Four Leaf Acquisition Corporation Reports Q1 2025 Financial Results with Net Loss of $59,229

Four Leaf Acquisition Corporation reported its financial results for the first quarter of 2025, revealing a net loss of $59,229 compared to a net income of $130,602 in the same period of the previous year. The company attributed the loss primarily to formation and operating costs of $314,815, which decreased from $452,417 in the prior year, and an income tax provision of $60,896. The decline in operating costs was largely due to reduced accounting and legal expenses. Additionally, the company earned $316,482 in dividend and interest income from its Trust Account, a significant decrease from $757,940 in the prior year, reflecting the impact of stock redemptions that occurred in June 2024.

As of March 31, 2025, Four Leaf Acquisition Corporation held total assets of $30.7 million, a slight increase from $30.2 million at the end of 2024. The company’s current liabilities rose to $4.2 million from $3.6 million, driven by increases in accounts payable and accrued expenses. The Class A common stock subject to possible redemption was valued at $30.5 million, reflecting accretion to redemption value due to interest income earned. The company reported a stockholders' deficit of $5.87 million, widening from $5.36 million at the end of the previous fiscal year.

Strategically, Four Leaf Acquisition Corporation is in the process of completing a merger with Xiaoyu Dida Interconnect International Limited, which was agreed upon in December 2024. The merger is expected to transform Four Leaf into a wholly-owned subsidiary of Xiaoyu Dida, with the transaction subject to customary closing conditions, including stockholder approvals. The company has until June 22, 2025, to complete this business combination, having extended its deadline multiple times through deposits made into its Trust Account.

Operationally, the company has not yet commenced any revenue-generating activities, as it remains focused on identifying a suitable target for its business combination. As of the latest report, Four Leaf had 2,722,903 shares of Class A common stock and 1,355,250 shares of Class B common stock outstanding. The company’s liquidity position is precarious, with only $1,264 in cash outside the Trust Account, raising concerns about its ability to sustain operations without completing the merger or securing additional financing.

Looking ahead, Four Leaf Acquisition Corporation faces significant challenges, including the need to raise additional capital to meet its operational needs and the potential for mandatory liquidation if it fails to complete the merger by the deadline. The company has indicated that it may seek further loans or investments from its sponsor or other parties to address its liquidity issues. The management has expressed uncertainty regarding the ability to secure such financing, which could impact the company's future operations and viability.