OCA Acquisition Corp. reported its financial results for the three and nine months ended September 30, 2024, showing significant improvements in net income compared to the same periods in the previous year. For the third quarter of 2024, the company achieved a net income of $911,092, a turnaround from a net loss of $(64,319) in the third quarter of 2023. For the nine-month period, net income was $142,667, compared to a net loss of $(455,689) in the prior year. The basic and diluted net income per share for redeemable common stock was $0.14 for the third quarter of 2024, up from $(0.01) in the same quarter of 2023.

Total other income for the three months ended September 30, 2024, was $1,368,343, significantly higher than $249,001 reported in the same period of 2023. The increase in income was attributed to changes in the fair value of warrant liabilities and interest earned on trust account funds. The effective tax rate for the third quarter of 2024 was 8.2%, a notable decrease from 905.0% in the same quarter of 2023.

As of September 30, 2024, OCA Acquisition Corp. had total assets of $34.3 million, down from $42.3 million at the end of 2023. Cash and marketable securities in the Trust Account also decreased to $34.3 million from $42.3 million. The company reported total current liabilities of $10.4 million, an increase from $8.1 million at the end of 2023, contributing to a total stockholders’ deficit of $(15.6 million) as of September 30, 2024, compared to $(14.2 million) at the end of the previous fiscal year.

The company is in the process of completing its initial business combination with Powermers Smart Industries, Inc. (PSI), which is expected to have a pro forma equity value of approximately $2 billion at closing. OCA has extended its deadline for this business combination to November 20, 2024, after receiving multiple extensions. However, the company faces challenges, including a delisting notice from Nasdaq due to non-compliance with listing rules, which has resulted in its securities trading on the OTC Pink Marketplace.

OCA Acquisition Corp. has also recorded a contingent liability of $1.2 million for excise tax related to redemptions and has drawn on various promissory notes from its sponsor to meet liquidity needs. The company reported a cash balance of $1,465 in its operating account as of September 30, 2024, indicating a significant decline from $27.8 million at the end of 2023.