Arogo Capital Reports Q3 2024 Financial Results with Significant Net Loss

Arogo Capital Acquisition Corp. reported its financial results for the third quarter of 2024, revealing a net loss of $1,720 for the three months ending September 30, 2024, compared to a net income of $378,293 for the same period in 2023. For the nine months ended September 30, 2024, the company recorded a net loss of $638,764, a significant decline from the net income of $1,815,640 reported in the prior year. The decrease in profitability is attributed to higher formation and operating costs, which totaled $1,171,707 for the nine-month period, up from $485,134 in the previous year.

The company’s total assets as of September 30, 2024, amounted to $20,408,988, an increase from $19,558,645 at the end of 2023. This growth was primarily driven by cash held in trust, which rose to $20,025,986 from $19,187,175. However, Arogo's current liabilities also increased significantly, reaching $5,526,569 compared to $4,037,462 at the end of the previous fiscal year. The company’s working capital deficit widened to $5,143,567 from $3,665,992, indicating ongoing financial challenges.

In terms of operational developments, Arogo Capital has not yet completed any business combinations since its inception in June 2021. The company has been actively seeking potential targets for acquisition but has faced delays. Notably, the company terminated its initial merger agreement with Eon Reality, Inc. in November 2023 due to breaches of contract. Subsequently, Arogo entered into a new business combination agreement with Ayurcann Holdings Corp. in June 2024, but this agreement was also terminated in November 2024 due to unmet conditions.

As of September 30, 2024, Arogo had 3,079,525 shares of Class A common stock outstanding, with 1,762,409 shares subject to possible redemption. The company has extended its deadline to complete a business combination to December 29, 2024, following stockholder approval. However, the company is currently trading on the OTC Pink Market after being delisted from the Nasdaq due to non-compliance with listing requirements, which may impact its liquidity and marketability.

Looking ahead, Arogo Capital acknowledges the need for additional funding to meet its operational and acquisition-related expenses. The company has indicated that it may seek further financing to facilitate its business combination plans. Management has expressed concerns regarding its ability to continue as a going concern if it fails to complete a business combination within the extended timeframe. The company remains committed to pursuing strategic opportunities while navigating the challenges posed by market conditions and regulatory requirements.