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Restatement Of Previously Issued Financial Statements
 11 Months Ended
Dec. 31, 2020
Restatement Of Financial Statements [Abstract]  
Restatement Of Financial Statements [Text Block]
NOTE 2—RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
The Company previously accounted for its outstanding Public Warrants (as defined in Note 4) and Private Placement Warrants (collectively, with the Public Warrants, the “Warrants”) issued in connection with its Initial Public Offering and its FPA (as defined in Note 6) as components of equity instead of as liabilities.
Upon review of the “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (SPACs)” promulgated by the SEC on April 12, 2021, the Company’s management further evaluated the Warrants and FPA under Accounting Standards Codification (“ASC”) Subtopic 815-40, Contracts in Entity’s Own Equity and concluded that they do not meet the criteria to be classified in stockholders’ equity.
As a result, the Company should have classified the Warrants and FPA as liabilities in its previously issued financial statements. Under this accounting treatment, the Company is required to measure the fair value of the Warrants and FPA at the end of each reporting period and recognize changes in the fair value from the prior period in the Company’s operating results for the current period.
 
The Company’s accounting for the Warrants and FPA as components of equity instead of as liabilities did not have any effect on the Company’s previously reported operating expenses, cash flows or cash.
The following table reflects HEC’s balance sheet and cash flow statement as of the dates and for the periods indicated below:
 
 
 
As Previously
Reported
 
 
Adjustments
 
 
As Restated
 
Balance sheet as of
June 11, 2020
(audited)
 
   
 
   
 
   
Warrant Liability
 
$
—  
 
 
$
34,697,600
 
 
$
34,697,600
 
FPA Liability
 
 
—  
 
 
 
350,000
 
 
 
350,000
 
Common Stock Subject to Possible Redemption
 
 
395,946,830
 
 
 
(35,047,600
) 
 
 
360,899,230
 
Class A Common Stock
 
 
181
 
 
 
350
 
 
 
531
 
Additional Paid-in Capital
 
 
5,003,772
 
 
 
2,906,063
 
 
 
7,909,835
 
Accumulated Deficit
 
 
(4,984
)
 
 
(2,906,413
) 
 
 
(2,911,397
)
    
Balance sheet as of
June 30, 2020
(
un
audited)
 
   
 
   
 
   
Warrant Liability
 
$
—  
 
 
$
36,039,600
 
 
$
36,039,600
 
FPA Liability
 
 
—  
 
 
 
675,000
 
 
 
675,000
 
Common Stock Subject to Possible Redemption
 
 
395,915,430
 
 
 
(36,714,600
) 
 
 
359,200,830
 
Class A Common Stock
 
 
181
 
 
 
367
 
 
 
548
 
Additional Paid-in Capital
 
 
5,035,172
 
 
 
4,573,046
 
 
 
9,608,218
 
Accumulated Deficit
 
 
(36,385
) 
 
 
(4,573,413
) 
 
 
(4,609,798
)
    
Three Months Ended June 30, 2020
(
un
audited)
 
   
 
   
 
   
Change in fair value of warrant liability
 
$
—  
 
 
$
(1,342,000
) 
 
$
(1,342,000
)
Change in fair value of FPA
 
 
—  
 
 
 
(325,000
) 
 
 
(325,000
) 
Compensation expense in connection with issuance of Private Placement Warrants
 
 
—  
 
 
 
(1,233,600
) 
 
 
(1,233,600
) 
Initial classification of FPA
 
 
—  
 
 
 
(350,000
) 
 
 
(350,000
) 
Transaction costs attributable to Warrants
 
 
—  
 
 
 
(1,322,813
) 
 
 
(1,322,813
) 
Net loss
 
 
(35,385
) 
 
 
(4,573,413
) 
 
 
(4,608,798
) 
Weighted average shares outstanding of Class B non-redeemable common stock
 
 
10,350,000
 
 
   
 
 
10,350,000
 
Basic and diluted net loss per share, Class B non-redeemable common stock
 
 
(0.00
) 
 
 
(0.45
) 
 
 
(0.45
) 
    
Period from
February 6, 2020
(inception) to
June 30, 2020
(
un
audited)
 
   
 
   
 
   
Change in fair value of warrant liability
 
$
—  
 
 
$
(1,342,000
) 
 
$
(1,342,000
)
Change in fair value of FPA
 
 
—  
 
 
 
