International Media Acquisition Corp. (IMAQ) reported its financial results for the three months ended June 30, 2024, revealing significant changes in its performance compared to the same period in 2023. The company, classified as a shell entity, has not commenced any operations since its inception on January 15, 2021, and continues to pursue a business combination.

For the quarter, IMAQ recorded a net loss of $154,867, a stark contrast to a net income of $322,616 in the prior year. This shift was attributed to increased general and administrative expenses, which rose to $220,890 from $30,827 year-over-year. The loss from operations also widened to $(270,890) from $(81,238) in the previous year. The income (loss) before provision for income taxes turned negative at $(127,181), compared to a positive $378,719 in the same quarter of 2023.

The company’s total current assets increased to $72,505 as of June 30, 2024, up from $30,000 at the end of March 2024. However, cash reserves dwindled to $247 from $1,044 during the same period. Investments held in the Trust Account rose slightly to $11,592,364, compared to $11,363,873 previously. Total assets increased to $11,664,869, while total current liabilities also rose to $6,799,501 from $6,378,420.

The accumulated deficit grew to $(14,298,805) as of June 30, 2024, from $(13,993,133) at the end of March 2024. The total stockholders’ deficit similarly increased to $(14,298,150) from $(13,992,478).

Strategically, IMAQ has faced challenges in completing a business combination, leading to a series of extensions for its deadline. The company extended its initial business combination deadline to January 2, 2025, with a $20,000 deposit required for each one-month extension. However, on July 30, 2024, IMAQ received a delisting notice from Nasdaq due to non-compliance with the requirement to complete a business combination within 36 months of its IPO, resulting in trading suspension on August 8, 2024.

In terms of financing, the company has issued several promissory notes, with total loans outstanding reaching $1,573,032 as of June 30, 2024, up from $1,062,232 in March. The company has also incurred significant professional costs to maintain its public status and anticipates ongoing transaction costs related to its business combination efforts.

Overall, IMAQ's financial position reflects a challenging environment as it navigates the complexities of completing a business combination while managing increasing operational costs and a growing deficit.