☒ | 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 | 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, 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 | ||||
June 30, 2021 (unaudited) | December 31, 2020 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 1,859,932 | $ | |||||
Prepaid expenses | 312,803 | — | ||||||
Total current assets | 2,172,735 | — | ||||||
Deferred offering costs | 91,374 | |||||||
Investments held in Trust Account | 200,000,476 | — | ||||||
Total Assets | $ | 202,173,211 | $ | 91,374 | ||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accrued offering costs and expenses | $ | 775,609 | $ | 65,000 | ||||
Due to related party | 7,667 | — | ||||||
Note payable – related party | — | 5,010 | ||||||
Total current liabilities | 783,276 | 70,010 | ||||||
FPA liability | 2,245,038 | — | ||||||
Warrant liability | 15,598,085 | — | ||||||
Deferred underwriting commissions | 7,000,000 | — | ||||||
Total Liabilities | 25,626,399 | 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 | — | ||||||
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 | ||||||
Additional paid-in capital | 9,683,767 | 24,350 | ||||||
Accumulated deficit | (4,684,700 | ) | (3,636 | ) | ||||
Total shareholders’ equity | 5,000,002 | 21,364 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 202,173,211 | $ | 91,374 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
General and administrative expenses | $ | 410,666 | $ | 43,964 | $ | 644,371 | $ | 43,964 | ||||||||
Loss from operations | (410,666 | ) | (43,964 | ) | (644,371 | ) | (43,964 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Change in fair value of FPA | (141,728 | ) | (2,245,038 | ) | (14,099 | ) | (2,245,038 | ) | ||||||||
Change in fair value of warrant liability | 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 | 270,078 | 476 | 290,218 | 476 | ||||||||||||
Total other income (expense), net | 2,130,443 | (4,637,100 | ) | 9,490,985 | (4,637,100 | ) | ||||||||||
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 | 4,395,604 | 20,000,000 | 2,209,945 | ||||||||||||
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 | ||||||||||||
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 | Accumulated | Total Shareholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Deficit | ||||||||||||||||||||||
Balance as of December 31, 2021 | — | $ | — | 5,750,000 | $ | 575 | $ | — | $ | (19,318,426 | ) | $ | (19,317,851 | ) | ||||||||||||||
Net income | — | — | — | — | — | 7,126,838 | 7,126,838 | |||||||||||||||||||||
Balance as of March 31, 2022 | — | $ | — | 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 | Accumulated | Total Shareholders’ Equity | ||||||||||||||||||||||||
Shares | Amount | Shares (1) | Amount | Capital | Deficit | (Deficit) | ||||||||||||||||||||||
Balance as of December 31, 2020 | — | $ | — | 6,500,000 | $ | 650 | $ | 24,350 | $ | (3,636 | ) | $ | 21,364 | |||||||||||||||
Net loss | — | — | — | — | — | — | — | |||||||||||||||||||||
Balance as of March 31, 2021 | — | $ | — | 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 June 30, 2021. On July 23, 2021, the 750,000 Class B ordinary shares were forfeited when the overallotment option |
For the Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | |||||||
General and administrative expenses | $ | 40,328 | $ | 43,964 | ||||
Loss from operations | (40,328 | ) | (43,964 | ) | ||||
Other income (expense): | ||||||||
Change in fair value of FPA | (2,245,038 | ) | (2,245,038 | ) | ||||
Change in fair value of warrant liability | (1,885,121 | ) | (1,885,121 | ) | ||||
Transaction costs allocable to warrants | (507,417 | ) | (507,417 | ) | ||||
Interest earned on investments held in Trust Account | 476 | 476 | ||||||
Other income (expense), net | (4,637,100 | ) | (4,637,100 | ) | ||||
Net loss | $ | (4,677,428 | ) | $ | (4,681,064 | ) | ||
Basic and diluted weighted average shares outstanding, Class A ordinary share subject to possible redemption | 20,000,000 | 20,000,000 | ||||||
