an aggregate of 15,789,474 shares of Common Stock at a purchase price of $9.50 per share (the “IPO Forward Purchaser Investment”) pursuant to the terms of the forward purchase agreements the Company entered into in connection with the Company’s initial public offering.
In addition, in connection with the Closing, all of the 8,625,000 outstanding shares of the Founder Shares were converted into shares of Common Stock on a one-for-one basis, subject to adjustment. Pursuant to the terms of a sponsor agreement (the “Sponsor Agreement”) entered into by the Company, Legacy Vivint Smart Home, the SPAC sponsors and one of the Company’s independent directors, the private placement warrants remain unvested and are subject to certain time and performance-based vesting provisions described therein.
In connection with the Closing, actual underwriter payments were $6.1 million.
In connection with the Closing, the Company changed its name from Mosaic Acquisition Corp. to Vivint Smart Home, Inc.
Subsequent to the Closing, the issuance of 12,500,000 earnout shares occurred in February 2020 after attainment of the First Earnout and the issuance of 12,500,000 earnout shares occurred in March 2020 after attainment of the Second Earnout.
Refinancing Transactions
On February 14, 2020, APX completed its offering of $600.0 million aggregate principal amount of 6.75% senior secured notes due 2027 (the “2027 Notes”) in a private placement.
 
Concurrently with the 2027 Notes offering, APX amended and restated the credit agreements governing our existing revolving credit facility and existing term loan credit facility (the “Concurrent Refinancing Transactions”). In connection therewith, APX, among other things, (i) extended the maturity date with respect to certain commitments under the revolving credit facility and increased the aggregate commitments in respect of the revolving credit facility to $350.0 million and (ii) extended the maturity date with respect to the loans outstanding under the term loan facility and increased the aggregate principal amount of term loans term loans outstanding under the term loan credit facility to $950.0 million.
APX used the net proceeds from the 2027 Notes offering and Concurrent Refinancing Transactions, together with the proceeds from the Merger, to (i) redeem all of APX’s outstanding 8.750% Senior Notes due 2020 (the “2020 Notes Redemption”), (ii) redeem all of APX’s outstanding 8.875% Senior Secured Notes due 2022 (the “2022 Private Placement Notes Redemption”), (iii) refinance in full the existing borrowings under APX’s existing term loan facility and revolving credit facility, (iv) redeem $223.0 million aggregate principal amount of APX’s outstanding 7.875% Senior Secured Notes due 2022 (the “Existing 7.875% Notes Redemption” and, together with the 2020 Notes Redemption and the 2022 Private Placement Notes Redemption, the “Redemptions”) and (v) pay the related accrued interest, fees and expenses related thereto. APX irrevocably deposited funds with the applicable trustee and/or paying agent to effect the Redemptions and to satisfy and discharge all of APX’s remaining obligations under the indenture governing APX’s 8.750% Senior Notes due 2020 and the note purchase agreement governing APX’s 8.875% Senior Secured Notes due 2022. Vivint intends to use any remaining net proceeds for general corporate purposes, which may include repayment of additional indebtedness.
v3.20.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Basis of presentation
Basis of presentation
The accompanying financial statement is presented in U.S. dollars in conformity with accounting principles generally accepted in the United States of America (“U.S. 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 accountant standards used.
Use of estimates
Use of estimates
The preparation of the financial statements in conformity with U.S. 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 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.
Income taxes
Income taxes
The Company complies with the accounting and reporting requirements of Accounting Standards Codification (“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’s management determined that the Cayman Islands is the Company’s major tax jurisdiction from inception, and changed to State of Delaware since the Domestication on December 21, 2018. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense.
The Company’s currently taxable income primarily consists of interest income on the Trust Account. The Company’s general and administrative expenses are generally considered
start-up
costs and are not currently deductible. The Company’s effective tax rate for the year ended December 31, 2019 and 2018 differ from the expected income tax rate due to the
start-up
costs (discussed above) which are not currently deductible.
As of December 31, 2019 and 2018, there were no unrecognized tax benefits 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.
Class A common stock subject to possible redemption
Class A common stock subject to possible redemption
The Company accounts for its Class A common stock subject to possible redemption in accordance with the guidance in ASC Topic 480 “Distinguishing
Liabilities from Equity.
” Class A common stock subject to mandatory redemption (if any) are classified as liability instruments. Conditionally redeemable Class A common stock (including Class A common stock that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, Class A common stock is classified as stockholders’ equity. The Company’s Class A common stock feature certain redemption rights that are considered to be outside of the Company’s control and subject to the occurrence of uncertain future events. Accordingly, an aggregate of 34,447,737 and 33,427,182 Class A common stock subject to possible redemption at redemption value at December 31, 2019 and 2018, respectively, are presented as temporary equity, outside of the stockholders’ equity section of the Company’s accompanying balance sheets.
Net Income (Loss) per Share
Net Income (Loss) per Share
The Company’s statement of operations includes a presentation of income per share for common stock subject to redemption in a manner similar to the
two-class
method of income per share. Net income per common stock, basic and diluted for Class A common stock for the year ended December 31, 2019 and 2018 are calculated by dividing the interest income earned on the Trust Account of approximately $7.2 million and $6.2 million, respectively, net of funds available to be withdrawn from the Trust for working capital and tax payable purposes (subject to an annual limit of $750,000), resulted in a total of approximately $5.1 million and $5.4 million, respectively, by the weighted average number of Class A common stock outstanding for the period. Net loss per common stock, basic and diluted for Class F common stock for the year ended December 31,
2019 and 2018
are calculated by dividing the net income, less income attributable to Class A common stock by the weighted average number of Class F common stock outstanding for the period.
The Company complies with accounting and disclosure requirements of FASB ASC 260, “
Earnings Per Share
”. Net loss per share of common stock is computed by dividing net loss applicable to common stockholders by the weighted average number of common stock outstanding for the period. The Company has not considered the effect of the warrants sold in the Initial Public Offering (including the consummation of the over-allotment) and Private Placement to purchase an aggregate of 17,433,334 shares of Class A common stock in the calculation of diluted loss per share, since their inclusion would be anti-dilutive under the treasury stock method at December 31, 2019 and 2018.
Concentration of credit risk
Concentration of credit risk
Financial instruments that potentially subject the Company to concentration of credit risk consist of a cash account in a financial institution which, at times may exceed the Federal Depository Insurance Corporation coverage of $250,000. At December 31, 2019 and 2018, the Company had not experienced losses on this account and management believes the Company is not exposed to significant risks on such account.
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 Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheets, primarily due to their short-term nature.
Fair Value Measurements
Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:
 
