Ault Disruptive Technologies (ADRT) - 2021 Q4 - Annual Report

IPO and Fundraising - The company completed its Initial Public Offering (IPO) on December 20, 2021, selling 11,500,000 units at $10.00 per unit, generating gross proceeds of $115,000,000[341]. - The company also sold 7,100,000 Placement Warrants to the sponsor at $1.00 per warrant, generating additional gross proceeds of approximately $7,100,000[342]. - The company incurred transaction costs of $7,087,891 related to the IPO, including $6,338,333 in underwriting fees[347]. - The underwriters of the IPO are entitled to a deferred fee of $3,450,000, which will be waived if the company does not complete a business combination[356]. - The company issued 8,625,000 warrants and 7,100,000 private placement warrants in connection with its IPO, classified as equity instruments[363]. Financial Position - As of December 31, 2021, the company had cash and marketable securities held in the trust account amounting to $116,725,166[348]. - As of December 31, 2021, the company had cash of $1,849,679 outside the trust account, expected to be sufficient for at least the next 12 months[351]. - 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[356]. Business Strategy - The company intends to use substantially all funds held in the trust account to complete its initial business combination[349]. - The company has not yet identified a specific target for its initial business combination but intends to focus on innovative and emerging technologies[344]. Financial Performance - The company reported a net loss of $29,535 for the period from February 22, 2021, through December 31, 2021, primarily due to formation and operating costs[346]. - The company reported a net loss per share of common stock, with diluted income per share being the same as basic income per share due to the absence of dilutive securities[361]. Accounting and Estimates - Management has identified significant accounting estimates, particularly in the valuation of warrants, which may change as new information becomes available[364]. - The company is currently assessing the impact of ASU 2020-06, effective January 1, 2022, which simplifies accounting for certain financial instruments[365]. - Management does not anticipate that recently issued accounting standards will materially affect the financial statements[366].