Breaking Down Clover Leaf Capital Corp. (CLOE) Financial Health: Key Insights for Investors

You're looking for a clear-eyed assessment of Clover Leaf Capital Corp. (CLOE) financial health, but the truth is, the story has fundamentally changed since the start of 2025. This is no longer a growth-opportunity SPAC; it's a liquidation play, which shifts the entire risk-reward profile. The company announced its intention to liquidate back in November 2024 after terminating a merger agreement, which means the near-term focus is on the trust value, not future earnings. While the stock was trading around $12.47 per share in early 2025, the real question for investors is the final redemption value of the Class A common stock from the initial public offering, a value historically anchored near the initial $10.00 offering price plus accrued interest. With a Market Capitalization of approximately $61.91 million and 4.96 million shares outstanding as of January 2025, the financial health is simply the cash balance in the trust account, and you need to understand the mechanics of that final payout to avoid defintely leaving money on the table.

Revenue Analysis

You're looking for a traditional revenue breakdown for Clover Leaf Capital Corp. (CLOE), but the reality is that its revenue profile is entirely non-operational. This is the crucial first insight: Clover Leaf Capital Corp. is a Special Purpose Acquisition Company (SPAC), a 'blank check company,' not an operating business. It has no product sales, no service fees, and no regional business segments contributing to top-line revenue.

The company's financial life is defined by its trust account, which held approximately $8,548,316 as of July 24, 2024. Therefore, its primary 'revenue stream' is actually non-operating income-specifically, the interest earned on those funds. This is the only financial activity that offsets its administrative and operating expenses, which are incurred while searching for an acquisition target in the legalized cannabis industry.

Breakdown of Primary Revenue Sources

For the purpose of your analysis, you must re-frame your thinking from 'revenue' to 'net income/loss' and focus on the non-operating interest income. Since the company announced its intention to liquidate in November 2024, its 2025 fiscal year activity is dominated by the winding-down process and the preservation of the trust assets for redemption. The only segment is the corporate entity itself.

Here is the quick math on the financial activity, using the most recent available quarterly data to show the trend:

• Primary Source: Interest income from the trust account (non-operating).
• Operating Revenue: $0 (No products/services sold).
• Net Loss (Q1 2024): $316,193.

The net loss is the real metric here, as it reflects the administrative costs exceeding the interest income. What this estimate hides is the one-time, non-recurring expenses tied to the terminated merger agreement and the subsequent liquidation process announced in late 2024, which will significantly impact the final 2025 fiscal year numbers.

Year-over-Year Financial Trend (Loss)

Since traditional revenue growth is not applicable, we look at the change in net loss, which acts as a proxy for the burn rate of the company's working capital. The trend shows a massive acceleration in administrative costs, likely driven by the prolonged and ultimately failed acquisition search.

The year-over-year change in net loss is stark, highlighting the escalating cost of operations for a SPAC that has not yet completed a business combination (de-SPAC):

An 874% increase in net loss from Q1 2023 to Q1 2024 is a defintely clear signal of rising general and administrative expenses-legal, accounting, and due diligence fees-that consumed the interest income. This non-traditional 'growth rate' is the key risk indicator for investors.

For a deeper dive into the implications of the liquidation, I've written a full post: Breaking Down Clover Leaf Capital Corp. (CLOE) Financial Health: Key Insights for Investors. Your next step should be to analyze the balance sheet, focusing on the trust account's value per share versus the current market price, as that is the true intrinsic value of a liquidating SPAC.

Profitability Metrics

You're looking at Clover Leaf Capital Corp. (CLOE) and seeing some alarming profitability numbers, but you need to understand the context first. The direct takeaway is that CLOE is a Special Purpose Acquisition Company (SPAC), essentially a non-operating shell company. This structure means its profitability metrics are fundamentally different from a traditional business; they reflect administrative costs, not operational performance.

For the 2025 fiscal year, or at least based on the most recent Trailing Twelve Months (TTM) data ending mid-2024, Clover Leaf Capital Corp. shows a stark picture. Its core profitability ratios are either zero or deeply negative, which is defintely typical for a SPAC pre-merger.

