Annual report pursuant to Section 13 and 15(d)

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

v3.21.1
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
12 Months Ended
Dec. 31, 2020
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS  
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company previously accounted for its outstanding Private Placement Warrants issued in connection with its Initial Public Offering as components of equity instead of as derivative liabilities. The warrant agreement governing the warrants includes a provision that provides for potential changes to the settlement amounts dependent upon the characteristics of the holder of the warrant. In addition, the warrant agreement includes a provision that in the event of a tender or exchange offer made to and accepted by holders of more than 50% of the outstanding shares of a single class of common shares, all holders of the warrants would be entitled to receive cash for their warrants (the “tender offer provision”).

On April 12, 2021, the SEC released a Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (the “SEC Staff Statement”). Specifically, the SEC Staff Statement focused on certain settlement terms and provisions related to certain tender offers following a business combination, which terms are similar to those contained in the warrant agreement governing our warrants. Following the SEC Staff Statement, the Company’s management further evaluated the warrants under Accounting Standards Codification (“ASC”) Subtopic 815-40, Contracts in Entity’s Own Equity.  ASC Section 815-40-15 addresses equity versus liability treatment and classification of equity-linked financial instruments, including warrants, and states that a warrant may be classified as a component of equity only if, among other things, the warrant is indexed to the issuer’s common stock.  Under ASC Section 815-40-15, a warrant is not indexed to the issuer’s common stock if the terms of the warrant require an adjustment to the exercise price upon a specified event and that event is not an input to the fair value of the warrant.  Based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the Company’s Private Placement Warrants are not indexed to the Company’s common shares in the manner contemplated by ASC Section 815-40-15 because the holder of the instrument is not an input into the pricing of a fixed-for-fixed option on equity shares. In addition, based on management’s evaluation, the Company’s audit committee, in consultation with management concluded the tender offer provision included in the warrant agreement fails the “classified in shareholders’ equity” criteria as contemplated by ASC Section 815-40-25.

As a result of the above, the Company should have classified the private warrants as derivative liabilities in its previously issued financial statements. Under this accounting treatment, the Company is required to measure the fair value of the warrants at the end of each reporting period and recognize changes in the fair value from the prior period in the Company’s operating results for the current period.

The Company’s accounting for the private warrants as components of equity instead of as derivative liabilities did not have any effect on the Company’s previously reported operating expenses, cash flows or cash.

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet as of

    

 

 

    

 

 

    

 

 

October 22, 2019

 

As Reported

 

Adjustment

 

As Restated

 

 

 

 

 

 

 

 

 

 

Warrant Liabilities

 

$

 —

 

$

1,356,300

 

$

1,356,300

Total Liabilities

 

 

82,127

 

 

1,356,300

 

 

1,438,427

Ordinary shares subject to redemption

 

 

133,895,920

 

 

(1,356,300)

 

 

132,539,620

Ordinary Shares

 

 

401

 

 

14

 

 

415

Additional paid-in capital

 

$

5,052,511

 

$

4,064

 

$

5,056,575

Retained earnings (Accumulated deficit)

 

 

(52,908)

 

 

(4,078)

 

 

(56,986)

Total Shareholders’ Equity

 

$

5,000,004

 

$

 —

 

$

5,000,004

 

 

 

 

 

 

 

 

 

 

Number of shares subject to possible redemption

 

 

13,389,592

 

 

(135,630)

 

 

13,253,962

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet as of

    

 

 

    

 

 

    

 

 

December 31, 2019

 

As Reported

 

Adjustment

 

As Restated

Warrant Liabilities

 

$

 —

 

$

1,972,800

 

$

1,972,800

Total Liabilities

 

 

65,716

 

 

1,972,800

 

 

2,038,516

Ordinary shares subject to redemption

 

 

134,190,490

 

 

(1,972,800)

 

 

132,217,690

Ordinary Shares

 

 

398

 

 

20

 

 

418

Additional paid-in capital

 

$

4,757,944

 

$

620,558

 

$

5,378,502

Retained earnings (Accumulated deficit)

 

$

241,659

 

$

(620,578)

 

$

(378,919)

Total Shareholders’ Equity

 

$

5,000,001

 

$

 —

 

$

5,000,001

 

 

 

 

 

 

 

 

 

 

Number of shares subject to possible redemption

 

 

13,419,049

 

 

(197,280)

 

 

13,221,769

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the

    

 

 

    

 

 

    

 

 

period from July 30, 2019 (inception) to December 31, 2019

 

As Reported

 

Adjustment

 

As Restated

Transaction costs allocable to warrant liabilities

 

$

 —

 

$

(4,078)

 

$

(4,078)

Change in fair value of warrant liabilities

 

 

 —

 

 

(616,500)

 

 

(616,500)

Net income

 

$

241,659

 

$

(620,578)

 

$

(378,919)

Basic and diluted net loss per ordinary share, non-redeemable

 

$

(0.05)

 

$

(0.17)

 

$

(0.22)

