Grid Dynamics(GDYN) - 2019 Q1 - Quarterly Report

PART 1 – FINANCIAL INFORMATION Financial Statements This section presents ChaSerg Technology Acquisition Corp.'s unaudited condensed financial statements for Q1 2019, detailing balance sheets, operations, equity changes, cash flows, and related notes Condensed Balance Sheets Total assets were $223.4 million, primarily trust account cash, with $8.4 million liabilities and $209.9 million redeemable common stock Condensed Balance Sheet Highlights (unaudited) | Account | March 31, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Assets | | | | Cash | $873,508 | $1,011,224 | | Cash and marketable securities held in Trust Account | $222,335,061 | $221,158,467 | | Total Assets | $223,381,062 | $222,364,173 | | Liabilities & Equity | | | | Total Liabilities | $8,441,775 | $8,145,120 | | Common stock subject to possible redemption | $209,939,280 | $209,219,050 | | Total Stockholders' Equity | $5,000,007 | $5,000,003 | Condensed Statement of Operations For Q1 2019, the company reported $720,234 net income, driven by $1.3 million in trust account interest, offsetting expenses and taxes Statement of Operations Summary (Three Months Ended March 31, 2019) | Item | Amount | | :--- | :--- | | Interest earned on marketable securities held in Trust Account | $1,299,931 | | General and administrative expenses | ($317,211) | | Provision for income taxes | ($262,486) | | Net income | $720,234 | | Basic and diluted income per share, Class A | $0.04 | Condensed Statement of Changes in Stockholders' Equity Total stockholders' equity remained stable at $5.0 million, as net income was offset by changes in redeemable common stock value - Net income for the period was $720,234[15] - A change in the value of common stock subject to possible redemption of ($720,230) was recorded, offsetting the net income[15] Condensed Statement of Cash Flows Net cash used in operations was $261,053, offset by $123,337 from investing, resulting in a $137,716 net cash decrease Cash Flow Summary (Three Months Ended March 31, 2019) | Activity | Amount | | :--- | :--- | | Net cash used in operating activities | ($261,053) | | Net cash provided by investing activities | $123,337 | | Net Change in Cash | ($137,716) | | Cash – End of period | $873,508 | Notes to Condensed Financial Statements Notes detail the company's SPAC status, IPO proceeds, related party transactions, deferred fees, and going concern uncertainty - The Company is a special purpose acquisition company (SPAC) formed to effect a business combination, with an intended focus on the technology industry[20][21] - The Company has until April 9, 2020 (the "Combination Period") to consummate a Business Combination, or it will be required to liquidate[33] - Management has determined that the mandatory liquidation requirement raises substantial doubt about the Company's ability to continue as a going concern[39] - The Sponsor and Cantor purchased an aggregate of 640,000 Placement Units at $10.00 per unit in private placements[24][26][60] - The company pays an affiliate of the Sponsor $15,000 per month for office space, utilities, and administrative support[68] - Underwriters are entitled to a deferred fee of $7,700,000, payable from the Trust Account only upon the completion of a Business Combination[71] Management's Discussion and Analysis of Financial Condition and Results of Operations The blank check company reported $720,234 net income from trust account interest, with $873,508 cash for working capital - The company is a blank check company formed to effect a business combination and has not engaged in any operations or generated any revenues to date[92][96] Q1 2019 Financial Results Summary | Item | Amount | | :--- | :--- | | Net Income | $720,234 | | Interest Income (Trust Account) | $1,299,931 | | Operating Costs | $317,211 | | Provision for Income Taxes | $262,486 | - Following its IPO and over-allotment exercise, a total of $220,000,000 was placed in the Trust Account[101] - As of March 31, 2019, the company had $873,508 in cash held outside the Trust Account for working capital purposes[98] - The Sponsor or its affiliates may loan the company up to $1,500,000 for working capital, which may be convertible into units at $10.00 per unit[106] Quantitative and Qualitative Disclosures about Market Risk The company's market risk is minimal due to short-term U.S. government treasury investments in the Trust Account, limiting interest rate exposure - The net proceeds from the IPO held in the Trust Account are invested in U.S. government treasury bills with a maturity of 180 days or less[112] - Due to the short-term nature of these investments, the company believes there is no material exposure to interest rate risk[112] Controls and Procedures Management concluded disclosure controls and procedures were effective as of March 31, 2019, with no material changes to internal controls during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2019[114] - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[115] PART II – OTHER INFORMATION Legal Proceedings The company reported no legal proceedings - The company has no legal proceedings to report[118] Risk Factors No material changes to risk factors previously disclosed in the Annual Report on Form 10-K were reported - As of the date of this report, there have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K[119] Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities or use of proceeds were reported - None reported[120] Defaults Upon Senior Securities No defaults upon senior securities were reported - None reported[121] Mine Safety Disclosures This item is not applicable to the company - Not applicable[122] Other Information No other information was reported - None reported[123] Exhibits This section lists exhibits filed with the 10-Q, including CEO/CFO certifications and XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Sarbanes-Oxley Act Sections 302 and 906, and XBRL Instance Documents[126]