Kairous Acquisition Corp. Reports $195K Net Loss, Plans Merger with Bamboo Mart Limited

Kairous Acquisition Corp. Limited reported its financial results for the quarter ending December 31, 2024, revealing a net loss of $195,458, compared to a net income of $81,134 in the same period of the previous year. The company did not generate any revenue during the quarter, consistent with its status as a blank check company focused on completing a business combination. Total expenses for the quarter amounted to $372,256, which included $357,256 in general and administrative costs. For the six months ending December 31, 2024, the net loss was $212,349, reflecting a slight increase in operational costs compared to the prior year.

The company’s financial position showed a significant decline in total assets, which decreased from $16.2 million as of June 30, 2024, to $10.3 million by December 31, 2024. This decline was primarily due to a reduction in cash held in the Trust Account, which fell from $16.2 million to $10.3 million, as well as an increase in current liabilities, which rose to $4.04 million from $3.21 million. The accumulated deficit also widened to $6.77 million, up from $5.87 million at the end of the previous fiscal period.

Strategically, Kairous Acquisition Corp. is in the process of finalizing a merger with Bamboo Mart Limited, with the closing of the proposed business combination expected no later than June 16, 2025. The merger consideration has been set at $188 million, with additional earnout provisions based on performance metrics. The company has also extended its timeline for completing the business combination multiple times, with the latest extension allowing for additional one-month periods until June 2025.

Operationally, Kairous Acquisition Corp. has not yet commenced any business operations and continues to focus on identifying potential acquisition targets. As of December 31, 2024, the company had a working capital deficit of $4.04 million and only $125 in cash outside of the Trust Account, raising concerns about its liquidity and ability to meet future obligations. The management has expressed substantial doubt regarding the company's ability to continue as a going concern if the business combination is not completed by the extended deadline.

Looking ahead, Kairous Acquisition Corp. plans to utilize the funds held in the Trust Account to complete the business combination and expects to incur further costs associated with this process. The company has indicated that it will not generate any operating revenues until after the completion of the merger, and it anticipates continued negative cash flows from operations as it pursues its acquisition strategy.