Investcorp AI Acquisition Corp. Reports Significant Financial Decline and Extends Business Combination Deadline

Investcorp AI Acquisition Corp. reported a significant decline in its financial performance for the six months ending June 30, 2025, compared to the same period in 2024. The company recorded a net loss of $610,317, a stark contrast to the net income of $2,015,776 reported in the previous year. This downturn was primarily attributed to increased operating costs, which rose to $595,270 from $513,267, and a notable decrease in interest income from investments held in the Trust Account, which fell to $275,203 from $2,819,294. The company's basic and diluted net loss per share for the six months was $(0.08), compared to a profit of $0.12 in the prior year.

The company's total assets decreased significantly to $1,549,213 as of June 30, 2025, down from $18,551,591 at the end of 2024. This decline was largely due to a substantial reduction in investments held in the Trust Account, which dropped to $473,146 from $17,518,993. The company's liabilities also increased, totaling $6,835,463, compared to $5,706,474 at the end of the previous fiscal year. The working capital deficit stood at $4,888,645, indicating ongoing liquidity challenges.

Strategically, Investcorp AI Acquisition Corp. has been focused on extending its timeline for completing a business combination. In May 2025, shareholders approved an extension of the deadline to May 12, 2027, allowing the company additional time to identify and finalize a merger or acquisition. This decision followed a series of shareholder redemptions, where holders of 1,449,359 Class A ordinary shares redeemed their shares for approximately $17,521,050. The company has also entered into a Working Capital Loan agreement with its Sponsor, which has provided $2,836,172 as of June 30, 2025, to support operational costs and facilitate the business combination process.

Operationally, the company has not yet commenced any business operations since its inception in February 2021, and it continues to focus on identifying potential acquisition targets, particularly within the Indian market. As of June 30, 2025, the company had 6,494,771 Class A ordinary shares and one Class B ordinary share outstanding. The company’s management has expressed concerns regarding its ability to continue as a going concern, given the significant costs associated with pursuing its acquisition plans and the uncertainty surrounding its future capital-raising efforts.

Looking ahead, Investcorp AI Acquisition Corp. aims to utilize the funds held in the Trust Account primarily for its business combination. However, the company acknowledges the challenges it faces in securing a suitable target and completing the transaction within the extended timeline. The management's outlook remains cautious, emphasizing the need for effective capital management and strategic decision-making to navigate the current market conditions and achieve its business objectives.