 

 

 

 

 

 

 

 

 

 

 

Statement of Cash Flows for the

    

 

 

    

Period 

    

 

 

year ended December 31, 2019

 

As Reported

 

 

Adjustment

 

As Restated

Net income (loss)

 

$

241,659

 

$

(620,578)

 

$

(378,919)

Change in fair value of warrant liabilities

 

$

 —

 

$

616,500

 

$

616,500

Transaction costs allocable to warrant liabilities

 

$

 —

 

$

4,078

 

$

4,078

Initial classification of warrant liabilities

 

$

 —

 

$

1,356,300

 

$

1,356,300

Initial classification of ordinary shares subject to possible redemption

 

$

133,895,920

 

$

(1,356,300)

 

$

132,539,620

Change in value of ordinary shares subject to possible redemption

 

$

294,570

 

$

(616,500)

 

$

(321,930)

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet as of

    

 

 

    

Period 

    

 

 

March 31, 2020 (unaudited)

 

As Reported

 

Adjustment

 

As Restated

Warrant Liabilities

 

$

 —

 

$

1,027,500

 

$

1,027,500

Total Liabilities

 

 

53,215

 

 

1,027,500

 

 

1,080,715

Ordinary shares subject to redemption

 

 

134,537,080

 

 

(1,027,500)

 

 

133,509,580

Ordinary Shares

 

 

395

 

 

10

 

 

405

Additional paid-in capital

 

$

4,411,357

 

$

(324,732)

 

$

4,086,625

Retained earnings

 

$

588,253

 

$

324,722

 

$

912,975

Total Shareholders’ Equity

 

$

5,000,005

 

$

 —

 

$

5,000,005

 

 

 

 

 

 

 

 

 

 

Number of shares subject to possible redemption

 

 

13,453,708

 

 

(102,750)

 

 

13,350,958

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet as of

 

 

 

 

Period

 

 

 

June 30, 2020 (unaudited)

    

As Reported

    

Adjustment

    

As Restated

Warrant Liabilities

 

$

 —

 

$

2,383,800

 

$

2,383,800

Total Liabilities

 

 

16,366

 

 

2,383,800

 

 

2,400,166

Ordinary shares subject to redemption

 

 

134,591,590

 

 

(2,383,800)

 

 

132,207,790

Ordinary Shares

 

 

394

 

 

24

 

 

418

Additional paid-in capital

 

$

4,356,848

 

$

1,031,554

 

$

5,388,402

Retained earnings (Accumulated deficit)

 

$

642,765

 

$

(1,031,578)

 

$

(388,813)

Total Shareholders’ Equity

 

$

5,000,007

 

$

 —

 

$

5,000,007

 

 

 

 

 

 

 

 

 

 

Number of shares subject to possible redemption

 

 

13,459,159

 

 

(238,380)

 

 

13,220,779

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet as of

 

 

 

 

Period

 

 

 

September 30, 2020 (unaudited)

    

As Reported

    

Adjustment

    

As Restated

Warrant Liabilities

 

$

 —

 

$

2,548,200

 

$

2,548,200

Total Liabilities

 

 

15,147

 

 

2,548,200

 

 

2,563,347

Ordinary shares subject to redemption

 

 

134,531,290

 

 

(2,548,200)

 

 

131,983,090

Ordinary Shares

 

 

395

 

 

25

 

 

420

Additional paid-in capital

 

$

4,417,147

 

$

1,195,953

 

$

5,613,100

Retained earnings (Accumulated deficit)

 

$

582,459

 

$

(1,195,978)

 

$

(613,519)

Total Shareholders’ Equity

 

$

5,000,001

 

$

 0

 

$

5,000,001

 

 

 

 

 

 

 

 

 

 

Number of shares subject to possible redemption

 

 

13,453,129

 

 

(254,820)

 

 

13,198,309

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet as of

    

 

 

    

Period 

    

 

 

December 31, 2020

 

As Reported

 

Adjustment

 

As Restated

Warrant Liabilities

 

$

 —

 

$

3,452,400

 

$

3,452,400

Total Liabilities

 

 

709,732

 

 

3,452,400

 

 

4,162,132

Ordinary shares subject to redemption

 

 

134,138,890

 

 

(3,452,400)

 

 

130,686,490

Ordinary Shares

 

 

399

 

 

34

 

 

433

Additional paid-in capital

 

$

4,809,543

 

$

2,100,144

 

$

6,909,687

Retained earnings (Accumulated deficit)

 

$

190,067

 

$

(2,100,178)

 

$

(1,910,111)

Total Shareholders’ Equity

 

$

5,000,009

 

$

 —

 

$

5,000,009

 

 

 

 

 

 

 

 

 

 

Number of shares subject to possible redemption

 

 

13,413,889

 

 

(345,240)

 

 

13,068,649

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the

    

 

 

    

Period 

    

 

 

three months ended March 31, 2020 (unaudited)

 

As Reported

 

Adjustment

 

