Wed, May 15, 11:50 AM (205 days ago)
OCA Acquisition Corp. filed its 10-Q for the quarter ended March 31, 2024, highlighting a net loss of approximately $511,000, primarily due to general and administrative expenses and a loss from the change in fair value of warrant liabilities. The company reported a decrease in cash and marketable securities held in trust from $42.3 million to $33.2 million due to stock redemptions and operational costs. Key points include: - Cash balance dropped to $1,431 from $27,767. - Prepaid expenses increased to $90,273 from $7,905. - Liabilities rose to $15.5 million from $14.2 million, driven by accrued expenses and related party promissory notes. - The number of Class A common stock shares subject to redemption decreased from 3.9 million to 3 million. - The company faces liquidity challenges and has issued several promissory notes to cover expenses. - An ongoing merger with Powermers Smart Industries, Inc. is expected to close by July 15, 2024, with a pro forma equity value of approximately $2 billion. - The company must complete a business combination by May 20, 2024, or face liquidation. Management has expressed concerns about the company's ability to continue as a going concern if the merger is not completed on time.