Mon, Aug 19, 8:17 PM (148 days ago)
For the quarter ended June 30, 2024, Finnovate Acquisition Corp. reported a net loss of $49,619, a significant decline from the prior year’s net income of $798,325, primarily due to reduced interest income from investments. Total current assets decreased to $96,412 from $37,426 at year-end 2023, while investments held in the Trust Account fell dramatically from $51,200,344 to $25,736,479, reflecting substantial shareholder redemptions. The company faced a working capital deficit of $4,048,517, raising concerns about liquidity and going concern status as it needs to complete a business combination by November 8, 2024, or face liquidation. The company’s cash flow activities showed a net cash used in operating activities of $496,221, with significant cash outflows for shareholder redemptions totaling $26,907,976. Future operations hinge on successfully completing the Scage Business Combination, which has been amended to lower the aggregate consideration from $1 billion to $800 million. Risks include market volatility, regulatory changes, and the company’s ability to secure additional financing, which could impact its ability to finalize the merger and sustain operations.