Chi Special Acquisition Corp. Reports $414,679 Net Loss for Fiscal Year Ending March 31, 2026

Goldenstone Acquisition Ltd., now known as Chi Special Acquisition Corp., has reported its financial performance for the fiscal year ending March 31, 2026, revealing a net loss of $414,679. This loss was primarily attributed to formation and operating costs totaling $856,463, alongside a franchise tax expense of $34,250 and an income tax provision of $77,097. The company did, however, offset some of these losses with $200,000 in income from business combination deposits forfeited by a former target company and $353,131 in interest income from its Trust Account. In comparison, the previous fiscal year ended with a net income of $109,366, driven by interest income of $1,330,551 and a franchise tax credit of $37,275, despite incurring higher operating costs.

Significant changes in the company's financial position were noted, particularly in its liquidity. As of March 31, 2026, the company reported only $5,618 in cash, a decrease from $14,692 the previous year, and a working capital deficit of $11,591,904, up from $4,217,347. This decline in liquidity is largely due to cash used in operating activities and substantial redemptions of common stock, which totaled approximately $13.9 million. The company has also been actively extending its deadline to complete an initial business combination, with the latest extension pushing the deadline to December 21, 2026.

Strategically, Chi Special Acquisition Corp. has faced challenges in finalizing a business combination. The company entered into a Business Combination Agreement with Infintium Fuel Cell Systems, Inc. on June 26, 2024, but this agreement was terminated by Infintium on October 1, 2025, due to failure to consummate the transaction by the specified deadline. The company has also previously terminated a merger agreement with Roxe Holding Inc. in September 2022. These developments highlight the ongoing difficulties in securing a suitable target for acquisition.

Operationally, the company has seen fluctuations in its stockholder base, with significant redemptions occurring during the extension votes. For instance, 758,539 shares were rendered for redemption in October 2023, and 3,395,590 shares were tendered for redemption in June 2024. As of March 31, 2026, only 20,156 shares of public common stock remained outstanding. The company’s management team, led by CEO Eddie Ni, continues to seek potential acquisition targets, leveraging their extensive experience in mergers and acquisitions.

Looking ahead, Chi Special Acquisition Corp. remains focused on completing a business combination that will create long-term value for its stockholders. However, the company acknowledges the uncertainty surrounding its ability to do so within the extended timeframe. The management has indicated that if a business combination is not completed by the new deadline, the company will proceed with liquidation, which would extinguish the rights of public stockholders. The ongoing regulatory environment, particularly concerning potential scrutiny from Chinese authorities due to the ties of its management, adds another layer of complexity to its future operations and strategic decisions.