Relativity Acquisition Corp. Reports $236,796 Net Loss, Extends Business Combination Deadline

Relativity Acquisition Corp. reported a net loss of $236,796 for the three months ended March 31, 2024, a significant decrease from the $1,301,763 loss recorded in the same period of the previous year. The company attributed this improvement to a reduction in formation and operating costs, which fell to $407,744 from $1,061,055 year-over-year. Additionally, the change in fair value of warrant liabilities contributed positively, with a gain of $157,802 compared to a loss of $254,731 in the prior year. The basic and diluted net loss per share for Class A common stock was $(0.05), consistent with the previous year.

As of March 31, 2024, Relativity's total assets were reported at $737,513, a decline from $1,764,813 at the end of 2023. This decrease was primarily driven by a reduction in cash and investments held in the Trust Account, which fell from $1,746,543 to $728,786. The company also experienced a working capital deficit of $2,019,676, highlighting ongoing liquidity challenges. The number of public shares outstanding decreased significantly due to stockholder redemptions, with only 63,241 shares remaining compared to 153,295 at the end of the previous fiscal year.

Strategically, Relativity has extended its deadline to complete a business combination from February 15, 2024, to February 15, 2025. This extension was accompanied by a redemption of 90,054 public shares, resulting in approximately $1.02 million being withdrawn from the Trust Account. The company has indicated that it may need to raise additional funds to meet operational expenditures and complete a business combination, with potential working capital loans from its sponsor or affiliates being a possible avenue for financing.

Operationally, Relativity has not yet commenced any business operations since its inception in April 2021, focusing instead on identifying a target for a business combination. The company has not generated any operating revenues and relies on non-operating income from interest earned on its Trust Account investments. The management has expressed uncertainty regarding its ability to complete a business combination within the extended timeframe, raising concerns about the company's ability to continue as a going concern if it fails to do so.

Looking ahead, Relativity's management remains focused on identifying a suitable business combination target while navigating the challenges posed by market conditions and liquidity constraints. The company has acknowledged the potential impact of economic uncertainties, including inflation and geopolitical instability, on its operations and ability to complete a business combination.