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Chenghe Acquisition I Co Cl A (LATG0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net income of $224,112 for the three months ended September 30, 2024, compared to $1,014,277 in the same period of the previous year.
The company reported formation and operating costs of $550,635 for the quarter, with trust interest income of $486,747 and a gain of $288,000 from the change in fair value of warrants.
For the nine months ended September 30, 2024, the company recorded a net loss of $408,688, compared to a net income of $3,961,115 in the same period of the previous year.
Cash used in operating activities for the nine months ended September 30, 2024, was $1,094,434, with no cash on hand and a working capital deficit of $4,471,356 as of the end of the period.
The company entered into a Business Combination Agreement with FST Corp. on December 22, 2023, which includes a merger with FST Merger Ltd., making Chenghe a wholly-owned subsidiary of CayCo.
Under the agreement, FST agreed to cover extension fees up to $80,000 per month, with the agreement's termination date extended to January 26, 2025.
The company has issued several promissory notes to fund operations and extend the termination date for its business combination, with a total outstanding of $1,497,479 under the October 2023 Note as of September 30, 2024.
Chenghe's liquidity needs are being met through funds raised from its sponsor and potential working capital loans, with a focus on completing its initial business combination before the mandatory liquidation date.
The filing highlights risks associated with the ongoing Israel-Hamas conflict and the Russia-Ukraine war, which could impact the company's financial position and operations.
The company acknowledges material weaknesses in internal controls, specifically in the areas of accounting for complex financial instruments and timely reconciliation of expenses.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Chenghe Acquisition I Co Cl A quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.