Restatement of Previously Issued Financial Statements | Note 2 —Restatement of Previously Issued Financial Statements In April 2021, the Company concluded that, because of a misapplication of the accounting guidance related to its Public and Private Placement warrants the Company issued in October 2020, the Company’s previously issued financial statements for the period ended October 26, 2020 and the year ended December 31, 2020 should no longer be relied upon. As such, the Company is restating its financial statements for the Affected Periods included in this Annual Report. On April 12, 2021, the staff of the Securities and Exchange Commission (the “SEC Staff”) issued a public statement entitled “Staff Statement on Accounting and Reporting Considerations for Warrants issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Staff Statement”). In the SEC Staff Statement, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to be classified as liabilities on the SPAC’s balance sheet as opposed to equity. Since issuance on October 26, 2020, the Company’s warrants were accounted for as equity within the Company’s previously reported balance sheets, and after discussion and evaluation, including with the Company’s independent auditors, management concluded that the warrants should be presented as liabilities with subsequent fair value remeasurement. Historically, the Warrants were reflected as a component of equity as opposed to liabilities on the balance sheets and the statements of operations did not include the subsequent non-cash changes in estimated fair value of the Warrants, based on our application of FASB ASC Topic 815-40, Derivatives and Hedging, Contracts in Entity’s Own Equity (“ASC 815-40). The views expressed in the SEC Staff Statement were not consistent with the Company’s historical interpretation of the specific provisions within its warrant agreement and the Company’s application of ASC 815-40 to the warrant agreement. The Company reassessed its accounting for Warrants issued on October 26, 2020, in light of the SEC Staff’s published views. Based on this reassessment, management determined that the Warrants should be classified as liabilities measured at fair value upon issuance, with subsequent changes in fair value reported in the Company Statement of Operations each reporting period. Impact of the Restatement The impact of the restatement on the balance sheets, statements of operations and statements of cash flows is presented below. The restatement had no impact on net cash flows from operating, investing or financing activities. As of December 31, 2020 As Previously Reported Restatement Adjustment As Restated Balance Sheet Total assets $ 239,306,203 $ - $ 239,306,203 Liabilities, redeemable non-controlling interest and stockholders’ equity Total current liabilities $ 401,845 $ - $ 401,845 Deferred legal fees 187,500 - 187,500 Deferred underwriting commissions 7,610,750 - 7,610,750 Warrant liabilities - 42,588,487 42,588,500 Total liabilities 8,200,095 42,588,487 50,788,595 Class A common stock, $0.0001 par value; shares subject to possible redemption 215,965,000 (32,447,380 ) 183,517,620 Stockholders’ equity Preferred stock- $0.0001 par value - - - Class A common stock - $0.0001 par value 213 325 538 Class B common stock - $0.0001 par value 593 - 593 Additional paid-in-capital 15,463,913 12,028,186 27,492,099 Accumulated deficit (312,126 ) (21,316,943 ) (21,629,069 ) Total Rice Acquisition Corp equity 15,152,593 (41,735,825 ) 5.864,161 Non-controlling interest in subsidiary (11,485 ) (852,675 ) (864,160 ) Total stockholders’ equity 15,141,108 - 5,000,001 Total liabilities and stockholders’ equity $ 239,306,203 $ - $ 239,306,203 Period From September 1, 2020 (Inception) Through December 31, 2020 As Previously Reported Restatement Adjustment As Restated Statement of Operations and Comprehensive Loss Loss from operations $ (356,782 ) $ - $ (356,782 ) Compensation expense attributable to the sale of private placement warrants - (1,654,000 ) (1,654,000 ) Offering costs allocated to warrant liability - (787,138 ) (787,138 ) Change in fair value of warrant liabilities - (19,728,480 ) (19,728,480 ) Interest income 32,171 - 32,171 Total other (expense) income 32,171 (22,169,618 ) (22,137,447 ) Loss before income tax expense (324,611 ) (22,169,618 ) (22,494,229 ) Net loss attributable to non-controlling interest (12,485 ) (852,675 ) (865,160 ) Net loss $ (312,126 ) $ (21,316,943 ) $ (21,629,069 ) Basic and Diluted weighted-average Class A common shares outstanding 23,725,000 - 23,725,000 Basic and Diluted net loss per Class A common shares $ 0.00 - $ 0.00 Basic and Diluted weighted-average Class B common shares outstanding 5,685,606 - 5,685,606 Basic and Diluted net loss per Class B common shares $ (0.05 ) (3.75 ) $ (3.80 ) Period From September 1, 2020 (Inception) Through December 31, 2020 As Previously Reported Restatement Adjustment As Restated Statement of Cash Flows Net loss $ (324,611 ) $ (22,169,618 ) $ (22,494,229 ) Change in fair value of warrant liabilities - 19,728,840 19,728,840 Compensation expense attributable to the sale of private placement warrants - 1,654,000 1,654,000 Offering costs allocated to warrant liability - 787,138 787,138 Net cash used in operating activities (745,445 ) - (745,445 ) Net cash used in investing activities (237,276,000 ) - (237,276,000 ) Net cash provided by financing activities 239,356,612 - 239,356,612 Net change in cash $ 1,335,167 $ - $ 1,335,167 As of October 26, 2020 As Previously Reported Restatement Adjustment As Restated Balance Sheet Total assets $ 240,445,800 $ - $ 240,445,800 Liabilities, redeemable non-controlling interest and stockholders’ equity Total current liabilities $ 1,256,827 $ - $ 1,256,827 Deferred legal fees 187,500 - 187,500 Deferred underwriting commissions 7,610,750 - 7,610,750 Warrant liabilities - 22,860,020 22,860,020 Total liabilities 9,055,077 22,860,020 31,915,097 Class A common stock, $0.0001 par value; shares subject to possible redemption 215,965,000 (12,434,304 ) 203,530,696 Stockholders’ equity Preferred stock- $0.0001 par value - - - Class A common stock - $0.0001 par value 213 124 441 Class B common stock - $0.0001 par value 618 - 337 Additional paid-in-capital 15,560,408 (7,890,816 ) 7,669,592 Accumulated deficit (131,265 ) (2,441,138 ) (2,572,403 ) Total Rice Acquisition Corp equity 15,429,974 (10,331,830 ) 5,098,144 Non-controlling interest in subsidiary (4,251 ) (93,886 ) (98,137 ) Total stockholders’ equity 15,425,723 (10,425,716 ) 5,000,007 Total liabilities and stockholders’ equity $ 240,445,800 $ - $ 240,445,800 |