Broad Capital Acquisition Corp, a blank check company formed to pursue a business combination, reported a net loss of $1.12 million for the fiscal year ending December 31, 2024. This loss was primarily attributed to formation and operating costs totaling approximately $1.58 million, alongside franchise taxes of $177,055. In comparison, the previous fiscal year saw a net loss of $513,919, which included higher operating costs of $2.41 million and significant interest income of $2.75 million from cash held in trust. As of December 31, 2024, the company had approximately $20.52 million in its trust account, which includes $894,070 in interest earned.
The company has not yet completed its initial business combination, which it has been pursuing since its initial public offering (IPO) on January 11, 2022, where it raised $100 million by selling 10 million units at $10 each. However, the anticipated merger with Openmarkets Group Pty Ltd was terminated on February 12, 2025, following a notice from Openmarkets. This termination has prompted Broad Capital to reassess its strategy and continue searching for alternative business combination opportunities.
Operationally, Broad Capital has faced challenges, including a material weakness in internal controls over financial reporting, primarily due to limited personnel and inadequate segregation of duties. The company has indicated plans to enhance its internal controls and governance structure, particularly as it seeks to identify and complete a business combination. As of the end of 2024, the company had two officers and no full-time employees, relying on its management team to navigate the complexities of the acquisition process.
Looking ahead, Broad Capital's management has expressed uncertainty regarding its ability to continue as a going concern if it does not complete a business combination by January 13, 2026. The company has indicated that it may need to secure additional financing to meet its operational needs, as it currently holds only $585 in its operating bank account. The management team is exploring options for working capital loans to support ongoing operations and facilitate the pursuit of a suitable target for acquisition.
About Broad Capital Acquisition Corp
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