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10-Q - Focus Impact BH3 Acquisition Co (0001851612) (Filer)

Wed, Dec 11, 10:12 PM (220 days ago)

Focus Impact BH3 Acquisition Company (BHAC) reported a net loss of $1,006,971 for Q3 2024, driven by operating costs of $1,047,765, offset by interest income and gains from the fair value changes of its derivative liabilities. The company's total assets decreased to $13,566,868 from $25,335,724 at year-end 2023, primarily due to a significant reduction in its Trust Account holdings, which fell from $24,554,804 to $12,950,024. Current liabilities surged to $7,598,994, reflecting increased accounts payable and tax obligations. The company remains in pursuit of a business combination, with a deadline extended to February 7, 2025. However, it faces liquidity challenges, reporting only $594,619 in cash available for operations and a working capital deficit of $6,982,150. The delisting from Nasdaq and subsequent trading on the OTC Pink Marketplace raises concerns about liquidity and market perception. Future operations hinge on completing a merger with XCF Global Capital, with conditions including stockholder approval and regulatory compliance. The financial outlook is uncertain, with ongoing risks from market volatility and operational costs.