☒ | 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 Islands | 001-40466 | 98-1574360 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||
Unit 1101, 11th Floor 1 Lyndhurst Tower 1 Lyndhurst Terrace Central, Hong Kong | ||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A ordinary shares, par value $0.0001 | SMIH | The Nasdaq Stock Market LLC | ||
Redeemable warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 | SMIHW | The Nasdaq Stock Market LLC | ||
Units, each consisting of one Class A ordinary share and one-half of one redeemable warrant | SMIHU | 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 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 720,222 | $ | 885,198 | ||||
Prepaid expenses | 63,428 | 141,677 | ||||||
Total current assets | 783,650 | 1,026,875 | ||||||
Investments held in Trust Account | 200,027,415 | 200,007,275 | ||||||
Total Assets | $ | 200,811,065 | $ | 201,034,150 | ||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | ||||||||
Current liabilities: | ||||||||
Accrued offering costs and expenses | $ | 133,110 | $ | 142,631 | ||||
Total current liabilities | 133,110 | 142,631 | ||||||
FPA liability | 2,658,312 | 2,785,941 | ||||||
Warrant liability | 3,210,656 | 10,423,429 | ||||||
Deferred underwriting commissions | 7,000,000 | 7,000,000 | ||||||
Total Liabilities | 13,002,078 | 20,352,001 | ||||||
Commitments and Contingencies (Note 7) | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 20,000,000 shares issued and outstanding at redemption value of $10.00 per share, at March 31, 2022 and December 31, 2021 | 200,000,000 | 200,000,000 | ||||||
Shareholders’ Deficit | ||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; 0ne issued or outstanding | 0— | — | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 20,000,000 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 0 | 0 | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively | 575 | 575 | ||||||
Accumulated deficit | (12,191,588 | ) | (19,318,426 | ) | ||||
Total shareholders’ Deficit | (12,191,013 | ) | (19,317,851 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 200,811,065 | $ | 201,034,150 | ||||
June 30, 2022 | December 31, 2021 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 615,944 | $ | 885,198 | ||||
Prepaid expenses | 15,363 | 141,677 | ||||||
Total current assets | 631,307 | 1,026,875 | ||||||
Investments held in Trust Account | 200,297,492 | 200,007,275 | ||||||
Total Assets | $ | 200,928,799 | $ | 201,034,150 | ||||
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | ||||||||
Current liabilities: | ||||||||
Accrued offering costs and expenses | $ | 391,432 | $ | 142,631 | ||||
Total current liabilities | 391,432 | 142,631 | ||||||
FPA liability | 2,800,040 | 2,785,941 | ||||||
Warrant liability | 1,208,563 | 10,423,429 | ||||||
Deferred underwriting commissions | 7,000,000 | 7,000,000 | ||||||
Total Liabilities | 11,400,035 | 20,352,001 | ||||||
Commitments and Contingencies (Note 7) | 0 | 0 | ||||||
Class A ordinary shares subject to possible redemption, $0.0001 par value; 20,000,000 shares issued and outstanding at redemption value of $10.01 and 10.00 per share, at June 30, 2022 and December 31, 2021, respectively | 200,297,492 | 200,000,000 | ||||||
Shareholders’ Deficit | ||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; 0ne issued or outstanding | 0— | — | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 20,000,000 shares issued and outstanding at June 30, 2022 and December 31, 2021, all of which are subject to possible redemption | — | — | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 shares issued and outstanding at June 30, 2022 and December 31, 2021 | 575 | 575 | ||||||
Accumulated deficit | (10,769,303 | ) | (19,318,426 | ) | ||||
Total shareholders’ Deficit | (10,768,728 | ) | (19,317,851 | ) | ||||
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | 200,928,799 | $ | 201,034,150 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||
For the Three Months ended March 31, 2022 | For the Three Months ended March 31, 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
General and administrative expenses | $ | 233,704 | $ | 0 | $ | 410,666 | $ | 43,964 | $ | 644,371 | $ | 43,964 | ||||||||||||
