YHN Acquisition Reports Net Income in Q3, Net Loss for Nine Months, and Updates Financial Position Following IPO and Private Placement

YHN Acquisition I Limited, an emerging growth company incorporated on December 18, 2023, completed its Initial Public Offering (IPO) on September 19, 2024, selling 6,000,000 units at $10.00 each, generating gross proceeds of $60 million. Additionally, the company raised $2.5 million through a private placement of 250,000 units at the same price. As of September 30, 2024, the company reported total assets of $61.2 million, with $60.4 million held in a trust account primarily invested in U.S. Treasury securities.

For the three months ending September 30, 2024, YHN Acquisition reported a net income of $23,722, translating to a basic and diluted net income per share of $0.10. In contrast, for the nine months ended September 30, 2024, the company experienced a net loss of $17,788, with a basic and diluted net income per share of $0.32. The net cash used in operating activities for the nine-month period was $(46,979), while net cash used in investing activities was significantly higher at $(60.3 million), primarily due to the transfer of funds to the trust account.

The company has a total shareholders’ deficit of $(726,007) as of September 30, 2024, reflecting an accumulated deficit of the same amount. The cash balance at the end of the reporting period stood at $837,818, with working capital of $773,993. The liquidity position has been bolstered by the net proceeds from the IPO and private placement, although the company anticipates incurring significant professional and transaction costs as it seeks to complete a business combination.

YHN Acquisition has until December 18, 2025, to finalize a business combination, which must involve target businesses with a fair market value equal to at least 80% of the trust account balance at the time of signing a definitive agreement. If the company fails to complete a business combination within the specified period, it will redeem all outstanding public shares at the amount in the trust account, which may be less than the initial $10.05 per share.

As of the reporting date, the company had not commenced any operations and had no long-term debts or liabilities, aside from a monthly fee of $10,000 for administrative services. The financial statements do not reflect any adjustments that might arise from uncertainties regarding the ability to continue as a going concern, as management has expressed substantial doubt about this ability if a business combination is not consummated within the prescribed timeframe.