RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS In connection with extending the Company’s Original Termination Date to the Extended Date, the Company deposited $720,000 into the Trust Account on March 23, 2022. The $720,000 deposited into the Trust Account is intended to be available for redeeming shareholders who redeem their Public Shares at the closing of a Business Combination. The Company did not remeasure the common stock subject to possible redemption to include the $720,000 in its financial statements as of and for the three months ended March 31, 2022 and recorded the common stock subject to redemption at its original redemption value of approximately $10.10. The Company is restating its unaudited condensed consolidated financial statements as of and for the three months ended March 31, 2022 to adjust the balance of the common stock subject to possible redemption within temporary equity. The reclassification of amounts from permanent equity to temporary equity resulted in non -cash The following tables summarize the effect of the restatement on each financial statement line item as of the dates, and for the periods, indicated: As Adjustments As Restated Condensed Consolidated Balance Sheet as of March 31, 2022 Common stock subject to possible redemption $ 50,832,028 $ 698,653 $ 51,530,681 Additional paid-in capital $ 157,140 $ (157,140 ) $ — Accumulated deficit $ (14,688,750 ) $ (541,513 ) $ (15,230,263 ) Total Stockholders’ Deficit $ (14,531,107 ) $ (698,653 ) $ (15,229,760 ) Condensed Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2022 Remeasurement of common stock subject to possible redemption to redemption amount $ 21,347 $ 698,653 $ 720,000 Condensed Consolidated Statement of Changes in Stockholders’ Deficit for the Three Months Ended March 31, 2022 Additional paid-in capital – Remeasurement of common stock subject to possible redemption to redemption amount $ — $ (157,140 ) $ (157,140 ) Accumulated deficit – Remeasurement of common stock subject to possible redemption to redemption amount $ (21,347 ) $ (541,513 ) $ (562,860 ) Additional paid-in capital – March 31, 2022 $ 157,140 $ (157,140 ) $ — Accumulated deficit – March 31, 2022 $ (14,688,750 ) $ (541,513 ) $ (15,230,263 ) Total stockholders’ deficit – March 31, 2022 $ (14,531,107 ) $ (698,653 ) $ (15,229,760 ) | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS In connection with the preparation for the audit of the Company’s financial statements for the fiscal year ended December 31, 2021, management identified certain transactions the Company had not been accounting for properly. Those transactions consist of the following • -based The Company has since determined that the transfer of the Founder Shares to the Additional Transferee constitutes a stock award of the Company granted to a member of the board of directors on April 30, 2021 as compensation for the Additional Transferee’s services as a member of the board of directors. This award is subject to ASC Topic 718, Compensation — Stock Compensation (“ASC 718”). The Founder Shares vested immediately, and, as such, in accordance with ASC 718, the Company must recognize compensation expense in an amount equal to the number of Founders Shares transferred times the grant date fair value per share less the amount initially received for the purchase of the Founders Shares. • • • The aforementioned adjustments result in non -cash The following tables summarize the effect of the adjustments on each financial statement line item as of the dates, and for the periods, indicated: March 31, 2021 As Previously Reported Adjustments As Restated Condensed Balance Sheet (unaudited) Accrued costs and expenses $ 53,341 $ 53,443 $ 106,784 Due to related party $ 55,806 $ (39,555 ) $ 16,251 Total current liabilities $ 109,147 $ 13,888 $ 