Alliance Entertainment (AENT) - 2021 Q3 - Quarterly Report

Financial Performance - The company has not engaged in any operations or generated any revenues to date, with a net loss of $1,041,503 for the three months ended September 30, 2021 [114]. - For the nine months ended September 30, 2021, the company reported a net income of $3,089,413, primarily due to changes in fair value of warrant liabilities of $3,801,300 [115]. Initial Public Offering (IPO) - The company completed its IPO on February 11, 2021, raising gross proceeds of $115,000,000 from the sale of 11,500,000 Units at $10.00 per Unit [117]. Assets and Cash Management - As of September 30, 2021, the company held marketable securities in the Trust Account amounting to $116,157,352, including $7,352 of interest income [118]. - Cash used in operating activities for the nine months ended September 30, 2021, was $220,098, with changes in operating assets and liabilities providing $412,597 of cash [117]. - The company has cash of $844,946 held outside of the Trust Account, intended for identifying and evaluating target businesses [119]. - The company has no long-term debt or off-balance sheet arrangements as of September 30, 2021 [122]. Operational Expenses - The company incurs a monthly fee of $10,000 to its Sponsor for office space and administrative support, which began on February 8, 2021 [124]. - The company does not anticipate needing to raise additional funds for operating expenditures but may require financing for a Business Combination [121]. Acquisition Strategy - The company intends to focus its acquisition efforts on the consumer products industry and related sectors, including health and wellness and e-commerce [112].