Alchemy Investments Swings to Loss Amid Trust Account Drain

Ticker: ALCYW · Form: 10-Q · Filed: Nov 18, 2025 · CIK: 1901336

Alchemy Investments Acquisition CORP 1 10-Q Filing Summary
FieldDetail
CompanyAlchemy Investments Acquisition CORP 1 (ALCYW)
Form Type10-Q
Filed DateNov 18, 2025
Risk Levelhigh
Pages16
Reading Time19 min
Key Dollar Amounts$0.0001, $11.50
Sentimentbearish

Sentiment: bearish

Topics: SPAC, 10-Q, Net Loss, Trust Account, Share Redemptions, Financial Performance, Blank Check Company

Related Tickers: ALCYW, ALCYU, ALCY

TL;DR

**ALCYW is bleeding cash and shrinking its trust, making a successful SPAC merger look increasingly unlikely.**

AI Summary

Alchemy Investments Acquisition Corp 1 (ALCYW) reported a net loss of $341,897 for the three months ended September 30, 2025, a significant decline from the net income of $1,456,069 in the same period of 2024. For the nine months ended September 30, 2025, the company posted a net loss of $863,650, a stark contrast to the $4,183,639 net income in the prior year. This shift is primarily due to a substantial decrease in gain on investments held in the Trust Account, which fell from $1,609,935 in Q3 2024 to $119,784 in Q3 2025, and from $4,775,370 to $370,226 for the nine-month periods. Operating and formation costs increased to $428,114 for Q3 2025 from $158,154 in Q3 2024, and to $1,150,604 for the nine months ended September 30, 2025, up from $601,170 in the prior year. The company also saw significant redemptions of Class A ordinary shares, with 324,420 shares redeemed on September 11, 2025, resulting in $3,791,334 being removed from the Trust Account. Total assets decreased from $12,098,428 as of December 31, 2024, to $9,024,646 as of September 30, 2025, largely due to a reduction in investments held in the Trust Account from $11,851,808 to $8,662,826.

Why It Matters

This 10-Q filing reveals a concerning trend for Alchemy Investments Acquisition Corp 1, a SPAC, as it continues to burn through its Trust Account and incur significant losses. The substantial redemptions of Class A ordinary shares, totaling $3,791,334 in Q3 2025 alone, indicate waning investor confidence and reduce the capital available for a potential business combination. For investors, this signals increased risk and a potentially lower valuation for any future target. Employees and customers of a prospective target company might view this financial instability as a red flag, potentially impacting future deal negotiations and the broader market's perception of SPAC viability in a challenging environment.

Risk Assessment

Risk Level: high — The company reported a net loss of $863,650 for the nine months ended September 30, 2025, a significant deterioration from a $4,183,639 net income in the prior year. Investments held in the Trust Account, crucial for a SPAC's business combination, decreased by 26.8% from $11,851,808 at December 31, 2024, to $8,662,826 at September 30, 2025, primarily due to redemptions totaling $3,791,334.

Analyst Insight

Investors should consider divesting from ALCYW given the significant trust account redemptions and mounting losses, which severely diminish the likelihood of a successful and value-accretive business combination. The declining asset base and increasing operating costs suggest a challenging path forward for this SPAC.

Financial Highlights

debt To Equity
N/A
revenue
$0
operating Margin
N/A
total Assets
$9,024,646
total Debt
$8,586,062
net Income
-$341,897
eps
N/A
gross Margin
N/A
cash Position
$319,258
revenue Growth
N/A

Key Numbers

Key Players & Entities

FAQ

What were Alchemy Investments Acquisition Corp 1's net income and revenue for Q3 2025?

Alchemy Investments Acquisition Corp 1 reported a net loss of $341,897 for the three months ended September 30, 2025. As a blank check company, it does not generate operating revenue, but rather non-operating income from investments in its Trust Account.

How did the Trust Account balance of Alchemy Investments Acquisition Corp 1 change in 2025?