123,035 Total liabilities $ 14,018,585 $ 13,888 $ 14,032,473 Accumulated deficit $ (12,051,955 ) $ (13,888 ) $ (12,065,843 ) Total stockholders’ deficit $ (12,051,452 ) $ (13,888 ) $ (12,065,340 ) March 31, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Operations for the Three Months Ended March 31, 2021 (unaudited) Formation and operating costs $ 321,433 $ 13,888 $ 335,321 Loss from operations $ (321,433 ) $ (13,888 ) $ (335,321 ) Net income $ 3,581,333 $ (13,888 ) $ 3,567,445 Basic and diluted net income per share – redeemable common stock $ 0.15 $ — $ 0.15 Basic and diluted net income per share – nonredeemable common stock $ 0.15 $ — $ 0.15 March 31, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Changes in Stockholders’ Deficit for the Three Months Ended March 31, 2021 (unaudited) Net income $ 3,581,333 $ (13,888 ) $ 3,567,445 Accumulated deficit $ (12,051,955 ) $ (13,888 ) $ (12,065,843 ) Total stockholders’ deficit $ (12,051,452 ) $ (13,888 ) $ (12,065,340 ) March 31, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Cash Flows for the Three Months Ended March 31, 2021 (unaudited) Net income $ 3,581,333 $ (13,888 ) $ 3,567,445 Condensed Statement of Cash Flows for the Three Months Ended March 31, 2021 (unaudited) Changes in operating assets and liabilities Accrued costs and expenses $ (930,700 ) $ 53,443 $ (877,257 ) Due to related party $ 50,000 $ (39,555 ) $ 10,445 June 30, 2021 As Previously Reported Adjustments As Restated Condensed Balance Sheet (unaudited) Accrued costs and expenses $ 75,767 $ 1,411,278 $ 1,487,045 Due to related party $ 115,806 $ (99,661 ) $ 16,145 Total current liabilities $ 191,573 $ 1,311,617 $ 1,503,190 Total liabilities $ 13,867,138 $ 1,311,617 $ 15,178,755 Additional paid-in capital $ — $ 157,140 $ 157,140 Accumulated deficit $ (12,461,107 ) $ (1,468,757 ) $ (13,929,864 ) Total stockholders’ deficit $ (12,460,604 ) $ (1,311,617 ) $ (13,772,221 ) June 30, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Operations for the Three Months Ended June 30, 2021 (unaudited) Formation and operating costs $ 648,124 $ 1,297,729 $ 1,945,853 Stock compensation expense $ — $ 157,140 $ 157,140 Loss from operations $ (648,124 ) $ (1,454,869 ) $ (2,102,993 ) Net loss $ (409,152 ) $ (1,454,869 ) $ (1,864,021 ) Basic and diluted net income per share – redeemable common stock $ (0.02 ) $ (0.06 ) $ (0.08 ) Basic and diluted net income per share – nonredeemable common stock $ (0.02 ) $ (0.06 ) $ (0.08 ) Condensed Statement of Operations for the Six Months Ended June 30, 2021 (unaudited) Formation and operating costs $ 969,557 $ 1,311,617 $ 2,281,174 Stock compensation expense $ — $ 157,140 $ 157,140 Loss from operations $ (969,557 ) $ (1,468,757 ) $ (2,438,314 ) Net income $ 3,172,181 $ (1,468,757 ) $ 1,703,424 Basic and diluted net income per share – redeemable common stock $ 0.13 $ (0.06 ) $ 0.07 Basic and diluted net income per share – nonredeemable common stock $ 0.13 $ (0.06 ) $ 0.07 June 30, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Changes in Stockholders’ Deficit for the Three Months Ended June 30, 2021 (unaudited) Stock compensation expense $ — $ 157,140 $ 157,140 Net loss $ (409,152 ) $ (1,454,869 ) $ (1,864,021 ) Additional paid-in capital $ — $ 157,140 $ 157,140 Accumulated deficit $ (12,461,107 ) $ (1,468,757 ) $ (13,929,864 ) Total stockholders’ deficit $ (12,460,604 ) $ (1,311,617 ) $ (13,772,221 ) Condensed Statement of Changes in Stockholders’ Deficit for the Six Months Ended June 30, 2021 (unaudited) Stock compensation expense $ — $ 157,140 $ 157,140 Net income $ 3,172,181 $ (1,468,757 ) $ 1,703,424 Additional paid-in capital $ — $ 157,140 $ 157,140 Accumulated deficit $ (12,461,107 ) $ (1,468,757 ) $ (13,929,864 ) Total stockholders’ deficit $ (12,460,604 ) $ (1,311,617 ) $ (13,772,221 ) June 30, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Cash Flows for the Six Months Ended June 30, 2021 (unaudited) Net income $ 3,172,181 $ (1,468,757 ) $ 1,703,424 Condensed Statement of Cash Flows for the Six Months Ended June 30, 2021 (unaudited) Adjustments to reconcile net income to net cash used in operating activities: Stock compensation expense $ — $ 157,140 $ 157,140 Condensed Statement of Cash Flows for the Six Months Ended June 30, 2021 (unaudited) Changes in operating assets and liabilities Accrued costs and expenses $ (908,274 ) $ 1,411,278 $ 503,004 Due to related party $ 110,000 $ (99,661 ) $ 10,339 September 30, 2021 As Previously Reported Adjustments As Restated Condensed Balance Sheet (unaudited) Due from related party $ — $ 15,000 $ 15,000 Total current assets $ 771,390 $ 15,000 $ 786,390 Total assets $ 204,049,255 $ 15,000 $ 204,064,255 Accrued costs and expenses $ 179,527 $ 1,375,970 $ 1,555,497 Due to related party $ 175,806 $ (159,419 ) $ 16,387 Total current liabilities $ 355,333 $ 1,216,551 $ 1,571,884 Total liabilities $ 12,071,810 $ 1,216,551 $ 13,288,361 Additional paid-in capital $ — $ 157,140 $ 157,140 Accumulated deficit $ (11,285,558 ) $ (1,358,691 ) $ (12,644,249 ) Total stockholders’ deficit $ (11,285,055 ) $ (1,201,551 ) $ (12,486,606 ) Total liabilities and stockholders’ deficit $ 204,049,255 $ 15,000 $ 204,064,255 September 30, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Operations for the Three Months Ended September 30, 2021 (unaudited) Formation and operating costs $ 788,688 $ (110,066 ) $ 678,622 Loss from operations $ (788,688 ) $ 110,066 $ (678,622 ) Net income $ 1,175,549 $ 110,066 $ 1,285,615 Basic and diluted net income per share – redeemable common stock $ 0.05 $ — $ 0.05 Basic and diluted net income per share – nonredeemable common stock $ 0.05 $ — $ 0.05 Condensed Statement of Operations for the Nine Months Ended September 30, 2021 (unaudited) Formation and operating costs $ 1,758,245 $ 1,201,551 $ 2,959,796 Stock compensation expense $ — $ 157,140 $ 157,140 Loss from operations $ (1,758,245 ) $ (1,358,691 ) $ (3,116,936 ) Net income $ 4,347,730 $ (1,358,691 ) $ 2,989,039 Basic and diluted net income per share – redeemable common stock $ 0.18 $ (0.06 ) $ 0.12 Basic and diluted net income per share – nonredeemable common stock $ 0.18 $ (0.06 ) $ 0.12 September 30, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Changes in Stockholders’ Deficit for the Three Months Ended September 30, 2021 (unaudited) Net income $ 1,175,549 $ 110,066 $ 1,285,615 Additional paid-in capital $ — $ 157,140 $ 157,140 Accumulated deficit $ (11,285,558 ) $ (1,358,691 ) $ (12,644,249 ) Total stockholders’ deficit $ (11,285,055 ) $ (1,201,551 ) $ (12,486,606 ) Condensed Statement of Changes in Stockholders’ Deficit for the Nine Months Ended September 30, 2021 (unaudited) Stock compensation expense $ — $ 157,140 $ 157,140 Net income $ 4,347,730 $ (1,358,691 ) $ 2,989,039 Additional paid-in capital $ — $ 157,140 $ 157,140 Accumulated deficit $ (11,285,558 ) $ (1,358,691 ) $ (12,644,249 ) Total stockholders’ deficit $ (11,285,055 ) $ (1,201,551 ) $ (12,486,606 ) September 30, 2021 As Previously Reported Adjustments As Restated Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2021 (unaudited) Net income $ 4,347,730 $ (1,358,691 ) $ 2,989,039 Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2021 (unaudited) Adjustments to reconcile net income to net cash used in operating activities: Stock compensation expense $ — $ 157,140 $ 157,140 Condensed Statement of Cash Flows for the Nine Months Ended September 30, 2021 (unaudited) Changes in operating assets and liabilities Due from related party $ — $ (15,000 ) $ (15,000 ) Accrued costs and expenses $ (778,765 ) $ 1,375,970 $ 597,205 Due to related party $ 170,000 $ (159,419 ) $ 10,581 |