Plum Acquisition Corp. III, formerly known as Alpha Partners Technology Merger Corp., reported significant financial changes in its 10-Q filing for the period ending June 30, 2024. The company, classified as a shell entity and an emerging growth company, has not yet commenced operations and primarily generates non-operating income from interest and dividends on investments held in its Trust Account.
As of June 30, 2024, the company’s total assets decreased to $25.2 million from $157.6 million at the end of 2023. This decline was primarily due to a substantial reduction in investments held in the Trust Account, which fell from $157.3 million to $25.1 million. Current assets also decreased significantly, from $250.9 million to $111.0 million, while cash increased to $49.4 million from zero at the end of the previous fiscal year.
The company reported a net income of $407,059 for the second quarter of 2024, a sharp decline from $3.9 million in the same period of 2023. This decrease was attributed to a significant drop in interest and dividend income, which fell from $3.5 million to $283,319, alongside increased operating costs of $599,810 compared to $353,926 in the prior year. For the first half of 2024, net income was $258,823, down from $6.1 million in the first half of 2023.
Operating and formation costs for the first half of 2024 rose to $995,885 from $804,694 in the previous year. The company also reported a loss from operations of $(995,885) for the first half of 2024, compared to $(804,694) in the same period of 2023.
In terms of strategic developments, the company extended its business combination deadline to January 30, 2025, following shareholder approvals. This extension was necessary after significant redemptions of Class A ordinary shares, totaling approximately $134.1 million in January 2024, which left about $24.6 million in the Trust Account. The company has also entered into a new business combination agreement with Tactical Resources Corp. as of August 22, 2024.
The company’s working capital deficit stood at $1.1 million as of June 30, 2024, raising concerns about its ability to continue as a going concern. Management has expressed substantial doubt regarding the company's ability to sustain operations for at least the next 12 months without completing a business combination. The company has also identified material weaknesses in its internal controls, prompting plans for enhancements in its review processes and accounting practices.
About Alpha Partners Technology Merger Corp.
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