QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the quarterly period ended |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||
For the transition period from to |
| ||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Large accelerated filer | o | Accelerated filer | o | ||||||||
x | Smaller reporting company | ||||||||||
Emerging growth company |
Page | ||||||||
As of June 30, 2022 | As of December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net (net of allowance for doubtful accounts of $ | |||||||||||
Other receivables | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Other long-term assets | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities (Note 4) | |||||||||||
Deferred revenue | |||||||||||
Contract liabilities, current | |||||||||||
Debt, current (Note 8) | |||||||||||
Total current liabilities | |||||||||||
Contract liabilities, noncurrent | |||||||||||
Warrant liabilities | |||||||||||
Long-term debt (Note 8) | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 11) | |||||||||||
Series A redeemable convertible preferred stock, $ | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Accumulated deficit | ( | ( | |||||||||
Total Sharecare stockholders’ equity | |||||||||||
Noncontrolling interest in subsidiaries | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities, redeemable convertible preferred stock and stockholders’ equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Costs and operating expenses: | |||||||||||||||||||||||
Costs of revenue (exclusive of depreciation and amortization below) | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Product and technology | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Total costs and operating expenses | |||||||||||||||||||||||
Loss from operations | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Other income (expense) | ( | ( | |||||||||||||||||||||
Total other income (expense) | ( | ( | |||||||||||||||||||||
Loss before income tax benefit (expense) | ( | ( | ( | ( | |||||||||||||||||||
Income tax benefit (expense) | ( | ( | |||||||||||||||||||||
Net loss | ( | ( | ( | ( | |||||||||||||||||||
Net (loss) income attributable to noncontrolling interest in subsidiaries | ( | ( | ( | ||||||||||||||||||||
Net loss attributable to Sharecare, Inc. | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted (1) | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Weighted-average common shares outstanding, basic and diluted (1) | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Other comprehensive loss adjustments: | |||||||||||||||||||||||
Foreign currency translation | ( | ( | ( | ||||||||||||||||||||
Comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive (loss) income attributable to noncontrolling interest in subsidiaries | ( | ( | |||||||||||||||||||||
Comprehensive loss attributable to Sharecare, Inc. | $ | ( | $ | ( | $ | ( | $ | ( |
Redeemable Noncontrolling Interest | Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31. 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon vesting of restricted stock units | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants in connection with debt and revenue arrangements | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock for WhitehatAI earnout | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of stock for doc.ai escrow shares | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest in subsidiaries | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Sharecare, Inc. | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | ( | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31. 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued upon vesting of restricted stock units | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants in connection with debt and revenue arrangements | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest in subsidiaries | — | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Sharecare, Inc. | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
CareLinx working capital adjustment | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2022 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Redeemable Noncontrolling Interest | Redeemable Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Noncontrolling Interest | Total Stockholders’ Equity (Deficit) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31. 2020 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock for doc.ai acquisition | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of warrants in connection with debt and revenue arrangements | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of warrants to common shares | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest in subsidiaries | — | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Sharecare, Inc. | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31. 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercised | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Convertible Warrants to common shares | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued to settle contingent consideration from acquisitions in prior years | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dissolution of Redeemable NCI for Visualize Health | ( | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of Series D redeemable convertible preferred stock, net of issuance costs and antidilution provisions | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to non-controlling interest in subsidiaries | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Sharecare, Inc. | — | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | $ | $ | $ | $ | $ | ( | $ | ( | $ | $ |
Six Months Ended June 30, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization expense | |||||||||||
Non-cash interest expense | |||||||||||
Amortization of contract liabilities | ( | ( | |||||||||
Accretion of contract liabilities | |||||||||||
Lease right-of-use assets expense | |||||||||||
Change in fair value of warrant liability and contingent consideration | ( | ||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | ( | ||||||||||
Other | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net and other receivables | ( | ||||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable and accrued expense | ( | ||||||||||
Operating lease liabilities | |||||||||||
Deferred revenue | ( | ||||||||||
Net cash provided by (used in) operating activities | ( | ||||||||||
Cash flows from investing activities: | |||||||||||
Acquisition of doc.ai | ( | ||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Capitalized internal-use software costs | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of redeemable convertible preferred stock | |||||||||||
Proceeds from issuance of debt | |||||||||||
Repayment of debt | ( | ||||||||||
Proceeds from exercise of common stock options | |||||||||||
Payments on financing lease obligations | ( | ( | |||||||||
Financing costs in conjunction with the issuance of debt | ( | ||||||||||
Net cash provided by financing activities | |||||||||||
Effect of exchange rates on cash and cash equivalents | ( | ( | |||||||||
Net (decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
CareLinx working capital adjustment | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Enterprise | $ | $ | $ | $ | |||||||||||||||||||
Provider | |||||||||||||||||||||||
Life Sciences | |||||||||||||||||||||||
Total Revenue | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Re-measurement of contingent consideration | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Re-measurement of warrant liabilities | ( | ( | |||||||||||||||||||||
Other | |||||||||||||||||||||||
Total other income (expenses) | $ | $ | ( | $ | $ | ( |
June 30, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Fair Value | ||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Total cash equivalents at fair value | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Warrant liabilities | $ | $ | $ | $ | |||||||||||||||||||
Contingent consideration – other liabilities | |||||||||||||||||||||||
Total liabilities at fair value | $ | $ | $ | $ |
December 31, 2021 | $ | ||||
Settlement of contingent consideration for HDS retained shares | ( | ||||
Re-measurement of contingent consideration | ( | ||||
June 30, 2022 | $ |
June 30, 2022 | December 31, 2021 | ||||||||||
Accrued expenses | $ | $ | |||||||||
Accrued compensation | |||||||||||
Accrued media costs | |||||||||||
Accrued taxes | |||||||||||
Operating lease liabilities, current | |||||||||||
Accrued other | |||||||||||
Total accrued expenses and other current liabilities | $ | $ |
Cash | $ | ||||
Accounts receivable | |||||
Other receivables | |||||
Prepaid expenses | |||||
Other current assets | |||||
Developed technology | |||||
Customer relationships | |||||
Trade name | |||||
Other long-term assets | |||||
Goodwill | |||||
Accrued expenses | ( | ||||
Contract liabilities - current | ( | ||||
Noncurrent contract liabilities | ( | ||||
Other long-term liabilities | ( | ||||
Total | $ |
June 30, 2022 | ||||||||||||||||||||||||||
Balance Sheet: | Financial position if ASU 2016-02 had not been adopted on January 1, 2022 | As reported under ASU 2016-02 adoption | $ Change | % Change | ||||||||||||||||||||||
Prepaid expenses | $ | $ | ( | ( | % | |||||||||||||||||||||
Other long-term assets | $ | $ | % | |||||||||||||||||||||||
Total assets | $ | $ | % | |||||||||||||||||||||||
Accrued expenses and other current liabilities | $ | $ | % | |||||||||||||||||||||||
Contract liabilities, current | $ | $ | ( | ( | % | |||||||||||||||||||||
Contract liabilities, noncurrent | $ | $ | ( | ( | % | |||||||||||||||||||||
Other long-term liabilities | $ | $ | % | |||||||||||||||||||||||
Total liabilities | $ | $ | % |
Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||||||
Operating lease costs | $ | $ | ||||||||||||
Variable lease costs | ||||||||||||||
Short-term lease expense | ||||||||||||||
Total operating lease costs | $ | $ | ||||||||||||
Weighted-average remaining lease term (years): | ||||||||||||||
Operating leases | ||||||||||||||
Weighted-average discount rate: | ||||||||||||||
Operating leases | % |
Six Months Ended June 30, 2022 | ||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Payments for operating leases included in cash from operating activities | $ | |||||||
Assets obtained in exchange for lease obligations: | ||||||||
Operating leases | $ |
Leases: | Operating Leases | |||||||
Remainder of 2022 | $ | |||||||
2023 | ||||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total undiscounted future cash flows | ||||||||
Less: Imputed interest | ( | |||||||
Present value of lease liabilities | $ | |||||||
Lease liabilities, current | ||||||||
Lease liabilities, noncurrent | ||||||||
Present value of lease liabilities | $ |
June 30, 2022 | |||||||||||||||||||||||
Cost | Accumulated Amortization | Net | Weighted Average Remaining Life | ||||||||||||||||||||
Definite-lived, intangible assets | |||||||||||||||||||||||
Technology – features/content | $ | $ | ( | $ | |||||||||||||||||||
Trade name | ( | ||||||||||||||||||||||
Customer relationships | ( | ||||||||||||||||||||||
Internal-use software | ( | ||||||||||||||||||||||
Total definite-lived, intangible assets | $ | $ | ( | $ | |||||||||||||||||||
Intangible assets not subject to amortization | |||||||||||||||||||||||
Internal-use software projects in process | $ | $ | — | $ | |||||||||||||||||||
Indefinite-lived, trade names | — | ||||||||||||||||||||||
Total intangible assets not subject to amortization | — | ||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ |
December 31, 2021 | $ | ||||
Purchase accounting opening balance sheet adjustments | ( | ||||
Foreign currency translation adjustment | ( | ||||
June 30, 2022 | $ |
Year ending December 31: | |||||
Remainder of 2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Classification | Warrants Outstanding | Exercise Price per Share | ||||||||||||
Equity | $ | |||||||||||||
Liability | $ |
Options Outstanding | Restricted Stock Units | |||||||||||||||||||||||||||||||
