Annual report pursuant to Section 13 and 15(d)

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

v3.21.1
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
12 Months Ended
Dec. 31, 2020
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

NOTE 8. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

On April 12, 2021, the Staff of the Securities and Exchange Commission 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 errors that caused the Company to conclude that its financial statements should be restated are the result of a misapplication of the guidance on accounting for its issued warrants, which came to light when the SEC issued the SEC Statement. The SEC Statement addresses certain accounting and reporting considerations related to warrants of a kind similar to those issued by the Company at the time of its initial public offering on April 8, 2019. Based on ASC 815-40, Contracts on an Entity’s Own Equity, warrant instruments that do not meet the criteria to be considered indexed to an entity’s own stock shall be initially classified as liabilities at their estimated fair values. In periods subsequent to issuance, changes in the estimated fair value of the derivative instruments should be reported in the Statement of Operations. Refer to Note 6 - Shareholders’ Equity for further detail on the Warrants.

The Company’s management and the audit committee of the Company’s Board of Directors concluded that it is appropriate to restate (i) the Company’s previously issued audited financial statements as of December 31, 2020 and December 31, 2019, as previously reported in its Form 10-K and (ii) quarterly unaudited financial statements for the quarterly periods ended June 30, 2019, September 30, 2019, March 31, 2020, June 30, 2020 and September 30, 2020. The restated classification and reported values of the Warrants as accounted for under ASC 815-40 are included in the financial statements herein.

In addition, management has identified errors made in the historical financial statements related to its shareholders’ equity where, on the date of issuance of the units, Replay improperly allocated the net proceeds among the ordinary shares subject to possible redemption and public warrants. Additionally, due to the redemption features tied to the ordinary shares subject to possible redemption, such shares will be redeemed or become redeemable. As a result, Replay should have remeasured the ordinary shares subject to possible redemption to their redemption amount (i.e., $10.00 per share) immediately as of the end of the first reporting period after the IPO (June 30, 2019) were the redemption date. Management also noted a reclassifications error related to temporary equity and permanent equity.

The following presents the restated financial statements as of December 31, 2020 and 2019, as well as the statements for the three month period ended March 30, 2020, the three and six month periods ended June 30, 2020 and 2019 and the three and nine month periods ended September 30, 2020 and 2019.

The following presents a reconciliation of the Balance Sheets, Statements of Operations, and Statements of Cash Flows from the prior periods as previously reported to the restated amounts as of December 31, 2020 and 2019. The Statements of Shareholders’ Equity for the years ended December 31, 2020 and 2019 have been restated, for the restatement impact to net (loss) income and common stock subject to possible redemption. See the Statement of Operations reconciliation tables below for additional information on the restatement adjustments and impact to net (loss) income.

 

 

     December 31, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

Assets:

       

Current assets:

       

Cash

   $ 849,909    $ —       $ 849,909

Prepaid expenses

     10,833      —         10,833
  

 

 

    

 

 

   

 

 

 

Total current assets

     860,742      —         860,742

Investments held in Trust Account

     293,315,407      —         293,315,407
  

 

 

    

 

 

   

 

 

 

Total assets

     294,176,149      —         294,176,149
  

 

 

    

 

 

   

 

 

 

Liabilities and Shareholders’ Equity:

       

Current liabilities:

       

Accounts payable

     916,939      —         916,939

Accrued expenses

     779,411      —         779,411
  

 

 

    

 

 

   

 

 

 

Total current liabilities

     1,696,350      —         1,696,350

Warrant liability

     —          35,351,250 (a)      35,351,250

Deferred underwriting commissions

     9,187,500      —         9,187,500
  

 

 

    

 

 

   

 

 

 

Total liabilities

     10,883,850      35,351,250       46,235,100
  

 

 

    

 

 

   

 

 

 

Commitments and contingencies

       

Ordinary shares, $0.0001 par value; 28,750,000 shares subject to possible redemption at $10.00 per share at December 31, 2020

     278,292,290      9,207,710 (a)      287,500,000  

Shareholders’ Equity:

       

Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding

     —          —         —    

Ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 7,187,500 shares issued and outstanding (excluding 28,750,000 shares subject to possible redemption) at December 31, 2020

     811      (92 )(a)      719

Additional paid-in capital

     1,906,570      (1,906,570 )(a)      —  

Retained earnings / (Accumulated deficit)

     3,092,628      (42,652,298 )(a)      (39,559,670
  

 

 

    

 

 

   

 

 

 

Total shareholders’ equity

     5,000,009      (44,558,960     (39,558,951
  

 

 

    

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 294,176,149    $ —       $ 294,176,149
  

 

 

    

 

 

   

 

 

 

 

     December 31, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

Assets:

       

Current assets:

       

Cash

   $ 1,589,795    $ —       $ 1,589,795

Prepaid expenses

     62,738      —         62,738
  

 

