Iron Horse Acquisitions Corp. Reports Net Loss of $63,940 for Quarter Ending June 30, 2025

Iron Horse Acquisitions Corp. reported its financial results for the quarter ending June 30, 2025, revealing a net loss of $63,940, a significant decrease compared to a net income of $481,927 for the same period in 2024. The company generated interest income of $753,788 from marketable securities held in its Trust Account, but this was offset by formation and operational costs of $671,528 and a provision for income taxes of $146,200. For the six months ended June 30, 2025, Iron Horse recorded a net income of $19,820, down from $955,342 in the prior year, primarily due to increased operational costs totaling $1,191,486.

The company’s total assets as of June 30, 2025, amounted to $73,321,319, a slight increase from $72,796,002 at the end of 2024. Current assets rose significantly to $155,014, compared to $43,517 at the end of the previous year, largely due to an increase in cash and prepaid expenses. However, total liabilities surged to $74,954,558, up from $5,110,189, driven by a substantial increase in accounts payable and accrued expenses, as well as a liability for common stock subject to redemption, which decreased from 6,900,000 shares to 422,025 shares.

Strategically, Iron Horse has made significant progress in its business combination efforts. On June 20, 2025, stockholders approved the Business Combination Agreement with Rosy Sea Holdings Limited, which will allow Iron Horse to acquire Zhong Guo Liang Tou Group Limited. The company has extended its deadline to complete this business combination to June 29, 2026, with the option for monthly extensions. As of June 30, 2025, the company had redeemed 6,477,975 shares of common stock, amounting to $68,652,349, in connection with the business combination and extension proposals.

Operationally, Iron Horse has not yet commenced any revenue-generating activities since its inception in November 2021. The company continues to focus on identifying and evaluating potential target businesses for acquisition. As of the end of the reporting period, Iron Horse had cash of $25,164 outside the Trust Account, which it plans to use for operational expenses and due diligence on prospective acquisitions. The company has expressed concerns regarding its liquidity, noting a working capital deficit of $3,628,695, which raises substantial doubt about its ability to continue as a going concern beyond August 29, 2025, unless it successfully completes a business combination.

Looking ahead, Iron Horse remains committed to finalizing its business combination and is actively seeking to extend its deadline as necessary. The company acknowledges the challenges posed by current market conditions and geopolitical tensions, which could impact its acquisition strategy. However, management is optimistic about the potential for completing a successful business combination and is focused on navigating the complexities of the current financial landscape.