Graf Global Corp. Reports $2.17 Million Net Income in Q1 2025, Significant Turnaround from Previous Year

Graf Global Corp. reported a net income of $2.17 million for the first quarter of 2025, a significant turnaround from a net loss of $46,200 in the same period of the previous year. This positive performance was primarily driven by interest income of $2.44 million earned on cash held in the Trust Account, which was not present in the prior year. General and administrative expenses increased to $273,149 from $46,200, reflecting the company's ongoing operational costs as it prepares for a potential business combination.

The company's total assets as of March 31, 2025, stood at $238.85 million, up from $236.59 million at the end of 2024. The increase was largely attributed to cash held in the Trust Account, which rose to $238.21 million from $235.76 million. However, current liabilities also increased to $259,277 from $169,690, primarily due to higher accrued expenses. The shareholders' deficit widened to $9.42 million from $9.14 million, reflecting the company's accumulated deficit, which now totals $9.42 million.

Graf Global Corp. has not yet commenced operations but is actively seeking a target for a business combination. The company completed its Initial Public Offering (IPO) on June 27, 2024, raising $230 million from the sale of 23 million units, which included the full exercise of an over-allotment option. Additionally, the company sold 6 million Private Placement Warrants for $6 million. The funds from the IPO are intended to be used for a business combination, with management indicating that they have until June 27, 2026, to complete this transaction.

As of the end of the first quarter, Graf Global Corp. had a cash balance of $360,166 outside of the Trust Account, which will be utilized for operational expenses and due diligence on potential acquisition targets. The company has indicated that it may need to raise additional capital to meet its working capital needs, and there is uncertainty regarding its ability to secure such financing. If a business combination is not completed by the end of the designated period, the company will face mandatory liquidation.

Looking ahead, Graf Global Corp. remains focused on identifying a suitable business combination. However, management has expressed concerns regarding liquidity and the potential need for additional financing, which could impact the company's ability to continue operations. The company has not made any adjustments to its asset or liability valuations in anticipation of a potential liquidation, underscoring the urgency of completing a business combination within the specified timeframe.