Cartica Acquisition Corp Reports Significant Financial Decline, Working Capital Deficit, and Business Combination Deadline Extension

As of September 30, 2024, Cartica Acquisition Corp reported significant financial changes compared to the previous fiscal period. The company, classified as a shell entity, had total assets of $25.99 million, a substantial decrease from $46.40 million as of December 31, 2023. This decline was primarily attributed to a reduction in cash and marketable securities held in the Trust Account, which fell from $46.31 million to $25.94 million during the same period.

The company’s current assets also decreased from $97.54 million to $50.29 million, while total current liabilities surged from $820,768 to $6.69 million, leading to a working capital deficit of $6.64 million. The total liabilities increased dramatically from $1.80 million to $11.07 million, reflecting a significant rise in accounts payable and accrued expenses, which rose from $570,768 to $5.03 million.

For the three months ended September 30, 2024, Cartica reported a net income of $60,908, a sharp decline from $767,348 in the same period of 2023. The nine-month results showed a net loss of $7.82 million, contrasting with a net income of $5.85 million for the same period in the previous year. Operating and formation costs for the nine months reached $5.68 million, up from $1.41 million in 2023, indicating increased expenditures as the company prepares for its business combination.

Interest income from cash and marketable securities also saw a significant drop, with $1.26 million earned in the nine months of 2024 compared to $6.50 million in 2023. The change in fair value of warrant liabilities contributed to the financial results, with a loss of $3.40 million reported for the nine months ended September 30, 2024, compared to a gain of $548,000 in the prior year.

Strategically, Cartica has extended its business combination deadline to January 7, 2025, and entered into a Business Combination Agreement with Nidar Infrastructure Limited and Yotta Data and Cloud Limited. This agreement includes two mergers, with Nidar being a data center provider in India. The company has also faced liquidity concerns, indicating that it may need to raise additional capital to meet its working capital needs.

As of September 30, 2024, Cartica had 6,999,422 Class A ordinary shares and 1,000,000 Class B ordinary shares outstanding. The company’s financial position raises substantial doubt about its ability to continue as a going concern if the business combination is not completed by the deadline.