General form of registration statement for all companies including face-amount certificate companies

Summary of Significant Accounting Policies (Tables)

v3.22.1
Summary of Significant Accounting Policies (Tables)
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
Accounting Policies [Abstract]    
Schedule of Fair Value Assumptions These two types of inputs have created the following fair-value hierarchy:
Level 1:
Quoted prices for identical instruments in active markets;
Level 2:
Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and
Level 3:
Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
The following table presents the fair value per warrant and the valuation assumptions under the Black-Scholes OPM as of March 31, 2022 and December 31, 2021.
March 31, 2022 December 31, 2021
Fair value $ 2.63  $ 2.47 
Exercise price $ 11.50  $ 11.50 
Common stock price $ 8.48  $ 6.75 
Expected option term (years) 4.42 years 4.67 years
Expected volatility 45.90  % 60.50  %
Risk-free rate of return 2.41  % 1.21  %
Expected annual dividend yield —  % —  %
The assumptions used in the Black-Scholes OPM were as follows:
Roccor Black-Scholes OPM Assumptions
Risk-free interest rate
 0.1  %
Revenue discount rate
 7.0  %
Revenue volatility
 30.0  %
Earnout payment discount rate
 4.0  %
As of March 31, 2022, the Company expects to pay the Roccor contingent earnout during the second half of 2022 in accordance with the acquisition agreement.
The fair value of the earnout is arrived at using the Black-Scholes option pricing model (“OPM”) using the following assumptions:
MIS Black-Scholes OPM Assumptions
Risk-free interest rate
 0.05  %
Revenue volatility
 51.7  %
The assumptions used in the Black-Scholes OPM were as follows:
Roccor Black-Scholes OPM Assumptions
Risk-free interest rate
 0.1  %
Revenue discount rate
 7.0  %
Revenue volatility
 30.0  %
Earnout payment discount rate
 4.0  %
The private warrants were valued at $2.81 and $2.47 per warrant as of September 2, 2021 and December 31, 2021, respectively, under the Black-Scholes OPM using the following assumptions:
September 2,
2021		 December 31, 2021
Exercise price $ 11.50  $ 11.50 
Common stock price $ 10.50  $ 6.75 
Expected option term (years) 5 4.67
Expected volatility 32.80  % 60.50  %
Risk-free rate of return 0.78  % 1.21  %
Expected annual dividend yield —  % —  %
Property, Plant and Equipment, net
Expected useful lives for property, plant and equipment are reviewed at least annually. Estimated useful lives are as follows:
Estimated useful
life in years
Computer equipment
 3
Furniture and fixtures
 7
Laboratory equipment
3-10
Software
3-5
Leasehold improvements
5 or lease term
Expected useful lives are reviewed at least annually. Estimated useful lives are as follows:
Property, plant and equipment Estimated useful life in years
Computer equipment
 3
Furniture and fixtures
 7
Laboratory equipment
3-10
Software
3-5
Leasehold improvements
5 or lease term
The property, plant and equipment, net balances were as follows:
Successor
December 31,
2021		 December 31,
2020
Computer equipment
 $ 1,380  $ 739 
Furniture and fixtures
 783  442 
Laboratory equipment
 16,856  1,357 
Software
 —  359 
Leasehold improvements
 2,205  672 
Construction in process 415  — 
Less: accumulated depreciation
 (2,255) (307)
Total property, plant and equipment, net $ 19,384  $ 3,262 
The table below presents the depreciation expense related to property, plant and equipment for the following periods:
Successor Predecessor
Year Ended December 31, 2021 Period from February 10, 2020 to December 31, 2020 Period from January 1, 2020 to June 21, 2020
Depreciation expense
 $ 1,944  $ 307  $ 59 
Schedule of Advertising Costs   The table below presents the advertising cost for the following periods:
Successor Predecessor
Year Ended December 31, 2021 Period from February 10, 2020 to December 31, 2020 Period from January 1, 2020 to June 21, 2020
Advertising costs $ 1,156  $ 147  $ 86