Registration of securities issued in business combination transactions

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

v3.21.1
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
6 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

In May, the Audit Committee of the Company, in consultation with management, concluded that, because of a    misapplication of the accounting guidance related to its public and private placement warrants to purchase Class A ordinary shares that the Company issued in August 2020 (the “Warrants”), the Company’s previously issued financial statements for the Affected Periods should no longer be relied upon.  As such, the Company is restating its financial statements for the Affected Periods included in this Annual Report.

On April 12, 2021, the staff of the Securities and Exchange Commission (the “SEC Staff”) issued a public statement entitled “Staff Statement on Accounting and Reporting Considerations for Warrants issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Staff Statement”). In the SEC Staff Statement, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to be classified as liabilities on the SPAC’s balance sheet as opposed to equity. Since issuance on August 20, 2020, the Company’s warrants were accounted for as equity within the Company’s previously reported balance sheets.  After discussion and evaluation, including with the Company’s independent registered public accounting firm and the Company’s audit committee, management concluded that the warrants should be presented as liabilities with subsequent fair value remeasurement.

Historically, the Warrants were reflected as a component of equity as opposed to liabilities on the balance sheets and the statements of operations did not include the subsequent non-cash changes in estimated fair value of the Warrants, based on our application of FASB ASC Topic 815-40, Derivatives and Hedging, Contracts in Entity’s Own Equity (“ASC 815-40). The views expressed in the SEC Staff Statement were not consistent with the Company’s historical interpretation of the specific provisions within its warrant agreement and the Company’s application of ASC 815-40 to the warrant agreement. The Company reassessed its accounting for Warrants issued on August 20, 2020, in light of the SEC Staff’s published views. Based on this reassessment, management determined that the Warrants should be classified as liabilities measured at fair value upon issuance, with subsequent changes in fair value reported in the Company Statement of Operations each reporting period.

Impact of the Restatement

The impact of the restatement on the balance sheets, statements of operations and statements of cash flows for the Affected Periods is presented below. The restatement had no impact on net cash flows from operating, investing or financing activities.

 

 

 

 

 

 

 

 

 

 

 

 

As of  December 31, 2020

 

 

As Previously 

 

Restatement 

 

 

 

 

    

Reported

    

Adjustment

    

As Restated

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

Total assets

 

$

216,310,399

 

$

 —

 

$

216,310,399

Liabilities and shareholders’ equity

 

 

  

 

 

  

 

 

  

Total current liabilities

 

$

140,207

 

$

 —

 

$

140,207

Deferred legal fees

 

 

 —

 

 

 —

 

 

  

Deferred underwriting commissions

 

 

7,525,000

 

 

 —

 

 

7,525,000

Derivative warrant liabilities

 

 

 —

 

 

17,902,500

 

 

17,902,500

Total liabilities

 

 

7,665,207

 

 

17,902,500

 

 

25,567,707

Class A ordinary shares, $0.0001 par value; shares subject to possible redemption

 

 

203,645,190

 

 

(17,902,500)

 

 

185,742,690

Shareholders’ equity

 

 

  

 

 

  

 

 

  

Preference shares - $0.0001 par value

 

 

 —

 

 

 —

 

 

 —

Class A ordinary shares - $0.0001 par value

 

 

114

 

 

179

 

 

293

Class B ordinary shares - $0.0001 par value

 

 

538

 

 

 —

 

 

538

Additional paid-in-capital

 

 

5,303,949

 

 

2,306,781

 

 

7,610,730

Accumulated deficit

 

 

(304,599)

 

 

(2,306,960)

 

 

(2,611,559)

Total shareholders’ equity

 

 

5,000,002

 

 

 —

 

 

5,000,002

Total liabilities and shareholders’ equity

 

$

216,310,399

 

$

 —

 

$

216,310,399

 

 

 

 

 

 

 

 

 

 

 

 

 

Period From June 24, 2020 (Inception) Through December 31, 2020

 

 

As Previously 

 

Restatement 

 

 

 

 

 

Reported

 

Adjustment

 

As Restated

 

 

 

 

 

 

 

 

 

 

Statement of Operations

 

 

 

 

 

 

 

 

 

Loss from operations

 

$

(380,824)

 

$

 —

 

$

(380,824)

Other (expense) income:

 

 

  

 

 

  

 

 

  

Change in fair value of derivative warrant liabilities

 

