Black Hawk Acquisition Corporation Reports Financial Developments, Net Loss in Latest Quarter

Black Hawk Acquisition Corporation, classified as a shell company, reported significant financial developments in its 10-Q filing for the period ending August 31, 2024. The company, which went public on March 22, 2024, through an initial public offering (IPO) of 6,900,000 units at $10.00 per unit, generated gross proceeds of $69 million. Additionally, a private placement of 235,500 units raised another $2.36 million, bringing total gross proceeds to $71.36 million.

As of August 31, 2024, Black Hawk's total assets amounted to $71.37 million, a substantial increase from $263,000 as of November 30, 2023. This growth was primarily driven by the funds raised during the IPO and private placement, with $70.98 million held in a Trust Account, designated for investment in U.S. government treasury bills or money market funds. The company reported cash of $323,846, up from $125,100 at the end of the previous fiscal period.

Despite these positive financial indicators, Black Hawk reported a net loss of $(30,701) for the three months ended August 31, 2024, while net income for the nine-month period was $1.16 million. The net income for the three months was $883,767, primarily attributed to interest income of $968,670, offset by general and administrative expenses and related party fees. The basic and diluted net income per share for the three months was $0.10, consistent across redeemable and non-redeemable shares.

The company has not yet commenced any business operations and does not expect to generate operating revenues until after completing a business combination. Management has expressed substantial doubt regarding the company's ability to continue as a going concern, citing uncertainties in completing a business combination within the designated period. If a business combination is not achieved, the board may initiate voluntary liquidation.

Black Hawk's total current liabilities decreased to $50,509 from $256,853, while total shareholders' equity showed a deficit of $(2.07 million) compared to a slight surplus of $6,147 in the previous period. The company has incurred significant professional costs to maintain its public status and anticipates ongoing expenses related to pursuing a business combination.

In terms of governance, the company has established an Administrative Services Agreement with its Sponsor, incurring $10,000 monthly for administrative services. The company’s internal controls over financial reporting were deemed ineffective as of August 31, 2024, with no material changes reported during the fiscal quarter.