Inception Growth Acquisition Limited, a blank check company incorporated on March 4, 2021, has reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company has not commenced any operations and continues to rely on the sale of securities and loans from officers and directors to fund its activities.
As of September 30, 2024, Inception Growth reported total assets of $14.7 million, a substantial decrease from $32.1 million as of December 31, 2023. This decline is primarily attributed to cash and investments held in the trust account, which fell from $32.1 million to $14.7 million during the same period. The company’s cash balance also decreased significantly, from $60.4 million at the end of 2023 to just $11,295 by September 30, 2024. Total liabilities increased to $5.9 million from $4.3 million, with current liabilities rising from $2.0 million to $3.6 million.
The company reported a net income of $814 for the three months ended September 30, 2024, compared to $62,302 for the same period in 2023. For the nine months ended September 30, 2024, net income was $262,934, down from $317,367 in the prior year. Other income for the nine-month period also decreased significantly, from $2.3 million in 2023 to $985,835 in 2024. The effective tax rate for the nine months ended September 30, 2024, was 22.62%, a decrease from 47.98% in the same period of 2023.
In terms of strategic developments, the company has extended its deadline to complete a business combination multiple times, with the latest extension pushing the deadline to December 13, 2024. This extension was facilitated by deposits into the trust account, totaling $50,000 each month since June 2024. The company has also entered into various agreements, including a Standby Equity Purchase Agreement and a Loan Conversion Agreement, to secure additional funding and facilitate its acquisition plans.
Despite these efforts, Inception Growth has expressed substantial doubt about its ability to continue as a going concern if it cannot complete a business combination by the deadline. The company has incurred significant costs related to its acquisition plans and anticipates that it will not have sufficient cash to meet its operational needs in the coming year.
About Inception Growth Acquisition Ltd
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