 

 —

 

 

(1,705,000)

 

 

(1,705,000)

Offering costs associated with derivative warrant liabilities

 

 

 —

 

 

(601,960)

 

 

(601,960)

Net gain from investments held in Trust Account

 

 

76,225

 

 

 —

 

 

76,225

Total other (expense) income

 

 

76,225

 

 

(2,306,960)

 

 

(2,230,735)

Net loss

 

$

(304,599)

 

$

(2,306,960)

 

$

(2,611,559)

 

 

 

 

 

 

 

 

 

 

Basic and Diluted weighted-average Class A ordinary shares outstanding

 

 

21,500,000

 

 

 —

 

 

21,500,000

Basic and Diluted net loss per Class A share

 

$

0.00

 

 

 —

 

$

0.00

Basic and Diluted weighted-average Class B ordinary shares outstanding

 

 

5,265,873

 

 

 —

 

 

5,265,873

Basic and Diluted net loss per Class B share

 

$

(0.07)

 

 

 —

 

$

(0.51)

 

 

 

 

 

 

 

 

 

 

 

 

 

Period From June 24, 2020 (Inception) Through December 31, 2020

 

 

As Previously 

 

Restatement 

 

 

 

 

    

Reported

    

Adjustment

    

As Restated

 

 

 

 

 

 

 

 

 

 

Statement of Cash Flows

 

 

 

 

 

 

 

 

 

Net loss

 

$

(304,599)

 

$

(2,306,960)

 

$

(2,611,559)

Change in fair value of derivative warrant liabilities

 

 

 —

 

 

1,705,000

 

 

1,705,000

Offering costs associated with derivative warrant liabilities      

 

 

 —

 

 

601,960

 

 

601,960

Net cash used in operating activities

 

 

(614,968)

 

 

 —

 

 

(614,968)

Net cash used in investing activities

 

 

(215,000,000)

 

 

 —

 

 

(215,000,000)

Net cash provided by financing activities

 

 

216,534,791

 

 

 —

 

 

216,534,791

Net change in cash

 

$

919,823

 

$

 —

 

$

919,823

 

In addition, the impact to the balance sheet dated August 20, 2020, filed on Form 8-K on August 26, 2020 related to the impact of accounting for the public and private warrants as liabilities at fair value resulted in an $16.2 million increase to the derivative warrant liabilities line item at August 20, 2020 and offsetting decrease to the Class A ordinary shares subject to possible redemption mezzanine equity line item.  There is no change to total shareholders’ equity at the reported balance sheet date.

 

 

 

 

 

 

 

 

 

 

 

 

As of  September 30, 2020

 

 

As Previously 

 

Restatement 

 

 

 

 

    

Reported

    

Adjustment

    

As Restated

 

 

 

 

 

 

 

 

 

 

Balance Sheet

 

 

 

 

 

 

 

 

 

Total assets

 

$

216,445,723

 

$

 —

 

$

216,445,723

Liabilities and shareholders’ equity

 

 

  

 

 

  

 

 

  

Total current liabilities

 

$

161,956

 

$

 —

 

$

161,956

Deferred legal fees

 

 

 —

 

 

  

 

 

  

Deferred underwriting commissions

 

 

7,525,000

 

 

 —

 

 

7,525,000

Derivative warrant liabilities

 

 

 —

 

 

16,197,500

 

 

16,197,500

Total liabilities

 

 

7,686,956

 

 

16,197,500

 

 

23,884,456

Class A ordinary shares, $0.0001 par value; shares subject to possible redemption

 

 

203,758,760

 

 

(16,197,500)

 

 

187,561,260

Shareholders’ equity

 

 

  

 

 

  

 

 

  

Preference shares - $0.0001 par value

 

 

 —

 

 

 —

 

 

 —

Class A ordinary shares - $0.0001 par value

 

 

112

 

 

162

 

 

274

Class B ordinary shares - $0.0001 par value

 

 

538

 

 

 —

 

 

538

Additional paid-in-capital

 

 

5,190,381

 

 

601,798

 

 

5,792,179

Accumulated deficit

 

 

(191,024)

 

 

(601,960)

 

 

(792,984)

Total shareholders’ equity

 

 

5,000,007

 

 

 —

 

 

5,000,007

Total liabilities and shareholders’ equity

 

$

216,445,723

 

$

 —

 

$

216,445,723