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Restatement of Previously Issued Financial Statements
 12 Months Ended
Dec. 31, 2020
Restatement Of Previously Issued Financial Statements [Abstract]  
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

NOTE 2 — RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS


Amendment 1


The Company previously accounted for its outstanding Private Warrants as components of equity instead of as derivative liabilities. The warrant agreement governing the Private Warrants includes a provision that provides for potential changes to the settlement amounts dependent upon the characteristics of the holder of the warrant.


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 Statement”). The SEC Statement advises, among other things, that certain adjustments generally present in SPAC warrants preclude such warrants from being accounted for as equity, which terms are similar to those contained in the warrant agreement.


In further consideration of the SEC Statement, the Company’s management further evaluated the Private 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 Warrants are not indexed to the Company’s common stock 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.


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 Private 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 cash or investments held in the Trust Account.


The table below summarizes the effects of the restatement on the financial statements for all periods being restated. The restatement did not result in a change to net income or cash flows for the three months ended March 31, 2020 and the three and six months ended June 30, 2020 as there was no change in the fair value of the Warrants.


   As Previously
Reported in Form 10-K		   Adjustments   As Restated in Form 10-K Amendment 1 
Balance sheet as of November 7, 2019 (audited)            
Warrant Liability  $—   $3,037,500   $3,037,500 
Common Stock Subject to Possible Redemption   115,562,660    (3,037,500)   112,525,160 
Common Stock   401    31    432 
Additional Paid-in Capital   5,000,221    19,915    5,020,136 
Accumulated Deficit   (621)   (19,946)   (20,567)
                
Balance sheet as of December 31, 2019 (audited)               
Warrant Liability  $—   $1,975,155   $1,975,155 
Common Stock Subject to Possible Redemption   125,680,303    (1,975,155)   123,705,148 
Common Stock   382    20    402 
Additional Paid-in Capital   4,898,117    (1,204,671)   3,693,446 
Retained Earnings   101,502    1,204,651    1,306,153 
                
Balance sheet as of March 31, 2020               
Warrant Liability  $—   $1,975,155   $1,975,155 
Common Stock Subject to Possible Redemption   126,056,624    (1,975,155)   124,081,469 
Common Stock   382    20    402 
Additional Paid-in Capital   4,521,796    (1,204,671)   3,317,125 
Retained Earnings   477,832    1,204,651    1,682,483 
                
Balance sheet as of June 30, 2020               
Warrant Liability  $—   $1,975,155   $1,975,155 
Common Stock Subject to Possible Redemption   125,957,664    (1,975,155)   123,982,509 
Common Stock   383    20    403 
Additional Paid-in Capital   4,620,755    (1,204,671)   3,416,084 
Retained Earnings   378,866    1,204,651    1,583,517 
                
Balance sheet as of September 30, 2020               
Warrant Liability  $—   $2,172,671   $2,172,671 
Common Stock Subject to Possible Redemption   125,871,358    (2,172,671)   123,698,687 
Common Stock   383    22    405 
Additional Paid-in Capital   4,707,061    (1,007,157)   3,699,904 
Retained Earnings   292,558    1,007,135    1,299,693 
                
Balance sheet as of December 31, 2020 (audited)               
Warrant Liability  $—   $3,950,311   $3,950,311 
Common Stock Subject to Possible Redemption   125,781,370    (3,950,311)   121,831,059 
Common Stock   384    40    424 
Additional Paid-in Capital   4,797,048    770,465    5,567,513 
Retained Earnings (Accumulated Deficit)   202,578    (770,505)   (567,927)
                
Statement of Operations for the Period from June 20, 2019 (inception) Through December 31, 2019 (audited)               
Change in fair value of warrant liability  $—   $1,224,597   $1,224,597 
Transaction costs allocable to warrant liability   —    (19,946)   (19,946)
Net income   101,502    1,204,651    1,306,153 
Weighted average shares outstanding, Common Stock subject to possible redemption   12,446,534    (318,172)   12,128,362 
Basic and diluted net income per share, Common Stock subject to possible redemption   0.01    —    0.01 
Weighted average shares outstanding, Common Stock   3,305,465    88,564    3,394,029 
Basic and diluted net loss per share, Common Stock   0.03    0.30    0.33 
                
