Quarterly report pursuant to Section 13 or 15(d)

Comparison of Restated Financial Statements to Financial Statements As Previously Reported (Tables)

v3.20.4
Comparison of Restated Financial Statements to Financial Statements As Previously Reported (Tables)
 6 Months Ended
Jun. 30, 2020
Accounting Changes and Error Corrections [Abstract]  
Schedule of Condensed Consolidated Balance Sheet

CONDENSED CONSOLIDATED BALANCE SHEETS

 

    June 30, 2020  
    As Originally Reported     Adjustments     As Restated  
                   
Assets                        
Current assets:                        
Cash   $ 257,601     $ -     $ 257,601  
Restricted cash     787,865       -       787,865  
Prepaid income taxes     21,806       -       21,806  
Prepaid expenses     118,645       -       118,645  
Total current assets     1,185,917       -       1,185,917  
                         
Other assets     163,797       -       163,797  
Marketable securities held in Trust Account     11,276,350       -       11,276,350  
Total Assets   $ 12,626,064     $ -     $ 12,626,064  
                         
Liabilities and Stockholders' Equity                        
Current liabilities:                        
Accounts payable and accrued expenses   $ 339,497     $ 655,555     $ 995,052  
Accrued issuable equity     -       96,011       96,011  
March promissory note – related party     337,301       -       337,301  
Due to related party     795,003       -       795,003  
Advances due - 180     1,379,815       -       1,379,815  
Convertible promissory notes, net of debt discount     431,745       (107,481 )     324,264  
Derivative liability     214,188       -       214,188  
Total liabilities     3,497,549       644,085       4,141,634  
                         
Commitments and contingencies                        
                         
Common stock subject to possible redemption     4,128,507       (644,085 )     3,484,422  
                         
Stockholders' Equity:                        
Preferred stock     -       -       -  
Common stock     508       6       514  
Additional paid-in capital     6,458,398       3,124,994       9,583,392  
(Accumulated deficit)/Retained earnings     (1,458,898 )     (3,125,000 )     (4,583,898 )
Total Stockholders' Equity     5,000,008       -       5,000,008  
Total Liabilities and Stockholders' Equity   $ 12,626,064     $ -     $ 12,626,064  
Schedule of Condensed Consolidated Statement of Operations

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

  

    For the Three Months Ended June 30, 2020     For the Six Months Ended June 30, 2020  
    As Originally Reported     Adjustments     As Restated     As Originally Reported     Adjustments     As Restated  
                                     
General and administrative expenses   $ 388,039     $ 3,125,000     $ 3,513,039     $ 635,631     $ 3,125,000     $ 3,760,631  
Loss from operations     388,039       3,125,000       3,513,039       635,631       3,125,000       3,760,631  
                                                 
Other (expense) income:                                                
Interest expense     (270,257 )     -       (270,257 )     (270,257 )     -       (270,257 )
Loss on issuance of convertible promissory note     (1,657,522 )     -       (1,657,522 )     (1,657,522 )     -       (1,657,522 )
Interest income     2,950       -       2,950       38,438       -       38,438  
Other (expense) income, net     (1,924,829 )     -     (1,924,829 )     (1,889,341 )     -       (1,889,341 )
                                                 
(Loss) income before income taxes     (2,312,868 )     (3,125,000 )     (5,437,868 )     (2,524,972 )     (3,125,000 )     (5,649,972 )
BBenefit (provision) from income taxes     1,480       -       1,480       (3,827 )     -       (3,827 )
Net (loss) income   $ (2,311,388 )   $ (3,125,000 )   $ (5,436,388 )   $ (2,528,799 )   $ (3,125,000 )   $ (5,653,799 )
                                                 
Weighted average shares outstanding                                                
Basic     4,479,278       -       4,479,278       4,468,714       -       4,468,714  
Diluted     4,479,278       -       4,479,278       4,468,714       -       4,468,714  
                                                 
Net (loss) income per common share                                                
Basic   $ (0.52 )   $ (0.69 )   $ (1.21 )   $ (0.57 )   $ (0.70 )   $ (1.27 )
Diluted   $ (0.52 )   $ (0.69 )   $ (1.21 )   $ (0.57 )   $ (0.70 )   $ (1.27 )
Schedule of Condensed Consolidated Statement of Cash Flows

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

    For the Six Months Ended June 30, 2020  
    As Originally Reported     Adjustments     As Restated  
                   
Cash Flows from Operating Activities:                        
Net (loss) income   $ (2,528,799 )   $ (3,125,000 )   $ (5,653,799 )
Adjustments to reconcile net (loss) income to net cash used in operating activities:                        
Interest income earned on investments held in Trust Account     (38,438 )     -       (38,438 )
Stock-based compensation     -       2,625,000       2,625,000  
Amortization of debt discount     252,493       -       252,493  
Loss on issuance of convertible promissory notes     1,657,522       -       1,657,522  
Changes in operating assets and liabilities:                        
Prepaid income taxes     3,827       -       3,827  
Prepaid expenses     (66,855 )     -       (66,855 )
Other asset     (163,797 )     -       (163,797 )
Accounts payable and accrued expenses     71,074       500,000       571,074  
Net cash and restricted cash used in operating activities     (812,973 )     -       (812,973 )
                         
Cash Flows from Investing Activities:                        
Cash withdrawn from Trust Account for redemptions     728,884       -       728,884  
Investment of cash in Trust Account     (89,142 )     -       (89,142 )
Net cash and restricted cash provided by investing activities     639,742       -       639,742  
                         
Cash Flows from Financing Activities:                        
Proceeds from promissory note – CannBioRx     9,990       -       9,990  
Repayment of promissory note - CannBioRx     (330,000 )     -       (330,000 )
Proceeds from convertible promissory note – related party     33,877       -       33,877  
Repayment of convertible promissory note – related party     (62,922 )     -       (62,922 )
Proceeds from convertible promissory notes     1,750,000       -       1,750,000  
Redemptions of common stock     (728,884 )     -       (728,884 )
Net cash and restricted cash provided by (used in) financing activities     672,061       -       672,061  
                         
Net Change in Cash and Restricted Cash     498,830       -       498,830  
Cash and Restricted Cash – Beginning of period     546,636       -       546,636  
Cash and Restricted Cash – Ending of period   $ 1,045,466     $ -     $ 1,045,466  
                         
Supplementary cash flow information:                        
                         
Non-cash investing and financing activities:                        
Change in value of common stock subject to possible redemption   $ 4,510,285     $ (644,085 )   $ 3,866,200  
Waiver of deferred underwriting fee   $ 4,025,000     $ -     $ 4,025,000  
Accrual of debt issuance costs   $ -     $ 251,566     $ 251,566  
Initial classification of debt discount in connection with issuance of convertible promissory note   $ 3,208,527     $ 107,481     $ 3,316,008  
Initial classification of derivative liability in connection with issuance of convertible promissory note   $ 214,188     $ -     $ 214,188  
Original issue discount in connection with issuance of convertible promissory note   $ 194,445     $ -     $ 194,445  
Initial classification of debt discount and issuance of commitment shares and leak-out shares in connection with convertible promissory note   $ 3,014,082     $ 107,481     $ 3,121,563