☒ | 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 | ||
Warrants | SRSAW | The |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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Item 6. | 21 | |||||
September 30, 2021 | December 31, 2020 | |||||||
(Unaudited) | (Revised) | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 783,757 | $ | 1,097,856 | ||||
Prepaid expenses | 125,592 | 267,935 | ||||||
Total current assets | 909,349 | 1,365,791 | ||||||
Prepaid expenses – non-current portion | 7,133 | 0 | ||||||
Marketable securities held in Trust Accoun t | 200,011,323 | 200,002,204 | ||||||
Total Assets | $ | 200,927,805 | $ | 201,367,995 | ||||
Liabilities and Shareholders’ Deficit | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 5,000 | $ | 14,472 | ||||
Total current liabilities | 5,000 | 14,472 | ||||||
Warrant liabilities | 9,767,734 | 30,336,184 | ||||||
Deferred underwriters’ discount payable | 7,000,000 | 7,000,000 | ||||||
Total liabilities | 16,772,734 | 37,350,656 | ||||||
Commitments and contingencies | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, 20,000,000 issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 200,000,000 | 200,000,000 | ||||||
Shareholders’ Deficit: | ||||||||
Preference shares, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding at September 30, 2021 and December 31, 2020 | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 200,000,000 shares authorize d; 0 shares issued and outstanding (excludin g 20,000,000 Class A shares subject to redemption) at September 30, 2021 and December 31, 2020 | 0— | 0— | ||||||
Class B ordinary shares, $0.0001 par value; 20,000,000 shares authorized; 5,000,000 shares issued and outstanding at September 30, 2021 and December 31, 2020 | 500 | 500 | ||||||
Additional paid-in capital | 0— | 0— | ||||||
Accumulated deficit | (15,845,429 | ) | (35,983,161 | ) | ||||
Total shareholders’ deficit | (15,844,929 | ) | (35,982,661 | ) | ||||
Total Liabilities and Shareholders’ Deficit | $ | 200,927,805 | $ | 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 September 30, 2021 | For the nine months ended September 30, 2021 | For the period from August 12, 2020 (inception) to September 30, 2020 | ||||||||||
Formation and operating costs | $ | 164,663 | $ | 439,837 | $ | 3,793 | ||||||
�� | ||||||||||||
Loss from operations | (164,663 | ) | (439,837 | ) | (3,793 | ) | ||||||
Other income | ||||||||||||
Interest income on marketable securities held in Trust Account | 3,073 | 9,119 | — | |||||||||
Change in fair value of warrant liabilities | 4,541,976 | 20,568,450 | — | |||||||||
Total other income | 4,545,049 | 20,577,569 | — | |||||||||
Net incom e (loss ) | $ | 4,380,386 | $ | 20,137,732 | $ | (3,793 | ) | |||||
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 | $ | 0.18 | $ | 0.81 | $ | — | ||||||
Weighted average shares outstanding of Class B non-redeemable ordinary shares | 5,000,000 | 5,000,000 | 4,375,000 | |||||||||
Basic and diluted net income per share, Class B non-redeemable ordinary share | $ | 0.18 | $ | 0.81 | $ | (0.00 | ) | |||||
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, 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 | — | $ | — | 5,000,000 | $ | 500 | — | $ | (21,888,529 | ) | $ | (21,888,029 | ) | |||||||||||||||
Net income | — | — | — | — | — | 1,662,714 | 1,662,714 | |||||||||||||||||||||
Balance as of June 30, 2021 | — | $ | — | 5,000,000 | $ | 500 | — | $ | (20,225,815 | ) | $ | (20,225,315 | ) | |||||||||||||||
Net income | — | — | — | — | — | 4,380,386 | 4,380,386 | |||||||||||||||||||||