The investments held in Alchemy Investments Acquisition Corp 1's Trust Account decreased from $11,851,808 as of December 31, 2024, to $8,662,826 as of September 30, 2025. This reduction was primarily due to $3,791,334 being removed for Class A ordinary share redemptions on September 11, 2025.

What were the key factors contributing to Alchemy Investments Acquisition Corp 1's net loss in Q3 2025?

The primary factors contributing to Alchemy Investments Acquisition Corp 1's net loss of $341,897 in Q3 2025 were a significant decrease in gain on investments held in the Trust Account to $119,784 (from $1,609,935 in Q3 2024) and increased operating and formation costs of $428,114 (from $158,154 in Q3 2024).

What is the current status of Alchemy Investments Acquisition Corp 1's business combination efforts?

As of September 30, 2025, Alchemy Investments Acquisition Corp 1 had not commenced any operations and was still in pursuit of a target company to effect a Business Combination. The company aims to complete a Business Combination with an aggregate fair market value of at least 80% of the net assets held in the Trust Account.

What are the risks associated with investing in Alchemy Investments Acquisition Corp 1?

Key risks include the significant reduction in the Trust Account balance due to redemptions, increasing operating losses, and the inherent uncertainty of completing a Business Combination within the specified timeframe. The company's reliance on related party promissory notes, which increased to $1,710,000, also presents a risk.

How many Class A ordinary shares of Alchemy Investments Acquisition Corp 1 were redeemed recently?

On September 11, 2025, 324,420 Class A ordinary shares of Alchemy Investments Acquisition Corp 1 were redeemed, resulting in $3,791,334 being removed from the company's Trust Account.

What is the impact of the increased operating costs on Alchemy Investments Acquisition Corp 1?

Increased operating and formation costs, which rose to $1,150,604 for the nine months ended September 30, 2025, from $601,170 in the prior year, are contributing to the company's net losses and further depleting its cash reserves outside the Trust Account, which stood at $319,258.

What is the role of the Sponsor, Alchemy DeepTech Capital LLC, in Alchemy Investments Acquisition Corp 1?

Alchemy DeepTech Capital LLC, the Sponsor, purchased 538,000 private placement shares at $10.00 per share. The Sponsor, along with officers and directors, has agreed to waive redemption rights and vote in favor of an initial Business Combination, aligning their interests with the company's success.

What is the deadline for Alchemy Investments Acquisition Corp 1 to complete a Business Combination?

Alchemy Investments Acquisition Corp 1 must complete its initial Business Combination within 18 months from the closing of its Initial Public Offering, which occurred on May 9, 2023. Failure to do so would result in the distribution of funds held in the Trust Account.

What does 'redeemable Class A ordinary shares' mean for Alchemy Investments Acquisition Corp 1?

Redeemable Class A ordinary shares refer to shares that public shareholders can elect to redeem for a pro-rata portion of the funds held in the Trust Account if they do not approve of a proposed business combination or if the company fails to complete one. As of September 30, 2025, 737,543 Class A ordinary shares were subject to possible redemption at a value of $11.61 per share.

Risk Factors

Industry Context

As a special purpose acquisition company (SPAC), Alchemy Investments Acquisition Corp 1 operates in a unique segment of the financial industry focused on identifying and merging with a target company. The SPAC market is characterized by intense competition to find attractive acquisition targets and the pressure to complete a business combination before the SPAC's expiration date. Recent market trends have seen increased scrutiny on SPACs, with a focus on governance, valuation, and post-merger performance.

Regulatory Implications

SPACs are subject to SEC regulations and reporting requirements, including those related to financial disclosures and potential business combinations. Changes in accounting standards or regulatory interpretations could impact how SPACs report their financial condition and operations. The significant redemptions and shift to net losses may attract closer regulatory attention regarding the company's financial sustainability.

