incorporation or organization) | Classification Code No.) | Identification No.) |
Title of Each Class of Securities Being Registered | Amount Being Registered (1) | Proposed Maximum Offering Price Per Security | Proposed Maximum Aggregate Offering Price | Amount of Registration Fee (2) | ||||
Primary Offering: | ||||||||
Ordinary Shares, nominal value $.000004026575398 per share, issuable upon the exercise of options | 721,070 (3) | $3.7407 (4) | $2,697,307 | $294.28 | ||||
Secondary Offering: | ||||||||
Ordinary Shares, nominal value $.000004026575398 per share | 46,598,361 (5) | $9.50 (6) | $442,684,429.50 | $48,296.87 | ||||
Warrants | 5,450,000 (7) | — (8) | — (8) | — | ||||
Ordinary Shares, nominal value $.000004026575398 per share, issuable upon the exercise of warrants | 5,450,000 9) | $9.50 (6) | $51,775,000 | $5,648.65 | ||||
Total | $54,239.80 (10) | |||||||
Cayman Islands | 3674 | 98-1644526 | ||||||||||||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | ||||||||
Emerging growth company | ☒ |
Page | |||||||||||
Ordinary shares outstanding prior to this offering | ||||||
Use of | We will not receive any proceeds from the sale of | |||||
Dividend policy | ||||||
We have not paid any cash dividends on our | ||||||
NYSE Symbol | “RKLY” | |||||
risk. See “Risk Factors” |
SC Health | Rockley | Transaction Accounting Adjustments | Ref | Pro Forma Combined | Capital Infusion | Rockley | Transaction Accounting Adjustments | Ref | Pro Forma Combined | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Current assets | Current assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | 35 | $ | 35,395 | $ | 126,565 | A | $ | 161,995 | Cash and cash equivalents | — | $ | 35,395 | $ | 126,565 | A | $ | 161,960 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts receivable | — | 2,411 | — | 2,411 | Accounts receivable | — | 2,411 | — | 2,411 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other receivable | — | 23,037 | — | 23,037 | Other receivable | — | 23,037 | — | 23,037 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid expenses | 48 | 7,724 | — | 7,772 | Prepaid expenses | — | 7,724 | — | 7,724 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other current assets | — | 258 | — | 258 | Other current assets | — | 258 | — | 258 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total current assets | 83 | 68,825 | 126,565 | 195,473 | Total current assets | — | 68,825 | 126,565 | 195,390 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, equipment and finance lease right-of-use | — | 8,170 | — | 8,170 | Property, equipment and finance lease right-of-use assets, net | — | 8,170 | — | 8,170 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investments | — | 4,711 | — | 4,711 | Equity method investments | — | 4,711 | — | 4,711 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets | — | 3,048 | — | 3,048 | Intangible assets | — | 3,048 | — | 3,048 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and marketable securities held in trust account | 93,839 | — | (93,839 | ) | C | — | Cash and marketable securities held in trust account | 93,839 | — | (93,839 | ) | C | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other non-current assets | — | 11,715 | (8,427 | ) | E | 3,288 | Other non-current assets | — | 11,715 | (8,427 | ) | D | 3,288 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | 93,922 | $ | 96,469 | $ | 24,299 | $ | 214,690 | Total assets | 93,839 | $ | 96,469 | $ | 24,299 | $ | 214,607 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts payable and accrued expenses | 1,005 | $ | 20,796 | $ | (4,875 | ) | F | $ | 16,926 | Accounts payable and accrued expenses | 922 | $ | 20,796 | $ | (4,875 | ) | E | $ | 16,843 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, current portion | — | — | 12,500 | J | 12,500 | Long-term debt, current portion | — | — | 12,500 | I | 12,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other current liabilities | 1,035 | 1,020 | (1,035 | ) | K | 1,020 | Other current liabilities | 1,035 | 1,020 | (1,035 | ) | J | 1,020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total current liabilities | 2,040 | 21,816 | 6,590 | 30,446 | Total current liabilities | 1,957 | 21,816 | 6,590 | 30,363 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, net of current portion | — | 194,328 | (183,064 | ) | L | 11,264 | Long-term debt, net of current portion | — | 194,328 | (183,064 | ) | K | 11,264 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred underwriting fee payable | 6,038 | — | (6,038 | ) | F | — | Deferred underwriting fee payable | 6,038 | — | (6,038 | ) | E | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrant liabilities | 32,502 | — | — | 32,502 | Warrant liabilities | 32,502 | — | — | 32,502 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term liabilities | — | 2,719 | — | 2,719 | Other long-term liabilities | — | 2,719 | — | 2,719 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities | 40,580 | 218,863 | (182,512 | ) | 76,931 | Total liabilities | 40,497 | 218,863 | (182,512 | ) | 76,848 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Ordinary Shares subject to redemption | 48,342 | — | (48,342 | ) | M | — | Class A Ordinary Shares subject to redemption | 48,342 | — | (48,342 | ) | L | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ Equity | Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary Shares | — | — | — | N | — | Ordinary Shares | — | — | — | M | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Ordinary Shares | — | — | — | N | — | Class A Ordinary Shares | — | — | — | M | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B Ordinary Shares | — | — | — | N | — | Class B Ordinary Shares | — | — | — | M | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional paid-in capital | 30,382 | 205,823 | 229,771 | N | 465,976 | Additional paid-in capital | 30,382 | 205,823 | 229,771 | M | 465,976 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated deficit | (25,382 | ) | (328,217 | ) | 25,382 | O | (328,217 | ) | Accumulated deficit | (25,382 | ) | (328,217 | ) | 25,382 | N | (328,217 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total shareholders’ equity | 5,000 | $ | (122,394 | ) | $ | 255,153 | $ | 137,759 | Total shareholders’ equity | 5,000 | $ | (122,394 | ) | $ | 255,153 | $ | 137,759 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | 93,922 | $ | 96,469 | $ | 24,299 | $ | 214,690 | Total liabilities and shareholders’ equity | 93,839 | $ | 96,469 | $ | 24,299 | $ | 214,607 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
SC Health | Rockley | Transaction Accounting Adjustments | Ref | Pro Forma Combined | Ref | Expenses Related to Capital Infusion | Rockley | Transaction Accounting Adjustments | Ref | Pro Forma Combined | Ref | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | 3,966 | $ | — | 3,966 | Revenue | $ | — | $ | 3,966 | $ | — | 3,966 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | — | 8,283 | — | 8,283 | Cost of revenue | — | 8,283 | — | 8,283 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | — | (4,317 | ) | — | (4,317 | ) | Gross profit | — | (4,317 | ) | — | (4,317 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1,066 | 14,020 | 198 | a | Selling, general and administrative expenses | — | 14,020 | 198 | a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1,256 | b | 1,256 | b | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
