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 September 30, 2021, management identified errors made in its historical financial statements where, at the closing of the Company’s Initial Public Offering, the Company improperly valued its Class A common stock subject to possible redemption. The Company previously determined the Class A common stock subject to possible redemption to be equal to the redemption value, while also taking into consideration that a redemption cannot result in net tangible assets being less than $5,000,001. Upon review of its financial statements for the period ended September 30, 2021, the Company reevaluated the classification of the Class A common stock and determined that the Class A common stock issued during the Initial Public Offering and pursuant to the exercise of the underwriters’ overallotment 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 shares of Class A common stock subject to possible redemption, resulting in the Class A common stock subject to possible redemption being classified as temporary equity in its entirety. As a result, management has noted a reclassification error related to temporary equity and permanent equity. This resulted in a restatement of the initial carrying value of the common stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and common stock. 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 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 as of February 17, 2021, March 31, 2021 and June 30, 2021 should be restated to report all Public Shares as temporary equity. As such the Company is reporting these restatements to those periods in this Quarterly Report. In connection with the change in presentation for the common stock subject to redemption, the Company also restated its income (loss) per common share calculated to allocate net income (loss), with all allocated to common stock. 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. There is no impact to the reported amounts for total assets, total liabilities, or net income (loss). The impact of the restatement on the Company’s financial statements is reflected in the following tables: Balance Sheet as of February 17, 2021 (audited) As Previously Adjustment As Restated Class A common stock subject to possible redemption $ 228,885,190 $ 24,114,810 $ 253,000,000 Class A common stock $ 241 $ (241 ) $ — Additional paid-in capital $ 5,438,092 $ (5,438,092 ) $ — Accumulated deficit $ (438,958 ) $ (18,676,477 ) $ (19,115,435 ) Total Stockholders’ Equity (Deficit) $ 5,000,008 $ (24,114,810 ) $ (19,114,802 ) Balance Sheet as of March 31, 2021 Class A common stock subject to possible redemption $ 232,545,120 $ 20,454,880 $ 253,000,000 Class A common stock $ 205 $ (205 ) $ — Additional paid-in capital $ 1,778,198 $ (1,778,198 ) $ — Accumulated deficit $ 3,220,966 $ (18,676,477 ) $ (15,455,511 ) Total Stockholders’ Equity (Deficit) $ 5,000,002 $ (20,454,880 ) $ (15,454,878 ) Balance Sheet as of June 30, 2021 Class A Common stock subject to possible redemption $ 229,642,450 $ 23,357,550 $ 253,000,000 Class A Common stock $ 234 $ (234 ) $ — Additional paid-in capital $ 4,680,839 $ (4,680,839 ) $ — Accumulated deficit $ 318,293 $ (18,676,477 ) $ (18,358,184 ) Total Shareholders’ Equity (Deficit) $ 4,999,999 $ (23,357,550 ) $ (18,357,551 ) Statement of Operations for the Three Months Ended March 31, 2021 As Previously Adjustment As Restated Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 25,300,000 (25,300,000 ) — Basic and diluted net income (loss) per share, Class A common stock subject to possible redemption $ — $ — $ — Basic and diluted weighted average shares outstanding, Non-redeemable common stock 5,885,000 (5,885,000 ) — Basic and diluted net income (loss) per share, Non-redeemable common stock $ 0.55 $ (0.55 ) $ — Weighted average shares outstanding of Class A common stock — 11,939,326 11,939,326 Basic and diluted net income per share, Class A common stock $ — $ 0.18 $ 0.18 Weighted average shares outstanding of Class B common stock — 5,885,000 5,885,000 Basic and diluted net income per share, Class B common stock $ — $ 0.18 $ 0.18 Statement of Operations for the Three Months Ended June 30, 2021 As Previously Adjustment As Restated Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 25,300,000 (25,300,000 ) — Basic and diluted net income per share, Class A common stock subject to possible redemption $ — $ — $ — Basic and diluted weighted average shares outstanding, Non-redeemable common stock 6,325,000 (6,325,000 ) — Basic and diluted net loss (income) per share, Non-redeemable common stock $ (0.46 ) $ 0.46 $ — Weighted average shares outstanding of Class A common stock — 25,300,000 25,300,000 Basic and diluted net loss per share, Class A common stock $ — $ (0.09 ) $ (0.09 ) Weighted average shares outstanding of Class B common stock — 6,325,000 6,325,000 Basic and diluted net loss per share, Class B common stock $ — $ (0.09 ) $ (0.09 ) Statement of Operations for the Six Months Ended June 30, 2021 As Previously Adjustment As Restated Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption 25,300,000 (25,300,000 ) — Basic and diluted net income per share, Class A common stock subject to possible redemption $ — $ — $ — Basic and diluted weighted average shares outstanding, Non-redeemable common stock 6,106,215 (6,106,215 ) — Basic and diluted net income (loss) per share, Non-redeemable common stock $ 0.05 $ (0.05 ) $ — Weighted average shares outstanding of Class A common stock — 18,693,889 18,693,889 Basic and diluted net income per share, Class A common stock $ — $ 0.01 $ 0.01 Weighted average shares outstanding of Class B common stock — 6,106,215 6,106,215 Basic and diluted net income per share, Class B common stock $ — $ 0.01 $ 0.01 Statement of Cash Flows for the Three Months Ended March 31, 2021 (Unaudited) As Previously Adjustment As Restated Initial classification of common stock subject to possible redemption $ 228,885,190 $ 24,114,810 $ 253,000,000 Change in value of common stock subject to redemption $ 3,659,930 $ (3,659,930 ) $ — Statement of Cash Flows for the Six Months Ended June 30, 2021 (Unaudited) As Previously Adjustment As Restated Initial classification of common stock subject to possible redemption $ 228,885,190 $ 24,114,810 $ 253,000,000 Change in value of common stock subject to redemption $ 757,250 $ (757,250 ) $ — |