• Gross Profit Margin: 0.00%
• Operating Profit Margin: 0.00%
• Net Profit Margin: Negative (due to operating expenses)

The reason is simple: a SPAC's primary function is to raise capital and find a target company to merge with, not to sell goods or services. So, its Total Revenue is $0.00, which makes its Gross Profit (Revenue minus Cost of Goods Sold) also $0.00.

Operating Efficiency and Net Losses

While the Gross Profit is zero, the company still incurs expenses for its operations, which is why the Operating Income and Net Income are negative. This reflects the burn rate-the cash spent on administrative and legal costs while searching for a merger target. Here's the quick math on the losses:

The Operating Loss of approximately $1.73 million (as of the period ending June 30, 2024) and Net Loss of about $1.32 million show that the company is effectively spending money to exist and search for a deal. The trend in profitability over time for a SPAC is less about growth and more about managing this administrative expense line until the business combination closes. A lower, well-controlled operating loss is a sign of good cost management in this specific context.

Comparison with Industry Averages

Comparing Clover Leaf Capital Corp.'s margins to the broader Industrials sector-where it is sometimes classified-is a useful exercise in contrast, but it highlights the unique nature of a SPAC. The typical industry averages for a revenue-generating company are robust, showing strong operational performance:

• Industry Average Gross Margin (TTM): 62.46%
• Industry Average Operating Margin (TTM): 35.06%
• Industry Average Net Profit Margin (TTM): 23.62%

CLOE's 0.00% Gross and Operating Margins stand in stark contrast to these figures. What this estimate hides is that the comparison is apples-to-oranges; the high industry margins are for companies that actually sell products or services. CLOE's profitability will only become comparable to these averages after it successfully completes a merger with an operating business. Until then, the focus for investors should be on the low and stable administrative loss, which indicates efficient capital preservation, and the progress toward a successful acquisition. For a more detailed look at the company's full financial health, you can check out our full analysis: Breaking Down Clover Leaf Capital Corp. (CLOE) Financial Health: Key Insights for Investors.

Your action now: Monitor the burn rate (the operating loss) and the deadline for the SPAC to complete its merger. That's the real metric for a shell company.

Debt vs. Equity Structure

You're looking at Clover Leaf Capital Corp. (CLOE) and trying to figure out how they finance their operations, which is always the right question for a Special Purpose Acquisition Company (SPAC). The direct takeaway is that CLOE's financial structure is defined by its pre-merger status, showing minimal long-term debt but a negative equity position, which is now leading directly to liquidation.

As of late 2024 and into the 2025 fiscal year data, Clover Leaf Capital Corp.'s balance sheet shows a structure typical of a SPAC that has passed its deadline without completing a merger. The company's total reported debt is approximately $4.66 million, but nearly all of this is classified as short-term or current liabilities, not long-term debt. In fact, their long-term debt was officially $0 USD as of the December 31, 2023, financial report. This debt is mostly working capital loans from the sponsor to cover administrative and operating expenses while searching for a target company.

This is a shell company, so its financing is all about the near-term. The company's Debt-to-Equity (D/E) ratio, which measures how much debt a company uses to finance its assets relative to the value of shareholders' equity, sits at approximately -0.43 for the current period (Jan '25). That negative number is a red flag in a traditional business, but for a SPAC, it reflects an accumulated deficit-operating expenses that have eroded the initial shareholder equity over time.

• Total Debt: $4.66 million (Primarily short-term)
• Long-Term Debt: $0 USD
• Debt-to-Equity Ratio (Current): -0.43

To be fair, the average D/E ratio for the broader Capital Markets industry, a close proxy, is around 0.53 as of November 2025. CLOE's negative ratio means the company has a negative book value, a clear sign of financial distress that the market has already factored in. The company's primary method of balancing debt and equity has been through sponsor financing. For example, in 2022, the sponsor, Yntegra Capital Investments, LLC, provided a loan of $1,383,123 to extend the deadline for a business combination, which was convertible into equity units. This is how they avoid a debt default: by converting debt into equity or securing new sponsor loans.

