☒ | 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 | N/A | |||
(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 per share | 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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June 30, 2021 (unaudited) | December 31, 2020 | September 30, 2021 (unaudited) | December 31, 2020 | |||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash | $ | 1,859,932 | $ | $ | 1,075,137 | $ | — | |||||||||
Prepaid expenses | 312,803 | — | 221,704 | — | ||||||||||||
Total current assets | 2,172,735 | — | 1,296,841 | — | ||||||||||||
Deferred offering costs | 91,374 | 91,374 | ||||||||||||||
Investments held in Trust Account | 200,000,476 | — | 200,003,049 | — | ||||||||||||
Total Assets | $ | 202,173,211 | $ | 91,374 | $ | 201,299,890 | $ | 91,374 | ||||||||
Liabilities and Shareholders’ Equity | ||||||||||||||||
Liabilities, Class A ordinary shares subject to possible redemption and Shareholders’ Equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accrued offering costs and expenses | $ | 775,609 | $ | 65,000 | $ | 72,619 | $ | 65,000 | ||||||||
Due to related party | 7,667 | — | 37,667 | — | ||||||||||||
Note payable – related party | — | 5,010 | — | 5,010 | ||||||||||||
Total current liabilities | 783,276 | 70,010 | 110,286 | 70,010 | ||||||||||||
FPA liability | 2,245,038 | — | 2,807,021 | — | ||||||||||||
Warrant liability | 15,598,085 | — | 13,800,974 | — | ||||||||||||
Deferred underwriting commissions | 7,000,000 | — | ||||||||||||||
Deferred underwriting commissions -- | 7,000,000 | — | ||||||||||||||
Total Liabilities | 25,626,399 | 70,010 | 23,718,281 | 70,010 | ||||||||||||
Commitments and Contingencies (Note 7) | 0 | |||||||||||||||
Class A ordinary shares, $0.0001 par value; 17,154,681 shares and -0- shares subject to possible redemption at $10.00 per share at June 30, 2021 and December 31, 2020, respectively | 171,546,810 | — | ||||||||||||||
Commitments and Contingencies (Note 8) | 0 | 0 | ||||||||||||||
Class A ordinary shares, $0.0001 par value; 20,000,000 shares and -0- | 200,000,000 | — | ||||||||||||||
Shareholders’ Equity: | ||||||||||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; NaN issued and outstanding | 0— | — | ||||||||||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 2,845,319 shares and 0 shares issued and outstanding (excluding 17,154,681 shares and 0 shares subject to possible redemption) at June 30, 2021 and December 31, 2020, respectively | 285 | — | ||||||||||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 6,500,000 shares issued and outstanding at June 30, 2021 and December 31, 2020 (1) | 650 | 650 | ||||||||||||||
Shareholders’ (Deficit) Equity: | ||||||||||||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; 0ne issued and outstanding | 0— | — | ||||||||||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; | 0 | — | ||||||||||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 5,750,000 and 6,500,000 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively | 575 | 650 | (1) | |||||||||||||
Additional paid-in capital | 9,683,767 | 24,350 | — | 24,350 | ||||||||||||
Accumulated deficit | (4,684,700 | ) | (3,636 | ) | (22,418,966 | ) | (3,636 | ) | ||||||||
Total shareholders’ equity | 5,000,002 | 21,364 | ||||||||||||||
Total shareholders’ (Deficit) Equity | (22,418,391 | ) | 21,364 | |||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 202,173,211 | $ | 91,374 | ||||||||||||
Total Liabilities, Class A ordinary shares subject to possible redemption and Shareholders’ (Deficit) Equity | $ | 201,299,890 | $ | 91,374 | ||||||||||||
(1) | This number includes up to 750,000 Class B ordinary shares subject to forfeiture as of |
For the Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | For the Three Months Ended September 30, 2021 | For the Nine Months Ended September 30, 2021 | |||||||||||||
General and administrative expenses | $ | 40,328 | $ | 43,964 | $ | 202,904 | $ | 246,868 | ||||||||
Loss from operations | (40,328 | ) | (43,964 | ) | (202,904 | ) | (246,868 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Change in fair value of FPA | (2,245,038 | ) | (2,245,038 | ) | (561,983 | ) | (2,807,021 | ) | ||||||||
