Aquaron Acquisition Corp. reported significant financial changes in its 10-Q filing for the period ending June 30, 2024. The company, classified as a shell entity, has not commenced operations and is focused on pursuing a merger in the new energy sector. As of June 30, 2024, Aquaron had total assets of $9.2 million, a substantial decrease from $32.1 million at the end of 2023, primarily due to a reduction in investments held in its Trust Account, which fell from $32.0 million to $8.9 million.

The company’s cash position improved to $211,470 from a mere $339 at the end of 2023, while total current liabilities increased to $2.3 million from $1.9 million. The accumulated deficit also widened to $(4.5 million) from $(4.3 million) over the same period. Total stockholders’ deficit increased slightly to $(4.5 million) from $(4.3 million).

In terms of operational performance, Aquaron reported a net income of $55,371 for the three months ended June 30, 2024, a decline from $311,101 in the same period of 2023. For the six months ended June 30, 2024, net income was $154,185, down from $462,907 year-over-year. General and administrative expenses significantly decreased to $120,396 for the three months ended June 30, 2024, compared to $260,468 in the prior year, reflecting cost-cutting measures.

The company’s interest income from its Trust Account also decreased, earning $360,417 in the second quarter of 2024, down from $645,451 in the same quarter of 2023. The effective tax rate for the three months ended June 30, 2024, was notably higher at 57.08%, compared to 21.19% in the previous year.

Strategically, Aquaron entered into a merger agreement with HUTURE Ltd. on July 12, 2024, after terminating a previous agreement with Bestpath on July 12, 2024. The new merger is valued at approximately $1.0 billion and is expected to close by October 6, 2024. The company has until this date to complete the merger or face mandatory liquidation.

Aquaron has faced challenges with compliance, receiving notices from Nasdaq regarding non-compliance with public holder requirements and delinquency in filing its quarterly report. The company has requested an appeal to avoid delisting. As of June 30, 2024, Aquaron had 4,553,150 shares of common stock issued and outstanding, with a working capital deficit of $1.98 million.