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Aeries Technology(AERT) - 2022 Q1 - Quarterly Report
AERTAeries Technology(AERT)2022-05-16 21:15

Financial Performance - The company had a net income of 3,799,755forthethreemonthsendedMarch31,2022,primarilyduetoagainfromthechangeinfairvalueofderivativewarrantliabilitiesof3,799,755 for the three months ended March 31, 2022, primarily due to a gain from the change in fair value of derivative warrant liabilities of 4,082,040 [102]. - The company incurred cash used in operating activities of (228,196)forthethreemonthsendedMarch31,2022[105].−Thecompanyreportedaworkingcapitaldeficiencyof(228,196) for the three months ended March 31, 2022 [105]. - The company reported a working capital deficiency of 101,036 as of March 31, 2022 [110]. Initial Public Offering (IPO) - The company generated gross proceeds of 200,000,000fromitsInitialPublicOffering(IPO)of20,000,000sharesatapriceof200,000,000 from its Initial Public Offering (IPO) of 20,000,000 shares at a price of 10.00 per unit [103]. - A total of 232,300,000wasplacedintheTrustAccountfollowingtheIPO,afterincurringtransactioncostsof232,300,000 was placed in the Trust Account following the IPO, after incurring transaction costs of 21,834,402 [105]. - As of March 31, 2022, the company had cash and marketable securities held in the Trust Account amounting to 232,401,196[107].BusinessCombinationandLiquidation−ThecompanyhasuntilOctober22,2023,toconsummateaBusinessCombination,oritwillfacemandatoryliquidation[111].ExpensesandFinancialStrategy−Thecompanyexpectstoincurincreasedexpensesasaresultofbeingapubliccompany,includinglegalandcompliancecosts[100].−ThecompanyintendstousefundsheldoutsidetheTrustAccountprimarilyforidentifyingandevaluatingtargetbusinesses[106].SponsorandWarrantInformation−Upto232,401,196 [107]. Business Combination and Liquidation - The company has until October 22, 2023, to consummate a Business Combination, or it will face mandatory liquidation [111]. Expenses and Financial Strategy - The company expects to incur increased expenses as a result of being a public company, including legal and compliance costs [100]. - The company intends to use funds held outside the Trust Account primarily for identifying and evaluating target businesses [106]. Sponsor and Warrant Information - Up to 1,500,000 of loans from the Sponsor may be convertible into warrants at a price of 1.00perwarrant[119].−Thesponsorpurchased8,900,000privateplacementwarrantsat1.00 per warrant [119]. - The sponsor purchased 8,900,000 private placement warrants at 1.00 per warrant, totaling 8,900,000,allowingthepurchaseofClassAordinarysharesat8,900,000, allowing the purchase of Class A ordinary shares at 11.50 each [120]. Regulatory and Reporting Considerations - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to delay the adoption of new accounting standards [123]. - The company is evaluating the benefits of reduced reporting requirements under the JOBS Act, which may exempt it from certain disclosures for five years post-IPO [125]. Risk Assessment - As of March 31, 2022, the company was not subject to market or interest rate risk, with IPO proceeds invested in U.S. government obligations or money market funds [126]. - As of March 31, 2022, there were no off-balance sheet arrangements or contractual obligations reported [122].