Registration of securities issued in business combination transactions

Restatement Of Previously Issued Financial Statements

v3.21.1
Restatement Of Previously Issued Financial Statements
12 Months Ended
Dec. 31, 2020
Prior Period Adjustment [Abstract]  
Restatement Of Previously Issued Financial Statements
NOTE 2 — RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
The Company previously accounted for its outstanding Public Warrants (as defined in Note 4) and 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”).
In connection with the audit of the Company’s financial statements for the year ended December 31, 2020, 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 and after discussion with the Company’s independent registered public accounting firm, 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 and after discussion with the Company’s independent registered public accounting firm, 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 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 (
S
ee Notes 4, 6, 9, 10 and 12).
The Company’s accounting for the warrants as components of equity instead of as derivative liabilities did not have any effect on the Company’s previously reported operating expenses or cash.
 
    
As

Previously
Reported
   
Adjustments
   
As

Restated
 
Balance sheet as of November 5, 2019 (audited)
                        
Total Liabilities
   $ 9,625,000     $ 13,037,500     $ 22,662,500  
Warrant Liabilities
     —         13,037,500       13,037,500  
Class A Common Stock Subject to Possible Redemption
     261,728,500       (13,037,500     248,691,000  
Class A Common Stock
     133       130       263  
Additional Paid-in Capital
     5,016,450       491,371       5,507,821  
Accumulated Deficit
     (17,365     (491,501     (508,866
Total Stockholders’ Equity
     5,000,009       —         5,000,009  
       
Number of Class A common stock subject to redemption
     26,172,850       (1,303,750     24,869,100  
       
Balance sheet as of December 31, 2019 (audited)
                        
Total Liabilities
   $ 11,345,118     $ 21,807,000     $ 33,152,118  
Warrant Liabilities
     —         21,807,000       21,807,000  
Class A Common Stock Subject to Possible Redemption
     301,900,836       (21,807,000     280,093,836  
Class A Common Stock
     148       217       365  
Additional Paid-in Capital
     4,650,349       7,560,356       12,210,705  
(Accumulated Deficit) Retained Earnings
     348,716       (7,560,573     (7,211,857
Total Stockholders’ Equity
     5,000,004       —         5,000,004  
       
Number of Class A common stock subject to redemption
     30,142,702       (2,177,278     27,965,424  
       
Balance sheet as of March 31, 2020 (unaudited)
                        
Total Liabilities
   $ 11,569,881     $ 16,413,500     $ 27,983,381  
Warrant Liabilities
     —         16,413,500       16,413,500  
Class A Common Stock Subject to Possible Redemption
     302,949,785       (16,413,500     286,536,285  
Class A Common Stock
     150       163       313  
Additional Paid-in Capital
     3,601,398       2,166,910       5,768,308  
(Accumulated Deficit) Retained Earnings
     1,397,670       (2,167,073     (769,403
Total Stockholders’ Equity
     5,000,009       —         5,000,009  
       
Number of Class A common stock subject to redemption
     30,120,192       (1,631,880     28,488,312  
       
Balance sheet as of June 30, 2020 (unaudited)
                        
Total Liabilities
   $ 11,436,321     $ 25,427,625     $ 36,863,946  
Warrant Liabilities
     —         25,427,625       25,427,625  
Class A Common Stock Subject to Possible Redemption
     302,835,347       (25,427,625     277,407,722  
Class A Common Stock
     150       253       403  
Additional Paid-in Capital
     3,715,836       11,180,945       14,896,781  
(Accumulated Deficit) Retained Earnings
     1,283,227       (11,181,198     (9,897,971
Total Stockholders’ Equity
     5,000,004       —         5,000,004  
       
Number of Class A common stock subject to redemption
     30,119,559       (2,528,994     27,590,565  
       
Balance sheet as of September 30, 2020 (unaudited)
                        
Total Liabilities
   $ 12,941,784     $ 34,042,250     $ 46,984,034  
Warrant Liabilities
     —         34,042,250       34,042,250  
Class A Common Stock Subject to Possible Redemption
     300,966,968       (34,042,250     266,924,718  
Class A Common Stock
     171       338       509  
Additional Paid-in Capital
     5,584,194       19,795,485       25,379,679  
Accumulated Deficit
     (585,146     (19,795,823     (20,380,969
Total Stockholders’ Equity
     5,000,010       —         5,000,010  
       
Number of Class A common stock subject to redemption
     29,908,965       (3,382,991     26,525,974  
       
Balance sheet as of December 31, 2020 (audited)
                        
Total Liabilities
   $ 13,226,713     $ 35,731,875     $ 48,958,588  
Warrant Liabilities
     —         35,731,875       35,731,875  
Class A Common Stock Subject to Possible Redemption
     300,560,310       (35,731,875     264,828,435  
Class A Common Stock
     175       355       530  
Additional Paid-in Capital
     5,990,848       21,485,093       27,475,941  
Accumulated Deficit
     (991,805     (21,485,448     (22,477,253
Total Stockholders’ Equity
     5,000,009       —         5,000,009  
       
Number of Class A common stock subject to redemption
     29,866,487       (3,550,654     26,315,833  
Statement of Operations for Year ended December 31, 2019 (audited)
                        
Net income (loss)
   $ 350,893     $ (7,560,573   $ (7,209,680
Transaction Costs
     —         (560,698     (560,698
Change in fair value of warrant liabilities
     —         (6,999,875     (6,999,875
Weighted average shares outstanding of Class A redeemable common stock
     29,584,814       (1,455,432     28,129,383  
Basic and diluted net income per share, Class A redeemable common stock
     0.02       —         0.02  
Weighted average shares outstanding of Class A and Class B non-redeemable common stock
     7,591,097       223,299       7,814,396  
Basic and diluted net loss per share, Class A and Class B non-redeemable common stock
     (0.02     (0.96     (0.98
       
