Workflow
Adit EdTech(ADEX) - 2022 Q2 - Quarterly Report
ADEXAdit EdTech(ADEX)2022-08-14 16:00

Financial Performance - The company had a net income of approximately 2.7millionforthethreemonthsendedJune30,2022,primarilyduetoachangeinfairvalueofwarrantliabilityofapproximately2.7 million for the three months ended June 30, 2022, primarily due to a change in fair value of warrant liability of approximately 2.9 million [131]. - For the six months ended June 30, 2022, the company reported a net income of approximately 3.9million,withachangeinfairvalueofwarrantliabilitycontributingapproximately3.9 million, with a change in fair value of warrant liability contributing approximately 4.7 million [132]. - As of June 30, 2022, the company had approximately 0.1millioninitsoperatingbankaccountandaworkingcapitaldeficitofapproximately0.1 million in its operating bank account and a working capital deficit of approximately 3.4 million [134]. Capital Structure - The company completed its IPO on January 14, 2021, raising gross proceeds of 240millionfromthesaleof24,000,000Unitsatanofferingpriceof240 million from the sale of 24,000,000 Units at an offering price of 10.00 per Unit [129]. - The underwriters exercised their over-allotment option, resulting in an additional 36millioningrossproceedsfromthesaleof3,600,000Units[130].−Thecompanyhasnolong−termdebtoroff−balancesheetfinancingarrangementsasofJune30,2022[139][137].MergersandAcquisitions−ThecompanyenteredintoaMergerAgreementonNovember29,2021,tomergewithGRIID,whichwasunanimouslyapprovedbybothboards[138].LiquidityandCashFlow−Thecompanyanticipatesthatitscurrentcashbalancewillnotbesufficienttooperateforatleastthenext12monthswithoutabusinesscombination[136].−ThecompanyissuedanunsecuredpromissorynotetotheSponsorforaWorkingCapitalLoan,allowingborrowingupto36 million in gross proceeds from the sale of 3,600,000 Units [130]. - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2022 [139][137]. Mergers and Acquisitions - The company entered into a Merger Agreement on November 29, 2021, to merge with GRIID, which was unanimously approved by both boards [138]. Liquidity and Cash Flow - The company anticipates that its current cash balance will not be sufficient to operate for at least the next 12 months without a business combination [136]. - The company issued an unsecured promissory note to the Sponsor for a Working Capital Loan, allowing borrowing up to 300,000, with $150,000 borrowed as of June 30, 2022 [135]. Equity and Liabilities - All 27,600,000 shares of common stock sold as part of the Units contain a redemption feature, classified outside of permanent equity as of June 30, 2022 [145]. - As of June 30, 2022, Private Placement Warrants were classified as liabilities at fair value due to not meeting equity treatment criteria, impacting financial statements [150]. - The Private Placement Warrants were modified on December 23, 2021, resulting in their treatment as derivative liability instruments [150]. Risk Management - As of June 30, 2022, the company was not subject to any market or interest rate risk following the IPO [151]. - Proceeds from the IPO have been invested in U.S. government treasury bills, notes, or bonds with a maturity of 180 days or less [151]. - The company believes there will be no material exposure to interest rate risk due to the short-term nature of its investments [151].