Statement of Operations for the Three Months Ended March 31, 2020 (unaudited)               
Weighted average shares outstanding, Common Stock subject to possible redemption   12,550,477    (197,240)   12,353,237 
Basic and diluted net income per share, Common Stock subject to possible redemption   0.04    —    0.04 
Weighted average shares outstanding, Common Stock   3,821,463    197,240    4,018,703 
Basic and diluted net loss per share, Common Stock   (0.04)   —    (0.04)

  

As Previously

Reported in Form 10-K

   Adjustments  

As Restated in
Form 10-K Amendment 1

 
Statement of Operations for the Six Months Ended June 30, 2020 (unaudited)            
Weighted average shares outstanding, Common Stock subject to possible redemption   12,553,036    (196,999)   12,356,037 
Basic and diluted net income per share, Common Stock subject to possible redemption   0.04    —    0.04 
Weighted average shares outstanding, Common Stock   3,818,918    196,986    4,015,904 
Basic and diluted net loss per share, Common Stock   (0.07)   0.01    (0.06)
                
Statement of Operations for the Nine Months Ended September 30, 2020 (unaudited)               
Change in fair value of warrant liability  $—   $(197,516)  $197,516 
Net income (loss)   191,056    (197,516)   (6,460)
Weighted average shares outstanding, Common Stock subject to possible redemption   12,550,512    (196,900)   12,353,612 
Basic and diluted net income per share, Common Stock subject to possible redemption   0.05    —    0.05 
Weighted average shares outstanding, Common Stock   3,821,429    196,899    4,018,328 
Basic and diluted net loss per share, Common Stock   (0.10)   (0.04)   (0.14)
                
Statement of Operations for the Year Ended December 31, 2020 (audited)               
Change in fair value of warrant liability  $—   $(1,975,156)  $(1,975,156)
Net income (loss)   101,076    (1,975,156)   (1,874,080)
Weighted average shares outstanding, Common Stock subject to possible redemption   12,547,286    (201,796)   12,345,490 
Basic and diluted net income per share, Common Stock subject to possible redemption   0.05    —    0.05 
Weighted average shares outstanding, Common Stock   3,824,645    201,805    4,026,450 
Basic and diluted net loss per share, Common Stock   (0.12)   (0.48)   (0.60)
                
Cash Flow Statement for the Year Ended December 31, 2019 (audited)               
Net income  $101,502   $1,204,651   $1,306,153 
Change in fair value of warrant liability   —    (1,224,597)   (1,224,597)
Transaction costs associated with Initial Public Offering   —    19,946    19,946 
Initial classification of Common Stock subject to possible redemption   125,578,180    (3,199,752)   122,378,428 
Change in value of Common Stock subject to possible redemption   102,123    1,224,597    1,326,720 
                
Cash Flow Statement for the Nine Months Ended September 30, 2020 (unaudited)               
Net income (loss)  $191,056   $(197,516)  $(6,460)
Change in fair value of warrant liability   —    197,516    197,516 
Change in value of Common Stock subject to possible redemption   191,055    (197,516)   (6,461)
                
Cash Flow Statement for the Year Ended December 31, 2020 (audited)               
Net income (loss)  $101,076   $(1,975,156)  $(1,874,080)
Change in fair value of warrant liability   —    1,975,156    1,975,156 
Change in value of Common Stock subject to possible redemption   101,067    (1,975,156)   (1,874,089)

Amendment 2


In connection with the preparation of the Company’s financial statements as of September 30, 2021 and in accordance with SEC guidance on redeemable equity instruments, ASC 480, paragraph 10-S99, redemption provisions not solely within the control of the Company require common stock subject to possible redemption to be classified as temporary equity, which is outside of stockholder’s equity, management determined it should restate its previously reported financial statements. The Company had previously determined the shares of Common Stock subject to possible redemption to be equal to the redemption value of $10.00 per share of Common Stock while also taking into consideration that a redemption cannot result in net tangible assets being less than $5,000,001. Management has also determined that the shares of Common Stock issued in connection with the Initial Public Offering can be redeemed or become redeemable subject to the occurrence of future events considered outside the Company’s control.


Therefore, management has concluded that the redemption value should include all the shares of Common Stock subject to possible redemption, resulting in the shares of Common Stock subject to possible redemption being equal to their redemption value. In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the changes and has determined that the related impact was material to previously presented financial statements. As a result, management has noted a classification error related to temporary equity and permanent equity. This resulted in an adjustment to the initial carrying value of the shares of Common Stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and the shares of Common Stock.


The restatement does not result in any change in the Company’s total assets, liabilities or operating results.


