EPS of $-0.02 decreased by 151.5% from previous year
Net income of -154.87K
"N/A" - N/A
IMAQU QQ1 2025 Results Analysis – International Media Acquisition Corp (IMAQU) | SPAC in Media & Entertainment Sector
Executive Summary
IMAQU, a shell company pursuing a business combination in the media and entertainment sector, reported a QQ1 2025 period characterized by negative earnings and a precarious liquidity position. Operating losses persisted (-$270,890 EBITDA; -$270,890 operating income) as the company incurred a modest level of G&A expense ($220,890) and other expenses ($50,000). Net income came in at -$154,867 and earnings per share were -$0.0206, reflecting the SPAC’s lack of operating revenue and ongoing costs associated with the de-SPAC lifecycle.
Cash flow remained distressful, with -$431,597 generated from operating activities, and only $510,800 raised via financing activities to fund the burn, leaving end-of-period cash at $247. The balance sheet shows a leveraged and fragile financial position: total liabilities of $14.885 million versus total assets of $11.647 million, and negative stockholders’ equity of -$3.220 million. Short-term debt stood at $4.018 million, and net debt was approximately $4.018 million. Given the absence of reported revenue and the need to complete a successful merger or strategic reorganization, investors should monitor deal progress, sponsor support, and the potential for redemptions that could materially impact liquidity and equity value.
Overall, the QQ1 2025 results underscore the typical risk profile of a SPAC in the pre-deal phase: value realization hinges on identifying a compelling target, achieving a favorable de-SPAC outcome, and managing dilution and redemption risk in a capital-constrained environment.
Key Performance Indicators
Operating Income
-270.89K
QoQ: 43.22% | YoY:-328.09%
Net Income
-154.87K
QoQ: 41.76% | YoY:-148.00%
EPS
-0.02
QoQ: N/A | YoY:-151.50%
Revenue Trend
Margin Analysis
Key Insights
Cash and cash equivalents: $247
Total current assets: $72,505; Total current liabilities: $6,799,501; Current ratio: 0.0107
Short-term debt: $4,018,032; Total debt: $4,018,032; Net debt: $4,017,785
Total assets: $11,664,869; Total liabilities: $14,885,362; Total stockholders’ equity: -$3,220,493
Debt to capitalization: 5.04; Price to book: -26.86 (negative equity)
Financial Highlights
Revenue: Not reported for QQ1 2025 (null). Gross Profit: Not reported (null). Gross Profit Margin: Not available.
Operating Income: -$270,890; QoQ change: +43.22%; YoY change: not disclosed in this data set (Y/Y memo shows -328.09% in incomeMetrics).
EBITDA: -$270,890; YoY: not provided; QoQ: not applicable given SPAC nature.
EPS: -$0.0206; QoQ: not applicable; YoY: -151.50%.
Liquidity and leverage:
- Cash and cash equivalents: $247
- Total current assets: $72,505; Total current liabilities: $6,799,501; Current ratio: 0.0107
- Short-term debt: $4,018,032; Total debt: $4,018,032; Net debt: $4,017,785
- Total assets: $11,664,869; Total liabilities: $14,885,362; Total stockholders’ equity: -$3,220,493
- Debt to capitalization: 5.04; Price to book: -26.86 (negative equity)
Cash flow:
- Net cash provided by operating activities: -$431,597
- Net cash used in investing activities: -$80,000
- Net cash provided by financing activities: $510,800
- Net change in cash: -$797; Cash at end of period: $247; Free cash flow: -$431,597
Valuation and profitability indicators (selected):
- Enterprise value: -$334.18 (per ratios)
- Price-to-book: -$26.86; Price-to-earnings: -139.65
- Return on assets (ROA): -1.33%; Return on equity (ROE): 4.81%
- EBITDA margin: N/A given negative EBITDA; Operating cash flow-to-sales: 0; Free cash flow as a function of operations: -431,597
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-270.89K
-328.09%
43.22%
Net Income
-154.87K
-148.00%
41.76%
EPS
-0.02
-151.50%
N/A
Key Financial Ratios
currentRatio
0.01
returnOnAssets
-1.33%
returnOnEquity
4.81%
debtEquityRatio
-1.25
operatingCashFlowPerShare
$-0.06
freeCashFlowPerShare
$-0.06
priceToBookRatio
-26.86
priceEarningsRatio
-139.65
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript not provided for QQ1 2025. No management quotes or themes available to summarize. In the absence of a transcript, the analysis relies on disclosed financials and SEC filings to frame the business mix and de-SPAC dynamics. Investors should rely on future disclosures and prepared remarks from management to capture insights on target pipeline, merger timing, sponsor commitments, and redemption guidance.
