Integrated Wellness Acquisition Corp Reports Increased Net Loss and Ongoing Business Combination Efforts

Integrated Wellness Acquisition Corp (IWAC) reported its financial results for the first quarter of 2025, revealing a net loss of $292,501, a significant increase from a loss of $37,130 in the same period last year. The company's total operating expenses for the quarter were $405,678, down from $560,614 in the prior year, primarily due to reduced administrative expenses and the waiver of fees by its sponsor. Interest income from cash held in the Trust Account decreased to $113,177 from $523,484, reflecting lower cash balances and interest rates.

As of March 31, 2025, IWAC's total assets amounted to $14.5 million, up from $14.2 million at the end of 2024. The increase was driven by cash held in the Trust Account, which rose to $14.5 million from $14.2 million. However, the company also reported a working capital deficit of $7.8 million, compared to $7.3 million at the end of the previous fiscal year. The liabilities increased to $11.9 million, up from $11.3 million, largely due to higher accrued expenses and a promissory note from Suntone, an affiliate of the new sponsor.

Strategically, IWAC is in the process of completing a business combination with Btab Ecommerce Group, Inc., which is expected to be finalized by December 15, 2025. The company has extended its deadline for completing this transaction multiple times, with the latest extension approved in December 2024. Following the approval, shareholders redeemed approximately $36.7 million worth of Class A ordinary shares, leaving 1,185,481 shares subject to possible redemption. The company’s securities were delisted from the NYSE in December 2024 and are now trading on the OTC Markets.

Operationally, IWAC has not yet commenced any revenue-generating activities, as it remains focused on identifying and negotiating a target for its business combination. The company has incurred significant costs related to its public company status, including legal and accounting expenses. As of the end of the first quarter, IWAC had cash of $4,218 outside the Trust Account, which it plans to use for operational expenses leading up to the business combination. The company has expressed concerns about its ability to continue as a going concern if it cannot secure additional financing or successfully complete the business combination.

Looking ahead, IWAC's management remains focused on finalizing the business combination with Btab, which is expected to enhance its market position in the health and wellness sectors. However, the company acknowledges the challenges posed by market conditions and the need for additional capital to support its operations and strategic objectives.