艾米麗亞控股有限公司及其子公司
簡明合併資產負債表
（單位：千美元，以股份數據爲單位）
(未經審計)
(未經審計)
| 6月30日, | 12月31日 | ||||||||||||||||
| 2024 | 2023 | ||||||||||||||||
| 資產 | |||||||||||||||||
| 流動資產： | |||||||||||||||||
現金及現金等價物 | $ | 2,717 | $ | 11,359 | |||||||||||||
應收賬款減除分別爲$120萬和$70萬的信用損失準備 | 11,087 | 19,747 | |||||||||||||||
預付費用和其他流動資產 | 2,249 | 1,244 | |||||||||||||||
其他應收款 | 2,941 | 2,471 | |||||||||||||||
遞延銷售佣金 | 1,104 | 1,082 | |||||||||||||||
合同資產 | 2,692 | 3,500 | |||||||||||||||
總流動資產 | 22,790 | 39,403 | |||||||||||||||
| 無形資產，減去分別爲1970萬美元和1250萬美元的累計攤銷 | 47,971 | 55,099 | |||||||||||||||
| 商譽 | 107,307 | 107,307 | |||||||||||||||
| 遞延銷售佣金，非流動資產 | 2,164 | 2,580 | |||||||||||||||
| 其他非流動資產 | 3,432 | 3,506 | |||||||||||||||
總資產 | $ | 183,664 | $ | 207,895 | |||||||||||||
負債、可轉換贖回優先股和股東權益赤字 | |||||||||||||||||
| 流動負債: | |||||||||||||||||
應付賬款 | $ | 12,312 | $ | 6,874 | |||||||||||||
應計費用 | 11,738 | 13,871 | |||||||||||||||
推遲收益 | 26,791 | 26,646 | |||||||||||||||
長期負債的流動部分 | 96,014 | 88,708 | |||||||||||||||
應相關方付款 | 858 | 1,395 | |||||||||||||||
Contingent value right liability | — | 9,667 | |||||||||||||||
其他流動負債 | 5,998 | 6,668 | |||||||||||||||
流動負債合計 | 153,711 | 153,829 | |||||||||||||||
| 遞延收入，減去當前部分淨額 | 5,722 | 12,292 | |||||||||||||||
| 認股權負債 | 5,424 | 4,640 | |||||||||||||||
| 遞延所得稅負債 | 12,378 | 12,665 | |||||||||||||||
| 其他非流動負債 | 72 | 140 | |||||||||||||||
負債合計 | 177,307 | 183,566 | |||||||||||||||
承諾和不確定事項（注8） | |||||||||||||||||
| A-1、A-2、A-3和A-4首選股，面值$0.001；授權16,034,483股； | |||||||||||||||||
發行和流通股數分別爲11,546,221股和7,780,941股。總清算 | |||||||||||||||||
優先清算金額分別爲$267.680和$251,900，截至2024年6月30日和2023年12月31日 | 267,680 | 251,900 | |||||||||||||||
股東赤字： | |||||||||||||||||
A類和B類普通股，面值$0.001；授權253,933,170股；100,000,000 | |||||||||||||||||
普通股，面值0.001美元；授權股本9.5億股；截至2024年6月30日和2023年12月31日，已發行並流通股票合計4,987,268股和4,511,199股。 | 100 | 100 | |||||||||||||||
累計虧損 | (258,813) | (225,770) | |||||||||||||||
累計其他綜合損失 | (2,610) | (1,901) | |||||||||||||||
股東赤字總額 | (261,323) | (227,571) | |||||||||||||||
總負債、可轉換可贖回優先股和股東赤字 | $ | 183,664 | $ | 207,895 | |||||||||||||
阿米莉亞控股有限公司和子公司
綜合損失及綜合損益簡明綜合表
（以千爲單位）
(未經審計)
| 銷售額最高的六個月 6月30日, | ||||||||||||||||||||
| 2024 | 2023 | |||||||||||||||||||
| 營業收入 | $ | 45,332 | $ | 46,812 | ||||||||||||||||
| 營業費用 | ||||||||||||||||||||
營業費用成本（不包括折舊和攤銷） | 25,004 | 28,086 | ||||||||||||||||||
研發 | 5,893 | 6,598 | ||||||||||||||||||
銷售及營銷費用 | 11,587 | 12,135 | ||||||||||||||||||
ZSCALER, INC. | 12,342 | 14,161 | ||||||||||||||||||
折舊和攤銷 | 6,073 | 6,026 | ||||||||||||||||||
總成本和費用 | 60,899 | 67,006 | ||||||||||||||||||
經營虧損 | (15,567) | (20,194) | ||||||||||||||||||
其他收益（費用），淨: | ||||||||||||||||||||
其他收入（費用）淨額 | 6,828 | (79) | ||||||||||||||||||
利息支出 | (10,644) | (10,139) | ||||||||||||||||||
總其他收入(費用)，淨額 | (3,816) | (10,218) | ||||||||||||||||||
| 稅前虧損 | (19,383) | (30,412) | ||||||||||||||||||
| 所得稅費用 | (123) | (231) | ||||||||||||||||||
淨虧損 | $ | (19,506) | $ | (30,643) | ||||||||||||||||
其他綜合損失: | ||||||||||||||||||||
外幣翻譯調整 | (709) | (925) | ||||||||||||||||||
總綜合虧損 | $ | (20,215) | $ | (31,568) | ||||||||||||||||
艾米利亞控股公司及其附屬公司
可轉換的不可贖回優先股和股東赤字的精簡合併變動表
（單位：千元，股份數據除外）
(未經查核)
2023年6月30日結束的六個月 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
A優先股 | 優先股 - A-4系列 | 普通B類股 | 資本公積金 | 累積其他綜合損失 | 累積虧損 | 股東權益合計虧損 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 股份 | 金額 | 股份 | 金額 | 股份 | 金額 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
截至2022年12月31日的资产负债表 | 7,780,941 | $ | 226,939 | — | $ | — | 100,000,000 | $ | 100 | $ | — | $ | (1) | $ | (134,379) | $ | (134,280) | |||||||||||||||||||||||||||||||||||||||||||||
累積外匯兌換調整 | — | — | — | — | — | — | — | (925) | — | (925) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| Senior Series A優先股增值 | — | 12,342 | — | — | — | — | — | — | (12,342) | (12,342) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
淨損失 | — | — | — | — | — | — | — | — | (30,643) | (30,643) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
截至2023年6月30日的結餘 | 7,780,941 | $ | 239,281 | — | $ | — | 100,000,000 | $ | 100 | $ | — | $ | (926) | $ | (177,364) | $ | (178,190) | |||||||||||||||||||||||||||||||||||||||||||||
2024年6月30日止半年度 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Senior Series A優先股 | 優先股 - A-4系列 | 普通B類股 | 資本公積金 | 累積其他綜合損失 | 累積虧損 | 股東權益合計虧損 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 股份 | 金額 | 股份 | 金額 | 股份 | 金額 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
截至2023年12月31日的結餘 | 7,780,941 | $ | 251,900 | — | $ | — | 100,000,000 | $ | 100 | $ | — | $ | (1,901) | $ | (225,770) | $ | (227,571) | |||||||||||||||||||||||||||||||||||||||||||||
股份報酬 | — | — | — | — | — | — | 202 | — | — | 202 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 購置高級A系列優先股 | — | 13,739 | — | — | — | — | (202) | — | (13,539) | (13,739) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
發行優先股以轉換CVR | — | — | 3,765,280 | 2,041 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
累積外匯兌換調整 | — | — | — | — | — | — | — | (709) | — | (709) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
淨損失 | — | — | — | — | — | — | — | — | (19,506) | (19,506) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
截至2024年6月30日的餘額 | 7,780,941 | $ | 265,639 | 3,765,280 | $ | 2,041 | 100,000,000 | $ | 100 | $ | — | $ | (2,610) | $ | (258,813) | $ | (261,323) | |||||||||||||||||||||||||||||||||||||||||||||
.
