Ault Disruptive Technologies (ADRT) - 2024 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2024, the company reported a net loss of $309,811, compared to a net income of$555,672 for the same period in 2023[111]. - The company had cash used in operating activities of $366,047 for the three months ended March 31, 2024, compared to$335,705 for the same period in 2023[118]. - As of March 31, 2024, the company had an outstanding principal advance balance of $887,743 under a line of credit agreement[116]. - The company held$794,457 in the Trust Account as of March 31, 2024, down from $2,200,308 as of December 31, 2023[117]. - A total of 11,311,125 shares of common stock were tendered for redemption at a per-share price of$10.61, resulting in approximately $120,064,000 being redeemed from the Trust Account[115]. Business Operations - The company has until December 20, 2024, to consummate a business combination, with substantial doubt raised about its ability to continue as a going concern if not completed by this date[109]. - The company intends to use substantially all funds held in the Trust Account to complete its initial business combination[118]. - The company has engaged in substantive discussions with a significant number of business combination targets but has not selected a specific target[107]. - The company has no long-term debt or capital lease obligations, but incurs a monthly fee of$10,000 for office space and administrative services[122]. - The underwriters of the IPO are entitled to a deferred fee of $3,450,000, which will be waived if a business combination is not completed[123]. Regulatory and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain exemptions from reporting requirements[124]. - The company has not opted out of the extended transition period for new or revised financial accounting standards, which may affect comparability with other public companies[125]. - As of December 31, 2023, the company reported no dilutive securities, resulting in diluted loss per share being the same as basic loss per share[128]. - The company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks[129]. - The Public Warrants and Private Placement Warrants issued in connection with the IPO were classified as equity instruments[130]. Internal Controls and Legal Matters - There were no changes to the internal control over financial reporting during the fiscal quarter ended March 31, 2024, that materially affected the internal control[138]. - The company has no material litigation, arbitration, or governmental proceedings currently pending against it or its management team[140].