Swiftmerge Acquisition Corp., an emerging growth company and shell company, reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company had total assets of $13.7 million, a substantial decrease from $24.5 million at the end of 2023. Current assets also fell sharply from $148.3 million to $32.1 million, with cash holdings declining from $148.3 million to $9.5 million over the same period. The Trust Account, which is crucial for potential business combinations, saw its investments drop from $24.4 million to $13.7 million.

The company reported a net loss of $77,178 for the three months ended September 30, 2024, compared to a net income of $347,967 for the same period in 2023. For the nine months ended September 30, 2024, the net loss was $523,757, a stark contrast to a net income of $2.9 million for the same period in 2023. The decline in profitability was attributed to increased formation and operating costs, which totaled $1.2 million for the nine months ended September 30, 2024, compared to $3.3 million in the prior year. The gain on investments held in the Trust Account also significantly decreased, from $6.2 million in 2023 to $663,121 in 2024.

The company faced a working capital deficit of $4.2 million as of September 30, 2024, and management expressed substantial doubt about its ability to continue as a going concern for the next year. Plans to address this uncertainty include pursuing a business combination, obtaining additional working capital loans, or seeking an extension of deadlines.

Strategically, Swiftmerge has been active in pursuing business combinations. After terminating a merger agreement with HDL Therapeutics in February 2024, the company entered into a new merger agreement with Swiftmerge HoldCo LLC and AleAnna Energy, LLC in June 2024. This agreement includes a domestication from a Cayman Islands company to a Delaware corporation, with plans to change the company’s name to AleAnna, Inc. Shareholders approved an extension of the deadline to complete the initial business combination to June 17, 2025.

The company also reported significant redemptions of Class A ordinary shares, with 20,253,090 shares redeemed for approximately $211.9 million, leaving a Trust Account balance of about $13.7 million. The financial statements reflect ongoing challenges, including a material weakness in internal controls over financial reporting, which management is addressing.