Based on the provided financial report articles, I generated the title for the article: **"Quarterly Financial Report for Q2 2026: QETA, Inc."** Please note that the title may not be exact, as the provided text appears to be a financial report with various sections and data, and the title may not be explicitly stated.
Based on the provided financial report articles, I generated the title for the article: **"Quarterly Financial Report for Q2 2026: QETA, Inc."** Please note that the title may not be exact, as the provided text appears to be a financial report with various sections and data, and the title may not be explicitly stated.
The financial report presents the financial statements of the company for the second quarter of 2026, including the balance sheet, income statement, and cash flow statement. The company reported a net income of $X million for the quarter, with revenue increasing by Y% compared to the same period last year. The company’s cash and cash equivalents decreased by Z% to $X million, while its accounts payable and accrued expenses increased by W% to $X million. The company’s stockholders’ equity decreased by V% to $X million, primarily due to the issuance of new shares. The company’s debt increased by U% to $X million, primarily due to the issuance of new debt securities. The company’s cash flow from operations was $X million, while its cash flow from investing activities was ($X) million. The company’s cash flow from financing activities was $X million.
Overview
We are a blank check company incorporated in Delaware on May 1, 2023. Our purpose is to identify and merge with a target business, particularly in the financial technology sector in Asia. We have not yet engaged in any operations or generated any revenue. Our activities so far have focused on evaluating potential target businesses, negotiating a business combination agreement, and managing our public company status and trust account.
Extensions of Time Period to Complete a Business Combination
In October 2024, we entered into a non-binding letter of intent with QUAD regarding a potential business combination. This extended our deadline to complete a business combination to January 10, 2025. In January 2025, our shareholders approved extending this deadline further, up to October 10, 2026, by making monthly $60,000 deposits into our trust account.
Redemption
In January 2025, 5,199,297 shares were redeemed, resulting in $55.2 million being removed from our trust account. After the redemptions, we had $18.0 million remaining in the trust account and 3,747,748 shares outstanding.
Acquisition Criteria Expansion
In January 2025, our shareholders approved expanding our acquisition criteria to include entities with principal operations in China, Hong Kong, and Macau.
Results of Operations
For the three months ended June 30, 2026, we had net income of $884,904, primarily due to a gain on forgiveness of a promissory note and interest earned on our trust account. For the three months ended June 30, 2025, we had a net loss of $607,950, mainly from operational costs.
For the six months ended June 30, 2026, we had net income of $871,383, again driven by the gain on forgiveness of the promissory note. For the six months ended June 30, 2025, we had a net loss of $801,621, primarily from operational costs.
Liquidity and Capital Resources
As of June 30, 2026, we had $4,575 in cash, $19.9 million in our trust account, and a working capital deficit of $2.4 million. We have continued to make the required monthly $60,000 deposits into the trust account to extend our deadline to complete a business combination.
Management has expressed substantial doubt about our ability to continue as a going concern, given our working capital deficit and the need to complete a business combination within the required timeframe.
Contractual Obligations
We have an administrative services agreement with our sponsor, under which we pay $10,000 per month. We also have a deferred underwriting fee of 3.5% of our IPO proceeds, payable upon completion of a business combination.
Previously, we had a promissory note arrangement with KM QUAD related to extension payments, but this was terminated in 2026.
Critical Accounting Policies and Estimates
We have not identified any critical accounting policies or estimates that significantly impact our financial statements.
In summary, we continue to work towards completing a business combination, having extended our deadline multiple times. Our financial performance has been mixed, with net income in 2026 but net losses in 2025, largely due to one-time gains and operational costs. Liquidity remains a concern, and management has expressed doubts about our ability to continue as a going concern without a successful business combination.