The financial structure's near-term risk has fully materialized. In November 2024, Clover Leaf Capital Corp. announced the termination of its merger agreement and, critically, its intention to liquidate. This means the debt-vs-equity question is now moot; the company is winding down, and the focus shifts entirely to the redemption value of the Class A common stock from the trust account. The equity holders will get a redemption value, and the short-term debt will be settled. That's the defintely most important action to track now, as detailed in our full breakdown: Breaking Down Clover Leaf Capital Corp. (CLOE) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know how quickly Clover Leaf Capital Corp. (CLOE) can cover its near-term obligations, especially now that the company has announced its intention to liquidate. The short answer is: its raw liquidity ratios are extremely low, reflecting a company with minimal operating assets and significant short-term debt, which is typical for a Special Purpose Acquisition Company (SPAC) that has terminated its merger.

The core issue is a stark mismatch between liquid assets and current liabilities. As of the most recent data (January 2025/Trailing Twelve Months), Clover Leaf Capital Corp.'s Current Ratio sits at a mere 0.02. The Quick Ratio (acid-test ratio), which excludes less liquid assets like inventory, is even lower at 0.01. A healthy ratio is typically 1.0 or higher. This means for every dollar of current liabilities, the company only holds about two cents in current assets. That's defintely a red flag on paper.

Analysis of Working Capital Trends

The trend in working capital (Current Assets minus Current Liabilities) is deeply negative, which is the main driver of those low ratios. The company's cash and short-term investments are only about $51.12K, while its total debt is approximately $4.66 million. This results in a net cash position of approximately -$4.61 million.

Here's the quick math on the liquidity position based on the most recent available data:

• Current Ratio: Current Assets / Current Liabilities = 0.02
• Quick Ratio: (Cash + Equivalents + Receivables) / Current Liabilities = 0.01
• Net Cash Position: Cash ($51.12K) - Total Debt ($4.66M) = -$4.61 million

What this estimate hides is the critical context: the company's primary liability is the obligation to redeem its public shares, which is a financing event, not an operating one. The liquidation process, announced in November 2024, is the ultimate solution to this working capital deficit for the public shareholders, as the redemption price is usually close to the trust value per share.

Cash Flow Statements Overview

For a SPAC like Clover Leaf Capital Corp., the cash flow statement tells a story of administrative burn and capital raising/return.

• Operating Cash Flow (OCF): This is consistently negative. With zero revenue, the OCF is simply the cash burn from administrative and general expenses. In 2023, operating expenses were approximately $1.59 million, which translates directly into a negative OCF trend as the company searched for a target.
• Investing Cash Flow (ICF): This is typically minimal or zero, as a SPAC holds its cash in a trust account (often in short-term US Treasury securities) until a merger is completed or the company liquidates.
• Financing Cash Flow (FCF): This is the most volatile and important component. The initial IPO raised a large amount of cash (a positive FCF). The November 2024 announcement to liquidate and redeem the outstanding Class A common stock is a massive, near-term negative FCF event for 2025, as the company returns the cash from the trust to its public shareholders. This is the intended and final use of the cash.

Potential Liquidity Concerns and Strengths

The primary strength is that the company is a SPAC, and the vast majority of its IPO proceeds are held in a trust account for the sole purpose of a business combination or liquidation. The announced liquidation in late 2024 means the company is executing its final mandate: redeeming shares at a value close to the trust amount, which is a controlled return of capital, not a default.

The liquidity concern is not about operational survival, but about the final redemption value. Any remaining administrative expenses (the OCF burn) will reduce the final per-share redemption amount. The low current and quick ratios are a technical consequence of the liquidation process, where the redemption obligation is classified as a current liability against the cash in the trust. Investors should focus less on the ratios and more on the final trust value per share. For more on the shareholder base, you can read Exploring Clover Leaf Capital Corp. (CLOE) Investor Profile: Who's Buying and Why?

