Alchemy Investments Reports Q1 2025 Financial Results with Net Loss of $301,497

Alchemy Investments Acquisition Corp 1 has reported its financial results for the first quarter of 2025, revealing a net loss of $301,497 compared to a net income of $1,413,829 in the same period of the previous year. The company’s operating costs increased significantly to $401,439 from $163,825 year-over-year. The decline in profitability was primarily attributed to a substantial decrease in gains from investments held in the Trust Account, which fell to $124,408 from $1,573,981 in the prior year. The basic and diluted net income per share for Class A ordinary shares was $(0.07) for both redeemable and non-redeemable shares, reflecting the company's current financial challenges.

As of March 31, 2025, Alchemy Investments reported total assets of $12,495,260, a slight increase from $12,098,428 at the end of 2024. The company’s cash and cash equivalents rose to $351,999 from $181,174, while investments held in the Trust Account increased to $12,036,215 from $11,851,808. However, total liabilities also grew to $7,703,187 from $7,004,857, driven by an increase in current liabilities, including a promissory note to a related party that rose to $1,130,000 from $530,000.

The company has not yet identified a target for its initial business combination, which is a key focus of its operations. Alchemy Investments is classified as a smaller reporting company and an emerging growth company, allowing it to take advantage of certain regulatory exemptions. The company has until September 9, 2025, to complete a business combination, following an extension approved by shareholders in October 2024. The management has indicated that it is actively seeking potential acquisition targets but acknowledges the uncertainty surrounding the completion of a business combination.

In terms of operational metrics, the company had 4,532,462 Class A ordinary shares and one Class B ordinary share outstanding as of the end of the reporting period. The company’s working capital deficit stood at $2,069,142, raising concerns about its liquidity and ability to sustain operations without a successful business combination. Management has expressed that the cash held outside the Trust Account may not be sufficient to cover operational costs for the next year, highlighting the urgency of finalizing a business combination to ensure continued viability.

Looking ahead, Alchemy Investments remains focused on identifying a suitable business combination while navigating the challenges posed by market conditions and operational costs. The company’s management is optimistic about the potential for future growth but recognizes the inherent risks associated with the current economic environment and the ongoing geopolitical tensions that could impact its strategic objectives.