ALCHEMY INVESTMENTS ACQUISITION CORP 1 - FORM 10-Q
Alchemy Investments Acquisition Corp 1, a Cayman Islands 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 2024. As of March 31, 2025, the company had cash and cash equivalents of $14.4 million and total assets of $15.4 million. The company’s condensed balance sheet as of March 31, 2025, and December 31, 2024, is included in the report. The company’s management’s discussion and analysis of financial condition and results of operations is also included, providing an overview of the company’s financial performance and position.
Overview
The report provides an overview of a blank check company, also known as a special purpose acquisition company (SPAC), that was incorporated in the Cayman Islands on October 27, 2021. The company was formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. As of the reporting period, the company has not selected a business combination target.
Results of Operations
The company has not engaged in any operations or generated any revenues to date. Its activities have been limited to financing, organizational, and preparatory work for its initial public offering (IPO), as well as the search for a potential business combination target. The company incurs expenses related to being a public company, such as legal, financial reporting, accounting, and auditing compliance costs, as well as due diligence expenses for potential business combinations.
For the three months ended March 31, 2025, the company had a net loss of $301,497, which resulted from operating costs of $401,439, offset by a gain on investments held in the trust account of $124,408, dividend income of $3,784, and related party interest expense of $28,250.
For the three months ended March 31, 2024, the company had net income of $1,413,829, which resulted from operating costs of $163,825, offset by a gain on investments held in the trust account of $1,573,981 and dividend income of $3,673.
Liquidity, Capital Resources, and Going Concern
The company’s cash flows and liquidity position are as follows:
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Net cash used in operating activities | $429,175 | $180,531 |
| Net cash provided by financing activities | $600,000 | $0 |
| Cash and cash equivalents held outside of trust account | $351,999 | N/A |
| Working capital deficit | $2,069,142 | N/A |
The company has incurred and expects to continue to incur significant costs in pursuit of its financing and acquisition plans. As of March 31, 2025, the company’s cash held outside of the trust account was not sufficient to allow it to operate for at least one year from the date the financial statements were issued, and therefore, substantial doubt about the company’s ability to continue as a going concern exists.
To address this uncertainty, the company held an annual meeting on October 31, 2024, where shareholders approved amending the company’s articles of association to extend the deadline for completing a business combination from November 9, 2024 to September 9, 2025. The company has been making monthly deposits into the trust account to fund this extension.
Contractual Obligations
The company has $5,175,000 in deferred underwriting fees and an aggregate of up to $1,130,000 in promissory notes due upon the completion of a business combination.
Critical Accounting Policies and Estimates
The company has not identified any critical accounting estimates. The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and expenses.
Recent Accounting Standards
The company has reviewed recent accounting standards updates and does not believe their adoption will have a material impact on its financial statements and disclosures.
JOBS Act
As an “emerging growth company” under the JOBS Act, the company is allowed to comply with new or revised accounting pronouncements based on the effective date for private companies. This may result in the company’s financial statements not being comparable to those of companies that comply with such pronouncements as of public company effective dates.
