Financial Performance - For the three months ended September 30, 2023, the company reported a net income of 161,560 in the same period of 2022 [116]. - For the nine months ended September 30, 2023, the company achieved a net income of (568,339) in the prior year [118]. - The company has not generated any operating revenues since its formation and will not do so until the completion of its initial Business Combination [116]. Financial Position - As of September 30, 2023, the company had (1,752,298) excluding taxes payable [119]. - The company has an outstanding principal advance balance of 120,063,828 [127]. - The company issued a total of 8,625,000 Warrants and 9,400,000 Private Placement Warrants in connection with the IPO, along with an additional 2,300,000 Private Placement Warrants for extending the time to complete the initial Business Combination [135]. Internal Controls and Compliance - The company has identified material weaknesses in its internal control over financial reporting, particularly in applying complex accounting principles and controls over reconciliations and accruals [138]. - Management concluded that the disclosure controls and procedures were not effective during the reporting period due to these material weaknesses [138]. - A remediation plan is in place to improve disclosure controls and internal control over financial reporting, including enhancing access to accounting literature and considering additional staff [142]. - The company plans to continue assessing its internal controls and intends to take further action as necessary to address identified matters [144]. - There were no changes to internal control over financial reporting that materially affected or are likely to materially affect the controls during the fiscal quarter ended September 30, 2023 [145]. Legal Matters - The company has not identified any material litigation or governmental proceedings currently pending against it or its management team [147].
Ault Disruptive Technologies (ADRT) - 2023 Q3 - Quarterly Report