As of September 30, 2024, Spark I Acquisition Corporation reported significant financial developments following its Initial Public Offering (IPO) on October 11, 2023. The company issued 10,000,000 Class A ordinary shares and 6,422,078 Class B ordinary shares, with total assets amounting to $105.9 million, a slight increase from $103.3 million at the end of 2023. However, the company faced a total shareholders’ deficit of $(3.75 million), worsening from $(2.27 million) in the previous fiscal period.

The company’s cash position declined sharply, with cash at $82,760 as of September 30, 2024, down from $1.4 million at the end of 2023. Total current assets also fell to $207,421 from $1.56 million. Investments held in trust increased to $105.7 million, up from $101.7 million, reflecting a focus on U.S. government securities.

In terms of profitability, Spark I Acquisition reported a net income of $901,986 for Q3 2024, a turnaround from a net loss of $(448,131) in Q3 2023. For the nine months ended September 30, 2024, the net income was $2.54 million, compared to a net loss of $(1.24 million) for the same period in 2023. The improvement in net income was attributed to interest income from trust account investments totaling $4.02 million, which offset operating expenses of $515,714 and related party administration fees of $965,030.

The company’s administrative fees to related parties surged to $312,350 in Q3 2024 from $74,715 in Q3 2023, indicating increased operational costs. The basic and diluted net income per Class A ordinary share for Q3 2024 was $0.05, while Class B ordinary shares also reported a net income of $0.05, a recovery from a loss of $(0.07) in the prior year.

Despite these positive financial results, Spark I Acquisition faces challenges, including a working capital deficit of $251,453 and substantial doubt about its ability to continue as a going concern within the next twelve months. The company has not commenced any operations and is primarily focused on identifying a target for its business combination, which must be completed by July 11, 2025. Management is actively engaging in discussions with potential targets and plans to utilize proceeds from the IPO and private placements for future transactions.