 

    

 

 

   

 

 

 

Total current assets

     1,652,533      —         1,652,533

Investments held in Trust Account

     292,054,158      —         292,054,158
  

 

 

    

 

 

   

 

 

 

Total assets

     293,706,691      —         293,706,691
  

 

 

    

 

 

   

 

 

 

Liabilities and Shareholders’ Equity:

       

Current liabilities:

       

Accounts payable

     86,595      —         86,595

Accrued expenses

     8,860      —         8,860
  

 

 

    

 

 

   

 

 

 

Total current liabilities

     95,455      —         95,455

Warrant liability

     —          18,817,500 (a)      18,817,500

Deferred underwriting commissions

     9,187,500      —         9,187,500
  

 

 

    

 

 

   

 

 

 

Total liabilities

     9,282,955      18,817,500       28,100,455
  

 

 

    

 

 

   

 

 

 

Commitments and contingencies

       

Ordinary shares, $0.0001 par value; 28,750,000 shares subject to possible redemption at $10.00 per share at December 31, 2019

     279,423,730      8,076,270 (a)      287,500,000  

Shareholders’ Equity:

       

Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding

     —          —         —    

Ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 7,187,500 shares issued and outstanding (excluding 28,750,000 and shares subject to possible redemption) at December 31, 2019

     800      (81 )(a)      719

Additional paid-in capital

     775,141      (775,141 )(a)      —    

Retained earnings / (Accumulated deficit)

     4,224,065      (26,118,548 )(a)      (21,894,483
  

 

 

    

 

 

   

 

 

 

Total shareholders’ equity

     5,000,006      (26,893,770     (21,893,764
  

 

 

    

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 293,706,691    $ —       $ 293,706,691
  

 

 

    

 

 

   

 

 

 

 

     For the year ended December 31, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 2,392,686    $ —       $ 2,392,686
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (2,392,686      —         (2,392,686

Loss on revaluation of warrant liability

     —          (16,533,750 )(a)      (16,533,750

Gain on marketable securities, dividends and interest held in Trust Account

     1,261,249      —         1,261,249
  

 

 

    

 

 

   

 

 

 

Net loss

   $ (1,131,437    $ (16,533,750   $ (17,665,187
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income (loss) per share, Public Shares

   $ 0.04    $ (0.52 )(a)    $ (0.48
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.33    $ (0.20 )(a)    $ (0.53
  

 

 

    

 

 

   

 

 

 
     For the year ended December 31, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 327,399    $ —       $ 327,399
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (327,399      —         (327,399

Issuance costs allocated to Public Warrants

     —          (648,239 )(a)      (648,239

Gain on revaluation of warrant liability

     —          520,000 (a)      520,000  

Gain on marketable securities, dividends and interest held in Trust Account

     4,554,158      —         4,554,158
  

 

 

    

 

 

   

 

 

 

Net income

   $ 4,226,759    $ (128,239   $ 4,098,520
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income per share, Public Shares

   $ 0.16    $ 0.17 (a)    $ 0.33
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.05    $ (0.71 )(a)    $ (0.76 )
  

 

 

    

 

 

   

 

 

 

 

     For the year ended December 31, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

Cash Flows from Operating Activities:

       

Net loss

   $ (1,131,437    $ (16,533,750 )(a)    $ (17,665,187

Adjustments to reconcile net loss to net cash used in operating activities:

 

Gain on marketable securities, dividends and interest held in Trust Account

     (1,261,249      —         (1,261,249

Loss on revaluation of warrant liability

     —          16,533,750 (a)      16,533,750

Changes in operating assets and liabilities:

       

Prepaid expenses

     51,905      —         51,905

Accounts payable

     830,344      —         830,344

Accrued expenses

     770,551      —         770,551
  

 

 

    

 

 

   

 

 

 

Net cash used in operating activities

     (739,886      —         (739,886
  

 

 

    

 

 

   

 

 

 

Net change in cash

     (739,886      —         (739,886

Cash - beginning of year

     1,589,795      —         1,589,795
  

 

 

    

 

 

   

 

 

 

Cash - end of year

   $ 849,909    $ —       $ 849,909
  

 

 

    

 

 

   

 

 

 

Supplemental disclosure of noncash activities:

       

Change in value of ordinary share subject to possible redemption

   $ (1,131,440    $ 1,131,440 (a)    $ —    

 

     For the year ended December 31, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

Cash Flows from Operating Activities:

       

Net income

   $ 4,226,759      $ (128,239 )(a)    $ 4,098,520  

Adjustments to reconcile net income to net cash used in operating activities:

 

Gain on marketable securities, dividends and interest held in Trust Account

     (4,554,158      —         (4,554,158

Gain on revaluation of warrant liability

     —          (520,000 )(a)      (520,000

Changes in operating assets and liabilities:

       

