DT Cloud Acquisition Corporation Reports Significant Financial Changes, Net Income Recovery in Latest 10-Q Filing

DT Cloud Acquisition Corporation reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company, which was incorporated on July 7, 2022, and went public on February 23, 2024, has not yet commenced operations and is currently evaluating potential business combination candidates.

As of September 30, 2024, DT Cloud's total assets decreased dramatically to $71.7 million from $588.3 million as of December 31, 2023. This decline was primarily due to a substantial reduction in total current assets, which fell to $205.5 million from $503.3 million. Conversely, total liabilities increased significantly to $1.9 million from $731.9 million, leading to an accumulated deficit of $(1.7 million) compared to $(168.6 thousand) at the end of the previous fiscal year.

The company reported net income of $760.3 thousand for the three months ended September 30, 2024, a notable recovery from a net loss of $(5.0 thousand) in the same period of the previous year. For the nine months ended September 30, 2024, net income totaled $1.6 million, a substantial improvement from a net loss of $(5.3 thousand) in the prior year. Basic and diluted net income per ordinary share for the nine months was $0.22, compared to a loss in the previous period.

In terms of financing, DT Cloud successfully sold 6.9 million units in its IPO, generating gross proceeds of $69 million. After transaction costs of approximately $3.0 million, net proceeds from the IPO amounted to $67.8 million. The company also reported net cash provided by financing activities of $69.7 million for the nine months ended September 30, 2024.

Strategically, DT Cloud has entered into a non-binding letter of intent to acquire 100% of Shanghai Maius Pharmaceutical Technology Co., Ltd., a biopharmaceutical R&D company, on September 3, 2024. Following this, on October 22, 2024, the company signed a Business Combination Agreement involving multiple parties, including Maius Pharmaceutical Co., Ltd. The company has until February 23, 2025, to complete this business combination, with the option to extend the deadline by depositing funds into the Trust Account.

Management has expressed concerns regarding the company's ability to continue as a going concern if the business combination is not completed within the specified timeframe, highlighting the urgency of finalizing the acquisition.