The impact of the restatement on the Company’s financial statements is reflected in the following table:


Balance Sheet as of November 7, 2019 (audited) 

As

Previously

Reported in Form 10-K Amendment 1

   Adjustment  

As

Restated in Form 10-K Amendment 2

 
Common stock subject to possible redemption  $112,525,160   $7,474,840   $120,000,000 
Common stock  $432   $(75)  $357 
Additional paid-in capital  $5,020,136   $(5,020,136)  $— 
Accumulated deficit  $(20,567)  $(2,454,629)  $(2,475,196)
Total stockholders’ equity (deficit)  $5,000,001   $(7,474,840)  $(2,474,839)
Number of shares subject to redemption   11,252,516    747,484    12,000,000 
                
Balance Sheet as of December 31, 2019 (audited)               
Common stock subject to possible redemption  $123,705,148   $6,492,214   $130,197,362 
Common stock  $402   $(65)  $337 
Additional paid-in capital  $3,693,446   $(3,693,446)  $— 
Accumulated deficit  $1,306,153   $(2,798,703)  $(1,492,550)
Total stockholders’ equity (deficit)  $5,000,001   $(6,492,214)  $(1,492,513)
Number of shares subject to redemption   12,353,237    648,315    13,001,552 
                
Balance Sheet as of March 31, 2020 (unaudited)               
Common stock subject to possible redemption  $124,081,469   $6,452,799   $130,534,268 
Common stock  $402   $(65)  $337 
Additional paid-in capital  $3,317,125   $(3,317,125)  $— 
Accumulated deficit  $1,682,483   $(3,135,609)  $(1,453,126)
Total stockholders’ equity (deficit)  $5,000,010   $(6,452,799)  $(1,452,789)
Number of shares subject to redemption   12,358,836    642,716    13,001,552 
                
Balance Sheet as of June 30, 2020 (unaudited)               
Common stock subject to possible redemption  $123,982,509   $6,553,480   $130,535,989 
Common stock  $403   $(66)  $337 
Additional paid-in capital  $3,416,084   $(3,416,084)  $— 
Accumulated deficit  $1,583,517   $(3,137,330)  $(1,553,813)
Total stockholders’ equity (deficit)  $5,000,004   $(6,553,480)  $(1,553,476)
Number of shares subject to redemption   12,348,817    652,735    13,001,552 
                
Balance Sheet as of September 30, 2020 (unaudited)               
Common stock subject to possible redemption  $123,698,687   $6,829,335   $130,528,022 
Common stock  $405   $(68)  $337 
Additional paid-in capital  $3,699,904   $(3,699,904)  $— 
Accumulated deficit  $1,299,693   $(3,129,363)  $(1,829,670)
Total stockholders’ equity (deficit)  $5,000,002   $(6,829,335)  $(1,829,333)
Number of shares subject to redemption   12,321,300    680,252    13,001,552 
                
Balance Sheet as of December 31, 2020 (audited)               
Common stock subject to possible redemption  $121,831,059   $8,713,900   $130,544,959 
Common stock  $424   $(87)  $337 
Additional paid-in capital  $5,567,513   $(5,567,513)  $— 
Accumulated deficit  $(567,927)  $(3,146,300)  $(3,714,227)
Total stockholders’ equity (deficit)  $5,000,010   $(8,713,900)  $(3,713,890)
Number of shares subject to redemption   12,133,696    867,856    13,001,552 
                
Condensed Statement of Changes in Stockholders’ Equity (Deficit) for the year ended ended December 31, 2019 (audited)               
Sale of 13,001,552 Units, net of underwriting discount and offering expenses  $126,622,527   $(126,622,527)  $— 
Initial value of common stock subject to redemption at IPO  $(123,705,148)  $123,705,148   $— 
Accretion for common stock to redemption amount  $—   $(3,574,835)  $(3,574,835)
                
Condensed Statement of Changes in Stockholders’ Equity (Deficit) for the three months ended March 31, 2020 (unaudited)               
Change in value of common stock subject to redemption  $(376,321)  $376,321   $— 
Accretion for common stock to redemption amount  $—   $(336,906)  $(336,906)
                
Condensed Statement of Changes in Stockholders’ Equity (Deficit) for the three months ended June 30, 2020 (unaudited)               
Change in value of common stock subject to redemption  $98,960   $(98,960)  $— 
Accretion for common stock to redemption amount  $—   $(1,721)  $(1,721)
                