Prepaid expenses

     (62,738      —         (62,738

Accounts payable

     83,995      —         83,995

Accrued expenses

     6,166      —         6,166
  

 

 

    

 

 

   

 

 

 

Net cash used in operating activities

     (299,976      (648,239     (948,215
  

 

 

    

 

 

   

 

 

 

Cash Flows from Investing Activities:

       

Cash deposited in Trust Account

     (287,500,000      —         (287,500,000
  

 

 

    

 

 

   

 

 

 

Net cash used in investing activities

     (287,500,000      —         (287,500,000
  

 

 

    

 

 

   

 

 

 

Cash Flows from Financing Activities:

       

Proceeds from note payable to related party

     250,000      —         250,000

Repayment of note payable and advances from related party

     (250,000      —         (250,000

Proceeds received from initial public offering

     287,500,000      —         287,500,000

Proceeds from private placement

     7,750,000      —         7,750,000

Offering costs paid

     (5,885,229      648,239 (a)      (5,236,990
  

 

 

    

 

 

   

 

 

 

Net cash provided by financing activities

     289,364,771      648,239       290,013,010  
  

 

 

    

 

 

   

 

 

 

Net change in cash

     1,564,795      —         1,564,795  

Cash - beginning of year

     25,000      —         25,000
  

 

 

    

 

 

   

 

 

 

Cash - end of year

   $ 1,589,795    $
—  
 
  $ 1,589,795  
  

 

 

    

 

 

   

 

 

 

Supplemental disclosure of noncash activities:

       

Offering costs included in accounts payable

   $ 2,600    $ —       $ 2,600

Value of ordinary share subject to possible redemption

   $ 279,423,730      $ (252,634,140 )(a)    $ 26,789,590  

Deferred underwriting commissions

   $      $ 9,187,500 (a)    $ 9,187,500  

 

The following presents a reconciliation of the unaudited Balance Sheets from the balances previously reported to the restated balances as of March 31, 2020, June 30,2020, September 30, 2020, June 30, 2019 and September 30, 2019.

 

     March 31, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

Assets:

       

Current assets:

       

Cash

   $ 1,492,046    $ —       $ 1,492,046

Prepaid expenses

     109,585      —         109,585
  

 

 

    

 

 

   

 

 

 

Total current assets

     1,601,631      —         1,601,631

Investments held in Trust Account

     293,182,905      —         293,182,905
  

 

 

    

 

 

   

 

 

 

Total assets

     294,784,536      —         294,784,536
  

 

 

    

 

 

   

 

 

 

Liabilities and Shareholders’ Equity:

       

Current liabilities:

       

Accounts payable

     161,682      —         161,682

Accrued expenses

     50,000      —         50,000
  

 

 

    

 

 

   

 

 

 

Total current liabilities

     211,682      —         211,682

Warrant liability

     —          13,053,750 (a)      13,053,750

Deferred underwriting commissions

     9,187,500      —         9,187,500
  

 

 

    

 

 

   

 

 

 

Total liabilities

     9,399,182      13,053,750       22,452,932
  

 

 

    

 

 

   

 

 

 

Commitments and contingencies

       

Ordinary shares, $0.0001 par value; 28,750,000 shares subject to possible redemption at $10.00 per share at March 31, 2020

     280,385,350      7,114,650 (a)      287,500,000  

Shareholders’ Equity:

       

Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding

     —          —         —    

Ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 7,187,500 shares issued and outstanding (excluding 28,750,000 shares subject to possible redemption) at March 31, 2020

     790      (71 )(a)      719

Retained earnings / (Accumulated deficit)

     4,999,214      (20,168,329 )(a)      (15,169,115
  

 

 

    

 

 

   

 

 

 

Total shareholders’ equity

     5,000,004      (20,168,400     (15,168,396
  

 

 

    

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 294,784,536    $ —       $ 294,784,536
  

 

 

    

 

 

   

 

 

 

 

     June 30, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

Assets:

       

Current assets:

       

Cash

   $ 1,261,642    $ —       $ 1,261,642

Prepaid expenses

     83,333      —         83,333
  

 

 

    

 

 

   

 

 

 

Total current assets

     1,344,975      —         1,344,975

Investments held in Trust Account

     293,168,737      —         293,168,737
  

 

 

    

 

 

   

 

 

 

Total assets

     294,513,712      —         294,513,712
  

 

 

    

 

 

   

 

 

 

Liabilities and Shareholders’ Equity:

       

Current liabilities:

       

Accounts payable

     26,078      —         26,078

Accrued expenses

     25,000      —         25,000
  

 

 

    

 

 

   

 

 

 

Total current liabilities

     51,078      —         51,078

Warrant liability

     —          19,990,000 (a)      19,990,000

Deferred underwriting commissions

     9,187,500      —         9,187,500
  

 

 

    

 

 

   

 

 

 