艾米利亞控股公司及其附屬公司
簡明財務報表現金流量表
(以千為單位)
(未經查核)
| 六個月結束 6月30日， | |||||||||||
| 2024 | 2023 | ||||||||||
| 經營活動現金流量： | |||||||||||
| 淨損失 | $ | (19,506) | $ | (30,643) | |||||||
| 調整為使淨虧損轉化為經營活動所使用現金： | |||||||||||
折舊 | 72 | 27 | |||||||||
遞延佣金攤銷 | 479 | 56 | |||||||||
營業無形資產攤銷 | 6,001 | 5,998 | |||||||||
營運租賃資產的變動 | 148 | 204 | |||||||||
信用損失準備 | 487 | — | |||||||||
債務發行成本攤銷 | 1,923 | 1,672 | |||||||||
到期時應付債務的應計以實物支付的利息 | 384 | 378 | |||||||||
CVR支付 | — | (3,576) | |||||||||
| 推延所得稅 | (287) | 300 | |||||||||
認股權證和CVR負債公允價值的變動 | (6,841) | 1,896 | |||||||||
其他 | (31) | (44) | |||||||||
營運資產和負債的變化： | |||||||||||
應收帳款淨額 | 8,173 | 5,367 | |||||||||
其他應收款項 | (470) | 431 | |||||||||
預付費用及其他資產 | (1,079) | (2,077) | |||||||||
推遲銷售佣金 | (85) | (1,544) | |||||||||
合同資產 | 808 | (519) | |||||||||
應付賬款 | 5,437 | (12,037) | |||||||||
應計費用 | (2,133) | (6,726) | |||||||||
由於相關方 | 537 | 2,483 | |||||||||
營業租賃負債 | (152) | (195) | |||||||||
透過租賃取得的收益 | (6,425) | (4,113) | |||||||||
其他負債 | (586) | 231 | |||||||||
經營活動所使用之淨現金流量 | (13,146) | (42,431) | |||||||||
| 投資活動中使用的現金流量： | |||||||||||
購買不動產和設備 | (15) | (22) | |||||||||
投資活動中使用的淨現金 | (15) | (22) | |||||||||
來自籌資活動的現金流量： | |||||||||||
債務收入 | 5,000 | — | |||||||||
籌資活動提供的淨現金 | 5,000 | — | |||||||||
匯率變動對現金的影響 | (511) | 1,084 | |||||||||
現金及現金等價物淨減少額 | (8,642) | (41,325) | |||||||||
| 期初現金及現金等價物餘額 | 11,359 | 63,641 | |||||||||
| 期末現金及現金等價物 | $ | 2,717 | $ | 22,316 | |||||||
| 現金流量資訊的補充披露： | |||||||||||
支付利息的現金 | $ | 7,299 | $ | 5,640 | |||||||
支付所得稅現金 | $ | 180 | $ | 49 | |||||||
非現金營運租賃活動 | $ | 109 | $ | — | |||||||
發行A-4系列優先股以清償CVR負債 | $ | 2,041 | $ | — | |||||||
高級A系列優先股累積 | $ | 13,739 | $ | 12,342 | |||||||
5
艾米利亞控股公司及其附屬公司
基本報表附註
(未經查核)
註1.業務性質和組織
Amelia Holdings, Inc. 及其子公司（“Amelia Holdings”，“我們”或“公司”）從事人工智能etf（AI）和自動化解決方案及相關服務的開發和交付，目的是消除日常工作，使人類才智能專注於通過創新創造價值。公司總部位於紐約，目前在北美、歐洲和亞太地域板塊開展業務。公司提供軟體產品和相關服務，涵蓋金融服務、保險和醫療保健等多個行業。公司專注於基於軟體的人工智能etf產品和相關服務。公司於2022年8月19日在特拉華州註冊成立。
Amelia，我們基於人工智能的數字化資源解決方案已經建立在一系列從科技服務到業務工作流程（業務流程作為一種服務）的業務領域上。我們的人工智能能力嵌入Amelia操作設計中，用於監督和非監督式機器學習，推理（下一步操作）和自動化活動。通過執行以前由人類執行的任務，Amelia在實體和基於雲的技術基礎設施、應用程序和工作流程間作為“數字員工”的藍圖。Amelia產品和解決方案直接銷售，也通過渠道合作夥伴銷售。
該公司將其產品提供為一種軟體即服務（“SaaS”）方案，或者如果客戶需要在現場解決方案，則提供永久或有期限的許可證。關於該公司的Amelia軟體產品，還提供了維護和專業服務。 產品組合包括以下內容：
•Amelia Conversational AI - 軟體為基礎的勞動單位，按每個會話或每個使用者計費，涵蓋任務、活動和運行常規。這是聊天機器人、虛擬助手和機器人流程自動化模型的下一個演進階段。Amelia Conversational AI 是跨應用程式和工作流程功能點的軟體運行時任務。
•AIOps是一種專注於資訊技術（IT）的框架和人工智能平台。 AIOps是一種以機器學習、數據捕獲和數字化運營環境為重點的解決方案，專注於分析IT系統並協調多個操作自動化。 這些解決方案是根據IT服務管理平台、IT工作流程協調、人工智能、技術/基礎設施數據和雲操作系統的參考設計構建的。
•DigitalFirst - 提供人類等效服務，用於自主業務工作流程和內容/數據智能，首先由人力資本解決方案支持的數位代理執行，數位員工不斷學習。該解決方案由為各種垂直領域打造的數位代理組成，通過產品利用壽命中重新平衡人力和機器界面。
我們Amelia軟體的焦點，無論是內嵌於客戶產品中，還是通過我們的產品提供，是為了服務我們認為未來將有許多現有任務將由智能機器和系統執行的願景。
2023年6月30日，普通股持有人對Senior Series A優先股執行了看漲期權（見附註11）。在該日期，普通股股東與Senior Series A優先股持有人達成了協議：
•從執行協議開始，到2024年3月31日之間，可以籌集所有基金類型並完成一項確定協議，以實現購回Senior Series A Preferred Stock。如果未完成，該努力將被視為交易失敗。
•在交易失敗的情況下，作為Senior Series A Preferred Stock的持有人，BuildGroup將再次被授權買入高達$4000萬的A-3型優先股，公司將被授權在90天內發行該優先股。
艾米利亞控股公司及其附屬公司
基本報表附註
(未經查核)
•交易失敗將導致拖賣觸發，允許大部分Senior Series A優先股股東自行協商並完成公司的出售。
於2024年3月31日發生了交易失敗。
交易失敗導致如上所述的強制拖延觸發。在強制拖延觸發後，公司達成了最終購買協議，並被SoundHound 人工智能公司（"SoundHound）收購。交易於2024年8月6日完成。(參見備忘錄12)
附註2. 重大會計政策摘要
T公司在本申報書中包含了截至2023年12月31日止年度的年度基本報表，其重大會計政策詳見附表2 - 重大會計政策摘要。除下文所述的重大會計政策外，公司的重大會計政策未發生實質變動，在附表2 - 重大會計政策摘要中揭示的公司年度基本報表截至2023年12月31日。
報告基礎
這些未經審計的暫編合併財務基本報表已根據美國通行的會計準則（“美國GAAP”）和SEC有關暫時財務報告的適用規則和法規編製。在這些附註中對適用會計指引的任何提及旨在指代包含在會計標準編碼（“ASC”）內的權威美國GAAP，以及由財務會計準則委員會（“FASB”）發行的會計標準更新（“ASU”）。截至2024年6月30日的六個月營運結果並不能必然預示截至2024年12月31日財政年度結果或未來的任何暫時期間。
附屬的縮表合併基本報表包括Amelia Holdings, Inc.及其全資子公司的帳戶。某些前年金額已重新分類以符合當年呈報。
經營概念
這些基本報表是在假設公司將繼續營業的情況下準備的，意味著它將在可預見的將來繼續運作，並能夠在業務的正常運作過程中實現資產和支付負債。該公司歷史上一直虧損經營，並且沒有持續從運營中產生足夠的現金流來支付其營運和其他現金支出。這些因素讓人對公司是否能夠繼續營業存在重大疑慮。財務報表未包括任何涉及已記錄資產的回收能力和分類，或在公司無法繼續存在的情況下可能需要的負債金額或分類的任何調整。由於公司的營運虧損、現金餘額下降以及對資金的相應需求，公司需要通過債務或股權探索籌集資金的潛在途徑。如果公司無法獲得額外融資，流動性不足可能對公司未來的營運計劃產生重大不利影響。公司將繼續積極尋求可用的融資方案，與客戶合作以增加未來銷售額並繼續控制成本。雖然公司相信其策略的可行性，但不能保證其效果。
估計的使用
依據美國通用會計原則編製簡明合併基本報表，管理層需要進行涉及簡明合併基本報表及附註中所報金額的估計、判斷和假設。
