Quetta Acquisition Corporation Reports $193K Net Loss and Decreased Assets in Latest 10-Q Filing

Quetta Acquisition Corporation has reported significant financial changes in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $193,671, a stark contrast to the net income of $611,704 reported for the same period in 2024. This decline is attributed to increased operational costs, which rose to $377,102 from $77,029 year-over-year. Additionally, interest income from investments held in the Trust Account decreased to $280,166 from $925,989, reflecting a broader trend of reduced revenue generation as the company continues to seek a suitable business combination.

The company's total assets have significantly decreased to $18.7 million as of March 31, 2025, down from $74.7 million at the end of 2024. This decline is primarily due to a reduction in investments held in the Trust Account, which fell from $73.1 million to $18.4 million. The decrease in cash reserves, which dropped to $243,921 from $1.6 million, further highlights the company's current financial challenges. Quetta's working capital deficit also widened to $1.2 million, raising concerns about its liquidity and ability to continue operations without securing a business combination.

Strategically, Quetta has made notable progress in its acquisition efforts. The company entered into a non-binding letter of intent with KM QUAD on October 18, 2024, and subsequently signed a definitive merger agreement on February 14, 2025. This agreement outlines a proposed business combination valued at $300 million, which will involve the reincorporation of Quetta and the acquisition of KM QUAD, a film product design and manufacturing company based in China. The transaction is subject to regulatory approvals and shareholder consent, with a completion deadline extended to October 10, 2026.

Operationally, Quetta's stockholder base has been affected by recent redemptions. During a special meeting on January 10, 2025, stockholders approved an amendment to extend the business combination deadline, resulting in the redemption of approximately 5.2 million shares, valued at about $55.2 million. Following these redemptions, the company has 3,747,748 shares outstanding. The company has also incurred significant administrative costs, including $30,000 in related party fees, as it navigates the complexities of remaining a publicly traded entity.

Looking ahead, Quetta's management has expressed concerns regarding its ability to continue as a going concern, given its current financial position and the ongoing costs associated with being a public company. The company has indicated that it may need to raise additional capital to fund its operations and complete the proposed business combination. As it stands, Quetta Acquisition Corporation is actively pursuing its strategic objectives while managing the financial implications of its current operational status.