Wed, Jul 2, 9:16 PM (17 days ago)
**Summary of Cal Redwood Acquisition Corp. (CRAQU) Q1 2025 Financial Health and Performance** **Overview:** Cal Redwood Acquisition Corp. (CRAQU), a Cayman Islands-based blank check company, reported its first quarter financial results for the period ended March 31, 2025. The company was incorporated on January 7, 2025, and has not yet commenced operations, focusing solely on its initial public offering (IPO) and subsequent business combination. **Financial Performance:** - **Revenue:** No revenue generated; the company is in the pre-operational phase. - **Profit Margins:** Reported a net loss of $42,822, primarily due to general and administrative costs. - **Cash Flow:** The company had $25,000 in cash as of March 31, 2025, with a working capital deficit of $204,206. - **Earnings Changes:** The net loss of $42,822 is attributed to the initial setup and IPO-related expenses. **Key Financial Metrics:** - **Total Assets:** $211,384, primarily consisting of cash and deferred offering costs. - **Liabilities:** $229,206, mainly accrued offering costs and a promissory note to a related party. - **Shareholder's Deficit:** $(17,822), indicating a negative net worth. **Quarterly Performance Discussion:** - The company's activities during the quarter were limited to formation, IPO preparation, and post-IPO activities. - The IPO, consummated on May 27, 2025, raised $230,000,000 from the sale of 23,000,000 units, including the full exercise of the underwriters' over-allotment option. - The company also sold 660,000 private placement units, generating an additional $6,600,000. **Trends and Uncertainties:** - The company's future operations depend on completing a business combination within the specified timeframe. - Geopolitical uncertainties, including the Russia-Ukraine conflict and the Israel-Hamas conflict, could impact the company's search for a target business and the global economy. **Future Operations Impact:** - The company has until May 27, 2027, to complete a business combination; otherwise, it will liquidate and redeem public shares. - The proceeds from the IPO and private placement are held in a trust account and will be used to consummate a business combination. **Conclusion:** Cal Redwood Acquisition Corp. is in the early stages of its operational life, with its financial health heavily dependent on the successful completion of a business combination. The company's current financial status reflects the typical pre-operational phase of a blank check company, with a focus on raising capital and identifying a target business.