管理層基於歷史經驗和其他因素，包括當前的經濟環境，持續對其估計和假設進行評估，管理層認為在該情況下是合理的。該等估計包括但不限於營業收入確認，延遲銷售佣金的預期受益期間。
艾米利亞控股公司及其附屬公司
基本報表附註
(未經查核)
應計負債會計、預期信用虧損提呈、收購企業購買價格分攤、無形資產及商譽估值、所得稅會計以及相關估值撥備。在事實和情況所指示時，公司會調整這些估計和假設。由於持續變化的經濟環境帶來的估計變化將在未來期間的基本報表中反映。由於未來事件及其影響無法精確確定，實際結果可能與這些估計和假設有顯著不同，原因是因為風險和不確定因素。
Revenue Recognition
The Company derives revenues from the sale of access to its Amelia and AIOps platforms (“Amelia Software Platforms”) through licenses to its subscription-based software, access to its subscription services and professional service offerings. We recognize revenue in the amount that reflects the consideration we expect to receive in exchange for the sale of licenses, access to subscription services and professional service offerings when control of the promised products and services is transferred to our customers and the performance obligations under the contract have been satisfied.
Revenue is recognized net of any taxes collected from customers, which are subsequently remitted to governmental entities (e.g., sales and other indirect taxes).
The Company recognizes revenue under the five-step methodology required under ASC 606, Revenue from Contracts with Customers (ASC 606), which requires the Company to identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations identified, and recognize revenue when (or as) each performance obligation is satisfied.
公司通常通過訂單形式與客戶簽訂合同，這些合同由主要銷售協議管轄。公司確定與客戶簽訂合同時，經批准的合同，雙方有關轉移許可證、訂閱或專業服務的權利以及這些產品和服務的付款條款都可辨認。公司已確定客戶具備支付能力和意願，且合同具有商業實質。公司在確定客戶的支付能力和意願時進行判斷，根據多種因素進行，包括客戶的過往支付經驗或新客戶的信貸、聲譽和與客戶有關的財務或其他信息。當簽訂合同時，公司評估合同是否屬於更大的安排，應該與其他合同一起核算，以及結合或單一合同是否包含多個履行義務。合同修改在執行我們的合同中是例行事項。合同通常會根據合同規格、要求或期限的變更進行修改。如果合同修改導致新增以單獨銷售價格定價的履行義務，或者如果修改後的服務與修改前提供的服務不同，則修改將單獨核算。如果修改後的服務不具有區分性，則將其視為現有合同的一部分核算。
許可
涉及我們Amelia軟體平台的授權相關營業收入主要屬於期限授權，為客戶提供在指定時間內使用我們軟體產品的權利，當軟體授權轉移完成並提供給客戶時，即在授權可供客戶使用時點予以確認。對於授權收入，當授權提供或每年在合約週年紀念日時開具發票。
訂閱
我們通過提供使用我們Amelia軟體平台（saas-云计算安排）相關的訂閱服務收入，來產生營業收入，對於這些安排，客戶沒有以重大懲罰的方式取得基礎軟體的合約權益，或者對客戶來說在自己的硬件上運行軟體或與第三方簽訂主機軟件的合約不可行。 saas產品是立即可展開履行的義務，提供對我們產品的訪問權，相關收入按照安排的合約期間以均速認列，從向客戶提供產品訪問權的日期開始並在服務控制轉移給客戶時。我們根據服務提供之前的每月、每年或一次性基礎來開具這些合同的發票。
艾米利亞控股公司及其附屬公司
基本報表附註
(未經查核)
訂閱服務收入還包括提供給許可和saas-云計算安排的持續客戶支持和維護，其中技術支持和提供未指定更新和升級以及按需提供的內容。持續的客戶支持和維護代表著現成的義務，將收入按照持續的客戶支持和維護期間分期認列。對於持續的客戶支持和維護服務，我們通常提前每年向客戶開具發票。
專業服務及其他
專業服務和其他營業收入包括我們通過軟體工程師使用Amelia軟體平台提供的托管服務的收入，該收入包括一系列相同的明顯服務，並且具有相同的轉移模式（即，明顯的服務日）。我們根據每月或每季的基礎向客戶開具托管服務發票，並在提供服務的期間內按比例確認收入。
此外，專業服務包括與許可證和訂閱服務一起出售的諮詢服務和實施服務。專業服務還可能包括測試/投入使用支援、用例的開發/部署和培訓。這些專業服務可基於按時間和材料計費或固定價格合同提供，並隨著服務的提供而隨時間承認營業收入。
合約資產和負債
營業收入確認的時機可能與向客戶開具發票的時間不同，這些時間差異導致公司簡明綜合資產負債表上出現應收款項、合同資產（未開票營收）或合同負債（預付營收）。當公司擁有向客戶開具發票並收取款項的無條件權利時，公司會記錄與營業收入相關的應收款項。當營業收入在開具發票之前確認且公司沒有向客戶開具發票或與滿足履行承諾有關的風險仍留存時，公司會記錄未開票營收。
這裡的延遲收入主要包括提前收取的客戶帳單或款項，以及從客戶合同中確認收入之前收到的款項，其中包括不可取消和不可退款的承諾基金以及可退款的客戶存款。預計於隨後十二個月內確認的延遲收入被記錄為當期的延遲收入，其餘部分則被記錄為非流動。
營業費用
公司的運營費用包括營收成本、研發、銷售和市場營銷、總務和行政以及折舊和攤銷。
公司的營業收入成本包括直接與Amelia的上述營收流程相關聯的成本。這主要包括與雲端服務的代管相關的成本，例如網絡管理，以及某些與這些營收流程直接相關的人員相關費用，包括薪金、福利和獎金。
研發活動包括與開發活動直接相關的人事費用，例如持續改進和構思用例，以及用於研究和開發目的的技術供應和idc概念容量相關成本。公司在新產品的設計和開發在確定技術可行性之前的研發費用於其產生的期間進行支出。
銷售和營銷活動旨在吸引新客戶並增加公司與現有客戶的業務。銷售和營銷活動主要由與銷售和營銷人員相關的人事成本和支付給銷售員的佣金組成。
一般及行政活動包括專業費用、一般公司和設施成本以及開支，包括執行、財務、法律和人力資源活動的人員相關費用。
艾米利亞控股公司及其附屬公司
基本報表附註
(未經查核)
折舊和攤銷包括公司資產和設備的折舊以及無形資產的攤銷。
外幣
公司各國際附屬公司的功能性貨幣是其當地貨幣。外國業務的帳戶使用資產和負債的匯率，在賬戶結算日和收入支出賬戶的期間使用平均優勢匯率轉換為美元。
翻譯所致之調整已包括在累積其他綜合收益（損失）中。
實現和未實現的交易收益和損失，均記錄在我們的簡明綜合獲利表中，歸屬於發生當期。公司認可截至2024年和2023年6月30日的六個月中的淨外匯收益（損失）分別為40萬美元和（0.5）百萬美元。
信用風險集中和重要客戶
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, and accounts receivable.
All the Company’s customers consist of corporate and governmental entities. A limited number of customers have accounted for a large part of the Company’s revenue and accounts receivable to date. The Company provides credit to its customers in the normal course of business and requires no collateral to secure accounts receivable.
As of June 30, 2024 and December 31, 2023, no customer accounted for more than 10% and one customer accounted for 11.6% of the Company’s accounts receivable, respectively. No single customer accounted for more than 10% of the Company’s revenue for the six months ended June 30, 2024 and 2023, respectively.
