Mon, Dec 30, 6:11 PM (190 days ago)
Broad Capital Acquisition Corp (BRAC) filed an amendment to its Form 10-Q for Q1 2024, correcting previous misclassifications of trust account funds from “marketable securities” to “cash held in trust account.” This adjustment reflects a strategic shift on January 4, 2024, to liquidate marketable securities in favor of an interest-bearing demand deposit account, mitigating the risk of being classified as an unregistered investment company. For the quarter ending March 31, 2024, BRAC reported a net loss of $533,432, a decrease from a loss of $652,296 in Q1 2023, attributed mainly to lower operating costs. Revenue remains non-existent, as the company is still in the pre-business combination phase. As of March 31, 2024, total assets decreased to $19,733,873 from $50,817,322 at year-end 2023, driven by significant redemptions of public shares. The company faces liquidity challenges, with only $164,776 in cash available for operations, raising concerns about its ability to sustain operations for the next 12 months without additional financing. The ongoing pursuit of a business combination remains critical for future operational viability, compounded by substantial uncertainties regarding market conditions and regulatory compliance.