On December 19, 2023, Envoy disclosed in a filing with the U.S. Securities and Exchange Commission that “[o]n December 14, 2023, the audit committee (the ‘Audit Committee’) of the board of directors of Envoy … 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, 2023 (the ‘Previous Financial Statements’ and such period, the ‘Affected Period’), should no longer be relied upon.”

Envoy stated that “[t]he determination relates to the Company’s interpretation of the accounting guidance applicable to the forward purchase agreement, dated April 17, 2023, by and among the Company, Envoy Medical Corporation, Meteora Special Opportunity Fund I, LP, Meteora Capital Partners, LP, Meteora Select Trading Opportunities Master, LP and Meteora Strategic Capital, LLC (as amended to date, the ‘FPA’). The Company expects to restate the accounting treatment of the FPA for the Affected Period to reclassify the prepayment amount [.]” Envoy further stated “that the error above is consistent with the Company’s existing material weaknesses in internal control over financial reporting as of September 30, 2023, as previously disclosed in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023.”

On this news, Envoy’s stock price fell $0.27 per share, or 10%, to close at $2.25 per share on December 20, 2023.