Yotta Acquisition Corporation, a shell company incorporated on March 8, 2021, reported significant financial changes in its latest 10-Q filing for the quarter ending September 30, 2024. The company’s total assets decreased to $5.8 million from $8.6 million at the end of 2023, primarily due to a reduction in cash and investments held in the Trust Account, which fell from $7.9 million to $5.3 million. Cash reserves also declined sharply from $652,395 to $404,404.

The company reported a net income of $73,893 for the three months ended September 30, 2024, a substantial decrease from $866,518 in the same period of 2023. For the nine months ended September 30, 2024, net income was $265,749, down from $1,176,792 in the prior year. The decline in profitability was attributed to lower interest income, which decreased from $2.6 million to $300,329, and increased expenses totaling $510,336 compared to $1.5 million in the previous year.

Yotta's current liabilities slightly decreased to $4.4 million from $4.5 million, while the total stockholders’ deficit widened to $(8.0 million) from $(7.9 million). The company has been actively managing its capital structure, including cash withdrawals from the Trust Account to pay redeemed public stockholders, which totaled $2.96 million in the nine months ended September 30, 2024, compared to $76.3 million in the same period of 2023.

Strategically, Yotta has entered into a merger agreement with DRIVEiT Financial Auto Group, Inc., announced on August 20, 2024, with a total consideration of $100 million payable in shares. This merger is subject to stockholder approval and customary closing conditions. The company has extended its deadline for completing a business combination to October 22, 2025, with monthly deposits required into the Trust Account.

Yotta has faced challenges, including non-compliance notices from Nasdaq regarding its market value and publicly held shares. The company successfully transferred from the Nasdaq Global Market to the Nasdaq Capital Market, contingent upon entering a business combination agreement by August 25, 2024.

As of September 30, 2024, Yotta's cash position and working capital deficit raised concerns about its ability to continue as a going concern if a business combination is not completed by the extended deadline. The company has also incurred an excise tax liability of $1.15 million due to stock redemptions, reflecting ongoing financial pressures.