Restatement of Previously Issued Financial Statements | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The Company previously accounted for its outstanding Public Warrants (as defined in Note 4) and Private Placement Warrants (collectively, with the Public Warrants, the “Warrants”) issued in connection with its Initial Public Offering as components of equity instead of as derivative liabilities. The warrant agreement governing the Warrants includes a provision that provides for potential changes to the settlement amounts dependent upon the characteristics of the holder of the warrant. In addition, the warrant agreement includes a provision that in the event of a tender offer or exchange offer made to and accepted by holders of more than 50% of the outstanding shares of a single class of stock, all holders of the Warrants would be entitled to receive cash for their Warrants (the “tender offer provision”). On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the Securities and Exchange Commission together issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Statement”). Specifically, the SEC Statement focused on certain settlement terms and provisions related to certain tender offers following a business combination, which terms are similar to those contained in the warrant agreement. In further consideration of the SEC Statement, the Company’s management further evaluated the Warrants under Accounting Standards Codification (“ASC”) Subtopic 815-40, Contracts in Entity’s Own Equity. ASC Section 815-40-15 addresses equity versus liability treatment and classification of equity-linked financial instruments, including warrants, and states that a warrant may be classified as a component of equity only if, among other things, the warrant is indexed to the issuer’s common stock. Under ASC Section 815-40-15, a warrant is not indexed to the issuer’s common stock if the terms of the warrant require an adjustment to the exercise price upon a specified event and that event is not an input to the fair value of the warrant. Based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the Company’s Private Placement Warrants are not indexed to the Company’s common stock in the manner contemplated by ASC Section 815-40-15 because the holder of the instrument is not an input into the pricing of a fixed-for-fixed option on equity shares. In addition, based on management’s evaluation, the Company’s audit committee, in consultation with management, concluded that the tender offer provision fails the “classified in stockholders’ equity” criteria as contemplated by ASC Section 815-40-25. As a result of the above, the Company should have classified the Warrants as derivative liabilities in its previously issued financial statements. Under this accounting treatment, the Company is required to measure the fair value of the Warrants at the end of each reporting period and recognize changes in the fair value from the prior period in the Company’s operating results for the current period. The Company’s accounting for the Warrants as components of equity instead of as derivative liabilities did not have any effect on the Company’s previously reported investments held in trust, operating expenses or cash. The table below summarizes the effects of the restatement on the financial statements for all periods being restated: As Previously As Reported Adjustments Restated Balance sheet as of July 27, 2020 (audited) Warrant Liability $ — $ 19,550,000 $ 19,550,000 Forward purchase agreement liability — 1,000,000 1,000,000 Class A Common Stock Subject to Possible Redemption 285,659,360 59,340,640 345,000,000 Class A Common Stock 143 (143 ) — Additional Paid-in Capital 4,999,463 (4,975,326 ) 24,137 Accumulated Deficit (468 ) (74,915,171 ) (74,915,639 ) Number of Class A common stock subject to possible redemption 28,565,936 5,934,064 34,500,000 Balance sheet as of September 30, 2020 (unaudited) Warrant Liability $ — $ 16,736,000 $ 16,736,000 Forward purchase agreement liability — 550,000 550,000 Class A Common Stock Subject to Possible Redemption 328,955,750 16,044,250 345,000,000 Class A Common Stock 160 (160 ) — Additional Paid-in Capital 5,128,056 (5,103,919 ) 24,137 Accumulated Deficit (129,076 ) (28,226,171 ) (28,355,247 ) Number of Class A common stock subject to possible redemption 32,895,575 1,604,425 34,500,000 Balance sheet as of December 31, 2020 (audited) Warrant Liability $ — $ 29,811,000 $ 29,811,000 Forward purchase agreement liability — 2,900,000 2,900,000 Class A Common Stock Subject to Possible Redemption 328,634,220 16,365,780 345,000,000 Class A Common Stock 164 (164 ) — Additional Paid-in Capital 5,449,582 5,425,445 24,137 Accumulated Deficit (450,605 ) (43,651,171 ) (44,101,776 ) Number of Class A common stock subject to possible redemption 32,863,422 1,636,578 34,500,000 Statement of Operations for period from May 22, 2020 (inception) to September 30, 2020 (unaudited) Change in fair value of warrant liability $ — $ 5,491,500 $ 5,491,500 Change in fair value of forward purchase agreement liability $ — $ 450,000 $ 450,000 Transaction costs allocable to warrants $ — $ (861,354 ) $ (861,354 ) Net income (loss) $ (129,076 ) $ 5,080,146 $ 4,951,070 Weighted average shares outstanding of Class A redeemable common stock 30,971,013 1,521,295 32,492,308 Basic and diluted net income per share, Class A redeemable common stock $ 0.00 — $ 0.00 Weighted average shares outstanding of non-redeemable common stock 8,564,001 (754,841 ) 7,809,160 Basic and diluted net (loss) income per share, non-redeemable common stock $ (0.02 ) 0.65 $ 0.63 Statement of Operations for period from May 22, 2020 (inception) to December 31, 2020 (audited) Change in fair value of warrant liability $ — $ (7,583,500 ) $ (7,583,500 ) Change in fair value of forward purchase agreement liability $ — $ (1,900,000 ) $ (1,900,000 ) Transaction costs allocable to warrants $ — $ (861,354 ) $ (861,354 ) Net loss $ (450,605 ) $ (10,344,854 ) $ (10,795,459 ) Weighted average shares outstanding of Class A redeemable common stock 32,098,782 1,570,008 33,668,790 Basic and diluted net income per share, Class A redeemable common stock $ 0.00 — $ 0.00 Weighted average shares outstanding of non-redeemable common stock 9,251,082 (1,105,342 ) 8,145,740 Basic and diluted net loss per share, non-redeemable common stock $ (0.05 ) (1.28 ) $ (1.33 ) Statement of Cash Flows for period from May 22, 2020 (inception) to September 30, 2020 (unaudited) Change in fair value of warrant liability $ — $ (5,491,500 ) $ (5,491,500 ) Change in fair value of forward purchase agreement liability — (450,000 ) (450,000 ) Transaction costs allocable to warrants — 861,354 861,354 Net income (loss) (129,076 ) 4,080,146 4,951,070 Initial classification of Class A common stock subject to possible redemption 329,084,360 15,915,640 345,000,000 Change in value of common stock subject to possible redemption (128,610 ) 128,610 — Statement of Cash Flows for period from May 22, 2020 (inception) to December 31, 2020 (audited) Change in fair value of warrant liability $ — $ 7,583,500 $ 7,583,500 Change in fair value of forward purchase agreement liability — 1,900,000 1,900,000 Transaction costs allocable to warrants — 861,354 861,354 Net loss (450,605 ) (10,344,854 ) (10,795,459 ) Initial classification of Class A common stock subject to possible redemption 329,084,360 15,915,640 345,000,000 Change in value of common stock subject to possible redemption (450,140 ) 450,140 — |