(325,000
) 
 
 
(325,000
) 
Compensation expense in connection with issuance of Private Placement Warrants
 
 
—  
 
 
 
(1,233,600
) 
 
 
(1,233,600
) 
Initial classification of FPA
 
 
—  
 
 
 
(350,000
) 
 
 
(350,000
) 
Transaction costs attributable to Warrants
 
 
—  
 
 
 
(1,322,813
) 
 
 
(1,322,813
) 
Net loss
 
 
(36,385
) 
 
 
(4,573,413
) 
 
 
(4,609,798
) 
Weighted average shares outstanding of Class B non-redeemable common stock
 
 
10,350,000
 
 
   
 
 
10,350,000
 
Basic and diluted net loss per share, Class B non-redeemable common stock
 
 
(0.00
) 
 
 
(0.45
) 
 
 
(0.45
) 
    
Cash Flow Statement for the Period from February 6, 2020 (inception) to June 30, 2020 (unaudited)
 
   
 
   
 
   
Net Loss
 
$
(36,385
) 
 
$
(4,573,413
) 
 
$
(4,609,798
) 
Change in fair value of warrant liability
 
$
 
 
 
$
1,342,000
 
 
$
 1,342,000
 
Initial classification of warrant liability
 
$
 
 
 
$
34,697,600
 
 
$
34,697,600
 
Change in fair value of FPA Liability
 
$
 
 
 
$
325,000
 
 
$
325,000
 
Initial classification of FPA liability
 
$
 
 
 
$
350,000
 
 
$
350,000
 
Transaction Costs
 
$
 
 
 
$
1,322,813
 
 
$
1,322,813
 
Initial classification of common stock subject to redemption
 
$
395,946,830
 
 
$
(35,047,600
) 
 
$
360,899,230
 
Change in value of common stock subject to possible redemption
 
$
(31,400
) 
 
$
(1,667,000
)
 
$
(1,698,400
) 
    
Balance sheet as of
September 30, 2020
(
un
audited)
 
   
 
   
 
   
Warrant Liability
 
$
—  
 
 
$
36,659,200
 
 
$
36,659,200
 
FPA Liability
 
 
—  
 
 
 
1,100,000
 
 
 
1,100,000
 
Common Stock Subject to Possible Redemption
 
 
395,905,310
 
 
 
(37,759,200
) 
 
 
358,146,110
 
Class A Common Stock
 
 
181
 
 
 
378
 
 
 
11
 
Additional Paid-in Capital
 
 
5,045,292
 
 
 
5,617,635
 
 
 
10,662,927
 
Accumulated Deficit
 
 
(46,499
) 
 
 
(5,618,013
) 
 
 
(5,664,512
)
    
Three Months Ended September 30, 2020
(
un
audited)
 
   
 
   
 
   
Change in fair value of warrant liability
 
$
—  
 
 
$
(619,600
) 
 
$
(619,600
)
Change in fair value of FPA
 
 
—  
 
 
 
(425,000
) 
 
 
(425,000
) 
Net loss
 
 
(10,114
) 
 
 
(1,044,600
) 
 
 
(1,054,714
) 
Weighted average shares outstanding of Class B non-redeemable common stock
 
 
10,350,000
 
 
   
 
 
10,350,000
 
Basic and diluted net loss per share, Class B non-redeemable common stock
 
 
(0.01
) 
 
 
(0.10
) 
 
 
(0.11
) 
    
Period from
February 6, 2020
(inception) to
September 30, 2020
(
un
audited)
 
   
 
   
 
   
Change in fair value of warrant liability
 
$
—  
 
 
$
(1,961,600
) 
 
$
(1,961,600
 
Change in fair value of FPA
 
 
—  
 
 
 
(750,000
) 
 
 
(750,000
) 
Compensation expense in connection with issuance of Private Placement Warrants
 
 
—  
 
 
 
(1,233,600
) 
 
 
(1,233,600
) 
Initial classification of FPA
 
 
—  
 
 
 
(350,000
) 
 
 
(350,000
) 
Transaction costs attributable to Warrants
 
 
—  
 
 
 
(1,322,813
) 
 
 
(1,322,813
) 
Net loss
 
 
(46,499
) 
 
 
(5,618,013
) 
 
 
(5,664,512
) 
Weighted average shares outstanding of Class B non-redeemable common stock
 
