Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
In light of recent comments issued by the U.S. Securities and Exchange
Commission (the "SEC"), the management of Bite Acquisition Corp (the "Company")
has re-evaluated the Company's application of ASC 480-10-S99-3A to its
accounting classification of its redeemable shares of common stock, par value
$0.0001 per share (the "Public Shares"), issued as part of the units sold in the
Company's initial public offering (the "IPO") in February 2021. Historically, a
portion of the Public Shares was classified as permanent equity to maintain net
tangible assets greater than $5,000,000 on the basis that the Company will
consummate its initial business combination only if the Company has net tangible
assets of at least $5,000,001. Pursuant to such re-evaluation, the Company's
management has determined that the Public Shares include certain provisions that
require classification of the Public Shares as temporary equity regardless of
the minimum net tangible assets required to complete the Company's initial
business combination.
As a result of the foregoing, on November 18, 2021, the audit committee of the
Company's board of directors concluded, after discussion with the Company's
management, that the Company's previously issued (i) audited balance sheet as of
February 17, 2021, included in the Company's Current Report on Form 8-K filed
with the SEC on February 23, 2021, (ii) unaudited interim financial statements
included in the Company's Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 2021, filed with the SEC on June 9, 2021, and (iii) unaudited
interim financial statements included in the Company's Quarterly Report on Form
10-Q for the quarterly period ended June 30, 2021, filed with the SEC on August
24, 2021 (collectively, the "Affected Periods"), should be restated to report
all Public Shares as temporary equity and should no longer be relied upon. As
such, the Company is restating its financial statements for the Affected Periods
and intends to include a footnote in its Quarterly Report on Form 10-Q for the
quarter ended September 30, 2021 (the "Q3 Form 10-Q"), reflecting the
restatement for the Affected Periods.
The Company does not expect any of the above changes will have any impact on the
amounts previously reported for its cash and cash equivalents or total assets.
The Company's Chief Executive Officer and Chief Financial Officer conducted an
evaluation of the effectiveness of the design and operation of the Company's
disclosure controls and procedures as of the end of the fiscal quarter ended
September 30, 2021. Based on this evaluation, the Company's Chief Executive
Officer and Chief Financial Officer have concluded that as of September 30,
2021, solely due to the events that led to the Company's restatement of its
financial statements to reclassify all redeemable equity instruments to
temporary equity from permanent equity, a material weakness existed and the
Company's disclosure controls and procedures were not effective. The Company's
remediation plan with respect to such material weakness will be described in
more detail in the Q3 Form 10-Q.
The Company has discussed the matters disclosed in this Current Report on Form
8-K with its independent registered public accounting firm, Marcum LLP.
© Edgar Online, source Glimpses