Change in fair value of warrant liability | (1,885,121 | ) | (1,885,121 | ) | 1,797,111 | (88,010 | ) | |||||||||
Transaction costs allocable to warrants | (507,417 | ) | (507,417 | ) | 0 | (507,417 | ) | |||||||||
Interest earned on investments held in Trust Account | 476 | 476 | 2,573 | 3,049 | ||||||||||||
Other income (expense), net | (4,637,100 | ) | (4,637,100 | ) | ||||||||||||
Net loss | $ | (4,677,428 | ) | $ | (4,681,064 | ) | ||||||||||
Other income (loss) | 1,237,701 | (3,399,399 | ) | |||||||||||||
Net income (Loss) | $ | 1,034,797 | $ | (3,646,267 | ) | |||||||||||
Basic and diluted weighted average shares outstanding, Class A ordinary share subject to possible redemption | 20,000,000 | 20,000,000 | ||||||||||||||
Basic and diluted weighted average shares outstanding, Class A ordinary shares subject to possible redemption | 20,000,000 | 8,205,128 | ||||||||||||||
Basic and diluted net income per ordinary share, Class A ordinary shares subject to possible redemption | $ | 0.00 | $ | 0.00 | ||||||||||||
Basic and diluted net income (loss) per ordinary share, Class A ordinary shares subject to possible redemption | $ | 0.04 | $ | (0.26 | ) | |||||||||||
Basic and diluted weighted average shares outstanding, Class B shares outstanding, non-redeemable ordinary shares(1) | 5,750,000 | 5,750,000 | ||||||||||||||
Basic and diluted weighted average shares outstanding, Class B non-redeemable ordinary shares | 5,750,000 | 5,750,000 | ||||||||||||||
Basic and diluted net loss per share, non-redeemable ordinary shares | $ | (0.81) | $ | (0.81) | ||||||||||||
Basic and diluted net income (loss) per share, Class B non-redeemable ordinary shares | $ | 0.04 | $ | (0.26 | ) | |||||||||||
Class A Ordinary Shares | Class B Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ (Deficit) Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance as of December 31, 2020 (audited) | 0 | $ | 0 | 6,500,000 | $ | 650 | $ | 24,350 | $ | (3,636 | ) | $ | 21,364 | |||||||||||||||
Excess of private placement proceed over fair value as capital contribution | — | — | — | — | 798,445 | — | 798,445 | |||||||||||||||||||||
Accretion of Class A ordinary shares to redemptio n value | — | — | — | — | (822,795 | ) | (18,769,138 | ) | (19,591,933 | ) | ||||||||||||||||||
Net loss | — | — | — | — | — | (4,681,064 | ) | (4,681,064 | ) | |||||||||||||||||||
Balance as of June 30, 2021 (unaudited) | 0 | $ | 0 | 6,500,000 | $ | 650 | $ | 0 | $ | (23,453,838 | ) | $ | (23,453,188 | ) | ||||||||||||||
Forfeiture of founder shares | — | — | (750,000 | ) | (75 | ) | — | 75 | — | |||||||||||||||||||
Net income | — | — | — | — | — | 1,034,797 | 1,034,797 | |||||||||||||||||||||
Balance as of September 30, 2021 (unaudited) | 0 | 0 | 5,750,000 | 575 | 0 | (22,418,966 | ) | (22,418,391 | ) | |||||||||||||||||||
Class A Ordinary Shares | Class B Ordinary Shares (1) | Additional Paid-in Capital | Accumulated Deficit | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance as of December 31, 2020 (audited) | 0 | $ | 0 | 6,500,000 | $ | 650 | $ | 24,350 | $ | (3,636 | ) | $ | 21,364 | |||||||||||||||
Net loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Balance as of March 31, 2021 (unaudited) | — | $ | — | 6,500,000 | $ | 650 | $ | 24,350 | $ | (3,636 | ) | $ | 21,364 | |||||||||||||||
Sale of Class A ordinary shares in initial public offering, net of offering costs and fair value of public warrants | 20,000,000 | 2,000 | — | — | 180,406,067 | — | 180,406,067 | |||||||||||||||||||||
Proceeds in excess of fair value of private placement warrants | — | — | — | — | 798,445 | — | 798,445 | |||||||||||||||||||||
Class A ordinary shares subject to possible redemption | (17,154,681 | ) | (1,715 | ) | — | — | (171,545,095 | ) | — | (171,546,810 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | (4,681,064 | ) | (4,681,064 | ) | |||||||||||||||||||
Balance as of June 30, 2021 (unaudited) | 2,845,319 | $ | 285 | 6,500,000 | $ | 650 | $ | 9,683,767 | $ | (4,684,700 | ) | $ | 5,000,002 | |||||||||||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (4,681,064 | ) | $ | (3,646,267 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Interest earned on investments held in Trust Account | (476 | ) | (3,049 | ) | ||||
