ALCYW Swings to Loss Amid Rising Costs, Declining Trust Account Gains

Ticker: ALCYW · Form: 10-Q · Filed: Aug 27, 2025 · CIK: 1901336

Alchemy Investments Acquisition CORP 1 10-Q Filing Summary
FieldDetail
CompanyAlchemy Investments Acquisition CORP 1 (ALCYW)
Form Type10-Q
Filed DateAug 27, 2025
Risk Levelhigh
Pages16
Reading Time19 min
Key Dollar Amounts$0.0001, $11.50
Sentimentbearish

Sentiment: bearish

Topics: SPAC, 10-Q Analysis, Net Loss, Trust Account, Accumulated Deficit, Operating Costs, Related Party Debt

Related Tickers: ALCYW, ALCYU, ALCY

TL;DR

**ALCYW is burning cash and failing to generate income, making its SPAC mission look increasingly grim.**

AI Summary

Alchemy Investments Acquisition Corp 1 (ALCYW) reported a net loss of $220,257 for the three months ended June 30, 2025, a significant decline from the net income of $1,313,741 in the same period of 2024. For the six months ended June 30, 2025, the company posted a net loss of $521,753, compared to a net income of $2,727,570 in the prior year. Operating and formation costs increased to $722,490 for the six months ended June 30, 2025, up from $443,016 in 2024. The gain on investments held in the Trust Account decreased substantially to $250,442 for the six months ended June 30, 2025, from $3,165,435 in 2024. Total liabilities rose to $7,931,442 as of June 30, 2025, from $7,004,857 at December 31, 2024, driven by increases in accounts payable, accrued expenses, and a promissory note from a related party which increased by $600,000 to $1,130,000. The company's accumulated deficit widened to $7,580,780 by June 30, 2025, from $6,568,584 at December 31, 2024. Cash and cash equivalents decreased to $161,205 from $181,174 over the same period, reflecting net cash used in operating activities of $619,969 for the six months ended June 30, 2025.

Why It Matters

This 10-Q filing reveals a concerning financial deterioration for Alchemy Investments Acquisition Corp 1, a SPAC. The shift from net income to significant net losses, coupled with a sharp decline in trust account gains, indicates a challenging environment for the company to complete a business combination. For investors, this signals increased risk and potential dilution if the SPAC needs to raise additional capital or extend its timeline. Employees and potential target companies might view this as a less stable partner, impacting competitive positioning in the crowded SPAC market. The broader market may see this as another example of SPACs struggling to find suitable targets and manage operational costs effectively.

Risk Assessment

Risk Level: high — The company reported a net loss of $521,753 for the six months ended June 30, 2025, a stark contrast to the $2,727,570 net income in the prior year. This, combined with a significant increase in the accumulated deficit to $7,580,780 and a substantial decrease in gain on investments held in the Trust Account from $3,165,435 to $250,442, indicates a high risk of not completing a business combination or facing further financial strain.

Analyst Insight

Investors should exercise extreme caution and consider divesting ALCYW warrants or shares. The deteriorating financial performance and widening accumulated deficit suggest a high probability of further value erosion or even liquidation if a business combination is not secured soon under favorable terms.

Financial Highlights

debt To Equity
N/A
revenue
$0
operating Margin
N/A
total Assets
$12,503,259
total Debt
$7,931,442
net Income
-$220,257
eps
N/A
gross Margin
N/A
cash Position
$161,205
revenue Growth
N/A

Key Numbers

Key Players & Entities

FAQ

What were Alchemy Investments Acquisition Corp 1's net income or loss for the three and six months ended June 30, 2025?

Alchemy Investments Acquisition Corp 1 reported a net loss of $220,257 for the three months ended June 30, 2025, compared to a net income of $1,313,741 for the same period in 2024. For the six months ended June 30, 2025, the company had a net loss of $521,753, a significant decrease from the net income of $2,727,570 in the prior year.

How did the gain on investments held in the Trust Account change for ALCYW?

The gain on investments held in the Trust Account for Alchemy Investments Acquisition Corp 1 decreased substantially. For the three months ended June 30, 2025, it was $126,034, down from $1,591,454 in 2024. For the six months ended June 30, 2025, the gain was $250,442, a sharp decline from $3,165,435 in the same period of 2024.

