Symbotic Inc. quarterly report, Q3 FY2021

Filing summary

Important identity caveat: Although the request identifies Symbotic Inc., the supplied Form 10-Q is for SVF Investment Corp. 3 (ticker SVFC), a Cayman Islands blank-check company. It does not report Symbotic’s operating results. The filing covers the quarter ended September 30, 2021; financial statements are unaudited.

Business context and reporting period

SVF Investment Corp. 3 was formed to pursue a business combination and had not commenced operations or identified a target as of September 30, 2021. It completed its IPO on March 11, 2021, raising $320.0 million gross, and raised another $10.4 million through a private placement. Its combination deadline was March 11, 2023.

Financial results and liquidity

MetricThree months ended September 30, 2021Nine months ended September 30, 2021
RevenueNone reportedNone reported
General and administrative expense$1.95 million$4.99 million
Trust investment income$4,916$10,848
Net loss$1.95 million$4.98 million
Basic and diluted loss per share, Class A and B$0.05$0.15

At September 30, cash outside the trust was $2.71 million; trust investments were $320.01 million. Current assets were $3.79 million and current liabilities $4.65 million, resulting in a working-capital deficit of approximately $858,000. Total liabilities were $15.85 million, including $11.2 million of deferred underwriting commissions payable only if a business combination closes. Shareholders’ deficit was $12.05 million; 32 million public Class A shares, valued at $320 million, were classified as temporary equity subject to redemption.

Operating cash use was $1.49 million for the nine months. Investing cash use of $320 million reflected deposits into the trust; financing cash inflow was $324.20 million, principally from the IPO and private placement. Profit margins are not applicable because the company had no operating revenue.

Changes, outlook, risks, and unusual items

  • The filing provides no prior-year comparable operating results; the company was formed in December 2020. Its September 2021 balance sheet can be compared with December 31, 2020, when cash was zero and total assets were $132,904.
  • The company revised its accounting for redeemable public shares following SEC guidance. The adjustment increased accumulated deficit by approximately $7.7 million, reduced additional paid-in capital by approximately $5.1 million, and reclassified shares to temporary equity. Management said the errors in previously issued statements were not material to those statements, but the cumulative correction materially affected current-period statements.
  • Management reported disclosure controls were ineffective as of September 30, 2021, due solely to the initial accounting for redeemable shares. It identified a material weakness and described planned remediation, while noting there was no assurance those measures would be effective.
  • Management believed available working capital and borrowing capacity would cover needs through a business combination or one year from the filing. A $2.0 million sponsor working-capital loan commitment was agreed in August; on November 9, 2021, after quarter-end, the commitment was increased by $1.0 million. No working-capital loan balance was outstanding at September 30.
  • The company noted COVID-19 could adversely affect its financial position, operations, or target search, but the potential impact was not determinable. No legal proceedings or off-balance-sheet arrangements were reported.
  • A forward-purchase agreement contemplated $150 million of shares at $10 each, with an option for up to an additional $50 million, in connection with a business combination; proceeds were contingent on closing.

Key facts investors should verify

  • Confirm the filing belongs to SVF Investment Corp. 3, not Symbotic Inc., before using it for Symbotic analysis.
  • Review the redeemable-share accounting revision, material weakness, and status of remediation.
  • Assess accessible cash outside the trust, the working-capital deficit, sponsor loan commitment, and related-party amounts due.
  • Verify any subsequent business-combination developments, redemptions, and whether the forward-purchase financing is ultimately funded.