754 | c | 17,294 | 754 | c | 16,228 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | — | 33,531 | 331 | b | 33,862 | Research and development | — | 33,531 | 331 | b | 33,862 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating loss | (1,066 | ) | (51,868 | ) | (2,539 | ) | (55,473 | ) | Operating loss | — | (51,868 | ) | (2,539 | ) | (54,407 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | 9 | (326 | ) | (9 | ) | d | (326 | ) | Interest income (expense), net | — | (326 | ) | — | (326 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | — | 2,860 | — | 2,860 | Other income | — | 2,860 | — | 2,860 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment loss | — | (760 | ) | — | (760 | ) | Equity method investment loss | — | (760 | ) | — | (760 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of debt instruments | — | (45,661 | ) | 45,661 | h | — | Change in fair value of debt instruments | — | (45,661 | ) | 45,661 | f | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gain/loss on foreign currency | — | 631 | — | 631 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on foreign currency | Realized and unrealized gain (loss) on foreign currency | — | 631 | — | 631 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of warrant liabilities | (13,447 | ) | — | — | (13,447 | ) | Change in fair value of warrant liabilities | (13,447 | ) | — | — | (13,447 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain from termination of forward purchase agreement | 2,951 | — | (2,951 | ) | e | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (11,553 | ) | (95,124 | ) | 40,162 | (66,515 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss before income taxes | Loss before income taxes | (13,447 | ) | (95,124 | ) | 40,162 | (65,449 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | — | 210 | — | 210 | Income tax expense | — | 210 | — | 210 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (11,553 | ) | $ | (95,334 | ) | $ | 40,162 | $ | (66,725 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | Net loss | $ | (13,447 | ) | $ | (95,334 | ) | $ | 40,162 | $ | (65,659 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss per share | Net loss per share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | $ | (0.53 | ) | f | Basic and diluted | $ | (0.52 | ) | d | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | Weighted average shares outstanding | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | 126,575,257 | g | Basic and diluted | 126,575,257 | e | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SC Health (As Restated) | Rockley | Transaction Accounting Adjustments | Ref | Pro Forma Combined | Ref | Expenses related to Capital Infusion | Rockley | Transaction Accounting Adjustments | Ref | Pro Forma Combined | Ref | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ | — | $ | 22,343 | $ | — | 22,343 | Revenue | $ | — | $ | 22,343 | $ | — | 22,343 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | — | 24,240 | — | 24,240 | Cost of revenue | — | 24,240 | — | 24,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | — | (1,897 | ) | — | (1,897 | ) | Gross profit | — | (1,897 | ) | — | (1,897 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 1,736 | 20,260 | 198 | a | Selling, general and administrative expenses | — | 20,260 | 198 | a | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
389 | b | 389 | b | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
754 | c | 23,337 | 754 | c | 21,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | — | 35,900 | 542 | b | 36,442 | Research and development | — | 35,900 | 542 | b | 36,442 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating loss | (1,736 | ) | (58,057 | ) | (1,883 | ) | (61,676 | ) | Operating loss | — | (58,057 | ) | (1,883 | ) | (59,940 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | 644 | (189 | ) | (644 | ) | d | (189 | ) | Interest income (expense), net | (189 | ) | (189 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method investment loss | — | (1,274 | ) | — | (1,274 | ) | Equity method investment loss | — | (1,274 | ) | — | (1,274 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of debt instruments | — | (20,163 | ) | 20,163 | h | — | Change in fair value of debt instruments | — | (20,163 | ) | 20,163 | f | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gain/loss on foreign currency | — | (25 | ) | — | (25 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Realized and unrealized gain (loss) on foreign currency | Realized and unrealized gain (loss) on foreign currency | — | (25 | ) | — | (25 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of warrant liabilities | (5,489 | ) | — | — | (5,489 | ) | Change in fair value of warrant liabilities | (5,489 | ) | — | — | (5,489 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain from termination of forward purchase agreement | (1,641 | ) | — | (1,641 | ) | e | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (8,222 | ) | (79,708 | ) | 19,277 | (68,653 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss before income taxes | Loss before income taxes | (5,489 | ) | (79,708 | ) | 19,277 | (66,917 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | — | 569 | — | 569 | Income tax expense | — | 569 | — | 569 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (8,222 | ) | $ | (80,277 | ) | $ | 19,277 | $ | (69,222 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | Net loss | $ | (5,489 | ) | $ | (80,277 | ) | $ | 19,277 | $ | (67,486 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss per share | Net loss per share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | $ | (0.55 | ) | f | Basic and diluted | $ | (0.53 | ) | d | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | Weighted average shares outstanding | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted | 126,575,257 | g | Basic and diluted | 126,575,257 | e | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | Ref | |||||
(In thousands) | ||||||
Cash inflow from PIPE Financing | $ | 100,000 | B | |||
Cash inflow from SC Health’s trust account | 17,966 | C | ||||
Cash inflow from SC Health Sponsor | 50,000 | D | ||||
Payment from SC Health’s deferred IPO fees and SC Health’s accrued transaction-related liabilities | (4,392 | ) | F | |||
Payments of estimated financing fees | (25,820 | ) | G | |||
Payments of estimated transaction fees incurred by Rockley | (5,185 | ) | H | |||
Payments of estimated transaction fees incurred by SC Health | (5,569 | ) | I | |||
Settlement of SC Health promissory note | (435 | ) | J | |||
Net Pro Forma adjustment to cash | 126,565 | A | ||||
Amount | Ref | |||||||||||||
(In thousands) | ||||||||||||||
Cash inflow from PIPE financing | $ | 150,000 | B | |||||||||||
Cash inflow from trust account | 17,966 | C | ||||||||||||
Payment from deferred IPO fees and accrued transaction-related liabilities | (4,392 | ) | E | |||||||||||
Payments of estimated financing fees | (25,820 | ) | F | |||||||||||
Payments of estimated transaction fees incurred by Rockley | (5,185 | ) | G | |||||||||||
Payments of estimated transaction fees incurred by acquiree | (5,569 | ) | H | |||||||||||
Settlement of acquiree promissory note | (435 | ) | I | |||||||||||
Net Pro Forma adjustment to cash | 126,565 | A | ||||||||||||
SC Health’s deferred IPO underwriting commissions | $ | 6,038 | ||
Less: IPO underwriting discount | (1,510 | ) | ||
SC Health’s deferred IPO underwriting commission paid | 4,528 | |||
SC Health’s deferred transaction fees | 1,005 | |||
Rockley’s deferred transaction fees | 5,201 | |||
Total deferred costs and accrued expenses paid at or after Business Combination close | $ | 10,734 | ||
Deferred IPO underwriting commissions | $ | 6,038 | |||||||||
Less: IPO underwriting discount | (1,510 | ) | |||||||||
Deferred IPO underwriting commission paid | 4,528 | ||||||||||
Acquiree’s deferred transaction fees | 1,005 | ||||||||||
Rockley’s deferred transaction fees | 5,201 | ||||||||||
Total deferred costs and accrued expenses paid at or after Business Combination close | $ | 10,734 | |||||||||
Rockley Par Value | Acquiree Par Value | Rockley Par Value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ordinary Shares | Class A Ordinary Shares | Class B Ordinary Shares | Ordinary Shares | Additional Paid-in Capital | Capital | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Redemption of | — | — | — | — | (27,532 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PIPE financing | — | — | — | — | 150,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Rockley’s convertible loan notes to Ordinary Shares | — | — | — | — | 170,564 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustment for share issuance and conversion transaction | — | — | — | — | 293,032 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated | — | — | — | — | (4,298 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Rockley’s transaction costs | — | — | — | — | (9,741 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated financing transaction costs | — | — | — | — | (25,820 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Elimination of | — | — | — | — | (23,402 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total adjustments to par value and additional paid-in capital | — | — | — | — | 229,771 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2021 | Year Ended December 31, 2020 | |||||||
