JAWS Mustang Acquisition Corporation reported its financial results for the period ending September 30, 2024, highlighting significant changes in its financial position and performance compared to the previous fiscal period. As of September 30, 2024, the company had total assets of $16.1 million, a decrease from $23.2 million at the end of 2023. This decline was primarily attributed to a reduction in cash held in the trust account, which fell from $23.0 million to $16.0 million, and a decrease in total current assets from $189.9 million to $69.6 million.

The company’s cash position outside the trust account was notably low, with only $34,688 available as of September 30, 2024, compared to $178,119 at the end of 2023. The accumulated deficit increased to $(7.0 million) from $(6.4 million) over the same period, indicating ongoing financial challenges.

In terms of operational performance, JAWS Mustang reported a net income of $2.9 million for the three months ended September 30, 2024, an increase from $1.2 million in the same period of 2023. However, for the nine months ended September 30, 2024, the net income significantly decreased to $110,495 from $5.8 million in the prior year. The company attributed the quarterly net income increase to a $2.98 million change in the fair value of warrant liabilities, offset by $198,698 in general and administrative expenses, which were reduced from $397,411 in the prior year.

The company has faced liquidity concerns, with a working capital deficit of $4.7 million as of September 30, 2024. It has also engaged in several financial maneuvers, including issuing a working capital loan of $500,000 to its sponsor and a promissory note for the same amount, both of which are due upon the consummation of a business combination.

Strategically, JAWS Mustang announced a non-binding letter of intent for a potential business combination with Starwood Capital Entities, which includes properties in Manhattan, Brooklyn, and the UK. The completion of this business combination is contingent upon various approvals and negotiations. The company has until December 4, 2024, to finalize this transaction; otherwise, it will face mandatory liquidation.

Additionally, the company’s securities were delisted from the NYSE American and are now traded on the OTC Pink Open Market, which may limit market quotations and liquidity for shareholders. The company is also subject to new SEC rules that could impact its ability to complete business combinations in the future.