Total liabilities

     9,238,578      19,990,000       29,228,578
  

 

 

    

 

 

   

 

 

 

Commitments and contingencies

       

Ordinary shares, $0.0001 par value; 28,750,000 shares subject to possible redemption at $10.00 per share at June 30, 2020

     280,275,130      7,224,870 (a)      287,500,000  

Shareholders’ Equity:

       

Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding

     —          —         —    

Ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 7,187,500 shares issued and outstanding (excluding 28,750,000 shares subject to possible redemption) at June 30, 2020

     791      (72 )(a)      719

Retained earnings / (Accumulated deficit)

     4,999,213      (27,214,798 )(a)      (22,215,585
  

 

 

    

 

 

   

 

 

 

Total shareholders’ equity

     5,000,004      (27,214,870     (22,214,866
  

 

 

    

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 294,513,712    $ —       $ 294,513,712
  

 

 

    

 

 

   

 

 

 

 

     September 30, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

Assets:

       

Current assets:

       

Cash

   $ 974,317    $ —       $ 974,317

Prepaid expenses

     47,084      —         47,084
  

 

 

    

 

 

   

 

 

 

Total current assets

     1,021,401      —         1,021,401

Investments held in Trust Account

     293,255,540      —         293,255,540
  

 

 

    

 

 

   

 

 

 

Total assets

     294,276,941      —         294,276,941
  

 

 

    

 

 

   

 

 

 

Liabilities and Shareholders’ Equity:

       

Current liabilities:

       

Accounts payable

     371,225      —         371,225

Accrued expenses

     414,571      —         414,571
  

 

 

    

 

 

   

 

 

 

Total current liabilities

     785,796      —         785,796

Warrant liability

     —          21,096,250 (a)      21,096,250

Deferred underwriting commissions

     9,187,500      —         9,187,500
  

 

 

    

 

 

   

 

 

 

Total liabilities

     9,973,296      21,096,250       31,069,546
  

 

 

    

 

 

   

 

 

 

Commitments and contingencies

       

Ordinary shares, $0.0001 par value; 28,750,000 shares subject to possible redemption at $10.00 per share at September 30, 2020

     279,303,640      8,196,360 (a)      287,500,000  

Shareholders’ Equity:

       

Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding

     —          —         —    

Ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 7,187,500 shares issued and outstanding (excluding 28,750,000 shares subject to possible redemption) at September 30, 2020

     801      (82 )(a)      719

Additional paid-in capital

     895,230      (895,230 )(a)      —    

Retained earnings / (Accumulated deficit)

     4,103,974      (28,397,298 )(a)      (24,293,324
  

 

 

    

 

 

   

 

 

 

Total shareholders’ equity

     5,000,005      (29,292,610     (24,292,605
  

 

 

    

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 294,276,941    $ —       $ 294,276,941
  

 

 

    

 

 

   

 

 

 

 

     June 30, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

Assets:

       

Current assets:

       

Cash

   $ 1,784,487    $ —       $ 1,784,487

Prepaid expenses

     138,629      —         138,629
  

 

 

    

 

 

   

 

 

 

Total current assets

     1,923,116      —         1,923,116

Investments held in Trust Account

     289,260,594      —         289,260,594
  

 

 

    

 

 

   

 

 

 

Total assets

     291,183,710      —         291,183,710
  

 

 

    

 

 

   

 

 

 

Liabilities and Shareholders’ Equity:

       

Current liabilities:

       

Accounts payable

     2,600      —         2,600

Accrued expenses

     170,269      —         170,269
  

 

 

    

 

 

   

 

 

 

Total current liabilities

     172,869      —         172,869

Warrant liability

     —          15,720,000 (a)      15,720,000

Deferred underwriting commissions

     9,187,500      —         9,187,500
  

 

 

    

 

 

   

 

 

 

Total liabilities

     9,360,369      15,720,000       25,080,369
  

 

 

    

 

 

   

 

 

 

Commitments and contingencies

       

Ordinary shares, $0.0001 par value; 28,750,000 shares subject to possible redemption at $10.00 per share at June 30, 2019

     276,823,340      10,676,660 (a)      287,500,000  

Shareholders’ Equity:

       

Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding

     —          —         —    

Ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 7,187,500 shares issued and outstanding (excluding 28,750,000 shares subject to possible redemption) at June 30, 2019

     826      (107 )(a)      719

Additional paid-in capital

     3,375,505      (3,375,505 )(a)      —    

Retained earnings / (Accumulated deficit)

     1,623,670      (23,021,048 )(a)      (21,397,378
  

 

 

    

 

 

   

 

 

 

Total shareholders’ equity

     5,000,001      (26,396,660     (21,396,659
  

 

 

    

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 291,183,710    $ —       $ 291,183,710
  

 

 

    

 

 

   

 

 

 

 

     September 30, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

Assets:

       

Current assets:

       

