Bowen Acquisition Corp Reports $2M Net Loss and Declining Assets in Latest 10-Q Filing

Bowen Acquisition Corp, a blank check company incorporated in February 2023, reported significant financial changes in its latest 10-Q filing for the quarter ending March 31, 2025. The company recorded a net loss of $2,039,997, a stark contrast to a net income of $786,362 during the same period in 2024. The loss was primarily attributed to operating costs of $134,736, interest expenses of $104,721, and a substantial loss of $1,929,656 related to the issuance of a Forward Purchase Agreement (FPA) liability. Additionally, the interest earned on investments held in the trust account decreased to $97,321 from $923,492 year-over-year.

The company's total assets plummeted to $9,620,204 as of March 31, 2025, down from $76,048,300 at the end of the previous fiscal year. This decline was largely due to a significant reduction in the investment held in the trust account, which fell from $75,794,241 to $9,372,109. Current liabilities surged to $2,848,469, compared to $1,053,115 at the end of 2024, reflecting increased accrued expenses and the FPA liability. The shareholders' deficit also widened to $2,600,374 from $799,056, indicating a deteriorating financial position.

In terms of strategic developments, Bowen Acquisition Corp is actively pursuing a business combination with Shenzhen Qianzhi BioTechnology Co. Ltd. The company has extended its timeline to complete this merger, with a new deadline set for July 14, 2025. As part of this process, Bowen has engaged EBC as an advisor and entered into a Prepaid Forward Purchase Agreement to facilitate the transaction. The company has also been involved in significant shareholder redemptions, with 6,052,095 public shares redeemed at approximately $10.99 per share during the recent extraordinary general meeting.

Operationally, Bowen Acquisition Corp has not yet commenced any revenue-generating activities, as it remains focused on identifying and completing its initial business combination. As of March 31, 2025, the company had cash and cash equivalents of $29,806, which is insufficient to cover its working capital deficit of $2,600,374. Management has indicated that it may seek additional funding from related parties to support its operations and complete the business combination. The company’s ability to continue as a going concern is in question, as it faces substantial doubt regarding its financial viability if the business combination is not completed within the specified timeframe.

Looking ahead, Bowen Acquisition Corp's management is focused on finalizing the business combination with Shenzhen Qianzhi and addressing its liquidity challenges. The company is actively working to improve its financial reporting and internal controls, particularly in light of a material weakness identified in its SEC reporting processes. The outcome of these efforts, along with the successful completion of the business combination, will be critical for the company's future operations and financial stability.