Quarterly report pursuant to Section 13 or 15(d)

Restatement of Previously Issued Financial Statements

v3.21.2
Restatement of Previously Issued Financial Statements
9 Months Ended
Sep. 30, 2021
Prior Period Adjustment [Abstract]  
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 of $10.00 per share of Class A common stock while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Management determined that the
 
Class A common stock issued during the Initial Public Offering can be redeemed or become redeemable subject to the occurrence of future events considered outside the Company’s control. Therefore, management concluded that the redemption 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 equal to their redemption value. As a result, management has noted a reclassification error 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 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 the previously presented financial statements. Therefore, the Company, in consultation with its Audit Committee, concluded that its previously issued financial statements should be restated to report all public shares as temporary equity. As such the Company is restating those periods in this Quarterly Report. 
The impact of the restatement on the Company’s financial statements is reflected in the following table. 
 
Balance Sheet as of February 12, 2021 (
unaudited
)
  
As Previously
Reported
    
Adjustment
    
As
Restated
 
Class A common stock subject to possible redemption
   $ 301,630,948      $ 14,619,052      $ 316,250,000  
Class A common stock
   $ 230      $ (147    $ 83  
Additional
paid-in
capital
   $ 5,235,691      $ (5,235,691    $ —    
Accumulated deficit
   $ (236,705    $ (9,383,214    $ (9,619,919
Total Stockholders’ Equity (Deficit)
   $ 5,000,007      $ (14,619,052    $ (9,619,045
       
Balance Sheet as of March 31, 2021 (unaudited)
  
 
 
  
 
 
  
 
 
Class A common stock subject to possible redemption
  
$
306,684,320
 
  
$
9,565,680
 
  
$
316,250,000
 
Class A common stock
  
$
179
 
  
$
(96
  
$
83
 
Additional paid-in capital
  
$
182,370
 
  
$
(182,370
  
$
—  
 
Retained earnings
  
$
4,816,670
 
  
$
(9,383,214
  
$
(4,566,544
)
Total Stockholders’ Equity (Deficit)
  
$
5,000,010
 
  
$
(9,565,680
  
$
(4,565,670
)
       
Balance Sheet as of June 30, 2021 (unaudited)
  
 
 
  
 
 
  
 
 
Class A common stock subject to possible redemption
  
$
296,160,450
 
  
$
20,089,550
 
  
$
316,250,000
 
Class A common stock
  
$
284
 
  
$
(201
  
$
83
 
Additional paid-in capital
  
$
10,706,135
 
  
$
(10,706,135
  
$
—  
 
Retained earnings
  
$
(5,707,207
  
$
(9,383,214
  
$
(15,090,421
)
Total Stockholders’ Equity (Deficit)
  
$
5,000,003
 
  
$
(20,089,550
  
$
(15,089,547
)
       
Statement of Cash Flows for the Three Months Ended March 31, 2021
(unaudited)
  
 
 
  
 
 
  
 
 
Initial classification of Class A common stock subject to possible redemption
  
$
301,630,950
 
  
$
14,619,050
 
  
$
316,250,000
 
Change in value of Class A common stock subject to possible redemption
  
 
5,053,370
 
  
 
(5,053,370
  
 
—  
 
       
Statement of Cash Flows for the Six Months Ended June 30, 2021
(unaudited)
  
 
 
  
 
 
  
 
 
Initial classification of Class A common stock subject to possible redemption
  
$
301,630,950
 
  
$
14,619,050
 
  
$
316,250,000
 
Change in value of Class A common stock subject to possible redemption
  
 
(5,470,500
  
 
5,470,500
 
  
 
—  
 
       
Condensed Consolidated Statement of Changes in Stockholders’
Equity (Deficit) March 31, 2021
  
As Previously
Reported
 
  
Adjusted
 
  
As Restated
 
Sales of 31,625,000 Units, net of underwriting discounts
  
 
298,798,535
 
  
 
(298,798,535
  
 
—  
 
Sale of 832,500 Private Placement Units (Private Placement Shares)
  
 
8,044,125
 
  
 
—  
 
  
 
8,044,125
 
Initial value of common stock subject to possible redemption at IPO date
  
 
(301,630,950
  
 
301,630,950
 
  
 
—  
 
Change in value of common stock subject to redemption
  
 
(5,053,370
  
 
5,053,370
 
  
 
—  
 
Accretion for Class A common stock to redemption amount
  
 
—  
 
  
 
(17,451,465
  
 
(17,451,465
Total stockholders’ equity (deficit)
  
 
5,000,010
 
  
 
(9,565,680
  
 
(4,565,670
       
Condensed Consolidated Statement of Changes in Stockholders’
Equity (Deficit) June 30, 2021
  
As Previously
Reported
 
  
Adjusted
 
  
As Restated
 
Change in value of common stock subject to redemption
  
 
(5,470,500
  
 
5,470,500
 
  
 
—  
 
Total stockholders’ equity (deficit)
  
 
5,000,003
 
  
 
(20,089,550
  
 
(15,089,547
In connection with the change in presentation for the Class A common stock subject to redemption, the Company also restated its income (loss) per share calculated 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. There is no impact to the reported amounts for total assets, total liabilities, cash flows, or net income (loss). The impact of this restatement on the Company’s financial statements is reflected in the following table:
 
 
  
As Previously
Reported
 
  
As Restated
 
  
As Previously
Reported
 
 
As Restated
 
 
As Previously
Reported
 
 
As Restated
 
 
  
For the
Three Months
Ended
March 31,
2021
 
  
For the Three
Months
Ended
March 31,

2021
 
  
For the
Three Months
Ended
June 30,

2021
 
 
For the
Three Months
Ended
June 30,

2021
 
 
For the
Six Months
Ended
June 30,

2021
 
 
For the
Six Months
Ended
June 30,

2021
 
Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption
  
 
30,163,095
 
  
 
31,625,000
 
  
 
29,616,045
 
 
 
31,625,000
 
 
 
30,496,324
 
 
 
31,625,000
 
Basic and diluted net loss per share, Class A common stock
  
$
—  
 
  
$
0.12
 
  
$
—  
 
 
$
(0.27
 
$
—  
 
 
$
(0.15
Basic and diluted weighted average shares outstanding, Class B common stock subject to possible redemption
  
 
8,611,731
 
  
 
7,715,000
 
  
 
9,695,318
 
 
 
7,715,000
 
 
 
6,875,000
 
 
 
7,715,000
 
Basic and diluted net loss per share, Class B common stock
  
$
0.56
 
  
$
0.12
 
  
$
(1.09
 
$
(0.27
 
$
(0.83
 
$
(0.15