What Investors Should Do

  1. Monitor Trust Account Performance
  2. Evaluate Expense Management
  3. Assess Business Combination Progress
  4. Analyze Related Party Financing

Key Dates

Glossary

Trust Account
A segregated trust account established to hold the proceeds of the company's initial public offering and a portion of the proceeds from the private placement of warrants. (The value and performance of investments within the Trust Account are critical to the company's financial health and its ability to complete a business combination.)
Class A ordinary shares subject to possible redemption
Shares that holders have the right to redeem for cash at a specified redemption price upon the occurrence of certain events, typically related to a business combination. (Significant redemptions reduce the amount of cash available for the company's operations and business combination, impacting its financial resources.)
Accumulated deficit
The cumulative net losses of a company since its inception, less any net income. (A growing accumulated deficit indicates ongoing losses and can impact the company's ability to attract future financing or achieve profitability.)
Promissory note - related party
A written promise to pay a specific sum of money to a related party (e.g., sponsor, director) on demand or at a specified future date, with or without interest. (An increase in this liability suggests reliance on financing from entities closely connected to the company's management or sponsors.)

Year-Over-Year Comparison

Compared to the prior year, Alchemy Investments Acquisition Corp 1 has experienced a significant financial downturn. For the three months ended September 30, 2025, the company reported a net loss of $341,897, a stark contrast to the $1,456,069 net income in the same period of 2024. This trend is also evident year-to-date, with a net loss of $863,650 in 2025 versus a net income of $4,183,639 in 2024. Key drivers for this shift include a dramatic decrease in gains from investments held in the Trust Account and a substantial increase in operating and formation costs. Total assets have also declined from $12,098,428 to $9,024,646, primarily due to redemptions from the Trust Account.

Filing Stats: 4,660 words · 19 min read · ~16 pages · Grade level 18.2 · Accepted 2025-11-18 16:16:07

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 1 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 2 Condensed Consolidated Statements of Changes in Shareholders' Deficit for the three and nine months ended September 30, 2025 and 2024 (Unaudited) 3 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (Unaudited) 4 Notes to Unaudited Condensed Consolidated 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 25 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

- OTHER INFORMATION

PART II - OTHER INFORMATION 29 Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 30 Item 4. Mine Safety Disclosures 30 Item 5. Other Information 30 Item 6. Exhibits 31

SIGNATURES

SIGNATURES 32 Table of Contents

– Financial Information

Part I – Financial Information

Condensed Consolidated Financial Statements

Item 1. Condensed Consolidated Financial Statements ALCHEMY INVESTMENTS ACQUISITION CORP 1 CONDENSED CONSOLIDATED BALANCE SHEETS September 30, 2025 December 31, 2024 (Unaudited) Assets: Current assets: Cash and cash equivalents $ 319,258 $ 181,174 Prepaid expenses - current 42,195 65,446 Total current assets 361,453 246,620 Investments held in Trust Account (2) 8,662,826 11,851,808 Organization costs 367 — Total Assets $ 9,024,646 $ 12,098,428 Liabilities, Redeemable Class A Ordinary Shares and Shareholders' Deficit: Current liabilities: Accounts payable $ 779,785 $ 722,599 Accrued expenses 778,642 352,061 Accrued expenses - related party 23,082 197,225 Accrued interest expenses - related party 119,553 27,972 Promissory note - related party 1,710,000 530,000 Total current liabilities 3,411,062 1,829,857 Deferred underwriting fee payable 5,175,000 5,175,000 Total Liabilities 8,586,062 7,004,857 Commitments and Contingencies (Note 6) Class A ordinary shares subject to possible redemption, $ 0.0001 par value, 737,543 and 1,061,963 at redemption value of $ 11.61 , and $ 10.98 as of September 30, 2025, and December 31, 2024, respectively (2) (3) 8,562,825 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 737,543 and 1,061,963 shares subject to possible redemption as of September 30, 2025 and December 31, 2024, respectively) as of September 30, 2025 and December 31, 2024, respectively (1) (2) (3) 348 348 Class B ordinary shares, $ 0.0001 par value; 20,000,000 shares authorized; 1 share issued and outstanding as of September 30, 2025 and December 31, 2024, respectively (1) — — Common stock, $ 0.0001 par value, 1,000 shares and 0 shares au

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