Prospector Capital Corp.: auditor change — Prospector Capital restates Q1/Q2 2023 financials; warrants reclassified from equity to liabilities

Prospector Capital Corp.

Error identified: 10.8M public warrants and 5.7M private placement warrants incorrectly classified as equity instead of liabilities.
Caused by January 2023 redemptions triggering warrant tender-offer provision without change of control.
Financials for periods ended March 31, 2023 and June 30, 2023 should no longer be relied upon.
Restatement to be filed in Q3 2023 Form 10-Q; discussed with auditor WithumSmith+Brown.

item 4.02

Key facts

Extracted from this filing and checked against the source text.

Auditor Changes SEC 8-K Item 4.01/4.02 confidence 0.9

Prospector Capital Corp. reported that prior financial statements should not be relied upon.

Action: non reliance
Auditor: WithumSmith+Brown, PC

Exact text from the filing

On November 27, 2023, the Company’s management and the Audit Committee of the Company’s Board of Directors (the “ Audit Committee ”) concluded that, in light of the foregoing determination, certain items on the Company’s previously issued unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023, filed with the U.S. Securities and Exchange Commission (the “ SEC ”) on May 15, 2023, and unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2023, filed with the SEC on August 14, 2023 (collectively, the “ Affected Periods ”), should be restated to classify the Warrants as liabilities and should no longer be relied upon.

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Source: SEC EDGAR

accession 0001213900-23-090327

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