Loss from operations | (233,704 | ) | 0 | (410,666 | ) | (43,964 | ) | (644,371 | ) | (43,964 | ) | |||||||||||||
Other income: | ||||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||
Change in fair value of FPA | 127,629 | 0 | (141,728 | ) | (2,245,038 | ) | (14,099 | ) | (2,245,038 | ) | ||||||||||||||
Change in fair value of warrant liability | 7,212,773 | 0 | 2,002,093 | (1,885,121 | ) | 9,214,866 | (1,885,121 | ) | ||||||||||||||||
Transaction costs allocable to warrants | — | (507,417 | ) | — | (507,417 | ) | ||||||||||||||||||
Interest earned on investments held in Trust Account | 20,140 | 0 | 270,078 | 476 | 290,218 | 476 | ||||||||||||||||||
Other income | 7,360,542 | — | ||||||||||||||||||||||
Total other income (expense), net | 2,130,443 | (4,637,100 | ) | 9,490,985 | (4,637,100 | ) | ||||||||||||||||||
Net Income | $ | 7,126,838 | $ | 0 | ||||||||||||||||||||
Net income (loss) | $ | 1,719,777 | $ | (4,681,064 | ) | $ | 8,846,614 | $ | (4,681,064 | ) | ||||||||||||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares | 20,000,000 | 0 | 20,000,000 | 4,395,604 | 20,000,000 | 2,209,945 | ||||||||||||||||||
Basic and diluted net income per ordinary share, Class A ordinary shares | $ | 0.28 | $ | 0 | ||||||||||||||||||||
Basic and diluted net income (loss) per share, Class A ordinary shares subject to possible redemption | $ | 0.07 | $ | (0.46 | ) | $ | 0.34 | $ | (0.59 | ) | ||||||||||||||
Basic and diluted weighted average shares outstanding, Class B ordinary shares | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 | 5,750,000 | ||||||||||||||||||
Basic and diluted net income per share, Class B ordinary shares | $ | 0.28 | $ | 0 | ||||||||||||||||||||
Basic and diluted net income (loss) per share, Class B ordinary shares | $ | 0.07 | $ | (0.46 | ) | $ | 0.34 | $ | (0.59 | ) | ||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ (Deficit) Equity | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in | Accumulated | Total Shareholders’ | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | 0 | $ | 0 | 5,750,000 | $ | 575 | $ | 0 | $ | (19,318,426 | ) | $ | (19,317,851 | ) | — | $ | — | 5,750,000 | $ | 575 | $ | — | $ | (19,318,426 | ) | $ | (19,317,851 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 7,126,838 | 7,126,838 | — | — | — | — | — | 7,126,838 | 7,126,838 | ||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | 0 | $ | 0 | 5,750,000 | $ | 575 | $ | 0 | $ | (12,191,588 | ) | $ | (12,191,013 | ) | — | $ | — | 5,750,000 | $ | 575 | $ | — | $ | (12,191,588 | ) | $ | (12,191,013 | ) | ||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 1,719,777 | 1,719,777 | |||||||||||||||||||||||||||||||||||||||||||||||||
Accretion of carrying value to redemption value | — | — | — | — | — | (297,492 | ) | (297,492 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | — | $ | — | 5,750,000 | $ | 575 | $ | — | $ | (10,769,303 | ) | $ | (10,768,728 | ) | ||||||||||||||||||||||||||||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ (Deficit) Equity | Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in | Accumulated | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares (1) | Amount | Shares | Amount | Shares (1) | Amount | Capital | Deficit | (Deficit) | ||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 0 | $ | 0 | 6,500,000 | $ | 650 | $ | 24,350 | $ | (3,636 | ) | $ | 21,364 | — | $ | — | 6,500,000 | $ | 650 | $ | 24,350 | $ | (3,636 | ) | $ | 21,364 | ||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | 0 | 0 | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 0 | $ | 0 | 6,500,000 | $ | 650 | $ | 24,350 | $ | (3,636 | ) | $ | 21,364 | — | $ | — | 6,500,000 | $ | 650 | $ | 24,350 | $ | (3,636 | ) | $ | 21,364 | ||||||||||||||||||||||||||||||
Accretion of Class A ordinary shares to redemption value | — | — | — | — | (24,350 | ) | (18,769,138 | ) | (18,793,488 | ) | ||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | (4,681,064 | ) | (4,681,064 | ) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | — | $ | — | 6,500,000 | $ | 650 | $ | — | $ | (23,453,838 | ) | $ | (23,453,188 | ) | ||||||||||||||||||||||||||||||||||||||||||
(1) | This number includes up to 750,000 Class B ordinary shares subject to forfeiture as of |
