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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________________
FORM 10-Q
_____________________________________________
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from     to
Commission file number 001-39535
SHARECARE, INC.
(Exact name of registrant as specified in its charter)
Delaware 85-1365053
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer Identification No.)
255 East Paces Ferry Road NE, Suite 700
Atlanta, Georgia
30305
(Address of Principal Executive Offices)(Zip Code)
(404) 671-4000
(Registrant's telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001 per shareSHCRThe Nasdaq Stock Market LLC
Warrants, each warrant exercisable for one share of common stock, each at an exercise price of $11.50 per shareSHCRWThe Nasdaq Stock Market LLC
    Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated fileroAccelerated filero
Non-accelerated filerxSmaller reporting companyx
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x
As of November 8, 2022, there were 353,520,001 shares of the registrant’s common stock, par value $0.0001 per share, outstanding.


Table of Contents
Sharecare, Inc.
Table of Contents
Page
i

Table of Contents
Part I - Financial Information
ITEM 1. FINANCIAL STATEMENTS
SHARECARE, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
As of September 30,
2022
As of December 31,
2021
Assets
Current assets:
Cash and cash equivalents$202,564 $271,105 
Accounts receivable, net (net of allowance for doubtful accounts of $6,840 and $6,212, respectively)
99,660 103,256 
Other receivables 2,445 5,327 
Prepaid expenses12,300 8,819 
Other current assets2,287 2,459 
Total current assets319,256 390,966 
Property and equipment, net5,404 4,534 
Other long-term assets29,348 12,173 
Intangible assets, net165,538 155,086 
Goodwill191,136 192,442 
Total assets$710,682 $755,201 
Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity
Current liabilities:
Accounts payable$12,208 $27,155 
Accrued expenses and other current liabilities (Note 4)63,760 51,653 
Deferred revenue11,007 11,655 
Contract liabilities, current2,026 4,597 
Debt, current (Note 8)943  
Total current liabilities89,944 95,060 
Contract liabilities, noncurrent384 1,745 
Warrant liabilities4,186 10,820 
Long-term debt (Note 8) 419 
Other long-term liabilities21,775 24,116 
Total liabilities116,289 132,160 
Commitments and contingencies (Note 11)
Series A redeemable convertible preferred stock, $0.0001 par value; 5,000,000 shares authorized; 5,000,000 shares issued and outstanding, aggregate liquidation preference of $50,000 as of September 30, 2022 and December 31, 2021
58,205 58,205 
Stockholders’ equity:
Common stock $0.0001 par value; 600,000,000 and 600,000,000 shares authorized; 353,441,847 and 345,788,707 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively
35 35 
Additional paid-in capital1,110,803 1,042,164 
Accumulated other comprehensive loss(4,166)(2,061)
Accumulated deficit(571,696)(477,113)
Total Sharecare stockholders’ equity534,976 563,025 
Noncontrolling interest in subsidiaries1,212 1,811 
Total stockholders’ equity536,188 564,836 
Total liabilities, redeemable convertible preferred stock and stockholders’ equity$710,682 $755,201 

The accompanying notes are an integral part of these consolidated financial statements.
1

Table of Contents
SHARECARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(In thousands, except share and per share amounts)

Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Revenue$114,619 $105,618 $319,153 $294,279 
Costs and operating expenses:
Costs of revenue (exclusive of depreciation and amortization below)60,322 51,255 165,052 144,283 
Sales and marketing12,032 12,492 40,698 36,047 
Product and technology17,136 16,334 54,237 52,600 
General and administrative38,552 46,307 138,041 85,060 
Depreciation and amortization12,053 8,751 32,831 22,601 
Total costs and operating expenses140,095 135,139 430,859 340,591 
Loss from operations(25,476)(29,521)(111,706)(46,312)
Other income (expense):
Interest income319 20 450 49 
Interest expense(548)(12,836)(1,579)(26,941)
Loss on extinguishment of debt (1,148) (1,148)
Other income (expense)(2,382)(86)17,290 (20,815)
Total other income (expense)(2,611)(14,050)16,161 (48,855)
Loss before income tax benefit(28,087)(43,571)(95,545)(95,167)
Income tax benefit627 507 265 520 
Net loss(27,460)(43,064)(95,280)(94,647)
Net (loss) income attributable to noncontrolling interest in subsidiaries(103)51 (697)(31)
Net loss attributable to Sharecare, Inc.$(27,357)$(43,115)$(94,583)$(94,616)
Net loss per share attributable to common stockholders, basic and diluted $(0.08)$(0.13)$(0.27)$(0.36)
Weighted-average common shares outstanding, basic and diluted349,615,224 334,982,150 347,232,210 263,558,268 
Net loss$(27,460)$(43,064)$(95,280)$(94,647)
Other comprehensive loss adjustments:
Foreign currency translation(1,032)(741)(2,007)(1,112)
Comprehensive loss(28,492)(43,805)(97,287)(95,759)
Comprehensive loss attributable to noncontrolling interest in subsidiaries(139)(119)(599)(117)
Comprehensive loss attributable to Sharecare, Inc.$(28,353)$(43,686)$(96,688)$(95,642)

The accompanying notes are an integral part of these consolidated financial statements.
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SHARECARE, INC.
CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited)
(In thousands, except share amounts)

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)
SharesAmountSharesAmount
Balance at December 31. 2021$ 5,000,000 $58,205 345,788,707$35$1,042,164 $(2,061)$(477,113)$1,811 $564,836 
Stock options exercised— — — 2,414,9862,337 — — — 2,337 
Common stock issued upon vesting of restricted stock units— — — 73,617— — — — — 
Issuance of warrants in connection with debt and revenue arrangements— — — 19 — — — 19 
Issuance of stock for WhitehatAI earnout— — — 132,587— — — — — 
Issuance of stock for doc.ai escrow shares— — — 677,680— — — — — 
Share-based compensation— — — 33,681 — — — 33,681 
Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — — — (98)(98)
Currency translation adjustment— — — — (69)— 300 231 
Net income (loss) attributable to Sharecare, Inc.— — — — — (38,201)— (38,201)
Other— — — (5,097)— — — — — — 
Balance at March 31. 2022$ 5,000,000 $58,205 349,082,480 $35 $1,078,201 $(2,130)$(515,314)$2,013 $562,805 
Stock options exercised— — — 2,497,1882,658 — — — 2,658 
Common stock issued upon vesting of restricted stock units— — — 346,698— — — — — 
Issuance of warrants in connection with debt and revenue arrangements— — — 14 — — — 14 
Share-based compensation— — — 18,558 — — — 18,558 
Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — — — (496)(496)
Currency translation adjustment— — — — (1,040)— (166)(1,206)
Net income (loss) attributable to Sharecare, Inc.— — — — — (29,025)— (29,025)
CareLinx working capital adjustment— — — (659)— — — (659)
Balance at June 30, 2022$ 5,000,000 $58,205 351,926,366 $35 $1,098,772 $(3,170)$(544,339)$1,351 $552,649 
Stock options exercised— — — 1,301,6501,315 — — — 1,315 
Common stock issued upon vesting of restricted stock units— — — 306,326— — — — — 
Issuance of warrants in connection with debt and revenue arrangements— — — 14 — — — 14 
Share-based compensation— — — 10,702 — — — 10,702 
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Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — — — (103)(103)
Currency translation adjustment— — — — (996)— (36)(1,032)
Net income (loss) attributable to Sharecare, Inc.— — — — — (27,357)— (27,357)
CareLinx working capital adjustment— — — (92,495)— — — — — — 
Balance at September 30, 2022$ 5,000,000 $58,205 353,441,847 $35 $1,110,803 $(4,166)$(571,696)$1,212 $536,188 

The accompanying notes are an integral part of these consolidated financial statements.





























