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Note 2 - Restatement of Previously Issued Financial Statements
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Accounting Changes and Error Corrections [Text Block]

NOTE 2.

Restatement of Previously Issued Financial Statements

 

We previously accounted for our investment in Yellowstone under the equity method of accounting.  In light of the Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”) issued by the staff of the SEC dated April 12, 2021 (the “SEC Staff Statement”), the Company re-evaluated its accounting for its investment in Yellowstone under Accounting Standards Codification 810, Consolidation. 

 

Based on our evaluation of the facts and circumstances, we concluded that our investment in Yellowstone, which provides us with the right, among others, to appoint the board members of Yellowstone, represents a controlling financial interest in the entity requiring consolidation of the entity.  As a result, we are reclassifying our investment in Yellowstone to reflect the full consolidation of Yellowstone. Our previously recognized investment in Yellowstone, which consisted of shares of Yellowstone's Class B common stock accounted for under the equity method of accounting as well as warrants to purchase shares of Yellowstone's Class A common stock which were accounted for as derivative assets recorded at fair value, is now eliminated in consolidation.

 

We are also correcting an error within our Statement of Cash Flows relating to the reporting of funds held as collateral to present them as restricted cash with the associated cash inflows included within cash flows from financing activities.  The funds held as collateral reside within money market accounts and we are restricted as to their use, but the funds meet the definition of cash and cash equivalents and should be reported within the statement of cash flows. 

 

The below table summarizes the effect of the restatement on each financial statement line item as of the date, and for the period, indicated.  The effects of the restatement are incorporated within Notes 3, 4, 7, 9, 10, 11, 16, 18 and 19 to the financial statements.

 

  

December 31, 2020

 
  

As Previously

         
  

Reported

  

Adjustments

  

As Restated

 

Balance Sheet

            
Cash and cash equivalents $43,543,778  $1,122,194  $44,665,972 
Investments held in trust - special purpose acquisition company  -   138,716,226   138,716,226 
Prepaid expenses  1,794,155   403,187   2,197,342 
Total Current Assets  188,807,710   140,241,607   329,049,317 
Investments  24,234,782   (4,786,263)  19,448,519 
Investments in unconsolidated affiliates  25,315,696   (4,401,800)  20,913,896 
Total Other Assets  272,337,903   (9,188,066)  263,149,837 
Total Assets  509,653,885   131,053,541   640,707,426 

Accounts payable and accrued expenses

  6,361,778   463,303   6,825,081 

Deferred underwriting fee payable

  -   4,759,615   4,759,615 

Total Current Liabilities

  28,647,331   5,222,918   33,870,249 

Warrants liability

  -   8,431,315   8,431,315 

Total liabilities

  100,459,787   13,654,233   114,114,020 
Redeemable Noncontrolling interest  6,318,389   138,708,760   145,027,149 

Accumulated deficit

  (21,356,164)  (21,309,452)  (42,665,616)

Total Stockholders' Equity (Deficit)

 $402,875,709  $(21,309,452) $381,566,257 
             

Statement of Operations

            

Professional fees

 $3,530,278  $656,563  $4,186,841 
General and administrative  6,283,582   312,290   6,595,872 

Total Costs and Expenses

  49,769,517   968,853   50,738,370 
Net Loss from Operations  (4,026,054)  (968,853)  (4,994,907)

Equity in income (loss) of unconsolidated affiliates

  5,187,159   388,412   5,575,571 

Unrealized (loss) gain on securities

  (8,260,941)  (2,138,991)  (10,399,932)
Gain on disposition of investments  5,701,909   12,298   5,714,207 
Remeasurement of warrant liability  -   (217,582)  (217,582)

Income (Loss) Before Income Taxes

  496,464   (2,924,716)  (2,428,252)
Noncontrolling interest in subsidiary (income) loss  (40,681)  2,419,844   2,379,163 

Net income (loss) Attributable to Common Stockholders

  455,783   (504,872)  (49,089)

Basic and Diluted Net Loss per Share

 $0.02  $(0.02) $0.00 
             

Statement of Cash Flows

            

Net income (loss)

 $496,464  $(2,924,716) $(2,428,252)
Equity in earnings of unconsolidated affiliates  (5,187,159)  (388,412)  (5,575,571)
Unrealized losses (gains) on securities  8,260,941   2,138,991   10,399,932 
Remeasurement of warrant liability  -   217,582   217,582 

Issuance costs related to warrant liability

  -   509,899   509,899 

Gain on disposition of investments

  (5,701,909)  (12,298)  (5,714,207)
Prepaid expenses  (353,930)  (403,187)  (757,117)
Accounts payable and accrued expenses  276,806   463,306   740,112 
Net Cash Provided by Operating Activities  5,573,281   (398,835)  5,174,446 

Purchase of Yellowstone warrants

  (7,719,779)  7,719,779   - 
Investment in unconsolidated affiliates  (5,715,625)  (284,375)  (6,000,000)
Proceeds from sales of investments  513,815,641   265,999,999   779,815,640 

Purchase of investments

  (488,315,757)  (404,701,849)  (893,017,606)
Net Cash Used in Investing Activities  (38,133,518)  (131,266,446)  (169,399,964)
Proceeds from issuance of stock within SPAC  -   135,988,980   135,988,980 
Receipt of funds held as collateral  -   10,006,075   10,006,075 
Offering costs within SPAC  -   (3,201,505)  (3,201,505)
Net Cash Provided by Financing Activities  60,012,252   142,793,550   202,805,802 
Net Increase (Decrease) in Cash, Cash Equivalents, and Restricted Cash $27,452,015  $11,128,269  $38,580,284