Restatement of Previously Issued Financial Statements | Note 2 — Restatement of Previously Issued Financial Statements In the Company’s previously issued financial statements, a portion of the public shares were classified as permanent equity to maintain stockholders’ equity greater than $5,000,000 on the basis that the Company will consummate its initial business combination only if the Company has net tangible assets of at least $5,000,001. Thus, the Company can only complete a merger and continue to exist as a public company if there is sufficient Public Shares that do not redeem at the merger and so it is appropriate to classify the portion of its public shares required to keep its stockholders’ equity above the $5,000,000 threshold as “shares not subject to redemption.” However, in light of recent comment letters issued by the Securities & Exchange Commission (“SEC”) to several special purpose acquisition companies, management re-evaluated the Company’s application of ASC 480-10-99 to its accounting classification of public shares. Upon re-evaluation, management determined that the Public Shares issued during the IPO 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 all of the Public Shares should be classified as temporary equity in its entirety. As a result, management has noted a reclassification 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), 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 redeemable and nonredeemable common stock. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of common stock 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 impacts were material to any previously presented financial statements. Impact of the Restatement The impact to the balance sheet as of March 19, 2021, the balance sheet as of March 31, 2021 and the balance sheet as of June 30, 2021 is presented below: As Reported Adjustment As Restated Balance Sheet as of March 19, 2021 Common Stock subject to possible redemption $ 227,542,138 $ 22,457,862 $ 250,000,000 Class A common stock, $0.0001 par value 295 (225 ) 70 Class B common stock, $0.0001 par value 982 — 982 Additional Paid in Capital 5,586,660 (5,586,660 ) — Accumulated Deficit (587,936 ) (16,870,977 ) (17,458,913 ) Total Stockholders’ Equity (Deficit) $ 5,000,001 $ (22,457,862 ) $ (17,457,861 ) Number of shares subject to redemption 22,754,214 2,245,786 25,000,000 Balance Sheet as of March 31, 2021 Common Stock subject to possible redemption $ 227,362,131 $ 22,637,869 $ 250,000,000 Class A common stock, $0.0001 par value 296 (226 ) 70 Class B common stock, $0.0001 par value 982 — 982 Additional Paid in Capital 5,766,666 (5,766,666 ) — Accumulated Deficit (767,937 ) (16,870,977 ) (17,638,914 ) Total Stockholders’ Equity (Deficit) $ 5,000,007 $ (22,637,869 ) $ (17,637,862 ) Number of shares subject to redemption 22,736,213 2,263,787 25,000,000 Statement of Operations for the three months ended March 31, 2021 Weighted average shares outstanding, redeemable Class A common stock 22,752,829 (19,419,496 ) 3,333,333 Basic and diluted net income per share, redeemable Class A common stock $ 0.00 $ (0.06 ) $ (0.06 ) Weighted average shares outstanding, non-redeemable Class A and Class B common stock 8,992,369 (332,369 ) 8,660,000 Basic and diluted net income per share, non-redeemable Class A and Class B common stock (0.09 ) 0.03 (0.06 ) Balance Sheet as of June 30, 2021 Common Stock subject to possible redemption $ 228,381,200 $ 21,618,800 $ 250,000,000 Class A common stock, $0.0001 par value 286 (216 ) 70 Class B common stock, $0.0001 par value 857 — 857 Additional Paid in Capital 4,747,731 (4,747,731 ) — Retained Earnings (Accumulated Deficit) 251,127 (16,870,853 ) (16,619,726 ) Total Stockholders’ Equity (Deficit) $ 5,000,001 $ (21,618,800 ) $ (16,618,799 ) Number of shares subject to redemption 22,838,120 2,161,880 25,000,000 Statement of Operations for the three months ended June 30, 2021 Weighted average shares outstanding, redeemable Class A common stock 22,987,181 2,012,819 25,000,000 Basic and diluted net income per share, redeemable Class A common stock $ 0.00 $ 0.03 $ 0.03 Weighted average shares outstanding, non-redeemable Class A and Class B common stock 11,529,334 (2,262,667 ) 9,266,667 Basic and diluted net income per share, non-redeemable Class A and Class B common stock $ 0.09 $ (0.06 ) $ 0.03 Statement of Operations for the six months ended June 30, 2021 Weighted average shares outstanding, redeemable Class A common stock 22,738,853 (8,512,334 ) 14,226,519 Basic and diluted net income per share, redeemable Class A common stock $ 0.00 $ 0.01 $ 0.01 Weighted average shares outstanding, non-redeemable Class A and Class B common stock 10,267,860 (1,302,850 ) 8,965,010 Basic and diluted net income per share, non-redeemable Class A and Class B common stock $ 0.02 $ (0.01 ) $ 0.01 |