Mon, Dec 30, 6:13 PM (14 days ago)
Broad Capital Acquisition Corp (BRAC) filed an amendment to its Q2 2024 Form 10-Q to correct prior misstatements regarding its trust account investments, clarifying that funds are now entirely in an interest-bearing demand deposit account rather than marketable securities. As of June 30, 2024, total assets decreased significantly to $19.85 million from $50.82 million at year-end 2023, primarily due to redemptions and operational expenses. The company reported a net loss of $917,136 for the six months ended June 30, 2024, compared to a loss of $312,214 in the same period of the previous year, driven by increased formation and operating costs. Notably, cash held in trust fell to $19.81 million, reflecting ongoing redemptions. The company faces significant liquidity challenges, with only $2,826 in operational cash, and substantial doubt exists regarding its ability to sustain operations without additional financing. The ongoing merger with Openmarkets Group remains a focal point, with multiple amendments to the merger agreement reflecting changing valuations and terms. Overall, BRAC's financial position shows increased losses, reduced cash reserves, and uncertainties surrounding its planned business combination.