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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________
FORM 10-Q
_____________________________________________
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from     to
Commission file number 001-39535
SHARECARE, INC.
(Exact name of registrant as specified in its charter)
Delaware 85-1365053
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
255 East Paces Ferry Road NE, Suite 700
Atlanta, Georgia
30305
(Address of Principal Executive Offices)(Zip Code)
(404) 671-4000
(Registrant's telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001 per shareSHCRThe Nasdaq Stock Market LLC
Warrants, each warrant exercisable for one share of common stock, each at an exercise price of $11.50 per shareSHCRWThe Nasdaq Stock Market LLC
    Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated fileroAccelerated filero
Non-accelerated filerxSmaller reporting companyx
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x
As of November 10, 2021, there were 339,034,410 shares of the registrant’s common stock, par value $0.0001 per share, outstanding.


Sharecare, Inc.
Table of Contents
Page
i

Part I - Financial Information
Item 1. Financial Statements
SHARECARE, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
As of September 30,
2021
As of December 31,
2020
Assets
Current assets:
Cash and cash equivalents$325,915 $22,603 
Accounts receivable, net (net of allowance for doubtful accounts of $5,712 and $5,707, respectively)
85,062 70,540 
Other receivables 2,520 3,152 
Prepaid expenses10,056 3,876 
Other current assets2,502 1,521 
Total current assets426,055 101,692 
Property and equipment, net4,586 4,073 
Other long term assets11,918 6,226 
Intangible assets, net151,481 78,247 
Goodwill189,702 75,736 
Total assets$783,742 $265,974 
Liabilities, Redeemable Noncontrolling Interest, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
Current liabilities:
Accounts payable$22,248 $19,346 
Accrued expenses and other current liabilities (Note 4)41,828 41,669 
Deferred revenue21,037 9,907 
Contract liabilities, current4,470 4,045 
Debt, current (Note 7 and 13)  1,011 
Total current liabilities89,583 75,978 
Contract liabilities, noncurrent2,894 6,261 
Warrant liabilities34,692 4,963 
Long-term debt (Note 7 and 13)243 171,213 
Other long-term liabilities47,814 17,015 
Total liabilities175,226 275,430 
Commitments and contingencies (Note 12)
Redeemable noncontrolling interest 4,000 
Series A redeemable convertible preferred stock, $0.0001 par value; 5,000,000 and no shares authorized; 5,000,000 and no shares issued and outstanding, aggregate liquidation preference of $50,000 and 0 as of September 30, 2021 and December 31, 2020, respectively (1)
58,205  
Stockholders’ equity (deficit):
Common stock $0.0001 par value; 600,000,000 and 424,353,300 shares authorized; 339,034,410 and 217,106,957 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively (1)
34 22 
Additional paid-in capital1,037,377 377,134 
Accumulated other comprehensive loss(1,728)(702)
Accumulated deficit(487,322)(392,113)
Total Sharecare stockholders’ equity (deficit) (1)
548,361 (15,659)
Noncontrolling interest in subsidiaries1,950 2,203 
Total stockholders’ equity (deficit) (1)
550,311 (13,456)
Total liabilities, redeemable noncontrolling interest, redeemable convertible preferred stock and stockholders’ equity (deficit)$783,742 $265,974 
(1) Retroactively restated for the Reverse Recapitalization as a result of the Business Combination as described in Notes 1 and 2.

The accompanying notes are an integral part of these consolidated financial statements.
1

SHARECARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2021202020212020
Revenue$105,618 $80,236 $293,686 $240,392 
Costs and operating expenses:
Costs of revenue (exclusive of depreciation and amortization below)51,255 36,905 144,283 117,153 
Sales and marketing12,492 6,338 36,047 24,227 
Product and technology16,334 10,459 52,600 31,606 
General and administrative46,307 15,402 85,060 53,085 
Depreciation and amortization8,751 6,056 22,601 19,103 
Total costs and operating expenses135,139 75,160 340,591 245,174 
Income (loss) from operations(29,521)5,076 (46,905)(4,782)
Other income (expense):
Interest income20 8 49 61 
Interest expense(12,836)(8,102)(26,941)(23,525)
Loss on extinguishment of debt(1,148) (1,148) 
Other income (expense)(86)41 (20,815)(270)
Total other expense(14,050)(8,053)(48,855)(23,734)
Loss before income tax benefit(43,571)(2,977)(95,760)(28,516)
Income tax benefit507 467 520 694 
Loss from equity method investment (3,902) (3,902)
Net loss(43,064)(6,412)(95,240)(31,724)
Net (loss) income attributable to noncontrolling interest in subsidiaries51 (104)(31)(372)
Net loss attributable to Sharecare, Inc.$(43,115)$(6,308)$(95,209)$(31,352)
Net loss per share attributable to common stockholders, basic and diluted (1)
$(0.13)$(0.03)$(0.36)$(0.15)
Weighted-average common shares outstanding, basic and diluted (1)
334,982,150 222,927,484 263,558,268 220,150,504 
Net loss$(43,064)$(6,412)$(95,240)$(31,724)
Other comprehensive loss adjustments:
Foreign currency translation(741)482 (1,112)(1,306)
Comprehensive loss(43,805)(5,930)(96,352)(33,030)
Comprehensive (loss) income attributable to noncontrolling interest in subsidiaries(119)(186)(117)(1,292)
Comprehensive loss attributable to Sharecare, Inc.$(43,686)$(5,744)$(96,235)$(31,738)
(1) Retroactively restated for the Reverse Recapitalization as a result of the Business Combination as described in Notes 1 and 2.

The accompanying notes are an integral part of these consolidated financial statements.
2

SHARECARE, INC.
CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT) (1)
(Unaudited)
(In thousands, except share amounts)

Redeemable
Non-
Controlling
Interest
Redeemable Convertible
Preferred Stock
Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Noncontrolling
Interest
Total
Stockholders’ Equity
(Deficit)
SharesAmountSharesAmount
Balance at December 31. 2020, as previously reported $4,000 896,533 $190,875 2,150,217$2$186,279 $(702)$(392,113)$2,203 $(204,331)
Conversion of shares due to Reverse Recapitalization
 (896,533)(190,875)214,956,74020190,855    190,875 
Balance at December 31. 2020, effect of Reverse Recapitalization$4,000  $ 217,106,957 $22 $377,134 $(702)$(392,113)$2,203 $(13,456)
Stock options exercised— — — 1,425,1001,375 — — — 1,375 
Issuance of common stock for doc.ai acquisition— — — 8,435,301181,292 — — — 81,293 
Issuance of warrants in connection with debt and revenue arrangements— — — 39 — — — 39 
Conversion of warrants to common shares— — — 672,324645 — — — 645 
Share-based compensation— — — 12,026 — — — 12,026 
Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — (18)— (88)(106)
Currency translation adjustment— — — — (791)— (169)(960)
Net income (loss) attributable to Sharecare, Inc.— — — — — (31,846)— (31,846)
Other— — — — — (988)— — — (988)
Balance at March 31. 2021$4,000  $ 227,639,682 $23 $471,523 $(1,511)$(423,959)$1,946 $48,022 
Stock options exercised— — — 233,372 — 255 — — — 255 
Conversion of convertible warrants to common shares— — — 53,658  75 — — — 75 
Common stock issued to settle contingent consideration from acquisitions in prior years— — — 1,078,213 — — — — —  
Share-based compensation— — — — — 2,360 — — — 2,360 
Dissolution of redeemable noncontrolling interest for Visualize Health(4,000)— — 895,435 — 4,136 — — (136)4,000 
Issuance of Series D redeemable convertible preferred stock, net of issuance costs and antidilution provisions— 4,453,659 51,754 — — — — — — — 
Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — — — — — 24 24 
Currency translation adjustment— — — — — — 354 — 235 589 
Net income (loss) attributable to Sharecare, Inc.— — — — — — — (20,248)— (20,248)
Balance at June 30, 2021$ 4,453,659 $51,754 229,900,360 $23 $478,349 $(1,157)$(444,207)$2,069 $35,077 
3

