Fisker Confirms Change to Warrant Accounting Treatment Following SEC Statement
THE ANGEL--(BUSINESS WIRE) - Fisker Inc. ("Fisker" or "Company") (NYSE: FSR) announced that, according to a "Staff Statement" released by the US Securities and Exchange Commission on April 12, 2021 ) in this regard The accounting and reporting of warrants issued by special purpose entities (“SPACs”) and the consolidated financial statements submitted in their annual report on Form 10-K for the fiscal year ended December 31, 2020 should be adjusted.
The restatement will be limited to this change in accounting policy that the company believes will affect several hundred companies and will have no impact on historical or forward-looking cash flow and operations.
The restatement relates to the accounting for warrants for public and private placements that were made at the time of the business combination of Fisker Inc. with Spartan Energy Acquisition Corp. pending on October 29, 2020.
As of March 31, 2021, Fisker had approximately 3.4 million public warrants and 0 outstanding private placement warrants, representing approximately 12% of the 27.76 million warrants originally issued by Spartan Energy Acquisition Corp. On April 19, 2021 after the previous warrants had been concluded, the announced cashless warrant redemption was announced; there were no more warrants outstanding.
In accordance with the SPACs' market practice, these warrants were previously accounted for as equity. In light of the personnel statement, Fisker intends to record the warrants as a liability. The company tentatively estimates that the change in accounting policy will result in an increase in non-cash non-operating expenses in the income statement for the three and twelve months ended December 31, 2020 by approximately $ 75 million to $ 85 million. The company assumes that the historically reported cash and cash equivalents as well as the cash flows from operating activities, investing activities or financing activities will have no effects. The company anticipates that the revaluation of the warrants to fair value on non-cash non-operating expenses will be between $ 145 million and $ 155 million in the first quarter of 2021. These estimates are unaudited, preliminary and are subject to change once management finalizes the restatement.
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive industry by creating the world's most emotionally desirable and environmentally friendly electric vehicles. The company is passionately driven by the vision of a clean future for all and has set itself the goal of becoming the leading provider of electric mobility services with the most sustainable vehicles in the world. To find out more, visit www.FiskerInc.com - and enjoy exclusive content on Fisker's social media channels: Facebook, Instagram, Twitter, YouTube and LinkedIn. Download the revolutionary new Fisker mobile app from the App Store or the Google Play Store.
read more
Comments
Post a Comment