Wed, Aug 14, 7:48 PM (153 days ago)
For the quarter ending June 30, 2024, Acri Capital Acquisition Corporation reported a significant decline in financial health, with total assets decreasing from $36,732 to $21,278, primarily due to a drop in cash reserves and investments held in the Trust Account. The company recorded a net loss of $245,297 for the quarter, compared to a profit of $90,945 in the same period last year, driven by increased formation and operating costs. Cash flow from operations was negative at $1,228,590, highlighting liquidity challenges, with a working capital deficit of $3,346,481. The company continues to face uncertainties regarding its ability to complete a business combination, having extended its deadline to January 14, 2025, through monthly payments. The redemption of Class A common stock has further impacted its capital structure, with $21 million in shares subject to redemption. The ongoing reliance on related party loans raises concerns about future operations and financial stability. The recent approval of amendments to the business combination agreement with Foxx Development Inc. reflects the company's strategic efforts to complete a merger, although the outcome remains uncertain.