Recent Accounting Pronouncements – Not Yet Adopted
In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update No. 2023-09, which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the updated standard will have on the financial statement disclosures.
NOTE 3. AMELIA BUSINESS COMBINATION
The Reorganization discussed in Note 1. Nature of Business and Organization was accounted for by Amelia Holdings in accordance with the acquisition method of accounting pursuant to ASC 805 as Amelia Holdings obtained a controlling financial interest in Amelia and Amelia constitutes a business with inputs, processes, and outputs. Topic 805 requires the Company to recognize acquired assets, including identifiable intangible assets and all assumed liabilities, at fair value on the acquisition date. Determining the fair value of assets acquired and liabilities assumed requires management’s judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates and asset lives. The fair value of assets deemed acquired and liabilities assumed was determined based on assumptions that reasonable market participants would use in the principal (or most advantageous) market for the asset or liability. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill.
The Company is amortizing the acquired identifiable definite-lived intangible assets over their estimated useful lives from the acquisition date, which is consistent with the estimated useful life considerations used in determining their fair values. During the six months ended June 30, 2024 and 2023 the Company recorded approximately $6.1 million and $6.0 million of amortization expense on the acquired intangible assets, respectively. The estimated aggregate amortization expense for
AMELIA HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
each of the five succeeding fiscal years is approximately $11.9 million in each year. The weighted-average amortization period is approximately 5.7 years. The Amelia Business Combination did not result in a material step-up in the tax basis of any of the acquired assets (including Goodwill) for U.S. federal income tax purposes.
As part of the purchase consideration transferred, the Company entered into a Contingent Value Right (“CVR”) Agreement (“CVR Agreement”) with the Predecessor Parent with a stated value of $40.0 million. The stated value of the CVR is reduced by lease payments that the Company will make on behalf of the Predecessor Parent until the earlier of the date a Qualified Financing, as defined in the CVR Agreement, occurs, or June 30, 2023. The remaining stated value of the CVR after any lease payments will be satisfied as follows:
1)Cash payment to the Predecessor Parent upon receipt of proceeds from any Qualified Financing.
2)If a Qualified Financing does not occur, the Company will issue Series A-4 Preferred Stock on June 30, 2023, based on the remaining stated value divided by $9.69.
The Company determined that the fair value of the CVR issued as part of the overall purchase consideration was $10.6 million as of December 21, 2022.
On June 30, 2023, the Company separately modified the CVR Agreement with its Predecessor Parent. The significant modifications were as follows:
1)The CVR stated valued was increased by $3.6 million.
2)The Company extended the period of time in which it funded the lease payments on behalf of the Predecessor Parent through December 31, 2023. These lease payments reduced the amended CVR balance through December 31, 2023.
3)The original conversion date of the CVR to Series A-4 of June 30, 2023, was modified to set a termination date at the earlier of the CVR amount reducing to zero or the date on which the Company issues either a promissory note or Series A-4 Preferred Stock to settle the CVR. The issuance of Series A-4 Preferred Stock was to occur thirty days after a Transaction Failure as defined in the agreements.
