RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
|8 Months Ended|
Sep. 30, 2021
|RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS|
|RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS||
NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
After preparing and filing the Company's unaudited condensed financial statements as of September 30, 2021, the Company concluded it should restate its previously issued financial statements to classify all Class A common stock subject to possible redemption in temporary equity. In accordance with ASC 480, paragraph 10-S99, redemption provisions not solely within the control of the Company require common stock subject to redemption to be classified outside of permanent equity. The Company had previously determined the shares of Class A Common Stock subject to possible redemption to be equal to the redemption value of $10.00 per share of Class A Common Stock while also taking into consideration that a redemption cannot result in net tangible assets being less than $5,000,001. Management has also determined that the shares of Class A Common Stock issued in connection with the Initial Public Offering can be redeemed or become redeemable subject to the occurrence of future events considered outside the Company’s control. In connection with the change in presentation for the Class A common stock subject to possible redemption , the Company has restated its earnings per share calculation to allocate income and losses shared pro rata between the two classes of shares. This presentation contemplates a Business Combination as the most likely outcome, in which case, both classes of shares participate pro rata in the income and losses of the Company.
Therefore, 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 changes and has determined that the related impact was material to the (i) previously issued initial balance sheet dated June 11, 2021 as filed with the SEC on June 17, 2021; and (ii) the unaudited condensed interim financials for the quarterly period ended June 30, 2021, as filed with the SEC on August 12, 2021 (“the Affected Periods”). Therefore, the Company, in consultation with its Audit Committee, concluded that the Affected Periods should be restated to present (i) all Class A common stock subject to possible redemption as temporary equity, (ii) to recognize accretion from the initial book value to redemption value at the time of its Initial Public Offering, and (iii) to correct its earnings per share calculation. As such, the Company is reporting these restatements to those Affected Periods in this quarterly report.
There has been no change in the Company’s total assets, liabilities, operating results or cash flows.
The impact of the restatements noted above on the Company’s previously issued financial statements is as follows:
The entire disclosure for reporting error correction.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef