☒ | 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 |
of | ( 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 acquire one share of Class A Common Stock | REVHU | The | ||
Class A Common Stock included as part of the SAIL SM securities | REVH | The | ||
Redeemable Warrants included as part of the SAIL SM securities, | REVHW | The |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☒ |
Page No. | ||||||
Item 1. | 1 | |||||
1 | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Item 2. | ||||||
Item 3. | 23 | |||||
Item 4. | ||||||
Item 1. | ||||||
Item 1A. | ||||||
Item 2. | ||||||
Item 3. | ||||||
Item 4. | ||||||
Item 5. | ||||||
Item 6. | ||||||
Assets: | ||||
Current assets: | ||||
Cash | $ | 4,280,677 | ||
Prepaid expenses | 1,190,735 | |||
Total current assets | 5,471,412 | |||
Investments held in Trust Account | 550,036,818 | |||
Total Assets | $ | 555,508,230 | ||
Liabilities and Stockholders’ Equity: | ||||
Current liabilities: | ||||
Accounts payable | $ | 20,576 | ||
Accrued expenses | 5,000 | |||
Franchise tax payable | 92,105 | |||
Total current liabilities | 117,681 | |||
Derivative warrant liabilities | 33,150,000 | |||
Deferred underwriting commissions | 19,250,000 | |||
Total liabilities | 52,517,681 | |||
Commitments and Contingencies | 0 | |||
Class A common stock, $0.0001 par value; 49,799,054 shares subject to possible redemption at $10.00 per share | 497,990,540 | |||
Stockholders’ Equity: | ||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0ne issued and outstanding | 0— | |||
Class A common stock, $0.0001 par value; 80,000,000 shares authorized; 5,200,946 shares issued and outstanding (excluding 49,799,054 shares subject to possible redemption) | 520 | |||
Class B common stock, $0.0001 par value; 19,000,000 shares authorized; 2,750,000 shares issued and outstanding | 275 | |||
Additional paid-in capital | 0 | |||
Retained earnings | 4,999,214 | |||
Total stockholders’ equity | 5,000,009 | |||
Total Liabilities and Stockholders’ Equity | $ | 555,508,230 | ||
March 31, 2022 | December 31, 2021 | |||||||
Assets: | (unaudited) | |||||||
Current assets: | ||||||||
Cash | $ | 2,629,178 | $ | 3,375,154 | ||||
Prepaid expenses | 734,720 | 836,448 | ||||||
Total current assets | 3,363,898 | 4,211,602 | ||||||
Investments held in Trust Account | 550,222,304 | 550,153,304 | ||||||
Total Assets | $ | 553,586,202 | $ | 554,364,906 | ||||
Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 160,619 | $ | 67,292 | ||||
Accrued expenses | 19,500 | 16,875 | ||||||
Franchise tax payable | 48,767 | 194,571 | ||||||
Total current liabilities | 228,886 | 278,738 | ||||||
Derivative warrant liabilities | 10,350,000 | 17,370,000 | ||||||
Deferred underwriting commissions | 19,250,000 | 19,250,000 | ||||||
Total liabilities | 29,828,886 | 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 | ||||||
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 | ||||||
Additional paid-in capital | 0 | 0 | ||||||
Accumulated deficit | (26,242,959 | ) | (32,534,107 | ) | ||||
Total stockholders’ deficit | (26,242,684 | ) | (32,533,832 | ) | ||||
Total Liabilities, Class A Common Stock Subject to Possible Redemption and Stockholders’ Deficit | $ | 553,586,202 | $ | 554,364,906 | ||||
For The Three Months Ended June 30, 2021 | For The 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 | |||||||||||||
General and administrative expenses | $ | 766,172 | $ | 818,623 | $ | 784,007 | $ | 52,451 | ||||||||
Franchise tax expenses | 49,315 | 92,105 | 13,845 | 42,790 | ||||||||||||
Loss from operations | (815,487 | ) | (910,728 | ) | (797,852 | ) | (95,241 | ) | ||||||||
Other income (expense) | ||||||||||||||||
Change in fair value of derivative warrant liabilities | 20,050,000 | 9,160,000 | 7,020,000 | (10,890,000 | ) | |||||||||||