Balance as of September 30, 2021 | 0 | $ | 0 | 5,000,000 | $ | 500 | $ | 0 | $ | (15,845,429 | ) | $ | (15,844,929 | ) | ||||||||||||||
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 | ) | ||||||||||||||
Ordinary | Additional Paid-In Capital | Accumulated Deficit | Total Shareholders’ Deficit | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance as of August 12, 2020 (inception) | 0 | $ | 0— | 0 | $ | 0— | $ | 0— | $ | 0— | $ | 0— | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor (1) | — | — | 5,031,250 | 503 | 24,497 | — | 25,000 | |||||||||||||||||||||
Net lo ss | — | — | — | — | — | (3,793 | ) | (3,793 | ) | |||||||||||||||||||
Balance as of September 30, 202 0 | 0 | $ | 0— | 5,031,250 | $ | 503 | $ | 24,497 | (3,793 | ) | 21,207 | |||||||||||||||||
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 nine months ended September 30, 2021 | For the period from August 12, 2020 (inception) through September 30, 2020 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 20,137,732 | $ | (3,793 | ) | |||
Formation costs paid by Sponsor in exchange for Class B ordinary shares | 0 | 3,793 | ||||||
A djustments to reconcile net income (loss) to net cash used in operating activitie s: | ||||||||
Interest income on marketable securities held in Trust Account | (9,119 | ) | 0 | |||||
Change in fair value of warrant liabilities | (20,568,450 | ) | 0 | |||||
Changes in operating assets and liabilities: | — | |||||||
Prepaid expenses | 135,210 | 0 | ||||||
Accounts payable and accrued expenses | (9,472 | ) | 0 | |||||
Net cash used in operating activities | (314,099 | ) | 0 | |||||
Net change in cash | (314,099 | ) | 0 | |||||
Cash - Beginning of period | 1,097,856 | 0 | ||||||
Cash - End of period | $ | 783,757 | $ | 0 | ||||
Supplemental Disclosure of Non-cash Financing Activities: | ||||||||
Deferred offering costs included in accounts payable and accrued expenses | $ | 0 | $ | 86,647 | ||||
Deferred offering costs paid by Sponsor in exchange for issuance of Class B ordinary shares | $ | 0 | $ | 21,207 | ||||
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 | ||||
As Reported | Adjustment | As Adjusted | ||||||||||
Balance Sheet as of October 23, 2020 (as revised in footnote 2 of form 10-K/A filed on July 9, 2021) | ||||||||||||
Ordinary shares subject to possible redemption ($) | $ | 176,328,230 | $ | 23,671,770 | $ | 200,000,000 | ||||||
Class A ordinary shares, $0.0001 par value | 237 | (237 | ) | — | ||||||||
Class B ordinary shares, $0.0001 par value | 503 | — | 503 | |||||||||
Additional Paid in Capital | 5,478,702 | (5,478,702 | ) | — | ||||||||
Accumulated Deficit | (479,433 | ) | (18,192,831 | ) | (18,672,264 | ) | ||||||
Total Shareholders’ Equity (Deficit) | $ | 5,000,009 | $ | (23,671,770 | ) | $ | (18,671,761 | ) | ||||
Number of shares subject to redemption | 17,632,823 | 2,367,177 | 20,000,000 | |||||||||
Financial Statements as of December 31, 2020 (per form 10-K/A filed on July 9, 2021) | ||||||||||||
Balance Sheet | ||||||||||||
Ordinary shares subject to possible redemption ($) | $ | 159,017,330 | $ | 40,982,670 | $ | 200,000,000 | ||||||
Class A ordinary shares, $0.0001 par value | 410 | (410 | ) | — | ||||||||
Class B ordinary shares, $0.0001 par value | 500 | — | 500 | |||||||||
Additional Paid in Capital | 22,825,307 | (22,825,307 | ) | — | ||||||||
Accumulated Deficit | (17,826,208 | ) | (18,156,953 | ) | (35,983,161 | ) | ||||||
Total Shareholders’ Equity (Deficit) | $ | 5,000,009 | $ | (40,982,670 | ) | $ | (35,982,661 | ) | ||||
Number of shares subject to redemption | 15,901,733 | 4,098,267 | 20,000,000 | |||||||||
Income Statement | ||||||||||||
