Spark I Acquisition Corporation Reports Q1 2025 Financial Results with Decreased Net Income

Spark I Acquisition Corporation reported its financial results for the first quarter of 2025, revealing a net income of $542,329, a decrease from $770,378 in the same period of the previous year. The company’s total expenses for the quarter amounted to $577,365, which included $307,715 in operating expenses and $269,650 in administration fees related to a party. Interest income from investments held in the Trust Account contributed significantly to the income, totaling $1,119,693, although this was lower than the $1,326,309 reported in the first quarter of 2024.

The company’s balance sheet as of March 31, 2025, showed total assets of $108,649,720, an increase from $107,405,986 at the end of 2024. Current assets rose to $603,855, up from $479,814, primarily due to an increase in cash reserves, which reached $487,194 compared to $375,403 at the end of the previous year. However, total liabilities also increased to $5,550,123 from $4,848,718, driven by higher accrued expenses and the establishment of a convertible note payable to the Sponsor amounting to $1,440,000.

In terms of strategic developments, Spark I Acquisition Corporation has been actively pursuing potential business combinations. The company has engaged in discussions with various targets, including Kneron Holding Corporation, a provider of edge AI solutions, and a company in the hospitality software sector. Although non-binding letters of intent (LOIs) for these combinations have expired, the company is now negotiating terms for a binding agreement with Kneron. The company has not yet commenced operations and does not expect to generate revenue until a business combination is completed.

Operationally, Spark I Acquisition Corporation has maintained a consistent number of shares outstanding, with 10,000,000 Class A ordinary shares subject to possible redemption and 6,422,078 Class B ordinary shares issued. The company’s working capital deficit stood at $1,446,268 as of March 31, 2025. The company has also issued a promissory note to the Sponsor for up to $1,900,000 to cover working capital needs, with $600,000 already drawn down.

Looking ahead, the company faces a deadline of July 11, 2025, to complete a business combination. Management has expressed concerns regarding its ability to secure necessary approvals and raise additional capital to fund operations and complete a business combination by this date. The company has no approved plan to extend this deadline, raising substantial doubt about its ability to continue as a going concern.