Number of Options | Weighted- Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in thousands) | Number of Plan shares outstanding | Weighted-Average Grant Date Fair Value per share | |||||||||||||||||||||||||||
Outstanding as of December 31, 2021 | $ | $ | $ | |||||||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||||||||
Exercised/Released | ( | ( | ||||||||||||||||||||||||||||||
Cancelled/Forfeited | ( | ( | ||||||||||||||||||||||||||||||
Outstanding as of June 30, 2022 | $ | $ | $ | |||||||||||||||||||||||||||||
Vested and/or exercisable as of June 30, 2022 | $ | $ | $ | |||||||||||||||||||||||||||||
Vested and/or exercisable as of December 31, 2021 | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Cost of revenues | $ | $ | $ | $ | |||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
Product and technology | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Total share-based compensation expense | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net loss | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Less: Net loss (income) attributable to noncontrolling interest in subsidiaries | ( | ||||||||||||||||||||||
Net loss available to common stockholders | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted-average common shares outstanding, basic and diluted | |||||||||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Convertible debt | |||||||||||||||||||||||
Stock options and restricted stock units | |||||||||||||||||||||||
Warrants to purchase common stock | |||||||||||||||||||||||
Redeemable convertible preferred stock | |||||||||||||||||||||||
Contingently issued shares | |||||||||||||||||||||||
Total |
Three Months Ended June 30, | ||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Revenue | $ | 103,823 | $ | 98,459 | $ | 5,364 | 5 | % | ||||||||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||||
Costs of revenue (exclusive of amortization and depreciation below) | 53,238 | 48,634 | 4,604 | 9 | % | |||||||||||||||||||||
Sales and marketing | 14,155 | 12,046 | 2,109 | 18 | % | |||||||||||||||||||||
Product and technology | 17,680 | 15,812 | 1,868 | 12 | % | |||||||||||||||||||||
General and administrative | 43,491 | 19,197 | 24,294 | 127 | % | |||||||||||||||||||||
Depreciation and amortization | 10,901 | 7,167 | 3,734 | 52 | % | |||||||||||||||||||||
Total costs and operating expenses | 139,465 | 102,856 | 36,609 | 36 | % | |||||||||||||||||||||
Loss from operations | (35,642) | (4,397) | (31,245) | 711 | % | |||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | 102 | 21 | 81 | 386 | % | |||||||||||||||||||||
Interest expense | (539) | (7,095) | 6,556 | (92) | % | |||||||||||||||||||||
Other income (expense) | 6,827 | (8,851) | 15,678 | 177 | % | |||||||||||||||||||||
Total other income (expense) | 6,390 | (15,925) | 22,315 | 140 | % | |||||||||||||||||||||
Loss before income tax benefit (expense) | (29,252) | (20,322) | (8,930) | 44 | % | |||||||||||||||||||||
Income tax benefit (expense) | (269) | 98 | (367) | (374) | % | |||||||||||||||||||||
Net loss | (29,521) | (20,224) | (9,297) | 46 | % | |||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest in subsidiaries | (496) | 24 | (520) | (2167) | % | |||||||||||||||||||||
Net loss attributable to Sharecare, Inc. | $ | (29,025) | $ | (20,248) | $ | (8,777) | 43 | % |
Six Months Ended June 30, | ||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | $ Change | % Change | ||||||||||||||||||||||
Revenue | $ | 204,533 | $ | 188,661 | $ | 15,872 | 8 | % | ||||||||||||||||||
Costs and operating expenses: | ||||||||||||||||||||||||||
Costs of revenue (exclusive of amortization and depreciation below) | 104,730 | 93,028 | 11,702 | 13 | % | |||||||||||||||||||||
Sales and marketing | 28,666 | 23,556 | 5,110 | 22 | % | |||||||||||||||||||||
Product and technology | 37,101 | 36,266 | 835 | 2 | % | |||||||||||||||||||||
General and administrative | 99,489 | 38,752 | 60,737 | 157 | % | |||||||||||||||||||||
Depreciation and amortization | 20,778 | 13,850 | 6,928 | 50 | % | |||||||||||||||||||||
Total costs and operating expenses | 290,764 | 205,452 | 85,312 | 42 | % | |||||||||||||||||||||
Loss from operations | (86,231) | (16,791) | (69,440) | 414 | % | |||||||||||||||||||||
Other income (expense) | ||||||||||||||||||||||||||
Interest income | 131 | 29 | 102 | 352 | % | |||||||||||||||||||||
Interest expense | (1,031) | (14,105) | 13,074 | (93) | % | |||||||||||||||||||||
Other income (expense) | 19,672 | (20,730) | 40,402 | 195 | % | |||||||||||||||||||||
Total other income (expense) | 18,772 | (34,806) | 53,578 | 154 | % | |||||||||||||||||||||
Loss before income tax benefit (expense) | (67,459) | (51,597) | (15,862) | 31 | % | |||||||||||||||||||||
Income tax benefit (expense) | (361) | 14 | (375) | (2679) | % | |||||||||||||||||||||
Net loss | (67,820) | (51,583) | (16,237) | 31 | % | |||||||||||||||||||||
Net loss attributable to noncontrolling interest in subsidiaries | (594) | (82) | (512) | 624 | % | |||||||||||||||||||||
Net loss attributable to Sharecare, Inc. | $ | (67,226) | $ | (51,501) | $ | (15,725) | 31 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss | $ | (29,521) | $ | (20,224) | $ | (67,820) | $ | (51,583) | |||||||||||||||
Add: | |||||||||||||||||||||||
Depreciation and amortization | 10,901 | 7,167 | 20,778 | 13,850 | |||||||||||||||||||
Interest income | (102) | (21) | (131) | (29) | |||||||||||||||||||
Interest expense | 539 | 7,095 | 1,031 | 14,105 | |||||||||||||||||||
Income tax (benefit) expense | 269 | (98) | 361 | (14) | |||||||||||||||||||
Other (income) expense | (6,827) | 8,851 | (19,672) | 20,730 | |||||||||||||||||||
Share-based compensation | 18,177 | 2,360 | 51,287 | 14,386 | |||||||||||||||||||
Severance | 411 | 200 | 770 | 265 | |||||||||||||||||||
Warrants issued with revenue contracts(a) | 14 | (1) | 34 | 38 | |||||||||||||||||||
Net costs associated with exiting contracts(b) | 1,249 | — | 2,923 | — | |||||||||||||||||||
Transaction and closing costs(c)(d) | 7,025 | 1,319 | 14,397 | 2,022 | |||||||||||||||||||
Adjusted EBITDA(e) | $ | 2,135 | $ | 6,648 | $ | 3,958 | $ | 13,770 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net loss attributable to Sharecare, Inc. | $ | (29,025) | $ | (20,248) | $ | (67,226) | $ | (51,501) | |||||||||||||||
Add: | |||||||||||||||||||||||
Amortization of acquired intangibles(a) | 1,631 | 1,160 | 3,263 | 2,228 | |||||||||||||||||||
Amortization of deferred financing fees | 70 | 1,656 | 138 | 3,331 | |||||||||||||||||||
Change in fair value of warrant liability and contingent consideration | (6,374) | 9,908 | (18,742) | 21,656 | |||||||||||||||||||
Share-based compensation | 18,177 | 2,360 | 51,287 | 14,386 | |||||||||||||||||||
Severance | 411 | 200 | 770 | 265 | |||||||||||||||||||
Warrants issued with revenue contracts(b) | 14 | (1) | 34 | 38 | |||||||||||||||||||
Net costs associated with exiting contracts(c) | 1,249 | — | 2,923 | — | |||||||||||||||||||
Transaction and closing costs(d)(e) | 7,025 | 1,319 | 14,397 | 2,022 | |||||||||||||||||||
Adjusted net loss(f) | $ | (6,822) | $ | (3,646) | $ | (13,156) | $ | (7,575) | |||||||||||||||
Weighted-average common shares outstanding, basic and diluted | 347,334,401 | 228,721,591 | 346,122,333 | 225,493,435 | |||||||||||||||||||
Loss per share | $ | (0.08) | $ | (0.09) | $ | (0.19) | $ | (0.23) | |||||||||||||||
Adjusted loss per share | $ | (0.02) | $ | (0.02) | $ | (0.04) | $ | (0.03) |
Six Months Ended June 30, | ||||||||||||||
(in thousands) | 2022 | 2021 | ||||||||||||
Net cash provided by (used in) operating activities | $ | (39,912) | $ | 80 | ||||||||||
Net cash used in investing activities | $ | (24,216) | $ | (18,458) | ||||||||||
Net cash provided by financing activities | $ | 4,753 | $ | 38,641 |
Exhibit | Description | |||||||
10.1 | ||||||||
10.2*# | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
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 | The cover page for the Company’s Quarterly Report on Form 10-Q has been formatted in Inline XBRL and contained in Exhibit 101 |
* | Filed herewith | ||||
** | Furnished herewith | ||||
# | Indicated a management contract or compensatory plan or arrangement. |
Dated: August 10, 2022 | SHARECARE, INC. | |||||||
By: /s/ Jeffrey Arnold | ||||||||
Name: | Jeffrey Arnold | |||||||
Title: | Chief Executive Officer (Principal Executive Officer) | |||||||
By: /s/ Justin Ferrero | ||||||||
Name: | Justin Ferrero | |||||||
Title: | President and Chief Financial Officer (Principal Financial Officer) |
Dated: August 10, 2022 | /s/ Jeffrey T. Arnold | |||||||||||||
Jeffrey T. Arnold | ||||||||||||||
Chief Executive Officer (Principal Executive Officer) |
Dated: August 10, 2022 | /s/ Justin Ferrero | |||||||||||||
Justin Ferrero | ||||||||||||||
President and Chief Financial Officer (Principal Financial Officer) |
By: | /s/ Jeffrey T. Arnold | |||||||
Jeffrey T. Arnold | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
By: | /s/ Justin Ferrero | |||||||
Justin Ferrero | ||||||||
President and Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Current assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 7,812 | $ 6,212 |
Stockholders’ equity: | ||
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares, issued | 351,926,366 | 345,788,707 |
Common stock, shares, outstanding | 351,926,366 | 345,788,707 |
Series A Preferred Stock | ||
Current assets: | ||
Redeemable convertible preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Redeemable convertible preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Redeemable convertible preferred stock, shares issued | 5,000,000 | 5,000,000 |
Redeemable convertible preferred stock, shares outstanding | 5,000,000 | 5,000,000 |
Redeemable convertible preferred stock, aggregate liquidation preference | $ 50,000 | $ 50,000 |
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
Income Statement [Abstract] | ||||||
Revenue | $ 103,823 | $ 98,459 | $ 204,533 | $ 188,661 | ||
Costs and operating expenses: | ||||||
Costs of revenue (exclusive of depreciation and amortization below) | 53,238 | 48,634 | 104,730 | 93,028 | ||
Sales and marketing | 14,155 | 12,046 | 28,666 | 23,556 | ||
Product and technology | 17,680 | 15,812 | 37,101 | 36,266 | ||
General and administrative | 43,491 | 19,197 | 99,489 | 38,752 | ||
Depreciation and amortization | 10,901 | 7,167 | 20,778 | 13,850 | ||
Total costs and operating expenses | 139,465 | 102,856 | 290,764 | 205,452 | ||
Loss from operations | (35,642) | (4,397) | (86,231) | (16,791) | ||
Other income (expense): | ||||||
Interest income | 102 | 21 | 131 | 29 | ||
Interest expense | (539) | (7,095) | (1,031) | (14,105) | ||
Other income (expense) | 6,827 | (8,851) | 19,672 | (20,730) | ||
Total other income (expense) | 6,390 | (15,925) | 18,772 | (34,806) | ||
Loss before income tax benefit (expense) | (29,252) | (20,322) | (67,459) | (51,597) | ||
Income tax benefit (expense) | (269) | 98 | (361) | 14 | ||
Net loss | (29,521) | (20,224) | (67,820) | (51,583) | ||
Net (loss) income attributable to noncontrolling interest in subsidiaries | (496) | 24 | (594) | (82) | ||
Net loss attributable to Sharecare, Inc. | $ (29,025) | $ (20,248) | $ (67,226) | $ (51,501) | ||
Net Loss per Share | ||||||
Net loss per share attributable to common stockholders, basic (in USD per share) | [1] | $ (0.08) | $ (0.09) | $ (0.19) | $ (0.23) | |
Net loss per share attributable to common stockholders, diluted (in USD per share) | [1] | $ (0.08) | $ (0.09) | $ (0.19) | $ (0.23) | |
Weighted-average common shares outstanding, basic (in shares) | [1] | 347,334,401 | 228,721,591 | 346,122,333 | 225,493,435 | |
Weighted-average common shares outstanding, diluted (in shares) | [1] | 347,334,401 | 228,721,591 | 346,122,333 | 225,493,435 | |
Comprehensive loss attributable to Sharecare, Inc. | ||||||
Net loss | $ (29,521) | $ (20,224) | $ (67,820) | $ (51,583) | ||
Foreign currency translation | (1,206) | 589 | (975) | (371) | ||
Comprehensive loss | (30,727) | (19,635) | (68,795) | (51,954) | ||
