Aquaron Acquisition Corp. Reports $357,114 Net Loss for Fiscal Year 2024 Amid Operational Changes

Aquaron Acquisition Corp. has reported a net loss of $357,114 for the fiscal year ending December 31, 2024, a significant decline from a net income of $997,917 in the previous year. The loss primarily stemmed from general and administrative expenses totaling approximately $904,877, alongside franchise and income tax expenses. In contrast, the company had reported a net income in 2023, which was bolstered by interest income from investments held in a trust account. As of December 31, 2024, Aquaron had a working capital deficit of $2,886,242 and only $7,830 in cash, indicating a challenging liquidity position.

The company has undergone significant operational changes, including the termination of its initial merger agreement with Bestpath on July 12, 2024, due to a reorganization by Bestpath. Subsequently, Aquaron entered into a new merger agreement with HUTURE Ltd., which values Huture at $1 billion prior to the merger's closing. This agreement is part of Aquaron's strategy to focus on the new energy sector, although it faces challenges due to its recent delisting from Nasdaq on March 7, 2025, which has limited its ability to attract potential business combination targets and raised concerns about its future financing capabilities.

Aquaron's stockholders have exercised significant redemption rights, with 2,487,090 shares tendered for redemption in June 2023 and 2,124,738 shares in April 2024, reflecting a trend of high redemption rates among SPACs. This has reduced the number of outstanding public shares to 805,352 as of the latest report. The company has also extended its business combination period multiple times, with the latest extension allowing until May 6, 2025, to complete a merger. However, if it fails to do so, Aquaron will be required to liquidate.

The company has received financial support from its sponsor, which provided loans totaling $849,626 to cover transaction costs and operational expenses. Additionally, it has issued unsecured promissory notes to Bestpath and Huture to fund extensions of the business combination period. Despite these efforts, the company faces uncertainty regarding its ability to complete a business combination, particularly given the regulatory scrutiny it may encounter due to foreign investment regulations.

Looking ahead, Aquaron's management has expressed concerns about its ability to continue as a going concern if it cannot complete a business combination by the extended deadline. The company is actively seeking to secure a waiver from Huture regarding its delisting from Nasdaq, which is a condition for the merger. The outcome of these efforts, along with the broader economic and regulatory environment, will significantly impact Aquaron's future operations and financial stability.