Quetta Acquisition Corporation Reports Significant Net Loss and Decreased Assets in Latest 10-Q Filing

Quetta Acquisition Corporation reported significant financial changes in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $607,950 for the three months ended June 30, 2025, compared to a net income of $544,417 for the same period in 2024. For the six months ending June 30, 2025, the net loss was $801,621, a stark contrast to the net income of $1,156,121 reported in the previous year. The losses were primarily attributed to increased operational costs, which rose to $723,999 in the second quarter of 2025 from $150,225 in the same quarter of 2024.

The company's total assets decreased significantly to $19,037,158 as of June 30, 2025, down from $74,689,073 at the end of 2024. This decline was largely due to a reduction in investments held in the Trust Account, which fell from $73,115,355 to $18,716,360. The company also reported a working capital deficit of $2,134,700, raising concerns about its ability to continue as a going concern. As of June 30, 2025, Quetta had cash reserves of $225,929, a decrease from $1,554,737 at the end of 2024.

Strategically, Quetta has been pursuing a business combination with KM QUAD, a Cayman Islands company, which is expected to be finalized by October 10, 2026. The merger agreement includes a total consideration of $300 million, payable in newly issued shares. The company has also extended its deadline for completing a business combination multiple times, with the latest extension allowing for a potential completion by October 2026. As part of this process, Quetta has incurred significant transaction costs, which have contributed to its current financial losses.

Operationally, Quetta's stockholder base has changed, with 5,199,297 shares tendered for redemption during a special meeting in January 2025, resulting in approximately $55,152,224 being removed from the Trust Account. Following these redemptions, the company has 3,747,748 shares of common stock issued and outstanding. The company has also faced challenges related to rising operational costs and the need for ongoing public company compliance, which have further strained its financial position.

Looking ahead, Quetta's management has expressed uncertainty regarding its ability to complete a business combination within the required timeframe, which could lead to voluntary liquidation. The company continues to evaluate its options for raising capital and managing its operational costs, while also navigating the complexities of the proposed merger with KM QUAD. The financial statements reflect substantial doubt about the company's ability to continue as a going concern, emphasizing the need for strategic decisions in the coming months.