Direct Selling Acquisition Corp. (DSAQ) reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company’s current assets plummeted to $12.4 million from $472.3 million as of December 31, 2023, primarily due to a drastic reduction in cash, which fell to $9.0 million from $467.3 million. The Trust Account also saw a decline, with cash decreasing to $31.9 million from $62.6 million.
Total liabilities increased to $22.9 million from $19.4 million, while the accumulated deficit widened to $(22.7 million) from $(18.3 million). The total stockholders’ deficit also grew, reaching $(22.7 million) compared to $(18.3 million) at the end of the previous fiscal year.
For the three months ended September 30, 2024, DSAQ reported a net income of $2.8 million, a significant increase from $14,315 in the same period of 2023. This was driven by total other income, which surged to $3.1 million from $556.0 thousand year-over-year. However, for the nine months ended September 30, 2024, the company recorded a net loss of $(2.3 million), contrasting with a net income of $444.5 thousand for the same period in 2023.
Operating costs decreased to $265.5 thousand for the third quarter of 2024, down from $386.7 thousand in 2023, and totaled $2.7 million for the nine months, compared to $3.2 million in the prior year. The basic and diluted net income per share for the third quarter was $0.27, a recovery from a loss of $(0.09) in the same quarter of 2023.
Strategically, DSAQ has been active in pursuing a business combination, entering into an agreement with Aeroflow Urban Air Mobility Private Limited and others on January 17, 2024. The anticipated aggregate consideration for the pre-closing reorganization is approximately $150 million. The company has until November 28, 2024, to complete this initial business combination, with provisions for monthly extensions.
The company also faced challenges, including a working capital deficit of $14.1 million and substantial redemptions from its Trust Account, totaling $32.1 million in the nine months ended September 30, 2024, down from $182.5 million in the previous year. The company’s liquidity remains a concern, with substantial doubt about its ability to continue as a going concern if the business combination is not consummated.
About Direct Selling Acquisition Corp.
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