Hudson Acquisition I Corp. Reports Financial Developments, Pursues Business Combination Amid Regulatory Challenges

Hudson Acquisition I Corp. reported significant financial developments in its 10-Q filing for the period ending September 30, 2024. The company, which has not yet commenced core operations, continues to focus on fundraising and preparing for a potential business combination.

As of September 30, 2024, Hudson Acquisition I Corp. had total assets of $1,547,449, with current assets amounting to $433,755. The company reported total liabilities of $7,350,830, resulting in a stockholders' deficit of $(6,697,147). The accumulated deficit stood at $(6,697,356).

For the three months ended September 30, 2024, Hudson Acquisition I Corp. incurred a net loss of $(488,195), compared to a net loss of $(443,146) for the same period in 2023. General and administrative expenses decreased to $306,524 from $678,504 year-over-year. Interest earned on marketable securities held in the Trust Account was $19,751, a significant decline from $393,358 in the prior year. The net loss attributable to common stockholders for the same quarter was $(496,591), down from $(728,504) in 2023.

For the nine months ended September 30, 2024, the company reported a net loss of $(853,947), a substantial increase from $(9,767) in the same period of 2023. General and administrative expenses for this period were $776,033, down from $1,237,240 in the previous year. Interest income from marketable securities also decreased to $569,338 from $1,940,473.

Cash used in operating activities for the nine months ended September 30, 2024, was $(961,938), compared to $(610,200) in 2023. The company reported a net cash increase of $367,055 during this period, contrasting with a decrease of $(110,585) in the prior year.

Strategically, Hudson Acquisition I Corp. has been actively pursuing a business combination, recently entering into a proposed transaction with Aiways Automobile Europe GmbH. The company has extended its deadline for completing a business combination multiple times, with the latest extension allowing until October 18, 2025. However, the company faces challenges, including a notice from Nasdaq regarding potential delisting due to non-compliance with minimum market value requirements.

As of September 30, 2024, the company had $378,755 in cash outside of its Trust Account, which holds $1,109,108. The company has also accrued significant tax liabilities, including $941,000 in income tax and $719,176 in excise tax.

Overall, Hudson Acquisition I Corp. continues to navigate financial challenges while preparing for its future business combination, with a focus on managing expenses and compliance with regulatory requirements.