Fisker Confirms Change to Warrant Accounting Treatment Following SEC Statement
May 07 2021 - 4:20PM
Business Wire
Fisker Inc. (“Fisker” or “Company”) (NYSE: FSR) announced that,
following a statement published by the Staff of the U.S. Securities
and Exchange Commission on April 12, 2021 (the “Staff Statement”)
regarding the accounting and reporting of warrants issued by
special purpose acquisition companies (“SPACs”), the consolidated
financial statement filed in its Annual Report on Form 10-K for the
year ended December 31, 2020 should be restated.
The restatement will be isolated to this change in accounting
treatment, which the Company believes also impacts several hundred
companies, and has no impact on historical or forward-looking cash
flow and operations of the Company.
The restatement pertains to the accounting treatment for both
public and private placement warrants that were outstanding at the
time of the business combination of legacy Fisker Inc. with Spartan
Energy Acquisition Corp. on October 29, 2020.
As of March 31, 2021, Fisker had approximately 3.4 million
public warrants and 0 private placement warrants outstanding,
approximately 12% of the 27.76 million warrants originally issued
by Spartan Energy Acquisition Corp. As of April 19, 2021, upon the
completion of the previously announced cashless warrant redemption,
there were no longer any warrants outstanding.
Consistent with market practice among SPACs, these warrants had
previously been accounted for as equity. In consideration of the
Staff Statement, Fisker intends to account for the warrants as
liabilities. The Company preliminarily estimates that the change in
accounting method will cause non-cash non-operating expenses in the
Statement of Operations for the three and twelve months ended
December 31, 2020 to increase by approximately $75 to $85 million.
The Company expects that there will be no impact to its
historically reported cash and cash equivalents, or cash flows from
operating, investing or financing activities. The Company
anticipates that the impact of remeasuring the Warrants to their
fair values on first quarter 2021 non-cash non-operating expense
will be between $145 million and $155 million. These estimates are
unaudited, preliminary, and subject to change as management
completes the restatement.
About Fisker Inc.
California-based Fisker Inc. is revolutionizing the automotive
industry by developing the most emotionally desirable and
eco-friendly electric vehicles on Earth. Passionately driven by a
vision of a clean future for all, the company is on a mission to
become the No. 1 e-mobility service provider with the world’s most
sustainable vehicles. To learn more, visit www.FiskerInc.com – and
enjoy exclusive content across Fisker’s social media channels:
Facebook, Instagram, Twitter, YouTube and LinkedIn. Download the
revolutionary new Fisker mobile app from the App Store or Google
Play store.
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version on businesswire.com: https://www.businesswire.com/news/home/20210507005580/en/
Fisker Inc. Simon Sproule, SVP, Communications 310.374.6177
Fisker@GoDRIVEN360.com
Dan Galves, VP, Investor Relations dgalves@fiskerinc.com
FiskerIR@icrinc.com
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