XML 18 R8.htm IDEA: XBRL DOCUMENT v3.22.0.1
Restatement of Previously Issued Financial Statements
 9 Months Ended
Sep. 30, 2021
Revision of Previously Issued Financial Statements [Abstract]  
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. Previously, the Company did not consider redeemable stock classified as temporary equity as part of net tangible assets. Effective with these financial statements, the Company revised this interpretation to include temporary equity in net tangible assets.

 

Upon review of its financial statements for the quarterly period ended September 30, 2021 included in the quarterly report on Form 10-Q filed with the SEC on November 15, 2021, the Company reevaluated the classification of a portion of the Class A common stock in permanent equity and determined that all Class A common stock issued in the IPO 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 the Class A common stock subject to possible redemption should be classified as temporary equity in its entirety. This resulted in an increase to temporary equity, with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A common stock. The accompanying statements of changes in stockholders’ equity and cash flows no longer present the change in redeemable shares to align with the presentation of all redeemable Class A common stock as temporary equity.

 

In connection with the change in presentation for the Class A common stock subject to possible redemption, the Company also restated its earnings per share calculation to allocate income and losses shared pro rata between the two classes of common stock. This presentation shows both classes of common stock share pro rata in the income and losses of the Company.

 

There has been no change to the Company’s total assets, liabilities, or operating results as a result of the restatement.

 

Impact of the Restatement

   As       As 
   Reported   Adjustment   Restated 
Unaudited Balance Sheet as of March 31, 2021               
Common Stock subject to possible redemption ($)  $131,686,791   $20,055,709   $151,742,500 
                
Stockholders’ equity (deficit)               
Class A common stock, $0.0001 par value   198    (198)   
-
 
Class B common stock, $0.0001 par value   374    
-
    374 
Additional paid-in capital   2,035,191    (2,035,191)   
-
 
Accumulated Deficit   (2,964,240)   (18,020,320)   (15,056,080)
Total stockholders’ equity (deficit)  $5,000,003   $(20,055,709)  $(15,055,706)
                
Shares subject to possible redemption   12,974,068    1,975,932    14,950,000 
                
Unaudited Statement of Operations for the three months ended March 31, 2021               
Weighted average shares outstanding, Redeemable Class A common stock   14,950,000    (3,322,222)   11,627,778 
Basic and diluted net income per share, Redeemable Class A common stock  $
-
   $0.19   $0.19 
Weighted average shares outstanding, Non-redeemable Class A and Class B common stock   3,737,500    
-
    3,737,500 
Basic and diluted net income per shares, Non-redeemable Class A and Class B common stock  $0.79   $(0.60)  $0.19 
                
Unaudited Statement of Changes in Stockholders’ Equity as of March 31, 2021               
Sale of 14,950,000 Units, net of offering costs related to Class A common stock and initial fair value of Public Warrants liability  $133,697,553   $(133,697,553)  $
-
 
Class A common stock subject to possible redemption   (131,686,790)   131,686,790    
-
 
Accretion for Class A common stock to redemption amount   
-
    (15,802,447)   (15,802,447)
Overfunding of trust account for redemption of Class A common stock   
-
    (242,500)   (242,500)
                
Unaudited Statement of Cash Flows as of March 31, 2021               
Initial value of Class A common stock subject to possible redemption  $127,845,058   $(127,845,058)  $- 
Change in value of Class A common stock subject to possible redemption  $3,841,733   $(3,841,733)  $
-
 
                
Unaudited Balance Sheet as of June 30, 2021               
Common Stock subject to possible redemption  $132,096,110   $19,646,390   $151,742,500 
                
Stockholders’ equity (deficit)               
Class A common stock, $0.0001 par value   194    (194)   
-
 
Class B common stock, $0.0001 par value   374    
-
    374 
Additional paid-in capital   1,625,875    (1,625,875)   
-
 
Retained Earnings (Accumulated Deficit)   3,373,558    (18,020,321)   (14,674,235)
Total stockholders’ equity (deficit)  $5,000,001   $(19,646,389)  $(14,646,388)
                
Shares subject to possible redemption   13,014,395    1,935,605    14,950,000 

 

   As       As 
   Reported   Adjustment   Restated 
Unaudited Statement of Operations for the three months ended June 30, 2021            
Weighted average shares outstanding, Redeemable Class A common stock   14,950,000    
-
    14,950,000 
Basic and diluted net income per share, Redeemable Class A common stock  $
-
   $0.02   $0.02 
Weighted average shares outstanding, Non-redeemable Class A and Class B common stock   3,737,500    
-
    3,737,500 
Basic and diluted net income per shares, Non-redeemable Class A and Class B common stock  $0.11   $(0.09)  $0.02 
                
Unaudited Statement of Operations for the six months ended June 30, 2021               
Weighted average shares outstanding, Redeemable Class A common stock   14,950,000    (1,651,934)   13,298,066 
Basic and diluted net income per share, Redeemable Class A common stock  $
-
   $0.20   $0.20 
Weighted average shares outstanding, Non-redeemable Class A and Class B common stock   3,737,500    
-
    3,737,500 
Basic and diluted net income per shares, Non-redeemable Class A and Class B common stock  $0.90   $(0.70)  $0.20 
                
Unaudited Statement of Changes in Stockholders’ Equity as of June 30, 2021               
Remeasurement in Class A common stock subject to possible redemption  $(409,320)  $409,320   $
-
 
                
Unaudited Statement of Cash Flows as of June 30, 2021               
Initial value of Class A common stock subject to possible redemption  $127,845,058   $(127,845,058)   $- 
Change in value of Class A common stock subject to possible redemption  $4,251,052   $(4,251,052)  $
-