☒ | 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 |
Delaware | 86-1403778 | |
(State or other jurisdiction incorporation) | (IRS Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
SAIL SM (Stakeholder Aligned Initial Listing) securities, each consisting of one share of Class A Common Stock, $0.0001 par value, andone-fifth of one redeemable warrant to acquireone share of Class A Common Stock | REVHU | The Nasdaq Stock Market LLC | ||
Class A Common Stock included as part of the SAIL SM securities | REVH | The Nasdaq Stock Market LLC | ||
Redeemable Warrants included as part of the SAIL SM securities, each whole warrant exercisable for one share of Class A Common Stock at an exercise price of $11.50 | REVHW | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
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March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||
Assets: | (unaudited) | (unaudited | ) | |||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 2,629,178 | $ | 3,375,154 | $ | 2,028,571 | $ | 3,375,154 | ||||||||
Prepaid expenses | 734,720 | 836,448 | 540,103 | 836,448 | ||||||||||||
Total current assets | 3,363,898 | 4,211,602 | 2,568,674 | 4,211,602 | ||||||||||||
Investments held in Trust Account | 550,222,304 | 550,153,304 | 550,692,144 | 550,153,304 | ||||||||||||
Total Assets | $ | 553,586,202 | $ | 554,364,906 | $ | 553,260,818 | $ | 554,364,906 | ||||||||
Commitments and Contingencies | 0 | 0 | ||||||||||||||
Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit: | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 160,619 | $ | 67,292 | $ | 92,989 | $ | 67,292 | ||||||||
Accrued expenses | 19,500 | 16,875 | 19,500 | 16,875 | ||||||||||||
Franchise tax payable | 48,767 | 194,571 | 16,146 | 194,571 | ||||||||||||
Income tax payable | 91,227 | — | ||||||||||||||
Total current liabilities | 228,886 | 278,738 | 219,862 | 278,738 | ||||||||||||
Derivative warrant liabilities | 10,350,000 | 17,370,000 | 5,520,000 | 17,370,000 | ||||||||||||
Deferred underwriting commissions | 19,250,000 | 19,250,000 | 19,250,000 | 19,250,000 | ||||||||||||
Total liabilities | 29,828,886 | 36,898,738 | 24,989,862 | 36,898,738 | ||||||||||||
Commitments and Contingencies | 0 | 0 | ||||||||||||||
Class A common stock subject to possible redemption, $0.0001 par value; 55,000,000 shares issued and outstanding at $10.00 per share redemption value at March 31, 2022 and December 31, 2021 | 550,000,000 | 550,000,000 | ||||||||||||||
Class A common stock subject to possible redemption, $0.0001 par value; 55,000,000 shares issued and outstanding at $10.004 and $10.00 per share redemption value at June 30, 2022 and December 31, 2021, respectively | 550,243,186 | 550,000,000 | ||||||||||||||
Stockholders’ Deficit: | ||||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued or outstanding at March 31, 2022 and December 31, 2021 | 0— | 0— | ||||||||||||||
Class A common stock subject to possible redemption, $0.0001 par value; 80,000,000 shares authorized, 0 non-redeemable shares issued or outstanding at March 31, 2022 and December 31, 2021 | 0 | 0 | ||||||||||||||
Class B common stock, $0.0001 par value; 19,000,000 shares authorized; 2,750,000 shares issued and outstanding at March 31, 2022 and December 31, 2021 | 275 | 275 | ||||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; NaN issued or outstanding at June 30, 2022 and December 31, 2021 | 0— | 0— | ||||||||||||||
Class A common stock subject to possible redemption, $0.0001 par value; 80,000,000 shares authorized,0 non-redeemable shares issued or outstanding at June 30, 2022 and December 31, 2021 | — | — | ||||||||||||||