Numerator | ||||||||
Pro forma net loss | $ | (66,725 | ) | $ | (69,222 | ) | ||
Denominator | ||||||||
Current Rockley Shareholders | 103,916,607 | 103,916,607 | ||||||
SC Health Shareholders | 1,777,150 | 1,777,150 | ||||||
Sponsor Shareholders | 10,562,500 | 10,562,500 | ||||||
PIPE Investors | 10,000,000 | 10,000,000 | ||||||
Other Shareholders (1) | 319,000 | 319,000 | ||||||
Total | $ | 126,575,257 | $ | 126,575,257 | ||||
Net loss per share | ||||||||
Basic and diluted | $ | (0.53 | ) | $ | (0.55 | ) |
Six Months Ended June 30, 2021 | Year Ended December 31, 2020 | |||||||||||||||||||
Numerator | ||||||||||||||||||||
Pro forma net loss | $ | (65,659 | ) | $ | (67,486 | ) | ||||||||||||||
Denominator | ||||||||||||||||||||
Current Rockley Shareholders | 103,916,607 | 103,916,607 | ||||||||||||||||||
Acquiree Shareholders | 1,777,150 | 1,777,150 | ||||||||||||||||||
Sponsor Shareholders | 10,562,500 | 10,562,500 | ||||||||||||||||||
PIPE Investors | 10,000,000 | 10,000,000 | ||||||||||||||||||
Other Shareholders(1) | 319,000 | 319,000 | ||||||||||||||||||
Total | $ | 126,575,257 | $ | 126,575,257 | ||||||||||||||||
Net loss per share | ||||||||||||||||||||
Basic and diluted | $ | (0.52 | ) | $ | (0.53 | ) |
(1) | On September 27, 2021, the Company |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Revenue | $ | 962 | $ | 1,771 | |||||||
Cost of revenue | 3,395 | 3,734 | |||||||||
Gross profit | (2,433) | (1,963) | |||||||||
Operating expenses: | |||||||||||
Selling, general, and administrative expenses | 10,938 | 7,305 | |||||||||
Research and development expenses | 24,802 | 15,980 | |||||||||
Total operating expenses | 35,740 | 23,285 | |||||||||
Loss from operations | (38,173) | (25,248) | |||||||||
Other income (expense): | |||||||||||
Other expense | (14) | — | |||||||||
Interest expense, net | (2,653) | (147) | |||||||||
Gain (loss) on equity method investment | 207 | (163) | |||||||||
Change in fair value of debt instruments | — | (39,653) | |||||||||
Change in fair value of warrant liabilities | 211 | — | |||||||||
(Loss) gain on foreign currency | (1,228) | 534 | |||||||||
Total other expense | (3,477) | (39,429) | |||||||||
Loss before income taxes | (41,650) | (64,677) | |||||||||
Provision for income tax | 131 | 100 | |||||||||
Net loss | $ | (41,781) | $ | (64,777) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | $ | 2,195 | $ | 7,881 | $ | 3,966 | $ | 14,544 | ||||||||
Cost of revenue | 4,549 | 6,522 | 8,283 | 13,085 | ||||||||||||
Gross profit | (2,354 | ) | 1,359 | (4,317 | ) | 1,459 | ||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 6,715 | 3,604 | 14,020 | 7,249 | ||||||||||||
Research and development expenses | 17,551 | 7,746 | 33,531 | 16,217 | ||||||||||||
Total operating expenses | 24,266 | 11,350 | 47,551 | 23,466 | ||||||||||||
Loss from operations | (26,620 | ) | (9,991 | ) | (51,868 | ) | (22,007 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Other income, net | 2,860 | — | 2,860 | — | ||||||||||||
Interest expense, net | (179 | ) | (34 | ) | (326 | ) | (74 | ) | ||||||||
Equity method investment loss | (597 | ) | (102 | ) | (760 | ) | (252 | ) | ||||||||
Change in fair value of debt instruments | (6,008 | ) | 312 | (45,661 | ) | (2,222 | ) | |||||||||
Gain (loss) on foreign currency | 97 | (108 | ) | 631 | (1,654 | ) | ||||||||||
Total other income (expense) | (3,827 | ) | 68 | (43,256 | ) | (4,202 | ) | |||||||||
Loss before income taxes | (30,447 | ) | (9,923 | ) | (95,124 | ) | (26,209 | ) | ||||||||
Provision for income tax | 110 | 80 | 210 | 220 | ||||||||||||
Net loss and comprehensive loss | $ | (30,557 | ) | $ | (10,003 | ) | $ | (95,334 | ) | $ | (26,429 | ) | ||||
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Revenue | $ | 962 | $ | 1,771 | $ | (809) | (46) | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Revenue | $ | 2,195 | $ | 7,881 | $ | (5,686 | ) | (72 | )% | $ | 3,966 | $ | 14,544 | $ | (10,578 | ) | (73 | )% |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Cost of revenue | $ | 3,395 | $ | 3,734 | $ | (339) | (9) | % | |||||||||||||||
Gross Profit | (2,433) | (1,963) | (470) | 24 | % | ||||||||||||||||||
Gross Margin | (253) | % | (111) | % | NM | NM |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Cost of revenue | $ | 4,549 | $ | 6,522 | $ | (1,973 | ) | (30 | )% | $ | 8,283 | $ | 13,085 | $ | (4,802 | ) | (37 | )% | ||||||||||||||
Gross Profit | $ | (2,354 | ) | $ | 1,359 | $ | (3,713 | ) | (273 | )% | $ | (4,317 | ) | $ | 1,459 | $ | (5,776 | ) | (396 | )% | ||||||||||||
Gross Margin | (107 | )% | 17 | % | NM | NM | (109 | )% | 10 | % | NM | NM |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 6,715 | $ | 3,604 | $ | 3,111 | 86 | % | $ | 14,020 | $ | 7,249 | $ | 6,771 | 93 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Selling, general, and administrative expenses | $ | 10,938 | $ | 7,305 | $ | 3,633 | 50 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Research and development expenses | $ | 24,802 | $ | 15,980 | $ | 8,822 | 55 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Research and development expenses | $ | 17,551 | $ | 7,746 | $ | 9,805 | 127 | % | $ | 33,531 | $ | 16,217 | $ | 17,314 | 107 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Other income, net | $ | (14) | $ | — | $ | (14) | 100 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Other income, net | $ | 2,860 | — | $ | 2,860 | 100 | % | $ | 2,860 | $ | — | $ | 2,860 | 100 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Interest expense, net | $ | (2,653) | $ | (147) | $ | (2,506) | 1,705 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Interest expense, net | $ | (179 | ) | $ | (34 | ) | $ | (145 | ) | 426 | % | $ | (326 | ) | $ | (74 | ) | $ | (252 | ) | 341 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Equity method investment loss | $ | 207 | $ | (163) | $ | 370 | (227) | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Equity method investment loss | $ | (597 | ) | $ | (102 | ) | $ | (495 | ) | 485 | % | $ | (760 | ) | $ | (252 | ) | $ | (508 | ) | 202 | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Change in fair value of debt instruments | $ | — | $ | (39,653) | $ | 39,653 | (100) | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Change in fair value of debt instruments | $ | (6,008 | ) | $ | 312 | $ | (6,320 | ) | (2,026 | )% | $ | (45,661 | ) | $ | (2,222 | ) | $ | (43,439 | ) | 1,955 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Change in fair value of warrants | $ | 211 | $ | — | $ | 211 | 100 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Gain (loss) on foreign currency | $ | 97 | $ | (108 | ) | $ | 205 | (190 | )% | $ | 631 | $ | (1,654 | ) | $ | 2,285 | (138 | )% |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Gain/(loss) on foreign currency | $ | (1,228) | $ | 534 | $ | (1,762) | (330) | % |
Three Months Ended March 31, | Change | ||||||||||||||||||||||
2022 | 2021 | $ | % | ||||||||||||||||||||
Provision for income tax | $ | 131 | $ | 100 | $ | 31 | 31 | % |
Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | $ | % | 2021 | 2020 | $ | % | |||||||||||||||||||||||||
Provision for income tax | $ | 110 | $ | 80 | $ | 30 | 38 | % | $ | 210 | $ | 220 | $ | (10 | ) | (5 | )% |
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
Revenue | $ | 8,213 | $ | 22,343 | |||||||
Cost of revenue | 11,416 | 24,240 | |||||||||
Gross profit | (3,203) | (1,897) | |||||||||
Operating expenses: | |||||||||||
Selling, general, and administrative expenses | 39,976 | 20,260 | |||||||||
Research and development expenses | 72,573 | 35,900 | |||||||||
Total operating expenses | 112,549 | 56,160 | |||||||||
Loss from operations | (115,752) | (58,057) | |||||||||
Other income (expense): | |||||||||||
Forgiveness of PPP loan | 2,860 | — | |||||||||
Interest expense, net | (4,781) | (189) | |||||||||
Equity method investment loss | (703) | (1,274) | |||||||||
Change in fair value of debt instruments | (59,916) | (20,163) | |||||||||
Change in fair value of warrant liabilities | 10,827 | — | |||||||||
Gain (loss) on foreign currency | 119 | (25) | |||||||||
Total other income (expense) | (51,594) | (21,651) | |||||||||
Loss before income taxes | (167,346) | (79,708) | |||||||||
Provision for income tax | 667 | 569 | |||||||||
Net loss and comprehensive loss | $ | (168,013) | $ | (80,277) |
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Consolidated Statements of Operations and Loss Data: | ||||||||