Comprehensive (loss) income attributable to noncontrolling interest in subsidiaries | (662) | 260 | (460) | 3 | ||
Comprehensive loss attributable to Sharecare, Inc. | $ (30,065) | $ (19,895) | $ (68,335) | $ (51,957) | ||
|
Nature of Business and Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nature of Business and Significant Accounting Policies | Nature of Business and Significant Accounting Policies Nature of Business Sharecare, Inc. (“Sharecare” or the “Company”) was founded in 2009 to develop an interactive health and wellness platform and began operations in October 2010. Sharecare’s virtual health platform is designed to help people, patients, providers, employers, health plans, government organizations, and communities optimize individual and population-wide well-being by driving positive behavior change. The platform is designed to connect each stakeholder to the health management tools they need to drive engagement, establish sustained participation, increase satisfaction, reduce costs, and improve outcomes. Sharecare bridges scientifically validated clinical programs with content to deliver a personalized experience for its members, beginning with the RealAge® test, Sharecare’s health risk assessment that shows members the true age of their body, capitalizing on people’s innate curiosity of how “young” they are to draw them into the platform. The Sharecare platform provides members with a personalized action plan to guide and educate them on the habits and behaviors making the biggest impact, both positive and negative, on their RealAge. Sharecare provides the resources members need to manage their health through lifestyle or disease management and coaching programs, such as diabetes management and smoking cessation, well-being solutions, such as financial health and anxiety management; care navigation tools such as find-a-doctor, prescription savings, clinical decision support, medical records, home care, and more. Additionally, Sharecare, through its subsidiary Sharecare Health Data Services, LLC (“HDS”), provides secure, automated release of information, audit and business consulting services to streamline the medical records process for medical facilities. Sharecare delivers value via its provider, enterprise, and life sciences channels. SPAC Transaction On July 1, 2021, Falcon Capital Acquisition Corp., the Company’s predecessor and a Delaware corporation (“FCAC”), consummated the business combination (the “Business Combination”) pursuant to the terms of the Agreement and Plan of Merger, dated February 12, 2021 (the “Merger Agreement”), with Sharecare, Inc., a Delaware corporation (“Legacy Sharecare”), FCAC Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of FCAC (“Merger Sub”), and the stockholder representative. Immediately upon the completion of the Business Combination and the other transactions contemplated by the Merger Agreement (the “Transactions”), Merger Sub merged with and into Legacy Sharecare with Legacy Sharecare surviving the merger as a wholly-owned subsidiary of the Company (as successor to FCAC). In addition, in connection with the consummation of the Business Combination, the Company changed its name to “Sharecare, Inc.” and Legacy Sharecare changed its name to “Sharecare Operating Company, Inc.” The Business Combination is further described in Note 2. Basis of Presentation and Consolidation Policy The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). Pursuant to the Merger Agreement, the merger between Merger Sub and Legacy Sharecare was accounted for as a reverse recapitalization in accordance with GAAP (the “Reverse Recapitalization”). Under this method of accounting, FCAC was treated as the “acquired” company and Legacy Sharecare was treated as the acquirer for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Legacy Sharecare issuing stock for the net assets of FCAC, accompanied by a recapitalization. The net assets of FCAC are stated at historical cost, with no goodwill or other intangible assets recorded. Legacy Sharecare was determined to be the accounting acquirer in the Business Combination based on the following predominant factors at the time of the Transactions: •Legacy Sharecare’s existing stockholders have the greatest voting interest in the Company; •The largest individual minority stockholder in the Company was a stockholder of Legacy Sharecare; •Legacy Sharecare’s directors represent the majority of the new board of directors of the Company; •Legacy Sharecare’s senior management is the senior management of the Company; and •Legacy Sharecare is the larger entity based on historical revenue and has the larger employee base. The consolidated assets, liabilities and results of operations prior to the Reverse Recapitalization are those of Legacy Sharecare. The shares and corresponding capital amounts and losses per share, prior to the Reverse Recapitalization, have been retroactively restated based on shares reflecting the exchange ratio of 71.26 (the “Exchange Ratio”) established in the Business Combination. The consolidated financial statements include the accounts of Sharecare, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Segment Information The Company operates as a single operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources for the entire company. Unaudited Interim Financial Information The accompanying interim Consolidated Balance Sheet as of June 30, 2022, the Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2022 and 2021, Consolidated Statements of Redeemable Noncontrolling Interest, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit) for each of the three periods within the six months ended June 30, 2022 and 2021, and Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 are unaudited. These unaudited interim consolidated financial statements are presented in accordance with the rules and regulations of the SEC and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of June 30, 2022, the Company’s consolidated results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or any other future interim or annual periods. The information contained within the unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s annual financial statements for the year ended December 31, 2021. Use of Estimates The preparation of these unaudited interim consolidated financial statements in conformity with GAAP requires the use of management estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements are revenue recognition, the valuation of assets and liabilities acquired in business combinations, the valuation of common stock prior to the Business Combination, stock-based compensation, and income taxes. The Company bases its estimates on historical experience, known trends, and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions. Business Combinations The Company accounts for business acquisitions in accordance with ASC Topic 805, Business Combinations. The Company measures the cost of an acquisition as the aggregate of the acquisition date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree, the liabilities assumed by the acquirer from the acquiree, and the equity instruments issued by the acquirer. Transaction costs directly attributable to the acquisition are expensed as incurred. The Company records goodwill for the excess of (i) the total costs of acquisition and fair value of any noncontrolling interests over (ii) the fair value of the identifiable net assets of the acquired business. Contract Liabilities In connection with certain acquisitions, the Company has recognized current and noncurrent contract liabilities, representing off-market values associated with certain wellness program royalty agreements (amortization will continue through 2023). Additionally, the balance as of June 30, 2021 included certain office lease agreements prior to the adoption of ASC 842. Amortization of these contract liabilities for the three months ended June 30, 2022 and 2021, was $1.1 million and $1.4 million, respectively, of which $0.4 million and $0.4 million was included within cost of revenues and $0.7 million and $1.0 million was included in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss, respectively. Amortization of these contract liabilities for the six months ended June 30, 2022 and 2021 was $2.2 million and $2.8 million, respectively, of which $0.9 million and $0.9 million was included within cost of revenues and $1.3 million and $1.9 million was included in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss, respectively. Deferred Revenue The Company records contract liabilities pursuant to ASC 606 which consist of deferred revenue and contract billings in excess of earned revenue. Deferred revenues arise from contracts that permit upfront billing and the collection of fees covering the entire contractual service period, which is generally to twelve months and in advance of the satisfaction of the performance obligations identified within the related contract. As of June 30, 2022 and December 31, 2021, such fees were $11.2 million and $11.7 million, respectively. The Company recognized $1.7 million of revenue during the three months ended June 30, 2022 that was included in deferred revenue at December 31, 2021. The Company recognized $5.2 million of revenue during the six months ended June 30, 2022 that was included in deferred revenue at December 31, 2021. Revenue Recognition Performance-Based Revenue Certain contracts place a portion of fees at risk based on achieving certain performance metrics, such as customer cost savings, and/or clinical outcomes improvements (performance-based). The Company uses the most likely amount method to estimate variable consideration for these performance guarantees. The Company includes in the transaction price some or all of an amount of variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company utilizes customer data in order to measure performance. Performance-based fees subject to refund that the Company has not recognized as revenues are generally due to either: (1) data from the customer is insufficient or incomplete to measure performance; or (2) interim performance measures indicate that it is not probable that the Company will meet the relevant performance target(s). As of June 30, 2022 and December 31, 2021, such fees included within deferred revenue were $3.7 million and $3.9 million, respectively. In the event performance measures are not met by the end of the measurement period, typically one year, some or all of the performance-based fees are required to be refunded. During the settlement process under a contract, which generally occurs to eight months after the end of a contract year, performance-based fees are reconciled and settled. Approximately $2.5 million and $3.7 million of revenues recognized during the three months ended June 30, 2022 and 2021, respectively, were performance-based. During the three months ended June 30, 2022, $0.9 million was recognized in revenue that related to services provided prior to December 31, 2021. Approximately $4.4 million and $5.3 million of revenues recognized during the six months ended June 30, 2022 and 2021, respectively, were performance-based. During the six months ended June 30, 2022, $1.2 million was recognized in revenue that related to services provided prior to December 31, 2021. As of June 30, 2022 and 2021, the cumulative amount of performance-based revenues that had met the criteria for recognition and had been recognized but had not yet been settled with customers, totaled $5.1 million and $3.3 million, respectively. Remaining Performance Obligations Remaining performance obligations represent contracted revenues that are non-cancellable and have not yet been recognized due to unsatisfied or partially satisfied performance obligations. This includes deferred revenues and amounts that will be invoiced and recognized as revenues in future periods. As of June 30, 2022, future estimated revenue related to performance obligations with terms of more than one year that are unsatisfied or partially unsatisfied at the end of the reporting period was approximately $116.0 million. As of June 30, 2022, the Company expects to recognize revenue on approximately 63% of these unsatisfied performance obligations over the following 24 months and the remainder thereafter. Disaggregated Revenue The following table presents the Company’s revenues disaggregated by revenue source (in thousands):
