Athena Technology Acquisition Corp. II Reports $768K Net Loss and Ongoing Liquidity Challenges

Athena Technology Acquisition Corp. II reported a net loss of $768,658 for the three months ending March 31, 2025, compared to a net loss of $601,527 for the same period in 2024. The company's operating expenses decreased to $730,920 from $801,272 year-over-year, primarily due to lower general and administrative costs. Interest income from investments held in the Trust Account also fell significantly, from $318,866 in 2024 to $38,515 in 2025, reflecting a decline in investment returns. The basic and diluted net loss per share for Class A common stock was $(0.08), compared to $(0.05) in the prior year.

As of March 31, 2025, Athena's total assets amounted to $4,694,169, an increase from $4,467,142 at the end of 2024. Current assets rose to $970,605, driven by an increase in cash holdings, which reached $487,089, up from $142,260 at the end of the previous year. However, the company reported a working capital deficit of $10,019,807, indicating ongoing liquidity challenges. Total liabilities increased to $19,946,662, with accounts payable and accrued expenses rising to $5,216,821.

Strategically, 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, including stockholder approval and regulatory compliance. The company has extended the deadline for completing this business combination multiple times, with the latest extension allowing until September 14, 2025. As part of its financing strategy, Athena has engaged in several related party transactions, including the issuance of promissory notes to its sponsor, totaling $1,639,214 as of March 31, 2025.

Operationally, Athena has faced challenges with stockholder redemptions, with significant shares being redeemed in connection with special meetings held in June 2023, March 2024, and December 2024. These redemptions have impacted the company's capital structure and liquidity. The company has also incurred excise tax liabilities related to these redemptions, totaling $3,501,166 as of March 31, 2025. Management has expressed concerns regarding its ability to continue as a going concern, emphasizing the need to complete the business combination to secure sufficient capital for future operations.

Looking ahead, Athena's management remains focused on finalizing the business combination with Ace Green Recycling while addressing its liquidity challenges. The company is actively working to improve its internal controls and financial reporting processes, particularly in light of identified material weaknesses. The successful completion of the merger is critical for Athena to stabilize its financial position and pursue growth opportunities in the future.