Integrated Wellness Acquisition Corp (IWAC) reported its financial results for the third quarter and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, IWAC's total assets increased to $50.3 million from $47.5 million at the end of 2023, primarily due to an increase in cash held in the Trust Account, which rose to $50.3 million from $47.5 million. However, the company experienced a rise in total liabilities, which increased to $10.8 million from $8.1 million, driven by higher accrued expenses, which grew to $1.9 million from $1.2 million.

The company reported a net loss of $24,472 for Q3 2024, a stark contrast to a net income of $344,075 in Q3 2023. For the nine months ended September 30, 2024, IWAC recorded a net loss of $139,980, compared to a net income of $1,030,372 for the same period in 2023. This decline in profitability was attributed to increased operating expenses, which totaled $558,200 for Q3 2024, up from $412,058 in Q3 2023, and $1.7 million for the nine months ended September 30, 2024, down from $2.2 million in the prior year.

Interest earned on cash held in the Trust Account for Q3 2024 was $533,728, contributing to total other income of $533,728, which decreased from $756,133 in Q3 2023. The company’s cash flow from operating activities also declined, providing $895,468 for the nine months ended September 30, 2024, compared to $2.6 million in the same period of 2023.

Strategically, IWAC has been active in pursuing a business combination, entering into an Amended and Restated Business Combination Agreement with Btab Ecommerce Group, Inc. on August 26, 2024. This agreement is expected to result in IWAC becoming a wholly owned subsidiary of IWAC Holding Company Inc. (Pubco). The company has extended its deadline for completing the business combination to December 13, 2024, with additional deposits made into the Trust Account.

The company has also faced challenges, including a working capital deficit of $6.7 million as of September 30, 2024, compared to $4.1 million at the end of 2023. This situation raises concerns about IWAC's ability to continue as a going concern, necessitating potential additional capital through loans or investments. The company has recorded significant administrative expenses related to its ongoing operations, including $330,000 for the nine months ended September 30, 2024, primarily due to related party transactions.

Overall, IWAC's financial performance reflects a challenging environment as it navigates its strategic objectives while managing increased costs and operational challenges.