Libity Reports $522,567 Net Loss and Seeks Business Combination with Blue Finance Technology

Libity, formerly known as Investcorp AI Acquisition Corp., reported a net loss of $522,567 for the three months ending March 31, 2026, compared to a net loss of $98,559 for the same period in 2025. The company's operating expenses decreased significantly from $282,139 in 2025 to $4,351 in 2026. However, the loss was primarily driven by a change in the fair value of warrant liabilities, which amounted to $(522,449) in the current period. Interest income from investments held in the Trust Account also fell sharply, from $183,580 in 2025 to $4,233 in 2026, reflecting a reduced Trust Account balance following significant shareholder redemptions.

As of March 31, 2026, Libity's total assets were $486,896, a slight increase from $482,662 at the end of 2025. The company held $486,895 in its Trust Account, primarily invested in U.S. Treasury securities. Total liabilities rose to $1,573,776, up from $1,046,975 at the end of the previous fiscal year, largely due to an increase in warrant liabilities, which grew from $870,751 to $1,393,200. The company's shareholders' deficit also widened to $(1,417,818) from $(891,018) as of December 31, 2025.

Strategically, Libity has undergone significant changes, including a name change and a shift in sponsorship. On August 28, 2025, Samara Special Opportunities acquired control of the company, leading to the forgiveness of approximately $5 million in liabilities. The company is currently pursuing a Business Combination Agreement with Blue Finance Technology Holding Limited, which was signed on April 8, 2026. This agreement outlines a merger that would see Libity become a wholly owned subsidiary of a new public entity, New Pubco, with a closing date targeted for November 4, 2026.

Operationally, Libity's cash position remains precarious, with only $1 in cash and a working capital deficit of $180,575 as of March 31, 2026. The company is reliant on a Working Capital Loan from its current sponsor, with $8,044 outstanding. The company has until May 12, 2028, to complete its Business Combination, but management has expressed substantial doubt about its ability to continue as a going concern without additional funding or successful completion of the merger.

Looking ahead, Libity's management is focused on finalizing the Business Combination and securing additional financial support as needed. However, the company faces significant risks, including reliance on its sponsor for funding and the potential for market volatility to impact the success of the merger. The outcome of these efforts remains uncertain, and the company has indicated that its financial statements do not include adjustments that might result from these uncertainties.