Ares Acquisition II(AACT) - 2023 Q3 - Quarterly Report

Financial Performance - For the three months ended September 30, 2023, the company reported a net income of $6,400,142, primarily from investment income of$6,784,071, after deducting general and administrative costs of $383,929[101]. - For the nine months ended September 30, 2023, the company achieved a net income of$9,965,778, with investment income totaling $10,657,294 and general and administrative costs of$691,516[101]. Financial Position - As of September 30, 2023, the company had $2,254,493 in its operating bank account and approximately$2.6 million in working capital[102]. - The company has no long-term debt obligations or off-balance sheet arrangements as of September 30, 2023[105]. - As of September 30, 2023, the company has 50,000,000 Class A ordinary shares subject to possible redemption, classified as temporary equity[112]. Administrative Costs - The company has entered into a monthly administrative service fee agreement of $16,667 with its Sponsor for general and administrative services[106]. Contingent Liabilities - A deferred fee of$17,500,000 is payable to underwriters, which will be waived if the company does not complete an initial business combination[107]. - The company has contingent fees of approximately $0.7 million with a service provider, payable only if a Business Combination is consummated[108]. Risk Factors - The company has evaluated the impact of inflation, rising interest rates, and geopolitical events, concluding that these factors could negatively affect its financial position and ability to complete an initial business combination[104]. Regulatory Classification - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[115].