ption Growth Acquisition (IGTA) - 2025 Q1 - Quarterly Report

Part I Item 1. Unaudited Condensed Consolidated Financial Statements This section presents unaudited condensed consolidated financial statements for Q1 2025 and 2024, covering balance sheets, operations, shareholders' deficit, cash flows, and notes Condensed Consolidated Balance Sheets The condensed consolidated balance sheets show the company's financial position as of March 31, 2025, compared to December 31, 2024, highlighting changes in assets, liabilities, and shareholders' deficit | Metric | March 31, 2025 (Unaudited) | December 31, 2024 | | :------------------------------------- | :--------------------------- | :------------------ | | Assets | | | | Cash | $2,791 | $4,295 | | Cash and investments held in Trust Account | $3,677,297 | $3,605,750 | | Total Assets | $3,680,088 | $3,610,045 | | Liabilities | | | | Accrued liabilities | $1,916,419 | $1,810,214 | | Income tax payable | $275,267 | $275,267 | | Note payable – related party | $1,540,000 | $1,540,000 | | Amount due to a related party | $596,150 | $503,946 | | Total current liabilities | $4,327,836 | $4,129,427 | | Deferred underwriting compensation | $2,250,000 | $2,250,000 | | Total Liabilities | $6,577,836 | $6,379,427 | | Shareholders' Deficit | | | | Total shareholders' deficit | $(6,575,045) | $(6,375,132) | - The company's cash balance decreased from $4,295 at December 31, 2024, to $2,791 at March 31, 2025[13] - Cash and investments held in the Trust Account increased from $3,605,750 to $3,677,297 during the quarter[13] Unaudited Condensed Consolidated Statements of Operations The unaudited condensed consolidated statements of operations detail the company's financial performance for the three months ended March 31, 2025, compared to 2024, showing a shift from net income to net loss | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Formation, general and administrative expense | $(166,314) | $(254,518) | | Loss from operations | $(166,314) | $(254,518) | | Dividend income | $37,948 | $420,650 | | (Loss) Income before income taxes | $(128,366) | $166,132 | | Income tax expense | $- | $(38,103) | | NET (LOSS) INCOME | $(128,366) | $128,029 | - The company reported a net loss of $128,366 for the three months ended March 31, 2025, a significant change from the net income of $128,029 in the prior year period[15] - Dividend income decreased substantially from $420,650 in Q1 2024 to $37,948 in Q1 2025[15] Unaudited Condensed Consolidated Statements of Changes in Shareholders' Deficit The statements of changes in shareholders' deficit show an increase in accumulated deficit for both periods, reflecting ongoing losses and accretion of carrying value to redemption value | Metric | Balance as of January 1, 2025 | Accretion of carrying value to redemption value | Net loss | Balance as of March 31, 2025 | | :------------------------------------ | :---------------------------- | :-------------------------------------------- | :------- | :--------------------------- | | Total shareholders' deficit | $(6,375,132) | $(71,547) | $(128,366) | $(6,575,045) | | Metric | Balance as of January 1, 2024 | Accretion of carrying value to redemption value | Net income | Balance as of March 31, 2024 | | :------------------------------------ | :---------------------------- | :-------------------------------------------- | :--------- | :--------------------------- | | Total shareholders' deficit | $(4,235,444) | $(720,650) | $128,029 | $(4,828,065) | - The accumulated deficit increased from $(6,375,396) at January 1, 2025, to $(6,575,309) at March 31, 2025, primarily due to net loss and accretion of carrying value[17] - Accretion of carrying value to redemption value was $(71,547) in Q1 2025, significantly lower than $(720,650) in Q1 2024[17] Unaudited Condensed Consolidated Statements of Cash Flows The unaudited condensed consolidated statements of cash flows show cash movements from operating, investing, and financing activities, indicating a net decrease in cash for both periods | Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Net cash used in operating activities | $(60,109) | $(376,201) | | Net cash used in investing activities | $(33,599) | $(300,000) | | Net cash provided by financing activities | $92,204 | $660,001 | | NET CHANGE IN CASH | $(1,504) | $(16,200) | | Cash, end of year | $2,791 | $44,240 | - Net cash used in operating activities decreased from $(376,201) in Q1 2024 to $(60,109) in Q1 2025[19] - Net cash provided by financing activities significantly decreased from $660,001 in Q1 2024 to $92,204 in Q1 2025[19] Notes to Unaudited Condensed Consolidated Financial Statements These notes provide detailed information on the company's organization, accounting policies, IPO, private placement, related party transactions, shareholders' deficit, segment information, commitments, contingencies, income taxes, and subsequent events NOTE 1 – ORGANIZATION AND BUSINESS BACKGROUND Inception Growth Acquisition Limited is a blank check company formed to effect a business combination, focusing on Asian markets (excluding China), with non-operating income from its Trust Account - The Company is a blank check company incorporated on March 4, 2021, aiming for a Business Combination, with a focus on businesses connected to the Asian market (excluding China)[21][22] - As of March 31, 2025, the Company had not commenced any operations and will not generate operating revenues until after a Business Combination. Non-operating income is derived from interest on Initial Public Offering proceeds[23] - The deadline to complete a business combination has been extended multiple times, currently set for June 13, 2025. Failure to complete by this date (unless further extended) will trigger liquidation[64] - The company has a cash balance of $2,791 and a working capital deficit of $4,295,045 as of March 31, 2025, raising substantial doubt about its ability to continue as a going concern[62][65] - The Company entered into a binding letter of intent for a business combination with AgileAlgo Pte Ltd. on June 12, 2023, and a Business Combination Agreement on September 12, 2023, with an aggregate consideration of $160,000,000[39][45] NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This section outlines significant accounting policies, including U.S. GAAP basis, consolidation, emerging growth company status, estimates, and specific accounting treatments for various financial items - The financial statements are prepared in accordance with U.S. GAAP and SEC rules, with interim