4)The agreement regarding subleasing of floors was reduced from three floors to two floors as of January 1, 2024, however no sublease has been executed.
5)The agreement regarding subleasing of floors was reduced to zero should a successful financing be completed that fully redeems the Series A Preferred Stock.
6)The requirement to utilized funds from sale of Series A-3 Preferred Stock, if any, for the redemption of CVR balances was terminated.
As of June 30, 2024, the stated balance of the CVR is approximately $36.5 million as the Company continued to make lease payments on behalf of the Predecessor Parent through June 30, 2024. The CVR had a fair value of $2.0 million. On June 30, 2024, the CVR was converted to 3,765,280 shares of Series A-4 Preferred Stock, therefore terminating the CVR agreement. The fair value of the CVR was recorded as preferred stock upon settlement on the condensed consolidated balance sheet.
The Company elected to account for the CVR under the fair value option as it believes this election best reflects changes in fair value of consideration that is expected to be transferred. The fair value estimate is considered a Level 3 measurement. Changes in fair value are recognized through earnings within other income (expense), net on the condensed consolidated a statements of operations and comprehensive loss.
The following is a roll forward of the CVR measured at fair value on a recurring basis using unobservable inputs (Level 3).
AMELIA HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| Balance at December 31, 2023 | $ | 9,667 | |||
| Change in fair value | (7,627) | ||||
| Settlement of CVR upon conversion to Preferred Stock Series A-4 | (2,041) | ||||
| Balance at June 30, 2024 | $ | — | |||
NOTE 4. REVENUE
Disaggregation of Revenue
The following table presents our revenues disaggregated in accordance with the timing of when performance obligations are satisfied:
| Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Revenue recognized at a point in time: | |||||||||||
License | $ | 1,280 | $ | 1,930 | |||||||
| Revenue recognized over time: | |||||||||||
Services and other | 8,838 | 9,087 | |||||||||
Subscription | 35,214 | 35,795 | |||||||||
| Total revenue | $ | 45,332 | $ | 46,812 | |||||||
Revenue by geographic region for periods presented are summarized below:
| 截至六月三十日之半年度財報 | |||||||||||
| 2024 | 2023 | ||||||||||
| 地域板塊的營業收入: | |||||||||||
美利堅合眾國 | $ | 34,943 | $ | 32,557 | |||||||
國際 | 10,389 | 14,255 | |||||||||
| 營業總收入 | $ | 45,332 | $ | 46,812 | |||||||
合約資產和負債餘額
未開票營業收入分別為2024年6月30日和2023年12月31日為270萬和350萬美元，在簡明合併資產負債表上以合約資產形式記錄。在2024年6月30日和2023年結束的六個月內，合約資產沒有任何損耗。
截至2024年6月30日和2023年12月31日，递延收入余额分别为3250萬美元和3890萬美元（扣除重要融资部分的递延利息）。
在2024年和2023年截至6月30日的六個月的報告期初始，認列的營業收入分別為2210萬和1910萬美元。
艾米利亞控股公司及其附屬公司
基本報表附註
(未經查核)
截至2024年6月30日，分配给尚未履行或部分履行的客戶合同相關剩餘履行義務的交易價格總額達8780萬美元。根據適用合同條款，預計5400萬美元將在一年內確認為營業收入，預計3380萬美元將在2至5年之間確認。此金額不包括客戶沒有承諾的合同，公司認識營業收入等於公司有權索取已提供服務的金額的合同，或以未來基於銷售或使用的版稅付款交換獲取公司服務的合同。此金額可能因未來重新評估變動的可變量、終止、其他合同修改或貨幣調整而改變。預計尚未履行的履行義務的確認時間可能會變更，並受合約範圍的變更、產品和服務交付時間的變更或合同修改的影響。
未開發帳款
未開具發票的應收款項是指在合同上確認的收入超過到目前為止為該合同開具的帳單，且在支付考量權利前僅要求時間流逝即可無條件。截至2024年6月30日和2023年12月31日，未開具發票的應收款項分別為60萬美元和210萬美元，並已記錄在簡明綜合資產負債表中的合同資產內。
5. 債務和資本租賃義務
按以下（以千為單位）未攤銷折扣的當前及非當前債務淨額為：
| 六月三十日 2024 | 12月31日， 2023 | ||||||||||
| 梅洛 Term 貸款設施，折扣後淨值 | $ | 72,485 | $ | 70,485 | |||||||
| 梅洛 延遲支取設施，折扣後淨值 | 23,529 | 17,384 | |||||||||
| 梅洛 循環貸款設施 | — | 839 | |||||||||
| 總債務負擔 | 96,014 | 88,708 | |||||||||
| 負債的流動部分減少 | (96,014) | (88,708) | |||||||||
| 債務的非流動部分 | $ | — | $ | — | |||||||
截至2024年6月30日和2023年12月31日，公司的簡明合併資產負債表分別有2090萬和2270萬美元未攤銷的關於公司債務借款的發行成本，這些成本分別被認列為公司目前和非流動債務的直接減少，如下所述的。 蒙羅信貸協議 下面的部分。
公司透過2024年3月31日利用其延遲提領授信貸款設施，並提取了600萬美元。
蒙羅信貸協議
2022 年 12 月 21 日，公司與門羅資本簽訂協議，其中門羅資本向公司提供信貸，以 (a) 截止日期總本金 75 百萬美元的定期貸款（「定期貸款設施」）、(b) 一百萬元承諾延期抽取定期貸款（「延期提款定期貸款設施」）和 (c) 500 萬元承諾循環貸款（「延期提款定期貸款」）的形式貸款設施」）。定期貸款設施所得款項已於 2022 年 12 月 21 日撥款。截至二零二三年十二月三十一日，有關定期貸款、延期提款定期貸款及循環貸款設施分別有 75.0 百萬元、19.0 百萬元及 1.0 百萬元的未償還貸款。延遲抽款定期貸款的終止日期為 2024 年 6 月 21 日，在任何承諾的金額仍未提取的範圍內。截至 2024 年 6 月 30 日，延期提款定期貸款及循環貸款設施分別為 6.0 百萬元及 4.0 百萬元仍未抽取。在 2024 年 6 月 30 日和 2023 年 12 月 31 日，未來債務到期為 90.8 萬美元（包括下面討論的退出費）。門羅信貸下的所有信用設施
艾米利亞控股公司及其附屬公司
基本報表附註
(未經查核)
協議到期日為2027年12月21日，除非優先股東在該日之前行使贖回權，否則所有金額將在該時全部應付給monroe capital，或者我們違反條款且沒有豁免。
長期貸款設施採用根據紐約聯邦儲備銀行管理的擔保隔夜融資利率（“SOFR”）的變動利率，加上相應的利差和月度定期利率調整，截至2024年6月30日和2023年12月31日，分別為14.6%的利率。
與執行monroe capital信贷协议相关的贷款费和第三方债务发行成本总额为$760萬。公司还将承担1570萬的退出费用，该费用将在信贷协议下债务被全额偿还时或其他日期时支付给monroe capital。此外，monroe capital免费获得了购买公司A-2优先股系列股票的认股权，认股数量相当于债务承诺总额的7.5%。上述全部金额，总计$2620萬，均被视为与每个信贷设施相关的已资本化债务发行成本，并根据每个设施的承诺金额相对于总承诺额$10500萬的比例分配给定期贷款设施、延迟提款贷款设施和循环贷款设施。公司使用一种近似有效利率方法在相关融资期内摊销递延融资成本。
除了上述設定的利率期貨之外，在轉換日期前，每筆貸款將按年1%的利率累積利息（“PIk Rate”），累計金額將於每個日曆月的最後一個業務日以分期方式支付，從2022年12月31日結束的月份開始。根據此條款支付的任何利息將被資本化並添加到該未清償本金金額。截至2024年6月30日，公司已累計120萬美元與實物支付的利息相關。
跨所有三個信貸業務的債務發行成本攤銷金額分別為截至2024年6月30日和2023年分別為約190萬和170萬美元，並反映在綜合損益簡表中，與利息費用一同。與Monroe信貸協議相關的利息費用分別為截至2024年6月30日和2023年分別為760萬和560萬美元，記錄在綜合損益簡表中。
The Borrower shall repay the principal amount of the Term Loan Facility on the last business day of each quarter, beginning with the first fiscal quarter ending after the Conversion Date, in an amount equal to the product of (A) the original funded principal amount and (B) 0.25%. The loans are subject to mandatory prepayment upon receipt of certain proceeds, or excess cash flows, as defined, after the Conversion Date.
