Restatement of Previously Issued Financial Statement | Note 2— Restatement of Previously Issued Financial Statement The Company concluded it should restate its previously issued financial statements to classify all Class A ordinary shares subject to possible redemption in temporary equity. In accordance with guidance on redeemable equity instruments in ASC Topic 480-10-S99, redemption provisions not solely within the control of the Company, require ordinary shares subject to redemption to be classified outside of permanent equity. The Company had previously classified a portion of its Class A ordinary shares in permanent equity. Although the Company did not specify a maximum redemption threshold, its charter currently provides that the Company will not redeem its Public Shares in an amount that would cause its net tangible assets to be less than $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these condensed financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. In connection with the change in presentation for the Class A ordinary shares subject to possible redemption, the Company has revised its earnings per share calculation to allocate income and losses shared pro rata between the two classes of shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of shares participate pro rata in the income and losses of the Company. In accordance with SEC Staff Accounting Bulletin No. 99, “Materiality,” and SEC Staff Accounting Bulletin No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements,” the Company evaluated the corrections and has determined that the related impact was material to the previously filed financial statements that contained the error, reported in the Company’s Form 10-Qs for the quarterly periods ended March 31, 2021, and June 30, 2021 (the “Affected Quarterly Periods”). Therefore, the Company, in consultation with its Audit Committee, concluded that the Affected Quarterly Periods should be restated to present all Class A ordinary shares subject to possible redemption as temporary equity and to recognize accretion from the initial book value to redemption value at the time of its Initial Public Offering. As such, the Company is reporting these restatements to those periods in this quarterly report. The impact of the restatement on the financial statements for the Affected Quarterly Periods is presented below. The change in the carrying value of the redeemable Class A ordinary shares at March 31, 2021 resulted in a reclassification of approximately 3.6 million Class A ordinary shares from permanent equity to temporary equity. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of March 31, 2021. As Previously As of March 31, 2021 (unaudited) Reported Adjustment As Restated Total assets $ 234,164,226 $ — $ 234,164,226 Total liabilities $ 32,769,082 $ — $ 32,769,082 Class A ordinary shares subject to possible redemption 196,395,143 35,904,857 232,300,000 Preference shares — — — Class A ordinary shares 355 (355) — Class B ordinary shares 575 — 575 Additional paid-in-capital 9,235,826 (9,235,826) — Accumulated deficit (4,236,755) (26,668,676) (30,905,431) Total shareholders’ equity (deficit) $ 5,000,001 $ (35,904,857) $ (30,304,856) Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Equity (Deficit) $ 234,164,226 $ — $ 234,164,226 The Company’s statement of shareholders’ equity has been restated to reflect the changes to the impacted shareholders’ equity accounts described above. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the three months ended March 31, 2021. For the three months ended March 31, 2021 (unaudited) As Previously Reported Adjustment As Restated Supplemental Disclosure of Noncash Financing Activities: Change in value of Class A ordinary shares subject to possible redemption $ (8,734,582) $ 8,734,582 $ — The change in the carrying value of the redeemable Class A ordinary shares at June 30, 2021 resulted in a reclassification of approximately 4.0 million Class A ordinary shares from permanent equity to temporary equity. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of June 30, 2021. As Previously As of June 30, 2021 (unaudited) Reported Adjustment As Restated Total assets $ 233,801,679 $ 233,801,679 Total liabilities $ 36,839,721 $ 36,839,721 Class A ordinary shares subject to possible redemption 196,961,950 40,338,050 232,300,000 Preference shares — — — Class A ordinary shares 399 (399) — Class B ordinary shares 575 — 575 Additional paid-in-capital 13,668,974 (13,668,974) — Accumulated deficit (8,669,940) (26,668,677) (35,338,617) Total shareholders’ equity (deficit) $ 5,000,008 $ (40,338,050) $ (35,338,042) Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders' Equity (Deficit) $ 233,801,679 $ — $ 233,801,679 The Company’s statement of shareholders’ equity has been restated to reflect the changes to the impacted shareholders’ equity accounts described above. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the six months ended June 30, 2021. For the six months ended June 30, 2021 (unaudited) As Previously Reported Adjustment As Restated Supplemental Disclosure of Noncash Financing Activities: Change in value of Class A ordinary shares subject to possible redemption $ 4,276,476 $ (4,276,476) $ — The impact to the reported amounts of weighted average shares outstanding and basic and diluted earnings per share is presented below for the Affected Quarterly Periods. Earnings Per Share for Class A ordinary shares As Previously Reported Adjustment As Restated For the three months ended March 31, 2021 (unaudited) Net income $ 8,734,669 $ — $ 8,734,669 Weighted average shares outstanding - basic and diluted 23,000,000 — 232,300,000 Basic and diluted earnings per share $ — $ 0.30 $ 0.300 For the three months ended June 30, 2021 (unaudited) Net loss $ (4,433,185) $ — $ (4,433,185) Weighted average shares outstanding - basic and diluted 23,000,000 — 23,000,000 Basic and diluted earnings per share $ — $ (0.15) $ (0.15) For the six months ended June 30, 2021 (unaudited) Net income $ 4,301,484 $ — $ 4,301,484 Weighted average shares outstanding - basic and diluted 23,000,000 — 23,000,000 Basic and diluted earnings per share $ — $ 0.15 $ 0.15 Earnings Per Share for Class B ordinary shares As Previously Reported Adjustment As Restated For the three months ended March 31, 2021 (unaudited) Net income $ 8,734,669 $ — $ 8,734,669 Weighted average shares outstanding - basic and diluted 5,750,000 — 5,750,000 Basic and diluted earnings per share $ 1.52 $ (1.22) $ 0.30 For the three months ended June 30, 2021 (unaudited) Net loss $ (4,433,185) $ — $ (4,433,185) Weighted average shares outstanding - basic and diluted 5,750,000 — 5,750,000 Basic and diluted earnings per share $ (0.77) $ 0.62 $ (0.15) For the six months ended June 30, 2021 (unaudited) Net income $ 4,301,484 $ — $ 4,301,484 Weighted average shares outstanding - basic and diluted 5,750,000 — 5,750,000 Basic and diluted earnings per share $ 0.75 $ (0.60) $ 0.15 |