Restatement of Previously Reported Financial Statements

3 Months Ended

Mar. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Reported Financial Statements

Note 9 — Restatement of Previously Reported Financial Statements

Following the filing of the quarterly report for the period ended September 30, 2021, filed with the SEC on November 9, 2021, the Company, having performed further assessment, concluded that, effective with its financial statements for quarterly period ended September 30, 2021, it should restate its prior filed financial information for the period ended March 31, 2021, to classify all Class A ordinary shares subject to possible redemption in temporary equity and to recognize the accretion from the initial book value to the redemption value, and it should restate its prior filed financial information for the period ended June 30, 2021, to correct the recognition of the accretion from the initial book value to redemption value. In accordance with ASC 480-10-S99, redemption provisions not solely within the control of the Company require shares subject to redemption to be classified outside of permanent equity. The Company had previously classified a portion of its Class A ordinary shares in permanent equity, or total shareholders’ equity (deficit). Also, in connection with the change in presentation for the Class A ordinary shares subject to possible redemption, the Company also restated its earnings per share calculation to allocate income and losses shared pro rata between Class A ordinary shares subject to possible redemption and non-redeemable ordinary shares for the affected periods. This presentation contemplates a Business Combination as the most likely outcome, in which case, Class A ordinary shares subject to possible redemption and non-redeemable ordinary shares share pro rata in the income and losses of the Company. As a result, the Company restated its previously filed financial information to present all redeemable Class A ordinary shares as temporary equity and to recognize a remeasurement adjustment from the initial book value to redemption value at the time of its Initial Public Offering.

The following tables contain unaudited quarterly financial information for the quarterly period ended March 31, 2021 that has been updated to reflect the restatement. The restatement had no impact on net loss, net cash flows from operating, investing or financing activities. The financial information that has been previously filed or otherwise reported for the quarterly period ended March 31, 2021 is superseded by the information in this Quarterly Report, and should no longer be relied upon.

The change in the carrying value of the redeemable Class A ordinary shares at March 31, 2021 resulted in a reclassification of approximately 1.3 million Class A ordinary shares from permanent equity to temporary equity. The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported unaudited balance sheet as of March 31, 2021:

As of March 31, 2021	As Previously Reported			Adjustment			As Restated
Total assets	$	324,159,830					$	324,159,830
Total liabilities	$	11,749,240					$	11,749,240
Class A ordinary shares subject to possible redemption		307,410,580			12,589,420			320,000,000
Preference shares		—			—			—
Class A ordinary shares		230			(126	)		104
Class B ordinary shares		800			—			800
Additional paid-in capital		5,541,749			(5,541,749	)		—
Accumulated deficit		(542,769	)		(7,047,545	)		(7,590,314	)
Total shareholders’ equity (deficit)	$	5,000,010		$	(12,589,420	)	$	(7,589,410	)
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Equity (Deficit)	$	324,159,830		$	—		$	324,159,830

The Company’s statement of shareholders’ equity (deficit) has been restated to reflect the changes to the impacted shareholders’ equity accounts for the three months ended March 31, 2021 in the table below:

Statement of Shareholders’ Equity (Deficit) as of March 31, 2021 (unaudited)	As Previously Reported			Adjustment			As Restated
Sale of Class A ordinary shares in initial public offering, gross	$	320,000,000		$	(320,000,000	)	$	—
Offering costs	$	(17,471,641	)	$	17,471,641		$	—
Sale of private placement shares to Sponsor in private placement	$	10,400,000		$	(10,400,000	)	$	—
Shares subject to possible redemption	$	(307,410,580	)	$	307,410,580		$	—
Sale of private placement shares to Sponsor in private placement, net of offering costs	$	—		$	10,383,883		$	10,383,883
Accretion of Class A ordinary shares subject to redemption	$	—		$	(17,455,524	)	$	(17,455,524	)
Total shareholders’ equity (deficit)	$	5,000,010		$	(12,589,420	)	$	(7,589,410	)

The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the three months ended March 31, 2021:

Form 10-Q: Three Months Ended March 31, 2021
	As Previously Reported		Adjustment			As Restated
Supplemental Disclosure of Noncash Financing Activities:
Initial value of Class A ordinary shares subject to possible redemption	$	307,243,740	$	(307,243,740	)	$	—
Change in value of Class A ordinary shares subject to possible redemption	$	166,840	$	(166,840	)	$	—

The impact to the reported amounts of weighted average shares outstanding and basic and diluted earnings per share is presented below for the three months ended March 31, 2021:

	EPS for Class A ordinary shares
	As Previously Reported			Adjustment			As Restated
Form 10-Q (March 31, 2021) - three months ended March 31, 2021
Weighted average shares outstanding		30,725,168			(23,258,501	)		7,466,667
Basic and diluted earnings per ordinary share	$	—		$	(0.04	)	$	(0.04	)
	EPS for Class B ordinary shares
	As Reported			Adjustment			As Restated
Form 10-Q (March 31, 2021) - three months ended March 31, 2021
Weighted average shares outstanding		7,773,461			(297,461	)		7,476,000
Basic and diluted earnings per ordinary share	$	(0.07	)	$	0.03		$	(0.04	)