Other Expenses For the three and six months ended June 30, 2022 and 2021, other income (expenses) consisted of the following (in thousands):
Accounting Standards Not Yet Adopted As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies (that is, those that have not had a registration statement declared effective under the Securities Act of 1933, as amended (the “Securities Act”), or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). The Company has elected to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. The adoption dates discussed below reflect this election. Credit Losses. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which is intended to improve the timing, and enhance the accounting and disclosure, of credit losses on financial assets. This update modified the existing accounting guidance related to the impairment evaluation for available-for-sale debt securities, reinsurance recoverables, and accounts receivables and could result in the creation of an allowance for credit losses as a contra asset account. The ASU requires a cumulative-effect change to retained earnings in the period of adoption, to the extent applicable. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within the fiscal year. The Company is currently evaluating this new standard and the impact it will have on its consolidated financial statements. Recently Adopted Accounting Standards Leases. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Lessees are required to recognize most leases on their balance sheet as a right-of-use (“ROU”) asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. Classification is based on criteria that are largely similar to those applied in prior lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model and the revenue recognition guidance in ASC 606. In July 2018, the FASB approved an additional optional transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As of January 1, 2022, the Company adopted the standard using this optional transition method. The accounting for capital leases remained substantially unchanged. The Company has applied the available package of practical expedients, as well as the election not to apply recognition and measurement requirements to short-term leases. See Note 6 for further details.
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Business Combination |
6 Months Ended |
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Jun. 30, 2022 | |
Reverse Recapitalization [Abstract] | |
Business Combination | Business Combination As discussed in Note 1, on June 29, 2021, FCAC held a special meeting of stockholders (the “Special Meeting”) at which the FCAC stockholders considered and adopted, among other matters, the Merger Agreement. On July 1, 2021, the parties to the Merger Agreement consummated the Transactions, with Legacy Sharecare surviving the merger as a wholly owned subsidiary of the Company. Shares of Legacy Sharecare common stock issued and outstanding were canceled and converted into the right to receive 71.26 shares of common stock. Unless otherwise stated, the Exchange Ratio has been applied to the number of shares and share prices of Legacy Sharecare throughout these consolidated financial statements. Prior to the Special Meeting, holders of 19,864,030 shares of FCAC’s Class A common stock sold in FCAC’s initial public offering exercised their right to redeem those shares for cash at a price of approximately $10.00 per share, for an aggregate redemption price of approximately $198.6 million. Immediately after giving effect to the Business Combination (including as a result of the redemptions described above), there were 333,875,179 issued and outstanding shares of the Company’s common stock (excluding the Earnout Shares, as defined herein). In addition, at the closing of the Business Combination, the Company issued 5,000,000 shares of Series A Convertible Preferred Stock (the “Series A Preferred Stock”) upon exchange of the shares of Legacy Sharecare Series D redeemable convertible preferred stock held by one investor in accordance with the terms of the Merger Agreement. Pursuant to the Merger Agreement, 1,713,000 shares of common stock are held in escrow and shall be released to the sponsor of FCAC (the “Sponsor Earnout Shares”). In addition, 1,500,000 shares of common stock are held in escrow and shall be released to Legacy Sharecare stockholders and option holders (the “Sharecare Earnout Shares” and, together with the Sponsor Earnout Shares, the “Earnout Shares”). The Earnout Shares are subject to release upon achieving certain triggering events as defined in the Merger Agreement. The earnout conditions have not been satisfied as of June 30, 2022. The Earnout Shares allocated to Legacy Sharecare stockholders are accounted for as liability instruments and classified as level 3 instruments that are marked-to-market each reporting period (see Note 3). The Earnout Shares allocated to the Legacy Sharecare option holders are classified as equity instruments and accounted for under ASC 718. The Business Combination was accounted for as a Reverse Recapitalization, with no goodwill or other intangible assets recorded, in accordance with GAAP. Under this method of accounting, FCAC was treated as the “acquired” company for financial reporting purposes. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Legacy Sharecare issuing stock for the net assets of FCAC, accompanied by a recapitalization. The cash of $146.4 million, which included cash previously held in the FCAC trust (net of redemptions), and working capital accounts of FCAC were recorded at historical cost, which approximates fair value. The Company also assumed the private placement warrants and public warrants (each as defined herein) from FCAC, which were recorded based on the acquisition date fair value (see Note 3). Cash paid for issuance costs and advisory fees were approximately $54.0 million. Additionally, in connection with the Business Combination, the Company made one-time bonus payments of $11.6 million to certain executives which has been recorded in General and Administrative expense, and resulted in a reduction in operating cash flows. Upon the closing of the Business Combination, the Company’s certificate of incorporation was amended and restated to, among other things, increase the total number of authorized shares of all classes of capital stock to 615,000,000 shares, of which 600,000,000 shares are designated as common stock, par value of $0.0001 per share, and 15,000,000 shares are designated as preferred stock, par value of $0.0001 per share, including 5,000,000 shares of Series A Preferred Stock. In connection with the Business Combination, FCAC entered into subscription agreements, each dated as of February 12, 2021, with certain investors (the “Investors”), pursuant to which, among other things, FCAC issued and sold, in private placements, an aggregate of 42,560,000 shares of FCAC Class A common stock for $10.00 per share (the “Private Placement”). The Private Placement closed immediately prior to the Business Combination. The shares of FCAC Class A common stock issued to the Investors became shares of the Company’s common stock upon consummation of the Business Combination.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company’s financial instruments consist of cash equivalents, accounts receivable, accounts payable, accrued liabilities, warrant liabilities, and contingent consideration. Cash equivalents are comprised of money market funds stated at amortized cost, which approximates fair value at the balance sheet dates, due to the short period of time to maturity. Accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected settlement date. The warrant liabilities and contingent consideration liabilities relate to previous acquisitions and the Business Combination. The following tables present the fair value hierarchy for assets and liabilities measured at fair value as of June 30, 2022 (in thousands):
The warrants included in the units issued in FCAC’s initial public offering (the “public warrants”) and the warrants issued by FCAC simultaneously with its initial public offering in a private placement (the “private placement warrants”), were both classified within Level 1 as they are publicly traded and have observable market prices in an active market. The public warrants and private placement warrants are both exercisable for one share of common stock at an exercise price of $11.50. Contingent consideration was classified within Level 3 as it was valued using certain unobservable inputs. The fair value of the contingent consideration was estimated based on the Company’s stock price and number of shares expected to be issued related to acquisitions in prior years. The fair value of the Earnout Shares allocated to Legacy Sharecare stockholders and FCAC Sponsors are included in contingent consideration and are estimated using a Monte Carlo simulation with inputs for the Company’s stock price, expected volatility, risk-free rate, first and second earnout hurdles and expected term. The following is a schedule of changes to the contingent consideration — other current liabilities classified as Level 3 for the periods presented (in thousands):
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Balance Sheet Components |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Components | Balance Sheet Components Accrued Expenses and Other Current Liabilities As of June 30, 2022 and December 31, 2021, accrued expenses and other current liabilities consisted of the following (in thousands):
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Acquisitions |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions CareLinx On August 11, 2021, the Company acquired all outstanding equity interests of CareLinx Inc. (“CareLinx”). The total preliminary purchase price in connection with the acquisition is $64.9 million, consisting of $55.2 million of cash and $9.7 million equity-based consideration, comprised of 1,169,980 shares of common stock and 295,758 stock options. The preliminary fair value of the assets acquired and liabilities assumed in connection with the acquisition are as follows (in thousands):
The fair value assigned to the developed technology was determined using the relief from royalty method. The fair value of customer relationships was determined using the multi-period excess earnings method, which estimates the direct cash flow expected to be generated from the existing customers acquired. The Company incurred transaction-related expenses of $1.1 million which were recorded under general and administrative expenses in the Consolidated Statement of Operations and Comprehensive Loss. Goodwill represents the excess of the purchase consideration over the estimated acquisition date fair value of the net tangible and identifiable intangible assets acquired and liabilities assumed. Goodwill also represents the future benefits as a result of the acquisition that will enhance the Company’s services available to both new and existing customers and increase the Company’s competitive position. The goodwill resulting from this acquisition is not tax deductible. The purchase accounting for the CareLinx business combination remains preliminary, with respect to working capital assets and liabilities assumed, and any related goodwill adjustments as management continues to gather and evaluate information about circumstances that existed as of the acquisition date. Additionally, the assessment of the related income tax attributes of the transaction is still in process. The Company will update its disclosures in subsequent financial statements as additional progress is made to account for the transaction.