Change in fair value of FPA liability | 2,245,038 | 2,807,021 | ||||||
Change in fair value of warrant liability | 1,885,121 | 88,010 | ||||||
Transaction costs allocable to warrants | 507,417 | 507,417 | ||||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (312,803 | ) | (221,704 | ) | ||||
Accrued offering costs and expenses | 710,609 | 7,619 | ||||||
Due to related party | 7,667 | 37,667 | ||||||
Net cash provided by operating activities | 361,509 | |||||||
Net cash used in operating activities | (423,286 | ) | ||||||
Cash Flows from Investing Activities | ||||||||
Investment of cash in Trust Account | (200,000,000 | ) | (200,000,000 | ) | ||||
Net cash used in investing activities | (200,000,000 | ) | (200,000,000 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Proceeds received from initial public offering, net of underwriters’ discount | 196,000,000 | 196,000,000 | ||||||
Proceeds from private placement | 6,000,000 | 6,000,000 | ||||||
Payment of offering costs | (361,023 | ) | (140,554 | ) | ||||
Repayment of note payable from related party | (140,554 | ) | (361,023 | ) | ||||
Net cash provided by financing activities | 201,498,423 | 201,498,423 | ||||||
Net change in cash | 1,859,932 | 1,075,137 | ||||||
Cash, beginning of the period | 0 | 0 | ||||||
Cash, end of the period | $ | 1,859,932 | $ | 1,075,137 | ||||
Supplemental Non-cash disclosure of cash flow information: [1] | ||||||||
Supplemental Non-cash disclosure of cash flow information: | ||||||||
Deferred offering costs paid by Sponsor under promissory note | $ | 135,544 | $ | 135,544 | ||||
Deferred underwriting commissions charged to additional paid in capital | $ | 7,000,000 | ||||||
Deferred underwriting commissions | $ | 7,000,000 | ||||||
Initial value of ordinary shares subject to possible redemption | $ | 173,394,700 | ||||||
Change in value of ordinary shares subject to possible redemption | $ | (1,847,890 | ) | |||||
As Previously Reported | Adjustments | As Restated | ||||||||||
Balance Sheet at June 11, 2021 | ||||||||||||
Class A ordinary shares, $0.0001par value; subject to possible redemption at $10.00 per share | $ | 173,394,700 | $ | 26,605,300 | $ | 200,000,000 | ||||||
Class A ordinary shares - $0.0001 par value | 266 | (266 | ) | 0 | ||||||||
Additional paid-in capital | 7,835,896 | (7,835,896 | ) | 0 | ||||||||
Accumulated deficit | $ | (2,836,811 | ) | $ | (18,769,138 | ) | $ | (21,605,949 | ) | |||
Total shareholders’ equity | 5,000,001 | (26,605,300 | ) | (21,605,299 | ) | |||||||
Total Liabilities, Class A ordinary shares subject to possible redemption and Shareholders’ (Deficit) Equity | 202,189,233 | 0 | 202,189,233 | |||||||||
Number of shares subject to redemption | 17,339,470 | 2,660,530 | 20,000,000 | |||||||||
Balance Sheet at June 30, 2021 (unaudited) | ||||||||||||
Class A ordinary shares, $0.0001par value; subject to possible redemption at $10.00 per share | $ | 171,546,810 | $ | 28,453,190 | $ | 200,000,000 | ||||||
Class A ordinary shares - $0.0001 par value | 285 | (285 | ) | 0 | ||||||||
Additional paid-in capital | 9,683,767 | (9,683,767 | ) | 0 | ||||||||
Accumulated deficit | $ | (4,684,700 | ) | $ | (18,769,138 | ) | $ | (23,453,838 | ) | |||
Total shareholders’ equity (deficit) | 5,000,002 | (28,453,190 | ) | (23,453,188 | ) | |||||||
Total Liabilities, Class A ordinary shares subject to possible redemption and Shareholders’ (Deficit) Equity | 202,173,211 | 0 | 202,173,211 | |||||||||
Number of shares subject to redemption | 17,154,681 | 2,845,319 | 20,000,000 | |||||||||
Statement of Operations for the three months ended June 30, 2021 | ||||||||||||
Basic and diluted weighted average shares outstanding of Class A, ordinary shares subject to redemption | 20,000,000 | (15,604,396 | ) | 4,395,604 | ||||||||
Basic and diluted net income (loss) per share of Class A, ordinary shares subject to redemption | $ | 0.00 | $ | (0.46 | ) | $ | (0.46 | ) | ||||
Basic and diluted weighted average shares outstanding of Class B, non-redeemable ordinary shares | 5,750,000 | — | 5,750,000 | |||||||||
Basic and diluted net loss per share of Class B, non-redeemable ordinary shares | $ | (0.81 | ) | $ | 0.35 | $ | (0.46 | ) | ||||
Statement of Operations for the six months ended June 30, 2021 | ||||||||||||