Condensed Statement of Changes in Stockholders’ Equity (Deficit) for the three months ended September 30, 2020 (unaudited)               
Change in value of common stock subject to redemption  $283,822   $(283,822)  $— 
Accretion for common stock to redemption amount  $—   $7,967   $7,967 
                
Condensed Statement of Changes in Stockholders’ Equity (Deficit) for the year ended December 31, 2020 (unaudited)               
Change in value of common stock subject to redemption  $1,867,628   $(1,867,628)  $— 
Accretion for common stock to redemption amount  $—   $(347,597)  $(347,597)
                
Statement of Cash Flows for the Period from June 20, 2019 (inception) to December 31, 2019 (audited)               
Initial classification of Class A common stock subject to possible redemption  $122,378,428   $7,637,092   $130,015,520 
Change in value of Class A common stock subject to possible redemption  $1,326,720   $(1,144,878)  $181,842 
                
Statement of Cash Flows for the three months ended March 31, 2020 (unaudited)               
Change in value of Class A common stock subject to possible redemption  $376,321   $(39,415)  $336,906 
                
Statement of Cash Flows for the six months ended June 30, 2020 (unaudited)               
Change in value of Class A common stock subject to possible redemption  $277,361   $61,266   $338,627 
                
Statement of Cash Flows for the nine months ended September 30, 2020 (unaudited)               
Change in value of Class A common stock subject to possible redemption  $(6,461)  $337,121   $330,660 
                
Statement of Cash Flows for the period ended December 31, 2020 (audited)               
Change in value of Class A common stock subject to possible redemption  $(1,874,089)  $2,221,686   $347,597 

In connection with the change in presentation for the common stock subject to redemption, the Company also restated its income (loss) per common share calculated to allocate net income (loss), with all allocated to common stock. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of common stock share pro rata in the income (loss) of the Company. There is no impact to the reported amounts for total assets, total liabilities, cash flows, or net income (loss). The impact of this restatement on the Company’s financial statements is reflected in the following table:


Statement of Operations for the period from June 20, 2019 (inception) to December 31, 2019 (audited) 

As Previously

Reported in Form 10-K Amendment 1

   Adjustment  

  As Restated in Form 10-K Amendment 2

 
Weighted average shares outstanding, Common Stock subject to possible redemption   12,128,362   $(7,617,397)  $4,510,965 
Basic and diluted net income per share, Common Stock subject to possible redemption  $0.01   $0.16   $0.17 
Weighted average shares outstanding, Common Stock   3,394,029    (246,439)   3,147,590 
Basic and diluted net income per share, Common Stock  $0.33   $(0.16)  $0.17 
                
Statement of Operations for the three months ended March 31, 2020 (unaudited)               
Weighted average shares outstanding, Common Stock subject to possible redemption   12,353,237   $648,315   $13,001,552 
Basic and diluted net income per share, Common Stock subject to possible redemption  $0.04   $(0.02)  $0.02 
Weighted average shares outstanding, Common Stock   4,018,703    (648,315)   3,370,388 
Basic and diluted net income (loss) per share, Common Stock  $(0.04)  $0.06   $0.02 
                
Statement of Operations for the six months ended June 30, 2020 (unaudited)               
Weighted average shares outstanding, Common Stock subject to possible redemption   12,356,037   $645,515   $13,001,552 
Basic and diluted net income per share, Common Stock subject to possible redemption  $0.04   $(0.02)  $0.02 
Weighted average shares outstanding, Common Stock   4,015,904    (645,516)   3,370,388 
Basic and diluted net income (loss) per share, Common Stock  $(0.06)  $0.08   $0.02 
                
Statement of Operations for the nine months ended September 30, 2020 (unaudited)               
Weighted average shares outstanding, Common Stock subject to possible redemption   12,353,612   $647,940   $13,001,552 
Basic and diluted net income (loss) per share, Common Stock subject to possible redemption  $0.05   $(0.05)  $— 
Weighted average shares outstanding, Common Stock   4,018,328    (647,940)   3,370,388 
Basic and diluted net loss per share, Common Stock  $(0.14)  $0.14   $— 
                
Statement of Operations for the year ended December 31, 2020 (audited)               
Weighted average shares outstanding, Common Stock subject to possible redemption   12,345,490   $656,062   $13,001,552 
Basic and diluted net income per share, Common Stock subject to possible redemption  $0.05   $(0.16)  $(0.11)
Weighted average shares outstanding, Common Stock   4,026,450    (656,026)   3,370,388 
Basic and diluted net loss per share, Common Stock  $(0.60)  $0.49   $(0.11)