Mountain Crest Acquisition Corp. V has reported a net loss of $374,454 for the fiscal year ending December 31, 2024, a significant decrease from the previous year's loss of $2,251,116. The company's financial performance reflects a reduction in operating costs, which totaled $618,486, compared to $2,654,975 in 2023. The decrease in losses was partially offset by interest income of $265,306 from investments held in the Trust Account, which was lower than the $510,728 earned in the prior year. The company has not generated any operating revenues to date, as its activities have primarily focused on identifying potential business combinations.
In terms of strategic developments, Mountain Crest entered into a Business Combination Agreement with CUBEBIO Co., Ltd. on August 29, 2024, aiming to facilitate a merger that would allow CUBEBIO to become a publicly traded entity. This agreement follows the termination of a previous business combination with AUM Biosciences in June 2023. The company has extended its deadline to complete a business combination to November 16, 2025, by making required deposits into its trust account. This extension is crucial as it allows the company additional time to finalize its merger plans.
Operationally, Mountain Crest has faced challenges with compliance regarding Nasdaq listing requirements. The company received multiple notices from Nasdaq regarding its market value of listed securities, which fell below the required thresholds. However, as of June 5, 2024, it regained compliance with the market value requirement. The company has also been proactive in addressing its financial obligations, including the conversion of promissory notes into shares of common stock, which has helped manage its liabilities.
As of December 31, 2024, Mountain Crest held $1,157,312 in marketable securities within its Trust Account, which includes interest income. The company has also engaged in various financing activities, including issuing unsecured promissory notes to its Sponsor, which are intended to support working capital needs. The company’s liquidity position remains a concern, as it must ensure sufficient funds are available to meet operational costs and complete its business combination.
Looking ahead, Mountain Crest's management has expressed optimism about the potential merger with CUBEBIO, which is expected to enhance its market presence and operational capabilities. However, the company acknowledges the inherent risks associated with completing a business combination and the uncertainties surrounding its ability to continue as a going concern if it fails to finalize a merger by the extended deadline. The management is committed to enhancing its internal controls and financial reporting processes to navigate these challenges effectively.
About Mountain Crest Acquisition Corp. V
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