Tue, May 14, 8:19 PM (305 days ago)
Kernel Group Holdings, Inc., a blank check company, reported a significant financial downturn for Q1 2024. The company recorded a net loss of $820,553, primarily due to general and administrative expenses and unrealized losses on warrant liabilities. The company's cash flow from operating activities showed a deficit of $307,260. The company's liquidity position is precarious, with only $804 in its operating bank account and a working capital deficit of approximately $8.4 million as of March 31, 2024. Significant redemptions of Class A shares occurred, with 5.8 million shares redeemed for approximately $62.7 million, leaving a Trust Account balance of about $5.6 million. The company extended its timeline to consummate a business combination to August 5, 2024, by making multiple deposits into the Trust Account. Kernel's proposed business combination with AIRO Group Holdings, Inc. is contingent on several conditions, including shareholder approvals and maintaining a minimum cash balance. The company faces substantial doubt about its ability to continue as a going concern due to its liquidity issues and the impending liquidation deadline. The company also received a delisting notice from Nasdaq due to non-compliance with listing rules but was granted an exception until July 1, 2024.