Class B common stock, $0.0001 par value; 19,000,000 shares authorized; 2,750,000 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 275 | 275 | ||||||||||||||
Additional paid-in capital | 0 | 0 | — | — | ||||||||||||
Accumulated deficit | (26,242,959 | ) | (32,534,107 | ) | (21,972,505 | ) | (32,534,107 | ) | ||||||||
Total stockholders’ deficit | (26,242,684 | ) | (32,533,832 | ) | (21,972,230 | ) | (32,533,832 | ) | ||||||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit | $ | 553,586,202 | $ | 554,364,906 | $ | 553,260,818 | $ | 554,364,906 | ||||||||
For the Three Months Ended June 30 | For the Six Months Ended June 30, 2022 | Period From January 11, 2021 (inception) through June 30, 2021 | ||||||||||||||||||||||
For the Three Months Ended March 31, 2022 | For The Period From January 11, 2021 (inception) through March 31, 2021 | 2022 | 2021 | |||||||||||||||||||||
General and administrative expenses | $ | 784,007 | $ | 52,451 | $ | 645,657 | $ | 766,172 | $ | 1,429,664 | $ | 818,623 | ||||||||||||
Franchise tax expenses | 13,845 | 42,790 | 49,316 | 49,315 | 63,161 | 92,105 | ||||||||||||||||||
Loss from operations | (797,852 | ) | (95,241 | ) | (694,973 | ) | (815,487 | ) | (1,492,825 | ) | (910,728 | ) | ||||||||||||
Other income (expense) | ||||||||||||||||||||||||
Change in fair value of derivative warrant liabilities | 7,020,000 | (10,890,000 | ) | 4,830,000 | 20,050,000 | 11,850,000 | 9,160,000 | |||||||||||||||||
Financing costs - derivative warrant liabilities | 0 | (1,410,520 | ) | — | — | — | (1,410,520 | ) | ||||||||||||||||
Income from investments held in Trust account | 69,000 | 14,814 | 469,840 | 22,004 | 538,840 | 36,818 | ||||||||||||||||||
Net income (loss) | $ | 6,291,148 | $ | (12,380,947 | ) | |||||||||||||||||||
Income before income tax expense | $ | 4,604,867 | $ | 19,256,517 | $ | 10,896,015 | $ | 6,875,570 | ||||||||||||||||
Income tax expense | 91,227 | — | 91,227 | — | ||||||||||||||||||||
Net income | $ | 4,513,640 | $ | 19,256,517 | $ | 10,804,788 | $ | 6,875,570 | ||||||||||||||||
Basic and diluted weighted average outstanding of Class A common stock | 55,000,000 | 7,746,479 | 55,000,000 | 55,000,000 | 55,000,000 | 34,290,123 | ||||||||||||||||||
Basic and diluted net income (loss) per share, Class A common stock | $ | 0.11 | $ | (1.20 | ) | |||||||||||||||||||
Basic and diluted net income per share, Class A common stock | $ | 0.08 | $ | 0.33 | $ | 0.19 | $ | 0.19 | ||||||||||||||||
Basic and diluted weighted average shares outstanding, Class B common stock | 2,750,000 | 2,535,211 | 2,750,000 | 2,750,000 | 2,750,000 | 2,655,864 | ||||||||||||||||||
Basic and diluted net income (loss) per share, Class B common stock | $ | 0.11 | $ | (1.20 | ) | |||||||||||||||||||
Basic and diluted net income per share, Class B common stock | $ | 0.08 | $ | 0.33 | $ | 0.19 | $ | 0.19 | ||||||||||||||||
Common Stock | Total Stockholders’ Deficit | Common Stock | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Additional Paid-in Capital | Accumulated Deficit | Class A | Class B | Additional Paid-In | Accumulated Deficit | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | |||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2021 | 0 | $ | 0 | 2,750,000 | $ | 275 | $ | 0 | $ | (32,534,107 | ) | $ | (32,533,832 | ) | — | $ | — | 2,750,000 | $ | 275 | $ | — | $ | (32,534,107 | ) | $ | (32,533,832 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | 0 | 6,291,148 | 6,291,148 | — | — | — | — | — | 6,291,148 | 6,291,148 | ||||||||||||||||||||||||||||||||||||||||||
Balance - March 31, 2022 (unaudited) | 0 | $ | 0 | 2,750,000 | $ | 275 | $ | 0 | $ | (26,242,959 | ) | $ | (26,242,684 | ) | — | $ | — | 2,750,000 | $ | 275 | $ | — | $ | (26,242,959 | ) | $ | (26,242,684 | ) | ||||||||||||||||||||||||||||
