Ace Convergence in an 8-K filing said it would amend and refile its most recent annual report as well as quarterly financial statements to account for warrants as liabilities on the balance sheet. The decision was made, the SPAC said, in consultation with its accounting firm and follows the SEC’s statement last month that SPAC warrants should be treated as derivative liabilities, not assets.
“Going forward, unless the company amends the terms of the warrant agreement, the company expects to continue to classify its warrants as liabilities, which would require the company to incur the cost of measuring the fair value of the warrant liabilities, and which may have an adverse effect on the company’s results of operations,” the SPAC said in the filing.
ACE Convergence has a pending merger agreement with Achronix Semiconductor for $330 million. Read more.
