Financial Performance - As of December 31, 2022, the company reported a net loss of $128,392, compared to a net loss of $29,535 for the period from Inception through December 31, 2021[362]. - Cash used in operating activities for the year ended 2022 was $1,858,152, primarily due to operating costs and income taxes paid[365]. - The company has not commenced any operations and will not generate operating revenues until after the completion of its initial business combination[356]. Initial Public Offering (IPO) - The company generated gross proceeds of $115,000,000 from the Initial Public Offering of 11,500,000 units at $10.00 per unit[363]. - The company incurred transaction costs of $7,087,891 related to the IPO, including $6,338,333 in underwriting fees[363]. - 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[371]. - A total of $25,000 was contributed by the Sponsor to cover offering costs prior to the IPO, along with a $1,500,000 unsecured promissory note[372]. Trust Account and Cash Management - Cash and marketable securities held in the trust account amounted to $118,193,123 as of December 31, 2022, compared to $116,725,166 in 2021[364]. - As of December 31, 2022, the company had cash of $206,527 held outside of the trust account[367]. - The company intends to use substantially all funds held in the trust account to complete its initial business combination[366]. - The company may need to raise additional capital through loans or investments to meet working capital needs[369]. Debt and Obligations - The company has no long-term debt or capital lease obligations, only a monthly fee of $10,000 for office space and services starting January 1, 2022[371]. Warrant and Equity Information - The company has issued 8,625,000 Warrants and 7,100,000 Private Placement Warrants, classified as equity under ASC 480 and ASC 815[377]. - The valuation of the warrant liability is a significant accounting estimate that may change with new information[378]. Accounting Standards and Estimates - The company adopted ASU 2020-06 on January 1, 2022, which did not impact its financial position or results[379]. - Management does not anticipate that recently issued accounting standards will materially affect financial statements[380]. - The company does not use derivative instruments to hedge cash flow, market, or foreign currency risks[376].
Ault Disruptive Technologies (ADRT) - 2022 Q4 - Annual Report