Under the terms of the relevant financing agreements with Monroe, the Company has granted Monroe a security interest in substantially all assets of the Company. In addition, the Company has pledged 100% of the stock and/or equity interests of the following companies: Amelia Holding II LLC, Amelia Holding I LLC, Amelia US LLC, IPsoft Government Solutions, LLC, and Amelia NL BV.
The Monroe Credit Agreement also has an acceleration clause relating to a change in control in which the Preferred Stockholder would no longer exercise the same voting and other protective provisions as established as of December 21, 2022. In addition, if the Preferred Stockholder exercised its redemption rights under the Preferred Stock Agreement, as described in Note 11, all amounts due under the Monroe Credit Agreement (including the Exit Fee) would accelerate to Monroe Capital prior to any amounts due to the Preferred Stockholder as a result of exercising the redemption right.
Pursuant to the Monroe Credit Agreement, the Company agreed to certain restrictive covenants, including the following financial covenants:
Recurring Revenue Leverage Ratio
Prior to a conversion date, the Recurring Revenue Leverage Ratio, defined as the ratio of (a) Consolidated Total Debt to (b) Annualized Recurring Revenue as tested on a quarterly basis ranging from a ratio of 1.50 : 1.00 to 0.75 : 1.00 over the life of the debt facilities.
AMELIA HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Minimum Liquidity
Prior to a conversion date, the Monroe Credit Agreement does not permit liquidity at any time to be less than $15,000,000. Liquidity is defined in the agreement as the combination of cash and cash equivalents, and the accessible but unused portion of the Revolving Loan Facility.
Total Net Leverage Ratio
From and after the Conversion Date, the Total Net Leverage Ratio, defined as the ratio of (a) Consolidated Total Debt as of such date minus the aggregate amount of unrestricted cash and Cash Equivalents held as of date in such deposit or securities accounts subject to Control Agreements up to a maximum of $5,000,000 (subject to certain adjustments) to (b) Condensed Consolidated EBITDA on a quarterly basis ranging from a ratio of 7.00 : 1. 00 to 4.00 : 1.00 over the life of the debt facilities.
On June 27, 2024, Monroe Capital exercised its rights under the Monroe Credit Agreement to convert Amelia Holdings II, LLC, the legal borrower and direct subsidiary through which the Company manages all other subsidiaries, from a member managed company to a manager managed company, appointing an independent manager.
On July 8, 2024, Monroe Capital and the Company entered a forbearance agreement such that the financial covenants described above are temporarily suspended through August 15, 2024, and access and ability to draw on the Revolving Loan Facility was confirmed. As part of the agreement, the Company agreed that any draw on the Revolving Loan Facility result in pro-forma cash of no more than $1 million after utilization of the drawn funds. Following the expiration of the forbearance agreement the Company would not likely be in compliance of its covenants and as a result the Company has classified all outstanding debt under the Monroe Credit Agreement as current.
NOTE 6. RETIREMENT PLANS
The Company offers defined contribution plans to eligible employees. These plans are offered in the following jurisdictions: US, Australia, Canada, France, Germany, Japan, Netherlands, Norway, Slovakia, Spain, Sweden, and the UK. The Company has no additional liability beyond its contributions. The participants in the plan can direct their contributions to numerous investment options. The Company’s contribution cost for the six months ended June 30, 2024 and 2023 amounted to $0.6 million and $0.9 million, respectively, and is included within the condensed consolidated statements of operations and comprehensive loss.
The Company is statutorily required to provide post-employee benefits for eligible employees in India. The annual cost of these benefits is based upon a specific actuarial computation which is followed consistently. The overall financial impact to the Company’s financial position, operations, and cash flows of this plan is immaterial.
NOTE 7. INCOME TAXES
The tax expense and the effective tax rate were as follows (in thousands):
| Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | ||||||||||
| Loss before provision for income taxes | $ | (19,383) | $ | (30,412) | |||||||
| Income tax expense | 123 | 231 | |||||||||
| Effective tax rate | (0.63)% | (0.76)% | |||||||||
The Company’s recorded effective tax rate differs from the U.S. statutory rate primarily due to an increase in the domestic valuation allowance caused by tax losses, foreign withholding taxes, foreign tax rate differentials from the U.S. domestic statutory tax rate and tax benefit resulting from acquisition.
AMELIA HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
NOTE 8. COMMITMENTS AND CONTINGENCIES
Litigation and Legal Proceedings
The Company accrues contingent liabilities, including estimated legal costs, when the obligation is probable, and the amount is reasonably estimable. As facts concerning contingencies become known, the Company reassesses its position and makes appropriate adjustments to the condensed consolidated financial statements. Estimates that are particularly sensitive to future changes include those related to tax, legal and other regulatory matters, changes in interpretation and enforcement of international laws, and the impact of local economic conditions and practices, which are all subject to change as events evolve and as additional information becomes available during the administrative and litigation process.
As of June 30, 2024, the Company was involved in litigation arising in the normal course of business that is pending. The results of the proceedings are not expected to have a material adverse effect on the Company’s condensed consolidated financial position or results of operations and comprehensive loss. Actual outcomes of these legal and regulatory proceedings may differ materially from our current estimates. It is possible that resolution of one or more of the legal matters currently pending or threatened could result in losses material to our condensed consolidated results of operations, liquidity, or financial condition.
