Restatement of Previously Issued Financial Statements

3 Months Ended

Mar. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Restatement of Previously Issued Financial Statements

 Note 2 —Restatement of Previously Issued Financial Statements

On April 12, 2021, the Acting Director of the Division of Corporation Finance and Acting Chief Accountant of the SEC together issued a statement regarding the accounting and reporting considerations for warrants issued by special purpose acquisition companies entitled “Staff Statement on Accounting and Reporting Considerations for Warrants Issued by Special Purpose Acquisition Companies (“SPACs”)” (the “SEC Statement”). Specifically, the SEC Statement focused on certain settlement terms and provisions related to certain tender offers following a business combination, which terms are similar to those contained in the warrant agreement governing the Company’s warrants. As a result of the SEC Statement, the Company reevaluated the accounting treatment of (i) the 8,625,000 redeemable warrants (the “Public Warrants”) that were included in the units issued by the Company in its initial public offering (the “Initial Public Offering”) and (ii) the 6,266,667 redeemable warrants that were issued to the Company’s sponsor in a private placement that closed concurrently with the closing of the Initial Public Offering (together with the Public Warrants, the “Warrants”). The Company previously accounted for the Warrants as components of equity.

In further consideration of the guidance in Accounting Standards Codification (“ASC”) 815-40, Derivatives and Hedging — Contracts in Entity’s Own Equity (“ASC 815”), the Company concluded that a provision in the warrant agreement related to certain tender or exchange offers precludes the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815, the Warrants should be recorded as derivative liabilities on the balance sheet and measured at fair value at inception (on the date of the Initial Public Offering) and at each reporting date in accordance with ASC 820, Fair Value Measurement, with changes in fair value recognized in the Statements of Operations in the period of change.

In accordance with ASC Topic 340, Other Assets and Deferred Costs, as a result of the classification of the Warrants as derivative liabilities, the Company expensed a portion of the offering costs originally recorded as a reduction in equity. The portion of offering costs that was expensed was determined based on the relative fair value of the Public Warrants and shares of Class A common stock included in the Units.

The Company’s accounting for the Warrants as components of equity instead of as derivative liabilities did not have any effect on the Company’s previously reported cash.

The following tables summarize the effect of the revision on each financial statement line item as of the date indicated:

	As of February 12, 2020
	As Previously			Restatement
	Reported			Adjustments			As Restated
Balance Sheet
Total assets	$	348,644,865		$	-		$	348,644,865
Liabilities and stockholders’ equity
Total current liabilities	$	1,346,020		$	-		$	1,346,020
Deferred underwriting commissions		12,075,000			-			12,075,000
Derivative warrant liabilities		-			23,027,500			23,027,500
Total liabilities		13,421,020			23,027,500			36,448,520
Class A common shares, $0.0001 par value; shares subject to possible redemption		330,223,840			(23,027,500	)		307,196,340
Stockholders’ equity
Prefered shares- $0.0001 par value		-			-			-
Class A common shares - $0.0001 par value		148			230			378
Class B common shares - $0.0001 par value		863			-			863
Additional paid-in-capital		5,032,602			777,210			5,809,812
Accumulated deficit		(33,608	)		(777,440	)		(811,048	)
Total stockholders’ equity		5,000,005			-			5,000,005
Total liabilities and stockholders’ equity	$	348,644,865		$	-		$	348,644,865