ShoulderUP Technology Acquisition Corp. reported significant financial changes in its 10-Q filing for the period ending June 30, 2024. The company, classified as a shell entity, saw total assets decrease to $9.6 million from $21.5 million at the end of 2023. Current assets included $290,466 in cash and $9.3 million held in a Trust Account. Total liabilities increased to $27.0 million, up from $22.0 million, with current liabilities rising to $4.9 million. The accumulated deficit worsened to $(26.0 million) from $(21.0 million) at the end of the previous fiscal year.

For the three months ended June 30, 2024, ShoulderUP reported a net loss of $(222,793), a stark contrast to a net income of $855,377 for the same period in 2023. General and administrative expenses rose to $333,599 from $271,900 year-over-year. Income from cash and investments held in the Trust Account also declined significantly, totaling $227,832 compared to $1.5 million in the prior year. For the six-month period, the net loss was $(662,778), compared to a net income of $3.2 million in 2023.

The company experienced substantial redemptions of Class A common stock, with 25.8 million shares redeemed in April 2023 and additional redemptions in November 2023 and May 2024, totaling approximately $12.1 million. As of June 30, 2024, 2.2 million shares of Class A common stock were outstanding, with 859,414 shares subject to possible redemption.

Strategically, the company has been actively pursuing business combinations, including a non-binding letter of intent with Airspace Experience Technologies, which was later terminated. A Business Combination Agreement was entered into on March 18, 2024, involving CID HoldCo, Inc. and SEE ID, Inc. However, management has expressed substantial doubt regarding the company's ability to continue as a going concern due to liquidity issues and a mandatory liquidation date set for November 19, 2024.

The company has also raised concerns about its internal controls over financial reporting, identifying material weaknesses in its disclosure controls and procedures. As of June 30, 2024, ShoulderUP had a working capital deficit of approximately $4.6 million and had issued a convertible promissory note for $275,000 to address working capital needs.