Israel Acquisitions Corp Reports Q1 2025 Financial Results with Significant Net Income Decline

Israel Acquisitions Corp has reported its financial results for the first quarter of 2025, revealing a net income of $66,653, a significant decrease from the $575,856 reported in the same period of 2024. The company attributed this decline primarily to a drop in dividend income from marketable securities held in its Trust Account, which fell from $1,201,832 in Q1 2024 to $234,788 in Q1 2025. The company also recorded a gain on extinguishment of liability amounting to $113,136, which contributed to the current quarter's income. Overall, the company’s operational expenses included $157,178 in legal and accounting fees and $48,243 in listing fees.

In terms of balance sheet changes, Israel Acquisitions Corp reported total assets of $9,485,818 as of March 31, 2025, a substantial decrease from $82,631,699 at the end of 2024. This decline was largely 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 the end of Q1 2025. The company’s accumulated deficit also increased to $7,106,909, compared to $6,854,992 at the end of the previous fiscal year.

Strategically, the company has made significant moves towards its goal of completing a business combination. On January 26, 2025, Israel Acquisitions Corp entered into a Business Combination Agreement with Gadfin Ltd., a technology company focused on hydrogen-powered drone logistics. This agreement is expected to facilitate the merger of Gadfin with a newly formed entity, NewPubco, which will also include the merger of Israel Acquisitions Corp. The company has extended its deadline for completing this business combination to January 18, 2026, allowing for up to twelve one-month extensions.

Operationally, Israel Acquisitions Corp has not yet commenced any revenue-generating activities, as it remains focused on identifying a suitable target for its business combination. As of March 31, 2025, the company had $27,193 in cash and cash equivalents outside of its Trust Account, which is intended for operational expenses related to the search for a target business. The company has indicated that it may need to raise additional funds to meet its operational needs and complete its business combination, raising concerns about its ability to continue as a going concern within the next year.

Looking ahead, Israel Acquisitions Corp's management remains optimistic about finalizing a business combination with Gadfin, which is expected to enhance its market position in the logistics and delivery sector. However, the company acknowledges the risks associated with market conditions and the ongoing geopolitical tensions that could impact its operations and financial performance. The management's focus will be on navigating these challenges while pursuing its strategic objectives.