Ault Disruptive Technologies (ADRT) - 2023 Q2 - Quarterly Report

Financial Performance - For the three months ended June 30, 2023, the company reported a net income of $525,344, compared to a net loss of$(441,699) for the same period in 2022, reflecting a significant improvement [115]. - For the six months ended June 30, 2023, the company achieved a net income of $1,081,016, compared to a net loss of$(729,899) in the prior year, indicating a positive trend in financial performance [117]. Liquidity and Capital Needs - As of June 30, 2023, the company had $483,162 in its operating bank account and negative working capital of$(1,027,298), highlighting liquidity challenges [118]. - The company may need to raise additional capital to meet its liquidity needs, which could involve loans or investments from sponsors or third parties [121]. - The company entered into a line of credit agreement for up to $500,000 with Ault Alliance, Inc., with an interest rate of 9.5$10.61 per share, resulting in a total redemption amount of $120,063,828, which is about 98.36% of the public shares [124]. Accounting Policies and Estimates - The company has identified critical accounting policies related to redeemable shares, with 188,875 shares subject to possible redemption as of June 30, 2023 [128]. - The Company has not identified any additional critical accounting estimates beyond those disclosed in the Annual Report on Form 10-K/A for the year ended December 31, 2022 [133]. - The preparation of financial statements requires management to make estimates and assumptions affecting reported amounts of assets and liabilities [133]. - Actual results could differ from the estimates made by management [133].