Basic and diluted weighted average shares outstanding of Class A, ordinary shares subject to redemption | $ | 20,000,000 | $ | (17,790,055 | ) | $ | 2,209,945 | |||||
Basic and diluted net income (loss) per share of Class A, ordinary shares subject to redemption | $ | — | $ | (0.59 | ) | $ | (0.59 | ) | ||||
Basic and diluted weighted average shares outstanding of Class B, non-redeemable ordinary shares | 5,750,000 | — | 5,750,000 | |||||||||
Basic and diluted net loss per share of Class B, non-redeemable ordinary shares | (0.81 | ) | 0.22 | (0.59 | ) | |||||||
Statement of Cash Flows for the six months ended June 30, 2021 | ||||||||||||
Initial value of Class A common stock subject to possible redemption | 173,394,700 | 26,605,300 | 200,000,000 | |||||||||
Change in value of Class A common stock subject to possible redemption | (1,847,890 | ) | 1,847,890 | 0 |
Gross proceeds | $ | 200,000,000 | ||
Less: Proceeds allocated to Public Warrants | (8,511,409 | ) | ||
Less: Class A ordinary shares issuance costs | (11,080,524 | ) | ||
Add: Accretion of carrying value to redemption value | 19,591,933 | |||
Class A ordinary shares subject to possible redemption | $ | 200,000,000 | ||
For the Three Months Ended September 30, 2021 | For the Nine Months ended September 30, 2021 | |||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||
Basic and diluted net income per share: | ||||||||||||||||
Numerator: | ||||||||||||||||
Allocation of net income (loss) | $ | 803,726 | $ | 231,071 | $ | (2,143,878 | ) | $ | (1,502,389 | ) | ||||||
Denominator: | ||||||||||||||||
Weighted-average shares outstanding | 20,000,000 | 5,750,000 | 8,205,128 | 5,750,000 | ||||||||||||
Basic and diluted net income (loss) per share | $ | 0.04 | $ | 0.04 | $ | (0.26 | ) | $ | (0.26 | ) |
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Liabilities | ||||||||||||
Public Warrants | $ | — | $ | — | $ | 9,724,207 | ||||||
Private Warrants | $ | — | $ | — | $ | 5,873,878 | ||||||
FPA liability | $ | — | $ | — | $ | 2,245,038 |
(Level 1) | (Level 2) | (Level 3) | ||||||||||
Investments held in Trust Account | $ | 200,003,049 | $ | — | $ | — | ||||||
Liabilities | ||||||||||||
Public Warrants | $ | 8,601,000 | $ | — | $ | 0 | ||||||
Private Warrants | $ | — | $ | — | $ | 5,199,974 | ||||||
FPA liability | $ | — | $ | — | $ | 2,807,021 |
Input | June 11, 2021 | June 30, 2021 | ||||||
Volatility | 16.30 | % | 17.7 | % | ||||
Risk Free Rate | 0.89 | % | 0.97 | % | ||||
Stock Price | $ | 9.5746 | 9.5243 | |||||
Est. Term Remaining (Yrs) | 5.65 | 5.60 |
Input | June 11, 2021 | September 30, 2021 | ||||||
Volatility | 16.30 | % | 17.8 | % | ||||
Risk Free Rate | 0.89 | % | 1.04 | % | ||||
Stock Price | $ | 9.5746 | 9.7500 | |||||
Est. Term Remaining (Yrs) | 5.65 | 5.35 |
Derivative warrant liabilities | ||||
Fair value at January 1, 2021 | $ | 0 | ||
Initial value at IPO date | 13,712,964 | |||
Change in fair value | 88,010 | |||
Transfer of Public warrants from level 3 to level 1 | (8,601,000 | ) | ||
Fair Value at September 30, 2021 | $ | 5,199,974 |
Input | June 11, 2021 | June 30, 2021 | June 11, 2021 | September 30, 2021 | ||||||||||||
Volatility | 16.30 | % | 17.7 | % | 16.30 | % | 17.8 | % | ||||||||
Stock Price | $ | 9.5746 | 9.5243 | $ | 9.5746 | 9.7500 | ||||||||||
Warrant Price | $ | 0.851 | 0.972 | $ | 0.851 | 0.860 | ||||||||||
Est. Term to Business Combination (Yrs) | 0.65 | 0.59 | 0.65 | 0.35 | ||||||||||||
Probability of Business Combination | 85 | % | 85 | % | 85 | % | 85 | % | ||||||||
Purchase price of FPA unit | $ | 10.00 | 10.00 | $ | 10.00 | 10.00 |
FPA liability | ||||
Fair value at January 1, 2021 | $ | 0 | ||
Initial value at IPO date | 2,322,741 | |||
Change in fair value | 484,280 | |||
Fair Value at September 30, 2021 | $ | 2,807,021 |
Exhibit Number | Description | |
31.2* | Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1** | Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2** | Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS* | Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
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 (embedded within the Inline XBRL document) |
* | 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) |