Weighted average shares outstanding of Class A redeemable ordinary shares | 20,000,000 | (10,142,857 | ) | 9,857,143 | ||||||||
Basic and diluted net income (loss) per share, Class A redeemable ordinary share | $ | 0.00 | $ | (1.23 | ) | $ | (1.23 | ) | ||||
Weighted average shares outstanding of Class B non-redeemable ordinary shares | 4,683,036 | 0 | 4,683,036 | |||||||||
Basic and diluted net loss per share, Class B non-redeemable ordinary share | $ | (3.81 | ) | $ | 2.58 | $ | (1.23 | ) |
For the Three Months ended September 30, 2021 | For the Nine Months ended September 30, 2021 | For the period from August 12, 2020 (inception) through September 30, 2020 | ||||||||||
Ordinary shares subject to possible redemption | ||||||||||||
Numerator: | ||||||||||||
Net income allocable to Class A ordinary shares subject to possible redemption | $ | 3,504,309 | $ | 16,110,186 | $ | 0 | ||||||
Denominator: | ||||||||||||
Weighted Average Redeemable Class A ordinary shares, Basic and Diluted | 20,000,000 | 20,000,000 | 0 | |||||||||
Basic and Diluted net income per share, Redeemable Class A ordinary shares | $ | 0.18 | $ | 0.81 | $ | 0 | ||||||
Non- r edeemableo rdinary shares | ||||||||||||
Numerator: | ||||||||||||
Net income (loss) allocable to Class B ordinary shares not subject to redemption | $ | 876,077 | $ | 4,027,546 | $ | (3,793 | ) | |||||
Denominator: | ||||||||||||
Weighted Average Non-Redeemable ordinary shares, Basic and Diluted | 5,000,000 | 5,000,000 | 4,375,000 | |||||||||
Basic and diluted net income per share, ordinary shares | $ | 0.18 | $ | 0.81 | $ | (0.00 | ) | |||||
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 | ||
September 30, | Quoted Prices In Active Markets | Significant Other Observable Inputs | Significant Other Unobservable Inputs | |||||||||||||||||||||||||||||
2021 | (Level 1) | (Level 2) | (Level 3) | 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 | $ | 200,011,323 | $ | 200,011,323 | $ | — | $ | — | $ | 200,030,402 | $ | 200,030,402 | $ | — | $ | — | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Warrant Liability – Public Warrants | $ | 6,067,334 | $ | 6,067,334 | $ | — | $ | — | $ | 2,398,000 | $ | 2,398,000 | $ | — | $ | — | ||||||||||||||||
Warrant Liability – Private Warrants | $ | 3,700,400 | $ | — | $ | — | $ | 3,700,400 | $ | 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 September 30, 2021 | As of December 31, 2020 | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||
Share price | $ | 9.86 | $ | 10.12 | $ | 9.90 | $ | 9.79 | ||||||||
Strike price | $ | 11.50 | $ | 11.50 | $ | 11.50 | $ | 11.50 | ||||||||
Term (in years) | 5.53 | 5.91 | 5.28 | 5.41 | ||||||||||||
Volatility | 14.1 | % | 39.5 | % | 5.2 | % | 14.5 | % | ||||||||
Risk-free rate | 1.07 | % | 0.49 | % | 2.42 | % | 1.30 | % | ||||||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | 0.0 | % |
Warrant Liabilities | ||||
Fair value at August 12, 2020 | $ | 0 | ||
Initial measurement on October 23, 2020 | 13,067,756 | |||
Change in fair value | 17,268,428 | |||
Transfer of Public warrants from Level 3 to Level 1 | (18,333,334 | ) | ||
Fair value at December 31, 2020 | 12,002,850 | |||
Change in fair value | (5,887,993 | ) | ||
Fair Value at March 31, 2021 | 6,114,857 | |||
Change in fair value | (671,814 | ) | ||
Fair Value at June 30, 2021 | 5,443,043 | |||
Change in fair value | (1,742,643 | ) | ||
Fair Value at September 30, 2021 | $ | 3,700,400 | ||
Warrant Liabilities | ||||
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 | ) | ||
Fair Value at March 31, 2021 | $ | 6,114,857 | ||
* | 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) |