RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS In connection with the preparation of the Company’s condensed financial statements as of and for the period ended September 30, 2023, management identified an error in its previously filed Quarterly Reports on Form 10-Q for the periods ended March 31, 2023 and June 30, 2023 (the “Affected Quarterly Periods”). The Company determined that based on its review of its accounting treatment for Public and Private Placement Warrants (together, the “Warrants”) under ASC 815, as a result of the redemptions that occurred on January 24, 2023 in connection with the Company’s extraordinary general meeting to extend the date by which it must consummate an initial business combination, its accounting for the Warrants was incorrectly presented as part of equity and the Warrants should be instead presented as liabilities, with changes in value of such liabilities reported in earnings. The Company’s management determined that such redemptions resulted in the possibility for the tender offer provision contained in Section 4.4 of the warrant agreement, dated as of January 7, 2021, between the Company and Continental Stock Transfer & Trust Company (the “Warrant Agreement”), to be triggered without the requirement that a change in control also be triggered, which resulted in the determination that the Warrants no longer qualify for equity treatment. 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 changes and has determined that the related impact was material to previously presented financial statements and related omitted disclosures of the Affected Quarterly Periods. Therefore, the Company concluded that the Affected Quarterly Periods should be restated. As such, the Company is reporting these restatements to the Affected Quarterly Period in this Quarterly Report on Form 10-Q. The previously presented Affected Quarterly Periods should no longer be relied upon. The impact of the restatement on the Company’s unaudited condensed financial statements are reflected in the following tables: As Previously Adjustment As Restated Condensed Balance Sheet as of March 31, 2023 (unaudited) Warrant Liability $ — $ 1,440,000 $ 1,440,000 Total Liabilities $ 2,308,157 $ 1,440,000 $ 3,748,157 Accumulated deficit $ (2,113,505 ) $ (1,440,000 ) $ (3,553,505 ) Total Shareholders’ Deficit $ (2,112,692 ) $ (1,440,000 ) $ (3,552,692 ) Condensed Statement of Operations for the three months ended March 31, 2023 (unaudited) Change in fair value of warrant liability $ — $ 320,000 $ 320,000 Total other income (expense) $ 1,025,595 $ (320,000 ) $ 705,595 Net Income (loss) $ (160,390 ) $ (320,000 ) $ (480,390 ) Basic and diluted net loss per share, Class A ordinary shares $ (0.01 ) $ (0.02 ) $ (0.03 ) Basic and diluted net loss per share, Class B ordinary shares $ (0.01 ) $ (0.02 ) $ (0.03 ) Condensed Statement of Equity for the three months ended March 31, 2023 (unaudited) Net Income (loss) $ (160,390 ) $ (320,000 ) $ (480,390 ) Initial Classification of Warrant Liability $ — $ 1,120,000 $ 1,120,000 Accumulated deficit $ (2,113,505 ) $ (1,440,000 ) $ (3,553,505 ) Condensed Statement of Cash Flows for the three months ended March 31, 2023 (unaudited) Net Income (loss) $ (160,390 ) $ (320,000 ) $ (480,390 ) Change in fair value of warrant liability $ — $ 320,000 $ 320,000 Non-cash investing and financing activities: Initial classification of warrant liability $ — $ 1,120,000 $ 1,120,000 As Previously Adjustment As Restated Condensed Balance Sheet as of June 30, 2023 (unaudited) Warrant Liability $ — $ 1,920,000 $ 1,920,000 Total Liabilities $ 5,916,032 $ 1,920,000 $ 7,836,032 Accumulated deficit $ (5,768,759 ) $ (1,920,000 ) $ (7,688,759 ) Total Shareholders’ deficit $ (5,767,946 ) $ (1,920,000 ) $ (7,687,946 ) Condensed Statement of Operations for the three months ended June 30, 2023 (unaudited) Change in fair value of warrant liability $ — $ 480,000 $ 480,000 Total other income (expense) $ 273,447 $ (480,000 ) $ (206,553 ) Net Income (loss) $ (3,381,807 ) $ (480,000 ) $ (3,861,807 ) Basic and diluted net loss per share, Class A ordinary shares $ (0.33 ) $ (0.04 ) $ (0.37 ) Basic and diluted net loss per share, Class B ordinary shares $ (0.33 ) $ (0.04 ) $ (0.37 ) Condensed Statement of Operations for the six months ended June 30, 2023 (unaudited) Change in fair value of warrant liability $ — $ 800,000 $ 800,000 Total other income (expense) $ 1,299,042 $ (800,000 ) $ 499,042 Net Income (loss) $ (3,542,197 ) $ (800,000 ) $ (4,342,197 ) Basic and diluted net loss per share, Class A ordinary shares $ (0.25 ) $ (0.05 ) $ (0.30 ) Basic and diluted net loss per share, Class B ordinary shares $ (0.25 ) $ (0.05 ) $ (0.30 ) Condensed Statement of Equity for the three months ended June 30, 2023 (unaudited) Net Income (loss) $ (3,381,807 ) $ (480,000 ) $ (3,861,807 ) Accumulated deficit $ (5,768,759 ) $ (1,920,000 ) $ (7,688,759 ) Condensed Statement of Cash Flows for the six months ended June 30, 2023 (unaudited) Net Income (loss) $ (3,542,197 ) $ (800,000 ) $ (4,342,197 ) Change in fair value of warrant liability $ — $ 800,000 $ 800,000 Non-cash investing and financing activities: Initial classification of warrant liability $ — $ 1,120,000 $ 1,120,000 The following table presents information about the Company’s liabilities that are measured at fair value on a recurring basis at March 30, 2023 and June 30, 2023 indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value: Description Level March 30, June 30, Liabilities: Warrant Liabilities – Public Warrants 1 $ 975,000 $ 1,300,000 Warrant Liabilities – Private Warrants 2 $ 465,000 $ 620,000 Bifurcated Derivative 3 $ — — The Public Warrants are actively trading in the open market, as such they are classified as Level 1 due to the use of an observable market quote in an active market under the ticker PRSRW. The Private Placement Warrants are classified as Level 2 due to the use of an observable market quote for a similar asset in an active market. |