What is Alchemy Investments Acquisition Corp 1's current accumulated deficit?

As of June 30, 2025, Alchemy Investments Acquisition Corp 1's accumulated deficit widened to $7,580,780. This represents an increase from $6,568,584 reported at December 31, 2024, indicating a growing negative equity position.

What is the status of ALCYW's promissory note from a related party?

The promissory note from a related party for Alchemy Investments Acquisition Corp 1 increased to $1,130,000 as of June 30, 2025, from $530,000 at December 31, 2024. This indicates an additional $600,000 in proceeds from the related party during the six-month period.

How much cash and cash equivalents does Alchemy Investments Acquisition Corp 1 hold outside the Trust Account?

As of June 30, 2025, Alchemy Investments Acquisition Corp 1 held $161,205 in cash and cash equivalents outside of the Trust Account. This amount is available for working capital purposes, down from $181,174 at December 31, 2024.

What were the operating and formation costs for Alchemy Investments Acquisition Corp 1?

Operating and formation costs for Alchemy Investments Acquisition Corp 1 were $321,051 for the three months ended June 30, 2025, and $722,490 for the six months ended June 30, 2025. These costs increased from $279,191 and $443,016, respectively, in the corresponding periods of 2024.

What is the primary business purpose of Alchemy Investments Acquisition Corp 1?

Alchemy Investments Acquisition Corp 1 is a blank check company formed to enter into a merger, capital share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses. It has not commenced any operations as of June 30, 2025, beyond its formation and initial public offering.

What happened with the Class A ordinary shares redemption in November 2024 for ALCYW?

On November 7, 2024, 10,438,037 Class A ordinary shares of Alchemy Investments Acquisition Corp 1 were redeemed. This resulted in $114,357,720 (or $10.95 per share) being removed from the company's trust account to pay the redeeming holders.

What are the total liabilities for Alchemy Investments Acquisition Corp 1 as of June 30, 2025?

As of June 30, 2025, Alchemy Investments Acquisition Corp 1's total liabilities amounted to $7,931,442. This includes current liabilities of $2,756,442 and a deferred underwriting fee payable of $5,175,000.

What is the significance of the 'going concern' disclosure for Alchemy Investments Acquisition Corp 1?

The 'going concern' disclosure highlights that Alchemy Investments Acquisition Corp 1 is an early stage and emerging growth company, subject to all risks associated with such entities. The company has not commenced operations and will not generate operating revenues until after a business combination, relying on investment income from its Trust Account for non-operating income.

Risk Factors

Industry Context

Alchemy Investments Acquisition Corp 1 operates as a special purpose acquisition company (SPAC). The SPAC market is characterized by its reliance on initial public offerings to raise capital for future acquisitions. The success of a SPAC is heavily dependent on its ability to identify and complete a suitable business combination within a specified timeframe, facing intense competition from other SPACs and traditional companies seeking capital.

Regulatory Implications

As a SPAC, Alchemy Investments Acquisition Corp 1 is subject to SEC regulations governing financial reporting, disclosures, and the process of business combinations. Changes in accounting standards or regulatory scrutiny of SPACs could impact the company's operations and reporting requirements. Compliance with rules regarding redemptions and shareholder rights is critical.

What Investors Should Do

  1. Monitor the company's ability to secure a business combination target, as failure to do so by the deadline could result in liquidation and return of capital to shareholders.
  2. Analyze the trend of increasing operating costs and decreasing investment gains, as these directly impact the company's financial health and ability to fund a business combination.
  3. Evaluate the impact of the growing accumulated deficit and cash burn rate on the company's runway and future operational viability.
  4. Assess the terms and implications of the related party promissory note, particularly its increase and potential impact on future cash flows.
  5. Consider the dilutionary effects of any future capital raises or business combinations on existing shareholders.

