ESH Acquisition Corp. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, the company had total assets of $125.6 million, an increase from $122.3 million at the end of 2023. The Trust Account held investments amounting to $123.8 million, up from $120.0 million, primarily in U.S. Treasury securities. However, cash decreased to $1.5 million from $1.9 million, reflecting cash withdrawals for tax obligations.

For the three months ended September 30, 2024, ESH Acquisition Corp. reported net income of $1.1 million, compared to $898,220 in the same period of 2023. The nine-month net income also saw a substantial increase to $3.2 million from $910,249 year-over-year. This growth was driven by interest income from investments in the Trust Account, which rose to $4.7 million for the nine months ended September 30, 2024, compared to $1.7 million in the prior year.

General and administrative expenses for the three months ended September 30, 2024, were $156,771, a decrease from $192,915 in the same quarter of 2023. However, expenses for the nine-month period increased to $550,758 from $235,785, indicating a rise in operational costs as the company prepares for its Initial Business Combination.

The company’s effective tax rate improved to 23.5% for the three months ended September 30, 2024, down from 29.8% in the prior year, contributing to the increase in net income. Basic net income per share for the three months was $0.07, up from $0.06 in 2023.

Strategically, ESH Acquisition Corp. is classified as a shell company and is required to complete its Initial Business Combination by December 16, 2024. A special meeting of stockholders is scheduled for December 3, 2024, to vote on an Extension Amendment Proposal, which, if approved, would allow for up to twelve monthly extensions for completing the business combination until December 16, 2025. The company has indicated that failure to complete the business combination will lead to winding up operations and redeeming public shares based on the Trust Account balance.

As of September 30, 2024, ESH Acquisition Corp. had 11,787,500 shares of Class A common stock and 2,875,000 shares of Class B common stock outstanding. The Class A common stock is subject to possible redemption, valued at approximately $122.8 million. The company continues to evaluate the impact of global economic uncertainties on its financial position as it moves forward with its strategic objectives.