Valuation Analysis

You need a clear picture of whether Clover Leaf Capital Corp. (CLOE) is overvalued or undervalued, but the answer is complicated by its status as a Special Purpose Acquisition Company (SPAC). As a SPAC, CLOE's valuation is less about traditional earnings and more about its cash-in-trust and the market's expectation of a successful merger (de-SPAC). The current stock price, as of late 2025, sits near its trust value at approximately $12.47 per share.

The stock has shown a modest gain of about +3.92% over the last 52 weeks, trading within a 52-week range of $10.00 to $14.75. This tight range is typical for a SPAC, where the share price often hovers around the redemption value until a definitive merger target is secured. The market capitalization is roughly $61.91 million, with an Enterprise Value (EV) of $66.51 million.

Ratios: The SPAC Anomaly

Traditional valuation ratios like Price-to-Earnings (P/E) and Enterprise Value-to-EBITDA (EV/EBITDA) are largely non-starters here. Since Clover Leaf Capital Corp. is a blank check company with no significant operations, it has negative net income, which distorts these metrics. This isn't a sign of a failing business, but a symptom of its structure.

• Price-to-Earnings (P/E): The P/E ratio is cited as -51.44. A negative P/E simply means the company is losing money, which is expected for a SPAC that is only incurring operating expenses and not generating revenue.
• Price-to-Book (P/B): This ratio is currently listed as not applicable (n/a) or highly negative, reflecting the lack of substantial operating assets outside of the cash held in trust.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is also listed as not applicable (n/a). Here's the quick math: since there is no significant EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), the ratio is meaningless for a pre-merger entity.

What this estimate hides is the risk of liquidation, which the company announced an intention to pursue in November 2024 after a merger agreement was terminated. This is a critical near-term risk that can cap the upside and define the floor of the stock price.

Dividends and Analyst View

Clover Leaf Capital Corp. does not currently pay a dividend, so both the dividend yield and payout ratios are n/a. For a SPAC, capital is preserved for the eventual business combination, not distributed to shareholders.

The analyst consensus on the stock valuation leans toward a Hold. Analysts view it as a 'hold or accumulate' candidate while awaiting further developments, which is a fair assessment given the binary nature of a SPAC investment. You are defintely betting on the management team's ability to find and close a deal, or on the value of the cash in trust if they liquidate. To understand the team's strategy, you should review their Mission Statement, Vision, & Core Values of Clover Leaf Capital Corp. (CLOE).

Here is a summary of the key financial data for the 2025 fiscal year:

Next step: Dig into the latest SEC filings to confirm the exact cash-per-share value, as that is the true floor for a SPAC like Clover Leaf Capital Corp. (CLOE).

Risk Factors

You need to know the most critical fact about Clover Leaf Capital Corp. (CLOE) right now: the company is in the process of liquidation. The single largest risk is not competition or market volatility, but the definitive wind-down of the business, which caps your potential return.

The company, a Special Purpose Acquisition Company (SPAC), announced its intention to liquidate on November 8, 2024, after mutually agreeing to terminate its merger with Kustom Entertainment, Inc.. This decision means the entire strategic objective-to complete an initial business combination (De-SPAC)-failed. This is the ultimate operational and strategic risk realized.

Operational and Strategic Liquidation Risk

The operational risk is now the process of dissolution itself. Clover Leaf Capital Corp. (CLOE) is essentially a shell company, and its financial health reflects this reality as of the 2025 fiscal year. Their trailing twelve months (TTM) Net Income stands at approximately -$1.17 million, with no reported revenue. This deficit represents the costs of being a SPAC that failed to find a target. The key risks are:

• Failure to Complete De-SPAC: The core mandate was not met.
• Warrant Value Erosion: Warrants (CLOEW) will expire worthless upon liquidation, representing a total loss for those holders.
• Management Focus Shift: The team's focus has moved from identifying a high-growth target to managing the administrative process of winding down.

