☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Cayman | 001-39640 | 98-1552641 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Units | SRSAU | The Nasdaq Capital Market | ||
Class A ordinary shares | SRSA | The Nasdaq Capital Market | ||
Warrants | SRSAW | The Nasdaq Capital Market |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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22 |
June 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 953,503 | $ | 1,097,856 | ||||
Prepaid expenses | 170,747 | 267,935 | ||||||
Total current assets | 1,124,250 | 1,365,791 | ||||||
Marketable securities held in Trust Account | 200,008,250 | 200,002,204 | ||||||
Total Assets | $ | 201,132,500 | $ | 201,367,995 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 48,105 | $ | 14,472 | ||||
Total current liabilities | 48,105 | 14,472 | ||||||
Warrant liabilities | 14,309,710 | 30,336,184 | ||||||
Deferred underwriters’ discount payable | 7,000,000 | 7,000,000 | ||||||
Total liabilities | 21,357,815 | 37,350,656 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, 17,477,468 and 15,901,733 at June 30, 2021 and December 31, 2020, respectively | 174,774,680 | 159,017,330 | ||||||
Shareholders’ Equity: | ||||||||
Preferred shares, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 2,522,532 and 4,098,267 issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 252 | 410 | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,000,000 shares issued and outstanding at June 30, 2021 and December 31, 2020 | 500 | 500 | ||||||
Additional paid-in capital | 7,068,115 | 22,825,307 | ||||||
Accumulated deficit | (2,068,862 | ) | (17,826,208 | ) | ||||
Total shareholders’ equity | 5,000,005 | 5,000,009 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 201,132,500 | $ | 201,367,995 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 347,384 | $ | 512,884 | ||||
Due from related party | 6,600 | 6,600 | ||||||
Prepaid expenses | 113,914 | 99,857 | ||||||
Total current assets | 467,898 | 619,341 | ||||||
Marketable securities held in Trust Account | 200,030,402 | 200,014,811 | ||||||
Total Assets | $ | 200,498,300 | $ | 200,634,152 | ||||
Liabilities, Class A ordinary shares subject to possible redemption and Shareholders’ Deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 98,627 | $ | 52,710 | ||||
Total current liabilities | 98,627 | 52,710 | ||||||
Warrant liabilities | 3,908,800 | 10,167,733 | ||||||
Deferred underwriters’ discount payable | 7,000,000 | 7,000,000 | ||||||
Total liabilities | 11,007,427 | 17,220,443 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Class A ordinary shares, $0.0001 par value, subject to possible redemption at redemption value of $10.00 per share, 20,000,000 issued and outstanding at March 31, 2022 and December 31, 2021 | 200,000,000 | 200,000,000 | ||||||
Shareholders’ Deficit: | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaNissued or outstanding at March 31, 2022 and December 31, 2021 | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorized; 0 shares issued or outstanding (excluding 20,000,000 Class A shares subject to redemption) at March 31, 2022 and December 31, 2021 | 0— | 0— | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 s | 500 | 500 | ||||||
Additional paid-in capital | 0— | 0— | ||||||
Accumulated deficit | (10,509,627 | ) | (16,586,791 | ) | ||||
Total shareholders’ deficit | (10,509,127 | ) | (16,586,291 | ) | ||||
Total Liabilities, Class A ordinary shares subject to possible redemption and Shareholders’ Deficit | $ | 200,498,300 | $ | 200,634,152 | ||||
For the Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | |||||||
Formation and operating costs | $ | 145,706 | $ | 275,174 | ||||
Loss from operations | (145,706 | ) | (275,174 | ) | ||||
Other Income | ||||||||
Interest income on marketable securities held in Trust Account | 3,273 | 6,046 | ||||||
Change in fair value of warrant liabilities | 1,805,147 | 16,026,474 | ||||||
Total other income | 1,808,420 | 16,032,520 | ||||||
Net income | $ | 1,662,714 | $ | 15,757,346 | ||||
Weighted average shares outstanding of Class A redeemable ordinary shares | 20,000,000 | 20,000,000 | ||||||
Basic and diluted net income per share, Class A redeemable ordinary share | $ | 0.00 | $ | 0.00 | ||||
Weighted average shares outstanding of Class B non-redeemable ordinary shares | 5,000,000 | 5,000,000 | ||||||
Basic and diluted net income per share, Class B non-redeemable ordinary share | $ | 0.33 | $ | 3.15 | ||||
Ordinary | Additional Paid-In Capital | Accumulated Deficit | Total Shareholders’ Equity | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance as of December 31, 2020 | 4,098,267 | $ | 410 | 5,000,000 | $ | 500 | $ | 22,825,307 | $ | (17,826,208 | ) | $ | 5,000,009 | |||||||||||||||