As Restated

Change in fair value of warrant liabilities

 

$

 —

 

$

945,300

 

$

945,300

Net income

 

$

346,594

 

$

945,300

 

$

1,291,894

Basic and diluted net loss per ordinary share, non-redeemable

 

$

(0.06)

 

$

0.27

 

$

0.21

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the

    

 

 

    

Period 

    

 

 

six months ended June 30, 2020 (unaudited)

 

As Reported

 

Adjustment

 

As Restated

Change in fair value of warrant liabilities

 

$

 —

 

$

(411,000)

 

$

(411,000)

Net income

 

$

401,106

 

$

(411,000)

 

$

(9,894)

Basic and diluted net loss per ordinary share, non-redeemable

 

$

(0.08)

 

$

(0.11)

 

$

(0.19)

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the

    

 

 

    

Period

    

 

 

three months ended June 30, 2020 (unaudited)

 

As Reported

 

Adjustment

 

As Restated

Change in fair value of warrant liabilities

 

$

 —

 

$

(1,356,300)

 

$

(1,356,300)

Net income

 

$

54,512

 

$

(1,356,300)

 

$

(1,301,788)

Basic and diluted net loss per ordinary share, non-redeemable

 

$

(0.02)

 

$

(0.38)

 

$

(0.40)

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the

    

 

 

    

Period

    

 

 

nine months ended September 30, 2020 (unaudited)

 

As Reported

 

Adjustment

 

As Restated

Change in fair value of warrant liabilities

    

$

 —

    

$

(575,400)

    

$

(575,400)

Net income (loss)

 

$

340,800

 

$

(575,400)

 

$

(234,600)

Basic and diluted net loss per ordinary share, non-redeemable

 

$

(0.10)

 

$

(0.16)

 

$

(0.26)

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the

    

 

 

    

Period

    

 

 

three months ended September 30, 2020 (unaudited)

 

As Reported

 

Adjustment

 

As Restated

Change in fair value of warrant liabilities

 

$

 —

 

$

(164,400)

 

$

(164,400)

Net income (loss)

 

$

(60,306)

 

$

(164,400)

 

$

(224,706)

Basic and diluted net loss per ordinary share, non-redeemable

 

$

(0.30)

 

$

0.23

 

$

(0.07)

 

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the

    

 

 

    

Period

    

 

 

year ended December 31, 2020

 

As Reported

 

Adjustment

 

As Restated

Change in fair value of warrant liabilities

    

$

 —

    

$

(1,479,600)

    

$

(1,479,600)

Net income (loss)

 

$

(51,592)

 

$

(1,479,600)

 

$

(1,531,192)

Basic and diluted net loss per ordinary share, non-redeemable

 

$

(0.22)

 

$

(0.41)

 

$

(0.63)

 

 

 

 

 

 

 

 

 

 

 

Statement of Cash Flows for the

    

 

 

    

 

 

    

 

 

period ended March 31, 2020 (unaudited)

 

As Reported

 

Period Adjustment

 

As Restated

Net income (loss)

 

$

346,594

 

$

945,300

 

$

1,291,894

Change in fair value of warrant liabilities

 

$

 —

 

$

(945,300)

 

$

(945,300)

Change in value of ordinary shares subject to possible redemption

 

$

346,590

 

$

945,300

 

$

(1,291,890)

 

 

 

 

 

 

 

 

 

 

 

Statement of Cash Flows for the

    

 

 

    

 

 

    

 

 

period ended June 30, 2020 (unaudited)

 

As Reported

 

Period Adjustment

 

As Restated

Net income (loss)

 

$

401,106

 

$

(411,000)

 

$

(9,894)

Change in fair value of warrant liabilities

 

$

 —

 

$

411,000

 

$

411,000

Change in value of ordinary shares subject to possible redemption

 

$

401,100

 

$

(411,000)

 

$

(9,900)

 

 

 

 

 

 

 

 

 

 

 

Statement of Cash Flows for the

    

 

 

    

 

 

    

 

 

period ended September 30, 2020 (unaudited)

 

As Reported

 

Period Adjustment

 

As Restated

Net income (loss)

 

$

340,800

 

$

(575,400)

 

$

(234,600)

Change in fair value of warrant liabilities

 

$

 —

 

$

575,400

 

$

575,400

Change in value of ordinary shares subject to possible redemption

 

$

340,800

 

$

(575,400)

 

$

(234,600)

 

 

 

 

 

 

 

 

 

 

 

Statement of Cash Flows for the

    

 

 

    

 

 

    

 

 

year ended December 31, 2020

 

As Reported

 

Period Adjustment

 

As Restated

Net income (loss)

 

$

(51,592)

 

$

(1,479,600)

 

$

(1,531,192)

Change in fair value of warrant liabilities

 

$

 —

 

$

1,479,600

 

$

1,479,600

Change in value of ordinary shares subject to possible redemption

 

$

(51,600)

 

$

(1,479,600)

 

$

(1,531,200)