  
Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
 
  
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
 
  
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
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.
v3.20.1
Fair Value Measurements (Tables)
12 Months Ended
Dec. 31, 2019
Fair Value Disclosures [Abstract]  
Summary of Fair Value Measurements Measured on Recurring Basis
The following table presents information about the Company’s assets that are measured on a recurring basis as of December 31, 2019 and 2018 and indicates the fair value hierarchy of the valuation techniques that the Company utilized to determine such fair value.
 
Description
  
Quoted Prices

in Active Markets

(Level 1)
   
Significant Other

Observable Inputs

(Level 2)
   
Significant Other

Unobservable Inputs

(Level 3)
 
Investments held in Trust Account at December 31, 2019
  $355,032,480   $  $
 
Description
  
Quoted Prices

in Active Markets

(Level 1)
   
Significant Other

Observable Inputs

(Level 2)
   
Significant Other

Unobservable Inputs

(Level 3)
 
Investments held in Trust Account at December 31, 2018
  $350,437,823   $  $
v3.20.1
Income Taxes (Tables)
12 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
Summary of deferred tax assets
The Company’s net deferred tax assets are as follows:
 
   
December 31,
 
   
 
 
 
 
 
 
 
 
 
 
2019
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
2018
 
 
 
 
 
 
 
 
Deferred tax asset
    
Net operating loss carryforward
  $—     $—   
Startup/Organizational Costs
   286,152    8,937 
  
 
 
   
 
 
 
Total deferred tax assets
   286,152    8,937 
Valuation Allowance
   (286,152   (8,937
  
 
 
   
 
 
 
Deferred tax asset, net of allowance
  $   $ 
  
 
 
   
 
 
 
Summary of components of income tax provision
The income tax provision consists of the following:
 