Class A ordinary shar e s subject to possible redemption | (1,409,464 | ) | (141 | ) | — | — | (14,094,499 | ) | — | (14,094,640 | ) | |||||||||||||||||
Net income (unaudited) | — | — | — | — | — | 14,094,632 | 14,094,632 | |||||||||||||||||||||
Balance as of March 31, 2021 (Unaudited) | 2,688,803 | $ | 269 | 5,000,000 | $ | 500 | $ | 8,730,808 | $ | (3,731,576 | ) | $ | 5,000,001 | |||||||||||||||
Change in Class A ordinary shares subject to possible redemption | (166,271 | ) | (17 | ) | — | — | (1,662,693 | ) | — | (1,662,710 | ) | |||||||||||||||||
Net income (unaudited) | — | — | — | — | — | 1,662,714 | 1,662,714 | |||||||||||||||||||||
Balance as of June 30, 2021 (unaudited) | 2,522,532 | $ | 252 | 5,000,000 | $ | 500 | $ | 7,068,115 | $ | (2,068,862 | ) | $ | 5,000,005 | |||||||||||||||
For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | |||||||
Formation and operating costs | $ | 197,360 | $ | 129,468 | ||||
Loss from operations | (197,360 | ) | (129,468 | ) | ||||
Other income | ||||||||
Interest income on marketable securities held in Trust Account | 15,591 | 2,773 | ||||||
Change in fair value of warrant liabilities | 6,258,933 | 14,221,327 | ||||||
Total other income | 6,274,524 | 14,224,100 | ||||||
Net income | $ | 6,077,164 | $ | 14,094,632 | ||||
Weighted average shares outstanding of Class A ordinary shares | 20,000,000 | 20,000,000 | ||||||
Basic and diluted net income per Class A ordinary share | $ | 0.24 | $ | 0.56 | ||||
Weighted average shares outstanding of Class B ordinary shares | 5,000,000 | 5,000,000 | ||||||
Basic and diluted net income per Class B ordinary share | $ | 0.24 | $ | 0.56 | ||||
Ordinary | Additional Paid-In Capital | Accumulated Deficit | Total Shareholders’ Deficit | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance as of December 31, 2021 | 0 | $ | 0 | 5,000,000 | $ | 500 | $ | 0 | $ | (16,586,791 | ) | $ | (16,586,291 | ) | ||||||||||||||
Net income | — | — | — | — | — | 6,077,164 | 6,077,164 | |||||||||||||||||||||
Balance as of March 31, 2022 | 0 | $ | 0 | 5,000,000 | $ | 500 | $ | 0 | $ | (10,509,627 | ) | $ | (10,509,127 | ) | ||||||||||||||
Cash Flows from Operating Activities: | ||||
Net income | $ | 15,757,346 | ||
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Interest income on marketable securities held in Trust Account | (6,046 | ) | ||
Change in fair value of warrant liabilities | (16,026,474 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | 97,188 | |||
Accounts payable and accrued expenses | 33,633 | |||
Net cash used in operating activities | (144,353 | ) | ||
Net Change in Cash | (144,353 | ) | ||
Cash - Beginning of period | 1,097,856 | |||
Cash - End of period | $ | 953,503 | ||
Supplemental Disclosure of Non-cash Financing Activities: | ||||
Change in value of Class A ordinary shares subject to possible redemption | $ | 15,757,350 | ||
Ordinary | Additional Paid-In Capital | Accumulated Deficit | Total Shareholders’ Deficit | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance as of December 31, 2020 | 0 | $ | 0 | 5,000,000 | $ | 500 | $ | 0 | $ | (35,983,161 | ) | $ | (35,982,661 | ) | ||||||||||||||
Net income | — | — | — | — | — | 14,094,632 | 14,094,632 | |||||||||||||||||||||
Balance as of March 31, 2021 | 0 | $ | 0 | 5,000,000 | $ | 500 | $ | 0 | $ | (21,888,529 | ) | $ | (21,888,029 | ) | ||||||||||||||
For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income | $ | 6,077,164 | $ | 14,094,632 | ||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
Interest income on marketable securities held in Trust Account | (15,591 | ) | (2,773 | ) | ||||
Change in fair value of warrant liabilities | (6,258,933 | ) | (14,221,327 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (14,057 | ) | 30,822 | |||||
Accounts payable and accrued expenses | 45,917 | 10,000 | ||||||
Net cash used in operating activities | (165,500 | ) | (88,646 | ) | ||||
Net Change in Cash | (165,500 | ) | (88,646 | ) | ||||
Cash—Beginning of period | 512,884 | 1,097,856 | ||||||
Cash—End of period | $ | 347,384 | $ | 1,009,210 | ||||
For the three months ended | For the six months ended | |||||||
June 30, 2021 | June 30, 2021 | |||||||
Redeemable Class A ordinary shares | ||||||||
Numerator: Earnings allocable to Redeemable Class A ordinary shares | ||||||||
Interest income | $ | 3,273 | $ | 6,046 | ||||
Net earnings | $ | 3,273 | $ | 6,046 | ||||
Denominator: Weighted average redeemable Class A ordinary shares | ||||||||
Redeemable Class A ordinary shares, basic and diluted | 20,000,000 | 20,000,000 | ||||||
Income /basic and diluted redeemable Class A ordinary shares | $ | 0.00 | $ | 0.00 | ||||
Non-redeemable Class B ordinary shares |
