RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2 — RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS On April 12, 2021, the Staff 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”). Specifically, the SEC 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 warrant agreement, dated as of September 8, 2020, between the Company and Continental Stock Transfer & Trust Company, a New York corporation, as warrant agent (the “Warrant Agreement”). As a result of the SEC Statement, the Company reevaluated the accounting treatment of (i) the 7,623,600 Public Warrants, (ii) the 3,105,900 Private Warrants, and (iii) the 209,476 Underwriter Warrants (See Note 4, Note 5, and Note 8). The Company previously accounted for all Warrants as components of equity. In further consideration of the guidance in Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging; Contracts in Entity’s Own Equity, the Company concluded that a provision in the Warrant Agreement related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants should be recorded as derivative liabilities on the Balance Sheet and measured at fair value at inception (on the date of the IPO) and at each reporting date in accordance with ASC 820, Fair Value Measurement, with changes in fair value recognized in the Statement of Operations in the period of change. The Company’s management and the audit committee of the Company’s Board of Directors concluded that it is appropriate to restate the Company’s previously issued audited balance sheet as of September 11, 2020 as previously reported in its Form 8-K, the Company’s previously issued unaudited financial statements as of September 30, 2020 and for the period from June 2, 2020 (inception) through September 30, 2020, as previously reported in its Form 10-Q, and the audited financial statements as of December 31, 2020 and for the period from June 2, 2020 (inception) through December 31, 2020, as previously reported in its Form 10-K. The restated classification and reported values of the Warrants as accounted for under ASC 815-40 are included in the financial statements herein. The following tables summarize the effect of the restatement on each financial statement line item as of the dates, and for the period, indicated: As Previously Adjustment As Restated Balance Sheet at September 11, 2020 Warrant Liability $ - $ 12,679,255 $ 12,679,255 Class A common stock subject to possible redemption 68,828,860 (12,679,255 ) 56,149,605 Class A common stock 84 125 209 Additional paid-in capital 5,001,512 1,418,954 6,420,466 Accumulated deficit $ (1,810 ) $ (1,419,079 ) $ (1,420,889 ) Balance Sheet at September 30, 2020 Warrant Liability $ - $ 12,679,255 $ 12,679,255 Class A common stock subject to possible redemption, 68,778,192 (12,679,255 ) 56,098,937 Class A common stock 84 126 210 Additional paid-in capital 5,052,180 1,418,953 6,471,133 Accumulated deficit $ (52,476 ) $ (1,419,079 ) $ (1,471,555 ) Statement of Operations for the period from June 2, 2020 (inception) through September 30, 2020 Other expense relating to fair value exceeding amount paid for warrants $ - $ (930,191 ) $ (930,191 ) Warrant issuance costs - (488,888 ) (488,888 ) Net loss $ (52,476 ) $ (1,419,079 ) $ (1,471,555 ) Weighted average shares outstanding, basic and diluted 2,007,250 198,767 2,206,017 Basic and diluted net loss per common stock $ (0.03 ) (0.64 ) (0.67 ) Statement of Operations for the three months ended September 30, 2020 Other expense relating to fair value exceeding amount paid for warrants $ - $ (930,191 ) $ (930,191 ) Warrant issuance costs - (488,888 ) (488,888 ) Net loss $ (50,660 ) $ (1,419,079 ) $ (1,469,739 ) Weighted average shares outstanding, basic and diluted 2,047,500 259,261 2,306,761 Basic and diluted net loss per common stock $ (0.03 ) (0.61 ) (0.64 ) Statement of Cash Flows for the period from June 2, 2020 (inception) through September 30, 2020 Cash Flows from Operating Activities: Net loss $ (52,476 ) $ (1,419,079 ) $ (1,471,555 ) Warrant issuance costs - 488,888 488,888 Other expense relating to fair value exceeding amount paid for warrants $ - $ 930,191 $ 930,191 Balance Sheet at December 31, 2020 Warrant Liability $ - $ 13,391,430 $ 13,391,430 Class A common stock subject to possible redemption, 69,738,123 (13,391,430 ) 56,346,693 Class A common stock 87 133 220 Additional paid-in capital 5,297,371 1,958,876 7,256,247 Accumulated deficit $ (297,645 ) $ (1,959,009 ) $ (2,256,654 ) Statement of Operations for the period from June 2, 2020 (inception) through December 31, 2020 Other expense relating to fair value exceeding amount paid for warrants $ - $ (938,413 ) $ (938,413 ) Unrealized loss on change in fair value of warrants - (523,924 ) (523,924 ) Warrant issuance costs - (496,672 ) (496,672 ) Net loss $ (297,645 ) $ (1,959,009 ) $ (2,256,654 ) Weighted average shares outstanding, basic and diluted 2,389,749 657,294 3,047,043 Basic and diluted net loss per common stock $ (0.13 ) (0.61 ) (0.74 ) Statement of Cash Flows for the period from June 2, 2020 (inception) through December 31, 2020 Cash Flows from Operating Activities: Net loss $ (297,645 ) $ (1,959,009 ) $ (2,256,654 ) Unrealized loss on change in fair value of warrants - 523,924 523,924 Warrant issuance costs - 496,672 496,672 Other expense relating to fair value exceeding amount paid for warrants $ - $ 938,413 $ 938,413 |