RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company previously accounted for outstanding private placement warrants issued in connection with its initial public offering in February 2020 as components of equity rather than as derivative liabilities. In light of the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) issued by the staff of the SEC issued on dated April 12, 2021 (the “SEC Staff Statement”), the Company’s management further evaluated the warrants under Accounting Standards Codification 815-40, 815-40”), Based on management’s evaluation, the Audit Committee, in consultation with management, concluded that the Company’s private placement warrants are not indexed to the Company’s common stock in the manner contemplated by ASC Section 815-40. As The Company’s accounting for the warrants as components of equity instead of as derivative liabilities has no impact on the Company’s current or previously reported cash position, operating expenses or total operating, investing or financing cash flows. The following tables summarize the effect of the restatement on each financial statement line items as of the dates, and for the period, indicated: As Previously Adjustments As Restated Consolidated Balance Sheet as of February 6, 2020 Warrant liabilities $ — $ 380,175 $ 380,175 Total Liabilities — 380,175 380,175 Common stock subject to redemption 205,894,700 (380,175 ) 205,514,525 Common stock 725 4 729 Additional paid-in 5,000,276 (4 ) 5,000,272 Number of common shares subject to redemption 20,589,470 (38,017 ) 20,551,453 Consolidated Balance Sheet as of December 31, 2020 Warrant liabilities $ — $ 2,419,470 $ 2,419,470 Total Liabilities 1,680,631 2,419,470 4,100,101 Common stock subject to redemption 236,461,872 (2,419,470 ) 234,042,402 Common stock 755 24 779 Additional paid-in 5,933,074 1,996,116 7,929,190 Accumulated deficit (933,821 ) (1,996,140 ) (2,929,961 ) Number of common shares subject to redemption 23,507,001 (240,524 ) 23,266,477 Consolidated Statements of Operations for the year ended December 31, 2020 Change in fair value of warrant liabilities $ — $ (1,996,140 ) $ (1,996,140 ) Other income (expense) 1,789,959 (1,996,140 ) (206,181 ) Loss before income taxes (733,056 ) (1,996,140 ) (2,729,196 ) Net loss (932,821 ) (1,996,140 ) (2,928,961 ) Basic and diluted weighted average shares outstanding, Common stock subject to possible redemption 23,705,712 (86,304 ) 23,619,408 Basic and diluted weighted average shares outstanding, Common stock 7,214,461 77,792 7,292,253 Basic and diluted net loss per share, Common stock (0.32 ) (0.27 ) (0.59 ) Consolidated Statements of Cash Flows for year ended December 31, 2020 Cash Flows from Operating Activities: Net loss $ (932,821 ) $ (1,996,140 ) $ (2,928,961 ) Adjustments to reconcile net loss to net cash used in operating activities: Change in fair value of warrant liabilities — 1,996,140 1,996,140 Non-Cash Initial measurement of private warrants accounted for as liabilities — 423,330 423,330 Initial classification of common stock subject to possible redemption 237,394,700 (423,330 ) 236,971,370 Change in value of common stock subject to possible redemption (932,828 ) (1,996,140 ) (2,928,968 ) Condensed Balance Sheets as of September 30, 2020 (unaudited) Warrant liabilities $ — $ 537,660 $ 537,660 Total Liabilities 202,600 537,660 740,260 Common stock subject to redemption 238,306,654 (537,660 ) 237,768,994 Common stock 736 6 742 Additional paid-in 4,088,311 114,324 4,202,635 Retained earnings 910,963 (114,330 ) 796,633 Number of common shares subject to redemption 23,691,356 (53,452 ) 23,637,904 Condensed Statements of Operations for the nine months ended September 30, 2020 (unaudited) Change in fair value of warrant liabilities $ — $ (114,330 ) $ (114,330 ) Other income, net 1,782,663 (114,330 ) 1,668,333 Income before income taxes 1,154,383 (114,330 ) 1,040,053 Net income 911,963 (114,330 ) 797,633 Weighted average shares outstanding, basic and diluted 7,164,018 84,676 7,248,694 Basic and diluted net loss per common share (0.07 ) (0.01 ) (0.08 ) Condensed Statements of Operations for three months ended September 30, 2020 (unaudited) Change in fair value of warrant