 
10,350,000
 
 
   
 
 
10,350,000
 
Basic and diluted net loss per share, Class B non-redeemable common stock
 
 
(0.01
) 
 
 
(0.54
) 
 
 
(0.55
) 
    
Cash Flow Statement for the Period from February 6, 2020 (inception) to September 30, 2020 (unaudited)
 
   
 
   
 
   
Net Loss
 
$
(46,499
) 
 
$
(5,618,013
) 
 
$
(5,664,512
) 
Change in fair value of warrant liability
 
$
 
 
 
$
1,961,600
 
 
$
 1,961,600
 
Initial classification of warrant liability
 
$
 
 
 
$
34,697,600
 
 
$
34,697,600
 
Change in fair value of FPA Liability
 
$
 
 
 
$
750,000
 
 
$
750,000
 
Initial classification of FPA liability
 
$
 
 
 
$
350,000
 
 
$
350,000
 
Transaction Costs
 
$
 
 
 
$
1,322,813
 
 
$
1,322,813
 
Initial classification of common stock subject to redemption
 
$
395,946,830
 
 
$
(35,047,600
) 
 
$
360,899,230
 
Change in value of common stock subject to possible redemption
 
$
(41,520
) 
 
$
(2,711,600
)
 
$
(2,753,120
) 
    
Balance sheet as of
December 31, 2020
(audited)
 
   
 
   
 
   
Warrant Liability
 
$
—  
 
 
$
53,594,000
 
 
$
53,594,000
 
FPA Liability
 
 
—  
 
 
 
4,225,000
 
 
 
4,225,000
 
Common Stock Subject to Possible Redemption
 
 
394,393,720
 
 
 
(57,819,000
) 
 
 
336,574,720
 
Class A Common Stock
 
 
196
 
 
 
578
 
 
 
774
 
Additional Paid-in Capital
 
 
6,556,867
 
 
 
25,677235
 
 
 
32,234,102
 
Accumulated Deficit
 
 
(1,558,095
) 
 
 
(25,677,813
) 
 
 
(27,235,908
)
    
Period from
February 6, 2020
(inception) to
December 31, 2020
(audited)
 
   
 
   
 
   
Change in fair value of warrant liability
 
$
—  
 
 
$
(18,896,400
) 
 
$
(18,896,400
)
Change in fair value of FPA
 
 
—  
 
 
 
(3,875,000
) 
 
 
(3,875,000
) 
Compensation expense in connection with issuance of Private Placement Warrants
 
 
—  
 
 
 
(1,233,600
) 
 
 
(1,233,600
) 
Initial classification of FPA
 
 
—  
 
 
 
(350,000
) 
 
 
(350,000
) 
Transaction costs attributable to Warrants
 
 
—  
 
 
 
(1,322,813
) 
 
 
(1,322,813
) 
Net loss
 
 
(1,558,095
) 
 
 
(25,677,813
) 
 
 
(27,235,908
) 
Weighted average shares outstanding of Class B non-redeemable common stock
 
 
10,350,000
 
 
   
 
 
10,350,000
 
Basic and diluted net loss per share, Class B non-redeemable common stock
 
 
(0.15
) 
 
 
(2.49
) 
 
 
(2.64
) 
    
Cash Flow Statement for the Period from February 6, 2020 (inception) to December 31, 2020 (audited)
 
   
 
   
 
   
Net Loss
 
$
(1,558,095
) 
 
$
(25,677,813
) 
 
$
(27,235,908
) 
Change in fair value of warrant liability
 
$
 
 
 
$
18,896,400
 
 
$
 18,896,400
 
Initial classification of warrant liability
 
$
 
 
 
$
34,697,600
 
 
$
34,697,600
 
Change in fair value of FPA Liability
 
$
 
 
 
$
3,875,000
 
 
$
3,875,000
 
Initial classification of FPA liability
 
$
 
 
 
$
350,000
 
 
$
350,000
 
Transaction Costs
 
$
 
 
 
$
1,322,813
 
 
$
1,322,813
 
Initial classification of common stock subject to redemption
 
$
395,946,830
 
 
$
(35,047,600
) 
 
$
360,899,230
 
Change in value of common stock subject to possible redemption
 
$
(1,553,110
) 
 
$
(22,771,400
)
 
$
(24,324,510
)