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Aeries Technology(AERT) - 2022 Q3 - Quarterly Report
AERTAeries Technology(AERT)2022-11-21 22:34

Financial Performance - The company reported a net loss of 348,075forthethreemonthsendedSeptember30,2022,primarilyduetogeneralandadministrativeexpensesof348,075 for the three months ended September 30, 2022, primarily due to general and administrative expenses of 1,444,411 [102]. - For the nine months ended September 30, 2022, the company achieved a net income of 9,626,072,whichincludedagainfromthechangeinfairvalueofderivativewarrantliabilitiesamountingto9,626,072, which included a gain from the change in fair value of derivative warrant liabilities amounting to 10,404,000 [102]. - The company has a working capital deficit of 1,306,895asofSeptember30,2022,raisingconcernsaboutitsabilitytocontinueasagoingconcern[109].CashandSecurities−AsofSeptember30,2022,thecompanyhadcashandmarketablesecuritiesheldintheTrustAccounttotaling1,306,895 as of September 30, 2022, raising concerns about its ability to continue as a going concern [109]. Cash and Securities - As of September 30, 2022, the company had cash and marketable securities held in the Trust Account totaling 233,442,189 [107]. - The net proceeds from the Initial Public Offering have been invested in U.S. government obligations or money market funds, minimizing exposure to interest rate risk [121]. Initial Public Offering (IPO) - The company generated gross proceeds of 200,000,000fromitsInitialPublicOffering(IPO)byissuing20,000,000sharesat200,000,000 from its Initial Public Offering (IPO) by issuing 20,000,000 shares at 10.00 per unit [104]. - The company incurred transaction costs of 21,834,402relatedtotheIPO,whichincluded21,834,402 related to the IPO, which included 4,600,000 in underwriting fees [105]. - The underwriters from the Initial Public Offering waived their entitlement to deferred underwriting fees of 8,050,000,recordedasagainof8,050,000, recorded as a gain of 7,847,542 [118]. Business Operations - The company has not engaged in any operations or generated revenues to date, with all activities focused on preparing for the IPO and searching for a target business [100]. - The company intends to use funds held outside the Trust Account primarily for identifying and evaluating target businesses and performing due diligence [106]. - The company has until April 22, 2023, to consummate a Business Combination, or it will face mandatory liquidation [109]. Regulatory and Compliance - The company may incur significant expenses related to internal control improvements to meet regulatory requirements following its IPO [110]. - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [119]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years [120]. Financing and Investments - The company may receive loans up to 1,500,000convertibleintowarrantsat1,500,000 convertible into warrants at 1.00 per warrant, with no written agreements currently in place [114]. - The sponsor purchased 8,900,000 private placement warrants at 1.00each,totaling1.00 each, totaling 8,900,000, allowing the purchase of Class A ordinary shares at $11.50 per share [115]. Off-Balance Sheet Arrangements - As of September 30, 2022, the company had no off-balance sheet arrangements or contractual obligations [117].