CONX Corp. reported significant financial developments in its 10-Q filing for the period ending June 30, 2024, following its business combination completed on May 1, 2024. The company’s total assets surged to $196.2 million, a substantial increase from $22.0 million at the end of 2023. Current assets also rose dramatically to $173.0 million, primarily driven by an increase in cash and cash equivalents, which reached $172.8 million compared to just $8,162 at the end of the previous year.
For the three months ended June 30, 2024, CONX Corp. generated total income of $500,402, marking a significant increase from the same period in 2023, when it reported no revenue. The company recorded a net income of $4.5 million for the quarter, a turnaround from a net loss of $920,206 in the prior year. This positive shift was attributed to a change in the fair value of derivative warrant liabilities, which contributed $4.5 million to income.
For the six-month period ending June 30, 2024, total income remained at $500,402, with net income reaching $6.9 million, compared to a net loss of $2.1 million in the same period of 2023. The company’s basic net income per share for the six months was $0.27, a significant improvement from a loss of $0.08 per share in the previous year.
The business combination involved the acquisition of a commercial real estate property in Littleton, Colorado, for $26.75 million, which is now leased back to the seller under a triple-net lease agreement. The lease has an initial term of approximately 10 years with a base rent of $228,500 per month, escalating at 2% annually.
In terms of financing, CONX Corp. issued 17,391,300 shares of Series A Convertible Preferred Stock, generating approximately $200 million. The company also reported a decrease in its accumulated deficit to $(9.1 million) as of June 30, 2024, from $(40.0 million) at the end of 2023.
Despite these positive developments, the company acknowledged a material weakness in its internal controls over financial reporting, which it plans to address through enhanced evaluations and consultations with third-party professionals. The company’s Class A common stock and public warrants are now traded on the over-the-counter market following a delisting from Nasdaq, effective July 29, 2024.
About CONX Corp.
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.