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Adit EdTech(ADEX) - 2023 Q2 - Quarterly Report
ADEXAdit EdTech(ADEX)2023-08-13 16:00

Financial Performance - The company reported a net loss of approximately 0.7millionforthethreemonthsendedJune30,2023,comparedtoanetincomeofapproximately0.7 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 1.6million,whileforthesameperiodin2022,itreportedanetincomeofapproximately1.6 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 0.1millioninitsoperatingbankaccountandaworkingcapitaldeficitofapproximately0.1 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 0.1millionintheoperatingbankaccount,raisingsubstantialdoubtaboutitsabilitytocontinueasagoingconcernforthenext12months[153].IPOandTrustAccount−ThecompanycompleteditsIPOonJanuary14,2021,raisinggrossproceedsof0.1 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 10.00perunit[132].−FollowingtheIPO,thecompanyhadanaggregateamountof10.00 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 253.6millionfromthetrustaccount,equatingtoapproximately253.6 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 888,272intothetrustaccount,representing888,272 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 4.9million,or4.9 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,or120,000, 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 1million,with1 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 57.4million[143].−Thecompanyamendeditsunderwritingagreement,reducingthedeferredunderwritingcommissionto57.4 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].