EPS of $-0.02 increased by 51.4% from previous year
Net income of -170.30K
"No transcript available." - N/A
IMAQ QQ2 2025 Results Summary and Investment Analysis – International Media Acquisition Corp (IMAQ) | QQ2 2025 | Media & Entertainment SPAC
Executive Summary
IMAQ operates as a shell company pursuing a business combination in the media and entertainment sector. For QQ2 2025, the company disclosed no revenue and posted an operating loss of $-202,957, driven entirely by general and administrative expenses plus other operating costs. The quarter culminated in a net loss of $-170,303 with basic earnings per share of $-0.0226. The business remains heavily capitalized by debt and has virtually no operating cash flow, signaling a high-risk, transitionary period pending a credible target and financing.
On the balance sheet, total assets stand at $11.85 million, while current assets are a negligible $47,805 and current liabilities exceed $7.07 million, producing a near-zero liquidity position (current ratio ~0.0068). Shareholders’ equity remains negative at approximately $-3.39 million, indicating a funded but distressed equity base. Net cash from operating activities was negative $109k, with financing activities providing $168.9k; the net cash change was approximately a $0.25k decrease from the prior period.
Overall, the near-term investment case hinges on securing a viable merger partner and favorable financing terms. Absent a credible business combination or material capital infusions, the risk-reward remains highly skewed to the downside given liquidity constraints, ongoing cash burn, and the absence of disclosed revenue streams.
Key Performance Indicators
Operating Income
-202.96K
QoQ: 25.08% | YoY:66.44%
Net Income
-170.30K
QoQ: -9.97% | YoY:56.80%
EPS
-0.02
QoQ: -9.71% | YoY:51.40%
Revenue Trend
Margin Analysis
Key Insights
Cash and cash equivalents: effectively zero at period end (cash at end of period not disclosed; start of period $0.25k).
Working capital: Total current assets $47,805 vs. total current liabilities $7,065,563; current ratio approx. 0.0068.
Balance Sheet: Total assets $11,849,083; Total liabilities $15,239,879; Total stockholders’ equity $(3,390,796).
Debt: Short-term debt $4,186,927; Total debt $4,186,927; Net debt $4,186,927.
Earnings Quality: Earnings are driven by non-operating costs (G&A and other expenses) with no disclosed revenue base; valuation metrics based on earnings are not meaningful in this shell/SPAC context.
Financial Highlights
Revenue: Not disclosed (null) – no material operating revenue reported for QQ2 2025. Gross Profit: N/A due to lack of revenue.
Operating Income: -$202,957; YoY change reported as +66.44% and QoQ +25.08% in the data, but these metrics are not meaningful without revenue context and a comparable prior period.
Net Income: -$170,303; YoY +56.80% (lower absolute loss than some prior periods in the four-quarter window but still a loss-making entity).
EPS: -$0.0226; YoY +51.40% (same caveat as above).
Liquidity/Cash Flow:
- Cash and cash equivalents: effectively zero at period end (cash at end of period not disclosed; start of period $0.25k).
- Operating cash flow: -$109,142; Free cash flow: -$109,142.
- Working capital: Total current assets $47,805 vs. total current liabilities $7,065,563; current ratio approx. 0.0068.
Balance Sheet: Total assets $11,849,083; Total liabilities $15,239,879; Total stockholders’ equity $(3,390,796).
Debt: Short-term debt $4,186,927; Total debt $4,186,927; Net debt $4,186,927.
Earnings Quality: Earnings are driven by non-operating costs (G&A and other expenses) with no disclosed revenue base; valuation metrics based on earnings are not meaningful in this shell/SPAC context.
Income Statement
Metric
Value
YoY Change
QoQ Change
Operating Income
-202.96K
66.44%
25.08%
Net Income
-170.30K
56.80%
-9.97%
EPS
-0.02
51.40%
-9.71%
Key Financial Ratios
currentRatio
0.01
returnOnAssets
-1.44%
returnOnEquity
5.02%
debtEquityRatio
-1.24
operatingCashFlowPerShare
$-0.01
freeCashFlowPerShare
$-0.01
priceToBookRatio
-24.09
priceEarningsRatio
-119.92
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No earnings-call transcript was provided in the material. Transcript highlights cannot be generated without actual management call content. If a transcript becomes available, the highlights should group management commentary by themes such as strategy (target sectors, deal timelines), operations (cost controls, use of proceeds), market conditions (M&A climate for media/entertainment), and financing/timing (capital needs, trust funds, sponsor support).
