Athena Technology Acquisition Corp. II Reports Net Loss of $314,920 for Q3 2024

Athena Technology Acquisition Corp. II reported a net loss of $314,920 for the three months ended September 30, 2024, compared to a loss of $548,195 for the same period in 2023. For the nine months ended September 30, 2024, the company incurred a net loss of $1,151,865, a significant decline from a net income of $1,257,443 in the prior year. The decrease in profitability was primarily attributed to a substantial drop in interest income from investments held in the Trust Account, which fell to $191,561 for the quarter and $704,501 for the nine-month period, down from $303,702 and $5,690,465, respectively, in the previous year.

The company's total assets decreased to $15.6 million as of September 30, 2024, from $26.3 million at the end of 2023. This decline was driven by a reduction in investments held in the Trust Account, which dropped from $24.4 million to $15 million. Current liabilities increased to $8.3 million, up from $7.6 million, largely due to higher accounts payable and accrued expenses. The stockholders' deficit also widened to $17.1 million, compared to $15 million at the end of the previous fiscal year.

Strategically, Athena has been actively pursuing a business combination, recently entering into a Business Combination Agreement with Ace Green Recycling. This agreement, announced on December 4, 2024, outlines a merger where Ace Green Recycling will become a wholly-owned subsidiary of Athena. The transaction is contingent upon the satisfaction of certain conditions and is expected to involve the issuance of up to 10.5 million shares of common stock to Ace Green Recycling's shareholders.

Operationally, the company has faced challenges, including a working capital deficit of $7.6 million as of September 30, 2024. The company has relied on loans from its sponsor to cover operational costs and has recorded $1.1 million in working capital loans outstanding. Additionally, Athena has been extending the deadline for its initial business combination, with the latest extension allowing until September 14, 2025, to complete the merger. The company has also faced compliance issues with the NYSE, leading to a suspension of its securities trading on December 10, 2024, due to failure to consummate a business combination within the required timeframe.

Looking ahead, Athena's management has expressed uncertainty regarding its ability to complete a business combination by the extended deadline. The company continues to evaluate its liquidity position and may need to raise additional funds to meet operational and tax obligations. The ongoing efforts to remediate identified weaknesses in internal controls over financial reporting are also a priority, as the company aims to enhance its financial governance and compliance moving forward.