Financial Performance - The Company reported a net loss of $257,656 for the three months ended September 30, 2024, compared to a net income of $253,265 for the same period in 2023[124]. - For the nine months ended September 30, 2024, the Company had a net loss of $103,471, contrasting with a net income of $716,172 for the same period in 2023[125]. - As of September 30, 2024, the Company had $109,650 in cash and a working capital deficit of $2,431,129[131]. - The Company incurred general and administrative expenses of $351,448 for the three months ended September 30, 2024[124]. Compliance and Regulatory Issues - The company is subject to Nasdaq Listing Rule 5550(a)(3) and has submitted a plan to regain compliance due to not having at least 300 public holders[117]. - The company received a notice for non-compliance with Nasdaq Listing Rule 5250(c)(1) for not timely filing its Form 10-K for the year ended December 31, 2023, and subsequently filed it on May 3, 2024[118]. - The company received a notice for non-compliance with Nasdaq Listing Rule 5250(c)(1) for not timely filing its Form 10-Q for the period ended March 31, 2024, with a filing completed on August 1, 2024[120]. - The Company has received a conditional extension from Nasdaq to maintain its listing, requiring compliance with Nasdaq Listing Rule 5505 by February 24, 2025[122]. Business Operations and Strategy - The company entered into a merger agreement with HUTURE Ltd. and Bestpath, implying a current equity value of Huture at $1.0 billion prior to the closing of the mergers[110]. - The company plans to utilize cash from its IPO and private placement of Private Units for its initial business combination[101]. - The Company has until December 6, 2024, to consummate a Business Combination, failing which it will face mandatory liquidation[132]. - The Company expects to incur significant professional costs to remain publicly traded and transaction costs related to the Business Combination[132]. - The underwriters are entitled to a deferred fee of $0.35 per public share, totaling $1,896,013, payable only upon completion of a business combination[138]. Shareholder Activity - An aggregate of 2,487,090 shares with a redemption value of approximately $25,943,773 (or $10.43 per share) were tendered for redemption during the special meeting on June 28, 2023[115]. - An aggregate of 2,124,738 shares with a redemption value of $23,176,909 (or approximately $10.91 per share) were tendered for redemption during the annual stockholder meeting on April 30, 2024[116]. Financial Liabilities - The company recorded an excise tax liability of $259,438 and $231,769 as of December 31, 2023, and September 30, 2024, respectively, totaling $491,207 outstanding as of September 30, 2024[106]. - The company has incurred significant costs in pursuit of its acquisition plans, with no assurance of successful completion[102]. Economic Environment - The company is monitoring the impact of inflation, rising interest rates, and geopolitical events on its financial position and operations[103]. Accounting and Internal Controls - The Financial Accounting Standards Board issued ASU 2023-09, requiring public entities to disclose specific categories in the rate reconciliation and additional information for reconciling items meeting a quantitative threshold of 5%[144]. - Management does not anticipate that recently issued accounting standards will materially affect the financial statements[145]. - The evaluation of disclosure controls and procedures revealed that they were ineffective during the fiscal quarter ended September 30, 2024[147]. - There were no changes in internal control over financial reporting that materially affected the internal control during the fiscal quarter ended September 30, 2024[148]. Legal Matters - There are no ongoing legal proceedings against the company[150].
Aquaron Acquisition Corp.(AQUNU) - 2024 Q3 - Quarterly Report