Athena Technology Acquisition Corp. II Reports Increased Net Loss and Ongoing Business Combination Efforts

Athena Technology Acquisition Corp. II reported a net loss of $699,206 for the three months ended June 30, 2025, compared to a loss of $235,418 for the same period in 2024. For the six months ended June 30, 2025, the company recorded a net loss of $1,467,864, up from a loss of $836,945 in the prior year. The increase in losses is attributed to higher operating expenses, which rose to $634,894 in the second quarter of 2025 from $382,269 in the same quarter of 2024. The company’s interest income from investments held in its Trust Account also decreased significantly, falling to $38,380 in the latest quarter from $194,074 a year earlier.

Athena's total assets as of June 30, 2025, amounted to $4,566,990, a slight increase from $4,467,142 at the end of 2024. The company’s cash reserves increased to $280,063 from $142,260, while investments held in the Trust Account decreased to $3,585,115 from $3,666,439. Current liabilities rose to $11,562,439, up from $10,085,562, primarily due to increased accounts payable and accrued expenses. The company’s accumulated deficit also widened to $20,211,428 from $18,861,366.

In terms of strategic developments, Athena is in the process of completing a business combination with Ace Green Recycling, as outlined in a Business Combination Agreement signed on December 4, 2024. This merger is contingent upon various conditions and is expected to involve the issuance of up to 10,500,000 shares of common stock to Ace Green Recycling’s shareholders. The company has also been actively extending the deadline for its business combination, with the latest extension allowing until September 14, 2025, and plans to seek further extensions to June 14, 2026.

Operationally, Athena has faced challenges, including a working capital deficit of $10,580,564 as of June 30, 2025. The company has relied on loans from its sponsor to cover operational costs and has issued promissory notes totaling $1,735,686. The company’s management has expressed concerns about its ability to continue as a going concern, given the liquidity issues and the need to complete a business combination by the extended deadline. The company is currently evaluating its options regarding its excise tax liabilities, which have accumulated to $3,688,337, including penalties and interest.

Looking ahead, Athena's management remains focused on finalizing the business combination with Ace Green Recycling while addressing its financial obligations. The company has indicated that it will continue to seek additional funding to support its operations and ensure compliance with its tax obligations. However, there is no assurance that the company will successfully complete the business combination or secure the necessary funding to sustain its operations beyond the current fiscal period.