Ault Disruptive Technologies (ADRT) - 2022 Q3 - Quarterly Report

Financial Performance - The company had a net income of $161,560 for the three months ended September 30, 2022, compared to a net loss of$5,618 for the same period in 2021[109]. - For the nine months ended September 30, 2022, the company reported net losses of $568,339, which included$1.1 million in formation and operating costs[110]. - The company has not generated any operating revenues since its inception and will not do so until the completion of its initial Business Combination[109]. Capital and Funding - The company raised gross proceeds of $115 million from its IPO, selling 11,500,000 units at$10.00 per unit[104]. - The private placement of 7,100,000 warrants generated gross proceeds of $7.1 million[105]. - As of September 30, 2022, the company had$248,775 in its operating bank account and working capital of $631,285[111]. Business Strategy - The company intends to focus on acquiring businesses with innovative and emerging technologies that can achieve mainstream adoption[103]. - The company has not yet selected a specific business combination target but has had substantive discussions with at least one potential target[102]. - If the company fails to complete its initial Business Combination within 12 months, it may extend the period up to 18 months, or cease operations and redeem public shares[107]. Internal Controls and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards[113]. - The company conducted an evaluation of its disclosure controls and procedures as of September 30, 2022, concluding they were not effective due to material weaknesses in internal control over financial reporting[122]. - Management has initiated remediation steps to enhance disclosure controls and internal control over financial reporting, focusing on account reconciliations and franchise tax expense[123]. - There were no changes to the internal control over financial reporting during the fiscal quarter ended September 30, 2022, that materially affected or are likely to affect it[125]. - The company has improved access to accounting literature and is considering additional staff with requisite experience to support existing accounting professionals[123]. Legal Matters - There is no material litigation, arbitration, or governmental proceeding currently pending against the company or its management team[127].