Danimer Scientific Responds to SEC Staff Statement Regarding Accounting Treatment of Warrants
Danimer Scientific (NYSE: DNMR) (“Danimer” or the “Company”), a leading next generation bioplastics company focused on the development and production of biodegradable materials, today announced a response to the public statement issued by the staff of the Securities and Exchange Commission on April 12, 2021 (the “Staff Statement”) regarding accounting and reporting considerations for warrants issued by Special Purpose Acquisition Companies (“SPACs”).
Similar to other SPACs, the Company had previously classified its private warrants (“Private Warrants”), which were issued in 2020, as equity. However, after evaluating the Staff Statement and consulting with its advisors, the Company will restate its audited consolidated financial statements for the year ended December 31, 2020 to classify the Company’s Private Warrants as a liability instead of as equity as previously reported and to reflect the change in the fair value of such liability in each period as a non-cash charge or gain in the consolidated statement of operations. This restatement will have no impact on Danimer’s current or historical reported cash or cash equivalents, revenues, loss from operations, or cash flows from operating, investing, or financing activities. The Company is also evaluating how the facts and circumstances described above impact management’s assessment of the effectiveness of internal control over financial reporting and disclosure controls and procedures.
The Company is working diligently to finalize the valuation and accounting treatment of the Private Warrants and intends to file an amendment to its Annual Report on Form 10-K for the year ended December 31, 2020 as soon as reasonably practicable.
For additional details, please visit: https://ir.danimerscientific.com/sec-filings
About Danimer Scientific
Danimer Scientific is a pioneer in creating more sustainable, more natural ways to make plastic products. For more than a decade, the Company’s renewable and sustainable biopolymers have helped create plastic products that are biodegradable and compostable. They return to nature instead of polluting the environment. Danimer Scientific’s technology can be found in a vast array of plastic end products that people use every day. Applications for Danimer Scientific’s biopolymers include additives, aqueous coatings, fibers, filaments, films, hot-melt adhesives, and injection-molded articles, among others. The Company now holds more than 150 patents and pending patent applications in more than 20 countries for a range of manufacturing processes and biopolymer formulations. For more information, visit www.DanimerScientific.com.