Israel Acquisitions Corp Reports Q2 2025 Net Loss of $238,126 Amid Financial Challenges

Israel Acquisitions Corp has reported its financial results for the second quarter of 2025, revealing a net loss of $238,126 for the three months ending June 30, compared to a net income of $738,891 during the same period in 2024. For the first half of 2025, the company recorded a net loss of $171,473, a significant decline from the $1,314,747 net income reported in the first half of 2024. The decrease in profitability is attributed to higher administrative and legal expenses, which totaled $186,881 and $344,059 for the respective periods, alongside reduced dividend income from marketable securities held in the Trust Account.

The company’s total assets as of June 30, 2025, amounted to $9,670,631, a sharp decline from $82,631,699 at the end of 2024. This decrease is primarily due to the redemption of Class A ordinary shares, which saw a reduction from 7,259,615 shares subject to possible redemption at the end of 2024 to 797,932 shares by mid-2025. The cash and marketable securities held in the Trust Account also fell from $82,604,083 to $9,570,875 during the same period. The company’s working capital deficit increased to $2,120,405, reflecting ongoing financial challenges.

In terms of strategic developments, Israel Acquisitions Corp is in the process of finalizing a business combination with Gadfin Ltd., a technology company specializing in hydrogen-powered drones for logistics and cargo delivery. The Business Combination Agreement was signed on January 26, 2025, and subsequently amended on July 2, 2025, to revise the company equity value to $180 million and remove certain liquidation requirements. This merger is expected to enhance the company’s operational capabilities and market position.

Operationally, Israel Acquisitions Corp has not yet commenced any business activities, as it remains focused on identifying a suitable target for its initial business combination. The company has maintained a consistent employee headcount of 4,791,667 Class B ordinary shares, with no significant changes reported. The company’s management has indicated that it may need to raise additional funds to meet operational expenditures and complete the business combination, which raises concerns about its ability to continue as a going concern.

Looking ahead, Israel Acquisitions Corp faces significant challenges, including compliance with Nasdaq listing requirements after receiving a deficiency notice regarding its market value. The company has until November 24, 2025, to regain compliance with the minimum market value of $50 million. Management is considering various actions to address this issue, but there is no assurance that the company will successfully meet the necessary criteria or complete its planned business combination.