Cash

   $ 1,618,729    $ —       $ 1,618,729

Prepaid expenses

     101,988      —         101,988
  

 

 

    

 

 

   

 

 

 

Total current assets

     1,720,717      —         1,720,717

Investments held in Trust Account

     290,822,448      —         290,822,448
  

 

 

    

 

 

   

 

 

 

Total assets

     292,543,165      —         292,543,165
  

 

 

    

 

 

   

 

 

 

Liabilities and Shareholders’ Equity:

       

Current liabilities:

       

Accounts payable

     82,220      —         82,220

Accrued expenses

     —          —         —    
  

 

 

    

 

 

   

 

 

 

Total current liabilities

     82,220      —         82,220

Warrant liability

     —          16,671,250 (a)      16,671,250

Deferred underwriting commissions

     9,187,500      —         9,187,500
  

 

 

    

 

 

   

 

 

 

Total liabilities

     9,269,720      16,671,250       25,940,970
  

 

 

    

 

 

   

 

 

 

Commitments and contingencies

       

Ordinary shares, $0.0001 par value; 28,750,000 shares subject to possible redemption at $10.00 per share at September 30, 2019

     278,273,440      9,226,560 (a)      287,500,000  

Shareholders’ Equity:

       
Preference shares, $0.0001 par value; 2,000,000 shares authorized; none issued and outstanding      —          —         —    

Ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 7,187,500 shares issued and outstanding (excluding 28,750,000 shares subject to possible redemption) at September 30, 2019

     811      (92 )(a)      719

Additional paid-in capital

     1,925,420      (1,925,420 )(a)      —    

Retained earnings / (Accumulated deficit)

     3,073,774      (23,972,298 )(a)      (20,898,524
  

 

 

    

 

 

   

 

 

 

Total shareholders’ equity

     5,000,005      (25,897,810     (20,897,805
  

 

 

    

 

 

   

 

 

 

Total Liabilities and Shareholders’ Equity

   $ 292,543,165    $ —       $ 292,543,165
  

 

 

    

 

 

   

 

 

 

The following presents a reconciliation of the unaudited Statements of Operations from the amounts previously reported to the restated amounts for the three month period ended March 31, 2020, the three and six month periods ended June 30, 2020, the three and nine month periods ended September 30, 2020, the three and six month periods ended June 30, 2019 and the three and nine month periods ended September 30, 2019.

 

     For the three months ended March 31, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 167,129    $ —       $ 167,129
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (167,129      —         (167,129

Issuance costs allocated to Public Warrants

     —          —         —    

Gain on revaluation of warrant liability

     —          5,763,750 (a)      5,763,750

Gain on marketable securities, dividends and interest held in Trust Account

     1,128,747      —         1,128,747
  

 

 

    

 

 

   

 

 

 

Net income

   $ 961,618    $ 5,763,750     $ 6,725,368
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income per share, Public Shares

   $ 0.04    $ 0.15 (a)    $ 0.19
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net (loss) income per share, Founder Shares

   $ (0.02    $ 0.18 (a)    $ 0.16
  

 

 

    

 

 

   

 

 

 

 

     For the three months ended June 30, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 96,052    $ —       $ 96,052
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (96,052      —         (96,052

Loss on revaluation of warrant liability

     —          (6,936,250 )(a)      (6,936,250

Loss on marketable securities, dividends and interest held in Trust Account

     (14,168      —         (14,168
  

 

 

    

 

 

   

 

 

 

Net loss

   $ (110,220    $ (6,936,250   $ (7,046,470
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Public Shares

   $ —        $ (0.20 )(a)    $ (0.20
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.01    $ (0.19 )(a)    $ (0.20
  

 

 

    

 

 

   

 

 

 

 

     For the three months ended September 30, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 1,058,292    $ —       $ 1,058,292
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (1,058,292      —         (1,058,292

Loss on revaluation of warrant liability

     —          (1,106,250 )(a)      (1,106,250

Gain on marketable securities, dividends and interest held in Trust Account

     86,803      —         86,803
  

 

 

    

 

 

   

 

 

 

Net loss

   $ (971,489    $ (1,106,250   $ (2,077,739
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Public Shares

   $ —        $ (0.06 )(a)    $ (0.06
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.15    $ (0.09 )(a)    $ (0.06
  

 

 

    

 

 

   

 

 

 

 

     For the six months ended June 30, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 263,181    $ —       $ 263,181
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (263,181      —         (263,181

Loss on revaluation of warrant liability

     —          (1,172,500 )(a)      (1,172,500

Gain on marketable securities, dividends and interest held in Trust Account

     1,114,579      —         1,114,579
  

 

 

    

 

 

   

 

 

 

Net income (loss)

   $ 851,398    $ (1,172,500   $ (321,102
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income (loss) per share, Public Shares

   $ 0.04    $ (0.04 )(a)    $ 0.00
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.04    $ —   (a)    $ (0.04
  