Increase in redemption value of Class A ordinary shares subject to possible redemption | — | — | — | — | — | (243,186 | ) | (243,186 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 4,513,640 | 4,513,640 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance - June 30, 2022 (unaudited) | — | $ | — | 2,750,000 | $ | 275 | $ | — | $ | (21,972,505 | ) | $ | (21,972,230 | ) | ||||||||||||||||||||||||||||||||||||||||||
Common Stock | Total Stockholders’ Deficit | Common Stock | Total Stockholders’ | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Additional Paid-in Capital | Accumulated Deficit | Class A | Class B | Additional Paid-In | Accumulated Deficit | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | |||||||||||||||||||||||||||||||||||||||||||||||
Balance - January 11, 2021 (inception) | — | $ | — | — | $ | — | $ | 0 | $ | 0 | $ | — | — | $ | — | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||||||
Issuance of Class B common stock to Initial Stockholders | — | — | 2,875,000 | 288 | 24,712 | 0 | 25,000 | — | — | 2,875,000 | 288 | 24,712 | — | 25,000 | ||||||||||||||||||||||||||||||||||||||||||
Forfeiture of Class B common stock | — | — | (125,000 | ) | (13 | ) | 13 | 0 | — | — | — | (125,000 | ) | (13 | ) | 13 | — | — | ||||||||||||||||||||||||||||||||||||||
Accretion of Class A common stock to redemption amount | — | — | — | — | (24,725 | ) | (53,885,296 | ) | (53,910,021 | ) | — | — | — | — | (24,725 | ) | (53,885,296 | ) | (53,910,021 | ) | ||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | 0 | (12,380,947 | ) | (12,380,947 | ) | — | — | — | — | — | (12,380,947 | ) | (12,380,947 | ) | ||||||||||||||||||||||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 0 | $ | 0 | 2,750,000 | $ | 275 | $ | 0 | $ | (66,266,243 | ) | $ | (66,265,968 | ) | — | $ | — | 2,750,000 | $ | 275 | $ | — | $ | (66,266,243 | ) | $ | (66,265,968 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 19,256,517 | 19,256,517 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance - June 30, 2021 (unaudited) | — | $ | — | 2,750,000 | $ | 275 | $ | — | $ | (47,009,726 | ) | $ | (47,009,451 | ) | ||||||||||||||||||||||||||||||||||||||||||
For the Three Months Ended March 31, 2022 | For the Period From January 11, 2021 (inception) through March 31, 2021 | For the Six Months Ended June 30, 2022 | For the period From January 11, 2021 (inception) through June 30, 2021 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income (loss) | $ | 6,291,148 | $ | (12,380,947 | ) | |||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||||||
Net income | $ | 10,804,788 | $ | 6,875,570 | ||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Income from investments held in Trust account | (69,000 | ) | (14,814 | ) | (538,840 | ) | (36,818 | ) | ||||||||
Financing costs - derivative warrant liabilities | 0 | 1,410,520 | ||||||||||||||
Financing cost - derivative warrant liabilities | — | 1,410,520 | ||||||||||||||
Change in fair value of derivative warrant liabilities | (7,020,000 | ) | 10,890,000 | (11,850,000 | ) | (9,160,000 | ) | |||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid expenses | 101,728 | (1,378,677 | ) | 296,345 | (1,190,735 | ) | ||||||||||
Accounts payable | 93,327 | 1,389,908 | 25,697 | 20,576 | ||||||||||||
Accrued expenses | 2,625 | 6,250 | 2,625 | 5,000 | ||||||||||||
Franchise tax payable | (145,804 | ) | 42,790 | (178,425 | ) | 92,105 | ||||||||||
Income tax payable | 91,227 | — | ||||||||||||||
Net cash used in operating activities | (745,976 | ) | (34,970 | ) | (1,346,583 | ) | (1,983,782 | ) | ||||||||
Cash Flows from Investing Activities | ||||||||||||||||
