Relativity Acquisition Corp. Reports Q3 2024 Net Income of $242,417, Significant Year-Over-Year Improvement

Relativity Acquisition Corp. reported its financial results for the third quarter of 2024, revealing a net income of $242,417, a significant improvement compared to a net loss of $648,782 in the same period last year. The company attributed this positive shift primarily to a gain from the extinguishment of promissory notes amounting to $249,985 and a change in the fair value of warrant liabilities, which contributed $86,041. For the nine months ending September 30, 2024, the company recorded a net loss of $196,776, a notable reduction from the $2,314,982 loss reported for the same period in 2023.

Total assets as of September 30, 2024, stood at $821,923, a decrease from $1,764,813 at the end of 2023. This decline was largely due to a reduction in cash and investments held in the Trust Account, which fell from $1,746,543 to $758,902. The company’s current liabilities increased to $2,440,998, up from $2,157,690 at the end of the previous fiscal year, driven by higher accrued costs and expenses.

In terms of operational developments, Relativity Acquisition Corp. has not yet completed any business combination since its inception. The company continues to seek potential targets for acquisition, with a focus on completing a business combination by February 15, 2026, following a recent extension. As of September 30, 2024, the company had 63,241 public shares outstanding, down from 153,295 at the end of 2023, reflecting stockholder redemptions in connection with the extension of the business combination deadline.

The company has faced challenges, including a working capital deficit of $1,918,849 and a need for additional funding to meet operational expenses. Management has indicated that it may rely on loans from the sponsor or affiliates to finance transaction costs related to a potential business combination. The company’s ability to continue as a going concern is contingent upon successfully completing a business combination within the specified timeframe, as failure to do so would result in mandatory liquidation.

Looking ahead, Relativity Acquisition Corp. remains focused on identifying suitable business combination targets while navigating the complexities of market conditions and regulatory requirements. The company’s management has expressed optimism about completing a business combination, although there are no guarantees regarding the timing or success of such efforts.