Restatement of Previously Issued Financial Statements
|4 Months Ended|
Dec. 31, 2020
|Restatement Of Previously Issued Financial Statements [Abstract]|
|Restatement of Previously Issued Financial Statements||
NOTE 2 —RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
The Company has followed ASC 480 in accounting for its Class A ordinary shares subject to redemption. This included recording the Public Shares in permanent equity on its balance sheet. However, the Company maintained shareholders’ equity of at least $5,000,001 as the Company will not redeem Public Shares that would cause the Company’s net tangible assets to be less than $5,000,001 following such redemptions.
In September 2021, the Company’s management
re-evaluatedand ultimately concluded that the classification of $5,000,001 in permanent equity was not appropriate and that the Class A ordinary shares should be reclassified as temporary equity. In connection with the preparation of the financial statements as of and for the three and nine months ended September 30, 2021 that were included in the Company’s Q3 Form
10-Q,the Company concluded that it would change its accounting and reflect the full amount of all redeemable Class A ordinary shares in temporary equity. This was a change from the Company’s previous accounting practice whereby it maintained shareholders’ equity of at least $5,000,001 as the Company will not redeem Class A ordinary shares that would cause the Company’s net tangible assets to be less than $5,000,001 following such redemptions. In connection with the change in presentation for the Class A ordinary shares subject to possible redemption, the Company also revised its earnings per share to allocate net income (loss) evenly to all Class A ordinary shares and Class B ordinary shares.
On December 14, 2021, the Company’s management and the Audit Committee concluded that the Company’s previously issued financial statements for the Affected Periods, in each case,
Post-IPOBalance Sheet and the Company’s audited financial statements included in the First Amended Filing and for the unaudited condensed financial statements for the periods ended March 31, 2021, June 30, 2021 and September 30, 2021, which will be amended in separate Form
10-Q/Afilings. See Note 1 regarding the ability of the Company to continue as a going concern as a result of the restatements.
Impact of the Restatement
The impact of the restatement on the balance sheet, statement of operations and statement of cash flows for the Affected Periods is presented below.