Atlantic Avenue Acquisition : Non-Reliance on Previously Issued Financial Statement or Related Audit Report or Completed Interim Review (Form 8-K)

Non-Reliance on Previously Issued Financial Statement or Related Audit Report or Completed Interim Review.

(a) On May 24, 2021, the Audit Committee of the Board of Directors (the 'Audit Committee') of Atlantic Avenue Acquisition Corp (the 'Company'), after consultation with management and our independent public accountants, WithumSmith+Brown, PC, concluded that the Company's audited financial statements as of and for the period from July 27, 2020 (inception) through December 31, 2020 and its audited balance sheet as of October 6, 2020 (collectively, the 'Non-Reliance Periods'), as reported in the Company's Annual Report on Form 10-K filed March 25, 2021 and October 13, 2020, should no longer be relied upon because of the errors identified therein.

On April 12, 2021, the staff (the 'Staff') of the Securities and Exchange Commission (the 'SEC') issued a statement entitled 'Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies ('SPACs').' In the statement, the Staff, among other things, highlighted potential accounting implications of certain terms that are common in warrants issued in connection with the initial public offerings of special purpose acquisition companies such as the Company. In connection with such statement, the Company revisited its accounting for its public warrants and private placement warrants issued in connection with the Company's initial public offering (the 'Warrants'), and determined that they should be treated as derivative liabilities pursuant to ASC 815-40 rather than as components of equity as the Company previously treated the Warrants. The correction involves only non-cash adjustments.

As a result, the Company today is announcing that it will restate its historical financial results for the Non-Reliance Periods, in each case to reflect the change in accounting treatment (the 'Restatement'). Further details will be included in the Company's Form 10-K/A, which the Company intends to file as soon as practicable.

The Audit Committee and management have discussed the matters disclosed pursuant to this Item 4.02(a) with the Company's independent accountant.

Cautionary Statements Regarding Forward-Looking Statements

This Current Report on Form 8-K includes 'forward-looking statements' within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Certain of these forward-looking statements can be identified by the use of words such as 'believes,' 'expects,' 'intends,' 'plans,' 'estimates,' 'assumes,' 'may,' 'should,' 'will,' 'seeks,' or other similar expressions. Such statements may include, but are not limited to, statements regarding the Company's intent to restate certain historical financial statements and the timing and impact of the Restatement and the filing of the Form 10-K/A. These statements are based on current expectations on the date of this Form 8-K and involve a number of risks and uncertainties that may cause actual results to differ significantly. The Company does not assume any obligation to update or revise any such forward-looking statements, whether as the result of new developments or otherwise. Readers are cautioned not to put undue reliance on forward-looking statements.