Financial Performance - For the nine months ended September 30, 2024, the company reported a net loss of $853,947, compared to a net loss of $9,767 for the same period in 2023, indicating a significant increase in losses [111][112]. - Interest earned on marketable securities held in the trust account for the nine months ended September 30, 2024, was $569,338, down from $1,940,473 for the same period in 2023 [111][112]. - The company incurred cash used in operating activities of $961,938 for the nine months ended September 30, 2024, compared to $610,200 for the same period in 2023 [119][120]. - Cash provided by investing activities for the nine months ended September 30, 2024, was $25,492,597, down from $46,387,597 for the same period in 2023 [121]. Trust Account and Cash Management - As of September 30, 2024, the company had cash held in the trust account of $1,109,108, which is intended to be used for the Initial Business Combination [124]. - The company withdrew $595,577 from the trust account to pay liabilities related to income and Delaware franchise taxes since its IPO [128]. - As of September 30, 2024, the company had accrued but unpaid income tax liability of $941,000 and unpaid excise tax liability of $719,176 [128]. Nasdaq Listing and Compliance - The company received a notice from Nasdaq regarding potential delisting due to not meeting the minimum market value requirement of $50,000,000 for continued listing [130]. - The Company applied to transfer from Nasdaq Global Market to Nasdaq Capital Market on July 23, 2024, and received a notification on August 12, 2024, that it has cured its filing discrepancies under Listing Rule 5250(c)(1) [133]. - Nasdaq granted the Company's request for continued listing on September 27, 2024, subject to providing updates on its merger with Aiways and share transfers by October 4, 2024 [134]. - The proposed Business Combination must be completed by January 20, 2025, to comply with Nasdaq's listing requirements [136]. - The Company has until October 18, 2025, to consummate a Business Combination, with potential extensions available under specific conditions [138]. Business Operations and Future Plans - The Company intends to use funds held outside the trust account primarily for identifying and evaluating target businesses and related due diligence activities [125]. - The Company must complete the transfer of the remainder of the Founder Shares and Private Placement Shares by November 22, 2024 [135]. - The Company incurs a monthly fee of $20,000 for office space and administrative support, which began on October 18, 2022 [140]. - The management has determined that the liquidity condition raises substantial doubt about the Company's ability to continue as a going concern if a Business Combination is not consummated [138]. Other Considerations - As of September 30, 2024, the Company recorded deferred underwriting commissions of $2,723,060, payable only upon completion of the Initial Business Combination [141]. - The Company has no off-balance sheet arrangements as of September 30, 2024 [139]. - The Company has not encountered cybersecurity challenges that have materially impaired its operations or financial standing [146].
Hudson Acquisition I (HUDA) - 2024 Q3 - Quarterly Report