Alpha Star Acquisition Corporation reported its financial results for the third quarter of 2025, revealing a net loss of $173,573 for the three months ending September 30, compared to a loss of $139,268 during the same period in 2024. For the nine months ended September 30, 2025, the company recorded a net loss of $511,835, a significant decline from a net income of $1,322,882 in the prior year. The company's operating expenses for the third quarter were $179,556, down from $459,346 in the previous year, while interest and dividends earned from marketable securities held in trust amounted to $5,983 for the quarter, a decrease from $320,078 in 2024.
The company's total assets decreased to $845,726 as of September 30, 2025, down from $11,113,353 at the end of 2024. This decline was primarily due to a significant reduction in marketable securities held in trust, which fell from $10,819,317 to $666,445. Current liabilities also decreased to $1,808,226 from $11,564,018, largely due to the redemption of public shares. The stockholders' deficit widened to $4,478,945, compared to $3,618,201 at the end of the previous fiscal year, reflecting ongoing operational losses.
Strategically, Alpha Star Acquisition Corporation has been focused on completing a business combination, having established a wholly owned subsidiary, Xdata Group, in September 2024, as part of its merger plans. The company has extended the deadline for completing its business combination to December 15, 2025, following shareholder approvals for various amendments to its articles of association. The company has also engaged in discussions regarding a business combination with OU XDATA GROUP, which is expected to be finalized in the near future.
Operationally, the company has faced challenges, including a significant reduction in cash reserves and a working capital deficit of $1,628,427 as of September 30, 2025. The company has relied on loans from its sponsor, A-Star Management Corporation, to cover operational costs and extension fees. As of the reporting date, the balance of promissory notes and loans payable to the sponsor was $1,315,158, up from $394,488 at the end of 2024. The company has indicated that it may need to raise additional capital to meet its operational needs and complete its business combination.
Looking ahead, Alpha Star Acquisition Corporation's management has expressed uncertainty regarding its ability to continue as a going concern if it fails to complete a business combination by the extended deadline. The company has acknowledged the need for additional financing and has indicated that it may need to curtail operations if it cannot secure the necessary funds. The management team remains focused on finalizing the business combination and is actively pursuing opportunities to enhance its financial position.
About Alpha Star Acquisition Corp
Alpha Star Acquisition Corporation is a Cayman Islands-based blank check company formed to effect mergers, share exchanges, or acquisitions with one or more businesses. It targets middle-market growth companies, primarily in Asian markets, across sectors like clean energy, technology, fintech, healthcare, and manufacturing. The company leverages its management’s network and capital markets expertise to identify businesses with strong growth and cash flow potential that benefit from becoming publicly traded.
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