APx Acquisition Corp. I reported its financial results for the quarter ending September 30, 2024, revealing significant changes in its financial position compared to the previous fiscal period. As of September 30, 2024, the company had total assets of $66.2 million, an increase from $62.7 million at the end of 2023. However, total liabilities surged to $4.8 million from $1.6 million, leading to a notable increase in shareholders' deficit from $(1.6 million) to $(4.8 million).
For the three months ended September 30, 2024, APx reported a net income of $2.1 million, down from $3.6 million in the same period of 2023. The nine-month net income also decreased significantly to $250,870 from $3.5 million year-over-year. The decline in profitability was attributed to increased operating costs, which rose to $738,095 in Q3 2024 from $188,108 in Q3 2023. The company earned $838,159 in interest from its Trust Account investments during the quarter, compared to $614,147 in the prior year.
The company’s cash position was precarious, with only $168 remaining as of September 30, 2024, down from $8,167 at the end of 2023. This led to a working capital deficit of $3.97 million, raising concerns about liquidity. Management expressed doubts about the company's ability to continue as a going concern, emphasizing the need for a business combination by December 9, 2024, to avoid liquidation.
Strategically, APx has been navigating compliance issues with Nasdaq, having received multiple deficiency letters regarding its reporting obligations. The company has submitted compliance plans and received extensions, but it faces potential delisting of its warrants and units if it fails to meet Nasdaq requirements.
In terms of operational developments, APx entered into a Business Combination Agreement with OmnigenicsAI Corp on March 25, 2024, although the proposed acquisition of MultiplAI Health Ltd was terminated in August 2024. The company has also amended its advisory agreement with EarlyBirdCapital, Inc., allowing for partial payment in shares instead of cash.
Overall, APx Acquisition Corp. I's financial performance reflects a challenging environment, with declining revenues, increased liabilities, and ongoing compliance hurdles, all of which underscore the urgency of completing a business combination.
About APx Acquisition Corp. I
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