Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related
Audit Report or Completed Interim Review.
On March 28, 2023, management and the audit committee (the "Audit Committee") of
the board of directors of Anzu Special Acquisition Corp I (the "Company")
concluded that the Company's previously issued unaudited interim financial
statements included in the Company's Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2022 (the "Q3 Form 10-Q" and such period,
the "Affected Period"), should no longer be relied upon due to a
reclassification of the extinguishment of a contingent liability and resulting
restatement of the Company's statements of operations, statements of changes in
stockholders' deficit and statements of cash flows for the Affected Period. The
Company had recognized a liability upon closing of its initial public offering
in March 2021 for a portion of the underwriters' commissions which was
contingently payable upon closing of a future business combination, with the
offsetting entry resulting in an initial discount to the securities sold in the
Company's initial public offering. One of the underwriters waived all claims to
this deferred commission in September 2022. The Company recognized the waiver as
an extinguishment, with a resulting non-operating gain recognized in its
statement of operations for the three and nine months ended September 30, 2022.
Upon subsequent review and analysis, management concluded that the Company
should have recognized the extinguishment of the contingent liability as a
credit to stockholders' deficit.
As such, the Company will restate the affected financial statements for the
Affected Period in the forthcoming Annual Report on Form 10-K for the year ended
December 31, 2022.
The Company does not expect any of the above changes will have any impact on its
cash position and cash held in the trust account established in connection with
the initial public offering (the "Trust Account").
The Company's management has concluded that in light of the classification error
described above, a material weakness exists in the Company's internal control
over financial reporting and that the Company's disclosure controls and
procedures were not effective as of December 31, 2022.
The Company's management and the Audit Committee have discussed the matters
disclosed in this Current Report on Form 8-K with WithumSmith+Brown, PC, the
Company's independent registered accounting firm.
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 U.S. 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 cash position and cash held in its Trust
Account. 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.
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