 

 

    

 

 

   

 

 

 

 

     For the nine months ended September 30, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 1,321,473    $ —       $ 1,321,473
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (1,321,473      —         (1,321,473

Loss on revaluation of warrant liability

     —          (2,278,750 )(a)      (2,278,750

Gain on marketable securities, dividends and interest held in Trust Account

     1,201,382      —         1,201,382
  

 

 

    

 

 

   

 

 

 

Net loss

   $ (120,091    $ (2,278,750   $ (2,398,841
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income (loss) per share, Public Shares

   $ 0.04    $ (0.10 )(a)    $ (0.06
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.18    $ 0.08 (a)    $ (0.10
  

 

 

    

 

 

   

 

 

 

 

     For the three months ended June 30, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 120,491    $ —       $ 120,491
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (120,491      —         (120,491

Issuance costs allocated to Public Warrants

     —          (648,239 )(a)      (648,239

Gain on revaluation of warrant liability

     —          3,617,500 (a)      3,617,500  

Gain on marketable securities, dividends and interest held in Trust Account

     1,760,594      —         1,760,594
  

 

 

    

 

 

   

 

 

 

Net income

   $ 1,640,103    $ 2,969,261   $ 4,609,364
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income per share, Public Shares

   $ 0.06    $ 0.27 (a)   $ 0.33
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss) per share, Founder Shares

   $ (0.02    $ (0.65 )(a)   $ (0.67 )
  

 

 

    

 

 

   

 

 

 

 

     For the three months ended September 30, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 111,750    $ —       $ 111,750
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (111,750      —         (111,750

Loss on revaluation of warrant liability

     —          (951,250 )(a)      (951,250

Gain on marketable securities, dividends and interest held in Trust Account

     1,561,854      —         1,561,854
  

 

 

    

 

 

   

 

 

 

Net income (loss)

   $ 1,450,104    $ (951,250   $ 498,854
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income (loss) per share, Public Shares

   $ 0.05    $ (0.03 )(a)    $ 0.02
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.02    $ (0.01 )(a)    $ (0.03
  

 

 

    

 

 

   

 

 

 

 

     For the six months ended June 30, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 134,230    $ —       $ 134,230
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (134,230      —         (134,230

Issuance costs allocated to Public Warrants

     —          (648,239 )(a)      (648,239

Gain on revaluation of warrant liability

     —          3,617,500 (a)      3,617,500  

Gain on marketable securities, dividends and interest held in Trust Account

     1,760,594      —         1,760,594
  

 

 

    

 

 

   

 

 

 

Net income

   $ 1,626,364    $ 2,969,261   $ 4,595,625
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income per share, Public Shares

   $ 0.06    $ 0.27 (a)   $ 0.33
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.02    $ (0.65 )(a)   $ (0.67 )
  

 

 

    

 

 

   

 

 

 

 

     For the nine months ended September 30, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

General and administrative expenses

   $ 245,980    $ —       $ 245,980
  

 

 

    

 

 

   

 

 

 

Loss from operations

     (245,980      —         (245,980

Issuance costs allocated to Public Warrants

     —          (648,239 )(a)      (648,239

Gain on revaluation of warrant liability

     —          2,666,250 (a)      2,666,250  

Gain on marketable securities, dividends and interest held in Trust Account

     3,322,448      —         3,322,448
  

 

 

    

 

 

   

 

 

 

Net income

   $ 3,076,468    $ 2,018,011   $ 5,094,479
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Public Shares

     28,750,000      —         28,750,000
  

 

 

    

 

 

   

 

 

 

Basic and diluted net income per share, Public Shares

   $ 0.12    $ 0.23 (a)   $ 0.35
  

 

 

    

 

 

   

 

 

 

Basic and diluted weighted average shares outstanding of Founder Shares

     7,187,500      —         7,187,500
  

 

 

    

 

 

   

 

 

 

Basic and diluted net loss per share, Founder Shares

   $ (0.03    $ (0.67 )(a)   $ (0.70
  

 

 

    

 

 

   

 

 

 

The following tables contain the restatement of previously reported unaudited Statements of Cash Flows for the three month period ended March 31, 2020, the three and six month periods ended June 30, 2020, the three and nine month periods ended September 30, 2020, the three and six month periods ended June 30, 2019 and the three and nine month periods ended September 30, 2019.

