0001213900-26-036396
SEC filingRising Dragon Acquisition Corp. recorded strong year-over-year net income growth in FY2025 while incurring higher operating costs as it pursues an initial business combination.
For the 2025 fiscal year, Rising Dragon Acquisition Corp. reported GAAP net income of $1.6M, representing a 511.2% year-over-year increase from the $257.5K in net income recorded for FY2024. As a special purpose acquisition company, the firm has not launched principal operations associated with a target business, with financial results primarily reflecting passive income and operating costs tied to its core mandate of identifying and completing a qualifying business combination.
Net cash used in operating activities for FY2025 came to $660,474, compared to $326,033 in cash used for operating activities in FY2024, with higher spend aligned with increased activity related to evaluating potential acquisition targets. The company maintains no long-term debt, capital lease obligations, operating lease obligations, or other long-term liabilities, reducing fixed cost pressure as it advances its acquisition search. On December 12, 2025, the company entered into an amendment to its Investment Management Trust Agreement with Continental Stock Transfer & Trust Company. Management has assessed that the company’s available working capital and borrowing capacity are sufficient to cover all anticipated cash needs prior to the completion of an initial business combination.
The Sponsor holds certain demand and piggyback registration rights associated with its purchase of Private Units. Eligible holders may submit up to three non-short-form demands to register their securities, while holders affiliated with the company’s IPO underwriters are limited to a single registration demand, which may only be made during the five-year period beginning on the effective date of the IPO registration statement. The company expects to continue incurring significant costs as it pursues its acquisition plans, and there can be no assurance that it will successfully complete an initial business combination.