Thu, Nov 14, 10:14 PM (88 days ago)
For the quarter ending September 30, 2024, Direct Selling Acquisition Corp. (DSAQ) reported significant financial shifts. The company experienced a net income of $2,770,817, driven primarily by changes in warrant liability valuations, while for the nine months, it recorded a net loss of $2,266,696. Revenue was non-existent, as no operations had commenced; all activities pertained to pursuing a Business Combination. Cash and cash equivalents dwindled to $8,988 from $467,309, reflecting a working capital deficit of $14,135,149. The Trust Account balance decreased to approximately $31,872,076, primarily due to shareholder redemptions. The company has until November 28, 2024, to complete a Business Combination, or it faces mandatory liquidation. The SEC's new SPAC regulations may hinder future operations, increasing costs and affecting transaction timelines. Risks include dependency on external financing and potential penalties under the Inflation Reduction Act concerning share repurchases. Overall, uncertainties surrounding the Business Combination and liquidity constraints raise concerns about the company's ability to sustain operations.