Numerator: Net income minus redeemable net earnings | ||||||||
Net income | $ | 1,662,714 | $ | 15,757,346 | ||||
Redeemable net earnings | 3,273 | 6,046 | ||||||
Non-redeemable net income | $ | 1,659,441 | $ | 15,751,300 | ||||
Denominator: weighted average non-redeemable Class B ordinary shares | ||||||||
Non-redeemable Class B ordinary shares, basic and diluted | 5,000,000 | 5,000,000 | ||||||
Income/ Basic and diluted non-redeemable ordinary shares | $ | 0.33 | $ | 3.15 | ||||
For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income | $ | 4,861,732 | $ | 1,215,433 | $ | 11,275,706 | $ | 2,818,926 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 20,000,000 | 5,000,000 | 20,000,000 | 5,000,000 | ||||||||||||
Basic and diluted net income per share | $ | 0.24 | $ | 0.24 | $ | 0.56 | $ | 0.56 |
Gross Proceeds | $ | 200,000,000 | ||
Less: Proceeds allocated to Public Warrants | (8,132,480 | ) | ||
Less: Issuance costs related to Class A ordinary shares | (11,113,697 | ) | ||
Plus: Accretion of carrying value to redemption value | 19,246,177 | |||
Class A ordinary shares subject to possible redemption | $ | 200,000,000 | ||
June 30, | Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||
2021 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Description | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable Securities held in Trust Account | $ | 200,008,250 | $ | 200,008,250 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Warrant Liability – Public Warrants | $ | 8,866,667 | $ | 8,866,667 | $ | — | $ | — | ||||||||
Warrant Liability – Private Warrants | $ | 5,443,043 | $ | — | $ | — | $ | 5,443,043 |
March 31, 2022 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||
Description | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable Securities held in Trust Account | $ | 200,030,402 | $ | 200,030,402 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Warrant Liability – Public Warrants | $ | 2,398,000 | $ | 2,398,000 | $ | — | $ | — | ||||||||
Warrant Liability – Private Warrants | $ | 1,510,800 | $ | — | $ | — | $ | 1,510,800 |
December 31, | Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||
2020 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Description | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable Securities held in Trust Account | $ | 200,002,204 | $ | 200,002,204 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Warrant Liability – Public Warrants | $ | 18,333,334 | $ | 18,333,334 | $ | — | $ | — | ||||||||
Warrant Liability – Private Warrants | $ | 12,002,850 | $ | — | $ | — | $ | 12,002,850 |
December 31, 2021 | Quoted Prices In Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||
Description | ||||||||||||||||
Assets: | ||||||||||||||||
Marketable Securities held in Trust Account | $ | 200,014,811 | $ | 200,014,811 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Warrant Liability – Public Warrants | $ | 6,333,333 | $ | 6,333,333 | $ | — | $ | — | ||||||||
Warrant Liability – Private Warrants | $ | 3,834,400 | $ | — | $ | — | $ | 3,834,400 |
As of March 31, 2022 | As of December 31, 2021 | |||||||
Share price | $ | 9.90 | $ | 9.79 | ||||
Strike price | $ | 11.50 | $ | 11.50 | ||||
Term (in years) | 5.28 | 5.41 | ||||||
Volatility | 5.2 | % | 14.5 | % | ||||
Risk-free rate | 2.42 | % | 1.30 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
As of June 30, 2021 | As of December 31, 2020 | |||||||
Stock price | $ | 9.92 | $ | 10.12 | ||||
Strike price | $ | 11.50 | $ | 11.50 | ||||
Term (in years) | 5.66 | 5.91 | ||||||
Volatility | 19.5 | % | 39.5 | % | ||||
Risk-free rate | 0.98 | % | 0.49 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % |
Warrant Liabilities | Warrant Liabilities | |||||||
Fair value at December 31, 2020 | $ | 12,002,850 | ||||||
Fair Value at December 31, 2021 | $ | 3,834,400 | ||||||
Change in fair value | (2,323,600 | ) | ||||||
Fair Value at March 31, 2022 | $ | 1,510,800 | ||||||
Fair Value at December 31, 2020 | $ | 12,002,850 | ||||||
Change in fair value | (5,887,993 | ) | (5,887,993 | ) | ||||
Fair Value at March 31, 2021 | 6,114,857 | $ | 6,114,857 | |||||
Change in fair value | (671,814 | ) | ||||||
Fair Value at June 30, 2021 | $ | 5,443,043 | ||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* | These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. |
Dated: | May 13, 2022 | SARISSA CAPITAL ACQUISITION CORP. | ||||||
By: | /s/ Alexander Denner | |||||||
Name: | Alexander Denner | |||||||
Title: | Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer) | |||||||
Dated: | May 13, 2022 | SARISSA CAPITAL ACQUISITION CORP. | ||||||
By: | /s/ Patrice Bonfiglio | |||||||
Name: | Patrice Bonfiglio | |||||||
Title: | Chief Financial Officer (Principal Financial and Accounting Officer) |