424B3 1 tm2214831d1_424b3.htm 424B3

 

Filed pursuant to Rule 424(b)(3)

Registration Statement No. 333-260828

Prospectus Supplement No. 1

(To Prospectus dated April 20, 2022)

 

SCIENCE 37 HOLDINGS, INC.

 

Logo Description automatically generated

 

 

This Prospectus Supplement No. 1 (the “Prospectus Supplement”) updates, amends and supplements the prospectus of Science 37 Holdings Inc. (the “Company,” “we,” “us,” and “our”), dated April 20, 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 is being filed to update, amend and supplement the information included in the Prospectus with information on the Company’s unaudited first quarter financial results, which is set forth below.

 

This Prospectus Supplement is not complete without the Prospectus. This Prospectus Supplement 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 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 May 6, 2022, the closing price of our common stock was $3.54.

 

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 May 9, 2022.

 

 

 

 

SCIENCE 37 HOLDINGS, INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

   Three Months Ended March 31, 
(In thousands, except per share data)  2022   2021 
Revenues (including amounts with related parties)  $18,686   $12,438 
           
Operating expenses:          
Cost of revenues (including amounts with related parties)   15,986    8,638 
Selling, general and administrative   30,153    9,164 
Depreciation and amortization   3,469    1,497 
Total operating expenses   49,608    19,299 
           
Loss from operations   (30,922)   (6,861)
           
Other income (expense):          
Interest income   94    1 
Sublease income   239    33 
Change in fair value of earn-out liability   75,500    — 
Other income (expense)   (18)   1 
Total other income   75,815    35 
Income (loss) before income taxes   44,893    (6,826)
Income tax (benefit) expense   (1)   — 
Net income (loss)  $44,894   $(6,826)
           
Earnings (loss) per share:          
Basic  $0.39   $(1.28)
Diluted  $0.35   $(1.28)
           
Weighted average common shares outstanding:          
Basic   115,387    5,319 
Diluted   126,462    5,319 

 

 

 

 

SCIENCE 37 HOLDINGS, INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

  

   (unaudited)     
(In thousands, except share data)  March 31,
2022		   December 31,
2021		 
Assets          
Current assets:          
Cash and cash equivalents  $179,551   $214,601 
Restricted cash   —    — 
Accounts receivable and unbilled services, net (including amounts with related parties)   10,133    10,699 
Prepaid expenses and other current assets   7,991    7,403 
Total current assets   197,675    232,703 
Property and equipment, net   1,374    1,393 
Operating lease right-of-use assets   1,805    2,086 
Capitalized software, net   32,122    24,290 
Other assets   325    326 
Total assets  $233,301   $260,798 
Liabilities, redeemable convertible preferred stock and stockholders’ equity          
Current liabilities:          
Accounts payable  $10,764   $12,819 
Accrued expenses and other liabilities   14,680    17,073 
Deferred revenue   5,433    5,130 
Total current liabilities   30,877    35,022 
Long-term liabilities:          
Long-term deferred revenue   2,030    2,478 
Operating lease liabilities   1,176    1,322 
Other long-term liabilities   1,637    1,477 
Long-term earn-out liability   23,400    98,900 
Total liabilities   59,120    139,199 
           
Redeemable convertible preferred stock:          
Redeemable convertible preferred stock, $0.0001 par value; 100,000,000 shares authorized, 0 issued and outstanding at March 31, 2022 and December 31, 2021, respectively   —    — 
Stockholders’ equity:          
Common stock, $0.0001 par value; 400,000,000 shares authorized, 115,713,623 and 114,991,026 issued and outstanding at March 31, 2022 and December 31, 2021, respectively   12    11 
Additional paid-in capital   331,353    323,666 
Accumulated deficit   (157,184)   (202,078)
Total stockholders’ equity   174,181    121,599 
Total liabilities, redeemable convertible preferred stock and stockholders’ equity  $233,301   $260,798 

 

 

 

 

SCIENCE 37 HOLDINGS, INC. and SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

   Three Months Ended March 31, 
(In thousands)  2022   2021 
Operating activities          
Net income (loss)  $44,894   $(6,826)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   3,469    1,497 
Non-cash lease expense related to operating lease right-of-use assets   281    494 
Stock-based compensation   7,557    225 
Gain on change in fair value of earn-out liability   (75,500)   — 
Changes in assets and liabilities:          
Accounts receivable and unbilled services, net (including amounts with related parties)   566    2,139 
Prepaid expenses and other current assets   (571)   (845)
Other assets   1    (142)
Accounts payable   (5,294)   (1,954)
Accrued expenses and other current liabilities   (3,255)   (2,213)
Deferred revenue   (145)   525 
Operating lease liabilities   (145)   (216)
Other, net   159    229 
Net cash used in operating activities   (27,983)   (7,087)
Investing activities          
Capitalization of software development costs   (7,035)   (2,298)
Purchases of fixed assets   (146)   (111)
Net cash used in investing activities   (7,181)   (2,409)
Financing activities          
Cash received from stock option exercises   114    63 
Net cash provided by financing activities   114    63 
Net decrease in cash, cash equivalents, and restricted cash   (35,050)   (9,433)
Cash, cash equivalents, and restricted cash, beginning of period   214,601    33,483 
Cash, cash equivalents, and restricted cash, end of period  $179,551   $24,050 
Supplemental disclosures of non-cash activities:          
Balance in accounts payable and accrued expenses and other current liabilities related to capitalized software and fixed asset additions  $(4,101)  $(742)
Balance in prepaid expenses and other current assets related to stock option exercises  $17   $269 

 

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