Oak Woods Acquisition Corporation, a blank check company incorporated in the Cayman Islands, reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company, which has not yet commenced operations beyond its merger activities, is in the process of merging with Huajin (China) Holdings Limited, a transaction valued at $250 million.

As of September 30, 2024, Oak Woods reported total current assets of $16.7 million, a substantial increase from $434,271 at the end of 2023. Total assets rose to $64.0 million, compared to $61.2 million at the end of the previous fiscal year. However, total current liabilities surged to $19.9 million from $816,475, leading to a total liabilities increase to $21.9 million from $2.8 million. The accumulated deficit also widened to $(5.3 million) from $(636,353) at the end of 2023.

In terms of income, Oak Woods reported net income of $335,717 for the three months ended September 30, 2024, down from $515,336 in the same period of 2023. For the nine months ended September 30, 2024, net income was $287,416, a significant decline from $1.1 million in the prior year. The decrease in net income is attributed to higher operating expenses, which totaled $2.1 million for the nine months ended September 30, 2024, compared to $473,680 in the same period of 2023.

The company’s cash position at the end of the reporting period was $90,868, a decrease from $527,023 at the end of September 2023. The working capital deficit stood at $3.2 million, reflecting the company's liquidity challenges. Notably, Oak Woods redeemed 1,492,646 Class A ordinary shares at $11.08 per share on September 26, 2024, resulting in a total payment of $16.5 million from the Trust Account.

Strategically, Oak Woods has extended its business combination deadline multiple times, with the latest extension approved on September 26, 2024, allowing the deadline to be pushed to March 28, 2025. The company has also engaged in various financing activities, including issuing unsecured promissory notes totaling $745,500 to extend the business combination deadline and $888,200 in working capital loans.

Overall, while Oak Woods has made progress in asset accumulation and strategic planning for its merger, it faces significant challenges in profitability and liquidity as it approaches critical deadlines for its business combination.