RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 3. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS Background of the Restatement In April 2021, the Company concluded that, because of a misapplication of the accounting guidance related to the Public Warrants (as defined below) and the Private Placement Warrants that the Company issued in August 2020, the Company’s previously issued financial statements for the periods ended September On April Historically, the Company’s warrants were reflected as a component of equity as opposed to liabilities on the balance sheets and the statements of operations did not include the subsequent non -cash -40 -40 -40 Therefore, the Company, in consultation with its Audit Committee, concluded that its previously issued Financial Statements for the periods ended December 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 operating expenses, cash flows or cash. Effects of the Restatement The following tables summarize the effect of the restatement on each financial statement line item as of the dates, and for the period, indicated: As Previously Reported Adjustments As Restated Balance Sheet as of August 7, 2020 Warrant liabilities $ — $ 21,313,333 $ 21,313,333 Total liabilities 9,830,277 21,313,333 31,143,610 Class A common stock subject to possible redemption 262,053,310 (21,313,330 ) 240,739,980 Class A common stock 129 464 593 Additional paid-in capital 5,002,671 746,645 5,749,316 Accumulated deficit (3,581 ) (747,112 ) (750,693 ) Total Stockholders’ Equity 5,000,010 (3 ) 5,000,007 Balance Sheet as of December 31, 2020 Warrant liabilities $ — $ 27,253,333 $ 27,253,333 Total liabilities 10,761,772 27,253,333 38,015,105 Class A common stock subject to possible redemption 285,485,260 (27,253,330 ) 258,231,930 Class A common stock 145 273 418 Additional paid-in capital 5,654,273 6,686,836 12,341,109 Accumulated deficit (655,161 ) (6,687,112 ) (7,342,273 ) Total Stockholders’ Equity 5,000,007 (3 ) 5,000,004 Statement of Operations for the period from June 2, 2020 (Inception) through December 31, 2020 Warrant offering costs $ — $ (747,112 ) $ (747,112 ) Change in fair value of warrant liabilities — (5,940,000 ) (5,940,000 ) Other expense, net 46,957 (6,687,112 ) (6,640,155 ) Loss before provision for income taxes (655,161 ) (6,687,112 ) (7,342,273 ) Net loss (655,161 ) (6,687,117 ) (7,342,273 ) Basic and diluted loss per share, Class B common stock (0.09 ) (0.89 ) (0.98 ) Statement of Cash Flows for the period from June 2, 2020 (Inception) through December 31, 2020 Cash Flows from Operating Activities: Net loss $ (655,161 ) $ (6,687,112 ) $ (7,342,273 ) Adjustments to reconcile net loss to net cash used in operating activities Deferred warrant offering costs — 458,500 458,500 Change in fair value of warrant liabilities — 5,940,000 5,940,000 Net cash used in operating activities (691,869 ) (288,612 ) (980,481 ) Proceeds from sale of Units, net of underwriting discounts paid 294,000,000 262,000 294,262,000 Payment of offering costs (160,614 ) 26,612 (134,002 ) Net cash provided by financing activities 301,682,297 288,612 301,970,909 Non-Cash Investing and Financing Activities: Initial measurement of warrants issued in connection with the Initial Public Offering accounted for as liabilities — 21,313,333 21,313,333 The following tables set forth the effects of the restatement on the affected line items within our previously reported unaudited condensed financial statements. As Previously Reported Adjustments As Restated Condensed Balance Sheet as of September 30, 2020 Warrant liabilities $ — $ 24,546,666 $ 24,546,666 Total liabilities 10,640,289 24,546,666 35,186,955 Class A common stock subject to possible redemption 285,990,770 (24,546,670 ) 261,444,100 Class A common stock 140 246 386 Additional paid-in capital 5,148,768 3,980,203 9,128,971 Accumulated deficit (149,656 ) (3,980,445 ) (4,130,101 ) Total Stockholders’ Equity 5,000,002 4 5,000,006 Condensed Statement of Operations for the period from June 2, 2020 (inception) through September 30, 2020 Warrant offering costs $ — $ (747,112 ) $ (747,112 ) Change in fair value of warrant liabilities — (3,233,333 ) (3,233,333 ) Other expense, net 7,109 (3,980,445 ) (3,973,336 ) Loss before provision for income taxes (149,656 ) (3,980,445 ) (4,130,101 ) Net loss (149,656 ) (3,980,445 ) (4,130,101 ) Basic and diluted loss per share, Class B (0.02 ) (0.53 ) (0.55 ) Condensed Statement of Operations for the three months ended September 30, 2020 Warrant offering costs $ — $ (747,112 ) $ (747,112 ) Change in fair value of warrant liabilities — (3,233,333 ) (3,233,333 ) Other expense, net 7,109 (3,980,445 ) (3,973,336 ) Loss before provision for income taxes (148,287 ) (3,980,445 ) (4,128,732 ) Net loss (148,287 ) (3,980,445 ) (4,128,732 ) Basic and diluted loss per share, Class B (0.02 ) (0.53 ) (0.55 ) Condensed Statement of Cash Flows for the period from June 2, 2020 (inception) through September 30, 2020 Cash Flows from Operating Activities: Net loss $ (149,656 ) $ (3,980,445 ) $ (4,130,101 ) Adjustments to reconcile net loss to net cash used in operating activities: Deferred warrant offering costs — 458,500 458,500 Change in fair value of warrant liabilities — 3,233,333 3,233,333 Net cash used in operating activities (321,572 ) (288,612 ) (610,184 ) Proceeds from sale of Units, net of underwriting discounts paid 294,000,000 262,000 294,262,000 Payment of offering costs (160,614 ) 26,612 (134,002 ) Net cash provided by financing activities 301,682,297 288,612 301,970,909 Non-Cash Investing and Financing Activities: Initial measurement of warrants issued in connection with the Initial Public Offering accounted for as liabilities — 21,313,333 21,313,333 |