Cash deposited in Trust Account | 0 | (550,000,000 | ) | — | (550,000,000 | ) | ||||||||||
Net cash used in investing activities | 0 | (550,000,000 | ) | — | (550,000,000 | ) | ||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds from issuance of Class B common stock to Initial Stockholders | 0 | 25,000 | — | 25,000 | ||||||||||||
Proceeds from note payable to related party | 0 | 276,543 | — | 276,543 | ||||||||||||
Repayment of note payable to related party | 0 | (276,543 | ) | — | (276,543 | ) | ||||||||||
Proceeds received from initial public offering, gross | — | 550,000,000 | — | 550,000,000 | ||||||||||||
Proceeds received from private placement | — | 18,000,000 | — | 18,000,000 | ||||||||||||
Offering costs paid | — | (11,760,541 | ) | — | (11,760,541 | ) | ||||||||||
Net cash provided by financing activities | 0 | 556,264,459 | — | 556,264,459 | ||||||||||||
Net change in cash | (745,976 | ) | 6,229,489 | (1,346,583 | ) | 4,280,677 | ||||||||||
Cash - beginning of the period | 3,375,154 | 0 | 3,375,154 | — | ||||||||||||
Cash - end of the period | $2,629,178 | $ | 6,229,489 | $ | 2,028,571 | $ | 4,280,677 | |||||||||
Supplemental disclosure of noncash financing activities: | ||||||||||||||||
Deferred underwriting commissions in connection with the initial public offering | $ | 0 | $ | 19,250,000 | $ | — | $ | 19,250,000 |
For the Three Months Ended March 31, 2022 | For The Period From January 11, 2021 (inception) through March 31, 2021 | For the Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2021 | |||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||||
Basic and diluted net income (loss) per common stock: | ||||||||||||||||||||||||||||||||||||
Basic and diluted net income per common stock: | ||||||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||||||
Allocation of net income (loss) - Basic and diluted | $ | 5,991,570 | $ | 299,578 | $ | (9,328,111 | ) | $ | (3,052,836 | ) | ||||||||||||||||||||||||||
Allocation of net income - Basic and diluted | $ | 4,298,705 | $ | 214,935 | $ | 18,339,540 | $ | 916,977 | ||||||||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||||||
Basic and diluted weighted average common stock outstanding | 55,000,000 | 2,750,000 | 7,746,479 | 2,535,211 | 55,000,000 | 2,750,000 | 55,000,000 | 2,750,000 | ||||||||||||||||||||||||||||
Basic and diluted net income (loss) per common stock | $ | 0.11 | $ | 0.11 | $ | (1.20 | ) | $ | (1.20 | ) | ||||||||||||||||||||||||||
Basic and diluted net income per common stock | $ | 0.08 | $ | 0.08 | $ | 0.33 | $ | 0.33 | ||||||||||||||||||||||||||||
For the Six Months Ended June 30, 2022 | Period From January 11, 2021 (inception) through June 30, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income per common stock: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income - Basic and diluted | $ | 10,290,274 | $ | 514,514 | $ | 6,381,319 | $ | 494,251 | ||||||||
Denominator: | ||||||||||||||||
Basic and diluted weighted average common stock outstanding | 55,000,000 | 2,750,000 | 34,290,123 | 2,655,864 | ||||||||||||
Basic and diluted net income per common stock | $ | 0.19 | $ | 0.19 | $ | 0.19 | $ | 0.19 | ||||||||
• | if, and only if, the last sales price of shares of the Class A common stock equals or exceeds $45.00 per share for any “30-day trading period”) ending three business days before the Company sends the notice of redemption, and |
• | if, and only if, there is a current registration statement in effect with respect to the shares of Class A common stock underlying such warrants commencing five business days prior to the 30-day trading period and continuing each day thereafter until the date of redemption. |