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Leases |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases On January 1, 2022, the Company adopted ASU 2016-02, Leases (Topic 842) using the optional transition method resulting in a cumulative-effect adjustment to the Consolidated Balance Sheet at the adoption date. Comparative financial statements of prior periods have not been adjusted to apply the new accounting standard retrospectively. The new method of accounting was applied only to leases that have ongoing minimum lease commitments after January 1, 2022, excluding short-term leases. As of the adoption date, the Company recognized total ROU assets of $8.1 million, with corresponding lease liabilities of $9.2 million on the Consolidated Balance Sheet. The adoption did not impact the beginning accumulated deficit, or prior year Consolidated Statements of Operations and Comprehensive Loss and Statements of Cash Flows. Finance leases are immaterial. The effect of the January 1, 2022 adoption on key financial statement line items as of June 30, 2022 is as follows (in thousands):
Under Topic 842, the Company determines if an arrangement is a lease at contract inception. Operating lease ROU assets and liabilities are included in , , and in the Consolidated Balance Sheets. Finance lease ROU assets and liabilities are included in property and equipment, accounts payable, and other long-term liabilities in the Consolidated Balance Sheets. Operating ROU assets and lease liabilities are recognized based on the present value of the future fixed lease payments over the lease term at the commencement date. As most of the Company’s leases do not provide an implicit rate, the Company used its quarterly incremental borrowing rate based on the information available that corresponds to each lease commencement date and lease term when determining the present value of future payments for operating leases. The Company’s operating leases principally involve office space. The Company leases office space in Sao Paulo, Brazil and Berlin, Germany; and the following states: Arizona, California, Florida, Georgia, Maryland, Massachusetts, New York, North Carolina, Oklahoma, Pennsylvania, Tennessee, and Washington under noncancellable operating leases expiring at various dates through November 2027. These leases may contain variable non-lease components consisting of common area maintenance, operating expenses, insurance, and similar costs of the office space that we occupy. The Company has adopted the practical expedient to not separate these non-lease components from the lease components and instead account for them as a single lease component for all of the leases. The operating lease ROU assets include future fixed lease payments made as well as any initial direct costs incurred and exclude lease incentives. Variable lease payments are not included within the operating lease ROU assets or lease liabilities and are expensed in the period in which they are incurred. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments on operating leases is recognized on a straight-line basis over the lease term. The Company has elected to not record operating lease ROU assets and liabilities for short-term leases that have a term of twelve months or less. Lease expense includes short-term lease cost which is not material to the Consolidated Financial Statements. The components of operating lease costs, lease term and discount rate for the three and six months ended June 30, 2022 are as follows (in thousands, except lease term and discount):
Operating lease expense was $1.6 million and $3.2 million for the three and six months ended June 30, 2021, respectively, under ASC 840. The Company is also the lessor in three non-cancelable sub-lease agreements with two companies for the Company’s Tennessee office space and one company for the CareLinx office space in California. Sublease income for the three and six months ended June 30, 2022 was $0.5 million and $1.0 million, respectively. Supplemental cash flow information related to leases for the six months ended June 30, 2022 are as follows (in thousands):
Estimated future minimum payment obligations for non-cancelable operating leases are as follows as of June 30, 2022 (in thousands):
The total future minimum rental payments related to the aforementioned subleases to be received as of June 30, 2022 is $1.8 million.
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Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Intangible assets and the related accumulated amortization for each class of intangible asset as of June 30, 2022 were as follows (in thousands):
The following tables set forth the changes in the carrying amount of the Company’s goodwill for the period presented (in thousands):
Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subjected to annual tests of impairment. The Company tests goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter and between annual tests if an event occurs or circumstances change that would indicate that it is more likely than not that the carrying amount may be impaired. The Company initially evaluates qualitative factors to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, a quantitative assessment of the fair value of a reporting unit is performed to test goodwill for impairment using a discounted cash flow analysis. There have been no impairments of goodwill since the Company’s inception. During the second quarter of 2022, the Company determined a triggering event that required an interim goodwill impairment test as a result of the sustained decline in the Company’s stock price and associated market capitalization. The fair value of the reporting units for goodwill impairment testing was determined using both an income approach and market approach. The income approach was based on discounted projected future (debt-free) cash flows for each reporting unit. The discount rates applied to these cash flows were based on the weighted average cost of capital for each reporting unit, which takes market participant assumptions into consideration. For the market approach, we used both the guideline company and similar transaction methods. The guideline company method analyzes market multiples of revenue and EBITDA for a group of comparable public companies. Under the similar transactions method, valuation multiples are calculated utilizing actual transaction prices and revenue and EBITDA data from target companies deemed similar to the reporting unit. As a result of the interim test, the fair values of each of our reporting units exceeded their respective book values in excess of 10%, and the Company determined there was no impairment. An increase of 100 basis points in the weighted average cost of capital or a decrease of 100 basis points in annual forecasted revenues would result in a 3% and 4% decline in the fair value, respectively of our reporting units which would not result in impairment. Amortization expense for intangible assets during the three months ended June 30, 2022 and 2021 totaled $10.2 million and $6.6 million, respectively. Amortization expense for intangible assets during the six months ended June 30, 2022 and 2021 totaled $19.4 million and $12.6 million, respectively. Amortization expense is included in depreciation and amortization in the Consolidated Statements of Operations and Comprehensive Loss. The following is a schedule of estimated future amortization expense for intangible assets as of June 30, 2022 (in thousands):
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Debt |
6 Months Ended |
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Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DebtAs of June 30, 2022 and December 31, 2021, debt was comprised of outstanding borrowings of $0.8 million and $0.4 million, respectively, under the Company’s senior secured revolving credit facility (the “Revolving Facility”) due February 2023. The Revolving Facility is governed by a Credit Agreement, dated as of March 9, 2017 (as amended, the “Senior Secured Credit Agreement”), among the Company, certain subsidiaries of the Company, as borrowers (the “Borrowers”), the lenders named therein and Wells Fargo Bank, National Association, as administrative agent. Borrowings under the Revolving Facility currently bear interest at either a U.S. base rate plus 2.0%, subject to a floor, or a rate based on LIBOR plus 2.75% (inclusive of paid in kind interest; the related deferred financing fees of $0.2 million and $0.3 million as of June 30, 2022 and December 31, 2021, respectively, which are presented as other current assets on the Consolidated Balance Sheets). As of June 30, 2022, $50.3 million was available for borrowing under the Senior Secured Credit Agreement. See Note 7 Debt to the consolidated financial statements set forth in the Company’s Annual Report on Form 10-K filed with the SEC on March 31, 2022 for additional information.
