Financial Performance - The company reported a net loss of approximately $0.7 million for the three months ended June 30, 2023, compared to a net income of approximately $2.7 million for the same period in 2022[138]. - For the six months ended June 30, 2023, the company had a net loss of approximately $1.6 million, while for the same period in 2022, it reported a net income of approximately $3.9 million[139]. - As of June 30, 2023, the company had approximately $0.1 million in its operating bank account and a working capital deficit of approximately $7.7 million[140]. - As of June 30, 2023, the company had approximately $0.1 million in the operating bank account, raising substantial doubt about its ability to continue as a going concern for the next 12 months[153]. IPO and Trust Account - The company completed its IPO on January 14, 2021, raising gross proceeds of $240 million from the sale of 24,000,000 units at an offering price of $10.00 per unit[132]. - Following the IPO, the company had an aggregate amount of $276 million of net proceeds deposited in its trust account[133]. - On December 23, 2022, shareholders redeemed approximately 25,132,578 shares for a pro rata portion of approximately $253.6 million from the trust account, equating to approximately $10.09 per share[135]. - Following redemptions, 2,000,026 IPO shares remained outstanding after the July 11, 2023 stockholder vote[166]. Business Combination and Extensions - The company has until January 14, 2024, to complete a business combination, or it will cease operations and liquidate[134]. - GRIID Infrastructure deposited an aggregate of $888,272 into the trust account, representing $0.06 per IPO share per month, to extend the initial business combination deadline to July 14, 2023[148]. - Stockholder approval was obtained on July 11, 2023, allowing for two additional three-month extensions, with 467,396 shares redeemed for approximately $4.9 million, or $10.58 per share[149]. - The board extended the deadline for the initial business combination to October 14, 2023, with GRIID Infrastructure depositing $120,000, or $0.03 per public share, for the first two months of this extension[150]. - If a business combination is not completed by the extension date, the company will cease operations, redeem all public shares, and liquidate[154]. Financing Arrangements - The company issued a Working Capital Note allowing borrowing up to $1 million, with $502,683 borrowed as of June 30, 2023[142]. - The company entered into a Credit Agreement providing for a restructured senior secured term loan of approximately $57.4 million[143]. - The company amended its underwriting agreement, reducing the deferred underwriting commission to $6.762 million, payable upon the closing of its initial business combination[145]. - The GRIID Note allows borrowing up to $1.8 million, with interest at the Applicable Federal Rate, payable upon liquidation decision or merger closing[151]. - As of June 30, 2023, there were no off-balance sheet financing arrangements or long-term liabilities reported[155][158]. Financial Instruments and Accounting Standards - The company does not use derivative instruments to hedge exposures and evaluates financial instruments for derivative classification[168]. - The company is assessing the impact of ASU No. 2020-06 on its financial position, with early adoption permitted[170].
Adit EdTech(ADEX) - 2023 Q2 - Quarterly Report