NOTE 9. RELATED-PARTY TRANSACTIONS
In connection with the Amelia Business Combination, the Successor and Predecessor entities entered into a transition service agreement to support the provision by the Successor entity of customer support services within the United Kingdom and Germany as well as certain administrative services related to the collection of trade receivables on behalf of the Predecessor entity. As of June 30, 2024 and December 31, 2023, $0.9 million and $1.4 million, respectively, was accrued related to these activities and is presented as due to related party on the condensed consolidated balance sheets.
Employee loans totaled $472 thousand as of June 30, 2024 and December 31, 2023, respectively, and were recorded as employee loans receivable on the condensed consolidated balance sheets.
NOTE 10. FAIR VALUE MEASUREMENT
The following table presents the fair value of the Company's financial instruments that are measured or disclosed at fair value on a recurring basis:
| June 30, 2024 | |||||||||||||||||
| Level 1 | Level 2 | Level 3 | |||||||||||||||
| Liabilities: | |||||||||||||||||
Warrant Liability | $ | — | $ | — | $ | 5,424 | |||||||||||
Total liabilities | $ | — | $ | — | $ | 5,424 | |||||||||||
AMELIA HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
| December 31, 2023 | |||||||||||||||||
| Level 1 | Level 2 | Level 3 | |||||||||||||||
| Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
| Treasury bills | $ | 10,068 | $ | — | $ | — | |||||||||||
| Total assets | $ | 10,068 | $ | — | $ | — | |||||||||||
| Liabilities: | |||||||||||||||||
Contingent Value Right | $ | — | $ | — | $ | 9,667 | |||||||||||
Warrant Liability | — | — | 4,640 | ||||||||||||||
Total liabilities | $ | — | $ | — | $ | 14,307 | |||||||||||
NOTE 11. STOCKHOLDERS’ EQUITY
Authorized and issued capital of the Company consists of:
Common Stock
The Company is authorized to issue 253,933,170 shares of Common Stock, of which 153,933,170 shares have been designated Class A Common Stock, $0.001 par value per share, none of which are issued and outstanding as of June 30, 2024 and 2023.
On December 21, 2022, 100,000,000 shares have been designated Class B Common Stock, $0.001 par value per share, 100,000,000 shares of which are issued and outstanding on June 30, 2024 and December 31, 2023.
Shares of Class A Common Stock and Class B Common Stock have the same rights and powers, rank equally; provided that the voting, dividend and liquidation rights of the holders of the Common Stock are subject to and qualified by the rights, powers and preferences of the holders of the Preferred Stock, as described below.
Each share of Class B Common Stock shall be automatically, without further action by the holder thereof, converted into one (1) fully paid and non-assessable share of Class A Common Stock, upon (i) the occurrence of a transfer of such share of Class B Common Stock or (ii) an initial public offering (“IPO”).
As described in Note 1, the Common Stockholder has the right, but not the obligation, to redeem all shares of Senior Series A Preferred Stock held at a per share purchase price equal to the 175% of the applicable stated value then in effect with respect to such share of Series A Preferred Stock on the one-year anniversary of the issuance date (Common Stockholder Call Option). Pursuant to agreement the call option closing date shall occur no later than 90 days from the date of the call notice. The Common Stockholder exercised the call option at the one-year anniversary date and the closing failed to occur within the 90 day period and as such the call right of the Common Stockholder Call Option terminated on March 31, 2024.
Preferred Stock
The Company is authorized to issue 16,034,483 shares of Preferred Stock, of which 3,654,170 shares have been designated Series A-1 Preferred Stock, 4,126,771 shares have been designated Series A-2 Preferred Stock, 4,126,771 shares have been designated Series A-3 Preferred Stock (together, “Senior Series A Preferred Stock”) and 4,126,771 shares have been designated Series A-4 Preferred Stock, $0.001 par value per share. On December 21, 2022, 3,654,170 series A-1 Preferred Stock shares and 4,126,771 Series A-2 Preferred Stock shares were issued and are held by one shareholder (Build Group), which are outstanding at June 30, 2024 and December 31, 2023. There are no shares of A-3 Preferred Stock outstanding at June 30, 2024 and December 31, 2023. On June 30, 2024, the CVR was converted to 3,765,280 shares of Series A-4 Preferred Stock.
AMELIA HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Preferred Stock shares are convertible into class A common shares at a conversion price equal to the stated value per share of Series A Preferred Stock (initial stated value of Series A Preferred Stock is $9.6928). The conversion price is subject to adjustment based on issuance of additional shares of Class A common stock for no consideration or consideration per share less than the applicable conversion price. The conversion price is also subject to adjustment for standard anti-dilution provisions, and potential adjustment based on an effective offering price underlying an initial public offering. The shares may become mandatorily convertible upon the closing of a qualified public offering.
The preferred stock do not have a mandatory redemption date and are assessed at issuance for classification and redemption features requiring bifurcation. The Company presents as temporary equity any stock which (i) the Company undertakes to redeem at a fixed or determinable price on the fixed or determinable date or dates; (ii) is redeemable at the option of the holders, or (iii) has conditions for redemption which are not solely within the control of the Company, as described below.
The Senior Series A Preferred Stock has the right, but not the obligation, to put the Senior Series A Preferred Stock held back to the Company at a per share purchase price equal to the 175% of the applicable stated value then in effect with respect to such share of Senior Series A Preferred Stock on the one-year anniversary of the issuance date (initial redemption) or to put all shares of Senior Series A Preferred Stock held at a per share purchase price equal to the 300% of the applicable stated value then in effect with respect to such share of Senior Series A Preferred Stock beginning on the fourth anniversary of the issuance date (full redemption). The holders of the Series A Preferred Stock did not exercise their put option at the one-year anniversary date of the Series A Preferred Stock issuance date.
The redeemable convertible preferred stock is redeemable at the option of the holders or upon a deemed liquidation event which the Company determined is not solely within its control and thus has classified shares of redeemable convertible preferred stock as temporary equity until such time as the conditions are removed or lapse. When redemption is considered probable, the Company recognizes changes in the redemption value immediately as they occur and adjusts the carrying amount of the instrument to equal the redemption value at the end of each reporting period. For the period ended June 30, 2024, the Company recognized $13.7 million in accretion of preferred stock to redemption value within mezzanine equity on the consolidated balance sheet.
Pursuant to the election of the Senior Series A Preferred Stockholders to exercise either the initial or full redemption, the Common Stockholder has the right, but not the obligation, to redeem all shares of Senior Series A Preferred Stock held at a per share purchase price equal to the 175% of the applicable stated value then in effect with respect to such share of Series A Preferred Stock on the one-year anniversary of the issuance date (initial redemption) or to redeem all shares of Series A-1, A-2 or A-3 Preferred Stock held at a per share purchase price equal to the 300% of the applicable stated value then in effect with respect to such share of Series A Preferred Stock beginning on the fourth anniversary of the issuance date (full redemption).
