Aquaron Acquisition Corp. Reports Significant Net Loss and Financial Strain in Latest 10-Q Filing

Aquaron Acquisition Corp. has reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $157,122 for the three months ended June 30, 2025, compared to a net income of $55,371 for the same period in 2024. For the six months ending June 30, 2025, the net loss was $540,222, a stark contrast to the net income of $154,185 reported in the prior year. The losses were primarily attributed to increased general and administrative expenses, which rose to $191,738 for the quarter and $656,221 for the half-year, compared to $120,396 and $199,478, respectively, in the previous year.

The company’s total assets have decreased significantly, from $9.49 million as of December 31, 2024, to $1.51 million as of June 30, 2025. This decline is largely due to a substantial reduction in investments held in the Trust Account, which fell from $9.26 million to $1.31 million over the same period. Current liabilities also increased, reaching $4.03 million, up from $3.12 million at the end of 2024, indicating a growing financial strain on the company.

Aquaron has been actively pursuing a business combination, focusing on the new energy sector. The company entered into a merger agreement with Huture Ltd. and Bestpath, which was initially signed on March 23, 2023, but later terminated to accommodate a reorganization. A new merger agreement was established on July 12, 2024, with Huture, which implies a current equity value of $1 billion for Huture prior to closing. The company has extended its business combination period multiple times, with the latest extension allowing until September 6, 2025, to complete the merger.

Operationally, Aquaron has faced challenges, including a working capital deficit of $3.82 million as of June 30, 2025, and a cash balance of only $6,517. The company has relied on loans from related parties, including Huture and Bestpath, to fund operations and extend the business combination period. The company’s stock is currently traded over-the-counter following its delisting from Nasdaq due to non-compliance with listing rules, which has raised concerns about its ability to continue as a going concern.

Looking ahead, Aquaron's management has expressed uncertainty regarding its ability to consummate a business combination by the extended deadline. If the merger is not completed, the company may face mandatory liquidation. The ongoing financial challenges, coupled with the need for additional financing to meet obligations, underscore the precarious position of Aquaron as it navigates its future in the competitive landscape of SPACs and business combinations.