Revision of Prior Period Financial Statements

6 Months Ended

Jun. 30, 2021

Condensed Financial Information Disclosure [Abstract]

Revision of Prior Period Financial Statements

Note 2 — Revision of Prior Period Financial Statements

As a result of recent guidance to Special Purpose Acquisition Companies by the SEC regarding redeemable equity instruments, the Company revisited its application of ASC 480-10-S99 on the Company’s financial statements. The Company had previously classified a portion of its Public Subunits (and the underlying shares of common stock) in permanent equity. Subsequent to the re-evaluation, the Company’s management concluded that all of its Public Subunits should be classified as temporary equity. The identified errors impacted the Company’s Form 8-K filing on March 19, 2021 containing the IPO balance sheet as of March 15, 2021 and Form 10-Q filing on July 27, 2021 containing financial statements as of March 31, 2021. 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 errors and has determined that the related impacts were not material to any prior 8-K and 10-Q reports, but that correcting the cumulative impact of such errors would be significant to our statement of operations for the three months ended June 30, 2021. Accordingly, the Company has corrected such immaterial errors by adjusting its prior financial statements and classified all Public Subunits as temporary equity. The Company will also correct previously reported financial information for such immaterial errors in future filings, as applicable. The following summarizes the effect of the revision on each financial statement line item.

Impact of the Revision

The impact of the revision on the audited balance sheet as of March 15, 2021 and unaudited interim condensed financial statements as of and for the three months ended March 31, 2021 are presented below.

	As Previously Reported			Adjustments			As Revised
Balance Sheet at March 15, 2021
Common stock subject to possible redemption	$	116,095,120		$	3,904,880		$	120,000,000
Common stock		465			(39	)		426
Additional paid-in capital		5,004,068			(4,158,254	)		845,814
Balance Sheet at March 31, 2021
Common stock subject to possible redemption	$	128,744,590		$	4,255,935		$	133,000,525
Common stock		459			(43	)		416
Additional paid-in capital		5,084,297			(4,255,892	)		828,405
Statement of Operations for the three months ended March 31, 2021
Basic and diluted weighted average shares outstanding, common stock subject to redemption		2,059,408			247,259			2,306,667
Basic and diluted weighted average shares outstanding, common stock		3,856,614			(514,481	)		3,342,133
Basic and diluted net income (loss) per share, common stock subject to redemption	$	0.00		$	2.93		$	2.93
Basic and diluted net income (loss) per share, common stock not subject to redemption	$	(0.02	)	$	(2.03	)	$	(2.05	)
Statement of Cash Flows for the three months ended March 31, 2021
Supplemental disclosure of cash flow information
Initial value of common stock subject to possible redemption	$	115,841,700		$	8,572,213		$	124,413,913
Change in value of common stock subject to possible redemption	$	12,902,890		$	(12,902,365	)	$	-
Reclassification of offering costs related to public shares	$	-		$	(2,886,166	)	$	(2,886,166	)
Subsequent measurement of common stock subject to redemption	$	-		$	11,472,253		$	11,472,253
Subsequent measurement of common stock subject to redemption (interest earned on trust account)	$	-		$	525		$	525