Relativity Acquisition Corp. Reports Decreased Net Losses and Significant Asset Decline

Relativity Acquisition Corp. reported a net loss of $202,397 for the three months ended June 30, 2024, a decrease from a loss of $364,438 in the same period of the previous year. For the six months ended June 30, 2024, the company recorded a net loss of $439,194, down from $1,666,201 in the prior year. The decrease in losses is attributed to lower formation and operating costs, which fell to $119,047 from $381,123 year-over-year for the quarter, and to $526,792 from $1,442,178 for the six-month period. The company also reported a change in the fair value of warrant liabilities, which negatively impacted earnings by $176,964 in the latest quarter.

As of June 30, 2024, Relativity Acquisition Corp. had total assets of $752.1 million, a significant decline from $1.76 billion at the end of 2023. This decrease was primarily due to a reduction in cash and investments held in the Trust Account, which fell from $1.75 billion to $743.8 million. The company’s current liabilities increased to $2.07 million from $1.63 million, largely driven by accrued costs and expenses. The stockholders’ deficit also widened to $2.57 million from $2.12 million, reflecting the ongoing losses.

In terms of operational developments, the company has not yet completed any business combination since its inception. However, it has extended the deadline for consummating a business combination to February 15, 2025. This extension was accompanied by stockholder redemptions, with 90,054 public shares redeemed for approximately $1.02 million in February 2024. Following these redemptions, only 63,241 public shares remained outstanding. The company has also entered into a non-binding Letter of Intent for a proposed business combination with 4503309 Nova Scotia Ltd., which was later terminated.

Looking ahead, Relativity Acquisition Corp. faces significant challenges, including a working capital deficit of $2.06 million and limited cash resources, with only $342 in its operating bank account as of June 30, 2024. The company has indicated that it may need to raise additional funds to meet operational expenditures and complete a business combination. The management has expressed uncertainty regarding its ability to consummate a business combination within the extended timeframe, raising concerns about the company's ability to continue as a going concern. The company has not made any adjustments to its financial statements in anticipation of potential liquidation should it fail to complete a business combination by the new deadline.