   
For the years ended December 31,
 
   
2019
   
2018
 
Current
    
Federal
  $1,467,919   $44,450 
State
   —      —   
Deferred
    
Federal
       —   
State
       —   
  
 
 
   
 
 
 
Income tax provision expense
  $1,467,919  $44,450 
  
 
 
   
 
 
 
Summary of Effective Income Tax Rate Reconciliation
A reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
 
   
For the years ended December 31,
 
   
2019
  
2018
 
Statutory federal income tax rate
   21.0  21.0
State taxes, net of federal tax benefit
   0.0  0.0
Valuation allowance
   4.9  5.3
  
 
 
  
 
 
 
Income tax provision expense
   25.9  26.3
  
 
 
  
 
 
 
v3.20.1
Description of Organization and Business Operations - Additional Information (Detail) - USD ($)
12 Months Ended
Oct. 23, 2017
Dec. 31, 2019
Dec. 31, 2018
Organization And Business Operations [Line Items]      
Location of incorporation   KY  
Date of incorporation   Jul. 26, 2017  
Warrants price per share   $ 1.50  
Trust account $ 345,000,000    
Minimum percentage of fair market value of business acquisition to assets in trust account   80.00%  
Minimum percentage of outstanding voting securities to be acquired for completion of business combination   50.00%  
Annual limit of interest released to fund working capital requirements   $ 750,000  
Minimum net tangible assets to complete business combination   $ 5,000,001  
Percentage of aggregate common shares that may be redeemed without prior consent   15.00%  
Cash   $ 682,940 $ 892,518
Working capital   516,000  
Proceeds from withdrawal from funds held in trust for working capital requirement   1,500,000  
Proceeds from withdrawal from funds held in trust for tax obligation   1,800,000  
Cash at bank   $ 683,000  
Sponsors [Member] | Private Placement [Member]      
Organization And Business Operations [Line Items]      
Number of private placement warrants issued 5,933,334 5,933,334  
Warrants price per share $ 1.50    
Proceeds from sale of private placement warrants to sponsors $ 8,900,000 $ 8,900,000  
U.S. Government Securities [Member] | Maximum [Member]      
Organization And Business Operations [Line Items]      
Debt instrument, maturity period 180 days    
Class A Common Stock [Member]      
Organization And Business Operations [Line Items]      
Net proceeds from sale of units $ 345,000,000    
Offering costs incurred 19,700,000    
Deferred underwriting commissions $ 12,075,000    
Initial redemption price   $ 10.00  
Percentage of public shares required to repurchase if business combination is not completed within specified period   100.00%  
Class A Common Stock [Member] | Initial Public Offering [Member]      
Organization And Business Operations [Line Items]      
Sale of units 34,500,000 34,500,000  
Price per share $ 10.00 $ 10.00  
Class A Common Stock [Member] | Over-Allotment Option [Member]      
Organization And Business Operations [Line Items]      
Sale of units 4,500,000 4,500,000  
Class A Common Stock [Member] | Anchor Investors [Member]      
Organization And Business Operations [Line Items]      
Shares to be sold under forward agreements   15,789,474  
Forward agreements price per share   $ 9.50  
Forward agreements, aggregate amount   $ 150,000,000  
Class A Common Stock [Member] | Anchor Investors [Member] | Contingent Call Shares [Member]      
Organization And Business Operations [Line Items]      
Threshold share price   $ 11.00  
Number of trading days for calculating share price   20 days  
Number of consecutive trading days for calculating share price   30 days  
Share purchase price   $ 0.01  
v3.20.1
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Summary of Significant Accounting Policies [Line Items]    
Net of funds available to be withdrawn from trust for working capital purposes $ 750,000  
Federal depository insurance coverage 250,000 $ 250,000
Interest income earned on trust account $ 7,184,341 $ 6,187,823
Class A Common Stock [Member]    
Summary of Significant Accounting Policies [Line Items]    
Shares subject to possible redemption 34,447,737 33,427,182
Net Income Attributable To Common Stockholders Basic And Diluted $ 5,100,000 $ 5,400,000
Interest income earned on trust account $ 7,200,000 $ 6,200,000
Class A Common Stock [Member] | Private Placement [Member]    
Summary of Significant Accounting Policies [Line Items]    
Securities excluded from the calculation of basic loss per ordinary share 17,433,334 17,433,334
Cayman Islands Tax Information Authority [Member]    
Summary of Significant Accounting Policies [Line Items]    
