10-Q - Chain Bridge I (0001845149) (Filer)

Tue, May 14, 9:09 PM (13 days ago)

Chain Bridge I's 10-Q filing for the quarter ended March 31, 2024, highlights significant changes and financial metrics. The company reported a net loss of approximately $1.2 million, driven mainly by a $990,000 loss from the change in fair value of derivative liabilities and general administrative expenses totaling $540,056. This contrasts with a net income of $2.8 million in the same period last year, which included substantial investment income and gains from derivative liabilities. Cash flow from operating activities was negative, with a net cash outflow of $149,102. However, the company withdrew $34.5 million from its Trust Account in connection with redemptions, resulting in a net cash inflow from investing activities. Financing activities saw a net outflow of $34.4 million, primarily due to the redemption of Class A ordinary shares. The company's liquidity is under strain, with only $5,115 in cash and a working capital deficit of $451,186. The company has until November 15, 2024, to consummate a Business Combination, failing which it must cease operations and liquidate. This raises substantial doubt about its ability to continue as a going concern. Notable changes include the resignation of the CFO, Mr. Lazarus, and the appointment of Mr. Kucharchuk as his successor. The company also entered into an Exchange Agreement with Fulton AC I LLC to extend the maturity date of a convertible promissory note.