Iron Horse Acquisition II Corp. Reports $1.3 Million Net Income and IPO-Driven Asset Growth

Iron Horse Acquisition II Corp. has reported significant financial developments in its latest 10-Q filing for the period ending May 31, 2026. The company recorded a net income of $1.3 million for the three months ended May 31, 2026, a notable increase from a net loss of $23,187 during the same period in 2025. For the six months ending May 31, 2026, the net income reached $2.66 million, compared to a loss of $95,857 in the prior year. This turnaround is primarily attributed to interest income earned on cash and investments held in the Trust Account, which amounted to $2.07 million for the quarter and $3.71 million for the half-year.

The company’s total assets as of May 31, 2026, were reported at $234 million, a substantial increase from $364,681 at the end of November 2025. This growth is largely due to the funds raised during the Initial Public Offering (IPO), which generated gross proceeds of $230 million. The IPO was completed on December 18, 2025, and included the full exercise of the underwriters' over-allotment option. The company also sold 570,000 Private Placement Units, adding $5.7 million to its capital.

Operationally, Iron Horse Acquisition II Corp. has not yet commenced any business operations, as its activities have been focused on organizational tasks and preparing for its business combination. The company has incurred general, formation, and operational costs of approximately $773,493 for the three months ended May 31, 2026, compared to $23,187 in the same period last year. The increase in expenses reflects the costs associated with being a public company and the ongoing efforts to identify a target for a business combination.

Looking ahead, Iron Horse Acquisition II Corp. is actively pursuing a merger agreement with Electra Vehicles, Inc., which specializes in AI-powered battery intelligence for electric vehicles. The merger agreement was signed on April 21, 2026, and amended on May 14, 2026, to refine various terms. The company plans to utilize the funds held in the Trust Account to complete this business combination, which is expected to enhance its operational capabilities and market presence. However, the company has expressed concerns regarding its liquidity and the need to complete a business combination within the designated timeframe to avoid liquidation.

As of May 31, 2026, Iron Horse Acquisition II Corp. had cash of $46,833 and working capital of $295,740. The company has indicated that it may require additional financing to cover transaction costs associated with the business combination. Management has acknowledged the uncertainty surrounding its ability to raise capital or successfully complete the merger, which raises substantial doubt about the company's ability to continue as a going concern.