A Bermuda-registered company will file restated consolidated financial statements as of, and for the year ended, December 31, 2020, together with amended quarterly financial results for 2020 and 2021.

The move comes after a market statement issued by the Securities and Exchange Commission in April, which the company said does not impact IGI’s financial strength.

The SEC statement on “Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies” highlighted potential accounting implications of certain terms that are common in warrants issued in connection with the initial public offerings of SPACs.

The company said that it intends to file an amended annual report on Form 20-F/A for the year ended December 31, 2020, to reflect the restatement.

Consistent with market practice for SPACs, the IGI warrants were recorded as equity instruments in the company’s consolidated statement of financial position as a result of the business combination with Tiberius Acquisition Corp which closed in March.

But after subsequent meetings with the staff of the SEC, IGI has determined that, given the circumstances of the transaction with Tiberius, the warrants should have been recorded at fair value as liabilities in the company’s consolidated statement of financial position, and not as equity.

IGI has 12.75 million public warrants and 4.5 million private warrants outstanding. No warrants have been exercised or redeemed since originally issued.

The impact of the restatement on the consolidated financial statements will be a decrease to net income of $4.4 million for the year ended December 31, 2020, an increase in total liabilities of $13.6 million as of December 31, 2020, and a corresponding decrease to total equity of $13.6 million as of December 31, 2020.

The company said that the restatement had no impact on liquidity, cash or cash equivalents, or cash flows from operating, investing and financing activities.

IGI chairman and CEO Wasef Jabsheh said: “IGI is one of several hundred US public companies to restate or revise their financial statements as a result of the SEC’s Staff Statement on warrant accounting for SPACs.

“This restatement does not impact the financial strength of IGI. We do not anticipate the restatement to impact our previously communicated core operating income and core operating earnings per share.

“We continue to remain confident in the positive momentum IGI has achieved since we became a public company in 2020.”

The company announced in August a reclassification of its private warrants as a derivative liability instead of equity with the changes recorded in income.

After further analysis and discussion with the SEC, IGI has determined that the public warrants should also be recorded as a derivative liability.

As a result of this restatement, the warrants will be reflected as liabilities at fair value on the company’s consolidated statement of financial position at December 31, 2020, and the change in the fair value of such liabilities in the period is recognised as a gain or loss in the company’s consolidated statements of income.