Key Dates

Glossary

Accumulated deficit
The cumulative net losses of a company that have not been offset by net income. (Indicates the company's historical unprofitability, which has widened to $7,580,780 as of June 30, 2025.)
Investments held in Trust Account
Securities and cash held by a trustee to secure the redemption of public shares in a special purpose acquisition company (SPAC). (The gains from these investments are a significant factor in the company's financial results, showing a substantial decrease in H1 2025.)
Class A ordinary shares subject to possible redemption
Shares issued by a SPAC that holders can redeem for cash at a specified price, typically before a business combination. (Represents a significant liability for the company, totaling $12,152,249 as of June 30, 2025.)
Promissory note - related party
A written promise to pay a specific sum of money to a related entity or individual, often with interest. (This liability has increased by $600,000 to $1,130,000, contributing to the overall rise in liabilities.)
Net cash used in operating activities
The net amount of cash used by a company's normal business operations over a period. (Shows a significant increase in cash burn for H1 2025 ($619,969), indicating operational inefficiencies or increased expenses.)

Year-Over-Year Comparison

Compared to the prior year, Alchemy Investments Acquisition Corp 1 has experienced a significant financial downturn. For the six months ended June 30, 2025, the company shifted from a net income of $2,727,570 to a net loss of $521,753. This is largely due to a substantial decrease in gains from investments held in the Trust Account, which fell from $3,165,435 to $250,442. Operating and formation costs have also risen, and total liabilities have increased, while cash reserves have dwindled, indicating a worsening financial position.

Filing Stats: 4,696 words · 19 min read · ~16 pages · Grade level 19.1 · Accepted 2025-08-27 17:01:11

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Condensed Financial Statements Condensed Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024 1 Condensed Statements of Operations for the three and six months ended June 30, 2025 and 2024 (Unaudited) 2 Condensed Statements of Changes in Shareholders' Deficit for the three and six months ended June 30, 2025 and 2024 (Unaudited) 3 Condensed Statements of Cash Flows for the six months ended June 30, 2025 and 2024 (Unaudited) 4 Notes to Unaudited Condensed Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22

- OTHER INFORMATION

PART II - OTHER INFORMATION 23 Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1A.

Risk Factors

Risk Factors 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23 Item 3. Defaults Upon Senior Securities 24 Item 4. Mine Safety Disclosures 24 Item 5. Other Information 24 Item 6. Exhibits 25

SIGNATURES

SIGNATURES 26 Table of Contents

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements ALCHEMY INVESTMENTS ACQUISITION CORP 1 CONDENSED BALANCE SHEETS June 30, 2025 December 31, 2024 (Unaudited) Assets: Current assets: Cash and cash equivalents $ 161,205 $ 181,174 Prepaid expenses - current 89,804 65,446 Total current assets 251,009 246,620 Investments held in Trust Account (2) 12,252,250 11,851,808 Total Assets $ 12,503,259 $ 12,098,428 Liabilities, Redeemable Class A Ordinary Shares and Shareholders' Deficit: Current liabilities: Accounts payable $ 763,335 $ 722,599 Accrued expenses 755,550 352,061 Accrued expenses - related party 23,085 197,225 Accrued interest expenses - related party 84,472 27,972 Promissory note - related party 1,130,000 530,000 Total current liabilities 2,756,442 1,829,857 Deferred underwriting fee payable 5,175,000 5,175,000 Total Liabilities 7,931,442 7,004,857 Commitments and Contingencies (Note 6) Class A ordinary shares subject to possible redemption, $ 0.0001 par value, 1,061,963 at redemption value of $ 11.44 , and $ 10.98 as of June 30, 2025, and December 31, 2024, respectively (2) 12,152,249 11,661,807 Shareholders' Deficit: Preference shares, $ 0.0001 par value; 1,000,000 shares authorized; no shares issued and outstanding — — Class A ordinary shares, $ 0.0001 par value; 479,000,000 shares authorized; 3,470,499 shares issued and outstanding (excluding 1,061,963 shares subject to possible redemption as of June 30, 2025 and December 31, 2024) as of June 30, 2025 and December 31, 2024 (1) (2) 348 348 Class B ordinary shares, $ 0.0001 par value; 20,000,000 shares authorized; 1 share issued and outstanding as of June 30, 2025 and December 31, 2024 (1) — — Additional paid-in capital — — Accumulated deficit ( 7,580,780 ) ( 6,568,584 ) Total Shareholders' Deficit ( 7,580,432 ) ( 6,568,236 ) Total Liabilities, Redeemable Class A Ordinary Share

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