Restatement of Previously Reported Financial Statements | Note 2—Restatement of Previously Reported Financial Statements During the preparation of the Company’s unaudited condensed financial statements as of and for quarterly period ended September 30, 2021, the Company concluded it should restate its financial statements to classify all Class A common stock subject to possible redemption in temporary equity and restate its presentation of earnings per share. In accordance with the SEC and its staff’s guidance on redeemable equity instruments, ASC 480, paragraph 10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent equity. The Company had previously classified a portion of its Class A common stock in permanent equity, or total stockholders’ 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. The Company considered that the threshold would not change the nature of the underlying shares as redeemable and thus would be required to be disclosed outside equity. As a result, the Company restated its previously filed financial statements to classify all of its Class A common stock as temporary equity and to recognize accretion from the initial book value to redemption value at the time of its Initial Public Offering and in accordance with ASC 480. In connection with the change in presentation for the Class A common stock subject to possible redemption, the Company restated its earnings per share calculation to allocate income and losses share pro rata between the 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, June 30, 2021, and September 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 common stock 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 and restate its presentation of earnings per share. As such, the Company is reporting these restatements to those periods in this quarterly report. Impact of the Restatement The impact of the restatement on the financial statements for the Affected Quarterly Periods is presented below. There is no impact to the reported amounts for total assets, total liabilities, cash flows, and net income (loss). The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported unaudited condensed balance sheet as of March 31, 2021: As Previously As of March 31, 2021 (unaudited) Reported Adjustment As Restated Total assets $ 277,527,930 $ 1 $ 277,527,931 Total liabilities $ 20,048,696 $ — $ 20,048,696 Class A common stock subject to redemption at $10.00 per share $ 252,479,230 $ 23,520,770 $ 276,000,000 Preferred stock — — — Class A common stock 235 (235) — Class B common stock 487 — 487 Additional paid-in capital 3,563,022 (3,563,022) — Accumulated deficit 1,436,260 (19,957,512) (18,521,252) Total stockholders’ equity (deficit) $ 5,000,004 $ (23,520,769) $ (18,520,765) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 277,527,930 $ 1 $ 277,527,931 Shares of Class A common stock subject to possible redemption 25,247,923 2,352,077 27,600,000 Number of shares of Class A common stock 2,352,077 (2,352,077) — The Company’s statement of changes in stockholders’ equity (deficit) has been restated to reflect the changes to the impacted stockholders’ 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 unaudited condensed statement of cash flows for the three months ended March 31, 2021: Form 10-Q: three months ended March 31, 2021 (unaudited) As Previously Supplemental Disclosure of Noncash Financing Activities Reported Adjustment As Restated Initial value of Class A common stock subject to possible redemption $ 250,569,470 $ (250,569,470) $ — Change in value of Class A common stock subject to possible redemption $ 1,909,760 $ (1,909,760) $ — Accretion to Class A common stock redemption value $ — $ 23,240,692 $ 23,240,692 The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported unaudited condensed balance sheet as of June 30, 2021: As Previously As of June 30, 2021 (unaudited) Reported Adjustment As Restated Total assets $ 277,125,935 $ 1 $ 277,125,936 Total liabilities $ 22,966,934 $ 22,966,934 Class A common stock subject to redemption at $10.00 per share $ 249,159,000 $ 26,841,000 $ 276,000,000 Preferred stock — — — Class A common stock 268 (268) — Class B common stock 487 — 487 Additional paid-in capital 6,883,219 (6,883,219) — Accumulated deficit (1,883,973) (19,957,512) (21,841,485) Total stockholders’ equity (deficit) $ 5,000,001 $ (26,840,998) $ (21,840,998) Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Equity (Deficit) $ 277,125,935 $ 1 $ 277,125,936 Shares of Class A common stock subject to possible redemption 24,915,900 2,684,100 27,600,000 Number of shares of Class A common stock 2,684,100 (2,684,100) — The Company’s statement of changes in stockholders’ equity (deficit) has been restated to reflect the changes to the impacted stockholders’ 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 unaudited condensed statement of cash flows for the six months ended June 30, 2021: Form 10-Q: six months ended June 30, 2021 (unaudited) As Previously Supplemental Disclosure of Noncash Financing Activities Reported Adjustment As Restated Initial value of Class A common stock subject to possible redemption $ 250,569,470 $ (250,569,470) $ — Change in value of Class A common stock subject to possible redemption $ (1,410,470) $ 1,410,470 $ — Accretion to Class A common stock redemption value $ — $ 23,240,692 $ 23,240,692 In connection with the change in presentation for the Class A common stock 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. The impact to the reported amounts of weighted average shares outstanding and basic and diluted earnings per ordinary share is presented below for the Affected Quarterly Periods: Earnings (Loss) Per Share As Previously Reported Adjustment As Restated Form 10-Q (March 31, 2021) - three months ended March 31, 2021 (unaudited) Weighted average shares outstanding - Class A common stock 27,600,000 (4,293,333) 23,306,667 Basic and diluted earnings per share - Class A common stock $ — $ (0.83) $ (0.83) Weighted average shares outstanding - Class B common stock 3,004,444 — 3,004,444 Basic and diluted loss per share - Class B common stock $ 0.48 $ (1.31) $ (0.83) Form 10-Q (June 30, 2021) - three months ended June 30, 2021 (unaudited) Weighted average shares outstanding - Class A common stock 27,600,000 — 27,600,000 Basic and diluted earnings per share - Class A common stock $ — $ (0.11) $ (0.11) Weighted average shares outstanding - Class B common stock 3,066,666 — 3,066,666 Basic and diluted loss per share - Class B common stock $ (1.08) $ 0.97 $ (0.11) Form 10-Q (June 30, 2021) - six months ended June 30, 2021 (unaudited) Weighted average shares outstanding - Class A common stock 27,600,000 (2,134,807) 25,465,193 Basic and diluted earnings per share - Class A common stock $ — $ (0.75) $ (0.75) Weighted average shares outstanding - Class B common stock 3,035,727 — 3,035,727 Basic and diluted loss per share - Class B common stock $ (0.62) $ (0.13) $ (0.75) |