Revenue | $ | 22,343 | $ | 20,492 | ||||
Cost of revenue | 24,240 | 30,705 | ||||||
Gross Profit | (1,897 | ) | (10,213 | ) | ||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 20,260 | 13,306 | ||||||
Research and development expenses | 35,900 | 22,303 | ||||||
Operating loss | (58,057 | ) | (45,822 | ) | ||||
Other income (expense): | ||||||||
Interest income (expense), net | (189 | ) | (747 | ) | ||||
Equity method investment loss | (1,274 | ) | (1,281 | ) | ||||
Change in fair value of debt instruments | (20,163 | ) | 2,969 | ) | ||||
Gain (loss) on foreign currency | (25 | ) | 280 | |||||
Loss before provision for income tax | (79,708 | ) | (50,539 | ) | ||||
Provision for income tax | 569 | 311 | ||||||
Net loss and comprehensive loss | $ | (80,277 | ) | $ | (50,850 | ) | ||
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Revenue | $ | 8,213 | $ | 22,343 | $ | (14,130) | (63) | % |
Years Ended December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Revenue | $ | 22,343 | $ | 20,492 | $ | 1,851 | 9 | % |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Cost of revenue | $ | 11,416 | $ | 24,240 | $ | (12,824) | (53) | % | |||||||||||||||
Gross Profit | $ | (3,203) | $ | (1,897) | $ | (1,306) | NM | ||||||||||||||||
Gross Margin | (28) | % | (8) | % | NM | NM |
Years Ended December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Cost of Revenue | $ | 24,240 | $ | 30,705 | $ | (6,465 | ) | (21 | )% | |||||||
Gross Profit | $ | (1,897 | ) | $ | (10,213 | ) | $ | 8,316 | 81 | % | ||||||
Gross Margin | (8 | )% | (50 | )% | NM | NM |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Selling, general and administrative expenses | $ | 39,976 | $ | 20,260 | $ | 19,716 | 97 | % |
Years Ended December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Selling, general and administrative expenses | $ | 20,260 | $ | 13,306 | $ | 6,954 | 52 | % |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Research and development expenses | $ | 72,573 | $ | 35,900 | $ | 36,673 | 102 | % |
Years Ended December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Research and development expenses | $ | 35,900 | $ | 22,303 | $ | 13,597 | 61 | % |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Other income, net | $ | 2,860 | $ | — | $ | 2,860 | 100 | % |
Years Ended December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Interest income | $ | 30 | $ | 281 | $ | (251 | ) | (89 | )% | |||||||
Interest expense | $ | (219 | ) | $ | (1,028 | ) | $ | 809 | (79 | )% |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Interest expense, net | $ | (4,781) | $ | (189) | $ | (4,592) | 2,430 | % |
Years Ended December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Change in fair value of debt instruments | $ | 20,163 | $ | 2,969 | $ | 17,194 | 579 | % |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Equity method investment loss | $ | (703) | $ | (1,274) | $ | 571 | (45) | % |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Change in fair value of debt instruments | $ | (59,916) | $ | (20,163) | $ | (39,753) | 197 | % |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Change in fair value of warrant liabilities | 10,827 | $ | — | $ | 10,827 | NM |
Years Ended December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Gain (loss) on foreign currency | $ | 25 | $ | (280 | ) | $ | 305 | NM |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Gain (loss) on foreign currency | $ | 119 | $ | (25) | $ | 144 | (576) | % |
Years Ended December 31, | Change | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Provision for income tax | $ | 667 | $ | 569 | $ | 98 | 17 | % |
Years Ended December 31, | Change | |||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Provision for income tax | $ | 569 | $ | 311 | $ | 258 | 83 | % |
Three Months Ended March 31, | ||||||||||||||
2022 | 2021 | |||||||||||||
Net Loss | $ | (41,781) | $ | (64,777) | ||||||||||
Interest expense, net | 2,653 | 147 | ||||||||||||
Provision for income tax | 131 | 100 | ||||||||||||
Depreciation and amortization | 1,504 | 930 | ||||||||||||
EBITDA | (37,493) | (63,600) | ||||||||||||
Non-capitalized transaction costs* | — | 961 | ||||||||||||
Stock-based compensation | 4,029 | 1,725 | ||||||||||||
Change in equity-method investment | (334) | (113) | ||||||||||||
Change in fair value of debt instruments | — | 39,653 | ||||||||||||
Change in fair value of warrants | (211) | — | ||||||||||||
Adjusted EBITDA | $ | (34,009) | $ | (21,374) |
Three Months Ended June 30 | Six Months Ended June 30 | Years Ended December 31, | Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2020 | 2019 | 2021 | 2020 | |||||||||||||||||||||||||||||||
Net Loss | $ | (30,557 | ) | $ | (10,003 | ) | $ | (95,334 | ) | $ | (26,429 | ) | $ | (80,277 | ) | $ | (50,850 | ) | Net Loss | $ | (168,013) | $ | (80,277) | |||||||||||||||
Interest expense, net | 179 | 34 | 326 | 74 | 189 | 747 | Interest expense, net | 4,781 | 189 | |||||||||||||||||||||||||||||
Provision for income tax | 110 | 80 | 210 | 220 | 569 | 311 | Provision for income tax | 667 | 569 | |||||||||||||||||||||||||||||
Depreciation and amortization | 1,069 | 706 | 1,999 | 1,395 | 2,787 | 1,948 | Depreciation and amortization | 4,640 | 2,787 | |||||||||||||||||||||||||||||
EBITDA | (29,199 | ) | (9,183 | ) | (92,799 | ) | (24,740 | ) | (76,732 | ) | (47,844 | ) | EBITDA | (157,925) | (76,732) | |||||||||||||||||||||||
Non-capitalized transaction costs* | 79 | 30 | 1,040 | 30 | 3,611 | — | Non-capitalized transaction costs* | $ | 4,337 | $ | 3,611 | |||||||||||||||||||||||||||
Stock-based compensation | 1,976 | 2,545 | 3,701 | 4,189 | 8,043 | 6,229 | Stock-based compensation | 12,013 | 8,043 | |||||||||||||||||||||||||||||
Equity-method investment loss | 604 | 102 | 491 | 252 | 1,274 | 1,281 | Equity-method investment loss | 323 | 1,274 | |||||||||||||||||||||||||||||
Change in fair value of debt instruments | 6,008 | (312 | ) | 45,661 | 2,222 | 20,163 | 2,969 | Change in fair value of debt instruments | 59,916 | 20,163 | ||||||||||||||||||||||||||||
Forgiveness of PPP Loan | (2,860 | ) | — | (2,860 | ) | — | — | — | ||||||||||||||||||||||||||||||
Change in fair value of warrants liabilities | Change in fair value of warrants liabilities | (10,827) | — | |||||||||||||||||||||||||||||||||||
Forgiveness of PPP loan | Forgiveness of PPP loan | (2,860) | — | |||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (23,392 | ) | $ | (6,818 | ) | $ | (44,766 | ) | $ | (18,047 | ) | $ | (43,641 | ) | $ | (37,365 | ) | Adjusted EBITDA | $ | (95,023) | $ | (43,641) |
Three Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash used in operating activities | $ | (38,793) | $ | (24,899) | |||||||
Net cash provided by (used in) investing activities | 18,893 | (713) | |||||||||
Net cash (used in) provided by financing activities | (5,023) | 75,983 | |||||||||
Net (decrease) increase in cash and cash equivalents | $ | (24,923) | $ | 50,371 |
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Net cash used in operating activities | $ | (54,457 | ) | $ | (13,106 | ) | ||
Net cash used in investing activities | (3,322 | ) | (3,150 | ) | ||||
Net cash provided by financing activities | 73,946 | 13,915 | ||||||
Net increase (decrease) in cash and cash equivalents | $ | 16,167 | $ | (2,341 | ) | |||
Years Ended December 31, | |||||||||||
2021 | 2020 | ||||||||||
(in thousands) | |||||||||||
Net cash used in operating activities | $ | (126,001) | $ | (48,354) | |||||||
Net cash used in investing activities | (52,842) | (6,656) | |||||||||
Net cash provided by financing activities | 196,401 | 53,334 | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 17,558 | $ | (1,676) |
Years Ended December 31, | ||||||||
2020 | 2019 | |||||||
Consolidated Statements of Cash Flow Data: | ||||||||
Net cash (used in) provided by: | ||||||||
Operating activities | $ | (48,354 | ) | $ | (36,556 | |||
Investing activities | (6,656 | ) | (2,831 | ) | ||||
Financing activities | 53,334 | 48,933 | ||||||
Net (decrease) increase in cash and cash equivalents | $ | (1,676 | ) | $ | 9,546 | |||
Name | Age | Position | ||||||||
Executive Officers | ||||||||||
Andrew Rickman, OBE | 62 | Chairman and Chief Executive Officer | ||||||||
47 | Interim Chief Financial Officer | |||||||||
Non-Employee Directors | ||||||||||
66 | Lead Independent Director | |||||||||
Brian Blaser(1) | 58 | |||||||||
