Thorny accounting issues continue to dog some de-SPACs.
The latest: how to account for certain types of backup funding arrangements used by SPACs to ensure their deals to take companies public go through even if investors bail.
Three companies that went public via SPAC merger in the past month have flagged errors serious enough to require restating, or redoing, their past financial statements, recent filings show.
The companies—hearing loss devicemaker Envoy Medical, renewable energy technology firm Electriq Power Holdings Inc., and biopharmaceutical company Ocean Biomedical Inc.— said they tripped up in accounting for backstop financing arrangements, Bloomberg reports.
An SEC staff accountant encourages SPACs to consult with agency on reporting backstop financing. Read more.
