FutureTech II Acquisition Corp. Reports $123K Net Loss in Q3 2024 Amid Business Combination Efforts

FutureTech II Acquisition Corp. reported a net loss of $123,127 for the third quarter of 2024, a significant decline from a net income of $661,226 in the same period of the previous year. The company’s total expenses increased to $367,118, compared to $329,254 in the prior year, primarily due to higher due diligence costs associated with its ongoing business combination efforts. For the nine months ending September 30, 2024, the company recorded a net loss of $38,005, contrasting sharply with a net income of $2,304,899 for the same period in 2023. This shift was attributed to a decrease in interest income from the Trust Account, which fell to $1,107,012 from $3,989,390 year-over-year.

The company’s financial position has also changed markedly, with total assets decreasing to $28.5 million as of September 30, 2024, down from $63.2 million at the end of 2023. This decline was largely due to a significant reduction in cash held in the Trust Account, which dropped from $61.8 million to $26.9 million. The decrease in cash was primarily driven by redemptions of Class A common stock, which amounted to $36.3 million during the nine-month period. As of September 30, 2024, the company had a working capital deficit of $4.6 million, compared to a deficit of $3.7 million at the end of 2023.

In terms of strategic developments, FutureTech II Acquisition Corp. is in the process of completing a business combination with Longevity Biomedical, Inc. The merger agreement, signed on September 16, 2024, outlines that Longevity will acquire two companies, Cerevast Medical, Inc. and Aegeria Soft Tissue LLC, before merging with FutureTech. Following the merger, the company plans to change its name to Longevity Biomedical, Inc. and list its common stock on the NASDAQ under the ticker symbol "LBIO." The completion of this transaction is subject to various conditions, including stockholder approval.

Operationally, the company has faced challenges, including a decline in the number of redeemable shares. As of September 30, 2024, there were 2,319,435 shares of Class A common stock subject to redemption, down from 5,556,350 shares at the end of 2023. The company has also been actively extending its business combination deadline, with the latest extension approved on November 18, 2024, allowing it until August 18, 2025, to complete the merger. This extension was facilitated by the Sponsor's commitment to deposit funds into the Trust Account to support the extension.

Looking ahead, FutureTech II Acquisition Corp. faces significant liquidity challenges, with only $1,883 in cash available as of September 30, 2024. The company has indicated that it may need to raise additional capital to meet its operational needs and complete the business combination. The management has expressed concerns about the company's ability to continue as a going concern if it cannot secure the necessary funding. The ongoing geopolitical tensions and economic conditions may further complicate the company's efforts to finalize the merger and stabilize its financial position.