Blue Ocean Acquisition Corp. Reports Significant Financial Decline, Doubt Over Going Concern Status

Blue Ocean Acquisition Corp. (the "Company") reported significant financial changes in its quarterly filing for the period ending September 30, 2024. The Company, classified as a shell entity, has not commenced any operations and is primarily focused on completing a merger with TNL Mediagene, as outlined in a merger agreement initially entered into on June 6, 2023, with subsequent amendments.

As of September 30, 2024, the Company reported total assets of $21.2 million, a substantial decrease from $67.3 million at the end of the previous fiscal year. This decline was primarily attributed to a reduction in cash and marketable securities, which fell to $47,683 from $61,977 as of December 31, 2023. Total current assets also decreased significantly to $67,934 from $128,191 during the same period. Conversely, total liabilities increased to $16.0 million from $12.2 million, leading to an accumulated deficit of $(15.98 million), up from $(12.03 million) at the end of 2023.

The Company reported a net loss of $(612,572) for the third quarter of 2024, compared to a net income of $926,269 for the same period in 2023. For the nine months ended September 30, 2024, the net loss totaled $(1.67 million), a stark contrast to a net income of $3.47 million for the same period in 2023. The basic and diluted net loss per Class A ordinary share for the third quarter of 2024 was $(0.09), compared to a profit of $0.05 in the prior year.

Cash withdrawals from the Trust Account for redemptions were also notable, with $48.3 million withdrawn in the nine months ended September 30, 2024, compared to $136.8 million in the same period of 2023. Following these redemptions, the number of Class A ordinary shares outstanding decreased significantly, with 1,841,950 shares remaining subject to redemption as of September 30, 2024.

Strategically, the Company has extended its deadline for completing the business combination to December 7, 2024, with provisions for further extensions. However, management has expressed substantial doubt regarding the Company's ability to continue as a going concern due to liquidity issues and the potential for mandatory liquidation if the merger is not completed by the deadline.

In terms of operational expenses, the Company recognized general and administrative expenses of $382,500 for the nine months ended September 30, 2024, compared to $157,500 for the same period in 2023. The Company has also entered into various promissory notes with its Sponsor to address working capital needs, with outstanding balances increasing over the reporting period.

Overall, Blue Ocean Acquisition Corp. is navigating significant financial challenges while pursuing its merger with TNL Mediagene, with critical deadlines approaching that will determine its future viability.