Eureka Acquisition Corp Reports $542,018 Net Income, $0.13 Basic and Diluted Net Income per Share

Eureka Acquisition Corp reported a net income of $542,018 for Q4 2024, driven by interest income from the Trust Account and partially offset by general and administrative expenses. The company has until July 3, 2025, to complete its initial business combination, with an initial focus on Asia. Management has expressed concerns about the company's ability to continue as a going concern due to the mandatory liquidation requirement if a business combination is not completed within the specified period.

Eureka Acquisition Corp, a special purpose acquisition company (SPAC) based in Hong Kong, reported a net income of $542,018 for the fourth quarter of 2024. The company's financial performance was driven primarily by interest income from its trust account, which totaled $560,000 [1]. However, this was partially offset by general and administrative expenses, which amounted to $118,000.

As of September 30, 2024, Eureka Acquisition Corp had not yet completed its initial business combination. The company has until July 3, 2025, to do so, with an initial focus on the Asian market [1]. Management has expressed concerns about the company's ability to continue as a going concern if a business combination is not completed within the specified period due to the mandatory liquidation requirement [1].

SPACs are becoming increasingly popular as a means of raising capital for acquisitions, particularly in the technology and healthcare sectors. However, they face significant pressure to complete a business combination within a relatively short timeframe, which can be challenging, especially in today's volatile market conditions.

Eureka Acquisition Corp is not alone in facing these challenges. According to a report by Goldman Sachs, as of December 31, 2022, there were 592 SPACs that had yet to complete a business combination, up from 437 in the previous quarter [2]. This represents a significant increase in the number of SPACs that are at risk of liquidation due to their inability to meet the deadline for completing a business combination.

In conclusion, Eureka Acquisition Corp reported a net income of $542,018 for the fourth quarter of 2024, driven primarily by interest income from its trust account. However, the company faces significant pressure to complete a business combination within the next two years, and management has expressed concerns about the company's ability to continue as a going concern if a business combination is not completed within the specified period.

References:

[1] Eureka Acquisition Corp. (2023, February 14). Eureka Acquisition Annual Report for Fiscal Year Ending September 30, 2024. Retrieved from https://www.marketscreener.com/quote/stock/EUREKA-ACQUISITION-CORP-175586732/news/Eureka-Acquisition-Annual-Report-for-Fiscal-Year-Ending-September-30-2024-Form-10-K-48655249/

[2] Goldman Sachs. (2023, February 6). The SPAC Landscape. Retrieved from https://www.goldmansachs.com/insights/spac-landscape.html