Mon, May 20, 8:11 PM (67 days ago)
Kairous Acquisition Corp. Limited's Form 10-Q for the quarter ended March 31, 2024, reports a significant decrease in assets, primarily due to redemptions of ordinary shares. Total assets dropped from $22.9 million on June 30, 2023, to $15.8 million on March 31, 2024. Current liabilities increased significantly from $1.4 million to $2.8 million, driven by higher accounts payable and accrued expenses, extension loans, and working capital notes. The company reported a shareholders' deficit of $5.5 million, up from $4.0 million. The company generated $812,041 in interest income for the nine months ended March 31, 2024, down from $1.1 million in the same period in 2023. Operating expenses decreased from $823,975 to $742,178, resulting in a net income of $69,863, down from $288,612 in the prior year. Cash flow from operations was negative at $500,040, and the company had minimal cash of $385 outside the trust account. The company has extended its time to complete a business combination multiple times, with the current deadline being June 16, 2024, extendable to December 16, 2024. The company faces significant liquidity challenges and has a substantial doubt about its ability to continue as a going concern. The ongoing geopolitical risks and market uncertainties may further impact its ability to consummate a business combination.