For the Three Months ended March 31, 2022 | For the Three Months ended March 31, 2021 | For the Six Months ended June 30, 2022 | For the Six Months ended June 30, 2021 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net income | $ | 7,126,838 | $ | 0 | ||||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||||||
Net income (loss) | $ | 8,846,614 | $ | (4,681,064 | ) | |||||||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||||||
Interest earned on investments held in Trust Account | (20,140 | ) | 0 | (290,217 | ) | (476 | ) | |||||||||
Change in fair value of FPA liability | (127,629 | ) | — | 14,099 | 2,245,038 | |||||||||||
Change in fair value of warrant liability | (7,212,773 | ) | — | (9,214,866 | ) | 1,885,121 | ||||||||||
Transaction costs allocable to warrants | — | 507,417 | ||||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Prepaid expenses | 78,249 | — | 126,314 | (312,803 | ) | |||||||||||
Accrued offering costs and expenses | (9,521 | ) | — | 248,802 | 710,609 | |||||||||||
Due to related party | — | 7,667 | ||||||||||||||
Net cash used in operating activities | (164,976 | ) | — | |||||||||||||
Net cash (used in) provided by operating activities | (269,254 | ) | 361,509 | |||||||||||||
Cash Flows from Investing Activities | ||||||||||||||||
Investment of cash in Trust Account | — | (200,000,000 | ) | |||||||||||||
Net cash used in investing activities | — | (200,000,000 | ) | |||||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Proceeds received from initial public offering, net of underwriters’ discount | — | 196,000,000 | ||||||||||||||
Proceeds from private placement | — | 6,000,000 | ||||||||||||||
Payment of offering costs | — | (361,023 | ) | |||||||||||||
Repayment of note payable from related party | — | (140,554 | ) | |||||||||||||
Net cash provided by financing activities | — | 201,498,423 | ||||||||||||||
Net change in cash | (164,976 | ) | 0 | (269,254 | ) | 1,859,932 | ||||||||||
Cash, beginning of the period | 885,198 | 0 | 885,198 | — | ||||||||||||
Cash, end of the period | $ | 720,222 | $ | 0 | $ | 615,944 | $ | 1,859,932 | ||||||||
Supplemental disclosure of non-cash investing and financing activity | ||||||||||||||||
Deferred offering costs paid by Sponsor under promissory note | $ | 0 | $ | 35,000 | $ | — | $ | 135,544 | ||||||||
Accrued deferred offering costs | $ | 0 | $ | 115,632 | ||||||||||||
Deferred underwriting commissions charged to additional paid in capital | $ | — | $ | 7,000,000 | ||||||||||||
Initial value of ordinary shares subject to possible redemption | $ | — | $ | 200,000,000 | ||||||||||||
Gross proceeds | $ | 200,000,000 | $ | 200,000,000 | ||||
Less: Proceeds allocated to Public Warrants | (8,511,409 | ) | (8,511,409 | ) | ||||
Less: Class A ordinary shares issuance costs | (11,080,524 | ) | (11,080,524 | ) | ||||
Add: Accretion of carrying value to redemption value | 19,591,933 | 19,591,933 | ||||||
Class A ordinary shares subject to possible redemption | $ | 200,000,000 | ||||||
Class A ordinary shares subject to possible redemption as of December 31, 2021 | $ | 200,000,000 | ||||||
Add: Accretion of carrying value to redemption value | 297,492 | |||||||
Class A ordinary shares subject to possible redemption as of June 30, 2022 | $ | 200,297,492 | ||||||
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 | $ | 5,560,451 | $ | 1,598,630 | $ | 0 | $ | 0 | ||||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 20,000,000 | 5,750,000 | 0 | 5,750,000 | ||||||||||||
Basic and diluted net income per share | $ | 0.28 | $ | 0.28 | $ | 0 | $ | 0 | ||||||||
For the Three Months Ended June 30, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 1,335,749 | $ | 384,028 | $ | (2,028,081 | ) | $ | (2,652,983 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 20,000,000 | 5,750,000 | 4,395,604 | 5,750,000 | ||||||||||||
Basic and diluted net income (loss) per share | $ | 0.07 | $ | 0.07 | $ | (0.46 | ) | $ | (0.46 | ) |
For the Six Months Ended June 30, | ||||||||||||||||
2022 | 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income (loss) per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 6,871,157 | $ | 1,975,457 | $ | (1,299,619 | ) | $ | (3,381,445 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 20,000,000 | 5,750,000 | 2,209,945 | 5,750,000 | ||||||||||||
Basic and diluted net income (loss) per share | $ | 0.34 | $ | 0.34 | $ | (0.59 | ) | $ | (0.59 | ) |