No transcript available.
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No transcript available.
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Forward Guidance
No formal forward guidance was disclosed in the provided data. In a typical SPAC/shell scenario, forward-looking commentary would hinge on securing a credible merger target in the media and entertainment space, securing requisite financing, and ensuring regulatory and shareholder approvals. Absent a disclosed target and financing plan, the near-term guidance remains undefined. Investors should monitor for: (1) announced target candidates and deal terms, (2) changes to trust/account structure or sponsor commitments, (3) additional capital raises or debt facilities, and (4) regulatory filings detailing business combination timelines. Achievability of any forward plan largely depends on market conditions and the ability to secure a high-quality target within anticipated timelines.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
IMAQ Focus
0.00%
0.00%
5.02%
-119.92%
OLITW
0.00%
0.00%
0.00%
2.60%
ENTF
0.00%
0.00%
0.00%
7,644,300,000.00%
OAKUU
0.00%
0.00%
-0.45%
-25.41%
DHAC
71.60%
-40.70%
-0.60%
-48.65%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Current QQ2 2025 results reinforce a highly speculative investment posture. IMAQ operates as a shell/SPAC without disclosed revenue, producing a negative EBITDA and net income, while carrying a distressed balance sheet with negligible liquidity. The primary near-term catalyst would be the identification and closing of a credible media/entertainment target, accompanied by adequate financing to support a merged entity’s plan. Absent a tangible deal or material capital infusions, the investment thesis is unattractive due to persistent cash burn, negative equity, and liquidity risk.
If management announces a high-quality target and executes a favorable merger within a reasonable timeframe, the stock could re-rate on potential synergies, scale, and access to new capital. However, given the current financial position, any investment should be restricted to high-risk, tolerant portfolios with clearly defined exit strategies and contingency plans for dilution or sponsor recapitalization. Investors should vigilantly monitor SEC filings, potential trust balance disclosures, and any updates on deal timelines to reassess the risk-adjusted return profile.
Key Investment Factors
Growth Potential
Growth potential is contingent on completing a credible media/entertainment business combination. If a high-quality target is secured, equity could re-rate on synergy expectations, scale of the merged entity, and potential access to new capital channels. Until then, growth prospects are not realizable given the current lack of revenue.
Profitability Risk
Key risks include: (i) continued lack of operating revenue; (ii) extreme liquidity strain (current ratio ~0.007), high short-term debt, negative equity; (iii) reliance on future financing and successful deal execution; (iv) potential dilution or sponsor-related risks; (v) regulatory and market risks in the SPAC/merger process.
Financial Position
Asset base largely concentrated in non-current assets ($11.80m) with minimal current assets ($47.8k) and substantial current liabilities ($7.07m). Negative shareholders’ equity (-$3.39m) indicates a fragile capital structure. Debt load is modest in absolute terms ($4.19m) but unsupported by cash flow and revenue visibility. Cash flow is negative from operations (-$109k) with a small financing inflow (+$168.9k), suggesting limited liquidity runway absent new financing or a target close. Overall, the balance sheet signals a distressed, transitionary stage typical of a shell/SPAC awaiting a business combination.
SWOT Analysis
Strengths
SPAC framework with potential to execute a media/entertainment business combination
Regulatory compliance as a reporting entity (SEC filings) and sponsor-driven governance
Large non-current asset base may represent trust or intended target alignment (subject to clarification)
Weaknesses
No disclosed current-operations revenue; persistent net losses; negative equity (-$3.39m)
Severe liquidity constraints (current ratio ~0.007) and negligible cash balance
Dependence on future capital raises or a successful deal to provide value
Ambiguity around the nature of non-current assets and underlying assets
Opportunities
Opportunity to unlock significant value via a strategic merger with a media/entertainment target
Potential for sponsor-driven recapitalization or trust restructuring upon deal agreement
Market interest in media/entertainment consolidation could improve deal terms and evaluation if a high-quality target is identified
Threats
Regulatory scrutiny or delays in completing a business combination
Adverse market conditions impacting SPAC deal flow and sponsor commitments
Dilution risk and potential misalignment between sponsor interests and public shareholders
Continued lack of operating revenue undermining investor confidence and valuation
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