COLUMBUS ACQUISITION CORP FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025
COLUMBUS ACQUISITION CORP FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025
Columbus Acquisition Corp. (the “Company”) filed its quarterly report for the period ended March 31, 2025. The Company reported a net loss of $1.4 million for the three months ended March 31, 2025, compared to a net loss of $1.1 million for the same period in the prior year. As of March 31, 2025, the Company had cash and cash equivalents of $14.4 million, compared to $15.4 million as of December 31, 2024. The Company’s condensed balance sheet as of March 31, 2025, showed total assets of $15.4 million, total liabilities of $1.4 million, and total shareholders’ equity of $14.0 million. The Company’s management’s discussion and analysis of financial condition and results of operations highlights the Company’s focus on identifying and acquiring a target business, and notes that the Company has not yet generated any revenue.
Overview
Columbus Acquisition Corp. is a blank check company incorporated in the Cayman Islands in January 2024. The company’s purpose is to enter into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities.
Initial Public Offering
On January 24, 2025, the company completed its initial public offering (IPO) of 6,000,000 units at $10 per unit, raising gross proceeds of $60 million. Each unit consists of one ordinary share and one right to receive one-seventh of one ordinary share upon completion of the initial business combination. Concurrently, the company completed a private placement of 234,290 units to its sponsor, Hercules Capital Management VII Corp, at $10 per unit, raising an additional $2.3 million.
The proceeds from the IPO and private placement were placed in a trust account, which the company intends to use to acquire a target business. Since the IPO, the company’s sole activity has been identifying and evaluating potential acquisition targets, and it has not generated any revenue.
Financial Performance
For the three months ended March 31, 2025, the company reported net income of $149,799, consisting of $403,733 in interest income from the trust account, partially offset by $253,934 in general and administrative expenses.
For the period from January 18, 2024 to March 31, 2024, the company reported a net loss of $6,839, all of which was due to general and administrative expenses.
Liquidity and Capital Resources
As of March 31, 2025, the company had $894,161 in cash and a working capital of $871,816. The company intends to use the majority of the net proceeds from the IPO and private placement to acquire a target business, with any remaining funds used as working capital.
The company believes it has sufficient funds to execute its business strategy, but there is a possibility that a business combination may not be completed within the 12-month period from the issuance of these financial statements. If a business combination is not completed, the company will trigger an automatic winding up, dissolution and liquidation, which raises substantial doubt about the company’s ability to continue as a going concern.
Outlook
The company’s future success is dependent on its ability to identify and complete a successful business combination within the prescribed timeline. If the company is unable to do so, it will be required to liquidate. The company’s management is actively searching for a suitable target business, but there is no guarantee that a transaction will be consummated.