Overview

Maywood Acquisition Corp. is a blank check company incorporated in the Cayman Islands with the purpose of merging with or acquiring another business (a “Business Combination”). As of March 31, 2025, the company had not yet started operations, and all activities since its inception on May 31, 2024 have been related to its formation, initial public offering (IPO), and the search for a potential target business to combine with. The company will not generate any operating revenue until it completes a Business Combination.

Initial Public Offering and Private Placement

Maywood Acquisition Corp. completed its IPO on February 14, 2025, selling 8,625,000 units at $10 per unit and raising gross proceeds of $86,250,000. Simultaneously, the company conducted a private placement of 265,625 units at $10 per unit, raising an additional $2,656,250. The Sponsor also provided a $500,000 non-interest bearing loan to the company. A total of $86,250,000 was deposited into a trust account to be used for redemptions or the company’s liquidation if a Business Combination is not completed within the required timeframe. The remaining proceeds are available for the company’s working capital needs.

Liquidity and Capital Resources

As of March 31, 2025, the company had $504,566 in cash held outside the trust account and $571,281 in working capital. Cash used in operating activities for the three months ended March 31, 2025 was $218,301, primarily due to changes in operating assets and liabilities and interest income earned on the trust account funds. The company believes the available funds outside the trust account will be sufficient to operate for at least the next 12 months, but additional funding may be required if the costs of identifying and completing a Business Combination are higher than expected or if interest income is lower than anticipated.

Going Concern Consideration

The company has determined that if a Business Combination is not completed within the required timeframe, there will be a mandatory liquidation and dissolution of the company. This raises substantial doubt about the company’s ability to continue as a going concern, and the financial statements do not include any adjustments that might result from this uncertainty.

Results of Operations

For the three months ended March 31, 2025, the company reported net income of $379,937, primarily consisting of $417,209 in interest earned on the trust account investments and $3,151 in interest income on the cash held outside the trust account, offset by $40,423 in formation and operating costs.

Contractual Obligations

The company has the following contractual obligations:

1. Administrative Services Agreement: The company pays its Sponsor $1,667 per month for office space and administrative support services. For the quarter ended March 31, 2025, the company incurred $2,501 under this agreement.

2. Sponsor Loan: The Sponsor provided a $500,000 non-interest bearing, non-convertible promissory note, which is expected to be repaid upon the completion of a Business Combination.

3. Deferred Underwriting Fee: The underwriters are entitled to a $3,450,000 deferred fee, which will only become payable upon the successful completion of a Business Combination.

Critical Accounting Estimates and Recent Accounting Standards

The company has not identified any critical accounting estimates as of March 31, 2025. The company is evaluating the impact of recently issued accounting standards, including ASU 2023-07 on segment reporting and ASU 2023-09 on income tax disclosures, but does not expect them to have a material effect on its financial statements.