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

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

v3.21.2
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 Public Warrants (as defined in Note 4) and Private Placement Warrants (collectively, with the Public Warrants, the “Warrants”) issued in connection with its Initial Public Offering as components of equity instead of as derivative liabilities. In addition, the Company did not account for its convertible promissory note and Prosus Agreement as derivative liabilities (the convertible promissory note, Prosus Agreement, together with the Warrants, the “Derivative Instruments”). 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 Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the Securities and Exchange Commission together issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Warrant Accounting Statement”). Specifically, the SEC Warrant Accounting 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 Derivative Instruments.

In further consideration of the SEC Warrant Accounting 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 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 Derivative Instruments as derivative liabilities in its previously issued financial statements. Under this accounting treatment, the Company is required to measure the fair value of the Derivative Instruments 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. See Notes 3, 6, 7, 8, 9, 10 and 11.

The Company’s accounting for the Derivative Instruments as components of equity instead of as derivative liabilities did not have any effect on the Company’s previously reported investments held in the Trust Account, operating expenses, or cash.

The table below summarizes the effects of the restatement on the financial statements for all periods being restated:

 

 

 

 

 

 

 

 

 

 

 

 

    

As

    

    

 

    

    

 

 

 

Previously

 

 

 

 

As

 

 

Reported

 

Adjustments

 

Restated

 

 

 

 

 

 

 

 

 

 

Balance sheet as of July 1, 2019 (audited)

 

 

  

 

 

  

 

 

  

Total Liabilities

 

$

21,509,982

 

$

38,110,000

 

$

59,619,982

Class A Common Stock Subject to Possible Redemption

 

 

666,500,190

 

 

(38,110,000)

 

 

628,390,190

Class A Common Stock

 

 

235

 

 

381

 

 

616

Additional Paid-in Capital

 

 

5,003,043

 

 

1,125,253

 

 

6,128,296

Accumulated Deficit

 

 

(5,000)

 

 

(1,125,634)

 

 

(1,130,634)

Total Stockholders’ Equity

 

 

5,000,003

 

 

 —

 

 

5,000,003

 

 

 

 

 

 

 

 

 

 

Number of Class A common stock subject to redemption

 

 

66,650,019

 

 

(3,811,000)

 

 

62,839,019

 

 

 

 

 

 

 

 

 

 

Balance sheet as of September 30, 2019 (unaudited)

 

 

  

 

 

  

 

 

  

Total Liabilities

 

$

21,438,614

 

$

55,988,000

 

$

77,426,614

Class A Common Stock Subject to Possible Redemption

 

 

669,011,539

 

 

(55,988,000)

 

 

613,023,539

Class A Common Stock

 

 

233

 

 

558

 

 

791

Additional Paid-in Capital

 

 

2,491,696

 

 

19,003,076

 

 

21,494,772

Retained Earnings (Accumulated Deficit)

 

 

2,506,354

 

 

(19,003,634)

 

 

(16,497,280)

Total Stockholders’ Equity

 

 

5,000,008

 

 

 —

 

 

5,000,008

 

 

 

 

 

 

 

 

 

 

Number of Class A common stock subject to redemption

 

 

66,673,530

 

 

(5,579,751)

 

 

61,093,779

 

 

 

 

 

 

 

 

 

 

Balance sheet as of December 31, 2019 (audited)

 

 

  

 

 

  

 

 

  

Total Liabilities

 

$

21,638,123

 

$

56,360,000

 

$

77,998,123

Class A Common Stock Subject to Possible Redemption

 

 

671,198,229

 

 

(56,360,000)

 

 

614,838,229

Class A Common Stock

 

 

238

 

 

559

 

 

797

Additional Paid-in Capital

 

 

305,001

 

 

19,375,075

 

 

19,680,076

Retained Earnings (Accumulated Deficit)

 

 

4,693,042

 

 

(19,375,634)

 

 

(14,682,592)