Unrecognized tax benefits $ 0 $ 0
Accrued for interest and penalties $ 0 $ 0
v3.20.1
Initial Public Offering - Additional Information (Detail) - Class A Common Stock [Member] - $ / shares
12 Months Ended
Oct. 23, 2017
Dec. 31, 2019
Initial Public Offering [Member]    
Initial Public Offering [Line Items]    
Sale of units 34,500,000 34,500,000
Share unit price per share $ 10.00 $ 10.00
Number of shares in each unit 1  
Number of redeemable warrants in each unit 0.3333  
Warrant exercise price per share $ 11.50  
Over-Allotment Option [Member]    
Initial Public Offering [Line Items]    
Sale of units 4,500,000 4,500,000
v3.20.1
Private Placement - Additional Information (Detail) - Private Placement [Member] - Sponsors [Member] - USD ($)
$ / shares in Units, $ in Millions
12 Months Ended
Oct. 23, 2017
Dec. 31, 2019
Private Placement [Line Items]    
Number of private placement warrants issued 5,933,334 5,933,334
Proceeds from sale of private placement warrants to sponsors $ 8.9 $ 8.9
Class A Common Stock [Member]    
Private Placement [Line Items]    
Number of shares called by each warrant   1
Private placement shares issued price per share   $ 11.50
v3.20.1
Related Party Transactions - Additional Information (Detail)
12 Months Ended
Jan. 17, 2020
USD ($)
$ / shares
shares
Oct. 23, 2017
USD ($)
shares
Oct. 18, 2017
$ / mo
$ / h
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2018
USD ($)
Related Party Transaction [Line Items]          
Warrants price per share | $ / shares       $ 1.50  
Working capital loans | $       $ 0 $ 0
Accrued expenses - related parties | $       48,002 37,530
Subsequent Event [Member] | Fortress Subscription and Backstop Agreement [Member] | Fortress Investment Group LLC [Member]          
Related Party Transaction [Line Items]          
Investment Company, Committed Capital | $ $ 50,000,000        
Warrant [Member] | Maximum [Member]          
Related Party Transaction [Line Items]          
Loans convertible into warrants | $       1,500,000  
Sponsors [Member]          
Related Party Transaction [Line Items]          
Total expenses - related parties | $       268,000 257,000
Accrued expenses - related parties | $       $ 48,000 $ 37,500
Sponsors [Member] | Chief Financial Officer [Member]          
Related Party Transaction [Line Items]          
Monthly fee payable | $ / mo     5,000    
Deferred cash payment per hour | $ / h     330    
Affiliate of Sponsor [Member]          
Related Party Transaction [Line Items]          
Common stock conversion basis ratio       100.00%  
Monthly expense for office space and related support services to an affiliate | $ / mo     16,875    
Class F Common Stock [Member]          
Related Party Transaction [Line Items]          
Common stock conversion basis ratio       100.00%  
Class F Common Stock [Member] | Sponsors [Member]          
Related Party Transaction [Line Items]          
Stock issued during period, shares, new issues | shares   8,625,000      
Stock issued during period, value, new issues | $   $ 25,000      
Number of shares to be forfeited if over-allotment option is not exercised | shares   1,125,000      
Common stock conversion basis ratio       100.00%  
Ratio of shares to be received as adjustment to existing shares       11.11%  
Class A Common Stock [Member] | Subsequent Event [Member] | Fortress Subscription and Backstop Agreement [Member]          
Related Party Transaction [Line Items]          
Price per share | $ / shares $ 10.00        
Class A Common Stock [Member] | Chief Financial Officer [Member] | Subsequent Event [Member]          
Related Party Transaction [Line Items]          
Number of shares obligated to be issued | shares 10,069        
Class A Common Stock [Member] | Sponsors [Member]          
Related Party Transaction [Line Items]          
Threshold share price for transfer of shares | $ / shares       $ 12.00  
Number of trading period for transfer of shares       20 days  
Number of consecutive trading period for transfer of shares       30 days  
Period from completion of business combination       150 days  
Class A Common Stock [Member] | Sponsors [Member] | Chief Financial Officer [Member]          
Related Party Transaction [Line Items]          
Ordinary shares to be issued | shares       9,652  
Class A Common Stock [Member] | Anchor Investors [Member]          
Related Party Transaction [Line Items]          
Shares to be sold under forward agreements | shares       15,789,474  
Forward agreements price per share | $ / shares       $ 9.50  
