Breeze Holdings Acquisition Corp. Reports Q3 2024 Net Income of $2.19 Million, Pursues Merger with YD Biopharma

Breeze Holdings Acquisition Corp. reported its financial results for the third quarter of 2024, revealing a net income of $2.19 million for the three months ended September 30, 2024, compared to a net loss of $1.08 million for the same period in 2023. The company’s operating costs decreased to $260,084 from $369,952 year-over-year. For the nine months ending September 30, 2024, Breeze recorded a net loss of $2.72 million, an improvement from a loss of $3.24 million in the prior year. The increase in net income for the quarter was primarily driven by a gain of $2.30 million from the change in fair value of warrant liabilities, alongside interest income of $135,536.

The company’s balance sheet as of September 30, 2024, showed total assets of $10.77 million, a decline from $13.24 million at the end of 2023. Current liabilities increased significantly to $10.09 million from $8.08 million, largely due to an increase in accounts payable and accrued expenses. Breeze's stockholders' deficit also widened to $13.35 million from $9.68 million, reflecting ongoing operational challenges and the impact of redemptions of common stock.

Strategically, Breeze has been navigating a complex landscape following the termination of its merger agreement with TV Ammo in August 2024. The company is now pursuing a merger with YD Biopharma, with a definitive agreement signed on September 24, 2024. This merger is expected to provide a pathway for Breeze to complete its business combination, which is a critical requirement for the company to continue its operations. The merger agreement is set to be voted on by stockholders on December 23, 2024.

Operationally, Breeze has faced challenges in maintaining liquidity, with cash held outside the trust account dropping to $2 as of September 30, 2024. The company reported a working capital deficit of $9.82 million, indicating significant financial strain. The trust account, which holds $10.58 million, is intended to fund the business combination and operational expenses. The company has also relied on loans from its sponsor to cover operational costs, with total amounts owed to the sponsor reaching $9.28 million.

Looking ahead, Breeze Holdings Acquisition Corp. faces substantial uncertainty regarding its ability to complete a business combination by the extended deadline of December 26, 2024. The company has indicated that it may need to raise additional funds to meet its operational needs and complete the merger with YD Biopharma. The ongoing geopolitical tensions and market conditions could further complicate these efforts, raising concerns about the company's future viability if it fails to secure a successful merger or additional financing.