Filed pursuant to Rule 424(b)(3)

Registration Statement No. 333-260828

 

Prospectus Supplement No. 1

(To Prospectus dated January 25, 2022)

 

SCIENCE 37 HOLDINGS, INC.

 

 

 

This Prospectus Supplement No. 1 updates, amends and supplements the prospectus of Science 37 Holdings Inc. (the “Company,” “we,” “us,” and “our”), dated January 25, 2022 (the “Prospectus”), which forms a part of our Registration Statement on Form S-1 (Registration No. 333-260828). Capitalized terms used in this Prospectus Supplement No. 1 and not otherwise defined herein have the meanings specified in the Prospectus.

 

This Prospectus Supplement No. 1 is being filed to update, amend and supplement the information included in the Prospectus with information on the Company’s fourth quarter and full year 2021 financial results, which is set forth below.

 

This Prospectus Supplement No. 1 is not complete without the Prospectus. This Prospectus Supplement No. 1 should be read in conjunction with the Prospectus, which is to be delivered with this prospectus supplement, and is qualified by reference thereto, except to the extent that the information in this Prospectus Supplement No. 1 updates or supersedes the information contained in the Prospectus. Please keep this prospectus supplement with your Prospectus for future reference.

 

The Company’s common stock is listed on the Nasdaq Stock Market LLC under the symbol “SNCE.” On March 21, 2022, the closing price of our common stock was $5.94.

 

We are an “emerging growth company” under federal securities laws and are subject to reduced public company reporting requirements. Investing in our securities involves certain risks. See “Risk Factors” beginning on page 4 of the Prospectus.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

 

The date of this prospectus supplement is March 22, 2022.

 

 

 

 

SCIENCE 37 HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except share and per share data)

 

  

Three Months Ended

December 31,

 

  

Year Ended

December 31,

 

 
   2021   2020   2021   2020 
Revenues (including amounts with related parties)  $20,376   $11,163   $59,597   $23,704 
                     
Operating expenses:                    
Cost of revenues (including amounts with related parties)   16,148    11,668    42,394    22,597 
Selling, general and administrative   35,646    10,481    73,122    28,351 
Depreciation and amortization   2,610    1,284    7,799    4,447 
Restructuring Costs       72        772 
Total operating expenses   54,404    23,505    123,315    56,167 
                     
Loss from operations   (34,028)   (12,342)   (63,718)   (32,463)
                     
Other income (expense):                    
Interest income   1    1    3    77 
Sublease income (including amounts with related parties)   241    12    685    709 
Change in fair value of earn-out liability   (31,300)       (31,300)    
Other income (expense)   (12)   5        3 
Total other income (expense)   (31,070)   18    (30,612)   789 
Loss before income taxes   (65,098)   (12,324)   (94,330)   (31,674)
Income tax expense   1        1     
Net loss and comprehensive loss  $(65,099)  $(12,324)  $(94,331)  $(31,674)
                     
Net loss per share:                    
Basic and diluted  $(0.60)  $(0.91)  $(2.89)  $(2.13)
                     
Weighted average common shares outstanding:                    
Weighted average shares used to compute basic and diluted net loss per share   109,100,582    13,473,103    32,679,105    14,869,184 

 

 

 

 

 

SCIENCE 37 HOLDINGS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

   December 31, 
   2021   2020 
Assets        
Current assets:          
Cash and cash equivalents  $214,601   $32,479 
Restricted cash       1,004 
Accounts receivable and unbilled services, net (including amounts with related parties)   10,699    11,200 
Prepaid expenses and other current assets   7,403    1,365 
Total current assets   232,703    46,048 
Property and equipment, net   1,393    535 
Operating lease right-of-use assets   2,086    2,210 
Capitalized software, net   24,290    8,054 
Other assets   326    184 
Total assets  $260,798   $57,031 
Liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)          
Current liabilities:          
Accounts payable  $12,819   $4,402 
Accrued expenses and other liabilities   17,073    8,763 
Deferred revenue   5,130    5,136 
Total current liabilities   35,022    18,301 
Long-term liabilities:          
Long-term deferred revenue   2,478    428 
Operating lease liabilities   1,322    1,128 
Other long-term liabilities   1,477   223 
Long-term earn-out liability   98,900     
Total liabilities   139,199    20,080 
           
Redeemable convertible preferred stock:          
Redeemable convertible preferred stock, $0.0001 par value; 100,000,000 and 75,685,626 shares authorized, 0 and 75,495,266 issued and outstanding at December 31, 2021 and 2020, respectively       143,086 
Stockholders’ equity (deficit):          
Common stock, $0.0001 par value; 400,000,000 and 114,290,527 shares authorized, 114,991,026 and 5,019,582 issued and outstanding at December 31, 2021 and 2020, respectively   11    1 
Additional paid-in capital   323,666    1,611 
Accumulated deficit   (202,078)   (107,747)
Total stockholders’ equity (deficit)   121,599    (106,135)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)  $260,798   $57,031 

 

 

 

 

SCIENCE 37 HOLDINGS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

   Year Ended December 31, 
   2021   2020 
Operating activities          
Net loss  $(94,331)  $(31,674)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   7,799    4,447 
Non-cash lease expense related to operating lease right-of-use assets   1,429    1,885 
Stock-based compensation   8,407    122 
Loss on change in fair value of earn-out liability   31,300     
Loss on disposal of fixed assets   10     
Changes in assets and liabilities:          
Accounts receivable and unbilled services, net (including amounts with related parties)   501    (7,860)
Prepaid expenses and other current assets   (6,026)   (226)
Other assets   (142)   363 
Accounts payable   5,243    3,832 
Accrued expenses and other current liabilities   7,158    6,782 
Deferred revenue   2,044    632 
Operating lease liabilities   (1,112)   (3,607)
Other, net   1,242    (172)
Net cash used in operating activities   (36,478)   (25,476)
Investing activities          
Capitalization of software development costs   (19,345)   (5,814)
Purchases of fixed assets   (1,231)   (352)
Net cash used in investing activities   (20,576)   (6,166)
Financing activities          
Proceeds from Series D-1 financing, net of issuance costs       39,860 
Repurchase of common stock       (3,675)
Proceeds from warrant exercises   10     
PIPE shares issuance, net of transaction costs   184,530     
Merger shares issuance, net of transaction costs   52,200     
Cash received from stock option exercises   1,432    132 
Net cash provided by financing activities   238,172    36,317 
Net increase in cash, cash equivalents, and restricted cash   181,118    4,675 
Cash, cash equivalents, and restricted cash, beginning of period   33,483    28,808 
Cash, cash equivalents, and restricted cash, end of period  $214,601   $33,483 
Supplemental disclosures of non-cash activities:          
Net change in accounts payable and accrued expenses and other current liabilities related to capitalized software and fixed asset additions  $(4,325)  $(375)
ROU asset obtained in exchange for operating lease liabilities  $(1,305)  $(4,096)
Conversion of preferred stock into common stock  $(143,086)  $ 
Earn-out shares  $67,600   $ 

 

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