Quarterly report pursuant to Section 13 or 15(d)

Revision of previously issued financial statements

v3.21.2
Revision of previously issued financial statements
9 Months Ended
Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract]  
Revision of previously issued financial statements
NOTE 2 — REVISION OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
In connection with the preparation of the Company’s financial statements as of September 30, 2021, the Company concluded it should revise its financial statements to classify all Public Shares in temporary equity. In accordance with the SEC and its staff’s guidance on redeemable equity instruments, ASC 480, paragraph
10-S99,
redemption provisions not solely within the control of the Company require ordinary shares subject to redemption to be classified outside of permanent equity. The Company previously determined the Class A ordinary shares subject to possible redemption to be equal to the redemption value of $10.00 per Class A ordinary shares while also taking into consideration a redemption cannot result in net tangible assets being less than $5,000,001. Previously, the Company did not consider redeemable shares classified as temporary equity as part of net tangible assets. Effective with these financial statements, the Company revised this interpretation to include temporary equity in net tangible assets. Accordingly, effective with this filing, the Company presents all redeemable Class A ordinary shares as temporary equity and recognizes accretion from the initial book value to redemption value at the time of its Initial Public Offering and in accordance with ASC 480
.
As a result, management has noted a reclassification adjustment related to temporary equity and permanent equity. This resulted in an adjustment to the initial carrying value of the Class A ordinary shares subject to possible redemption with the offset recorded to additional
paid-in
capital (to the extent available), accumulated deficit and Class A ordinary shares. The Company will present this revision in a prospective manner in all future filings. Under this approach, the previously issued Initial Public Offering Balance Sheet and Form
10-Q’s
will not be amended, but historical amounts presented in the current and future filings will be recast to be consistent with the current presentation, and an explanatory footnote will be provided.
In connection with the change in presentation for the Class A ordinary shares subject to redemption, the Company also revised its income (loss) per ordinary share calculation to allocate net income (loss) evenly to Class A and Class B ordinary shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of ordinary shares share pro rata in the income (loss) of the Company.
There has been no change in the Company’s total assets, liabilities, or operating results.
The impact of the revision on the Company’s financial statements is reflected in the following table.
 
 
  
As Previously

Reported
 
  
Adjustment
 
  
As Revised
 
Balance Sheet as of December 31, 2020 (audited)
  
     
  
     
  
     
Class A ordinary shares subject to possible redemption
  
$
337,111,240
 
  
$
62,888,760
 
  
$
400,000,000
 
Class A ordinary shares
  
$
629
 
  
$
(629
  
$
—  
 
Additional
paid-in
capital
  
$
25,059,489
 
  
$
(25,059,489
  
$
—  
 
Accumulated deficit
  
$
(20,061,109
  
$
(37,828,642
  
$
(57,889,751
Total Shareholders’ Equity (Deficit)
  
$
5,000,009
 
  
$
(62,888,760
  
$
(57,888,751
Statement of Operations for the Period from October 5, 2020 (IPO) through December 31, 2020 (audited)
  
     
  
     
  
     
Basic and diluted weighted average shares outstanding, Class A redeemable ordinary shares subject to possible redemption
  
 
40,000,000
 
  
 
—  
 
  
 
40,000,000
 
Basic and diluted net income (loss) per share, Class A redeemable ordinary shares subject to possible redemption
  
$
—  
 
  
$
—  
 
  
$
(0.40
Basic and diluted weighted average shares outstanding,
Non-redeemable
Class B ordinary shares
  
 
10,000,000
 
  
 
—  
 
  
 
10,000,000
 
Basic and diluted net income (loss) per share,
Non-redeemable
Class B ordinary shares
  
$
(2.01
  
$
1.61
 
  
$
(0.40
Statement of Cash Flows for the Period from October 5, 2020 (IPO) through December 31, 2021 (audited)
  
     
  
     
  
     
Initial classification of Class A ordinary shares subject to possible redemption
  
$
356,167,970
 
  
$
43,832,030
 
  
$
400,000,000
 
Change in value of Class A ordinary shares subject to possible redemption
  
 
(19,056,730
  
 
19,056,730
 
  
 
—