Restatement of Previously Issued Financial Statements | Note 2 - Restatement of Previously Issued Financial Statements On August 22, 2022, the Board discovered improper withdrawals from the Company’s operating bank account and the subsequent concealment of these withdrawals, which transactions initially appeared to commence in January 2022 during the period ended March 31, 2022. Upon these discoveries, the Board immediately launched an internal investigation, began a series of discussions with its advisors, took actions necessary to safeguard Company accounts and sought to recover funds. From the Board investigation it was concluded that Cooper Morgenthau, the former Chief Financial Officer and a former director of the Company, had made those improper withdrawals and took deliberate actions to conceal them, including by falsifying documents. Effective August 22, 2022, Mr. Morgenthau’s services as the Company’s Chief Financial Officer (the Company’s Principal Financial and Accounting Officer) was terminated, and Mr. Morgenthau was removed as a director and officer of the Company pursuant to its amended and restated memorandum and articles of association effective August 26, 2022. Following Mr. Morganthau’s termination the Board and Audit Committee continued to hold internal and external discussions with all bankers, vendors and service providers investigating any and all possibilities of additional Irregularities. On August 31, 2022, the Board investigation discovered that improper withdrawals by Mr. Morgenthau extended back to and commenced in June 2021 and the concealment of these Irregularities was accomplished by falsifying bank statements commencing with the June 2021 statements and continuing through to July 2022. On September 29, 2022 the Board and Audit Committee determined that the Company’s previously issued financial statements, as set forth in the Company’s Quarterly Reports on Form 10-Q for the periods ended June 30, 2021 and September 30, 2021, respectively, must be restated and should not be relied upon. The Irregularities did not take place prior to the quarter ended June 30, 2021. In connection with the preparation of the restatements management also made certain adjustments and reclassifications for presentation purpose. The impact of the restatement on the Company’s previously issued financial statements is reflected in the following table: Condensed Balance Sheet as of September 30, 2021 (unaudited) As Previously Adjustment Restated Cash $ 932,771 $ (828,400 ) $ 104,371 Prepaid expenses 389,137 42,418 431,555 Total assets 415,508,607 (785,982 ) 414,722,625 Accrued offering costs and expenses 41,867 26,945 68,812 Due to related party 24,975 25,000 49,975 Total liabilities 35,188,301 51,945 35,240,246 Accumulated deficit (33,680,729 ) (837,927 ) (34,518,656 ) Total shareholders’ deficit (33,679,694 ) (837,927 ) (34,517,621 ) Total liabilities and shareholders’ deficit 415,508,607 (785,982 ) 414,722,625 Condensed Statement of Operations for the Three Months ended September 30, 2021 (unaudited) Formation and operating costs $ 464,695 $ (65,000 ) $ 399,695 Loss from Irregularities - 230,573 230,573 Net income 6,386,667 295,573 6,682,240 Basic and diluted net income per Class A ordinary share 0.12 0.00 0.12 Basic and diluted net income per Class B ordinary share 0.12 0.00 0.12 Condensed Statement of Operations for the Nine Months ended September 30, 2021 (unaudited) Formation and operating costs $ 983,951 $ (65,000 ) $ 918,951 Loss from Irregularities - (902,927 ) (902,927 ) Net income 9,203,125 (837,927 ) 8,365,198 Basic and diluted net income per Class A ordinary share 0.22 (0.02 ) 0.20 Basic and diluted net income per Class B ordinary share 0.22 (0.02 ) 0.20 Condensed Statement of Changes in Shareholders’ Deficit for the Three Months ended September 30, 2021 (unaudited) Net income $ 6,386,667 $ 295,573 $ 6,682,240 Accumulated deficit (33,680,729 ) (837,927 ) (34,518,656 ) Total shareholders’ deficit (33,679,694 ) (837,927 ) (34,517,621 ) Condensed Statement of Cash Flows for the Nine Months ended September 30, 2021 (unaudited) Net income $ 9,203,125 $ (837,927 ) $ 8,365,198 Prepaid expenses (547,990 ) (42,418 ) (590,408 ) Accrued offering costs and expenses (1) 93,414 (40,052 ) 53,362 Due to related party (1) 24,975 (25,100 ) (125 ) Net cash used in operating activities (1,413,552 ) (945,497 ) (2,359,049 ) Payments of offering costs (1) (575,189 ) 117,097 (458,092 ) Net cash provided by financing activities 416,346,323 117,097 416,463,420 (1) Management made certain adjustments and reclassifications in connection with the preparation of the restatements which are not a result of the Irregularities. The amount adjusted included the impact of (i) a reclassification of $50,100 from accrued offering costs and expenses to due to related parties, and (ii) a reclassification of $117,097 from accrued offering costs and expenses to payment of offering costs. |