Forward agreements, aggregate amount | $       $ 150,000,000  
Number Of Shares To Be Sold Under Forward Sale Agreements | shares       15,789,474  
Class A Common Stock [Member] | Anchor Investors [Member] | Subsequent Event [Member]          
Related Party Transaction [Line Items]          
Shares to be sold under forward agreements | shares 5,000,000        
Forward agreements price per share | $ / shares $ 10.00        
Number Of Shares To Be Sold Under Forward Sale Agreements | shares 5,000,000        
Class A Common Stock [Member] | Anchor Investors [Member] | Contingent Call Shares [Member]          
Related Party Transaction [Line Items]          
Threshold share price | $ / shares       $ 11.00  
Number of trading days for calculating share price       20 days  
Number of consecutive trading days for calculating share price       30 days  
Share purchase price | $ / shares       $ 0.01  
Ratio to determine shares that may be purchased       5.56%  
Common Class F And Private Placement Warrants [Member] | Anchor Investors [Member] | Subsequent Event [Member]          
Related Party Transaction [Line Items]          
Percentage of equity forfeited 25.00%        
v3.20.1
Commitments & Contingencies - Additional Information (Detail) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 12 Months Ended
Oct. 23, 2017
Jan. 31, 2020
Dec. 31, 2019
Other Commitments [Line Items]      
Description of registration rights     Pursuant to the forward purchase agreements, the Company agreed to file within 30 days after the closing of the business combination a registration statement for a secondary offering of the forward purchase shares and contingent call shares and to maintain the effectiveness of such registration statement until the earliest of (A) the date on which the anchor investors cease to hold the securities covered thereby, (B) the date all of the securities covered thereby can be sold publicly without restriction or limitation under Rule 144 under the Securities Act, subject to certain conditions and limitations set forth in the forward purchase agreements.
Subsequent Event [Member]      
Other Commitments [Line Items]      
Deferred underwriting commissions   $ 6,100  
Underwriting Expense After Discount   $ 6,100  
Class A Common Stock [Member]      
Other Commitments [Line Items]      
Underwriters option period     45 days
Underwriter option to purchase additional shares     4,500,000
Payment for underwriting discount per unit     $ 0.20
Payment for underwriting discount     $ 6,900
Deferred underwriting discount per unit     $ 0.35
Deferred underwriting commissions $ 12,075    
v3.20.1
Stockholders' Equity - Additional Information (Detail) - $ / shares
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Class of Stock [Line Items]    
Preferred shares, authorized 1,000,000 1,000,000
Preferred shares, par value $ 0.0001 $ 0.0001
Preferred shares, issued 0 0
Preferred shares, outstanding 0 0
Warrant exercise period The warrants will become exercisable on the later of (a) 30 days after the completion of a business combination or (b) 12 months from the closing of the Initial Public Offering  
Description of registration rights Pursuant to the forward purchase agreements, the Company agreed to file within 30 days after the closing of the business combination a registration statement for a secondary offering of the forward purchase shares and contingent call shares and to maintain the effectiveness of such registration statement until the earliest of (A) the date on which the anchor investors cease to hold the securities covered thereby, (B) the date all of the securities covered thereby can be sold publicly without restriction or limitation under Rule 144 under the Securities Act, subject to certain conditions and limitations set forth in the forward purchase agreements.  
Warrants expiration period after business combination 5 years  
Period from completion of the business combination private placement warrants be transferred, assigned or sold 30 days  
Redemption price per warrant $ 0.01  
Warrants period of notice prior to redemption 30 days  
Share price to be attained for redemption $ 18.00  
Number of trading days 20 days  
Number of consecutive trading days 30 days  
Warrant [Member]    
Class of Stock [Line Items]    
