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Correction of an Immaterial Error
3 Months Ended
Mar. 31, 2021
Accounting Changes And Error Corrections [Abstract]  
Correction of an immaterial error

Note 2 – Correction of an immaterial error

On April 12, 2021, staff of the SEC issued “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)”. The Company evaluated this statement and determined that its private warrants, which had historically been accounted for as a component of equity, should have been recorded as a liability at fair value during each reporting period, with changes in fair value recorded in the Statements of Comprehensive Loss.

 

In accordance with Financial Accounting Standards Board Accounting Standards Codification 250, Accounting Changes and Error Corrections, we evaluated the materiality of the errors from quantitative and qualitative perspectives and concluded that the errors were immaterial to the Company's prior period interim and annual consolidated financial statements. Since these revisions were not material to any prior period interim or annual financial statements, no amendments to previously filed interim or annual periodic reports are required. The Company recognized the cumulative effect of the error on prior periods by recording during the three months ended March 31, 2021, (i) $2.0 million of income in the Statements of Comprehensive Loss to reflect the cumulative decrease in the fair value of the private warrants liabilities, (ii) a warrant liability of $1.8 million and (iii) a decrease in additional paid-in capital of $3.8 million.