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Income Taxes |
6 Months Ended |
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Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesAs a result of the Company’s history of net operating losses, the Company has provided for a full valuation allowance against its deferred tax assets, with the exception of its German and French operations. For the three months ended June 30, 2022, the Company recognized income tax expense of $0.3 million, primarily due to tax on foreign income and the valuation of the Brazilian deferred tax asset. For the three months ended June 30, 2021, the Company recognized an income tax benefit of $0.1 million, primarily due to tax on foreign income. For the six months ended June 30, 2022, the Company recognized income tax expense of $0.4 million, primarily due to tax on foreign income and the valuation of the Brazilian deferred tax asset. For the six months ended June 30, 2021, the Company recognized income tax benefit of less than $0.1 million, primarily due to tax on foreign income. |
Common Stock and Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Stockholders' Equity | Common Stock and Stockholders’ Equity Warrants In connection with debt and equity financings and certain partnership arrangements, the Company may issue warrants. Liability warrants generally vest immediately and are exercisable upon issuance and have an expiration of seven years from the date of issuance. Equity warrants generally vest after three years from the date of issuance and have an expiration of seven years from issuance. As of June 30, 2022, the following warrants to purchase common stock were issued and outstanding:
The Company has also entered into, and may in the future enter into, contractual arrangements with certain customers and other parties and earnout arrangements in connection with acquisitions that, in each case, provide for the issuance of warrants and/or common stock upon achievement of specified milestones (which, at the consummation of the Business Combination, became obligations of the Company). As of June 30, 2022, these agreements provide for the issuance of up to 6,669,631 shares of common stock (including Earnout Shares in connection with the Business Combination) and 4,609,767 warrants to purchase shares of common stock. With respect to these arrangements, there were 112,310 warrants earned but not issued as of June 30, 2022. Share-based Payments Stock option and restricted stock unit activity, prices, and values during the six months ended June 30, 2022 is as follows:
Share-based compensation expense for employee and nonemployee options and restricted stock units included in the Consolidated Statements of Operations and Comprehensive Loss is as follows for the three and six months ended June 30, 2022 and 2021 (in thousands):
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Commitments and Contingencies |
6 Months Ended |
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Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Matters From time to time, the Company is subject to litigation in the normal course of business. The Company is of the opinion that, based on the information presently available, the resolution of any such legal matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. The Company has accrued for losses that are both probable and estimable. As of June 30, 2022, the Company has settled all estimated contingent liabilities previously accrued and disclosed in our December 31, 2021 financial statements. We are also party to investigations and legal disputes and losses related to certain matters that are reasonably possible, but at this time, we cannot estimate a loss or range of losses.
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Related-Party Transactions |
6 Months Ended |
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Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Sul América Serviços de Saúde S.A. (Sul América), is a customer of and owns a 49% interest in our wholly owned subsidiary, Sharecare Brasil Servicios de Consultoria, Ltda. As of June 30, 2022 and December 31, 2021, $1.8 million and $2.0 million, respectively, in receivables were outstanding with Sul América. Revenues recognized for the three month period ended June 30, 2022 and 2021 totaled $2.4 million and $3.0 million, respectively. Revenues recognized for the six month period ended June 30, 2022 and 2021 totaled $5.1 million and $6.0 million, respectively. The Company has a related party that performs sales and sales support services including the collection of outstanding accounts receivable for transactions processed on the Company’s behalf. For all periods presented, the Company recognized revenues and made payments in amounts less than $0.3 million. The Series A Preferred Stock is held by a customer that also has an employee serving on our Board of Directors. As of June 30, 2022 and December 31, 2021, $5.6 million and $5.0 million, respectively, in receivables were outstanding from this related party. Additionally, as of June 30, 2022 and December 31, 2021, long-term assets included $4.7 million and $5.5 million, respectively, and current assets included $1.7 million and $1.7 million, respectively, related to a non-cash payment received for up front research and development costs related to the issuance of the Series A Preferred Stock and a related commitment of $2.5 million per year through 2025 related to research and development activities. For the three months ended June 30, 2022 and 2021, the Company paid $0.5 million and $0.4 million related to administration fees and stop-loss coverage for employee health insurance, respectively. For the six months ended June 30, 2022 and 2021, the Company paid $1.0 million and $0.8 million related to administration fees and stop-loss coverage for employee health insurance, respectively. Revenues recognized for the three months ended June 30, 2022 and 2021 totaled $5.6 million and $3.5 million, respectively. Revenues recognized for the six months ended June 30, 2022 and 2021 totaled $10.6 million and $6.9 million, respectively.
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Net Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Loss Per Share | Net Loss Per Share Net loss per share calculations for all periods prior to the Business Combination have been retrospectively adjusted for the equivalent number of shares outstanding immediately after the Business Combination to effect the Reverse Recapitalization. Subsequent to the Business Combination, net loss per share was calculated based on the weighted average number of common stock shares then outstanding. Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share amounts):
The Company’s potential dilutive securities, which include stock options and restricted stock units, warrants to purchase common stock, redeemable convertible preferred stock, and contingently issued shares, have been excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2022 and 2021, as they are anti-dilutive and effect would be to reduce the net loss per share. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares equivalents presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsThe Company considers events or transactions that occur after the balance sheet date, but before the consolidated financial statements are issued, to provide additional evidence relative to certain estimates or identify matters that require additional disclosures. The Company evaluated subsequent events through, August 10, 2022, the date on which the consolidated financial statements were available to be issued, noting no such material events. |
Nature of Business and Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation Policy and Unaudited Interim Financial Information | Basis of Presentation and Consolidation Policy The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) as determined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) and pursuant to the regulations of the U.S. Securities and Exchange Commission (“SEC”). Pursuant to the Merger Agreement, the merger between Merger Sub and Legacy Sharecare was accounted for as a reverse recapitalization in accordance with GAAP (the “Reverse Recapitalization”). Under this method of accounting, FCAC was treated as the “acquired” company and Legacy Sharecare was treated as the acquirer for financial reporting purposes. Accordingly, for accounting purposes, the Reverse Recapitalization was treated as the equivalent of Legacy Sharecare issuing stock for the net assets of FCAC, accompanied by a recapitalization. The net assets of FCAC are stated at historical cost, with no goodwill or other intangible assets recorded. Legacy Sharecare was determined to be the accounting acquirer in the Business Combination based on the following predominant factors at the time of the Transactions: •Legacy Sharecare’s existing stockholders have the greatest voting interest in the Company; •The largest individual minority stockholder in the Company was a stockholder of Legacy Sharecare; •Legacy Sharecare’s directors represent the majority of the new board of directors of the Company; •Legacy Sharecare’s senior management is the senior management of the Company; and •Legacy Sharecare is the larger entity based on historical revenue and has the larger employee base. The consolidated assets, liabilities and results of operations prior to the Reverse Recapitalization are those of Legacy Sharecare. The shares and corresponding capital amounts and losses per share, prior to the Reverse Recapitalization, have been retroactively restated based on shares reflecting the exchange ratio of 71.26 (the “Exchange Ratio”) established in the Business Combination. Unaudited Interim Financial Information The accompanying interim Consolidated Balance Sheet as of June 30, 2022, the Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2022 and 2021, Consolidated Statements of Redeemable Noncontrolling Interest, Redeemable Convertible Preferred Stock, and Stockholders’ Equity (Deficit) for each of the three periods within the six months ended June 30, 2022 and 2021, and Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 are unaudited. These unaudited interim consolidated financial statements are presented in accordance with the rules and regulations of the SEC and do not include all disclosures normally required in annual consolidated financial statements prepared in accordance with GAAP. In management’s opinion, the unaudited interim consolidated financial statements have been prepared on the same basis as the annual financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the Company’s financial position as of June 30, 2022, the Company’s consolidated results of operations for the three and six months ended June 30, 2022 and 2021, and cash flows for the six months ended June 30, 2022 and 2021. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the full fiscal year or any other future interim or annual periods. The information contained within the unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s annual financial statements for the year ended December 31, 2021.
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Consolidation Policy | The consolidated financial statements include the accounts of Sharecare, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Segment Information | Segment Information The Company operates as a single operating segment. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources for the entire company.
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Use of Estimates | Use of Estimates The preparation of these unaudited interim consolidated financial statements in conformity with GAAP requires the use of management estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements are revenue recognition, the valuation of assets and liabilities acquired in business combinations, the valuation of common stock prior to the Business Combination, stock-based compensation, and income taxes. The Company bases its estimates on historical experience, known trends, and other market-specific or other relevant factors that it believes to be reasonable under the circumstances. On an ongoing basis, management evaluates its estimates, as there are changes in circumstances, facts and experience. Changes in estimates are recorded in the period in which they become known. Actual results may differ from those estimates or assumptions.
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Business Combinations | Business Combinations The Company accounts for business acquisitions in accordance with ASC Topic 805, Business Combinations. The Company measures the cost of an acquisition as the aggregate of the acquisition date fair values of the assets transferred by the acquirer, the liabilities incurred by the acquirer to former owners of the acquiree, the liabilities assumed by the acquirer from the acquiree, and the equity instruments issued by the acquirer. Transaction costs directly attributable to the acquisition are expensed as incurred. The Company records goodwill for the excess of (i) the total costs of acquisition and fair value of any noncontrolling interests over (ii) the fair value of the identifiable net assets of the acquired business.
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Contract Liabilities | Contract LiabilitiesIn connection with certain acquisitions, the Company has recognized current and noncurrent contract liabilities, representing off-market values associated with certain wellness program royalty agreements (amortization will continue through 2023). Additionally, the balance as of June 30, 2021 included certain office lease agreements prior to the adoption of ASC 842. |
Deferred Revenue, Revenue Recognition | Deferred Revenue The Company records contract liabilities pursuant to ASC 606 which consist of deferred revenue and contract billings in excess of earned revenue. Deferred revenues arise from contracts that permit upfront billing and the collection of fees covering the entire contractual service period, which is generally to twelve months and in advance of the satisfaction of the performance obligations identified within the related contract. As of June 30, 2022 and December 31, 2021, such fees were $11.2 million and $11.7 million, respectively. The Company recognized $1.7 million of revenue during the three months ended June 30, 2022 that was included in deferred revenue at December 31, 2021. The Company recognized $5.2 million of revenue during the six months ended June 30, 2022 that was included in deferred revenue at December 31, 2021. Revenue Recognition Performance-Based Revenue Certain contracts place a portion of fees at risk based on achieving certain performance metrics, such as customer cost savings, and/or clinical outcomes improvements (performance-based). The Company uses the most likely amount method to estimate variable consideration for these performance guarantees. The Company includes in the transaction price some or all of an amount of variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The Company utilizes customer data in order to measure performance. Performance-based fees subject to refund that the Company has not recognized as revenues are generally due to either: (1) data from the customer is insufficient or incomplete to measure performance; or (2) interim performance measures indicate that it is not probable that the Company will meet the relevant performance target(s). As of June 30, 2022 and December 31, 2021, such fees included within deferred revenue were $3.7 million and $3.9 million, respectively. In the event performance measures are not met by the end of the measurement period, typically one year, some or all of the performance-based fees are required to be refunded. During the settlement process under a contract, which generally occurs to eight months after the end of a contract year, performance-based fees are reconciled and settled. Approximately $2.5 million and $3.7 million of revenues recognized during the three months ended June 30, 2022 and 2021, respectively, were performance-based. During the three months ended June 30, 2022, $0.9 million was recognized in revenue that related to services provided prior to December 31, 2021. Approximately $4.4 million and $5.3 million of revenues recognized during the six months ended June 30, 2022 and 2021, respectively, were performance-based. During the six months ended June 30, 2022, $1.2 million was recognized in revenue that related to services provided prior to December 31, 2021. As of June 30, 2022 and 2021, the cumulative amount of performance-based revenues that had met the criteria for recognition and had been recognized but had not yet been settled with customers, totaled $5.1 million and $3.3 million, respectively. Remaining Performance ObligationsRemaining performance obligations represent contracted revenues that are non-cancellable and have not yet been recognized due to unsatisfied or partially satisfied performance obligations. This includes deferred revenues and amounts that will be invoiced and recognized as revenues in future periods.
