Cayson Acquisition Corp Reports Net Income of $404,677 for Q1 2025

Cayson Acquisition Corp, a blank check company incorporated in the Cayman Islands, reported a net income of $404,677 for the three months ending March 31, 2025. This figure is derived from a loss of $235,799 attributed to formation and operating costs, offset by $640,476 in other income, primarily from interest earned on cash and investments held in a trust account. The company’s total assets increased slightly to $61.88 million from $61.41 million at the end of the previous fiscal period, with cash and investments held in the trust account rising to $61.39 million from $60.75 million.

Comparatively, Cayson Acquisition Corp's accumulated deficit grew to $1.77 million as of March 31, 2025, up from $1.54 million at the end of December 2024. The increase in the accumulated deficit is primarily due to the ongoing costs associated with the company's formation and operations, as it has yet to engage in any business combinations or generate operating revenues. The company’s current liabilities also rose to $162,993 from $103,025, reflecting an increase in accrued expenses.

Strategically, Cayson Acquisition Corp has not yet identified a specific target for its initial business combination, which is a key focus of its operations. The company completed its initial public offering (IPO) on September 23, 2024, raising $60 million by selling 6 million units at $10 each. Additionally, it sold 230,000 private placement units to its sponsors, generating an additional $2.3 million. The funds from the IPO and private placement are primarily held in a trust account and are intended for use in completing a business combination.

Operationally, Cayson Acquisition Corp reported a cash balance of $315,185 as of March 31, 2025, down from $465,254 at the end of the previous year. The company has incurred cash used in operating activities of $150,069 during the first quarter of 2025. The management has indicated that it may face challenges in sustaining operations without completing a business combination, raising concerns about its ability to continue as a going concern within the next year. The company has also acknowledged that it may require additional funding from its sponsors or affiliates to cover working capital deficiencies.

Looking ahead, Cayson Acquisition Corp aims to utilize the funds held in the trust account to finance its initial business combination and related operational costs. However, the management has expressed uncertainty regarding its ability to successfully complete a business combination within the designated timeframe, which could lead to a voluntary liquidation of the company. The financial statements do not include adjustments that might result from this uncertainty, highlighting the risks associated with the company's current operational status and future plans.