Israel Acquisitions Corp. Reports Financial Results for the Quarter Ended September 30, 2024
Israel Acquisitions Corp. (the “Company”) filed its quarterly report for the period ended September 30, 2024. The Company reported a net loss of $1.4 million for the three months ended September 30, 2024, compared to a net loss of $1.1 million for the same period in 2023. As of September 30, 2024, the Company had cash and cash equivalents of $14.4 million, compared to $15.4 million as of December 31, 2023. The Company’s total assets were $16.4 million as of September 30, 2024, and its total liabilities were $0.4 million. The Company’s ordinary shares subject to possible redemption were 8,022,115 as of September 30, 2024, and its shareholders’ deficit was $2.4 million. The Company’s management’s discussion and analysis of financial condition and results of operations is included in the report, which provides an overview of the Company’s financial performance and position.
Overview
We are a newly organized blank check company incorporated on August 24, 2021, as a Cayman Islands exempted company. Our purpose is to find and merge with a business, particularly a high-growth technology company with ties to Israel. As of now, we have not generated any revenue and do not expect to do so until we complete our first business combination.
Recent Developments
On January 2, 2024, we entered into a Business Combination Agreement with Pomvom Ltd., a company based in Israel. This agreement outlines the steps for Pomvom to merge with a new company we will form, and for that new company to then merge with us.
We have taken out several promissory notes from our sponsor to fund our operations and extensions of our deadline to complete a deal. As of September 30, 2024, we had $150,000 outstanding on one of these notes.
On April 22, 2024, we amended the Business Combination Agreement with Pomvom to extend some deadlines related to the deal.
On August 22, 2024, we mutually terminated the Business Combination Agreement with Pomvom.
On October 16, 2024, we entered a non-binding letter of intent to potentially combine with Gadfin Aero-Logistics Systems, another Israeli company.
Results of Operations
For the three months ended September 30, 2024, we had net income of $810,926, primarily from interest and dividends on the funds held in our trust account.
For the nine months ended September 30, 2024, we had net income of $2,125,673, also mostly from investment income on the trust account funds.
Liquidity and Capital Resources
As of September 30, 2024, we had $26,702 in cash outside the trust account and a working capital deficit of $1,047,973.
The funds in our trust account totaled $81,508,968 as of September 30, 2024, including investment gains. We intend to use these funds to complete a business combination.
We may need to raise additional funds to cover our operating expenses prior to a business combination. Our sponsor has agreed to loan us up to $1.5 million if needed.
There is substantial doubt about our ability to continue as a going concern within one year of the financial statements being issued, due to our working capital deficit.
Contractual Obligations
- The only significant contractual obligation we have is the $5.4 million deferred discount owed to the underwriters of our initial public offering, which will be payable only if we complete a business combination.
Critical Accounting Estimates and Recent Pronouncements
We have not identified any critical accounting estimates as of September 30, 2024.
A new accounting standard was issued in December 2023 that will require additional income tax disclosures, but it is not expected to have a material impact on us.