Total Stockholders’ Equity

 

 

5,000,006

 

 

 —

 

 

5,000,006

 

 

 

 

 

 

 

 

 

 

Number of Class A common stock subject to redemption

 

 

66,619,951

 

 

(5,594,026)

 

 

61,025,925

 

 

 

 

 

 

 

 

 

 

Balance sheet as of March 31, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Total Liabilities

 

$

21,805,994

 

$

66,706,000

 

$

88,511,994

Class A Common Stock Subject to Possible Redemption

 

 

672,720,712

 

 

(66,706,000)

 

 

606,014,712

Class A Common Stock

 

 

240

 

 

660

 

 

900

Additional Paid-in Capital

 

 

 —

 

 

28,503,490

 

 

28,503,490

Retained Earnings (Accumulated Deficit)

 

 

4,998,044

 

 

(28,504,150)

 

 

(23,506,106)

Total Stockholders’ Equity

 

 

5,000,009

 

 

 —

 

 

5,000,009

 

 

 

 

 

 

 

 

 

 

Number of Class A common stock subject to redemption

 

 

66,602,417

 

 

(6,604,198)

 

 

59,998,219

 

 

 

 

 

 

 

 

 

 

Balance sheet as of June 30, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Total Liabilities

 

$

21,739,976

 

$

111,342,000

 

$

133,081,976

Class A Common Stock Subject to Possible Redemption

 

 

672,594,363

 

 

(111,342,000)

 

 

561,252,363

Class A Common Stock

 

 

242

 

 

1,102

 

 

1,344

Additional Paid-in Capital

 

 

126,347

 

 

73,139,048

 

 

73,265,395

Retained Earnings (Accumulated Deficit)

 

 

4,871,691

 

 

(73,140,150)

 

 

(68,268,459)

Total Stockholders’ Equity

 

 

5,000,005

 

 

 —

 

 

5,000,005

 

 

 

 

 

 

 

 

 

 

Number of Class A common stock subject to redemption

 

 

66,584,915

 

 

(11,022,539)

 

 

55,562,376

 

 

 

 

 

 

 

 

 

 

Balance sheet as of September 30, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Total Liabilities

 

$

21,689,446

 

$

83,004,000

 

$

104,693,446

Class A Common Stock Subject to Possible Redemption

 

 

672,501,414

 

 

(83,004,000)

 

 

589,497,414

Class A Common Stock

 

 

244

 

 

821

 

 

1,065

Additional Paid-in Capital

 

 

219,294

 

 

44,801,329

 

 

45,020,623

Retained Earnings (Accumulated Deficit)

 

 

4,778,742

 

 

(44,802,150)

 

 

(40,023,408)

Total Stockholders’ Equity

 

 

5,000,005

 

 

 —

 

 

5,000,005

 

 

 

 

 

 

 

 

 

 

Number of Class A common stock subject to redemption

 

 

66,563,478

 

 

(8,215,648)

 

 

58,347,830

 

 

 

 

 

 

 

 

 

 

 

 

    

As

    

    

 

    

    

 

 

 

Previously

 

 

 

 

As

 

 

Reported

 

Adjustments

 

Restated

 

 

 

 

 

 

 

 

 

 

Balance sheet as of December 31, 2020 (audited)

 

 

  

 

 

  

 

 

  

Total Liabilities

 

$

23,602,761

 

$

129,943,549

 

$

153,546,310

Class A Common Stock Subject to Possible Redemption

 

 

672,322,591

 

 

(129,943,551)

 

 

542,379,040

Class A Common Stock

 

 

242

 

 

1,287

 

 

1,529

Additional Paid-in Capital

 

 

398,119

 

 

91,740,414

 

 

92,138,533

Retained Earnings (Accumulated Deficit)

 

 

4,599,922

 

 

(91,741,699)

 

 

(87,141,777)

Total Stockholders’ Equity

 

 

