Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related


           Audit Report or Completed Interim Review.

On November 18, 2021, the Audit Committee of the Board of Directors (the "Audit Committee") of HealthCor Catalio Acquisition Corporation (the "Company") concluded, in consultation with the Company's management and Marcum LLP ("Marcum"), the Company's independent registered public accounting firm, that the Company's audited balance sheet as of January 29, 2021 filed as Exhibit 99.1 to the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission (the "SEC") on February 4, 2021, and the Company's quarterly unaudited financial statements and related footnotes as of and for the quarterly periods ended March 31, 2021 and June 30, 2021, should no longer be relied upon. In addition, the audit report of Marcum included in the Current Report on Form 8-K filed with the SEC on February 4, 2021 should no longer be relied upon.

In connection with the preparation of the Company's financial statements as of September 30, 2021, the Company concluded it should revise its financial statements to classify all Class A ordinary shares issued in connection with its initial public offering as temporary equity. In accordance with guidance from the U.S. Securities and Exchange Commission and its staff on redeemable equity instruments, ASC 480, paragraph 10-S99, redemption provisions not solely within the control of the Company require ordinary shares subject to redemption to be classified outside of permanent equity. The Company previously determined the Class A ordinary shares subject to possible redemption to be equal to the redemption value of $10.00 per share of Class A ordinary shares while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with the financial statements for the quarter ended September 30, 2021, the Company revised this interpretation to include temporary equity in net tangible assets. Accordingly, the Company will present all shares of redeemable Class A ordinary shares as temporary equity.

The Company plans to reflect the reclassification of its temporary and permanent equity (and other related changes) as of January 29, 2021 and as of and for the quarterly periods ended March 31, 2021 and June 30, 2021 in its upcoming Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2021, to be filed with the SEC. The Company does not expect any of these changes will have any impact on its cash position or cash held in its trust account.


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