GP-Act III Acquisition Corp. reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, classified as a shell entity, completed its Initial Public Offering (IPO) on May 13, 2024, selling 28,750,000 units at $10.00 each, generating gross proceeds of $287.5 million. This IPO included the full exercise of an underwriter's over-allotment option, contributing to a total of 7,000,000 Private Placement Warrants sold at $1.00 each, raising an additional $7 million.

As of September 30, 2024, GP-Act III reported total assets of $294.1 million, a substantial increase from $530,238 at the end of 2023. This growth was primarily driven by the funds placed in a Trust Account, which held $293.2 million in marketable securities, all invested in U.S. Treasury Securities. The company’s cash position improved to $513,507 from just $1,208 at the end of the previous fiscal year.

The financial performance for the third quarter of 2024 showed a net income of $3.7 million, a significant turnaround from a net loss of $616 in the same period of 2023. For the nine months ended September 30, 2024, net income reached $5.4 million, compared to a net loss of $1,933 in the prior year. The income was primarily derived from interest earned on the Trust Account, amounting to $5.7 million for the nine-month period.

Total liabilities increased to $14.6 million as of September 30, 2024, up from $628,182 at the end of 2023, largely due to the issuance of promissory notes and transaction costs associated with the IPO. The accumulated deficit also widened to $(13.7 million) from $(122,944) at the end of 2023, reflecting the operational costs incurred during the period.

The company has not yet commenced any operations and is focused on completing a business combination within 24 months of the IPO. If a business combination is not completed within this timeframe, the company will redeem all outstanding public shares at a cash price based on the Trust Account balance.

As of the reporting date, GP-Act III had 28,750,000 Class A ordinary shares and 7,187,500 Class B ordinary shares outstanding. The Class A shares are subject to redemption, which could impact the company’s future capital structure. The company is also exploring additional financing options to cover working capital needs as it moves towards its business combination goal.