Flag Ship Acquisition Corporation, classified as a shell company, reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company’s total assets decreased to $70.1 million from $150.5 million as of December 31, 2023. However, total current assets remained relatively stable at $120.8 thousand, compared to $120.5 thousand in the previous period. Total liabilities surged to $2.05 million, up from $433.6 thousand, while current liabilities decreased to $328.0 thousand from $433.6 thousand.

The company’s accumulated deficit increased to $(1.93 million) from $(308.0 thousand), and total shareholders’ deficit rose to $(1.93 million) from $(283.0 thousand). Despite these challenges, Flag Ship reported a net income of $488.3 thousand for the three months ended September 30, 2024, a notable recovery from a net loss of $(45.8 thousand) in the same period of 2023. For the nine months ended September 30, 2024, the net income was $432.5 thousand, compared to a net loss of $(45.8 thousand) in the prior year.

The company generated other income of $891.3 thousand in Q3 2024, primarily from investments held in a Trust Account, which was a significant increase from $0 in the same quarter of 2023. The basic and diluted net income per share for the three months ended September 30, 2024, was $0.06, compared to a loss of $(0.03) per share in the previous year.

Flag Ship completed its Initial Public Offering (IPO) on June 20, 2024, selling 6.9 million units at $10.00 per unit, generating gross proceeds of $69.0 million. The IPO included an over-allotment option that was fully exercised, adding $9.0 million to the total. The company also engaged in a private placement, raising an additional $2.4 million. Transaction costs related to the IPO totaled $3.4 million.

Strategically, Flag Ship entered into a Merger Agreement with Great Rich Technologies Limited on October 21, 2024, which will involve a share exchange upon consummation. The company has a maximum of 24 months to complete this business combination, with provisions for extensions through additional deposits into the Trust Account.

As of September 30, 2024, Flag Ship had cash of $215, a significant decrease from $116.2 thousand at the end of 2023, and a working deficit of $207.2 thousand. The company has incurred substantial professional costs to maintain its public status and anticipates further transaction costs in pursuit of a business combination.