Chain Bridge I Reports $1.3 Million Net Loss in Q3 2025, Faces Liquidity Challenges

Chain Bridge I reported its financial results for the third quarter of 2025, revealing a net loss of approximately $1.3 million, a significant decline from a net income of $326,000 in the same period of the previous year. The loss was primarily driven by a $1.1 million change in the fair value of derivative liabilities and $236,000 in general and administrative expenses. For the nine months ended September 30, 2025, the company recorded a net loss of about $1.7 million, compared to a loss of $1.4 million for the same period in 2024. The company’s total assets increased to $6.54 million from $5.44 million at the end of 2024, largely due to an increase in cash and investments held in the Trust Account.

The company’s operational metrics showed a notable increase in cash reserves, which rose to $1 million as of September 30, 2025, compared to $130,000 at the end of 2024. However, the working capital deficit stood at $357,128, indicating ongoing liquidity challenges. The total liabilities surged to $5.21 million, up from $2.49 million at the end of the previous fiscal year, primarily due to increased accounts payable and accrued expenses. The company’s accumulated deficit also widened to $4.17 million from $2.24 million.

Strategically, Chain Bridge I has been focused on finalizing a business combination, with a deadline extended to November 15, 2026. The company is in discussions regarding a potential merger with Phytanix Bio, which is expected to enhance its market position. The business combination agreement includes provisions for the issuance of new shares and warrants, which could significantly alter the company’s capital structure. The company has also entered into various financing agreements, including a $1.5 million loan from Fulton AC, which is intended to support operational needs and facilitate the business combination.

Despite these developments, the company faces challenges, including a material weakness in internal controls over financial reporting, which management is actively working to address. The company’s shares have transitioned from trading on the Nasdaq to the OTCQB market, following compliance issues with Nasdaq listing requirements. Looking ahead, Chain Bridge I aims to complete its business combination and improve its financial position, although management has expressed concerns regarding its ability to continue as a going concern if the business combination is not finalized by the extended deadline.