The Company has followed ASC 480 in accounting for its Class A ordinary shares subject to redemption. This included recording the Public Shares in permanent equity on its balance sheet. However, the Company maintained shareholders’ equity of at least $5,000,001 as the Company will not redeem Public Shares that would cause the Company’s net tangible assets to be less than $5,000,001 following such redemptions.

In September 2021, the Company’s management re-evaluated and ultimately concluded that the classification of $5,000,001 in permanent equity was not appropriate and that the Class A ordinary shares should be reclassified as temporary equity. In connection with the preparation of the IPO balance sheet as of August 13, 2021, the Company concluded that it would change its accounting and reflect the full amount of all redeemable Class A ordinary shares in temporary equity. This was a change from the Company’s previous accounting practice whereby it maintained shareholders’ equity of at least $5,000,001 as the Company will not redeem Class A ordinary shares that would cause the Company’s net tangible assets to be less than $5,000,001 following such redemptions.

On December 14, 2021, the Company’s management and the Audit Committee concluded that the Company’s previously issued IPO balance sheet should be restated to classify all of the Class A ordinary shares as temporary equity and should no longer be relied upon. As a result, the Company is restating its IPO balance sheet herein.

The impact of the restatement on the balance sheet as of August 13, 2021 is presented below:

	As of August 13, 2021
	As Previously Reported			Restatement Adjustment			As Restated
Balance Sheet
Ordinary shares subject to possible redemption		261,299,500			58,113,000			319,412,500
Shareholders’ equity (deficit)
Class A ordinary shares - $0.0001 par value		575			(575	)		—
Additional paid-in-capital		14,650,236			(14,650,236	)		—
Accumulated deficit		(9,651,592	)		(43,462,189	)		(53,113,781	)
Total shareholders’ equity (deficit)		5,000,010			(58,113,000	)		(53,112,990	)