Item 4.02. Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
The charge mentioned above had been included in the Statement of Changes in Stockholders' Deficit in the Financial Statements. The proper application of the accounting treatment calls for this charge to be included in the Statement of Operations. The proposed restatement reclassifies the charge. There is no impact on the overall stockholders' deficit or any line items in the balance sheet.
The Audit Committee of the Board of Directors (the "Audit Committee") after discussions with management has determined that the Financial Statements should no longer be relied upon due to the error contained therein relating to the issuance of private warrants, as described above.
As a result of the foregoing, on
The Company's management has concluded that in light of the error described
above, a material weakness exists in the Company's internal control over
financial reporting related to the Company's accounting and valuation for
complex financial instruments and that, because of this material weakness, the
Company's disclosure controls and procedures were not effective as of
The Company does not expect the above change will have any impact on its cash position and cash held in the trust account established in connection with the IPO.
The Audit Committee has discussed the matters disclosed in this Current Report
on Form 8-K pursuant to this Item 4.02 with
In addition, the audit report of
Refer to the following table for additional information as to the impact of this
adjustments to the Company's Financial Statements for the period
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Effect of Restatement
As Reported Adjustment As Adjusted STATEMENT OF OPERATIONS FOR THE PERIODJANUARY 25, 2021 (INCEPTION) TODECEMBER 31, 2021 Issuance of private warrants (net of offering costs) - (4,636,666 ) (4,636,666 ) Total other income 7,672,604 (4,636,666 ) 3,035,938 Net Income 7,375,422 (4,636,666 ) 2,738,756 Basic and diluted net income per share, common stock 1.49 (0.94 ) 0.55 STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT FOR THE PERIODJANUARY 25, 2021 (INCEPTION) TODECEMBER 31, 2021 Issuance of private warrants (net of offering costs) (4,636,666 ) 4,636,666 - Net Income 7,375,422 (4,636,666 ) 2,738,756 - Total shareholders' deficit (4,876,037 ) (4,876,037 )
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