 

     For the three months ended March 31, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

Cash Flows from Operating Activities:

       

Net income

   $ 961,618    $ 5,763,750 (a)   $ 6,725,368

Adjustments to reconcile net income to net cash used in operating activities:

 

Gain on marketable securities, dividends and interest held in Trust Account

     (1,128,747      —         (1,128,747

Gain on revaluation of warrant liability

     —          (5,763,750 )(a)      (5,763,750

Changes in operating assets and liabilities:

       

Prepaid expenses

     16,903      —         16,903

Accounts payable

     11,337      —         11,337

Accrued expenses

     41,140      —         41,140
  

 

 

    

 

 

   

 

 

 

Net cash used in operating activities

     (97,749      —         (97,749
  

 

 

    

 

 

   

 

 

 

Net change in cash

     (97,749      —         (97,749

Cash - beginning of period

     1,589,795      —         1,589,795
  

 

 

    

 

 

   

 

 

 

Cash - end of period

   $ 1,492,046    $ —       $ 1,492,046
  

 

 

    

 

 

   

 

 

 

Supplemental disclosure of noncash activities:

       

Prepaid expenses included in accounts payable

   $ 63,750    $ —       $ 63,750  

Remeasurement of ordinary shares subject to possible redemption

   $ 961,620      $ (961,620 )(a)    $ —    

 

     For the six months ended June 30, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

Cash Flows from Operating Activities:

       

Net income (loss)

   $ 851,398    $ (1,172,500 )(a)    $ (321,102

Adjustments to reconcile net income (loss) to net cash used in operating activities:

 

Gain on marketable securities, dividends and interest held in Trust Account

     (1,114,579      —         (1,114,579

Loss on revaluation of warrant liability

     —          1,172,500 (a)     1,172,500

Changes in operating assets and liabilities:

       

Prepaid expenses

     (20,595      —         (20,595

Accounts payable

     (60,517      —         (60,517

Accrued expenses

     16,140      —         16,140
  

 

 

    

 

 

   

 

 

 

Net cash used in operating activities

     (328,153      —         (328,153
  

 

 

    

 

 

   

 

 

 

Net change in cash

     (328,153      —         (328,153

Cash - beginning of period

     1,589,795      —         1,589,795
  

 

 

    

 

 

   

 

 

 

Cash - end of period

   $ 1,261,642    $ —       $ 1,261,642
  

 

 

    

 

 

   

 

 

 

Supplemental disclosure of noncash activities:

       

Remeasurement of ordinary shares subject to possible redemption

   $ 851,400    $ (851,400 )(a)    $ —    

 

     For the nine months ended September 30, 2020  
     As Reported      Restatement
Adjustments
    As Restated  

Cash Flows from Operating Activities:

       

Net loss

   $ (120,091    $ (2,278,750 )(a)    $ (2,398,841

Adjustments to reconcile net loss to net cash used in operating activities:

 

Gain on marketable securities, dividends and interest held in Trust Account

     (1,201,382      —         (1,201,382

Loss on revaluation of warrant liability

     —          2,278,750 (a)     2,278,750

Changes in operating assets and liabilities:

       

Prepaid expenses

     15,654      —         15,654

Accounts payable

     284,630      —         284,630

Accrued expenses

     405,711      —         405,711
  

 

 

    

 

 

   

 

 

 

Net cash used in operating activities

     (615,478      —         (615,478
  

 

 

    

 

 

   

 

 

 

Net change in cash

     (615,478      —         (615,478

Cash - beginning of period

     1,589,795      —         1,589,795
  

 

 

    

 

 

   

 

 

 

Cash - end of period

   $ 974,317    $ —       $ 974,317
  

 

 

    

 

 

   

 

 

 

Supplemental disclosure of noncash activities:

       

Remeasurement of ordinary shares subject to possible redemption

   $ (120,090    $ 120,090 (a)    $ —    

 

     For the six months ended June 30, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

Cash Flows from Operating Activities:

       

Net income

   $ 1,626,364    $ 2,969,261 (a)    $ 4,595,625  

Adjustments to reconcile net income to net cash used in operating activities:

 

General and administrative expenses paid by related party

     2,206      —         2,206

Gain on marketable securities, dividends and interest held in Trust Account

     (1,760,594      —         (1,760,594

Gain on revaluation of warrant liability

     —          (3,617,500 )(a)      (3,617,500

Changes in operating assets and liabilities:

       

Prepaid expenses

     (138,629      —         (138,629

Accrued expenses

     82,575      —         82,575
  

 

 

    

 

 

   

 

 

 

Net cash used in operating activities

     (188,078      (648,239     (836,317
  

 

 

    

 

 

   

 

 

 

Cash Flows from Investing Activities:

       

Cash deposited in Trust Account

     (287,500,000      —         (287,500,000
  

 

 

    

 

 

   

 

 

 

Net cash used in investing activities

     (287,500,000      —         (287,500,000
  

 

 

    

 

 

   

 

 

 

Cash Flows from Financing Activities:

       

Proceeds from note payable to related party

     250,000      —         250,000

Repayment of note payable and advances from related party

     (252,206      —         (252,206

Proceeds received from initial public offering

     287,500,000      —         287,500,000

Proceeds from private placement

     7,750,000      —         7,750,000

Offering costs paid

     (5,800,229      648,239 (a)     (5,151,990
  

 