Financing costs—derivative warrant liabilities | — | (1,410,520 | ) | |||||||||||||
Financing costs - derivative warrant liabilities | 0 | (1,410,520 | ) | |||||||||||||
Income from investments held in Trust account | 22,004 | 36,818 | 69,000 | 14,814 | ||||||||||||
Net income | $ | 19,256,517 | $ | 6,875,570 | ||||||||||||
Net income (loss) | $ | 6,291,148 | $ | (12,380,947 | ) | |||||||||||
Basic and diluted weighted average outstanding of Class A redeemable common stock | 55,000,000 | 55,000,000 | ||||||||||||||
Basic and diluted weighted average outstanding of Class A common stock | 55,000,000 | 7,746,479 | ||||||||||||||
Basic and diluted net income per share, Class A redeemable common stock | $ | 0.00 | $ | 0.00 | ||||||||||||
Basic and diluted net income (loss) per share, Class A common stock | $ | 0.11 | $ | (1.20 | ) | |||||||||||
Basic and diluted weighted average shares outstanding, Class B non-redeemable common stock | 2,750,000 | 2,655,864 | ||||||||||||||
Basic and diluted weighted average shares outstanding, Class B common stock | 2,750,000 | 2,535,211 | ||||||||||||||
Basic and diluted net income per share, non-redeemable Class Bnon-redeemable common stock | $ | 7.00 | $ | 2.59 | ||||||||||||
Basic and diluted net income (loss) per share, Class B common stock | $ | 0.11 | $ | (1.20 | ) | |||||||||||
Common Stock | Total Stockholders’ Deficit | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-in Capital | Accumulated Deficit | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance - December 31, 2021 | 0 | $ | 0 | 2,750,000 | $ | 275 | $ | 0 | $ | (32,534,107 | ) | $ | (32,533,832 | ) | ||||||||||||||
Net income | — | — | — | — | 0 | 6,291,148 | 6,291,148 | |||||||||||||||||||||
Balance - March 31, 2022 (unaudited) | 0 | $ | 0 | 2,750,000 | $ | 275 | $ | 0 | $ | (26,242,959 | ) | $ | (26,242,684 | ) | ||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Total Stockholders’ Equity | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
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 | |||||||||||||||||||||
Sale of SAILs in initial public offering, less fair value of public warrants | 55,000,000 | 5,500 | — | — | 525,684,500 | 0 | 525,690,000 | |||||||||||||||||||||
Offering costs | — | — | — | — | (29,600,021 | ) | 0 | (29,600,021 | ) | |||||||||||||||||||
Forfeiture of Class B common stock | — | — | (125,000 | ) | (13 | ) | 13 | 0 | — | |||||||||||||||||||
Class A common stock subject to possible redemption | (47,873,403 | ) | (4,787 | ) | — | — | (478,729,243 | ) | 0 | (478,734,030 | ) | |||||||||||||||||
Net loss | — | — | — | — | 0 | (12,380,947 | ) | (12,380,947 | ) | |||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 7,126,597 | $ | 713 | 2,750,000 | $ | 275 | $ | 17,379,961 | $ | (12,380,947 | ) | $ | 5,000,002 | |||||||||||||||
Class A common stock subject to possible redemption | (1,925,651 | ) | (193 | ) | — | — | (17,379,961 | ) | (1,876,356 | ) | (19,256,510 | ) | ||||||||||||||||
Net income | — | — | — | — | 0 | 19,256,517 | 19,256,517 | |||||||||||||||||||||
Balance - June 30, 2021 (unaudited) | 5,200,946 | $ | 520 | 2,750,000 | $ | 275 | $ | (0 | ) | $ | 4,999,214 | $ | 5,000,009 | |||||||||||||||
Common Stock | Total Stockholders’ Deficit | |||||||||||||||||||||||||||
Class A | Class B | Additional Paid-in Capital | Accumulated Deficit | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
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 | |||||||||||||||||||||
Forfeiture of Class B common stock | — | — | (125,000 | ) | (13 | ) | 13 | 0 | — | |||||||||||||||||||
Accretion of Class A common stock to redemption amount | — | — | — | — | (24,725 | ) | (53,885,296 | ) | (53,910,021 | ) | ||||||||||||||||||
