Eureka Acquisition Corp Reports Net Income Turnaround and Financial Results for December 31, 2024

Eureka Acquisition Corp has reported its financial results for the quarter ending December 31, 2024, revealing a net income of $542,018, a significant turnaround from a net loss of $56,819 during the same period in 2023. The company attributed this positive performance primarily to interest income of $694,056 earned from investments held in its Trust Account, which was offset by general and administrative expenses totaling $152,038. The increase in interest income reflects the company's strategy of investing in U.S. government treasury bills, which has yielded returns since the completion of its initial public offering (IPO).

In terms of financial position, as of December 31, 2024, Eureka Acquisition Corp reported total assets of $59.4 million, up from $58.8 million at the end of the previous quarter. The increase was driven by a rise in investments held in the Trust Account, which grew to $58.8 million from $58.1 million. However, the company's total liabilities also increased, with current liabilities rising to $57,500 from $49,723, primarily due to higher accounts payable and accrued expenses.

Eureka Acquisition Corp, which is classified as a smaller reporting and emerging growth company, has not yet identified a target for its initial business combination. The company was formed to pursue a merger or acquisition, focusing initially on opportunities in Asia. As of the reporting date, the company had 7,645,500 ordinary shares outstanding, including 6,208,000 Class A shares and 1,437,500 Class B shares. The company has until July 3, 2025, to complete its initial business combination, with the possibility of extending this deadline.

Operationally, the company has incurred significant costs related to its IPO and ongoing search for acquisition targets. As of the end of the reporting period, it had cash reserves of $552,031, which it plans to utilize for working capital and acquisition-related expenses. The company has expressed uncertainty regarding its ability to raise additional capital or complete a business combination, which could impact its future operations. Management has indicated that if a business combination is not completed within the specified timeframe, the company will face mandatory liquidation.

Looking ahead, Eureka Acquisition Corp's management remains focused on identifying suitable acquisition targets while navigating the challenges posed by current market conditions. The company has acknowledged the potential impact of geopolitical events on its operations and acquisition strategy, emphasizing the need for careful evaluation of prospective targets. The financial statements reflect a cautious outlook, with management noting substantial doubt about the company's ability to continue as a going concern if it fails to complete a business combination within the required timeframe.