Caroline Brown, Ph.D.(1) | 60 | Director | ||||||||
61 | ||||||||||
Karim Karti | 53 | Director | ||||||||
Michele Klein(2)(3) | 72 | Director | ||||||||
Pamela Puryear(2)(3) | 58 |
Member of the audit committee. |
(2) | Member of the compensation committee. |
(3) | Member of the nominating and corporation governance committee. |
Members: Caroline Brown (Chair) Brian Blaser William Huyett | The functions of this committee •evaluating the performance, independence, and qualifications of our independent auditors and determining whether to retain our existing independent auditors or engage new independent auditors; •reviewing our financial reporting processes and disclosure controls; •reviewing and approving the engagement of our independent auditors to perform audit services and any permissible non-audit services; •reviewing the adequacy and effectiveness of our internal control policies and procedures, including the responsibilities, budget, staffing, and effectiveness of our internal audit function; •reviewing with the independent auditors the annual audit plan, including the scope of audit activities and all critical accounting policies and practices to be used by us; •obtaining and reviewing at least annually a report by our independent auditors describing the independent auditors’ internal quality control procedures and any material issues raised by the most recent internal quality-control review; •monitoring the rotation of partners of our independent auditors on our engagement team as required by law; •prior to engagement of any independent auditors, and at least annually thereafter, reviewing relationships that may reasonably be thought to bear on their independence, and assessing and otherwise taking the appropriate action to oversee the independence of our independent auditors; •reviewing our annual and quarterly financial statements and reports, including the disclosures contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and discussing the statements and reports with our independent auditors and management; •reviewing with our independent auditors and management significant issues that arise regarding accounting principles and financial statement presentation and matters concerning the scope, adequacy, and effectiveness of our financial controls and critical accounting policies; •reviewing with management and our auditors any earnings announcements and other public announcements regarding material developments; •establishing procedures for the receipt, retention, and treatment of complaints received by us regarding financial controls, accounting, auditing, or other matters; •preparing the report that the SEC requires in our annual proxy statement; •reviewing and providing oversight of any related person transactions in accordance with our related person transaction policy and reviewing and monitoring compliance with legal and regulatory responsibilities, including our code of ethics; •reviewing our major financial risk exposures, including the guidelines and policies to govern the process by which risk assessment and risk management is implemented; and •reviewing and evaluating on an annual basis the performance of the Audit Committee and the Audit Committee Charter. | ||||
Our Board has determined that each of the members of our Audit Committee satisfies the independence requirements of the NYSE and Rule 10A-3 under the Exchange Act. Each member of our Audit Committee can read and understand fundamental financial statements in accordance with NYSE audit committee requirements. In arriving at this determination, our Board has examined each Audit Committee member’s scope of experience and the nature of their prior and current employment. Our Board has determined that Dr. Brown qualifies as an audit committee financial expert within the meaning of SEC regulations and meets the financial sophistication requirements of the NYSE listing rules. In making this determination, our Board has considered Dr. Brown’s formal education and previous experience in financial roles. Both our independent registered public accounting firm and management periodically meet privately with our Audit Committee. |
Members: Pamela Puryear (Chair) William Huyett Michele Klein | The functions of this committee include, among other things: •reviewing and recommending for board approval the corporate objectives that pertain to CEO executive compensation and evaluating performance in light of such goals; •reviewing and approving the corporate objectives that pertain to the determination of non-CEO executive compensation and evaluating performance in light of such goals; •reviewing and approving the compensation levels and other terms of employment of our CEO, including employment, severance and change in control agreements and arrangements; •reviewing and approving the compensation levels and other terms of employment of our non-CEO executive officers, including employment, severance and change in control agreements and arrangements; •approving equity compensation plans and granting equity awards not subject to shareholder approval under applicable listing standards; •reviewing and assessing the independence of compensation consultants, legal counsel, and other advisors as required by Section 10C of the Exchange Act; •administering our equity incentive, ESPP and executive compensation plans; •reviewing and making recommendations to our Board regarding the type and amount of compensation to be paid or awarded to our non-employee board members; •reviewing with management our disclosures under the caption “Compensation Discussion and Analysis” in our periodic reports or proxy statements to be filed with the SEC; •preparing the annual report on executive compensation that the SEC requires in our annual proxy statement; •reviewing and evaluating on an annual basis the performance of the Compensation Committee and its charter and recommending such changes as deemed necessary with our Board; and •oversee the development and implementation of the Company’s human capital management, including those policies and strategies regarding recruiting, retention, career development, opportunity, and advancement, and succession, diversity, equity, inclusion, organization structure updates and employment practices. This includes discussion of any significant trends or regulatory events or risks. | ||||
The charter also provides that the compensation committee may, in its sole discretion, retain or obtain the advice of a compensation consultant, legal counsel, or other adviser and will be directly responsible for the appointment, compensation, and oversight of the work of any such adviser. However, before engaging or receiving advice from a compensation consultant, external legal counsel, or any other adviser, the compensation committee will consider the independence of each such adviser, including the factors required by the NYSE and the SEC. In 2021, the Compensation Committee retained Semler Brossy Consulting Group, LLC (“Semler Brossy”) as its independent compensation consultant. Semler Brossy provided advice to the Committee regarding the compensation of our Chief Executive Officer, Chief Financial Officer and the next three highest-paid executives. The Compensation Committee assessed the independence of Semler Brossy pursuant to SEC and NYSE rules and determined that no conflict of interest exists that would prevent Semler Brossy from independently advising the Committee. In making this assessment, the Committee considered each of the factors set forth by the SEC and the NYSE with respect to Semler Brossy’s independence, including that Semler Brossy provided no services for the Company other than pursuant to its engagement by the Committee. The Committee also determined there were no other factors the Committee should consider in connection with the assessment or that were otherwise relevant to the Committee’s engagement of Semler Brossy. Our Board has determined that each of the members of the Compensation Committee is a non-employee director, as defined in Rule 16b-3 promulgated under the Exchange Act, and satisfies the independence requirements of the NYSE. |