Description of registration rights The Company has agreed that as soon as practicable, but in no event later than 15 business days, after the closing of a business combination, the Company will use its best efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the Class A common stock issuable upon exercise of the warrants. The Company will use its best efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the Class A common stock issuable upon exercise of the warrants is not effective by the sixtieth (60th) day after the closing of the initial business combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption.  
Class A Common Stock [Member]    
Class of Stock [Line Items]    
Common stock, authorized 200,000,000 200,000,000
Common stock, par value $ 0.0001 $ 0.0001
Common stock voting rights one vote for each share on each matter on which they are entitled to vote.  
Shares, issued 34,500,000 34,500,000
Shares, outstanding 34,500,000 34,500,000
Shares subject to possible redemption, issued 34,447,737 34,447,737
Shares subject to possible redemption, issued 33,427,182 33,427,182
Common stock, shares issued 52,263 1,072,818
Class A Common Stock [Member] | Public Warrants [Member]    
Class of Stock [Line Items]    
Warrants period of notice prior to redemption 30 days  
Share price to be attained for redemption $ 10.00  
Class F Common Stock [Member]    
Class of Stock [Line Items]    
Common stock, authorized 20,000,000 20,000,000
Common stock, par value $ 0.0001 $ 0.0001
Common stock voting rights one vote for each share on each matter on which they are entitled to vote.  
Common stock, shares issued 8,625,000 8,625,000
Common shareholder percentage to elect board of directors 66.70%  
Common stock conversion basis ratio 100.00%  
Ordinary share conversion percentage of share holder agreement required 66.67%  
Percentage value of outstanding shares for conversion 20.00%  
v3.20.1
Fair Value Measurements - Summary of Fair Value Measurements Measured on Recurring Basis (Detail) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Investments held in Trust Account $ 355,032,480 $ 350,437,823
Quoted Prices in Active Markets (Level 1) [Member]    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Investments held in Trust Account $ 355,032,480 $ 350,437,823
v3.20.1
Income Taxes - Summary of deferred tax assets (Detail) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Deferred tax asset    
Net operating loss carryforward  
Startup/Organizational Costs 286,152 $ 8,937
Total deferred tax assets 286,152 8,937
Valuation Allowance (286,152) (8,937)
Deferred tax asset, net of allowance
v3.20.1
Income Taxes - Summary of components of income tax provision (Detail) - USD ($)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Current    
Federal $ 1,467,919 $ 44,450
State  
Deferred    
Federal  
State  
Income tax provision expense $ 1,467,919 $ 44,450
v3.20.1
Income Taxes - Summary of Effective Income Tax Rate Reconciliation (Detail)
12 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]    
Statutory federal income tax rate 21.00% 21.00%
State taxes, net of federal tax benefit 0.00% 0.00%
Valuation allowance 4.90% 5.30%
Income tax provision expense 25.90% 26.30%
v3.20.1
Income Taxes - Additional Information (Detail) - USD ($)
Dec. 31, 2019
Dec. 31, 2018
Income Tax Disclosure [Abstract]    
Total deferred tax assets $ 286,152 $ 8,937
v3.20.1
Merger Agreement - Additional Information (Detail)
12 Months Ended
Dec. 31, 2019
USD ($)
Director
$ / shares
shares
Sep. 26, 2017
shares
Business Acquisition [Line Items]    
Minimum net tangible assets to complete business combination | $ $ 5,000,001  
Fortress Mosaic Sponsor LLC [Member]    
Business Acquisition [Line Items]    
Common Stock Subscription 12,500,000  
Merger Agreement [Member]    
Business Acquisition [Line Items]    
Termination fee | $ $ 81,060,000  
Merger Agreement [Member] | Tranche One [Member]    
Business Acquisition [Line Items]    
Common Stock Subscription 12,500,000  
Number of trading period for transfer of shares 20 days  
Number of consecutive trading period for transfer of shares 30 days  
Threshold Price For Shares Issuance | $ / shares $ 12.50  
Merger Agreement [Member] | Tranche two [Member]    
Business Acquisition [Line Items]    
Common Stock Subscription 12,500,000  
Number of trading period for transfer of shares 20 days  
Number of consecutive trading period for transfer of shares 30 days  
Threshold Price For Shares Issuance | $ / shares $ 15.00  
Merger Agreement [Member] | Tranche Three [Member]    
Business Acquisition [Line Items]    
Common Stock Subscription 12,500,000  
Number of trading period for transfer of shares 20 days  
Number of consecutive trading period for transfer of shares 30 days  
Threshold Price For Shares Issuance | $ / shares $ 17.50  