N/A
— N/A
N/A
— N/A
Forward Guidance
No formal forward guidance was disclosed for QQ1 2025. Given IMAQU’s SPAC structure, the near-term focus typically centers on identifying a viable media and entertainment target, securing regulatory approvals, and achieving de-SPAC milestones within a defined time horizon. Absent explicit targets or timing from management, investors should monitor: (1) updates to the deal pipeline and likelihood of sponsor support; (2) any redemptions or new equity financings that would affect liquidity; (3) regulatory filings (e.g., 8-K, 10-K/10-Q) for de-SPAC milestones and potential valuation consensus. Realistic short-term scenarios suggest ongoing cash burn unless a compelling target is announced with favorable terms, which would be required to justify a re-rating from current negative equity and stressed liquidity.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
IMAQU Focus
0.00%
0.00%
4.81%
-139.65%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the current QQ1 2025 financials, IMAQU remains a high-risk SPAC with a precarious balance sheet and meaningful cash burn absent a disclosed deal. The investment thesis rests on identifying and closing a compelling media/entertainment target that can deliver credible cash flows and justify a de-SPAC premium. Until a target or guidance is disclosed, downside risk remains substantial due to negative equity, liquidity constraints, and reliance on external financing. Investors should monitor deal updates, sponsor support, and potential redemptions, as these factors will primarily dictate whether the equity can recover post-deal or continue to erode. In a scenario where a high-quality target is announced with favorable terms, upside could materialize, but the path to that outcome is highly contingent on near-term strategic actions and market timing.
Key Investment Factors
Growth Potential
Growth upside hinges on a successful business combination with a media/entertainment target that has scalable cash flows and synergies with the SPAC’s existing investor base. The current lack of revenue and substantial negative equity imply that any meaningful upside will depend entirely on closing a deal with favorable economics and strong sponsor alignment. The potential implicit upside includes the possibility of a higher valuation upon de-SPAC completion if the target delivers growth or if capital markets provide support for SPACs with credible targets.
Profitability Risk
Major risks include continued operating losses without revenue, acute liquidity constraints (current ratio ~0.01, cash of $247), significant negative stockholders’ equity, and a heavy reliance on successful acquisition as the primary value driver. Redemptions by public shareholders could erode capital available for a deal, increasing funding risk. Regulatory and market environments for SPACs remain uncertain, and competition for high-quality media/entertainment targets could compress deal economics. Any misalignment between the sponsor and minority holders could amplify governance and value-distribution risks.
Financial Position
Financial health is fragile: total liabilities of $14.89 million exceed assets of $11.66 million, resulting in negative equity of approximately $3.22 million. Short-term debt of $4.02 million dominates near-term obligations with negligible cash. Operating cash burn of $431.6k, paired with a lack of reported revenue, signals limited liquidity runway unless a deal is announced and closes. The leverage profile (debt-to-capitalization ~5.04) and negative enterprise valuation metrics highlight substantial hurdles to achieving a favorable de-SPAC outcome without a compelling target.
SWOT Analysis
Strengths
Public listing on OTC provides a vehicle for liquidity and deal execution in the SPAC framework.
Clear strategic focus on completing a business combination in the media and entertainment sector, which remains a sizable market with potential for consolidation.
Weaknesses
No reported revenue for QQ1 2025; heavy reliance on a successful de-SPAC to create value.
Severely limited liquidity (current ratio 0.0107) and negative stockholders’ equity, implying elevated financial risk.
Significant negative equity and reliance on external funding to sustain operations.
Opportunities
Potential value realization through a well-aligned media/entertainment acquisition with strong cash flows.
Sponsor commitments or strategic partnerships could improve liquidity and accelerate deal closing.
Market interest in media content deals could provide favorable deal terms if a high-quality target is found.
Threats
Redemption risk reducing capital available for a deal and increasing funding pressure.
Market volatility and regulatory scrutiny surrounding SPACs could delay or derail a de-SPAC transaction.
Competition from other SPACs for premium targets could compress deal economics and increase dilution risk.
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