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SHARECARE, INC.
CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited)
(In thousands, except share amounts)

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)
SharesAmountSharesAmount
Balance at December 31. 2020$4,000  $ 217,106,957 $22 $377,134 $(702)$(392,113)$2,203 $(13,456)
Stock options exercised— — — 1,425,1001,375 — — — 1,375 
Issuance of common stock for doc.ai acquisition— — — 8,435,301181,292 — — — 81,293 
Issuance of warrants in connection with debt and revenue arrangements— — — 39 — — — 39 
Conversion of warrants to common shares— — — 672,324645 — — — 645 
Share-based compensation— — — 12,026 — — — 12,026 
Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — (18)— (88)(106)
Currency translation adjustment— — — — (791)— (169)(960)
Net income (loss) attributable to Sharecare, Inc.— — — — — (31,252)— (31,252)
Other— — — — — (988)— — — (988)
Balance at March 31. 2021$4,000  $ 227,639,682 $23 $471,523 $(1,511)$(423,365)$1,946 $48,616 
Stock options exercised— — — 233,372 — 255 — — — 255 
Conversion of Convertible Warrants to common shares— — — 53,658 — 75 — — — 75 
Common stock issued to settle contingent consideration from acquisitions in prior years— — — 1,078,213 — — — — — — 
Share-based compensation— — — — — 2,360 — — — 2,360 
Dissolution of Redeemable NCI for Visualize Health(4,000)— — 895,435 — 4,136 — — (136)4,000 
Issuance of Series D redeemable convertible preferred stock, net of issuance costs and antidilution provisions— 4,453,659 51,754 — — — — — — — 
Net income (loss) attributable to non-controlling interest in subsidiaries— — — — — — — — 24 24 
Currency translation adjustment— — — — — — 353 — 236 589 
Net income (loss) attributable to Sharecare, Inc.       (20,248) (20,248)
Balance at June 30, 2021$ 4,453,659 $51,754 229,900,360 $23 $478,349 $(1,158)$(443,613)$2,070 $35,671 
Stock options exercised— — — 683,463 — 1,121 — — — 1,121 
Issuance of warrants in connection with debt and revenue arrangements— — — — — 22 — — — 22 
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Issuance of stock for doc.ai antidilution provision— — — 1,052,398 — 12,682 — — — 12,682 
Conversion of convertible warrants to common shares— — — 10,921,334 1 10,760 — — — 10,761 
Conversion of convertible notes to common shares— — — 37,695,910 4 136,395 — — — 136,399 
Issuance of stock for Series D antidilution provision— 546,341 6,451 — — — — — — — 
Issuance of common stock for CareLinx acquisition— — — 1,262,475 — 10,348 — — — 10,348 
Business Combination and Private Placement financing, net of issuance costs— — — 57,451,915 6 376,570 — — — 376,576 
Share-based compensation— — — — — 11,130 — — — 11,130 
Net income (loss) attributable to noncontrolling interest in subsidiaries— — — — — — — — 51 51 
Currency translation adjustment— — — — — — (571)— (170)(741)
Net income (loss) attributable to Sharecare, Inc.— — — — — — — (43,115)— (43,115)
Other— — — 66,555 — — — — — — 
Balance at September 30, 2021$ 5,000,000 $58,205 339,034,410 $34 $1,037,377 $(1,729)$(486,728)$1,951 $550,905 