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Accounting Standards Not Yet Adopted and Recently Adopted Accounting Standards | Accounting Standards Not Yet Adopted As an emerging growth company (“EGC”), the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are applicable to private companies (that is, those that have not had a registration statement declared effective under the Securities Act of 1933, as amended (the “Securities Act”), or do not have a class of securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). The Company has elected to use this extended transition period under the JOBS Act until such time as the Company is no longer considered to be an EGC. The adoption dates discussed below reflect this election. Credit Losses. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which is intended to improve the timing, and enhance the accounting and disclosure, of credit losses on financial assets. This update modified the existing accounting guidance related to the impairment evaluation for available-for-sale debt securities, reinsurance recoverables, and accounts receivables and could result in the creation of an allowance for credit losses as a contra asset account. The ASU requires a cumulative-effect change to retained earnings in the period of adoption, to the extent applicable. The amendments in ASU 2016-13 are effective for fiscal years beginning after December 15, 2022, including interim periods within the fiscal year. The Company is currently evaluating this new standard and the impact it will have on its consolidated financial statements. Recently Adopted Accounting Standards Leases. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). Lessees are required to recognize most leases on their balance sheet as a right-of-use (“ROU”) asset and a lease liability. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating leases or finance leases. Classification is based on criteria that are largely similar to those applied in prior lease accounting, but without explicit bright lines. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model and the revenue recognition guidance in ASC 606. In July 2018, the FASB approved an additional optional transition method by allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. As of January 1, 2022, the Company adopted the standard using this optional transition method. The accounting for capital leases remained substantially unchanged. The Company has applied the available package of practical expedients, as well as the election not to apply recognition and measurement requirements to short-term leases. See Note 6 for further details.
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Nature of Business and Significant Accounting Policies (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of revenues disaggregated by revenue source | The following table presents the Company’s revenues disaggregated by revenue source (in thousands):
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Schedule of other expenses (income) | For the three and six months ended June 30, 2022 and 2021, other income (expenses) consisted of the following (in thousands):
|
Fair Value Measurements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value hierarchy for assets and liabilities measured at fair value | The following tables present the fair value hierarchy for assets and liabilities measured at fair value as of June 30, 2022 (in thousands):
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Schedule of changes to the warrant liability and contingent consideration | The following is a schedule of changes to the contingent consideration — other current liabilities classified as Level 3 for the periods presented (in thousands):
|
Balance Sheet Components (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expense and other current liabilities | As of June 30, 2022 and December 31, 2021, accrued expenses and other current liabilities consisted of the following (in thousands):
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Acquisitions (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of preliminary fair value of assets acquired and liabilities assumed | The preliminary fair value of the assets acquired and liabilities assumed in connection with the acquisition are as follows (in thousands):
|
Leases (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of effect of the adoption of ASU 2016-02 on key financial statement line items | The effect of the January 1, 2022 adoption on key financial statement line items as of June 30, 2022 is as follows (in thousands):
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Schedule of operating lease costs, lease term and discount rate | The components of operating lease costs, lease term and discount rate for the three and six months ended June 30, 2022 are as follows (in thousands, except lease term and discount):
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Schedule of supplemental cash flow information related to leases | Supplemental cash flow information related to leases for the six months ended June 30, 2022 are as follows (in thousands):
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Schedule of estimated future minimum payment obligations for non-cancelable operating leases | Estimated future minimum payment obligations for non-cancelable operating leases are as follows as of June 30, 2022 (in thousands):
|
Goodwill and Other Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of intangible assets, definite-lived | Intangible assets and the related accumulated amortization for each class of intangible asset as of June 30, 2022 were as follows (in thousands):
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Schedule of intangible assets, not subject to amortization | Intangible assets and the related accumulated amortization for each class of intangible asset as of June 30, 2022 were as follows (in thousands):
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Schedule of carrying amount of goodwill | The following tables set forth the changes in the carrying amount of the Company’s goodwill for the period presented (in thousands):
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Schedule of estimated future amortization expense for intangible assets | The following is a schedule of estimated future amortization expense for intangible assets as of June 30, 2022 (in thousands):
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Common Stock and Stockholders' Equity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of warrants issued and outstanding | As of June 30, 2022, the following warrants to purchase common stock were issued and outstanding:
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Schedule of stock option activity | Stock option and restricted stock unit activity, prices, and values during the six months ended June 30, 2022 is as follows:
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Schedule of restricted stock unit activity | Stock option and restricted stock unit activity, prices, and values during the six months ended June 30, 2022 is as follows:
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Schedule of share-based compensation expense for employee and nonemployee options | Share-based compensation expense for employee and nonemployee options and restricted stock units included in the Consolidated Statements of Operations and Comprehensive Loss is as follows for the three and six months ended June 30, 2022 and 2021 (in thousands):
|
Net Loss Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of basic and diluted net loss per share attributable to common stockholders | Basic and diluted net loss per share attributable to common stockholders was calculated as follows (in thousands, except share and per share amounts):
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Schedule of potential common shares equivalents excluded from computation of diluted net loss per share do to anti-dilutive effect | The Company excluded the following potential common shares equivalents presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
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Nature of Business and Significant Accounting Policies - Basis of Presentation (Details) |
Jul. 01, 2021 |
---|---|
Accounting Policies [Abstract] | |
Exchange ratio | 71.26 |
Nature of Business and Significant Accounting Policies - Contract Liabilities and Deferred Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
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Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | |||||
Amortization of contract liabilities | $ 1,100 | $ 1,400 | $ 2,190 | $ 2,802 | |
Deferred revenue | 11,209 | 11,209 | $ 11,655 | ||
Revenue recognized that was previously in deferred revenue | 1,700 | $ 5,200 | |||
Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Contractual service period (in months) | 6 months | ||||
Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Contractual service period (in months) | 12 months | ||||
Cost of revenues | |||||
Disaggregation of Revenue [Line Items] | |||||
Amortization of contract liabilities | 400 | 400 | $ 900 | 900 | |
General and administrative | |||||
Disaggregation of Revenue [Line Items] | |||||
Amortization of contract liabilities | $ 700 | $ 1,000 | $ 1,300 | $ 1,900 |
Nature of Business and Significant Accounting Policies - Performance-Based Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
|
Disaggregation of Revenue [Line Items] | |||||
Performance-based fees not recognized as revenue | $ 3.7 | $ 3.7 | $ 3.9 | ||
Performance-based revenue recognized | 2.5 | $ 3.7 | 4.4 | $ 5.3 | |
Revenue recognized related to services provided in prior period | 0.9 | 1.2 | |||
Performance-based revenue recognized but not yet settled with customers | $ 5.1 | $ 3.3 | $ 5.1 | $ 3.3 | |
Enterprise | |||||
Disaggregation of Revenue [Line Items] | |||||
Measurement period | 1 year | ||||
Enterprise | Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Settlement process term | 6 months | ||||
Enterprise | Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Settlement process term | 8 months |
Nature of Business and Significant Accounting Policies - Remaining Performance Obligations (Details) $ in Millions |
Jun. 30, 2022
USD ($)
|
---|---|
Accounting Policies [Abstract] | |
Remaining performance obligations | $ 116.0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations percentage to be recognized | 63.00% |
Unsatisfied performance obligations expected recognition period | 24 months |