Gross Proceeds | $ | 550,000,000 | $ | 550,000,000 | ||||
Less: | ||||||||
Proceeds allocated to Public Warrants | (24,310,000 | ) | (24,310,000 | ) | ||||
Class A common stock issuance costs | (29,600,021 | ) | (29,600,021 | ) | ||||
Plus: | ||||||||
Accretion of carrying value to redemption value | 53,910,021 | 53,910,021 | ||||||
Class A common stock subject to possible redemption | $ | 550,000,000 | ||||||
Class A common stock subject to possible redemption at December 31, 2021 | $ | 550,000,000 | ||||||
Increase in redemption value of Class A ordinary shares subject to redemption | 243,186 | |||||||
Class A common stock subject to possible redemption at June 30, 2022 | $ | 550,243,186 | ||||||
Fair Value Measured as of March 31, 2022 | Fair Value Measured as of June 30, 2022 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investments held in Trust Account (1) | $ | 550,222,304 | $ | — | $ | — | $ | 550,222,304 | $ | 550,692,144 | $ | — | $ | — | $ | 550,692,144 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivative public warrant liabilities | $ | 4,950,000 | $ | — | $ | — | $ | 4,950,000 | $ | 2,640,000 | $ | — | $ | — | $ | 2,640,000 | ||||||||||||||||
Derivative private warrant liabilities | $ | — | $ | 5,400,000 | $ | — | $ | 5,400,000 | $ | — | $ | 2,880,000 | $ | — | $ | 2,880,000 |
(1) | Includes approximately $5,000 of cash. |
Fair Value Measured as of December 31, 2021 | Fair Value Measured as of December 31, 2021 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Investments held in Trust Account (2) | $ | 550,153,304 | $ | — | $ | — | $ | 550,153,304 | $ | 550,153,304 | $ | — | $ | — | $ | 550,153,304 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Derivative public warrant liabilities | $ | 8,250,000 | $ | — | $ | — | $ | 8,250,000 | $ | 8,250,000 | $ | — | $ | — | $ | 8,250,000 | ||||||||||||||||
Derivative private warrant liabilities | $ | — | $ | — | $ | 9,120,000 | $ | 9,120,000 | $ | — | $ | — | $ | 9,120,000 | $ | 9,120,000 |
(2) | Includes approximately $900 of cash. |
As of December 31, 2021 | ||||
Exercise price | 11.50 | |||
Stock Price | 9.74 | |||
Option term (in years) | 5.00 | |||
Volatility | 13 | % | ||
Risk-free interest rate | 1.26 | % |
Derivative warrant liabilities at December 31, 2021 - Level 3 | $ | 9,120,000 | $ | 9,120,000 | ||||
Transfer of Private Warrants to Level 2 | (9,120,000 | ) | (9,120,000 | ) | ||||
Derivative warrant liabilities at March 31, 2022 - Level 3 | $ | 0 | ||||||
Derivative warrant liabilities at June 30, 2022 - Level 3 | $ | — | ||||||
Derivative warrant liabilities at January 11, 2021 | $ | 0 | $ | — | ||||
Issuance of Derivative Warrants (level 3) | 56,230,000 | 56,230,000 | ||||||
Change in fair value of derivative warrant liabilities - Level 3 | (3,030,000 | ) | ||||||
Change in fair value of derivative warrant liabilities—Level 3 | (3,030,000 | ) | ||||||
Derivative warrant liabilities at March 31, 2021 - Level 3 | $ | 53,200,000 | ||||||
Derivative warrant liabilities at March 31, 2021—Level 3 | 53,200,000 | |||||||
Transfer of Public Warrants to Level 1 | (23,320,000 | ) | ||||||
Change in fair value of derivative warrant liabilities—Level 3 | (12,240,000 | ) | ||||||
Derivative warrant liabilities at June 30, 2021—Level 3 | $ | 17,640,000 | ||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | |
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) |
* | Filed herewith. |
** | Furnished herewith. |
REVOLUTION HEALTHCARE ACQUISITION CORP. |
By: | /s/ Jay Markowitz, M.D. | ||
Name: | Jay Markowitz, M.D. | ||
Title: | Chief Executive Officer |
REVOLUTION HEALTHCARE ACQUISITION CORP. |
By: | /s/ Mark McDonnell | ||
Name: | |||
Title: | (Principal Financial Officer) |