FTAC Emerald Acquisition Corp. reported significant financial changes in its 10-Q filing for the period ending September 30, 2024. The company, classified as a shell entity and an emerging growth company, has not yet commenced operations and primarily generates non-operating income from interest on its Trust Account investments.

As of September 30, 2024, FTAC Emerald held cash of $20,439, a decrease from $29,844 at the end of 2023. Total current assets fell sharply to $159,885 from $306,059, while total assets decreased to $52.2 million from $166 million. The Trust Account investments also saw a significant decline, dropping to approximately $52 million from $165.7 million. Current liabilities increased to $6.4 million from $3.4 million, contributing to a total stockholders’ deficit of $(7.4 million), up from $(4.3 million) at the end of 2023.

For the three months ended September 30, 2024, FTAC reported a net loss of $(397,026), contrasting sharply with a net income of $1.2 million for the same period in 2023. Interest income from the Trust Account fell to $668,748 from $3.3 million year-over-year. For the nine-month period, the company recorded a net loss of $(1.4 million), compared to a net income of $4.2 million in the prior year. The decline in profitability was attributed to reduced interest income and increased expenses.

The company has been actively managing its capital structure, with notable redemptions of Class A common stock. In January 2024, stockholders redeemed 10,872,266 shares for approximately $115.5 million, following a previous redemption of 9,239,192 shares in September 2023. As of September 30, 2024, 4,757,884 shares of Class A common stock remained subject to redemption, down from 15,630,150 shares at the end of 2023.

Strategically, FTAC announced a merger agreement with Fold, Inc. on July 24, 2024, where a wholly-owned subsidiary will merge with Fold. The merger consideration is based on Fold’s pre-money equity value of $365 million, with potential adjustments linked to Bitcoin's market performance. The company has until December 20, 2024, to complete this business combination or face mandatory liquidation.

Additionally, FTAC has entered into a Subscription Agreement with Polar Multi-Strategy Master Fund, securing up to $550,000 to cover working capital needs. As of September 30, 2024, the company had $3 million outstanding under this agreement, reflecting an increase from $2.025 million at the end of 2023. The company continues to face challenges in maintaining liquidity and meeting its operational goals as it approaches its business combination deadline.