Net loss | — | — | — | — | 0 | (12,380,947 | ) | (12,380,947 | ) | |||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 0 | $ | 0 | 2,750,000 | $ | 275 | $ | 0 | $ | (66,266,243 | ) | $ | (66,265,968 | ) | ||||||||||||||
For the Three Months Ended March 31, 2022 | For the Period From January 11, 2021 (inception) through March 31, 2021 | |||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net income | $ | 6,875,570 | ||||||||||
Adjustments to reconcile net income to net cash used in operating activities: | ||||||||||||
Net income (loss) | $ | 6,291,148 | $ | (12,380,947 | ) | |||||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||||||
Income from investments held in Trust account | (36,818 | ) | (69,000 | ) | (14,814 | ) | ||||||
Financing cost—derivative warrant liabilities | 1,410,520 | |||||||||||
Financing costs - derivative warrant liabilities | 0 | 1,410,520 | ||||||||||
Change in fair value of derivative warrant liabilities | (9,160,000 | ) | (7,020,000 | ) | 10,890,000 | |||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses | (1,190,735 | ) | 101,728 | (1,378,677 | ) | |||||||
Accounts payable | 20,576 | 93,327 | 1,389,908 | |||||||||
Accrued expenses | 5,000 | 2,625 | 6,250 | |||||||||
Franchise tax payable | 92,105 | (145,804 | ) | 42,790 | ||||||||
Net cash used in operating activities | (1,983,782 | ) | (745,976 | ) | (34,970 | ) | ||||||
Cash Flows from Investing Activities | ||||||||||||
Cash deposited in Trust Account | (550,000,000 | ) | 0 | (550,000,000 | ) | |||||||
Net cash used in investing activities | (550,000,000 | ) | 0 | (550,000,000 | ) | |||||||
Cash Flows from Financing Activities: | ||||||||||||
Proceeds from issuance of Class B common stock to Initial Stockholders | 25,000 | 0 | 25,000 | |||||||||
Proceeds from note payable to related party | 276,543 | 0 | 276,543 | |||||||||
Repayment of note payable to related party | (276,543 | ) | 0 | (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 | 556,264,459 | 0 | 556,264,459 | |||||||||
Net increase in cash | 4,280,677 | |||||||||||
Cash—beginning of the period | — | |||||||||||
Cash—end of the period | $ | 4,280,677 | ||||||||||
Net change in cash | (745,976 | ) | 6,229,489 | |||||||||
Cash - beginning of the period | 3,375,154 | 0 | ||||||||||
Cash - end of the period | $2,629,178 | $ | 6,229,489 | |||||||||
Supplemental disclosure of noncash financing activities: | ||||||||||||
Deferred underwriting commissions in connection with the initial public offering | $ | 19,250,000 | $ | 0 | $ | 19,250,000 | ||||||
Initial value of Class A common stock subject to possible redemption | $ | 475,737,880 | ||||||||||
Change in value of Class A common stock subject to possible redemption | $ | 22,252,660 |
For The Three Months Ended June 30, 2021 | For The Period From January 11, 2021 (inception) through June 30, 2021 | |||||||
Class A common stock | ||||||||
Numerator: Income allocable to Class A redeemable common stock | ||||||||
Income from investments held in Trust Account | $ | 22,004 | $ | 36,818 | ||||
Less: Company’s portion available to be withdrawn to pay taxes | (22,004 | ) | (36,818 | ) | ||||
Net income attributable | $ | 0 | $ | 0 | ||||
Denominator: Weighted average Class A redeemable common stock | ||||||||
Basic and diluted weighted average shares outstanding, Class A redeemable common stock | 55,000,000 | 55,000,000 | ||||||
Basic and diluted net income per share, Class A redeemable common stock | $ | 0.00 | $ | 0.00 | ||||
Class B common stock | ||||||||
Numerator: Net income minus net income allocable to Class A redeemable common stock | ||||||||
Net income | $ | 19,256,517 | $ | 6,875,570 | ||||
Net income allocable to Class A redeemable common stock | 0 | 0 | ||||||
