ClimateRock, a Cayman Islands exempted company, has reported its financial performance for the fiscal year ending December 31, 2024, in its recent 10-K filing. The company recorded a net loss of $390,001, a decline from a net income of $483,430 in the previous year. This loss was primarily attributed to increased formation and operating costs, which rose to $1,715,282 from $1,528,302 in 2023. The company generated $1,445,114 in dividend income from its Trust Account, down from $2,134,446 in the prior year, reflecting a decrease in interest income as the company transitioned its Trust Account investments to cash equivalents.
Significant operational changes occurred during the reporting period, including the extension of the Combination Period for its initial business combination. Shareholders approved extensions in 2023 and 2024, moving the deadline from November 2, 2023, to May 2, 2025, and then to November 2, 2025. In connection with these extensions, shareholders redeemed a total of 5,409,707 Public Shares, resulting in approximately $56.5 million being withdrawn from the Trust Account. As of December 31, 2024, the Trust Account held approximately $29.4 million, reflecting the remaining balance after redemptions.
The company is actively pursuing a business combination, focusing on the sustainable energy sector, particularly with its proposed merger with GreenRock Corp. The GreenRock Business Combination Agreement was signed on December 30, 2023, and subsequently amended in November 2024 to adjust the terms, including the reduction of escrow shares and the removal of a minimum cash closing condition. The company has also engaged in various loan agreements with its sponsor, U.N. SDG Support LLC, to finance operational costs and support the business combination process.
As of the end of 2024, ClimateRock had a working capital deficit of $5,753,598 and only $14,384 in cash outside the Trust Account, raising concerns about its ability to continue as a going concern. The company has indicated that it may seek additional funding from its sponsor or other related parties to support its operations and business combination efforts. The management team, led by CEO Per Regnarsson, remains optimistic about completing the merger with GreenRock and is focused on identifying additional acquisition opportunities within the sustainable energy sector.
Looking ahead, ClimateRock's management has expressed confidence in its strategy to complete a business combination by the extended deadline of November 2, 2025. However, the company acknowledges the risks associated with market conditions and the competitive landscape in the sustainable energy sector, which could impact its ability to finalize a merger and achieve its operational goals.
About ClimateRock
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