Stockholders agreement [Member]    
Business Acquisition [Line Items]    
Percentage of nominee directors entitled for nomination 40.00%  
Stockholders agreement [Member] | Minimum [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 30.00%  
Stockholders agreement [Member] | Black stone [Member] | Condition Two [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 50.00%  
Stockholders agreement [Member] | Black stone [Member] | Condition Three [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 30.00%  
Stockholders agreement [Member] | Black stone [Member] | Condition Four [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 20.00%  
Percentage of nominee directors entitled for nomination 20.00%  
Stockholders agreement [Member] | Black stone [Member] | Condition Five [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 5.00%  
Percentage of nominee directors entitled for nomination 10.00%  
Stockholders agreement [Member] | Black stone [Member] | Minimum [Member] | Condition One [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 50.00%  
Stockholders agreement [Member] | Black stone [Member] | Minimum [Member] | Condition Two [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 40.00%  
Stockholders agreement [Member] | Fortress Mosaic Sponsor LLC [Member]    
Business Acquisition [Line Items]    
Number of nominee directors | Director 1  
Stockholders agreement [Member] | Fortress Mosaic Sponsor LLC [Member] | Minimum [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 50.00%  
Stockholders agreement [Member] | Summit Designator [Member]    
Business Acquisition [Line Items]    
Number of nominee directors | Director 1  
Sponsor agreement [Member]    
Business Acquisition [Line Items]    
Threshold share price | $ / shares $ 15.00  
Sponsor agreement [Member] | Tranche One [Member]    
Business Acquisition [Line Items]    
Threshold share price | $ / shares $ 12.50  
Founder shares unvested percentage 50.00%  
Private placement warrants unvested percentage 50.00%  
Sponsor agreement [Member] | Tranche two [Member]    
Business Acquisition [Line Items]    
Threshold share price | $ / shares $ 12.50  
Founder shares unvested percentage 25.00%  
Private placement warrants unvested percentage 50.00%  
Sponsor agreement [Member] | Tranche Three [Member]    
Business Acquisition [Line Items]    
Threshold share price | $ / shares $ 15.00  
Founder shares unvested percentage 25.00%  
Sponsor agreement [Member] | Summit Designator [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 50.00%  
Support Agreement [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 92.00%  
Support and Services Agreement [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 5.00%  
Monitoring fee 1.00%  
Equity Interest Fair value | $ $ 25,000,000  
Fortress Investment Group LLC [Member]    
Business Acquisition [Line Items]    
Common Stock Subscription 12,500,000  
Blackstone Group Inc [Member]    
Business Acquisition [Line Items]    
Common Stock Subscription 10,000,000  
Three One Three Acquisition LLC [Member] | Support Agreement [Member]    
Business Acquisition [Line Items]    
Equity Interest Ownership Percentage 35.00%  
Common Stock [Member] | Sponsor agreement [Member]    
Business Acquisition [Line Items]    
Threshold share price | $ / shares $ 12.00  
Number of trading period for transfer of shares 20 days  
Number of consecutive trading period for transfer of shares 30 days  
Period from completion of business combination 150 days  
Vivint Smart Home [Member]    
Business Acquisition [Line Items]    
Number of Shares, Contingently Issuable 25,000,000  
Shares subject to possible redemption   10,350,000
Vivint Smart Home [Member] | Merger Agreement [Member]    
Business Acquisition [Line Items]    
Business combination, Reduction in enterprise value | $ $ 4,100,000,000  
Business combination, Reduction in termination fee | $ $ 32,400,000  
Common Class A [Member] | Vivint Smart Home [Member] | Merger Agreement [Member]    
Business Acquisition [Line Items]    
Business combination, Number of share issued 84.5320916792  
Threshold share price | $ / shares $ 17.50  
Business combination, VGI exchange ratio | shares 0.0864152412  
Business combination, Shares to be issued 12,500,000  
Common Class A [Member] | Vivint Smart Home [Member] | Merger Agreement [Member] | Previously Reported [Member]    
Business Acquisition [Line Items]    
Business combination, Number of share issued 209.6849221312  
Business combination, VGI exchange ratio | shares 0.2076986176