<div id="readability-page-1">Broad Capital Acquisition Corp, an early-stage blank check company focused on effecting an initial business combination, has released its Form 10-K report for the year ended December 31, 2024. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the current market environment. Financial Highlights <ul><li>Net Loss: $1.12 million. The company reported a net loss for the year ended December 31, 2024, primarily due to formation and operating costs, franchise tax, and interest expenses, partially offset by interest earned on cash held in Trust.</li><li>Interest Earned on Cash Held in Trust: $0.89 million. The interest income was generated from cash and cash equivalents held in the Trust Account, benefiting public stockholders.</li><li>Formation and Operating Costs: $1.58 million. These costs contributed significantly to the net loss for the year ended December 31, 2024.</li><li>Franchise Tax: $0.18 million. This tax was part of the expenses leading to the net loss for the year.</li><li>Interest Expenses: $0.26 million. Interest expenses further impacted the net loss for the year ended December 31, 2024.</li></ul> Business Highlights <ul><li>Business Purpose: The company is an early-stage blank check company, incorporated in April 2021, with the primary purpose of effecting an initial business combination.</li><li>Initial Public Offering: The company closed its initial public offering on January 13, 2022, selling 10,000,000 units at $10.00 per unit, generating gross proceeds of $100,000,000.</li><li>Management Team: Led by Johann Tse as CEO and Rongrong (Rita) Jiang as CFO, both with extensive experience in corporate operations, venture capital, and multinational mergers and acquisitions.</li><li>Openmarkets Merger Agreement: The company entered into a merger agreement with Openmarkets Group Pty Ltd. on January 18, 2023, which was later terminated by Openmarkets on February 12, 2025.</li><li>Business Strategy: The company aims to partner with high-quality companies seeking alternatives to traditional IPOs, focusing on sectors like AI, IoT, and zero-emission technologies.</li><li>Target Sectors: The company targets high-growth markets such as North America and Asia Pacific, with a focus on technologies with massive potential.</li><li>Acquisition Criteria: The company seeks targets with large and growing markets, attractive business models, strong management teams, and a focus on ESG and sustainability.</li><li>Acquisition Process: The company conducts comprehensive due diligence, including financial analysis, technology diligence, and consultations with industry experts.</li><li>Public Company Status: As a public company, the company offers target businesses an alternative to traditional IPOs, providing access to capital and public securities markets.</li><li>Future Outlook: The company plans to leverage its management team's network to identify and complete a business combination that can benefit from managerial experience, additional capital, and access to public markets.</li><li>Operational Focus: The company is not engaged in any operations other than pursuing an initial business combination, with a focus on using proceeds from its IPO and private placements.</li></ul> Strategic Initiatives <ul><li>Strategic Initiatives: The company is focused on completing a Business Combination using proceeds from its IPO and private placements. It has been actively searching for a target company for this purpose, although the recent termination of the Openmarkets Merger Agreement has impacted this initiative. The company is also considering borrowing through Working Capital Loans to support its strategic goals.</li><li>Capital Management: The company completed its IPO on January 11, 2022, raising $101 million through the sale of units, which included common stock and rights. Additional funds were raised through private placements and the exercise of the Over-Allotment Option. The company has not paid any dividends and does not plan to do so before completing its initial business combination. It has also not engaged in any equity repurchases. The company has outstanding obligations, including deferred underwriting commissions and monthly fees for administrative support.</li><li>Future Outlook: The company faces substantial doubt about its ability to continue as a going concern due to limited cash reserves and the uncertainty of completing a Business Combination within the prescribed period. Management plans to address this uncertainty through potential borrowing of Working Capital Loans. The company is also exploring additional financing options to meet its working capital needs and sustain operations.</li></ul> Challenges and Risks <ul><li>Business Challenges: The company faces challenges in identifying suitable targets and completing a business combination within the specified timeframe, which is critical for its continued operation.</li><li>Risk Factors: The company faces numerous risks, including the inability to select an appropriate target business and complete a business combination within the prescribed timeframe, which could lead to liquidation. The company is a blank check entity with no revenue, making it difficult to evaluate its ability to select a suitable business target. There are also risks related to the issuance of equity or debt securities to complete a business combination, potential delisting from Nasdaq, and the impact of COVID-19. Regulatory changes, such as those proposed by the SEC for SPACs, could increase costs and constrain the circumstances under which a business combination could be completed. Additionally, the company has identified a material weakness in its internal control over financial reporting, which could affect investor confidence.</li><li>Management’s Discussion and Analysis: The company has not generated any revenue and has incurred significant costs in pursuit of a business combination. The termination of the Openmarkets Merger Agreement highlights the challenges in completing a business combination. The company has a net loss and faces substantial doubt about its ability to continue as a going concern if it does not complete a business combination by January 13, 2026. Management acknowledges the need for effective internal controls and the potential impact of inflation and interest rate increases on the ability to consummate a business combination.</li><li>Market Risks: The company is exposed to market risks, including interest rate fluctuations that could affect the funds held in the trust account. Additionally, geopolitical events, such as military conflicts, could lead to increased price volatility for publicly traded securities, complicating the completion of a business combination.</li></ul>SEC Filing: Broad Capital Acquisition Corp [ BRAC ] - 10-K - Apr. 15, 2025</div>

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Broad Capital Acquisition Corp has released its Form 10-K report for the year ended December 31, 2024, reporting a net loss of $1.12 million due to formation costs and interest expenses. The company, focused on initial business combinations, aims to partner with high-quality firms in sectors like AI and zero-emission technologies. Despite raising $101 million through its IPO, it faces challenges in identifying suitable targets and completing a business combination, raising concerns about its ability to continue as a going concern. The recent termination of a merger agreement with Openmarkets has further impacted its strategic initiatives.

Broad Capital Acquisition Corp SEC 10-K Report