Restatement of Previously Issued Financial Statements | Note 2 — Restatement of Previously Issued Financial Statements In connection with the preparation of the Company’s financial statements as of and for the three and nine months ended September 30, 2021, the Company’s management determined it should restate the Company’s Current Report on Form 8-K filed by the Company with the SEC on March 15, 2021 and certain of its previously reported financial statements for the three months ended March 31, 2021 and the three and six months ended June 30, 2021. The Company previously determined the common stock subject to possible redemption to be equal to the redemption value of $10.00 per share of common stock while also taking into consideration its charter’s requirement that a redemption cannot result in net tangible assets being less than $5,000,001 . This resulted in a portion of the Company’s Class A common stock being included as a component of stockholders’ equity. In light of recent guidance from the SEC regarding the classification of redeemable shares, the Company’s management reevaluated the classification of its Class A common stock and determined that the common stock issued during the IPO and pursuant to the exercise of the underwriters’ overallotment (collectively, the “Public Shares”) can be redeemed or become redeemable subject to the occurrence of future events considered outside the Company’s control under ASC 480-10-S99. Therefore, management concluded that the carrying value should include all Public Shares, resulting in the Public Shares being classified as temporary equity in its entirety. As a result, management has recorded a restatement adjustment related to temporary equity and permanent equity. This resulted in an adjustment to the initial carrying value of the Public Shares with the offset recorded to additional paid-in capital (to the extent available), retained earnings (accumulated deficit) and common stock. In connection with the change in presentation for the Public Shares, the Company also restated its earnings per share calculation to allocate net income (loss) evenly to common stock subject to redemption and those that are not subject to redemption. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of common stock share pro rata in the income (loss) 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 changes and has determined that the related impact was material to the previously presented financial statements and that those previously issued financial statements should no longer be relied upon. Therefore, the Company, in consultation with its Audit Committee, concluded that its previously issued financial statements should be restated to report all Public Shares as temporary equity. As such the Company is reporting these restatements to those periods noted above in this Quarterly Report. The impact of the restatement on the Company’s financial statements is reflected in the following table: Restatement As Previously Reported Adjustment As Restated Balance Sheet as of March 9, 2021 (as set forth in footnote 2 to the Quarterly Report on Form 10-Q filed on July 22, 2021) Common Stock subject to possible redemption $ 244,358,910 $ 31,641,090 $ 276,000,000 Class A common stock, $0.0001 par value 316 (316) — Class B common stock, $0.0001 par value 690 — 690 Additional Paid-in-Capital 5,951,582 (5,921,582) — Accumulated Deficit (922,581) (25,719,192) (26,641,773) Total Stockholders’ Equity (Deficit) $ 5,000,007 $ (31,641,090) $ (26,641,083) Number of shares subject to redemption 24,435,891 3,164,109 27,600,000 Restatement As Previously Reported Adjustment As Restated Balance Sheet as of March 31, 2021 (as set forth in the Quarterly Report on Form 10-Q filed on July 22, 2021) Common Stock subject to possible redemption $ 243,535,790 $ 32,464,210 $ 276,000,000 Class A common stock, $0.0001 par value 324 (324) — Class B common stock, $0.0001 par value 690 — 690 Additional Paid-in-Capital 6,963,704 (6,963,704) — Accumulated Deficit (1,964,715) (25,500,182) (27,464,897) Total Stockholders’ Equity (Deficit) $ 5,000,003 $ (32,464,210) $ (27,464,207) Number of shares subject to redemption 24,353,579 3,246,421 27,600,000 Restatement As Previously Reported Adjustment As Restated Unaudited Statement of Operations for the three months ended March 31, 2021 as restated for temporary equity related to Public Shares Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 27,600,000 — 27,600,000 Basic and diluted weighted average shares outstanding, Class A common stock 6,900,000 — 6,900,000 Basic and diluted net income (loss) per share, Class A common stock subject to possible redemption $ 0.00 $ (0.06) $ (0.06) Basic and diluted net income (loss) per share Class B common stock $ (0.28) $ 0.22 $ (0.06) Restatement As Previously Reported Adjustment As Restated Balance Sheet as of June 30, 2021 (as set forth in the Quarterly Report on Form 10-Q filed on August 16, 2021) Common Stock subject to possible redemption $ 243,374,720 $ 32,625,280 $ 276,000,000 Class A common stock, $0.0001 par value 326 (326) — Class B common stock, $0.0001 par value 690 — 690 Additional Paid-in-Capital 7,124,772 (7,124,772) — Accumulated Deficit (2,125,779) (25,500,182) (27,625,961) Total Stockholders’ Equity (Deficit) $ 5,000,009 $ (32,625,280) $ (27,625,271) Number of shares subject to redemption 24,337,472 3,262,528 27,600,000 Restatement As Reported Adjustment As Restated Unaudited Statement of Operations for the three and six months ended June 30, 2021 as restated for temporary equity related to public shares Three months ended June 30, 2021 Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 24,353,579 3,246,421 27,600,000 Basic and diluted weighted average shares outstanding, Class A common stock 10,146,421 (3,246,421) 6,900,000 Basic and diluted net income (loss) per share, Class A common stock subject to possible redemption $ 0.00 $ (0.00) $ (0.00) Basic and diluted net loss per share Class B common stock $ (0.02) $ 0.02 $ (0.00) Six months ended June 30, 2021 Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 15,436,872 1,794,067 17,230,939 Basic and diluted weighted average shares outstanding, Class A common stock 8,694,067 (1,794,067) 6,900,000 Basic and diluted net income (loss) per share, Class A common stock subject to possible redemption $ 0.00 $ (0.09) $ (0.09) Basic and diluted net income (loss) per share Class B common stock $ (0.24) $ 0.15 $ (0.09) |