5,000,008

 

 

 2

 

 

5,000,010

 

 

 

 

 

 

 

 

 

 

Number of Class A common stock subject to redemption

 

 

66,580,981

 

 

(12,868,479)

 

 

53,712,502

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the three months ended September 30, 2019 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

2,507,354

 

$

(19,003,634)

 

$

(16,496,280)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,650,019

 

 

(3,811,000)

 

 

62,839,019

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.04

 

 

 —

 

 

0.04

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

19,549,981

 

 

3,769,576

 

 

23,319,557

Basic and diluted net loss per share, Non-redeemable common stock

 

 

0.00

 

 

(0.81)

 

 

(0.81)

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the period from April 11, 2019 (inception) to September 30, 2019 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

2,506,354

 

$

(19,003,634)

 

$

(16,497,280)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,650,019

 

 

(3,811,000)

 

 

62,839,019

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.04

 

 

 —

 

 

0.04

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

17,433,711

 

 

2,016,285

 

 

19,449,996

Basic and diluted net loss per share, Non-redeemable common stock

 

 

0.00

 

 

(0.98)

 

 

(0.98)

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the period from April 11, 2019 (inception) to December 31, 2019 (audited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

4,693,042

 

$

(19,375,634)

 

$

(14,682,592)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,661,839

 

 

(4,700,208)

 

 

61,961,631

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.07

 

 

0.01

 

 

0.08

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

18,180,430

 

 

3,258,099

 

 

21,438,529

Basic and diluted net loss per share, Non-redeemable common stock

 

 

(0.01)

 

 

(0.90)

 

 

(0.91)

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the three months ended March 31, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

1,522,486

 

$

(10,346,000)

 

$

(8,823,514)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,619,951

 

 

(5,594,026)

 

 

61,025,925

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.02

 

 

 —

 

 

0.02

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

19,630,049

 

 

5,594,026

 

 

25,224,075

Basic and diluted net loss per share, Non-redeemable common stock

 

 

0.00

 

 

(0.41)

 

 

(0.41)

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the three months ended June 30, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Net loss

 

$

(126,353)

 

$

(44,636,000)

 

$

(44,762,353)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,585,251

 

 

(6,587,032)

 

 

59,998,219

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.00

 

 

 —

 

 

0.00

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

19,664,749

 

 

6,587,032

 

 

26,251,781

Basic and diluted net loss per share, Non-redeemable common stock

 

 

(0.01)

 

 

(1.70)

 

 

(1.71)

 

 

 

 

 

 

 

 

 

 

Statement of Operations for the six months ended June 30, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

1,396,133

 

$

(54,982,000)

 

$

(53,585,867)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,602,601

 

 

(6,090,529)

 

 

60,512,072

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.02

 

 

0.01

 

 

0.03

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

19,647,399

 

 

6,090,529

 

 

25,737,928

Basic and diluted net loss per share, Non-redeemable common stock

 

 

(0.01)

 

 

(2.13)

 

 

(2.14)

Statement of Operations for the three months ended September 30, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

(92,949)

 

$

28,338,000

 

$

28,245,051

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,563,636

 

 

(11,001,260)

 

 

55,562,376

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.00

 

 

 —

 

 

0.00

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

19,686,364

 

 

11,001,260

 

 

30,687,624

Basic and diluted net loss per share, Non-redeemable common stock

 

 

0.00

 

 

0.92

 

 

0.92

Statement of Operations for the nine months ended September 30, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

1,303,184

 

$

(26,644,000)

 

$

(25,340,816)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,589,518

 

 

(7,739,388)

 

 

58,850,130

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.02

 

 

0.01

 

 

0.03

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

19,660,482

 

 

7,739,388

 

 

27,399,870

Basic and diluted net loss per share, Non-redeemable common stock

 

 

(0.02)

 

 

(0.96)

 

 

(0.98)

Statement of Operations for the year ended December 31, 2020 (audited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

