Tech Acquisition Corporation Reports Mixed Financial Results, Cash Position Improves

Technology & Telecommunication Acquisition Corporation (TETE) reported its financial results for the three and nine months ended August 31, 2024, highlighting significant changes in revenue, profitability, and liquidity compared to the previous fiscal period.

For the three months ended August 31, 2024, TETE achieved a net income of $200,474, an increase from $116,225 in the same period of 2023. The basic and diluted net income per ordinary share rose to $0.03 from $0.02 year-over-year. However, for the nine months ended August 31, 2024, net income decreased to $724,116 from $798,474 in the prior year. The basic and diluted net income per share for this period improved to $0.12 from $0.10.

The company’s cash position showed a notable increase, with cash as of August 31, 2024, at $40,533, compared to $9,917 as of November 30, 2023. Total current assets surged to $101,706 from $15,912 in the same timeframe. However, total assets decreased to $31,239,880 from $33,765,829, primarily due to a reduction in cash and marketable securities held in the trust account, which fell to $31,138,174 from $33,749,917.

Total liabilities increased to $8,775,838 from $7,153,390, contributing to a growing accumulated deficit of $(8,674,473) as of August 31, 2024, compared to $(7,137,819) at the end of the previous fiscal year. The total shareholders’ deficit also widened to $(8,674,132) from $(7,137,478).

Cash used in operating activities improved, with a net cash outflow of $(520,384) for the nine months ended August 31, 2024, compared to $(701,818) in the same period of 2023. The company withdrew $4,872,513 from the trust account for redemptions, a significant decrease from $87,980,621 in the prior year.

Strategically, TETE has amended its articles of association to extend the business combination period up to seven times for one month each, from June 20, 2024, to January 20, 2025. The company is classified as an emerging growth company and is actively pursuing acquisition opportunities, although it faces substantial doubt regarding its ability to continue as a going concern within the next 12 months.

As of August 31, 2024, TETE had 5,975,740 Class A ordinary shares outstanding, with 2,568,240 shares subject to possible redemption. The company continues to evaluate prospective business combination candidates while managing its liquidity needs through loans from its sponsor.