Chain Bridge I Reports Reduced Net Loss and Strategic Developments Amid Business Combination Efforts

Chain Bridge I reported a net loss of approximately $363,640 for the three months ended March 31, 2025, a significant decrease from a net loss of $1.2 million during the same period in 2024. The company's general and administrative expenses were reduced to $221,850 from $540,056 year-over-year. This improvement in financial performance was attributed to a decrease in operational costs and a gain from the change in fair value of derivative liabilities, which amounted to approximately $187,000, compared to a loss of $1 million in the prior year.

As of March 31, 2025, Chain Bridge I held total assets of $5.39 million, slightly down from $5.44 million at the end of 2024. The company reported current liabilities of $1.18 million, up from $1.04 million in the previous quarter, primarily due to increases in accounts payable and accrued expenses. The company’s cash position also declined, with cash on hand at $17,565 compared to $129,598 at the end of the previous quarter, reflecting ongoing operational expenditures.

In terms of strategic developments, Chain Bridge I has been actively pursuing a business combination, with a deadline set for November 15, 2025. The company has entered into a Business Combination Agreement with Phytanix Bio, which was approved by both parties' boards. However, the agreement was mutually terminated on April 7, 2025, indicating a shift in strategy as the company continues to seek alternative merger opportunities. The company has also extended its operational timeline through contributions to its Trust Account, ensuring liquidity as it navigates the business combination process.

Operationally, Chain Bridge I has seen fluctuations in its shareholder base, with 455,736 Class A ordinary shares subject to possible redemption as of March 31, 2025. The company has also experienced changes in its management structure, with Andrew Kucharchuk appointed as Chief Financial Officer following the resignation of the previous CFO. The company’s employee headcount remains stable, with no significant changes reported.

Looking ahead, Chain Bridge I faces challenges related to its liquidity and the need to complete a business combination by the deadline. The company has acknowledged substantial doubt about its ability to continue as a going concern if it fails to consummate a merger by the deadline. Management is actively working to address these challenges while exploring potential business combinations that align with its strategic goals.