Cartica Acquisition Corp Reports Net Income of $5.9 Million in Q2 2025

Cartica Acquisition Corp has reported its financial results for the second quarter of 2025, revealing a significant turnaround from the previous fiscal period. For the three months ended June 30, 2025, the company recorded a net income of $5.9 million, compared to a net loss of $4.0 million during the same period in 2024. This improvement is attributed primarily to a $6.0 million gain from the change in fair value of warrant liabilities, alongside $170,039 in interest income from cash held in the Trust Account. The company’s operating and formation costs decreased sharply to $258,137 from $2.2 million in the prior year, reflecting a strategic reduction in expenses.

In terms of overall financial health, Cartica's total assets as of June 30, 2025, stood at approximately $16.4 million, a decline from $26.4 million at the end of 2024. This decrease is largely due to a reduction in cash held in the Trust Account, which fell to $16.4 million from $26.4 million. Current liabilities increased to $8.2 million from $7.2 million, driven by higher accounts payable and accrued expenses. The company’s shareholders’ deficit also improved, narrowing to $8.99 million from $14.59 million at the end of 2024, primarily due to the net income generated during the quarter.

Strategically, Cartica Acquisition Corp is in the process of completing a business combination with Nidar Infrastructure Limited, a data center provider in India. The company has until October 7, 2025, to finalize this transaction, having received extensions to its original deadline. The company has also engaged in various financing activities, including the issuance of promissory notes to its Sponsor, which have increased the available capital for operational needs. As of June 30, 2025, the company had $2.2 million outstanding under these notes.

Operationally, Cartica has seen fluctuations in its customer base and market engagement metrics. The number of Class A ordinary shares subject to possible redemption decreased to 1.35 million from 2.25 million, indicating a reduction in shareholder redemptions. The company’s management has indicated that it is actively seeking to identify and evaluate potential acquisition targets, with a focus on maintaining liquidity to support these efforts. However, the company has expressed concerns regarding its ability to continue as a going concern if it fails to complete a business combination by the extended deadline.

Looking ahead, Cartica Acquisition Corp remains focused on executing its business combination with Nidar and is exploring additional financing options to bolster its liquidity. The company has acknowledged the potential risks associated with market conditions and operational challenges that could impact its ability to complete the transaction. As it navigates these complexities, Cartica is committed to providing ongoing updates to its shareholders regarding its progress and strategic initiatives.