 

    

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     289,447,565      648,239     290,095,804
  

 

 

    

 

 

   

 

 

 

Net change in cash

     1,759,487      —         1,759,487

Cash - beginning of period

     25,000      —         25,000
  

 

 

    

 

 

   

 

 

 

Cash - end of period

   $ 1,784,487    $ —       $ 1,784,487
  

 

 

    

 

 

   

 

 

 

Supplemental disclosure of noncash activities:

       

Offering costs included in accrued expenses

   $ 85,000    $ —       $ 85,000

Offering costs included in accounts payable

   $ 2,600    $ —       $ 2,600

Remeasurement of ordinary shares subject to possible redemption

   $ 276,823,340    $ (250,033,750 )(a)    $ 26,789,590  

Deferred underwriting commissions

   $      $ 9,187,500 (a)    $ 9,187,500  

 

     For the nine months ended September 30, 2019  
     As Reported      Restatement
Adjustments
    As Restated  

Cash Flows from Operating Activities:

       

Net income

   $ 3,076,468    $ 2,018,011 (a)    $ 5,094,479  

Adjustments to reconcile net income to net cash used in operating activities:

 

General and administrative expenses paid by related party

     2,206      —         2,206

Gain on marketable securities, dividends and interest held in Trust Account

     (3,322,448      —         (3,322,448

Gain on revaluation of warrant liability

     —          (2,666,250 )(a)      (2,666,250

Changes in operating assets and liabilities:

       

Prepaid expenses

     (101,988      —         (101,988

Accounts payable

     79,620      —         79,620

Accrued expenses

     (87,694      —         (87,694
  

 

 

    

 

 

   

 

 

 

Net cash used in operating activities

     (353,836      (648,239     (1,002,075
  

 

 

    

 

 

   

 

 

 

Cash Flows from Investing Activities:

       

Cash deposited in Trust Account

     (287,500,000      —         (287,500,000
  

 

 

    

 

 

   

 

 

 

Net cash used in investing activities

     (287,500,000      —         (287,500,000
  

 

 

    

 

 

   

 

 

 

Cash Flows from Financing Activities:

       

Proceeds from note payable to related party

     250,000      —         250,000

Repayment of note payable and advances from related party

     (252,206      —         (252,206

Proceeds received from initial public offering

     287,500,000      —         287,500,000

Proceeds from private placement

     7,750,000      —         7,750,000

Offering costs paid

     (5,800,229      648,239 (a)     (5,151,990
  

 

 

    

 

 

   

 

 

 

Net cash provided by financing activities

     289,447,565      648,239     290,095,804
  

 

 

    

 

 

   

 

 

 

Net change in cash

     1,593,729      —         1,593,729

Cash - beginning of period

     25,000      —         25,000
  

 

 

    

 

 

   

 

 

 

Cash - end of period

   $ 1,618,729    $ —       $ 1,618,729
  

 

 

    

 

 

   

 

 

 

Supplemental disclosure of noncash activities:

       

Offering costs included in accrued expenses

   $ 85,000    $ —       $ 85,000

Offering costs included in accounts payable

   $ 2,600    $ —       $ 2,600

Remeasurement of ordinary shares subject to possible redemption

   $ 278,273,440    $ (251,483,850 )(a)    $ 26,789,590  

Deferred underwriting commissions

   $      $ 9,187,500 (a)    $ 9,187,500  

 

  (a)

The Restatement Adjustments reflect the entries to record the initial liability for the Public and Private Warrants issued as part of Replay’s initial public offering and private placement, respectively, and to account for the adjustment to fair value of this liability at the end of each period presented. The initial fair value of the Public and Private Warrants of $19.3 million was recorded in April 2019 as a warrant liability with an offset to additional paid-in capital. In addition, the initial adjusting entry was also to expense approximately $648 thousand of costs directly associated with the issuance of the Public Warrants. The proceeds received from the sale of private warrants in excess of their fair value of $775 thousand was recognized as additional paid-in capital. For each subsequent quarter end, starting with June 30, 2019, the liability was revalued and the change in fair value reflected in “Gain/loss on revaluation of warrant liability” in the Statement of Operations. The Restatement Adjustment also reflect the impact of the remeasurement as of June 30, 2019 of the redeemable shares classified in temporary equity to align with the expected redemption amount of $287.5 million, the impact of the remeasurement of approximately $26.8 million was recognized as increase to the temporary equity balance with the offset to additional paid in capital and accumulated deficit. Additionally, the redemption amount was increased by the gains on marketable securities, dividends and interest held in the trust account, which is also subject to redemption by the ordinary shareholders. Lastly, the earning per share for both the Public and Founder shares was adjusted to account for the measurement adjustment to the temporary equity in accordance with the two classes of shares method and the guidance in ASC 480-10-S99-3A.