Members: Michele Klein (Chair) Nicolaus Henke Caroline Brown Pamela Puryear | The functions of this committee include, among other things: •identifying, reviewing, and making recommendations of candidates to serve on our Board; •evaluating the performance of our Board, committees of our Board, and individual directors and determining whether continued service on our board is appropriate; •evaluating nominations by shareholders of candidates for election to our Board; •evaluating the current size, composition, and organization of our Board and its committees and making recommendations to our Board for approvals; •developing a set of corporate governance policies and principles and recommending to our Board any changes to such policies and principles; •reviewing and making recommendations to our Board regarding the stock ownership guidelines applicable to our non-employee board members and officers; •reviewing issues and developments related to corporate governance and identifying and bringing to the attention of our Board’ current and emerging corporate governance trends; •developing and reviewing periodically with the Chairman of the Board and the Chief Executive Officer the succession plan relating to the Chief Executive Officer and make recommendations to the Board with respect to such plan; •reviewing the policies, programs, practices and reports concerning environmental, social and governance (“ESG”), including sustainability, environmental protection, community and social responsibility, diversity, equity and inclusion, and human rights; and •reviewing periodically the Nominating and Corporate Governance Committee Charter, structure, and membership requirements and recommending any proposed changes to our Board, including undertaking an annual review of its own performance. | ||||
Our Board has determined that each of the members of our Nominating and Corporate Governance Committee satisfies the independence requirements of the NYSE. |
Name | Fees Earned or Paid in Cash ($) | Option Awards ($) (1) | All other Compensation ($) | Total ($) | ||||||||||||
Caroline Brown (2) | 50,000 | 40,063 | — | 90,063 | ||||||||||||
Markku Hirvonen (4) | 47,500 | 40,063 | (3) | 103,509 | (5) | 191,072 | ||||||||||
Robert Rickman | 40,000 | 40,063 | — | 80,063 | ||||||||||||
Sunit Rikhi | 40,000 | 40,063 | (3) | 20,247 | (6) | 100,310 | ||||||||||
John Burgess | 12,500 | (7) | — | 33,764 | (8) | 46,264 | ||||||||||
Andy Parker | — | — | — | — | ||||||||||||
Jianquiang Ma | — | — | — | — |
Fees earned or paid in cash ($) | Option awards ($) (1) | Stock awards ($) (2) | Non-equity incentive plan compensation ($) | Change in pension value and nonqualified deferred compensation earnings | All other compensation ($) | Total ($) | ||||||||||||||||||||||||||||||||||||||
William Huyett | $ 33,087 | $ — | $ 157,080 | $ — | $ — | $ — | $ 190,167 | |||||||||||||||||||||||||||||||||||||
Brian Blaser | 21,284 | — | 157,080 | — | — | — | 178,364 | |||||||||||||||||||||||||||||||||||||
Caroline Brown | 57,521 | — | 157,080 | — | — | — | 214,601 | |||||||||||||||||||||||||||||||||||||
Nicolaus Henke(3) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Karim Karti | 18,712 | — | 326,760 | — | — | 16,500 | 361,972 | |||||||||||||||||||||||||||||||||||||
Michele Klein | 24,187 | — | 157,080 | — | — | — | 181,267 | |||||||||||||||||||||||||||||||||||||
Pamela Puryear | 25,154 | — | 157,080 | — | — | — | 182,234 |
Name | Number of shares | ||||
William Huyett | 22,000 | ||||
Brian Blaser | 22,000 | ||||
Caroline Brown, Ph.D | 84,085 | ||||
Karim Karti | 46,000 | ||||
Michele Klein | 22,000 | ||||
Pamela Puryear | 22,000 |
Name | Option Awards (#) | |||
Caroline Brown | 25,000 | |||
Markku Hirvonen | 168,490 | (1) | ||
Robert Rickman | 18,750 | |||
Sunit Rikhi | 72,500 | |||
John Burgess | 169,650 |
Committee | Chair | Member | ||||||||||||||||||||||||
Compensation Committee | $ | 15,000 | $ | 7,500 | ||||||||||||||||||||||
Nominating and Corporate Governance Committee | 10,000 | 5,000 | ||||||||||||||||||||||||
Audit Committee | 20,000 | 10,000 |
Name and Principal Position | Fiscal Year | Salary ($) | Stock Awards ($) (1) | Option Awards ($) (1) (2) | Non-Equity Incentive Plan Compensation ($) (3) | All Other Compensation ($) (4) | Total ($) | ||||||||||||||||
Dr. Andrew Rickman, OBE | 2021 | $430,806 | $5,500,003 | $4,561,612 | $1,666,947 | $14,409 | $12,173,777 | ||||||||||||||||
Chief Executive Officer | 2020 | 366,200 | — | — | 165,275 | 10,679 | 542,154 | ||||||||||||||||
Mr. Mahesh Karanth (5) | 2021 | 358,658 | 1,272,383 | 1,824,650 | 913,006 | 3,072 | 4,371,769 | ||||||||||||||||
Chief Financial Officer | 2020 | 300,012 | — | 586,814 | 138,006 | 3,072 | 1,027,904 | ||||||||||||||||
Dr. Amit Nagra, PhD (6) | 2021 | 384,711 | 954,283 | 1,368,485 | 186,494 | 3,081 | 2,897,054 | ||||||||||||||||
Chief Operating Officer | 2020 | 337,851 | — | — | 311,494 | 3,081 | 652,426 |
Name and Principal Position | Salary ($) | Option Awards ($) (1) | Nonequity Incentive Plan Compensation ($) (2) | All other Compensation ($) (4) | Total ($) | |||||||||||||||
Andrew Rickman, OBE | 366,200 | 165,275 | 10,679 | 542,154 | ||||||||||||||||
Chief Executive Officer | ||||||||||||||||||||
Mahesh Karanth | 300,012 | 586,814 | 138,006 | 3,072 | 1,027,904 | |||||||||||||||
Chief Financial Officer | ||||||||||||||||||||
Amit Nagra, Ph.D. | 337,851 | 311,494 | (3) | 3,081 | 652,426 | |||||||||||||||
Chief Operating Officer |
Name Executive Officer | Employer Retirement Contributions ($) | AD&D Premium ($) | ||||||||||||||||||||||||||
Named Executive Officer | Named Executive Officer | Employer Retirement Contribution ($) | Life Insurance Premium ($) | AD&D Premium ($) | ||||||||||||||||||||||||
Andrew Rickman, OBE | 10,679 | — | Andrew Rickman, OBE | $10,593 | $3,816 | $— | ||||||||||||||||||||||
Mahesh Karanth | 3,000 | 72 | Mahesh Karanth | 3,000 | 412 | 72 | ||||||||||||||||||||||
Amit Nagra, Ph.D. | 3,000 | 81 | ||||||||||||||||||||||||||
Amit Nagra, PhD | Amit Nagra, PhD | 3,000 | 462 | 81 |
Option Awards | ||||||||||||||||||||
Name | Grant Date | Number of Securities Underlying Unexercised Options Exercisable (#) | Number of Securities Underlying Unexercised Options Unexercisable (#) | Options Exercise Price ($) | Options Expiration Date | |||||||||||||||
Andrew Rickman, OBE | — | — | — | — | — | |||||||||||||||
Mahesh Karanth | 12/22/17 | (1) | 303,750 | 101,250 | 5.363 | 12/21/27 | ||||||||||||||
10/05/20 | (2) | 4,218 | 97,032 | 7.722 | 06/28/30 | |||||||||||||||
Amit Nagra, Ph.D. | 05/20/15 | (3) | 712,230 | — | 1.331 | 05/19/26 |
Option Awards | Stock Awards | |||||||||||||||||||||||||||||||
Name | Date Granted | Number of Securities Underlying Unexercised Options Exercisable (#) | Number of Securities Unerxercised Options Unexercisable (#) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock that have not Vested (#) | Market Value of Shares or Units of Stock that have not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights that have not Vested (#) | Equity Incentive Plan Awards: Market Payout Value of Unearned Shares, Units or Other Rights that have not Vested ($) | |||||||||||||||||||||||
Andrew Rickman | 12/16/21(1) | — | — | $ — | — | 353,607 | $ | 1,538,190 | — | $ — | ||||||||||||||||||||||
10/25/21(2) | — | — | — | — | 575,576 | 2,503,756 | — | — | ||||||||||||||||||||||||
08/11/21(4) | 47,964 | 527,612 | 15.84 | 8/10/31 | — | — | — | — | ||||||||||||||||||||||||
Mahesh Karanth | 12/13/21(3) | — | — | — | — | 46,345 | 201,601 | — | — | |||||||||||||||||||||||
10/25/21(3) | — | — | — | — | 132,602 | 576,819 | — | — | ||||||||||||||||||||||||
08/11/21(4) | 19,185 | 211,046 | 15.84 | 08/10/31 | — | — | — | — | ||||||||||||||||||||||||
10/05/20(6) | 73,347 | 178,106 | 3.11 | 10/04/30 | — | — | — | — | ||||||||||||||||||||||||
12/22/17(5) | 1,005,817 | 0 | 2.16 | 12/21/27 | — | — | — | — | ||||||||||||||||||||||||
Amit Nagra | 12/13/21(3) | — | — | — | — | 34,758 | 151,197 | — | — | |||||||||||||||||||||||
10/25/21(2) | — | — | — | — | 99,452 | 432,616 | — | — | ||||||||||||||||||||||||
08/11/21(4) | 14,389 | 158,284 | 15.84 | 8/10/31 | — | — | — | — | ||||||||||||||||||||||||
05/20/15(7) | 1,737,779 | — | 0.54 | 5/19/25 | — | — | — | — |
(1) | RSUs vest annually over three years following the date of grant. | ||||
(2) | RSUs vest quarterly over a 48-month period August 11, 2021, subject to continued service. All unvested RSUs will vest upon an involuntary termination on or within 12 months following a Change in Control as defined in the 2021 Plan. | ||||
(3) | RSUs vest quarterly over a 48-month period following August 11, 2021, subject to continued service. | ||||
