Restatement of Previously Furnished Financial Statements

6 Months Ended

Jun. 30, 2021

Restatement of Previously Furnished Financial Statements [Abstract]

Restatement of Previously Furnished Financial Statements

Note 2 – Restatement of Previously Furnished Financial Statements

On April 12, 2021, the Staff of the SEC issued a statement entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies.” In the statement, the SEC Staff, among other things, highlighted potential accounting implications of certain terms that are common in warrants issued in connection with the Initial Public Offerings of special purpose acquisition companies such as the Company. As a result of the Staff statement and in light of evolving views as to certain provisions commonly included in warrants issued by special purpose acquisition companies, the Company re-evaluated the accounting for the Public Warrants and the Private Placement Warrants (collectively, the “Warrants”) under ASC 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity, and concluded that they do not meet the criteria to be classified in shareholders’ equity. Since the Warrants meet the definition of a derivative under ASC 815-40, the Company has restated the financial statements to classify the Warrants as liabilities on the balance sheet at fair value, with subsequent changes in their respective fair values recognized in the statement of operations at each reporting date.

After consultation with the Company’s independent registered public accounting firm, the Company’s management and the audit committee of the Company’s Board of Directors concluded that it is appropriate to restate the Company’s previously issued audited balance sheet as of March 26, 2021, as previously reported in its Form 8-K (the “Restatement”). The restated classification and reported values of the Warrants as accounted for under ASC 815-40 are included in the financial statements herein.

The following summarizes the effect of the Restatement on each financial statement line item as of the date of the Company’s consummation of its Initial Public Offering.

As of March 26, 2021	As Reported			Adjustment			As Adjusted
Balance Sheet
Warrant Liabilities	$	—		$	17,264,085		$	17,264,085
Total Liabilities		10,028,518			17,264,085			27,292,603
Shares Subject to Redemption		237,671,570			(17,264,080	)		220,407,490
Class A Ordinary Shares		123			173			296
Class B Ordinary Shares		719			—			719
Additional Paid in Capital		5,014,717			634,189			5,648,906
(Accumulated Deficit)		(15,549	)		(634,367	)		(649,916	)
Total Shareholders’ Equity	$	5,000,010		$	(5	)	$	5,000,005