Revision of Previously Issued Financial Statements

9 Months Ended

Sep. 30, 2021

Condensed Financial Information Disclosure [Abstract]

Revision of Previously Issued Financial Statements

Note 2 — Revision of Previously Issued Financial Statements

In the Company’s previously issued financial statements, a portion of the public shares were classified as permanent equity to maintain stockholders’ equity of at least $5,000,001 on the basis that the Company can only consummate its initial business combination if the Company has net tangible assets of at least $5,000,001.

Management has re-evaluated the Company’s application of ASC 480-10-99 to its accounting classification of public shares. Upon re-evaluation, management determined that the public shares include certain provisions that require classification of the public shares as temporary equity regardless of the minimum net tangible assets required by the Company to complete its initial business combination.

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 impacts were not material to any previously presented financial statements and such previously presented financial statements could still be relied upon. However, the Company, in consultation with its Audit Committee, concluded that its previously issued financial statements impacted should be revised to report all public shares as temporary equity. As such, the Company is revising in this quarterly report those periods presented herein that would have been impacted.

Impact of the Revision

The impact to the Company’s previously presented financial information contained in this report is presented below:

	As Previously Reported			Revision Adjustment			As Revised
December 31, 2020
Balance Sheet and Statement of Changes in Stockholders’ Equity (Deficit)
Class A common stock, $0.0001 par value; stock subject to possible redemption	$	169,092,032		$	33,936,950		$	203,028,982
Stockholders’ equity (deficit):
Class A common stock - $0.0001 par value		334			(334	)		—
Additional paid-in capital		8,732,931			(8,732,931	)		—
Accumulated deficit		(3,733,764	)		(25,203,685	)		(28,937,449	)
Total stockholders’ equity (deficit)	$	5,000,001		$	(33,936,950	)	$	(28,936,949	)
Class A common stock shares subject to possible redemption		16,659,314			3,340,686			20,000,000
Class A common stock		3,340,686			(3,340,686	)		—

	As Previously Reported			Revision Adjustment			As Revised
June 30, 2021
Statement of Changes in Stockholders’ Equity (Deficit)
Class A common stock - $0.0001 par value		379			(379	)		—
Additional paid-in-capital		13,174,520			(13,174,520	)		—
Accumulated deficit		(8,175,398	)		(25,247,862	)		(33,423,260	)
Total stockholders’ equity (deficit)	$	5,000,001		$	(38,422,761	)	$	(33,422,760	)
Class A common stock shares subject to possible redemption		16,214,818			3,785,182			20,000,000
Class A common stock		3,785,182			(3,785,182	)		—

Spartacus Acquisition Corp 10-Q