(4) | Option vests monthly over a 48-month period following the grant date, subject to continued service. All unvested options will vest upon an involuntary termination on or within 12 months following a Change in Control as defined in the 2021 Plan. | ||||
(5) | Option vests monthly over a 48-month period, with 25% vesting on December 20, 2018 and the remaining portion vesting in 36 equal monthly installments |
Option vests monthly over a 48-month period following the grant date. All unvested options will vest in the event of a Change in Control or Sale of Assets, each as defined in the 2013 Plan. |
Options 48-month period, with 25% vesting on first anniversary of the grant date and the remaining portion vesting in 36 equal monthly installments |
• | each person who is known to be the beneficial owner of more than 5% of Rockley’s ordinary shares; |
• | each of Rockley’s named executive officers, current executive officers and directors; and |
• | all executive officers and directors of Rockley as a group. |
Name and Address of Beneficial Owner (1) | Number of Shares Beneficially Owned | Percentage | ||||||
5% Holders: | ||||||||
SC Health Group Limited (2) | 9,237,500 | 7.3 | % | |||||
Hengtong Optic-Electric International Co. Limited | 6,949,317 | 5.5 | % | |||||
Executive Officers and Directors: | ||||||||
Andrew Rickman (3) | 17,462,734 | 13.8 | % | |||||
Mahesh Karanth (4) | 1,262,791 | 1.0 | % | |||||
Amit Nagra (5) | 1,771,042 | 1.4 | % | |||||
William Huyett | — | — | ||||||
Brian Blaser | — | — | ||||||
Caroline Brown (6) | 62,085 | * | ||||||
Karim Karti | — | — | ||||||
Michele Klein | — | — | ||||||
Pamela Puryear | — | — | ||||||
All directors and executive officers as a group (nine individuals) (7) | 20,558,652 | 16.2 | % |
Name and Address of Beneficial Owner (1) | Number of Shares Beneficially Owned | Percentage | ||||||
5% Holders: | ||||||||
ROC SPV XIX LLC(2) | 12,978,101 | 9.9% | ||||||
Hengtong Optic-Electric International Co. Limited (3) | 6,949,317 | 5.3% | ||||||
Wazee Street Capital Management LLC (4) | 12,978,101 | 9.9% | ||||||
Whitebox Advisors LLC (5) | 12,978,101 | 9.9% | ||||||
Named Executive Officers, Current Executive Officers and Directors: | ||||||||
Andrew Rickman (6) | 17,564,188 | 13.5% | ||||||
Chad Becker | 3,166 | * | ||||||
Mahesh Karanth(7) | 1,187,988 | * | ||||||
Amit Nagra(8) | 1,808,951 | 1.4% | ||||||
William Huyett | 32,333 | * | ||||||
Brian Blaser | 54,393 | * | ||||||
Caroline Brown (9) | 55,510 | * | ||||||
Nicolaus Henke | — | — | ||||||
Karim Karti | 31,333 | * | ||||||
Michele Klein | 7,333 | * | ||||||
Pamela Puryear | 7,333 | * | ||||||
All directors and executive officers as a group (nine individuals) (10). | 17,755,589 | 13.7% |
(1) | Unless otherwise noted, the business address of each of those listed in the table above is 3rd Floor 1 Ashley Road, Altrincham, Cheshire, United Kingdom, WA14 2DT. |
(2) | Based on a Schedule 13G filed on June 23, 2022. Represents ordinary shares deemed to be beneficially | ||||
(3) | Based on a Schedule 13G/A filed on February 14, 2022. Lawrence Lau holds voting and dispositive power over these shares and disclaims beneficial ownership | ||||
(4) | Based on a Schedule 13G filed on June 13, 2022. Represents ordinary shares owned by (i) Wazee Street Opportunities Fund V LP, a Delaware limited partnership (“Fund V”); (ii) Wazee Street Capital Management LLC, a Delaware limited liability company (“Wazee Capital”), which serves as the |
(5) | Based on a Schedule 13G filed on June 6, 2022. Each of Whitebox Advisors LLC, a Delaware limited liability company (“WA”) and Whitebox General Partner LLC, a Delaware limited liability company (“WGP”), as a result of WA’s clients’ ownership, holds voting and dispositive power over these shares. Includes: (i) 144A Warrants to purchase 4,870,130 ordinary shares at an exercise price of $5.00 per ordinary share; (ii) $15,000,000 principal amount of Notes, which are convertible into 4,870,130 ordinary shares based on the |
Includes 17,496,005 ordinary shares and 68,183 ordinary shares subject to options and restricted stock units held by Dr. Rickman exercisable (with respect to options) or which will vest (with respect to restricted stock units) within 60 days of June 30, 2022, respectively. Dr. Rickman has pledged up to 6.0 million of his |
Name of Selling Stockholder | Number of Ordinary Shares Owned Prior to Offering | Number of Ordinary Shares to be Offered Pursuant to this Prospectus 1 | Number of Ordinary Shares Owned After Offering 2 | |||||||||||||||||
Number | Percent | Number | Percent | |||||||||||||||||
Andrew George Rickman 3 | 17,462,734 | 13.8 | % | 17,462,734 | — | — | ||||||||||||||
SC Health Holdings Limited 4 | 7,187,500 | 5.7 | % | 7,187,500 | — | — | ||||||||||||||
RP Bridge LLC 5 | 1,941,187 | 1.5 | % | 1,941,187 | — | — | ||||||||||||||
Roc SPV XIV LLC 6 | 1,808,813 | 1.4 | % | 1,808,813 | — | — | ||||||||||||||
Mahesh Karanth 7 | 5,520 | * | 5,520 | — | — | |||||||||||||||
Amit Nagra 8 . | 33,263 | * | 33,263 | — | — | |||||||||||||||
Robert James Rickman 9 | 735,319 | * | 735,319 | — | — | |||||||||||||||
Sunit Rikhi 10 | 185,597 | * | 185,597 | — | — | |||||||||||||||
Markku Hirvonen 11 | 420,648 | * | 420,648 | — | — | |||||||||||||||
Aaron Zilkie 12 | 2,483,500 | 1.97 | % | 2,483,500 | — | — | ||||||||||||||
Ara Nazarian 13 | 5,545 | * | 5,545 | — | — | |||||||||||||||
Averil Finn 14 | 759,131 | * | 759,131 | — | — | |||||||||||||||
Edward Geoffrey Rickman 15 | 4,967 | * | 4,967 | — | — | |||||||||||||||
George James Rickman 16 | 4,967 | * | 4,967 | — | — | |||||||||||||||
Gregory Finn 17 | 284,360 | * | 284,360 | — | — | |||||||||||||||
Hengtong Optic-Electric International Co. Limited 18 | 6,949,317 | 5.5 | % | 6,949,317 | — | — | ||||||||||||||
Julia Rickman 19 | 24,812 | * | 24,812 | — | — | |||||||||||||||
Morningside Technology Ventures Limited 20 | 2,666,561 | 2.11 | % | 2,666,561 | — | — | ||||||||||||||
Moulton Goodies Limited 21 | 3,014,452 | 2.39 | % | 3,014,452 | — | — | ||||||||||||||
Rebecca Harriet Rickman 22 | 4,967 | * | 4,967 | — | — | |||||||||||||||
Richard von Tscharner 23 | 6,003,116 | 4.75 | % | 6,003,116 | — | — | ||||||||||||||
Caroline Brown 24 | 62,085 | * | 62,085 | — | — |
(7) | Includes 29,435 ordinary shares and 1,158,553 ordinary shares subject to options and restricted stock units held by Mr. Karanth exercisable (with respect to options) or which will vest (with respect to restricted stock units) within 60 days of June 30, 2022, respectively. | ||||
(8) | Includes 755,367 ordinary shares and 1,053,584 ordinary shares subject to options and restricted stock units held by Dr. Nagra exercisable (with respect to options) or which will vest (with respect to restricted stock units) within 60 days of June 30, 2022, respectively. |
(9) | Represents 7,333 ordinary shares and 48,177 ordinary shares subject to options and restricted stock units held by Dr. Brown exercisable (with respect to options) or which will vest (with respect to restricted stock units) within 60 days of June 30, 2022, respectively. | ||||
(10) | Includes 116,360 ordinary shares subject to options and restricted stock units held by our current directors and executive officers exercisable within 60 days of June 30, 2022, respectively. Excludes Mr. Karanth, who resigned as Chief Financial Officer effective June 17, 2022, and Dr. Nagra, whose employment was terminated on April 15, 2022. |
Name of Selling Stockholder1 | Number of Ordinary Shares Owned Prior to Offering | Number of Ordinary Shares to be Offered Pursuant to this Prospectus2 | Number of Ordinary Shares Owned After Offering3 | ||||||||||||||||||||||||||
Number | Percent | Number | Percent | ||||||||||||||||||||||||||
Highbridge Tactical Credit Master Fund, L.P. | 12,978,101 | 4 | 9.9% | 10,744,527 | — | — | |||||||||||||||||||||||
ROC SPV XIX LLC | 12,978,101 | 5 | 9.9% | 39,217,523 | — | — | |||||||||||||||||||||||
Wazee Street Opportunities Fund V LP | 12,978,101 | 6 | 9.9% | 21,489,053 | — | — | |||||||||||||||||||||||
Whitebox Multi-Strategy Partners, L.P. | 10,389,612 | 7 | 7.4 | % | 8,595,623 | — | — | ||||||||||||||||||||||
Whitebox Relative Value Partners, LP | 7,142,856 | 8 | 5.2 | % | 5,909,489 | — | — | ||||||||||||||||||||||
Whitebox GT Fund, LP | 1,298,700 | 9 | 1.0 | % | 1,074,452 | — | — | ||||||||||||||||||||||
Pandora Select Partners, LP | 649,352 | 10 | * | 537,228 | — | — |
_______________ | ||||||||
* | Represents less than 1% of the outstanding shares. | |||||||
