Iron Horse Acquisitions Corp. Reports Q1 2025 Financial Results with Decreased Net Income

Iron Horse Acquisitions Corp. reported its financial results for the first quarter of 2025, revealing a net income of $83,760, a decrease from the $473,415 recorded in the same period of 2024. The company’s revenue primarily stems from interest earned on marketable securities held in its Trust Account, which amounted to $752,929 for the quarter, down from $858,253 a year earlier. The formation and operational costs increased to $519,958 compared to $479,858 in the previous year, contributing to the overall decline in profitability.

The company’s total assets as of March 31, 2025, were $73,647,206, a slight increase from $72,796,002 at the end of 2024. This growth was primarily driven by an increase in marketable securities held in the Trust Account, which rose to $73,567,534 from $72,752,485. However, total liabilities also increased to $5,877,633 from $5,110,189, largely due to higher accounts payable and accrued expenses. The stockholders’ deficit widened to $4,850,839 from $4,143,761, reflecting the ongoing operational costs and accumulated deficit.

Strategically, Iron Horse Acquisitions Corp. is in the process of completing a business combination with Rosey Sea Holdings Limited, which is expected to result in the acquisition of Zhong Guo Liang Tou Group Limited. The business combination agreement, signed on September 29, 2024, outlines that the company will issue between 40,988,000 and 47,888,000 shares of common stock to the seller, depending on the number of shares redeemed by stockholders. The company has until June 29, 2025, to finalize this transaction, or it will face mandatory liquidation.

Operationally, the company has not yet commenced any business operations since its inception in November 2021. As of March 31, 2025, Iron Horse Acquisitions Corp. had 8,867,000 shares of common stock issued and outstanding, with 6,900,000 shares subject to possible redemption. The company continues to seek potential acquisition targets and has incurred significant costs related to its search and due diligence efforts. The management has expressed concerns regarding liquidity, as the company had only $88 in cash outside the Trust Account, indicating a need for additional funding to sustain operations until a business combination is completed.

Looking ahead, Iron Horse Acquisitions Corp. aims to complete its business combination before the June 29, 2025 deadline. However, the company acknowledges the uncertainty surrounding its ability to finalize the transaction and the potential implications of failing to do so, including liquidation. The management remains focused on identifying suitable acquisition opportunities while navigating the challenges posed by current market conditions and operational costs.