Glory Star Restates its 2020 Financial Results
Glory Star New Media Group Holdings Limited (NASDAQ: GSMG) (“Glory Star” or the “Company”), a leading digital media platform and content-driven e-commerce company in China, today announced that in response to a statement released by the U.S. Securities and Exchange Commission dated April 12th, 2021, the Company has restated its previously issued consolidated financial statements for the year ended December 31, 2020 to reflect the change in accounting treatment of the private placement warrants issued by the Company (the “Restatement”).
The impact of the Restatement was an increase in net income of $19.7 million for the year ended December 31, 2020, an increase in total liabilities of $833,000 and a corresponding decrease in total equity of $833,000 as of December 31, 2020. As a result, the Company’s net income increased to $49.0 million from $26.4 million in 2019, representing an increase of 85.4% year over year. The Company’s basic earnings per share increased to $0.91 from $0.64 in 2019, representing an increase of 42.2% year over year. The Restatement had no impact on the Company’s cash and cash equivalents, or cash flows from operating, investing and financing activities. Please refer to the Form 20-F/A (Amendment No.1) at https://www.sec.gov/Archives/edgar/data/1738758/000121390021030062/f20f2020a1_glorystarnewmedia.htm for more detailed information.
Source: Glory Star New Media Group Holdings Limited