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RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
 12 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
NOTE 2. RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS
The Company had recognized a liability upon closing of their initial public offering in May 2021 for a portion of the underwriters’ commissions which was contingently payable upon closing of a future business combination, with the offsetting entry resulting in an initial discount to the securities sold in the initial public offering. On June 6, 2022, Goldman Sachs & Co. LLC irrevocably waived its rights to the deferred underwriting commissions due under the underwriting agreement. The Company did not recognize the waiver in the Company’s Form
10-Qs
for the quarterly periods ended June 30, 2022 and September 30, 2022 (the “Affected Quarterly Periods”). Upon subsequent review and analysis, management concluded that the Company should have recognized the extinguishment of contingent liability allocated to Public Shares as an adjustment to the carrying value of the Class A ordinary shares subject to possible redemption.
Therefore, the Company’s management and the Audit Committee of the Company’s Board of Directors (the “Audit Committee”) concluded that the Company’s Affected Quarterly Periods should no longer be relied upon and that it is appropriate to restate them. As such, the Company will restate its financial statements in this Form
10-K.
The previously presented Affected Quarterly Period should no longer be relied upon.
Impact of the Restatement
The impact of the restatement on the unaudited interim balance sheets, statements of changes in stockholders’ deficit and statements of cash flows for the affected period is presented below. The restatement had no impact on net cash flows from operating, investing or financing activities.
 
Balance Sheets:
The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of June 30, 2022:
 
 
  
As of June 30, 2022
 
 
  
As Previously
Reported
 
  
Restatement
Adjustment
 
  
As Restated
 
Total Assets
  
$
276,393,463
 
  
$
—
  
 
  
$
276,393,463
 
  
 
 
 
  
 
 
 
  
 
 
 
Total current liabilities
  
 
412,495
 
  
 
—
  
 
  
 
412,495
 
Deferred underwriting commissions
  
 
9,625,000
 
  
 
(3,609,375
) 
  
 
6,015,625
 
  
 
 
 
  
 
 
 
  
 
 
 
Total liabilities
  
 
10,037,495
 
  
 
(3,609,375
) 
  
 
6,428,120
 
  
 
 
 
  
 
 
 
  
 
 
 
Class A ordinary shares subject to possible redemption
  
 
275,043,954
 
  
 
—
  
 
  
 
275,043,954
 
Preferred shares
  
 
—
  
 
  
 
—
  
 
  
 
—
  
 
Class A ordinary shares
  
 
91
 
  
 
—
  
 
  
 
91
 
Class B ordinary shares
  
 
688
 
  
 
—
  
 
  
 
688
 
Additional
paid-in
capital
  
 
—
  
 
  
 
—
  
 
  
 
—
  
 
Accumulated deficit
  
 
(8,688,765
) 
  
 
3,609,375
 
  
 
(5,079,390
) 
  
 
 
 
  
 
 
 
  
 
 
 
Total shareholders’ deficit
  
 
(8,687,986
) 
  
 
3,609,375
 
  
 
(5,078,611
) 
  
 
 
 
  
 
 
 
  
 
 
 
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit
  
$
276,393,463
 
  
$
—
  
 
  
$
276,393,463
 
  
 
 
 
  
 
 
 
  
 
 
 
The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported balance sheet as of September 30, 2022:
 
 
  
As of September 30, 2022
 
 
  
As Previously
Reported
 
  
Restatement
Adjustment
 
  
As Restated
 
Total Assets
  
$
276,978,583
 
  
$
—
  
 
  
$
276,978,583
 
  
 
 
 
  
 
 
 
  
 
 
 
Total current liabilities
  
 
467,636
 
  
 
—
  
 
  
 
467,636
 
Deferred underwriting commissions
  
 
9,625,000
 
  
 
(3,609,375
) 
  
 
6,015,625
 
  
 
 
 
  
 
 
 
  
 
 
 
Total liabilities
  
 
10,092,636
 
  
 
(3,609,375
) 
  
 
6,483,261
 
  
 
 
 
  
 
 
 
  
 
 
 
Class A ordinary shares subject to possible redemption
  
 
275,905,944
 
  
 
—
  
 
  
 
275,905,944
 
Preferred shares
  
 
—
  
 
  
 
—
  
 
  
 
—
  
 
Class A ordinary shares
  
 
91
 
  
 
—
  
 
  
 
91
 
Class B ordinary shares
  
 
688
 
  
 
—
  
 
  
 
688
 
Additional
paid-in
capital
  
 
—
  
 
  
 
—
  
 
  
 
—
  
 
Accumulated deficit
  
 
(9,020,776
) 
  
 
3,609,375
 
  
 
(5,411,401
) 
  
 
 
 
  
 
 
 
  
 
 
 
Total shareholders’ deficit
  
 
(9,019,997
) 
  
 
3,609,375
 
  
 
(5,410,622
) 
  
 
 
 
  
 
 
 
  
 
 
 
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit
  
$
276,978,583
 
  
$
—
  
 
  
$
276,978,583
 
  
 
 
 
  
 
 
 
  
 
 
 
 
 
Statement of Changes in Stockholders’ Deficit:
The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported accumulated deficit in the statement of changes in stockholders’ deficit for the six months ended June 30, 2022:
 
 
  
For the Six Months Ended June 30, 2022
 
 
  
As Previously
Reported
 
  
Restatement
Adjustment
 
  
As Restated
 
Balance—December 31, 2021
    $ (8,053,173 )     $ —        $ (8,053,173 ) 
Adjustment for accretion of Class A ordinary shares subject to possible
redemption amount
      (43,954 )       3,609,375        3,565,421  
Net loss
      (591,638 )       —          (591,638 ) 
    
 
 
     
 
 
     
 
 
  
Balance—June 30, 2022
    $ (8,688,765 )     $ 3,609,375      $ (5,079,390 ) 
    
 
 
     
 
 
     
 
 
  
The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported accumulated deficit in the statement of changes in stockholders’ deficit for the nine months ended September 30, 2022:
 
 
  
For the Nine Months Ended September 30, 2022
 
 
  
As Previously
Reported
 
  
Restatement
Adjustment
 
  
As Restated
 
Balance—December 31, 2021
    $ (8,053,173 )     $ —        $ (8,053,173 ) 
Adjustment for accretion of Class A ordinary shares subject to possible redemption amount
      (905,944 )       3,609,375        2,703,431  
Net loss
      (61,659 )       —          (61,659 ) 
    
 
 
     
 
 
     
 
 
  
Balance—September 30, 2022
    $ (9,020,776 )     $ 3,609,375      $ (5,411,401 ) 
    
 
 
     
 
 
     
 
 
  
Statement of Cash Flows:
The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously reported statement of cash flows for the six months ended June 30, 2022:
 
 
  
For the Six Months Ended June 30, 2022
 
 
  
As Previously
Reported
 
  
Restatement
Adjustment
 
  
As Restated
 
Supplemental disclosure of noncash financing activities:
  
  
  
Extinguishment of deferred underwriting commissions allocated to Public Shares
  
$
—
  
 
  
$
3,609,375
 
  
$
3,609,375
 
The table below presents the effect of the financial statement adjustments related to the restatement discussed above of the Company’s previously
reported statement of cash flows for the nine months ended September 30, 2022:
 
 
  
For the Nine Months Ended September 30,
2022
 
 
  
As Previously
Reported
 
  
Restatement
Adjustment
 
  
As Restated
 
Supplemental disclosure of noncash financing activities:
  
  
  
Extinguishment of deferred underwriting commissions allocated to Public
Shares
  
$
—
  
 
  
$
3,609,375
 
  
$
3,609,375