Nature of Business and Significant Accounting Policies - Disaggregated Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 103,823 | $ 98,459 | $ 204,533 | $ 188,661 |
Enterprise | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 59,889 | 60,008 | 119,660 | 114,143 |
Provider | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 26,402 | 22,146 | 51,118 | 42,155 |
Life Sciences | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ 17,532 | $ 16,305 | $ 33,755 | $ 32,363 |
Nature of Business and Significant Accounting Policies - Other Expenses (Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Accounting Policies [Abstract] | ||||
Re-measurement of contingent consideration | $ 4,475 | $ (8,522) | $ 11,252 | $ (15,499) |
Re-measurement of warrant liabilities | 1,899 | (1,386) | 7,490 | (6,157) |
Other | 453 | 1,057 | 930 | 926 |
Total other income (expenses) | $ 6,827 | $ (8,851) | $ 19,672 | $ (20,730) |
Fair Value Measurements - Narrative (Details) - Warrants |
Jun. 30, 2022
$ / shares
shares
|
---|---|
Class of Warrant or Right [Line Items] | |
Number of securities called by each warrant (in shares) | shares | 1 |
Exercise price per share (in USD per share) | $ / shares | $ 11.50 |
Fair Value Measurements - Changes to Warrant Liability and Contingent Consideration (Details) - Contingent consideration $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Changes in liability | |
Beginning balance | $ 13,897 |
Settlement of contingent consideration for HDS retained shares | (1,905) |
Re-measurement of contingent consideration | (11,252) |
Ending balance | $ 740 |
Balance Sheet Components (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Accrued Expenses and Other Current Liabilities | ||
Accrued expenses | $ 14,891 | $ 27,050 |
Accrued compensation | 15,285 | 16,428 |
Accrued media costs | 2,585 | 4,816 |
Accrued taxes | 1,227 | 1,396 |
Operating lease liabilities, current | 4,768 | 0 |
Accrued other | 2,298 | 1,963 |
Total accrued expenses and other current liabilities | $ 41,054 | $ 51,653 |
Acquisitions - Narrative (Details) - CareLinx $ in Millions |
Aug. 11, 2021
USD ($)
shares
|
---|---|
Business Acquisition [Line Items] | |
Consideration transferred | $ 64.9 |
Cash payment to acquire business | 55.2 |
Equity-based consideration | 9.7 |
Transaction related expenses | $ 1.1 |
Common stock | |
Business Acquisition [Line Items] | |
Equity interest issuable (in shares) | shares | 1,169,980 |
Stock options | |
Business Acquisition [Line Items] | |
Equity interest issuable (in shares) | shares | 295,758 |
Acquisitions - Preliminary Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
Aug. 11, 2021 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 191,294 | $ 192,442 | |
CareLinx | |||
Business Acquisition [Line Items] | |||
Cash | $ 445 | ||
Accounts receivable | 4,528 | ||
Other receivables | 59 | ||
Prepaid expenses | 234 | ||
Other current assets | 300 | ||
Other long-term assets | 1,789 | ||
Goodwill | 31,018 | ||
Accrued expenses | (1,371) | ||
Contract liabilities - current | (45) | ||
Noncurrent contract liabilities | (53) | ||
Other long-term liabilities | (2,693) | ||
Total | 64,911 | ||
CareLinx | Developed technology | |||
Business Acquisition [Line Items] | |||
Intangibles assets | 14,800 | ||
CareLinx | Customer relationships | |||
Business Acquisition [Line Items] | |||
Intangibles assets | 13,300 | ||
CareLinx | Trade name | |||
Business Acquisition [Line Items] | |||
Intangibles assets | $ 2,600 |
Leases - Lease Costs, Lease Term and Discount Rate (Details) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2022
USD ($)
|
|
Lease, Cost [Abstract] | ||
Operating lease costs | $ 1,613 | $ 3,217 |
Variable lease costs | 536 | 1,067 |
Short-term lease expense | 59 | 101 |
Total operating lease costs | $ 2,208 | $ 4,385 |
Weighted-average remaining lease term (years): | ||
Operating leases | 2 years 10 months 28 days | 2 years 10 months 28 days |
Weighted-average discount rate: | ||
Operating leases | 4.50% | 4.50% |
Leases - Supplemental Cash Flow Information (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Cash paid for amounts included in the measurement of lease liabilities: | |
Payments for operating leases included in cash from operating activities | $ 3,661 |
Assets obtained in exchange for lease obligations: | |
Operating leases | $ 3,304 |
Leases - Estimated Future Minimum Payment Obligations (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Estimated Future Minimum Payment Obligations | ||
Remainder of 2022 | $ 3,180 | |
2023 | 3,063 | |
2024 | 1,215 | |
2025 | 808 | |
2026 | 832 | |
2027 | 733 | |
Thereafter | 0 | |
Total undiscounted future cash flows | 9,831 | |
Less: Imputed interest | (673) | |
Present value of lease liabilities | 9,158 | |
Operating Lease Liabilities | ||
Lease liabilities, current | 4,768 | $ 0 |
Lease liabilities, noncurrent | 4,390 | |
Present value of lease liabilities | $ 9,158 |
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 192,442 |
Purchase accounting opening balance sheet adjustments | (492) |
Foreign currency translation adjustment | (656) |
Ending balance | $ 191,294 |
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Percentage of fair value in excess of book value | 10.00% | 10.00% | ||
Basis point increase in weighted average cost of capital | 0.0100 | 0.0100 | ||
Basis point decrease in annual forecasted revenues | 0.0100 | 0.0100 | ||
Percentage of decline in fair value, in event increase in weighted average capital | 3.00% | 3.00% | ||
Percentage of decline in fair value, in event of decrease in annual forecasted revenue | 4.00% | 4.00% | ||
Amortization expense for intangible assets | $ 10.2 | $ 6.6 | $ 19.4 | $ 12.6 |
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands |
Jun. 30, 2022
USD ($)
|
---|---|
Estimated future amortization expense: | |
Reminder of 2022 | $ 20,713 |
2023 | 37,687 |
2024 | 28,191 |
2025 | 13,849 |
2026 | 11,355 |
Thereafter | 37,294 |
Net | $ 149,089 |
Debt - Narrative (Details) - Revolving Facility - Secured debt - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Debt Instrument [Line Items] | ||
Debt outstanding | $ 0.8 | $ 0.4 |
Available for borrowing | 50.3 | |
Other long term assets | ||
Debt Instrument [Line Items] | ||
Debt issuance fees | $ 0.2 | $ 0.3 |
Prime | ||
Debt Instrument [Line Items] | ||
Basis spread on variable interest rate | 2.00% | |
LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable interest rate | 2.75% |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax (expense) benefit | $ (269) | $ 98 | $ (361) | $ 14 |
Common Stock and Stockholders' Equity - Narrative (Details) $ in Millions |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2022
USD ($)
shares
|
Jun. 30, 2022
USD ($)
shares
|
|
Class of Stock [Line Items] | ||
Compensation costs related to share-based payment awards reflected within additional paid-in capital related to capitalizable internally developed software activities | $ | $ 0.4 | $ 1.0 |
Liability warrants | ||
Class of Stock [Line Items] | ||
Warrants expiration period (in years) | 7 years | 7 years |
Equity warrants | ||
Class of Stock [Line Items] | ||
Warrants expiration period (in years) | 7 years | 7 years |
Warrants vesting period (in years) | 3 years | |
Contractual and earnout arrangements | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 6,669,631 | 6,669,631 |
Warrants reserved for future issuance (in shares) | 4,609,767 | 4,609,767 |
Warrants earned but not issued (in shares) | 112,310 | 112,310 |
Common Stock and Stockholders' Equity - Warrants (Details) |
Jun. 30, 2022
$ / shares
shares
|
---|---|
Equity | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding (in shares) | shares | 1,038,678,000 |
Equity | Minimum | |
Class of Warrant or Right [Line Items] | |
Exercise price per share (in USD per share) | $ 4.21 |
Equity | Maximum | |
Class of Warrant or Right [Line Items] | |
Exercise price per share (in USD per share) | $ 5.61 |
Liability | |
Class of Warrant or Right [Line Items] | |
Warrants outstanding (in shares) | shares | 17,433,334,000 |
Exercise price per share (in USD per share) | $ 11.50 |
Common Stock and Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units - $ / shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Number of Plan shares outstanding | ||
Outstanding, beginning (in shares) | 2,179,941 | |
Granted (in shares) | 12,567,189 | |
Exercised (in shares) | (420,315) | |
Cancelled/Forfeited (in shares) | (898,414) | |
Outstanding, ending (in shares) | 13,428,401 | |
Vested and exercisable (in shares) | 0 | 0 |
Weighted-Average Grant Date Fair Value per share | ||
Outstanding, beginning (in USD per share) | $ 7.39 | |
Granted (in USD per share) | 3.32 | |
Released (in USD per share) | 5.85 | |
Forfeited (in USD per share) | 4.75 | |
Outstanding, ending (in USD per share) | 3.80 | |
Vested and exercisable (in USD per share) | $ 0 | $ 0 |
Common Stock and Stockholders' Equity - Share-Based Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 18,177 | $ 2,360 | $ 51,287 | $ 14,386 |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 109 | 7 | 227 | 28 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 981 | 510 | 2,525 | 857 |
Product and technology | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | 736 | 1,094 | 1,763 | 10,000 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total share-based compensation expense | $ 16,351 | $ 749 | $ 46,772 | $ 3,501 |
Net Loss Per Share - Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 |
Mar. 31, 2022 |
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|||
Numerator | ||||||||
Net loss | $ (29,521) | $ (20,224) | $ (67,820) | $ (51,583) | ||||
Less: Net loss (income) attributable to noncontrolling interest in subsidiaries | 496 | $ 98 | (24) | $ 106 | 594 | 82 | ||
Net loss available to common stockholders | (29,025) | (20,248) | (67,226) | (51,501) | ||||
Net loss available to common stockholders | $ (29,025) | $ (20,248) | $ (67,226) | $ (51,501) | ||||
Denominator | ||||||||
Weighted-average common shares outstanding, basic (in shares) | [1] | 347,334,401 | 228,721,591 | 346,122,333 | 225,493,435 | |||
Weighted-average common shares outstanding, diluted (in shares) | [1] | 347,334,401 | 228,721,591 | 346,122,333 | 225,493,435 | |||
Net loss per share attributable to common stockholders, basic (in USD per share) | [1] | $ (0.08) | $ (0.09) | $ (0.19) | $ (0.23) | |||
Net loss per share attributable to common stockholders, diluted (in USD per share) | [1] | $ (0.08) | $ (0.09) | $ (0.19) | $ (0.23) | |||
|
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