1,124,364

 

$

(73,583,549)

 

$

(72,459,185)

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption

 

 

66,592,589

 

 

(7,868,720)

 

 

58,723,869

Basic and diluted net income per share, Class A common stock subject to possible redemption

 

 

0.02

 

 

0.01

 

 

0.03

Basic and diluted weighted average shares outstanding, Non-redeemable common stock

 

 

19,657,411

 

 

7,868,720

 

 

27,526,131

Basic and diluted net loss per share, Non-redeemable common stock

 

 

(0.02)

 

 

(2.67)

 

 

(2.68)

 

 

 

 

 

 

 

 

 

 

 

 

 

As

 

 

 

 

 

 

 

 

Previously

 

 

 

 

As

 

 

Reported

 

Adjustments

 

Restated

Statement of Cash Flows for the period from April 11, 2019 (inception) to September 30, 2019 (unaudited)

    

  

 

    

  

 

    

  

 

Net income (loss)

 

$

2,506,354

 

$

(19,003,634)

 

$

(16,497,280)

Transaction costs attributable to the Initial Public Offering

 

 

 —

 

 

(1,125,634)

 

 

(1,125,634)

Loss on Derivative Liabilities

 

 

 —

 

 

(17,878,000)

 

 

(17,878,000)

Initial classification of Class A common stock subject to redemption

 

 

666,500,190

 

 

(38,110,000)

 

 

628,390,190

Change in value of Class A common stock subject to possible redemption

 

 

2,511,349

 

 

(17,878,000)

 

 

(15,366,651)

Statement of Cash Flows for the period from April 11, 2019 (inception) to December 31, 2019 (audited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

4,693,042

 

$

(19,375,634)

 

$

(14,682,592)

Transaction costs attributable to the Initial Public Offering

 

 

 —

 

 

(1,125,634)

 

 

(1,125,634)

Loss on Derivative Liabilities

 

 

 —

 

 

(18,250,000)

 

 

(18,250,000)

Initial classification of Class A common stock subject to redemption

 

 

666,500,190

 

 

(38,110,000)

 

 

628,390,190

Change in value of Class A common stock subject to possible redemption

 

 

4,698,039

 

 

(18,250,000)

 

 

(13,551,961)

Statement of Cash Flows for the three months ended March 31, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

1,522,486

 

$

(10,346,000)

 

$

(8,823,514)

Loss on Derivative Liabilities

 

 

 —

 

 

(10,346,000)

 

 

(10,346,000)

Change in value of Class A common stock subject to possible redemption

 

 

1,522,483

 

 

(10,346,000)

 

 

(8,823,517)

Statement of Cash Flows for the six months ended June 30, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

1,396,133

 

$

(54,982,000)

 

$

(53,585,867)

Loss on Derivative Liabilities

 

 

 —

 

 

(54,982,000)

 

 

(54,982,000)

Change in value of Class A common stock subject to possible redemption

 

 

1,396,134

 

 

(54,982,000)

 

 

(53,585,866)

Statement of Cash Flows for the nine months ended September 30, 2020 (unaudited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

1,303,184

 

$

(26,644,000)

 

$

(25,340,816)

Loss on Derivative Liabilities

 

 

 —

 

 

(26,644,000)

 

 

(26,644,000)

Change in value of Class A common stock subject to possible redemption

 

 

1,303,185

 

 

(26,644,000)

 

 

(25,340,815)

Statement of Cash Flows for the year ended December 31, 2020 (audited)

 

 

  

 

 

  

 

 

  

Net income (loss)

 

$

1,124,364

 

$

(73,583,549)

 

$

(72,459,185)

Loss on Derivative Liabilities

 

 

 —

 

 

(73,583,549)

 

 

(73,583,549)

Change in value of Class A common stock subject to possible redemption

 

 

1,124,362

 

 

(73,583,551)

 

 

(72,459,189)