The accompanying notes are an integral part of these consolidated financial statements.
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SHARECARE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands, except share and per share amounts)
Nine Months Ended
September 30,
20222021
Cash flows from operating activities:
Net loss$(95,280)$(94,647)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense32,831 22,601 
Non-cash interest expense733 4,434 
Write-off of deferred financing fees and debt discount 12,063 
Loss on extinguishment of debt 1,148 
Amortization of contract liabilities(3,285)(4,204)
Accretion of contract liabilities660 1,170 
Lease right-of-use assets expense4,587  
Change in fair value of warrant liability and contingent consideration(15,765)21,719 
Share-based compensation61,619 25,516 
Deferred income taxes(708)(479)
Payment of PIK interest (8,903)
Other3,539 (122)
Changes in operating assets and liabilities:
Accounts receivable, net and other receivables1,686 (11,198)
Prepaid expenses and other assets(4,219)(1,157)
Accounts payable and accrued expense(26,539)(8,654)
Operating lease liabilities(1,377) 
Deferred revenue(648)8,856 
Net cash provided by (used in) operating activities(42,166)(31,857)
Cash flows from investing activities:
Acquisition of CareLinx (54,774)
Acquisition of doc.ai (16,784)
Purchases of property and equipment(1,909)(1,898)
Capitalized internal-use software costs(29,915)(23,989)
Net cash used in investing activities(31,824)(97,445)
Cash flows from financing activities:
Proceeds from issuance of redeemable convertible preferred stock 50,000 
Proceeds from issuance of debt 20,000 
Repayment of debt (66,163)
Net proceeds from Reverse Recapitalization with Falcon Capital Acquisition Corp.  426,240 
Proceeds from exercise of common stock options6,310 3,473 
Payments on financing lease obligations(542)(769)
Financing costs in conjunction with the issuance of debt (1)
Net cash provided by financing activities5,768 432,780 
Effect of exchange rates on cash and cash equivalents(319)(166)
Net (decrease) increase in cash and cash equivalents(68,541)303,312 
Cash and cash equivalents at beginning of period271,105 22,603 
Cash and cash equivalents at end of period$202,564 $325,915 
Supplemental disclosure of cash flow information:
Cash paid for interest$836 $19,496 
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Cash paid for income taxes$23 $45 
Non-cash investing and financing activities:
CareLinx working capital adjustment $659 $ 
The accompanying notes are an integral part of these consolidated financial statements.
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Sharecare, Inc.
Notes to Unaudited Consolidated Financial Statements
(Unaudited)

1.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 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;
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Sharecare, Inc.
Notes to Unaudited Consolidated Financial Statements
(Unaudited)

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 September 30, 2022, the Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 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 nine months ended September 30, 2022 and 2021, and Consolidated Statements of Cash Flows for the nine months ended September 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 September 30, 2022, the Company’s consolidated results of operations for the three and nine months ended September 30, 2022 and 2021, and cash flows for the nine months ended September 30, 2022 and 2021. The results of operations for the three and nine months ended September 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, 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.
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Sharecare, Inc.
Notes to Unaudited Consolidated Financial Statements
(Unaudited)

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 September 30, 2021 included certain contract liabilities related to office lease agreements prior to the adoption of ASC 842. Amortization of these contract liabilities for the three months ended September 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 nine months ended September 30, 2022 and 2021 was $3.3 million and $4.2 million, respectively, of which $1.3 million and $1.3 million was included within cost of revenues and $2.0 million and $2.9 million was included in general and administrative expenses in the Consolidated Statements of Operations and Comprehensive Loss, respectively. Additionally, the Company has recognized certain contract liabilities due to a related party in the amount of $22.2 million related to service agreements which are expected to be paid over the approximate five year contract lives.
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 six to twelve months and in advance of the satisfaction of the performance obligations identified within the related contract. As of September 30, 2022 and December 31, 2021, such fees were $11.0 million and $11.7 million, respectively. The Company recognized $0.4 million of revenue during the three months ended September 30, 2022 that was included in deferred revenue at December 31, 2021. The Company recognized $5.6 million of revenue during the nine months ended September 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 September 30, 2022 and December 31, 2021, such fees included within deferred revenue were $4.3 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 six to eight months after the end of a contract year, performance-based fees are reconciled and settled. Approximately $1.4 million and $2.7 million of revenues recognized during the three months ended September 30, 2022 and 2021, respectively, were performance-based. During the three months ended September 30, 2022, no revenue was recognized that related to services provided prior to December 31, 2021.
Approximately $5.8 million and $8.0 million of revenues recognized during the nine months ended September 30, 2022 and 2021, respectively, were performance-based. During the nine months ended September 30, 2022, $1.2 million was recognized in revenue that related to services provided prior to December 31, 2021. As of September 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 $6.5 million and $4.0 million, respectively.
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Sharecare, Inc.
Notes to Unaudited Consolidated Financial Statements
(Unaudited)

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 September 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 $117.3 million. As of September 30, 2022, the Company expects to recognize revenue on approximately 65% of these unsatisfied performance obligations over the following