RECURRING FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2020

RECURRING FAIR VALUE MEASUREMENTS [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents information about the Company’s assets and liabilities that were measured at fair value on a recurring basis as of December 31, 2020, and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.

	December 31,		Quoted Prices In Active Markets		Significant Other Observable Inputs		Significant Other Unobservable Inputs
	2020		(Level 1)		(Level 2)		(Level 3)
Assets:
Money Market funds held in Trust Account	$	250,004,549	$	250,004,549	$	-	$	-
	$	250,004,549	$	250,004,549	$	-	$	-
Liabilities:
Warrant Liabilities—Public Warrants	$	13,750,000	$	13,750,000	$	-	$	-
Warrant Liabilities—Private Placement Warrants		7,620,200		-		-		7,620,200
	$	21,370,200	$	13,750,000	$	-	$	7,620,200

Changes in Fair Value of Warrant Liability

The following table sets forth a summary of the changes in the fair value of the warrant liability for the period from July 27, 2020 (Inception) through December 31, 2020:

	Public Warrant Liabilities		Private Warrant Liabilities		Warrant Liabilities
Fair value as of July 27, 2020 (Inception)	$	-	$	-	$	-
Initial fair value of warrant liability upon issuance at October 6, 2020 (initial measurement)		12,538,750		7,000,000		19,538,750
Revaluation of warrant liability included in other income within the statement of income for the period from October 6, 2020 (initial measurement) through December 31, 2020		1,211,250		620,200		1,831,450
Fair value as of December 31, 2020	$	13,750,000	$	7,620,200	$	21,370,200

Key Inputs in Monte Carlo Simulation for Public and Private Placement Warrants

The key inputs into the Monte Carlo simulation for the Public and Private Placement Warrants were as follows:

Input	October 6, 2020 (Initial Measurement)			December 31, 2020
Stock price	$	9.87		$	10.08
Exercise price	$	11.50		$	11.50
Risk free rate		0.76	%		0.93	%
Trading days per year		252			252
Annual volatility		17.5	%		15.0	%
Time to exercise (years)		5.75			5.5

Changes in Fair Value for Warrants Classified as Level 3

The following table provides a reconciliation of changes in fair value of the initial balance and ending balance for warrants classified as Level 3:

Beginning balance	$	—
Initial classification of Public Warrants at fair value on October 6, 2020		12,538,750
Public Warrants reclassified to level 1 ⁽¹⁾		(13,750,000	)
Change in fair value		1,211,250
Private Warrants reclassified to Level 3⁽¹⁾		7,000,000
Change in fair value		620,200
Fair value at December 31, 2020	$	7,620,200

(1)

Assumes the Public Warrants and Private Warrants were reclassified on December 31, 2020

Atlantic Avenue Acquisition Corp 10-K/A