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets | ||||||||||||
Investments held in Trust Account | $ | 200,027,415 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||
Public Warrants | $ | 2,001,000 | $ | 0 | $ | 0 | ||||||
Private Warrants | $ | — | $ | — | $ | 1,209,656 | ||||||
FPA liability | $ | — | $ | — | $ | 2,658,312 |
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets | ||||||||||||
Investments held in Trust Account | $ | 200,297,492 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||
Public Warrants | $ | — | $ | 750,000 | $ | — | ||||||
Private Warrants | — | — | 458,563 | |||||||||
FPA liability | — | — | 2,800,040 | |||||||||
Total Liabilities | $ | — | $ | 750,000 | $ | 3,258,603 | ||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets | ||||||||||||
Investments held in Trust Account | $ | 200,007,275 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||
Public Warrants | $ | 6,500,000 | $ | — | $ | — | ||||||
Private Warrants | $ | — | $ | — | $ | 3,923,429 | ||||||
FPA liability | $ | — | $ | — | $ | 2,785,941 |
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Assets | ||||||||||||
Investments held in Trust Account | $ | 200,007,275 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||
Public Warrants | $ | 6,500,000 | $ | — | $ | — | ||||||
Private Warrants | — | — | 3,923,429 | |||||||||
FPA liability | — | — | 2,785,941 | |||||||||
Total Liabilities | $ | 6,500,000 | $ | — | $ | 6,709,370 | ||||||
Input | March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||||||||||
Volatility | 4.00 | % | 13.4 | % | 6.8 | % | 13.4 | % | ||||||||
Risk Free Rate | 2.41 | % | 1.29 | % | 3.02 | % | 1.29 | % | ||||||||
Stock Price | $ | 9.71 | $ | 9.72 | $ | 9.73 | $ | 9.72 | ||||||||
Est. Term Remaining (Yrs) | 5.65 | 5.35 | 5.60 | 5.35 |
Warrant liabilities | ||||
Fair value at December 31, 2021 | $ | 3,923,429 | ||
Change in fair value | (2,713,773 | ) | ||
Fair Value at March 31, 2022 | $ | 1,209,656 |
Public Warrants | Private Warrants | Warrants Liability | ||||||||||
Fair value at December 31, 2021 | $ | — | $ | 3,923,429 | $ | 3,923,429 | ||||||
Change in fair value | — | (3,464,866 | ) | (3,464,866 | ) | |||||||
Fair Value at June 30, 2022 | $ | — | $ | 458,563 | $ | 458,563 | ||||||
Public Warrants | Private Warrants | Warrants Liability | ||||||||||
Fair value at December 31, 2020 | $ | — | $ | — | $ | — | ||||||
Initial value of warrant liabilities at IPO | 8,511,409 | 5,201,555 | 13,712,964 | |||||||||
Change in fair value | 1,212,798 | 672,323 | 1,885,121 | |||||||||
Fair Value at June 30, 2021 | $ | 9,724,207 | $ | 5,873,878 | $ | 15,598,085 | ||||||
Input | March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | ||||||||||||
Volatility | 4.00 | % | 13.4 | % | 6.8 | % | 13.4 | % | ||||||||
Stock Price | $ | 9.71 | $ | 9.72 | $ | 9.73 | $ | 9.72 | ||||||||
Warrant Price | $ | 0.20 | $ | 0.65 | $ | 0.075 | $ | 0.65 | ||||||||
Est. Term to Business Combination (Yrs) | 0.65 | 0.33 | 0.60 | 0.33 | ||||||||||||
Probability of Business Combination | 85 | % | 85 | % | 85 | % | 85 | % | ||||||||
Purchase price of FPA unit | $ | 10.00 | $ | 10.00 | $ | 10.00 | $ | 10.00 |
FPA liability | FPA liability | |||||||
Fair value at December 31, 2021 | $ | 2,785,941 | $ | 2,785,941 | ||||
Change in fair value | 335,571 | 14,099 | ||||||
Fair Value at March 31, 2022 | $ | 2,658,312 | ||||||
Fair Value at June 30, 2022 | $ | 2,800,040 | ||||||
FPA liability | ||||
Fair value at December 31, 2020 | $ | — | ||
Initial value at IPO date | 2,322,741 | |||
Change in fair value | (77,703 | ) | ||
Fair Value at June 30, 2021 | $ | 2,245,038 | ||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Item 4. Controls and Procedures |
Item 1. Legal Proceedings |
Item 1A. Risk Factors. |
23 | Item 2. Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities |
Item 3. Defaults Upon Senior Securities |
Item 4. Mine Safety Disclosures |
Item 5. Other Information |
Item 6. Exhibits. |
* | Filed herewith. |
** | Furnished. |
SUMMIT HEALTHCARE ACQUISITION CORP. | ||||
By: | /s/ Bo Tan | |||
Name: | Bo Tan | |||
Title: | Chief Executive Officer, Co-Chief Investment Officer and Director (Principal Executive Officer and Principal Financial and Accounting Officer) |