10-Q - Cartica Acquisition Corp (0001848437) (Filer)

Thu, May 15, 10:12 AM (37 days ago)

**Cartica Acquisition Corp (CITEU) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** No revenue generated; operational costs and formation expenses were $431,096. - **Profit Margins:** Net income of $287,896, primarily from interest income and changes in warrant liabilities. - **Cash Flow:** Net cash used in operating activities was $230,408; investing activities provided $10,440,427, mainly from cash deposited in the Trust Account. **Earnings Changes:** - Q1 2025: Net income of $287,896. - Q1 2024: Net loss of $3,902,244. **Quarterly Performance Discussion:** - **Operational Costs:** Decreased significantly from $2,408,551 in Q1 2024 to $431,096 in Q1 2025. - **Interest Income:** $170,992 from cash held in the Trust Account. - **Warrant Liabilities:** Change in fair value contributed $548,000 to net income. **Trends & Uncertainties:** - **Liquidity:** $2,441 in operating accounts; $16,086,301 in Trust Account. - **Going Concern:** Substantial doubt about continuing as a going concern due to liquidity issues and mandatory liquidation risks. - **Business Combination:** Must complete by October 7, 2025; potential extensions require shareholder approval and may lead to redemptions. **Future Operations Impact:** - **Nidar Business Combination:** Agreement with Nidar Infrastructure Limited; potential delisting from Nasdaq and trading on OTC markets. - **Financial Obligations:** Promissory notes and loans from the Sponsor; potential additional borrowing for working capital. **Key Metrics:** - **Operating Costs:** $431,096 (Q1 2025) vs. $2,408,551 (Q1 2024). - **Interest Income:** $170,992 (Q1 2025) vs. $583,307 (Q1 2024). - **Warrant Liabilities:** $548,000 change in fair value (Q1 2025) vs. $2,077,000 (Q1 2024). **Market Risks & Uncertainties:** - **Geopolitical & Economic Factors:** Potential impacts from military conflicts, economic downturns, and regulatory changes. - **Tariffs & Trade Policies:** Uncertainty due to recent tariffs and trade policy changes. **Conclusion:** Cartica Acquisition Corp faces significant liquidity challenges and must complete a business combination by October 7, 2025, to avoid mandatory liquidation. The company's financial health is precarious, with substantial reliance on interest income and changes in warrant liabilities. The Nidar Business Combination and potential delisting from Nasdaq add layers of complexity and risk. Investors should closely monitor the company's progress in securing a business combination and managing its financial obligations.