Honestly, the game is over for the original investment thesis. The stock price, at around $12.47 as of October 15, 2025, reflects the market's expectation of the final redemption value, not a future operating business.

Financial and Market Risks (The Redemption Cap)

The financial risk is that your return is now capped by the value held in the trust account. The initial public offering (IPO) price was $10.00 per unit. The liquidation process dictates that the company must redeem all outstanding shares of Class A common stock sold in the IPO. The redemption price is typically the pro-rata share of the trust account, which includes the initial $10.00 per share plus accrued interest, minus taxes and dissolution expenses.

Here's the quick math: since the IPO, the trust has earned a small amount of interest. While the exact final amount isn't published in the latest updates, it will likely be slightly above the IPO price, perhaps in the $10.30 to $10.50 range, based on typical SPAC trust returns. What this estimate hides is the opportunity cost-you've had capital tied up for years for a modest, capped return.

The market capitalization of Clover Leaf Capital Corp. (CLOE) was approximately $61.91 million as of October 2025, but this figure is based on a company expecting to liquidate, not one with a viable business model.

External and Regulatory Risks

The original intent of Clover Leaf Capital Corp. (CLOE) was to acquire a company in the legalized cannabis industry. Had the merger succeeded, the external risks would have been significant:

• Regulatory Uncertainty: The cannabis industry faces constant flux in US federal and state laws.
• Intense Competition: The sector is highly fragmented with established players, creating a competitive environment that erodes margins.

These external risks are now moot, but they highlight the difficulty of the original strategic path. You can read more about the company's initial focus in their Mission Statement, Vision, & Core Values of Clover Leaf Capital Corp. (CLOE).

Mitigation and Investor Action

The company's mitigation strategy is the liquidation itself: they plan to redeem all outstanding public shares. Your action is clear: ensure your broker processes the redemption correctly. The redemption is expected to occur soon after the liquidation is finalized, converting your shares into cash at the final trust value.

Your next step is to confirm the final redemption date and exact cash amount per share with your brokerage firm.

Growth Opportunities

You're looking for a clear path forward with Clover Leaf Capital Corp. (CLOE), but the reality is the company's future growth prospects are zero. The ultimate financial outcome for investors in 2025 is the return of capital, not business growth. Following the termination of its merger agreement with Kustom Entertainment, Clover Leaf Capital Corp. announced its intention to liquidate and redeem all outstanding shares of Class A common stock in November 2024.

The company, a Special Purpose Acquisition Company (SPAC), is now in the wind-down phase. This means the investment thesis pivots entirely from potential cannabis industry expansion to a straightforward capital return calculation. Your focus should be on the redemption value, which is the final, concrete number for this investment.

Here's the quick math on your expected 2025 return, based on the original IPO price of $10.00 per share plus accrued interest from the trust account:

• Expected Per-Share Redemption: Approximately $10.25.
• Source of Value: Trust account assets, not operating revenue.
• Timeline: Redemption details were expected to be announced shortly after the November 2024 liquidation decision.

What this estimate hides is the opportunity cost, but honestly, getting your capital back with a small interest premium is the best-case scenario for a failed SPAC. The original growth drivers-product innovations, market expansions, and strategic initiatives in the legalized cannabis industry-are all off the table. The competitive advantage, which was the sponsor's ability to source a high-quality target, vanished when the Kustom Entertainment merger was terminated.

For the 2025 fiscal year, the only relevant financial data is the liquidation value. The redemption amount for Class A common stock is expected to be in the range of $10.20 to $10.30 per share, which is typical for a SPAC liquidation, reflecting the initial public offering price of $10.00 plus the interest earned on the funds held in trust. This is the final earnings estimate you need to consider.

Your next step is to monitor your brokerage account for the cash deposit representing the redemption of your Clover Leaf Capital Corp. (CLOE) shares. For a deeper dive into the mechanics of this situation, you can read our full analysis: Breaking Down Clover Leaf Capital Corp. (CLOE) Financial Health: Key Insights for Investors.

The table below summarizes the 2025 financial outlook, which is solely focused on capital return: