Fri, May 16, 8:12 PM (58 days ago)
**Distoken Acquisition Corp (DIST) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $0 (no operational revenue generated). - **Net Loss:** $405,712 (Q1 2025) vs. Net Income: $32,539 (Q1 2024). - **Operating Expenses:** $411,373 (Q1 2025) vs. $461,331 (Q1 2024). - **Cash Flow:** Negative cash flow from operations: $123,717 (Q1 2025) vs. $94,092 (Q1 2024). - **Cash Position:** $850 (Q1 2025) vs. $15,073 (Q1 2024). - **Trust Account:** $7,595,517 (Q1 2025) vs. $7,456,639 (Q1 2024). **Profit Margins:** - **Operating Margin:** Negative due to operating losses. - **Net Margin:** Negative due to net loss. **Earnings Changes:** - **Q1 2025:** Net loss of $405,712. - **Q1 2024:** Net income of $32,539. **Quarterly Performance Discussion:** - **Operational Activities:** No operational revenue; expenses include operating and formation costs, VAT, and Chinese income taxes. - **Investment Income:** $78,407 (Q1 2025) from trust account investments. - **Cash Flow:** Negative due to operating losses and changes in working capital. **Trends & Uncertainties:** - **Geopolitical Risks:** Global market volatility due to conflicts (Russia-Ukraine, Israel-Hamas). - **Regulatory Risks:** SEC's 2024 SPAC rules may affect business combination. - **Liquidity Risks:** Potential need for additional financing or extensions to complete a business combination. **Future Operations Impact:** - **Business Combination:** Targeting completion by November 18, 2025. - **Liquidity:** May need additional financing or extensions; trust account funds are primary liquidity source. - **Going Concern:** Substantial doubt about continuing as a going concern if a business combination is not completed. **Key Metrics:** - **Operating Costs:** $411,373 (Q1 2025). - **Interest Income:** $78,407 (Q1 2025). - **Cash Position:** $850 (Q1 2025). - **Trust Account:** $7,595,517 (Q1 2025). **Conclusion:** Distoken Acquisition Corp faces significant challenges in completing a business combination by November 18, 2025. The company's financial health is precarious, with substantial operating losses and negative cash flow. Geopolitical and regulatory uncertainties add to the complexity. The company must secure additional financing or extensions to avoid liquidation and dissolution.