Tue, May 20, 7:41 PM (29 days ago)
**Broad Capital Acquisition Corp (BRACU) Q1 2025 Financial Summary** **Company Overview:** Broad Capital Acquisition Corp (BRACU) is a blank check company formed to acquire, engage in a share exchange, or similar business combination with one or more businesses. The company has not yet commenced operations and its financial health is primarily dependent on its trust account and extension loans. **Financial Health and Performance:** - **Revenue:** No revenue generated as the company has not commenced operations. - **Profit Margins:** Negative due to operating costs and taxes. - **Cash Flow:** - **Operating Activities:** Net cash used in operating activities was $268,847 for Q1 2025, compared to $486,803 in Q1 2024. - **Investing Activities:** Net cash provided by investing activities was $19,348,362 for Q1 2025, primarily due to cash withdrawn from the trust account. - **Financing Activities:** Net cash used in financing activities was $19,013,851 for Q1 2025, mainly due to the redemption of common stock. - **Earnings Changes:** Net loss for Q1 2025 was $385,603, compared to $533,432 in Q1 2024. - **Cash Position:** As of March 31, 2025, the company had $66,249 in cash, with $1,216,693 held in the trust account. **Trends and Uncertainties:** - **Trust Account:** The trust account balance significantly decreased from $20,521,640 in 2024 to $1,216,693 in 2025 due to redemptions and withdrawals. - **Extension Loans:** The company has been extending its termination date through loans, with $3,506,664 outstanding as of March 31, 2025. - **Business Combination:** The company's future operations depend on completing a business combination, which is uncertain and subject to various risks. **Future Operations Impact:** - **Liquidity:** The company's liquidity is primarily dependent on its trust account and extension loans. The significant decrease in the trust account balance raises concerns about the company's ability to complete a business combination. - **Going Concern:** The company's ability to continue as a going concern is subject to significant doubt due to its dependence on completing a business combination within the prescribed period. **Key Metrics:** - **Net Loss:** $385,603 for Q1 2025, compared to $533,432 in Q1 2024. - **Cash Position:** $66,249 as of March 31, 2025. - **Trust Account:** $1,216,693 as of March 31, 2025. - **Extension Loans:** $3,506,664 outstanding as of March 31, 2025. **Conclusion:** Broad Capital Acquisition Corp's financial health is precarious, with significant uncertainties surrounding its ability to complete a business combination. The company's liquidity is dependent on its trust account and extension loans, and its going concern status is subject to substantial doubt. Investors should closely monitor the company's progress in completing a business combination and its ability to manage its liquidity needs.