WinVest Acquisition Corp. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company, classified as a shell entity and an emerging growth company, has not commenced core operations since its inception in March 2021. As of September 30, 2024, total current assets decreased to $93,996 from $270,877 at the end of 2023, with cash holdings plummeting to $548 from $37,946. The Trust Account, which is crucial for the company's planned Initial Business Combination, held $5.8 million, down from $12.5 million at the end of 2023.
Total liabilities increased to $9.05 million, up from $7.01 million, primarily due to a rise in current liabilities, which reached $5.02 million compared to $2.99 million previously. The accumulated deficit also widened to $(8.95 million) from $(6.74 million), reflecting ongoing operational losses.
Operating expenses surged to $946,492 for the three months ended September 30, 2024, compared to $257,485 in the same period of 2023. For the nine months ended September 30, 2024, operating expenses totaled $1.72 million, up from $1.48 million year-over-year. The net loss for the third quarter was $(883,742), significantly higher than the $(103,638) loss reported in the same quarter of the previous year. For the nine-month period, the net loss was $(1.43 million), compared to $(966,681) in 2023.
The company has been actively working towards a business combination with Xtribe PLC, having entered into a Business Combination Agreement in May 2024, which was amended in September 2024. However, the company faces liquidity challenges, with a working capital deficit of $4.93 million as of September 30, 2024. Management has expressed substantial doubt about the company's ability to continue as a going concern, given the impending deadline to complete the Initial Business Combination by December 17, 2024.
In terms of stockholder activity, the company has seen multiple redemptions of public shares, with significant amounts withdrawn from the Trust Account. The company is also subject to a 1% excise tax on stock repurchases, which could impact future financial performance. Additionally, WinVest is currently in non-compliance with Nasdaq listing rules, having received a notice regarding its failure to complete the Initial Business Combination within the required timeframe. A hearing has been requested, and the outcome remains pending.
About WinVest Acquisition Corp.
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