International Media Acquisition Corp. (IMAQ) reported its financial results for the three and six months ended September 30, 2024, highlighting significant changes in its financial position compared to the previous fiscal period. As of September 30, 2024, total current assets increased to $47,805 from $30,000 as of March 31, 2024. Total assets rose to $11.8 million, up from $11.4 million, while total current liabilities also increased to $7.1 million from $6.4 million. The stockholders’ deficit widened to $(14.6 million) from $(14.0 million).

The company reported a loss from operations of $(202,957) for the three months ended September 30, 2024, a notable improvement from a loss of $(604,743) in the same period of 2023. For the six months ended September 30, 2024, the loss from operations was $(473,847), down from $(685,981) year-over-year. However, net losses increased to $(325,170) for the six months ended September 30, 2024, compared to $(71,640) in the prior year, primarily due to a decrease in interest and dividend income from investments held in the trust account, which fell to $297,405 from $525,846.

Cash at the end of the reporting period was $0, down from $1,044 as of March 31, 2024, reflecting a working capital deficit of $7.0 million. The company has raised concerns regarding its ability to continue as a going concern, emphasizing the need to complete a business combination by January 2, 2025, or face potential liquidation.

Strategically, IMAQ terminated its Stock Purchase Agreement with Risee Entertainment Holdings and Reliance Entertainment Studios on October 26, 2023, with no liabilities incurred. Subsequently, on November 10, 2023, the company entered into a Securities Purchase Agreement with JC Unify Capital, selling a significant portion of its founder shares and private placement units. The company also issued several unsecured promissory notes totaling approximately $2.4 million to support its operations and business combination efforts.

The company faced a delisting notice from Nasdaq on July 30, 2024, due to non-compliance with the requirement to complete a business combination within 36 months of its IPO. Trading of its securities was suspended on August 8, 2024, and is now quoted on OTC markets. Additionally, IMAQ recorded an excise tax liability of $113,689 due to stockholder redemptions, which is due by October 31, 2024.

Overall, while IMAQ has made strides in reducing operational losses, it continues to face significant financial challenges and strategic hurdles as it seeks to complete a business combination.