Aquaron Acquisition Corp. Reports $383,100 Net Loss Amid Increased Expenses and Merger Challenges

Aquaron Acquisition Corp. reported a net loss of $383,100 for the three months ending March 31, 2025, a significant decline from a net income of $98,814 during the same period in 2024. The loss was primarily driven by increased general and administrative expenses, which rose to $464,483 from $79,082 year-over-year. The company also recorded a loss from operations of $470,383, compared to a loss of $89,882 in the prior year. Interest earned on investments held in the Trust Account decreased to $63,679 from $274,776, and unrealized gains on these investments also fell to $33,391 from $143,038.

In terms of financial position, Aquaron's total assets increased to $9.61 million as of March 31, 2025, up from $9.49 million at the end of 2024. This increase was primarily due to a rise in investments held in the Trust Account, which grew to $9.39 million from $9.26 million. However, the company's liabilities also increased significantly, reaching $6.23 million compared to $5.64 million at the end of the previous fiscal year. The current liabilities surged to $3.71 million, up from $3.12 million, largely due to increased accounts payable and accrued expenses.

Aquaron has been actively pursuing a business combination, focusing on the new energy sector. The company entered into a merger agreement with Huture Ltd. on July 12, 2024, after terminating a previous agreement with Bestpath due to a reorganization. The merger with Huture, which has an implied equity value of $1 billion, is expected to be a significant strategic development for Aquaron. The company has also extended its business combination period multiple times, with the latest extension allowing until May 6, 2026, to complete the merger.

As of March 31, 2025, Aquaron had a working capital deficit of $3.49 million and only $290 in cash, raising concerns about its ability to continue operations without additional financing. The company has relied on loans from its sponsor, Huture, and Bestpath to fund its operations and extend the business combination period. If the merger is not completed by the extended deadline, Aquaron may face mandatory liquidation.

Looking ahead, Aquaron's management has expressed uncertainty regarding its ability to consummate a business combination by the new deadline. The company is also facing challenges related to compliance with Nasdaq listing rules, having received a delisting notification in March 2025. As a result, Aquaron's shares are now traded over-the-counter, which may impact its market visibility and investor confidence. The company continues to evaluate its options for financing and operational strategies as it navigates these challenges.