Item 4.02.
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Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
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On April 12, 2021, the staff of the Securities
and Exchange Commission (the “SEC”) issued a statement pertaining to Special Purpose Acquisition Companies (“SPACs”)
entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies”
(the “SEC Statement”). In the SEC Statement, the SEC staff expressed its view that certain terms and conditions common to
SPAC warrants may require the warrants to be classified as liabilities on the SPAC’s balance sheet as opposed to equity. Since issuance
on August 31, 2020, the outstanding warrants (“Warrants”) to purchase Class A ordinary shares of Burgundy Technology Acquisition
Corporation (the “Company”) were accounted for as equity within the Company’s balance sheet. However, as a result of
the SEC Statement, and after discussion and evaluation, including with WithumSmith+Brown, PC, the Company’s independent registered
public accounting firm (the “Independent Accountant”), the Company has concluded that its warrants should be presented as
liabilities with subsequent fair value measurement (for a full description of the private placement warrants and public warrants, refer
to the registration statement on Form S-1 (File No. 333-240243), filed in connection with the Company’s initial public offering,
declared effective by the SEC on August 26, 2020).
In light of the SEC Statement, on May 14,
2021, the Company’s audit committee (the “Audit Committee”) concluded, after discussion with the Company’s
management and the Independent Accountant, that the Company’s audited financial statements for the period from June 4, 2020
(inception) through December 31, 2020 as included in the Company’s Annual Report on Form 10-K filed with the SEC on March 23,
2021 (the “Original 10-K”), its unaudited interim financial statements for the period from June 4, 2020 (inception)
through June 30, 2020 as included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on October 6, 2020, its
unaudited interim financial statements for the period from June 4, 2020 (inception) through September, 2020 and for the three months
ended September 30, 2020 as included in the Company’s Quarterly Report on Form 10-Q filed with the SEC on November 12, 2020
and certain items on its audited balance sheet as of August 31, 2020 included in the Company’s Current Report on Form 8-K
filed with the SEC on September 4, 2020 and unaudited pro forma balance sheet as of August 31, 2020 included in the Company’s
Current Report on Form 8-K filed with the SEC on September 21, 2020 (the “Non-Reliance Periods”), should no longer be
relied upon due to changes required to reclassify the Warrants as liabilities to align with the requirements set forth in the
Statement.
Similarly, press releases, earnings releases,
and investor presentations or other communications describing the Company’s consolidated financial statements and other related
financial information covering the Non-Reliance Periods should no longer be relied upon.
The change in accounting for the warrants did
not have any impact on the Company’s previously reported investments held in trust, operating
expenses, cash flows or cash. The Company will prepare an amendment to the Original 10-K reflecting the reclassification of the
Warrants for the Non-Reliance Periods. While the Company has not generated any operating revenues to date and will not generate any
operating revenues until after completion of its initial business combination, at the earliest, the change in fair value of the Warrants
is a non-cash charge and will be reflected in the Company’s statement of operations. Going forward, unless the Company amends
the terms of the Warrants, it expects to continue to classify the Warrants as liabilities, which would require the Company to incur the
cost of measuring the fair value of the warrant liabilities, and which may have an adverse effect on the Company’s results of operations.
The Audit Committee has discussed the matters
disclosed in this Current Report on Form 8-K pursuant to this Item 4.02 with the Independent Accountants.
Forward-Looking Statements
This Current Report on Form 8-K includes forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). We have based these forward-looking statements on our current expectations and
projections about future events. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions
about us that may cause our actual results, levels of activity, performance or achievements to be materially different from any future
results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. In some cases, you can
identify forward-looking statements by terminology such as “may,” “should,” “could,” “would,”
“expect,” “plan,” “anticipate,” “believe,” “estimate,” “continue,”
or the negative of such terms or other similar expressions. Such statements include, but are not limited to, statements other than statements
of historical fact included in this Current Report on Form 8-K. Factors that might cause or contribute
to such a discrepancy include, but are not limited to, those described in our other SEC filings.