Quarterly report pursuant to Section 13 or 15(d)

Revision of Previously Issued Financial Statements

v3.21.2
Revision of Previously Issued Financial Statements
9 Months Ended
Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract]  
Revision of Previously Issued Financial Statements
Note 2—Revision of Previously Issued Financial Statements
In connection with the preparation of the Company’s financial statements as of September 30, 2021, management determined it should revise its previously reported financial statements. The Company previously determined the Class A ordinary shares subject to possible redemption to be equal to the redemption value of $10.00 per Class A ordinary share while also taking into consideration a redemption cannot result in net tangible assets being less than $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. Management determined that the Class A ordinary shares issued during the Initial Public Offering 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. Therefore, management concluded that the redemption value should include all Class A ordinary shares subject to possible redemption, resulting in the Class A ordinary shares subject to possible redemption being equal to their redemption value. 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 ordinary shares subject to possible redemption with the offset recorded to additional paid-in capital (to the extent available), accumulated deficit and Class A ordinary shares. The Company will present this revision in a prospective manner in all future filings. Under this approach, the previously issued IPO Balance Sheet and Form 10-Qs will not be amended, but historical amounts presented in the current and future filings will be recast to be consistent with the current presentation.
In connection with the change in presentation for the Class A ordinary shares subject to redemption, the Company also revised its earnings per share calculation to allocate net income (loss) evenly to Class A and Class B ordinary shares. This presentation contemplates a Business Combination as the most likely outcome,
There has been no change in the Company’s total assets, liabilities or operating results.
The impact of the revision on the Company’s financial statements is reflected in the following table.
 
 
  
As Previously
Reported
 
 
Adjustments
 
 
As Restated
 
Balance Sheet as of December 31, 2020
  
     
 
     
 
     
Class A ordinary shares subject to possible redemption
  
$
354,627,720
 
 
$
47,872,280
 
 
$
402,500,000
 
Class A ordinary shares
  
 
479
 
 
 
(479
 
 
—  
 
Additional Pain in Capital
  
 
9,867,922
 
 
 
(9,867,922
 
 
—  
 
Accumulated Deficit
  
 
(4,869,404
 
 
(38,003,879
 
 
(42,873,283
Total Shareholders’ Equity (Deficit)
  
 
5,000,003
 
 
 
(47,872,280
 
 
(42,872,277