As of September 30, 2024, Chain Bridge I reported significant changes in its financial performance and position compared to the previous fiscal period. The company, classified as a shell entity, had total current assets of $582,871, a substantial increase from $7,046 as of December 31, 2023. Cash reserves surged to $428,625 from $3,898, while investments held in the Trust Account decreased to $11.5 million from $45.4 million. Total assets fell to $12.1 million, down from $45.4 million, reflecting a broader decline in financial resources.

Total current liabilities rose sharply to $1.1 million from $68,495, contributing to an increase in total liabilities to $2.5 million, compared to $186,820 at the end of 2023. Consequently, the shareholders’ deficit expanded to $(1.8 million) from $(79,774), indicating a deteriorating equity position.

In terms of profitability, Chain Bridge I reported a net income of $624,000 for the three months ended September 30, 2024, a turnaround from a net loss of $472,000 in the same period of 2023. However, for the nine months ended September 30, 2024, the company recorded a net loss of approximately $1.1 million, contrasting sharply with a net income of $4.1 million for the same period in 2023. General and administrative expenses increased significantly, totaling $1.5 million for the nine months ended September 30, 2024, compared to $934,000 in the prior year.

Strategically, the company has been active in pursuing a business combination. On December 29, 2023, Chain Bridge I consummated a Securities Purchase Agreement with Fulton AC, acquiring Class B ordinary shares and warrants. The company is currently engaged in a Business Combination Agreement with Phytanix Bio, expected to close in Q4 2024, pending shareholder approvals. This agreement includes the merger of both entities, with an aggregate consideration based on an equity value of $58 million.

The company has faced challenges, including a notice from Nasdaq regarding non-compliance with listing criteria, leading to the cessation of trading on the Nasdaq Global Market as of December 4, 2023. Following shareholder approval on November 14, 2024, the deadline for completing a business combination was extended to November 15, 2025.

As of September 30, 2024, Chain Bridge I had 1,006,683 Class A ordinary shares subject to possible redemption, down from 4,151,134 at the end of 2023. The company continues to navigate liquidity challenges, raising concerns about its ability to continue as a going concern.