RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS | NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS The management of the Company has re-evaluated the Company’s application of ASC 480-10-S99-3A to its accounting classification of the redeemable Class A common stock issued as part of the units sold in the Company’s Initial Public Offering on March 22, 2021. Historically, a portion of the shares of Class A common stock was classified as permanent equity to maintain stockholders’ equity greater than $5 million on the basis that the Company will not redeem its shares of Class A common stock in an amount that would cause its net tangible assets to be less than $5,000,001, as described in the Company’s Amended and Restated Certificate of Incorporation. Pursuant to such re-evaluation, the Company’s management has determined that the shares of Class A common stock include certain provisions that require classification of all of the shares of Class A common stock as temporary equity regardless of the net tangible assets redemption limitation contained in the Amended and Restated Certificate of Incorporation. 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 Class A common stock subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock. In connection with the change in presentation for the Class A common stock subject to redemption, the Company also restated its income (loss) per common share calculation to allocate net income (loss) evenly to Class A and Class B 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. 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’s management and the audit committee of the Company’s board of directors concluded that the Company’s previously issued (i) audited balance sheet as of March 22, 2021, as previously revised in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 7, 2021 (the “Q1 Form 10-Q”), (ii) unaudited interim financial statements included in the Q1 Form 10-Q and (iii) unaudited interim financial statements included in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021, filed with the SEC on August 12, 2021, should be restated to report all Public Shares as temporary equity and should no longer be relied upon. Except for the audited balance sheet as of March 22, 2021 which will be restated in a future filing, the Company is restating its financial statements for the period ended March 31, 2021 and June 30, 2021 in this Quarterly Report. There has been no change in the Company’s total assets, liabilities or operating results. The impact of the restatement on the Company’s historical financial statements is reflected in the following table. As Previously Restatement Adjustment As Restated Balance Sheet as of March 31, 2021 (unaudited) Class A common stock subject to possible redemption $ 315,463,980 $ 20,551,110 $ 336,015,090 Class A common stock $ 306 $ (206 ) $ 100 Additional paid-in capital $ 4,729,034 $ (4,729,034 ) $ — Accumulated deficit $ 269,830 $ (15,821,870 ) $ (15,552,040 ) Total Stockholders’ Equity (Deficit) $ 5,000,010 $ (20,551,110 ) $ (15,551,100 ) Number of shares subject to possible redemption 31,546,398 2,055,111 33,601,509 Balance Sheet as of June 30, 2021 (unaudited) Class A common stock subject to possible redemption $ 310,298,690 $ 25,716,400 $ 336,015,090 Class A common stock $ 358 $ (258 ) $ 100 Additional paid-in capital $ 9,894,272 $ (9,894,272 ) $ — Accumulated deficit $ (4,895,469 ) $ (15,821,870 ) $ (20,717,339 ) Total Stockholders’ Equity (Deficit) $ 5,000,001 $ (25,716,400 ) $ (20,716,399 ) Number of shares subject to possible redemption 31,029,869 2,571,640 33,601,509 As Previously Restatement Adjustment As Restated Statement of Operations for the period from January 15, 2021 (inception) through March 31, 2021 (unaudited) Basic and diluted weighted average shares outstanding, Class A common stock 33,601,509 (29,449,084 ) 4,152,425 Basic and diluted net income per share, Class A common stock $ — $ 0.02 $ 0.02 Basic and diluted weighted average shares outstanding, Class B common stock 7,724,142 (116,097 ) 7,608,045 Basic and diluted net income per share, Class B common stock $ 0.03 $ (0.01 ) $ 0.02 Statement of Operations for the Three Months Ended June 30, 2021 (unaudited) Basic and diluted weighted average shares outstanding, Class A common stock 33,601,509 1,002,030 34,603,539 Basic and diluted net loss per share, Class A common stock $ — $ (0.12 ) $ (0.12 ) Basic and diluted weighted average shares outstanding, Class B common stock 9,402,407 (1,002,030 ) 8,400,377 Basic and diluted net loss per share, Class B common stock $ (0.55 ) $ 0.43 $ (0.12 ) Statement of Operations for the period from January 15, 2021 (inception) through June 30, 2021 (unaudited) Basic and diluted weighted average shares outstanding, Class A common stock 33,601,509 (12,756,004 ) 20,845,505 Basic and diluted net loss per share, Class A common stock $ — $ (0.17 ) $ (0.17 ) Basic and diluted weighted average shares outstanding, Class B common stock 8,646,028 (603,632 ) 8,042,396 Basic and diluted net loss per share, Class B common stock $ (0.57 ) $ 0.40 $ (0.17 ) As Reported Restatement Adjustments As Restated Non-Cash investing and financing activities: Statement of Cash Flows for the period from January 15, 2021 (inception) through March 31, 2021 (unaudited) Initial classification of common stock subject to possible redemption $ 314,785,840 $ 21,229,250 $ 336,015,090 Change in value of common stock subject to possible redemption $ 678,140 $ (678,140 ) $ — Statement of Cash Flows for the period from January 15, 2021 (inception) through June 30, 2021 (unaudited) Initial classification of common stock subject to possible redemption $ 314,785,840 $ 21,229,250 $ 336,015,090 Change in value of common stock subject to possible redemption $ (4,487,150 ) $ 4,487,150 $ — |