Financial Performance - The company recorded a net loss of $157,122 for the three months ended June 30, 2025, primarily due to general and administrative expenses of $191,738[135]. - For the three months ended June 30, 2024, the company reported a net income of $55,371, despite a loss of $126,096 from general and administrative expenses of $120,396 and other expenses[136]. - For the six months ended June 30, 2025, the company experienced a net loss of $540,222, primarily due to general and administrative expenses of $656,221[137]. - As of June 30, 2025, the company had cash of $6,517 and a working capital deficit of $3,824,762[143]. Business Combination and Mergers - The company expects to incur significant costs in pursuing acquisition plans and does not assure the success of completing a Business Combination[116]. - The company entered into a Merger Agreement with HUTURE Ltd. and other parties, implying a current equity value of Huture at $1.0 billion prior to the closing of the Mergers[123]. - Following the Mergers, each outstanding share in Huture will be cancelled in exchange for newly issued ordinary shares in PubCo at a value of $10.00 per share[123]. - The company extended the Business Combination Period to October 6, 2023, with an option to further extend to January 6, 2024, and subsequently on a monthly basis up to May 6, 2024[128]. - If the company fails to complete a business combination by September 6, 2025, it will be required to liquidate[146]. Shareholder Actions and Financial Obligations - An aggregate of 2,487,090 shares with a redemption value of approximately $25,943,773 were tendered for redemption during the special meeting on June 28, 2023[128]. - The underwriters are entitled to a deferred fee of $1,896,013 upon the completion of a business combination[150]. Tax Liabilities and Financial Risks - The company has recorded an excise tax liability of $713,887 as of June 30, 2025, due to stock redemptions, with additional penalties and interest estimated at 8% per annum[119]. - The company has evaluated various risks including inflation, rising interest rates, and geopolitical events, which may negatively impact its financial position and operations[117]. Capital Raising and Financing - The company raised gross proceeds of $50,000,000 from its IPO by selling 5,000,000 Units at $10.00 per Unit[139]. - The total gross proceeds from the over-allotment option and private placements amounted to $4,171,800 and $125,154, respectively[140]. - The company has incurred significant transaction costs related to its business combination efforts and may need additional financing to complete it[145]. - The company has no off-balance sheet financing arrangements as of June 30, 2025[147]. Stock Trading Status - The company’s common stock was suspended from trading on Nasdaq effective March 7, 2025, and is currently quoted on the over-the-counter market[133]. Accounting Standards - The company adopted new accounting standards effective for fiscal years beginning after December 15, 2023, which may impact future disclosures[152].
Aquaron Acquisition (AQU) - 2025 Q2 - Quarterly Report