Net income attributable | $ | 19,256,517 | $ | 6,875,570 | ||||
Denominator: weighted average Class B non-redeemable common stock | ||||||||
Basic and diluted weighted average shares outstanding, Class B non-redeemable common stock | 2,750,000 | 2,655,864 | ||||||
Basic and diluted net income per share, Class B non-redeemable common stock | $ | 7.00 | $ | 2.59 | ||||
For the Three Months Ended March 31, 2022 | For The Period From January 11, 2021 (inception) through March 31, 2021 | |||||||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||||||
Basic and diluted net income (loss) per common stock: | ||||||||||||||||||||
Numerator: | ||||||||||||||||||||
Allocation of net income (loss) - Basic and diluted | $ | 5,991,570 | $ | 299,578 | $ | (9,328,111 | ) | $ | (3,052,836 | ) | ||||||||||
Denominator: | ||||||||||||||||||||
Basic and diluted weighted average common stock outstanding | 55,000,000 | 2,750,000 | 7,746,479 | 2,535,211 | ||||||||||||||||
Basic and diluted net income (loss) per common stock | $ | 0.11 | $ | 0.11 | $ | (1.20 | ) | $ | (1.20 | ) | ||||||||||
• | 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“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 | ||
Less: | ||||
Proceeds allocated to Public Warrants | (24,310,000 | ) | ||
Class A common stock issuance costs | (29,600,021 | ) | ||
Plus: | ||||
Accretion of carrying value to redemption value | 53,910,021 | |||
Class A common stock subject to possible redemption | $ | 550,000,000 | ||
Fair Value Measured as of March 31, 2022 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments held in Trust Account (1) | $ | 550,222,304 | $ | — | $ | — | $ | 550,222,304 | ||||||||
Liabilities: | ||||||||||||||||
Derivative public warrant liabilities | $ | 4,950,000 | $ | — | $ | — | $ | 4,950,000 | ||||||||
Derivative private warrant liabilities | $ | — | $ | 5,400,000 | $ | — | $ | 5,400,000 |
(1) | Includes approximately $5,000 of cash. |
Fair Value Measured as of December 31, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments held in Trust Account (2) | $ | 550,153,304 | $ | — | $ | — | $ | 550,153,304 | ||||||||
Liabilities: | ||||||||||||||||
Derivative public warrant liabilities | $ | 8,250,000 | $ | — | $ | — | $ | 8,250,000 | ||||||||
Derivative private warrant liabilities | $ | — | $ | — | $ | 9,120,000 | $ | 9,120,000 |
Fair Value Measured as of June 30, 2021 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Investments held in Trust Account | $ | 550,036,818 | $ | — | $ | — | $ | 550,036,818 | ||||||||
Liabilities: | ||||||||||||||||
Derivative public warrant liabilities | 15,510,000 | — | — | 15,510,000 | ||||||||||||
Derivative private placement warrant liabilities | — | — | 17,640,000 | 17,640,000 | ||||||||||||
(2) | Includes approximately $900 of cash. |
As of | ||||
Exercise price | 11.50 | |||
Stock Price | ||||
Option term (in years) | 5.00 | |||
Volatility | % | |||
Risk-free interest rate | % |
Derivative warrant liabilities at December 31, 2021 - Level 3 | $ | 9,120,000 | ||
Transfer of Private Warrants to Level 2 | (9,120,000 | ) | ||
Derivative warrant liabilities at March 31, 2022 - Level 3 | $ | 0 | ||
Derivative warrant liabilities at January 11, 2021 | $ | 0 | $ | 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 | ) | (3,030,000 | ) | ||||
Derivative warrant liabilities at March 31, 2021 - Level 3 | 53,200,000 | $ | 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 | ||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
23 | Item 4. Controls and Procedures |
Item 1. Legal Proceedings |
* | 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: Mark McDonnell | ||
Title: Chief Financial Officer (Principal Financial Officer) |