Statement of Operations for Three months ended March 31, 2020 (unaudited)
                        
Net loss
   $ 1,048,954     $ 5,393,500     $ 6,442,454  
Change in fair value of warrant liabilities
     —         5,393,500       5,393,500  
Weighted average shares outstanding of Class A redeemable common stock
     30,120,192       (2,177,278     27,965,424  
Basic and diluted net income per share, Class A redeemable common stock
     0.00       —         0.00  
Weighted average shares outstanding of Class A and Class B non-redeemable common stock
     9,388,548       2,177,278       11,565,826  
Basic and diluted net income (loss) per share, Class A and Class B non-redeemable common stock
     (0.02     0.48       0.46  
       
Statement of Operations for Three months ended June 30, 2020 (unaudited)
                        
Net loss
   $ (114,443   $ (9,014,125   $ (9,128,568
Change in fair value of warrant liabilities
     —         (9,014,125     (9,014,125
       
Weighted average shares outstanding of Class A redeemable common stock
  
 
30,119,559
 
 
 
(1,631,880
 
 
28,488,312
 
Basic and diluted net income per share, Class A redeemable common stock
     0.00       —         0.00  
Weighted average shares outstanding of Class A and Class B non-redeemable common stock
     9,411,058       1,631,880       11,042,938  
Basic and diluted net loss per share, Class A and Class B non-redeemable common stock
     (0.02     (0.81     (0
.
83
       
Statement of Operations for Six months ended June 30, 2020 (unaudited)
                        
Net loss
   $ 934,511     $ (3,620,625   $ (2,686,114
Change in fair value of warrant liabilities
     —         (3,620,625     (3,620,625
Weighted average shares outstanding of Class A redeemable common stock
    
30,131,447

      (1,904,579     28,226,868  
Basic and diluted net income per share, Class A redeemable common stock
     0.00       —         0.00  
Weighted average shares outstanding of Class A and Class B non-redeemable common stock
     9,399,803       1,904,579       11,304,382  
Basic and diluted net loss per share, Class A and Class B non-redeemable common stock
     (0.03     (0.31     (0.34
       
Statement of Operations for Three months ended September 30, 2020 (unaudited)
                        
Net loss
   $ (1,868,373   $ (8,614,625   $ (10,482,998
Change in fair value of warrant liabilities
     —         (8,614,625     (8,614,625
Weighted average shares outstanding of Class A redeemable common stock
     29,908,965       (2,528,994     27,590,565  
Basic and diluted net income per share, Class A redeemable common stock
     0.00       —         0.00  
Weighted average shares outstanding of Class A and Class B non-redeemable common stock
     9,411,691       2,528,994       11,940,685  
Basic and diluted net loss per share, Class A and Class B non-redeemable common stock
     (0.21     (0.67     (0.88
       
Statement of Operations for Nine months ended September 30, 2020 (unaudited)
                        
Net loss
   $ (933,862   $ (12,235,250   $ (13,169,112
Change in fair value of warrant liabilities
     —         (12,235,250     (12,235,250
Weighted average shares outstanding of Class A redeemable common stock
     30,127,455       (2,114,237     28,013,219  
Basic and diluted net income per share, Class A redeemable common stock
     0.00       —         0.00  
Weighted average shares outstanding of Class A and Class B non-redeemable common stock
     9,403,795       2,114,237       11,518,031  
Basic and diluted net loss per share, Class A and Class B non-redeemable common stock
     (0.25     (1.00     (1.25
       
Statement of Operations for Year ended December 31, 2020 (audited)
                        
Net loss
   $ (1,340,521   $ (13,924,875   $ (15,265,396
Change in fair value of warrant liabilities
     —         (13,924,875     (13,924,875
Weighted average shares outstanding of Class A redeemable common stock
     22,578,037       5,061,339       27,639,376  
Basic and diluted net income per share, Class A redeemable common stock
     0.06       (0.01     0.05  
Weighted average shares outstanding of Class A and Class B non-redeemable common stock
     9,458,716       2,433,158       11,891,874  
Basic and diluted net loss per share, Class A and Class B non-redeemable common stock
     (0.29     (1.10     (1.39
       
Statements of Cash Flows for Year ended December 31, 2019 (audited)
                        
Net loss
   $ 350,893     $ (7,560,573   $ (7,209,680
Transaction costs allocable to warrant liabilities
     —         560,698       560,698  
Change in fair value of warrant liabilities
     —         6,999,875       6,999,875  
       
Statements of Cash Flows for Period ended March 31, 2020 (audited)
                        
Net loss
   $ 1,048,954     $ 5,393,500     $ 6,442,454  
Change in fair value of warrant liabilities
     —         (5,393,500     (5,393,500
       
Statements of Cash Flows for six months ended June 30, 2020 (audited)
                        
Net loss
   $ 934,511     $ (3,620,625   $ (2,686,114
Change in fair value of warrant liabilities
     —         3,620,625       3,620,625  
Statements of Cash Flows for nine months ended September 30, 2020 (audited)
                        
Net loss
   $ (933,862   $ (12,235,250   $ (13,169,112
Change in fair value of warrant liabilities
     —         12,235,250       12,235,250  
Statements of Cash Flows for Year ended December 31, 2020 (audited)
                        
Net loss
   $ (1,340,521   $ (13,924,875   $ (15,265,396
Change in fair value of warrant liabilities
     —         13,924,875       13,924,875