Iron Horse Acquisitions Corp. reported its financial results for the period ending September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

As of September 30, 2024, the company had cash of $3,084, a substantial decrease from $656,977 at the end of 2023. Total current assets also fell sharply to $71,299 from $690,134. However, marketable securities held in the Trust Account increased to $71.7 million from $69 million, reflecting a positive trend in investment performance. Total assets rose to $71.8 million, up from $69.7 million, while total liabilities increased to $4 million from $3.4 million, resulting in a total stockholders’ deficit of $(3.2 million), compared to $(2.7 million) at the end of 2023.

The company reported a loss from operations of $(290,801) for the three months ended September 30, 2024, compared to $(137,134) in the same period of 2023. For the nine months, the loss from operations was $(1 million), significantly higher than $(302,000) in the prior year. Despite these operational losses, Iron Horse achieved a net income of $465,533 for the third quarter of 2024, a turnaround from a net loss of $(137,134) in the same quarter of 2023. For the nine-month period, net income reached $1.4 million, contrasting with a net loss of $(302,000) in the previous year. This improvement was driven by interest income from marketable securities and a gain from a lawsuit settlement.

Strategically, Iron Horse entered into a business combination agreement on September 27, 2024, to acquire Zhong Guo Liang Tou Group Limited, with plans to issue between 40.9 million and 47.9 million shares of common stock to the seller. The company is under pressure to complete this business combination by December 29, 2024, or face mandatory liquidation. The agreement is subject to adjustments based on redemptions, and the company may incur a 1% excise tax on stock repurchases related to the transaction.

The company also reported a significant increase in franchise tax expenses, rising to $50,000 for Q3 2024 from $2,500 in Q3 2023. Additionally, the effective tax rate for the current quarter was 28.74%, compared to 0% in the prior year, reflecting a shift in tax obligations.

Overall, Iron Horse Acquisitions Corp. is navigating a challenging financial landscape while pursuing strategic growth through its planned acquisition, amidst concerns regarding liquidity and operational sustainability.