Investcorp AI Acquisition Corp Reports Significant Financial Decline, Net Loss in Latest 10-Q Filing

Investcorp AI Acquisition Corp, previously known as Investcorp India Acquisition Corp, reported significant financial changes in its latest 10-Q filing for the period ending September 30, 2024. The company, classified as a shell entity and an emerging growth company, has not commenced any operations since its incorporation on February 19, 2021.

As of September 30, 2024, total current assets were $80,203, a substantial decrease from $469,143 as of December 31, 2023. Cash reserves also fell sharply to $73,202 from $276,777. The Trust Account, which holds cash and securities, decreased to $17,169,326 from $108,031,746, reflecting a significant reduction in available funds. Total assets dropped to $17,249,529, down from $108,500,889, while total liabilities increased to $4,944,081 from $2,534,395, resulting in an accumulated deficit of $(4,864,525), up from $(2,065,899).

In terms of income, the company reported a net loss of $(229,238) for Q3 2024, compared to a net income of $1,210,015 in Q3 2023. Year-to-date figures also showed a decline, with net income for the nine months ending September 30, 2024, at $1,786,538, down from $6,755,292 in the same period the previous year. Interest earned on marketable securities also decreased significantly, with Q3 2024 reporting $965,870 compared to $2,503,463 in Q3 2023.

The company has been active in managing its capital structure, with significant shareholder redemptions occurring. On August 12, 2024, shareholders approved an extension of the business combination deadline to May 12, 2025, following the redemption of 8,314,066 Class A ordinary shares at approximately $11.40 per share, totaling about $95,447,584. This followed a previous redemption of 16,085,554 shares in August 2023.

Strategically, the company has engaged in discussions for a business combination with Bigtincan Holdings Limited (BTH). A non-binding proposal was submitted on October 1, 2024, and subsequent agreements were executed, including a business combination agreement dated October 20, 2024. The company plans to use funds from its Trust Account for identifying and evaluating target businesses and transaction costs related to the business combination.

As of September 30, 2024, the company had a working capital deficit of $3,122,377 and outstanding Working Capital Loans of $780,000. The financial statements raise substantial doubt about the company's ability to continue as a going concern within one year from the issuance date, highlighting the need for successful completion of a business combination by the extended deadline.