Maquia Capital Acquisition Corporation Reports Q3 2024 Financial Results with Net Loss of $23,661

Maquia Capital Acquisition Corporation reported its financial results for the third quarter of 2024, revealing a net loss of $23,661 for the three months ended September 30, 2024, compared to a net loss of $1,121,231 for the same period in 2023. The company’s general and administrative expenses increased to $357,084 from $293,713 year-over-year. However, the company experienced a significant turnaround in its nine-month results, posting a net income of $782,822 for the nine months ended September 30, 2024, compared to a net loss of $1,210,406 for the same period in 2023. This improvement was primarily driven by unrealized and realized gains on investments held in the trust account, which totaled $452,995, and a favorable change in the fair value of derivative liabilities.

The company’s total assets decreased significantly to $1,834,612 as of September 30, 2024, down from $12,582,910 at the end of 2023. This decline was largely attributed to a reduction in investments held in the trust account, which fell from $11,957,157 to $1,603,257. The company also reported a working capital deficiency of $3,958,686, reflecting ongoing challenges in liquidity. As of the reporting date, Maquia had 135,663 shares of Class A common stock outstanding, down from 1,090,718 shares at the end of 2023, following multiple redemption events by shareholders.

Strategically, Maquia has faced challenges in executing its business combination plans. The company terminated its previous business combination agreement with Immersed, Inc. on May 20, 2024, and subsequently entered into a new agreement with Velocium, Inc. on July 15, 2024. However, the company’s ability to complete a business combination is constrained by a deadline extension to January 7, 2025, approved by shareholders on August 7, 2024. The company must identify a suitable target and secure shareholder approval before this deadline to avoid liquidation.

Operationally, Maquia has not generated any revenue to date, as its activities have been focused on identifying a target for its initial business combination. The company continues to incur expenses related to its public company status and due diligence efforts. As of September 30, 2024, Maquia had $42,479 in cash and restricted cash, with liquidity needs primarily met through funds held outside the trust account. The company has indicated that it may require additional financing to complete a business combination or to address potential redemptions of Class A common stock.

Looking ahead, Maquia's management has expressed concerns regarding its ability to continue as a going concern, given the liquidity challenges and the need to complete a business combination by the extended deadline. The company has not established a plan to extend this deadline further, raising doubts about its operational viability in the coming months. The financial statements reflect these uncertainties, with no adjustments made to asset or liability valuations based on the potential outcomes of the ongoing business combination efforts.