1 | Unless otherwise noted, the business address of each of those listed in the table above is 3rd Floor 1 Ashley Road, Altrincham, Cheshire, United Kingdom, WA14 2DT. | |||||||
2 | Represents the number of ordinary shares that may be offered by the selling shareholders using this prospectus. These amounts do not represent any other ordinary shares that the selling shareholder may own beneficially or otherwise. These amounts include the amount of ordinary shares initially issuable to a selling shareholder upon (i) conversion by such holder of all of the Notes in which it holds a beneficial interest at a conversion price of $3.08 per ordinary share and (ii) the exercise by such holder of all of the 144A Warrants in which it holds a beneficial interest at an exercise price of $5.00 per ordinary share. These amounts also include: (X) the additional ordinary shares that would have become due in connection with such conversion by such holder assuming that such holder converted its Notes on the date they were issued and the interest make-whole payment (as defined in the Indenture) that may become due in connection therewith was paid in ordinary shares or that would be due upon conversion by such holder of all such Notes in connection with a make-whole fundamental change (as defined in the Indenture); and (Y) the additional ordinary shares that, together with the amount of ordinary shares described in clause (ii) of the immediately preceding sentence, would be issuable to such selling shareholder upon the exercise of all of the 144A Warrants held by it in connection with a ratchet anti-dilution adjustment as provided in the 144A Warrants at an assumed exercise price of $2.80 per ordinary share (the floor price for such ratchet anti-dilution adjustment) as a result thereof. The number of ordinary shares issuable in connection with an interest make-whole payment, if any, or a ratchet anti-dilution adjustment, if any, represent good faith estimates only and the actual number of ordinary shares which may be issued, if any, may vary. The information in this prospectus is not intended to constitute an indication or prediction of (i) the date on which the selling shareholders or Rockley will convert the Notes into ordinary shares, or on which the selling shareholders will exercise the 144A Warrants, if at all, or (ii) if the interest make-whole payment (as defined in the Indenture) becomes due in connection with the conversion of any Note, whether Rockley would elect to make such payment in ordinary shares or have satisfied the conditions set forth in the Indenture to make such payment in ordinary shares. These amounts do not include any ordinary shares issuable upon conversion of the Additional Notes or exercise of the Additional 144A Warrants and do not give effect to the Beneficial Ownership Limitation. These amounts may not equal to the total number of shares offered pursuant to this prospectus due to rounding. As noted above, these amounts do not give effect to the Beneficial Ownership Limitation, and thus may exceed the number of shares listed as beneficially owned under “Number of Ordinary Shares Owned Prior to Offering”, which amounts give effect to the Beneficial Ownership Limitation. |
3 | Assumes that all ordinary shares being registered under the registration statement of which this prospectus forms a part are sold in this offering, and that none of the selling securityholders acquire additional ordinary shares after the date of this prospectus and prior to completion of this offering. | |||||||
4 | Consists of |
5 | Based on a Schedule 13G filed on June 23, 2022 by or on behalf of ROC SPV XIX LLC and other information provided by the |
selling shareholder. Consists of |
Based on a Schedule 13G filed on June 13, 2022 by or on behalf of Wazee Street Opportunities Fund V LP and other information provided by the |
selling shareholder. Consists of |
7 | Based on a Schedule 13G filed on June 6, 2022 by or on behalf of Whitebox Multi-Strategy Partners, L.P. and other information provided by the selling shareholder. Consists of (i) 144A Warrants to purchase 2,597,403 ordinary shares at an exercise price of $5.00 per share, (ii) $8,000,000 principal amount of Notes, which are convertible into 2,597,403 ordinary shares per the initial conversion price of $3.08 per ordinary share and (iii) the option to acquire an additional $8,000,000 principal amount of Notes, which would be convertible into 2,597,403 ordinary shares per the initial conversion price of $3.08 per ordinary share, and additional 144A Warrants to purchase 2,597,403 ordinary shares at an exercise price of $5.00 per share, which option is exercisable from the date of the issuance of the Notes until the |
8 | Based on a Schedule 13G filed on June 6, 2022 by or on behalf of Whitebox Relative Value Partners, LP and other information provided by the selling shareholder. Consists of (i) 144A Warrants to purchase 1,785,714 ordinary shares at an exercise price of $5.00 per share, (ii) $5,500,000 principal amount of Notes, which are convertible into 1,785,714 ordinary shares per the initial conversion price of $3.08 per ordinary share and (iii) the option to acquire an additional $5,500,000 principal amount of Notes, which would be convertible into 1,785,714 ordinary shares per the initial conversion price of $3.08 per ordinary share, and additional 144A Warrants to purchase 1,785,714 ordinary shares at an exercise price of $5.00 per share, which option is exercisable from the |
9 | Based on a Schedule 13G filed on June 6, 2022 by or on behalf of Whitebox GT Fund, LP and other information provided by the selling shareholder. Consists of (i) 144A Warrants to purchase 324,675 ordinary shares at an exercise price of $5.00 per share, (ii) $1,000,000 principal amount of Notes, which are convertible into 324,675 ordinary shares per the initial conversion price of $3.08 per ordinary share and (iii) the option to acquire an additional $1,000,000 principal amount of Notes, which would be convertible into 324,675 ordinary shares per the initial conversion price of $3.08 per ordinary share, and additional 144A Warrants to purchase 324,675 ordinary shares at an exercise price of $5.00 per share, which option is exercisable from the | |||||||
10 | Based on a Schedule 13G filed on June 6, 2022 by or on behalf of Pandora Select Partners, LP and other information provided by the selling shareholder. Includes (i) 144A Warrants to purchase 162,338 ordinary shares at an exercise price of $5.00 per share, (ii) $500,000 principal amount of Notes, which are convertible into 162,338 ordinary shares per the initial conversion price of $3.08 per ordinary share and (iii) the option to acquire an additional $500,000 principal amount of Notes, which would be convertible into 162,338 ordinary shares per the initial conversion price of $3.08 per ordinary share, and additional 144A Warrants to purchase 162,338 ordinary shares at an exercise price of $5.00 per share, which option is exercisable from the date of the issuance of the Notes until the date that is 12 months following the effective date of the registration statement covering the ordinary shares underlying the Notes. The number of shares being offered hereby does not include shares issuable upon the conversion of Notes or the exercise of 144A Warrants which may be acquired pursuant to such option as such option has not been exercised. Each of (i) through (iii) are subject to the Beneficial Ownership Limitation. Whitebox Advisors LLC is the investment manager of Whitebox GT Fund, LP and has the power to vote and dispose of such shares. Whitebox Advisors LLC is owned by the Whitebox Members, and such individuals and entity disclaim beneficial ownership of the shares except to the extent of its or his direct or indirect economic interest in Whitebox Advisors LLC or Pandora Select Partners, LP. Excludes any ordinary shares that may be issuable in connection with an interest make-whole payment, if any, or a ratchet anti-dilution adjustment, if any, as these shares will be issuable solely as the result of actions or elections taken or made by the Company, and thus holders of the warrants and Notes do not have the right to acquire beneficial ownership of such ordinary shares within 60 days of June 30, 2022. The address of Pandora Select Partners, LP is 3033 Excelsior Boulevard, Minneapolis, MN 55416. |