Hudson Acquisition I Corp. Reports Increased Net Loss and Liquidity Challenges for Q1 2025

Hudson Acquisition I Corp. reported a net loss of $282,614 for the three months ended March 31, 2025, compared to a net loss of $82,504 for the same period in 2024. The company's operating expenses increased to $309,058 from $282,344 year-over-year, primarily due to higher general and administrative costs. Interest income from marketable securities held in the Trust Account significantly decreased to $11,443 from $340,660, contributing to the overall decline in profitability. The company’s accumulated deficit rose to $7,219,871 as of March 31, 2025, up from $6,928,814 at the end of the previous fiscal year.

In terms of liquidity, Hudson Acquisition reported current assets of $15,008, a substantial decrease from $74,958 at the end of 2024. The company’s cash and cash equivalents fell to $10,008 from $68,758, while marketable securities held in the Trust Account decreased to $1,091,680 from $1,122,381. Current liabilities increased to $4,723,046 from $4,532,834, driven by higher accounts payable and accrued liabilities, which rose to $731,348 from $507,373. The company also reported a working capital deficit of $4,708,038.

Strategically, Hudson Acquisition is in the process of executing a Business Combination Agreement with Aiways Automobile Europe GmbH, a company focused on developing electric vehicles. This agreement, signed on November 22, 2024, is part of Hudson's strategy to identify and merge with a target business. The company has conducted extensive due diligence on Aiways, including meetings with management and facility inspections. However, as of March 31, 2025, Hudson had not yet commenced core operations and continues to focus on identifying suitable business combinations.

Operationally, the company has seen a significant reduction in its public shares, with only 98,263 shares remaining outstanding as of March 31, 2025, down from 2,417,331 shares at the end of 2024. This decline is attributed to shareholder redemptions as the company extended its deadline for completing a business combination multiple times. The company has also faced challenges related to compliance with Nasdaq listing requirements, which led to a notice of potential delisting due to failure to meet minimum market value and public share requirements.

Looking ahead, Hudson Acquisition's management has expressed uncertainty regarding its ability to complete a business combination by the extended deadline of October 18, 2025. The company is actively seeking additional capital to support its operations and may rely on loans from its sponsor or related parties. If a business combination is not consummated by the deadline, the company may face mandatory liquidation, raising substantial doubt about its ability to continue as a going concern.