Restatement of Previously Issued Financial Statements | Note 3 —Restatement of Previously Issued Financial Statements In preparation of the Company’s unaudited condensed financial statements for the quarterly period ended September 30, 2021, the Company concluded it should restate its previously issued financial statements to classify all Class A common stock subject to possible redemption in temporary equity. In accordance with the SEC and its staff’s guidance on redeemable equity instruments in ASC 480-10-S99, redemption provisions not solely within the control of the Company, require common stock subject to redemption to be classified outside of permanent equity. The Company previously determined the Class A common stock subject to possible redemption to be equal to the redemption value of $10.00 per Class A common stock while also taking into account that a redemption cannot result in net tangible assets being less than $5,000,001 and therefore classified a portion of its Class A common stock in permanent equity. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with the 10-Q/A filing, the Company revised this interpretation to include temporary equity in net tangible assets. 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 temporary equity should include all 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 a restatement 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 corrections and has determined that the related impact was material to the previously filed financial statements that contained the error. In connection with the change in presentation for the Class A common stock subject to possible redemption, the Company also restated its net income (loss) per share calculated to allocate net income (loss) pro rata 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 following table summarizes the impact of the restatement on specific line items in the Company’s previously issued financial statements ( As Adjustments As Restated Balance Sheet as of February 26, 2021 (audited): Class A common stock subject to possible redemption 312,303,500 32,696,500 345,000,000 Class A common stock 327 (327 ) - Additional paid-in capital 5,501,637 (5,501,637 ) - Accumulated deficit (502,822 ) (27,194,536 ) (27,697,358 ) Total stockholders’ equity (deficit) 5,000,005 (32,696,500 ) (27,696,495 ) Number of Class A common shares subject to possible redemption 33,010,450 1,489,550 34,500,000 Balance Sheet as of March 31, 2021 (unaudited): Class A common stock subject to possible redemption 309,510,590 35,489,410 345,000,000 Class A common stock 355 (355 ) - Additional paid-in capital 8,274,523 (8,274,523 ) - Accumulated deficit (3,275,734 ) (27,214,532 ) (30,490,266 ) Total stockholders’ equity (deficit) 5,000,007 (35,489,410 ) (30,489,403 ) Number of Class A common shares subject to possible redemption 30,951,059 3,548,941 34,500,000 Balance Sheet as of June 30, 2021 (unaudited): Class A common stock subject to possible redemption 309,072,060 35,927,940 345,000,000 Class A common stock 359 (359 ) - Additional paid-in capital 8,713,049 (8,713,049 ) - Accumulated deficit (3,714,268 ) (27,214,532 ) (30,928,800 ) Total stockholders’ equity (deficit) 5,000,003 (35,927,940 ) (30,927,937 ) Number of Class A common shares subject to possible redemption 30,907,206 3,592,794 34,500,000 Statement of Operations for the Three Months Ended March 31, 2021 (unaudited): Basic and diluted weighted average shares outstanding of Class A common stock subject to possible redemption 34,500,000 (21,466,667 ) 13,033,333 Basic and diluted net loss per share, Class A common stock subject to possible redemption - (0.15 ) (0.15 ) Basic and diluted weighted average shares outstanding of Class B non-redeemable common stock 8,625,000 - 8,625,000 Basic and diluted net loss per share, Class B non-redeemable common stock (0.38 ) 0.23 (0.15 ) Statement of Operations for the Three Months Ended June 30, 2021 (unaudited): Basic and diluted weighted average shares outstanding of Class A common stock subject to possible redemption 34,500,000 - 34,500,000 Basic and diluted net loss per share, Class A common stock subject to possible redemption - (0.01 ) (0.01 ) Basic and diluted weighted average shares outstanding of Class B non-redeemable common stock 8,625,000 - 8,625,000 Basic and diluted net loss per share, Class B non-redeemable common stock (0.05 ) 0.04 (0.01 ) Statement of Operations for the Six Months Ended June 30, 2021 (unaudited): Basic and diluted weighted average shares outstanding of Class A common stock subject to possible redemption 34,500,000 (10,674,033 ) 23,825,967 Basic and diluted net loss per share, Class A common stock subject to possible redemption - (0.11 ) (0.11 ) Basic and diluted weighted average shares outstanding of Class B non-redeemable common stock 8,625,000 - 8,625,000 Basic and diluted net loss per share, Class B non-redeemable common stock (0.43 ) 0.32 (0.11 ) Statement of Cash Flows for the three months ended March 31, 2021 (unaudited): Initial classification of common stock subject to possible redemption 309,510,590 (309,510,590 ) - Accretion for Class A common stock to possible redemption amount - 27,238,669 27,238,669 Statement of Cash Flows for the six months ended June 30, 2021 (unaudited): Initial classification of common stock subject to possible redemption 309,510,590 (309,510,590 ) - Change in value of common stock subject to possible redemption (438,530 ) 438,530 - Accretion for Class A common stock to possible redemption amount - 27,238,669 27,238,669 |