Basic and diluted net income per ordinary share, Class A ordinary shares subject to possible redemption | $ | 0.00 | $ | 0.00 | ||||
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 net loss per share, non-redeemable ordinary shares | $ | (0.81) | $ | (0.81) | ||||
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 | |||||||||||||||
For the Six Months ended June 30, 2022 | For the Six Months ended June 30, 2021 | |||||||||||
Cash Flows from Operating Activities: | ||||||||||||
Net loss | $ | (4,681,064 | ) | |||||||||
Adjustments to reconcile net loss to net cash provided by 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 | (476 | ) | (290,217 | ) | (476 | ) | ||||||
Change in fair value of FPA liability | 2,245,038 | 14,099 | 2,245,038 | |||||||||
Change in fair value of warrant liability | 1,885,121 | (9,214,866 | ) | 1,885,121 | ||||||||
Transaction costs allocable to warrants | 507,417 | — | 507,417 | |||||||||
Changes in operating assets and liabilities: | ||||||||||||
Prepaid expenses | (312,803 | ) | 126,314 | (312,803 | ) | |||||||
Accrued offering costs and expenses | 710,609 | 248,802 | 710,609 | |||||||||
Due to related party | 7,667 | — | 7,667 | |||||||||
Net cash provided by operating activities | 361,509 | |||||||||||
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 | ) | — | (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 | ) | — | (361,023 | ) | |||||||
Repayment of note payable from related party | (140,554 | ) | — | (140,554 | ) | |||||||
Net cash provided by financing activities | 201,498,423 | — | 201,498,423 | |||||||||
Net change in cash | 1,859,932 | (269,254 | ) | 1,859,932 | ||||||||
Cash, beginning of the period | 0 | 885,198 | — | |||||||||
Cash, end of the period | $ | 1,859,932 | $ | 615,944 | $ | 1,859,932 | ||||||
Supplemental Non-cash disclosure of cash flow information: [1] | ||||||||||||
Supplemental disclosure of non-cash investing and financing activity | ||||||||||||
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 | $ | — | $ | 7,000,000 | ||||||
Initial value of ordinary shares subject to possible redemption | $ | 173,394,700 | $ | — | $ | 200,000,000 | ||||||
Change in value of ordinary shares subject to possible redemption | $ | (1,847,890 | ) | |||||||||
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 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 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 | $ | 200,297,492 | $ | — | $ | — | ||||||
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 | $ | — | $ | — | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Public Warrants | $ | — | $ | — | $ | 9,724,207 | $ | 6,500,000 | $ | — | $ | — | ||||||||||||
Private Warrants | $ | — | $ | — | $ | 5,873,878 | — | — | 3,923,429 | |||||||||||||||
FPA liability | $ | — | $ | — | $ | 2,245,038 | — | — | 2,785,941 | |||||||||||||||
Total Liabilities | $ | 6,500,000 | $ | — | $ | 6,709,370 | ||||||||||||||||||
Input | June 11, 2021 | June 30, 2021 | June 30, 2022 | December 31, 2021 | ||||||||||||
Volatility | 16.30 | % | 17.7 | % | 6.8 | % | 13.4 | % | ||||||||
Risk Free Rate | 0.89 | % | 0.97 | % | 3.02 | % | 1.29 | % | ||||||||
Stock Price | $ | 9.5746 | 9.5243 | $ | 9.73 | $ | 9.72 | |||||||||
Est. Term Remaining (Yrs) | 5.65 | 5.60 | 5.60 | 5.35 |
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 | June 11, 2021 | June 30, 2021 | June 30, 2022 | December 31, 2021 | ||||||||||||
Volatility | 16.30 | % | 17.7 | % | 6.8 | % | 13.4 | % | ||||||||
Stock Price | $ | 9.5746 | 9.5243 | $ | 9.73 | $ | 9.72 | |||||||||
Warrant Price | $ | 0.851 | 0.972 | $ | 0.075 | $ | 0.65 | |||||||||
Est. Term to Business Combination (Yrs) | 0.65 | 0.59 | 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 | ||||
Fair value at December 31, 2021 | $ | 2,785,941 | ||
Change in fair value | 14,099 | |||
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 | ||
Number | ||
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) |