Wed, Jun 5, 9:27 PM (138 days ago)
Distoken Acquisition Corporation's 10-Q for the quarter ended March 31, 2024, highlights the following key points: 1. **Financial Position**: The company reported total assets of $42.2 million, primarily held in a Trust Account. Current liabilities increased to $1.5 million, with significant accounts payable and Chinese taxes payable. 2. **Performance Metrics**: For Q1 2024, net income was $32,539, driven by $541,076 in interest income from Trust Account investments, offset by $497,691 in operating costs and $10,846 in income taxes. 3. **Cash Flow**: Operating activities used $94,092 in cash, while financing activities provided $75,688. Cash on hand was $1,159 at quarter-end. 4. **Extension and Sponsor Support**: The company extended its business combination deadline to November 18, 2024, with monthly sponsor deposits into the Trust Account to cover extension costs. As of March 31, 2024, $136,923 had been advanced by the sponsor. 5. **Liquidity Concerns**: The company faces liquidity challenges, raising substantial doubt about its ability to continue as a going concern without completing a business combination by the extended deadline. 6. **Recent Developments**: Entered into a Business Combination Agreement with Youlife Group Inc. on May 17, 2024, aiming to merge and form a new entity, Pubco. These points indicate the company's active efforts to secure a business combination while managing liquidity constraints and sponsor support.