Cartica Acquisition Corp Reports $10.97 Million Net Loss and Management Changes in 10-K Filing

Cartica Acquisition Corp has reported significant financial developments in its latest 10-K filing for the fiscal year ending December 31, 2024. The company, which is a special purpose acquisition company (SPAC), recorded a net loss of $10.97 million, a notable decline from a net income of $6.38 million in the previous year. This shift is attributed primarily to a change in the fair value of warrant liabilities, which accounted for a loss of $6.42 million, alongside operating and formation costs that rose to $6.11 million from $2.04 million in 2023. The company generated $1.56 million in interest income from its trust account, a decrease from $7.11 million the previous year, reflecting a shift in investment strategy.

In terms of operational changes, Cartica Acquisition Corp has undergone a significant transformation in its management and strategic direction. Following a membership interest purchase agreement on May 23, 2023, the company saw a change in its board of directors and executive leadership. Suresh Guduru was appointed as the new Chief Executive Officer and Chairman, while C. Brian Coad continues to serve as Chief Operating Officer and Chief Financial Officer. The company has also shifted its focus towards technology firms, particularly in the context of its proposed business combination with Nidar Infrastructure Limited, a data center provider in India, which was formalized in a business combination agreement on June 24, 2024.

Cartica Acquisition Corp has faced challenges in meeting Nasdaq's 36-month requirement for SPACs to complete a business combination. As of January 4, 2025, the company had not finalized a business combination, leading to a suspension of its securities from Nasdaq on January 13, 2025. Following this suspension, the company's units, public shares, and warrants began trading on the Pink tier of the OTC market, which is characterized by lower liquidity and trading volume compared to Nasdaq. The company has since sought to extend its business combination deadline to October 7, 2025, with shareholder approval obtained for this extension.

As of December 31, 2024, Cartica Acquisition Corp held approximately $26.36 million in its trust account, down from $46.31 million the previous year, primarily due to shareholder redemptions. The company has also incurred significant liabilities, including $7.40 million in warrant liabilities and $2.16 million in promissory notes related to its sponsor. The total liabilities amounted to $14.61 million, compared to $1.80 million in the prior year. The company’s management has expressed concerns regarding its liquidity and ability to continue as a going concern, particularly if it fails to complete a business combination by the extended deadline.

Looking ahead, Cartica Acquisition Corp aims to leverage its management team's extensive experience and networks to identify and complete a business combination with a suitable technology partner. The company remains focused on executing its strategy while navigating the complexities of the current market environment, including potential regulatory changes and economic uncertainties. The outcome of the proposed business combination with Nidar will be pivotal for the company's future trajectory and shareholder value.