The Series A-4 shares may be redeemed beginning on the fifteenth anniversary of their issuance date based on the original issuance price of those Series A-4 shares.
Dividends for Senior Series A Preferred Stock compound annually and accrue at the rate per annum of eleven percent (11%) of the stated value of such share then in effect. Dividends accrue daily and are cumulative. Dividends are automatically deemed to be paid in kind, and the stated value with respect to each share of Senior Series A Preferred Stock is correspondingly increased by the accruing dividend, on a daily basis, and will not be paid by the Company in cash or in Common Stock. For the six months ended June 30, 2024, the stated value of the Senior Series A Preferred Stock increased by $4.6 million because of the accruing dividend.
The holders of the Series A-4 Preferred Stock are entitled to receive, on a pari passu basis with the holders of the Common Stock, when, as, and if declared by the Board, out of any assets of the Corporation legally available therefore, such dividends as may be declared from time to time by the Board.
AMELIA HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Voting Rights
Each holder of Class A Common Stock has the right to one (1) vote per share of Class A Common Stock held of record by such holder and each holder of Class B Common Stock has the right to ten (10) votes per share of Class B Common Stock held of record by such holder.
Each holder of outstanding shares of Senior Series A Preferred Stock is entitled to cast the number of votes equal to the number of whole shares of Class A Common Stock into which the shares of Senior Series A Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Holders of Senior Series A Preferred Stock vote together with the holders of Common Stock as a single class and on an as converted to Class A Common Stock basis.
Each holder of outstanding shares of Series A-4 Preferred Stock shall have no voting right on any matter presented to the stockholders of the Company.
Right to Receive Liquidation Distribution
In the event of liquidation, dissolution or winding up of the Company, after the satisfaction of all amounts due under the Monroe Credit Agreement, holders of the Senior Series A Preferred Stock will be eligible for preferential payment out of the assets of the Company over the holders of the other share classes.
2024 Equity Incentive Plan
In January 2024, the Company instituted and adopted the 2024 Equity Incentive Plan (the 2024 Plan) whereby the Company may grant equity-based incentive awards to its employees, directors and consultants pursuant to the 2024 Plan. A total of 22,470,959 shares of the Company’s Class A Common Stock is reserved for sale and issuance under the 2024 Plan. In April 2024, pursuant to the 2024 Plan, the Company issued options to purchase 12,301,329 shares of the Common A shares of the Company with a strike price of $0.40 per share, and four-year vesting. The Company recorded $0.2 million in stock-based compensation expense for the six months ended June 30, 2024.
Common Stock Warrants
In connection with the conversion of the convertible promissory note to Series A-1 Preferred Stock and the purchase of Series A-2 Preferred Stock, the Company issued 8,804,870 of Common Stock warrants, $0.001 par value per share, which expire on December 31, 2032, to the Series A-1 Stockholder. The number of Common Stock warrants may increase by up 745,288 shares to 9,550,158 in total in the event that, and in proportion with, Series A-3 or Series A-4 Preferred Stock are subsequently issued. The Common Stock warrants each have an exercise price of $9.6928 per share, subject to certain adjustments, and may be exercised in whole or in part at any time prior to December 21, 2032, including on a cash or cashless exercise basis.
As of June 30, 2024, and there were 8,804,870 Common Stock warrants outstanding.
The Common Stock warrants are classified within warrant liabilities on the condensed consolidated balance sheet as of June 30, 2024 and were valued using an option pricing model. Changes in fair value are recognized through earnings within other income (expense), net on the condensed consolidated statements of operations and comprehensive loss.
The following is a roll forward of the Common Stock warrants measured at fair value on a recurring basis using unobservable inputs (Level 3):
| Balance on December 31, 2023 | $ | 1,057 | |||
| Change in fair value | (1,028) | ||||
| Balance on June 30, 2024 | $ | 29 | |||
AMELIA HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The significant unobservable inputs used in the fair value measurement of the Common Stock warrants are the expected term and volatility rate. Significant increases (decreases) in the expected term would result in significantly lower (higher) fair value measurements. Significant increases (decreases) in the expected volatility would result in significantly higher (lower) fair value measurements.
As part of the Monroe Credit Agreement, Monroe received 812,458 Series A-2 Preferred Stock warrants having a ten-year term that expires on December 21, 2032. The number of Series A-2 Preferred Stock shares that may be issued upon exercise is subject to increase based on adjustment to reduce the exercise price per share. The exercise price is equal to the lower of (a) the initial stated value of Series A Preferred Stock of $9.6928 per share and (b) 80% of the lowest price per share at which (i) the preferred equity of the Company is sold in the Company’s most recent Equity Financing (as defined in the preferred warrant agreement) or (ii) the common stock of the Company is being purchased in an Acquisition (as defined in the preferred warrant agreement). The Series A-2 Preferred Stock Warrants may be exercised in whole or in part at any time prior to December 21, 2032, including on a cash or cashless exercise basis.
All Series A-2 Preferred Stock warrants remain unexercised and outstanding as of June 30, 2024, and there were 812,458 Preferred Stock warrants outstanding as of June 30, 2024.
The Series A-2 Preferred Stock warrants were valued using a Monte-Carlo valuation method and recorded as warrant liabilities on the condensed consolidated balance sheet. Changes in fair value are recognized through earnings within other income (expense), net on the condensed consolidated statements of operations and comprehensive loss.
The following is a roll forward of the Series A-2 Preferred Stock warrants measured at fair value on a recurring basis using unobservable inputs (Level 3):
| Balance on December 31, 2023 | $ | 3,583 | |||
| Change in fair value | 1,812 | ||||
| Balance on June 30, 2024 | $ | 5,395 | |||
The significant unobservable inputs used in the fair value measurement of the Preferred Stock warrants are the expected term and volatility rate. Significant increases (decreases) in the expected term would result in significantly lower (higher) fair value measurements. Significant increases (decreases) in the expected volatility would result in significantly higher (lower) fair value measurements.
NOTE 12. SUBSEQUENT EVENTS
In accordance with ASC 855, Subsequent Events, the Company evaluated subsequent events through October 22, 2024, the date these condensed consolidated financial statements were available to be issued.
On August 6, 2024, SoundHound AI, Inc. (“SoundHound”) completed its acquisition of all the issued and outstanding shares of the Company pursuant to the stock purchase agreement by and among SoundHound, IPSoft Global Holdings, Inc., and BuildGroup, LLC. As a result of the acquisition, awards granted under the 2024 Plan were cancelled in exchange for no consideration.
Concurrent with the acquisition, the Company entered into a Second Amendment to the Monroe Credit Agreement and SoundHound paid $70 million to retire a majority of the Monroe Term Loan leaving a remaining balance of $39.69 million with a maturity date of June 30, 2026.