 Stock options exercised — — — 683,463 — 1,121 — — — 1,121 
 Issuance of warrants in connection with debt and revenue arrangements — — — — — 22 — — — 22 
 Issuance of stock for doc.ai antidilution provision — — — 1,052,398 — 12,682 — — — 12,682 
 Conversion of convertible warrants to common shares — — — 10,921,334 1 10,760 — — — 10,761 
 Conversion of convertible notes to common shares — — — 37,695,910 4 136,395 — — — 136,399 
 Issuance of stock for Series D antidilution provision — 546,341 6,451 — — — — — — — 
 Issuance of common stock for CareLinx acquisition — — — 1,262,475  10,348 — — — 10,348 
 Business Combination and Private Placement financing, net of issuance costs— — — 57,451,915 6 376,570 — — — 376,576 
 Share-based compensation — — — — — 11,130 — — — 11,130 
 Net income (loss) attributable to noncontrolling interest in subsidiaries — — — — — — — — 51 51 
 Currency translation adjustment — — — — — — (571)— (170)(741)
 Net income (loss) attributable to Sharecare, Inc. — — — — — — — (43,115)— (43,115)
 Other — — — 66,555 — — — — —  
Balance at September 30, 2021$ 5,000,000 $58,205 339,034,410 $34 $1,037,377 $(1,728)$(487,322)$1,950 $550,311 
(1) Retroactively restated for the Reverse Recapitalization as a result of the Business Combination as described in Notes 1 and 2.

The accompanying notes are an integral part of these consolidated financial statements.

















4

SHARECARE, INC.
CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT) (1)
(Unaudited)
(In thousands, except share amounts)
Redeemable
Non-
Controlling
Interest
Redeemable Convertible
Preferred Stock
Common Stock
Additional
Paid-In
Capital
Accumulated
Other
Comprehensive
Loss
Accumulated
Deficit
Noncontrolling
Interest
Total
Stockholders’ Equity
(Deficit)
SharesAmountSharesAmount
Balance at December 31, 2019$ 877,854 $183,983 2,083,916$2$155,617 $(1,202)$(332,095)$3,251 $(174,427)
Conversion of shares due to Reverse Recapitalization
 (877,854)(183,983)208,967,49019183,964    183,983 
Balance as of December 31. 2019, effect of Reverse Recapitalization$  $ 211,051,406 $21 $339,581 $(1,202)$(332,095)$3,251 $9,556 
Stock options exercised— — — 58,36161— — — 61 
Issuance of redeemable noncontrolling interest for and stock for Visualize Health acquisitions5,040 — — 584— — — 584 
Change in fair value of redeemable noncontrolling interest in subsidiaries960 — — (960)— — — (960)
Share-based compensation— — — 647— — — 647 
Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — — 32 32 
Currency translation adjustment— — — (1,014)— (740)(1,754)
Net income (loss) attributable to Sharecare, Inc.— — — — (11,633)— (11,633)
Other— — — — — 135— — — 135 
Balance at March 31, 2020$6,000  $ 211,109,767 $21 $340,048 $(2,216)$(343,728)$2,543 $(3,332)
Stock options exercised— — — 66,769 — 70 — —  70 
Issuance of stock for Mindsciences acquisition— — — 3,386,990  7,547 — — — 7,547 
Share-based compensation— — — — — 5,166 — — — 5,166 
Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — — — — — (300)(300)
Currency translation adjustment— — — — — — 64 — (98)(34)
Net income (loss) attributable to Sharecare, Inc.— — — — — — — (13,409)— (13,409)
Balance at June 30, 2020$6,000  $ 214,563,526$21$352,831$(2,152)$(357,137)$2,145 $(4,292)
 Stock options exercised — — — 170,522  143    143 
 Issuance of warrants in connection with debt and revenue arrangements — — — — — 35 — — — 35 
 Issuance of common stock for Whitehat acquisition — — — 1,425,171  2,160 — — — 2,160 
 Share-based compensation — — — — — 630 — — — 630 
 Net income (loss) attributable to noncontrolling interest in subsidiaries — — — — — — — — (104)(104)
 Currency translation adjustment — — — 564 — (82)482 
 Net income (loss) attributable to Sharecare, Inc. — — — — (6,308)— (6,308)
Balance at September 30, 2020$6,000  $ 216,159,219 $21 $355,799 $(1,588)$(363,445)$1,959 $(7,254)
(1) Retroactively restated for the Reverse Recapitalization as a result of the Business Combination as described in Notes 1 and 2.
The accompanying notes are an integral part of these consolidated financial statements
5

SHARECARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands, except share and per share amounts)

Nine Months Ended
September 30,
20212020
Cash flows from operating activities:
Net loss$(95,240)$(31,724)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense22,601 19,103 
Non-cash interest expense4,434 17,364 
Write-off of deferred financing fees and debt discount12,063  
Loss on extinguishment of debt1,148