liabilities $ — $ (49,440 ) $ (49,440 ) Other income, net 40,515 (49,440 ) (8,925 ) Loss before income taxes (136,686 ) (49,440 ) (186,126 ) Net loss (107,982 ) (49,440 ) (157,422 ) Weighted average shares outstanding, basic and diluted 7,537,344 (131,428 ) 7,405,916 Condensed Statements of Cash Flows for the nine months ended September 30, 2020 (unaudited) Cash Flows from Operating Activities: Net income $ 911,963 $ (114,330 ) $ 797,633 Adjustments to reconcile net income to net cash used in operating activities: Change in fair value of warrant liabilities — 114,330 114,330 Non-Cash Initial measurement of private warrants accounted for as liabilities — 423,330 423,330 Initial classification of common stock subject to possible redemption 237,394,700 (423,330 ) 236,971,370 Change in value of common stock subject to possible redemption 911,954 (114,330 ) 797,624 Condensed Balance Sheets as of June 30, 2020 (unaudited) Warrant liabilities $ — $ 488,220 $ 488,220 Total Liabilities 479,807 488,220 968,027 Common stock subject to redemption 238,414,641 (488,220 ) 237,926,421 Common stock 736 5 741 Additional paid-in 3,980,324 64,885 4,045,209 Retained earnings 1,018,945 (64,890 ) 954,055 Number of common shares subject to redemption 23,698,156 (48,529 ) 23,649,627 Condensed Statements of Operations for the six months ended June 30, 2020 (unaudited) Change in fair value of warrant liabilities $ — $ (64,890 ) $ (64,890 ) Other income 1,742,148 (64,890 ) 1,677,258 Income before provision for income taxes 1,291,069 (64,890 ) 1,226,179 Net income 1,019,945 (64,890 ) 955,055 Weighted average shares outstanding, basic and diluted 7,065,753 103,077 7,168,830 Basic and diluted net loss per common share (0.05 ) (0.01 ) (0.06 ) Condensed Statements of Operations for the three months ended June 30, 2020 (unaudited) Change in fair value of warrant liabilities $ — $ (71,070 ) $ (71,070 ) Other income 52,277 (71,070 ) (18,793 ) Loss before provision for income taxes (260,048 ) (71,070 ) (331,118 ) Net loss (205,437 ) (71,070 ) (276,507 ) Weighted average shares outstanding, basic and diluted 7,347,667 41,538 7,389,205 Basic and diluted net loss per common share (0.04 ) (0.01 ) (0.05 ) Condensed Statements of Cash Flows for the six months ended June 30, 2020 (unaudited) Cash Flows from Operating Activities: Net income $ 1,019,945 $ (64,890 ) $ 955,055 Adjustments to reconcile net income to net cash used in operating activities: Change in fair value of warrant liabilities — 64,890 64,890 Non-Cash Initial measurement of private warrants accounted for as liabilities — 423,330 423,330 Initial classification of common stock subject to possible redemption 237,394,700 (423,330 ) 236,971,370 Change in value of common stock subject to possible redemption (1,019,941 ) 1,974,992 955,051 Condensed Balance Sheets as of March 31, 2020 (unaudited) Warrant liabilities $ — $ 417,150 $ 417,150 Total Liabilities 391,453 417,150 808,603 Common stock subject to redemption 238,620,078 (417,150 ) 238,202,928 Common stock 735 4 739 Additional paid-in 3,774,888 (6,184 ) 3,768,704 Retained earnings 1,224,382 6,180 1,230,562 Number of common shares subject to redemption 23,707,833 (41,445 ) 23,666,388 Condensed Statements of Operations for the three months ended March 31, 2020 (unaudited) Change in fair value of warrant liabilities $ — $ 6,180 $ 6,180 Other income 1,689,871 6,180 1,696,051 Income before provision for income taxes 1,551,117 6,180 1,557,297 Net income 1,225,382 6,180 1,231,562 Weighted average shares outstanding, basic and diluted 6,780,707 165,550 6,946,257 Condensed Statements of Cash Flows for the three months ended March 31, 2020 (unaudited) Cash Flows from Operating Activities: Net income $ 1,225,382 $ 6,180 $ 1,231,562 Adjustments to reconcile net income to net cash used in operating activities: Change in fair value of warrant liabilities — (6,180 ) (6,180 ) Non-Cash Initial measurement of private warrants accounted for as liabilities — 423,330 423,330 Initial classification of common stock subject to possible redemption 237,394,700 (423,330 ) 236,971,370 Change in value of common stock subject to possible redemption (1,225,378 ) 2,456,936 1,231,558 |