Restatement of Previously Issued Financial Statements | Note 2. Restatement of Previously Issued Financial Statements In 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 previously issued financial statements to classify all Class A ordinary shares subject to possible redemption in temporary equity. In accordance with the SEC and its staff’s guidance on redeemable equity instruments, in ASC 480-10-S99, $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these condensed financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. As a result, the Company restated its previously filed financial statements to present all Class A ordinary shares 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. The Company’s previously filed financial statements that contained the error were reported in the Company’s Form 8-K filed with the SEC on February 16, 2021 (the “Post-IPO Balance Sheet”) and the Company’s Form 10-Qs for the quarterly periods ended March 31, 2021, and June 30, 2021 (the “Affected Quarterly Periods”). Impact of the Restatement The change in the carrying value of the Class A ordinary shares subject to possible redemption in the Post-IPO Balance Sheet resulted in a decrease of approximately $5.7 million in additional paid-in capital and an increase of approximately $37.8 million to accumulated deficit, as well as a reclassification of $43.6 million Class A ordinary shares from permanent equity to temporary equity. As of February 9, 2021 As Previously Adjustment As Restated Total assets $ 486,762,576 $ 486,762,576 Total liabilities $ 42,383,637 $ 42,383,637 Class A ordinary shares subject to redemption 439,378,930 43,621,070 483,000,000 Preference shares — — — Class A ordinary shares 436 (436 ) — Class B ordinary shares 1,208 — 1,208 Additional paid-in 5,780,890 (5,780,890 ) — Accumulated deficit (782,525 ) (37,839,744 ) (38,622,269 ) Total shareholders’ equity (deficit) $ 5,000,009 $ (43,621,070 ) $ (38,621,061 ) Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) $ 486,762,576 $ — $ 486,762,576 The impact of the restatement on the balance sheets, statements of operations and statements of cash flows for the Affected Quarterly Periods is presented below. The tables below present the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of March 31, 2021: As of March 31, 2021 As Previously Adjustment As Restated Total assets $ 485,217,955 $ 485,217,955 Total liabilities $ 42,293,251 $ 42,293,251 Class A ordinary shares subject to redemption 437,924,700 45,075,300 483,000,000 Preference shares — — — Class A ordinary shares 451 (451 ) — Class B ordinary shares 1,208 — 1,208 Additional paid-in 7,212,061 (7,212,061 ) — Accumulated deficit (2,213,716 ) (37,862,788 ) (40,076,504 ) Total shareholders’ equity (deficit) $ 5,000,004 $ (45,075,300 ) $ (40,075,296 ) Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit) $ 485,217,955 $ — $ 485,217,955 The table below present the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the three months ended March 31, 2021: For the three months ended March 31, 2021 As Previously Adjustment As Restated Cash Flow used in Operating Activities $ (1,365,329 ) $ — $ (1,365,329 ) Cash Flow used in Investing Activities $ (483,000,000 ) $ — $ (483,000,000 ) Cash Flows provided by Financing Activities $ 485,508,800 $ — $ 485,508,800 Supplemental Disclosure of Noncash Financing Activities Offering costs included in accounts payable $ 84,340 $ — $ 84,340 Offering costs included in accrued expenses $ 85,450 $ — $ 85,450 Offering costs paid by related party under promissory note $ 104,788 $ — $ 104,788 Reversal of accrued expenses $ 25,000 $ — $ 25,000 Deferred legal fees $ 250,000 $ — $ 250,000 Deferred underwriting commissions $ 16,905,000 $ — $ 16,905,000 Initial value of Class A ordinary shares subject to possible redemption $ 439,378,930 $ (439,378,930 ) $ — Change in value of Class A ordinary shares subject to possible redemption $ (1,454,230 ) $ 1,454,230 $ — The tables below present the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of June 30, 2021: As of June 30, 2021 As Previously Adjustment As Restated Total assets $ 484,399,219 $ 484,399,219 Total liabilities $ 39,746,028 $ 39,746,028 Class A ordinary shares subject to redemption 439,653,190 43,346,810 483,000,000 Preference shares — — — Class A ordinary shares 433 (433 ) — Class B ordinary shares 1,208 — 1,208 Additional paid-in 5,483,589 (5,483,589 ) — Accumulated deficit (485,229 ) (37,862,788 ) (38,348,017 ) Total shareholders’ equity $ 5,000,001 $ (43,346,810 ) $ (38,346,809 ) Total liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit $ 484,399,219 $ — $ 484,399,219 The table below present the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the six months ended June 30, 2021: For the six months ended June 30, 2021 As Previously Adjustment As Restated Cash Flow used in Operating Activities $ (1,952,139 ) $ — $ (1,952,139 ) Cash Flows used in Investing Activities $ (483,000,000 ) $ — $ (483,000,000 ) Cash Flows provided by Financing Activities $ 485,409,010 $ — $ (485,409,010 ) Supplemental Disclosure of Noncash Financing Activities Offering costs included in accrued expenses $ 70,000 $ — $ (70,000 ) Offering costs paid by related party under promissory note $ 104,788 $ — $ (104,788 ) Reversal of accrued expenses $ 25,000 $ — $ (25,000 ) Deferred legal fees $ 250,000 $ — $ (250,000 ) Deferred underwriting commissions $ 16,905,000 $ — $ (16,905,000 ) Initial value of Class A ordinary shares subject to possible redemption $ 439,378,930 $ (439,378,930 ) $ — Change in value of Class A ordinary shares subject to possible redemption $ 274,260 $ (274,260 ) $ — In connection with the change in presentation for the Class A ordinary shares 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 common share is presented below for the Affected Quarterly Periods: EPS for Class A ordinary shares (redeemable) As Previously Adjustment As Adjusted Form 10-Q (March 31, 2021) - three months ended March 31, 2021 Net loss $ (2,198,937 ) $ — $ (2,198,937 ) Weighted average shares outstanding 43,935,042 (17,160,042 ) 26,775,000 Basic and diluted earnings per share $ — ($0.06 ) ($0.06 ) Form 10-Q (June 30, 2021) - three months ended June 30, 2021 Net income $ 1,728,487 $— $ 1,728,487 Weighted average shares outstanding 43,794,369 (4,505,631 ) 48,300,000 Basic and diluted earnings per share $ — $ 0.03 $ 0.03 Form 10-Q (June 30, 2021) - six months ended June 30, 2021 Net loss $ (470,450 ) $ — $ (470,450 ) Weighted average shares outstanding 43,844,893 (6,366,204 ) 37,478,689 Basic and diluted earnings per share $ — ($0.01 ) ($0.01 ) EPS for Class B ordinary shares (non-redeemable) As Previously Adjustment As Adjusted Form 10-Q (March 31, 2021) - three months ended March 31, 2021 Net loss $ (2,198,937 ) $— $ (2,198,937 ) Weighted average shares outstanding 13,865,976 (2,492,878 ) 11,373,098 Basic and diluted earnings per share ($0.16 ) $ 0.10 ($0.06 ) Form 10-Q (June 30, 2021) - three months ended June 30, 2021 Net income $ 1,728,487 $ — $ 1,728,487 Weighted average shares outstanding 16,580,631 (4,505,631 ) 12,075,000 Basic and diluted earnings per share $ 0.10 ($0.07 ) $ 0.03 Form 10-Q (June 30, 2021) - six months ended June 30, 2021 Net loss $ (470,450 ) $— $ (470,450 ) Weighted average shares outstanding 15,230,803 (3,508,672 ) 11,722,131 Basic and diluted earnings per share ($0.03 ) $ 0.02 ($0.01 ) |