Business Context and Reporting Period
This Form 8-K was filed by Cartesian Growth Corporation, a Cayman Islands special purpose acquisition company, regarding an accounting classification issue identified on November 12, 2021. The filing is associated with the company’s February 26, 2021 initial public offering and previously reported periods through June 30, 2021. The provided metadata identifies Alti Global, Inc., but the filing text identifies the registrant as Cartesian Growth Corporation.
Financial Reporting and Key Metrics
- The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity amounts.
- Management determined that all Public Shares should have been classified as temporary equity rather than partially classified as permanent equity.
- The company stated that the correction is not expected to affect cash or funds held in the IPO Trust Account.
Material Changes Versus Prior Periods
Management and the audit committee concluded that the previously issued financial statements should no longer be relied upon because of the Public Share classification error. Affected reports include the February 26, 2021 audited balance sheet, the March 31, 2021 interim financial statements, and the June 30, 2021 interim financial statements. The company restated the affected periods in its Form 10-Q for the quarter ended September 30, 2021, filed November 15, 2021.
Guidance, Risks, Contingencies, and Unusual Items
- Management concluded that a material weakness existed in internal control over financial reporting and that disclosure controls and procedures were ineffective.
- The company described a remediation plan in its September 30, 2021 Form 10-Q; details are not included in this filing.
- The accounting treatment was re-evaluated in light of recent SEC comment letters concerning redeemable equity classification under ASC 480-10-S99-3A.
- Forward-looking statements concern the timing and impact of the restatement and the company’s cash and Trust Account balances. Actual results may differ, and the company undertook no obligation to update those statements.
Investor Verification Items
- Verify the detailed restated amounts and balance-sheet presentation in the September 30, 2021 Form 10-Q.
- Review the remediation plan and any subsequent disclosures regarding the material weakness.
- Confirm that cash and Trust Account balances were unaffected by the restatement.
- Assess whether later filings identify additional accounting or internal-control impacts.