Bloomberg Tax
April 30, 2021, 9:56 PM

Virgin Galactic, DraftKings Latest SPACs to Report Restatements

Nicola M. White
Nicola M. White

Two of the biggest names in the SPAC world—space tourism company Virgin Galactic Holdings Inc., and online sports betting outfit DraftKings Inc.—announced late Friday they would have to restate past financial statements to fix accounting mistakes.

The companies will restate their annual 2020 financial statements, they announced in securities filings. The restated financials will reflect April 12 guidance from staff at the Securities and Exchange Commission that common money-raising tools in special purpose acquisition company deals should be accounted for as liabilities, not equity. The accounting shift won’t affect revenues or cash flows, the companies said.

  • The SEC ...

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