[10-Q] AA Mission Acquisition Corp. Quarterly Earnings Report
Rhea-AI Filing Summary
AA Mission Acquisition Corp. filed its quarterly report for the period ended September 30, 2025, showing non‑operating income from its trust investments and modest operating expenses typical of a SPAC pre‑merger.
Net income was $3,612,987 for the quarter and $10,558,941 year‑to‑date, driven by dividends earned on the trust account. General and administrative expenses were $163,979 for the quarter. Cash on hand was $748,602, and management reported a working capital deficit of $611,252.
The trust account held $364,530,636 as of September 30, 2025. The company has until August 2, 2026 to complete a business combination, after which it would redeem public shares and liquidate. Management noted substantial doubt about the company’s ability to continue as a going concern absent a timely combination. To support operations, the sponsor provided a $1,000,000 unsecured, non‑interest‑bearing convertible note, convertible at $10.00 per unit. As of November 7, 2025, total shares issued and outstanding were 43,974,000.
Positive
- None.
Negative
- Going concern warning: Management states substantial doubt about continuing as a going concern absent a timely business combination by August 2, 2026.
Insights
Trust income lifts results, but going‑concern risk remains until a deal closes.
AA Mission reports net income of
Despite available cash of
Key dependencies are completion of a qualifying transaction within the stated period and market conditions for redemptions and warrant exercises. Subsequent filings may provide updates on potential targets or additional financing steps as the deadline approaches.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
or
For the transition period from __________________________ to__________________________
Commission File Number:
| (Exact name of registrant as specified in its charter) |
| N/A | ||
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
| (Address of principal executive offices) | (Zip Code) |
| (Registrant’s telephone number, including area code) |
| N/A |
| (Former name, former address and former fiscal year, if changed since last report) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Indicate by check mark whether the registrant
(1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90 days. ☒
Indicate by check mark whether the registrant
has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405
of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Smaller reporting company | |
| Emerging growth company |
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
As of November 7, 2025, the registrant
had a total of
AA MISSION ACQUISITION CORP.
INDEX TO FORM 10-Q
| Page # | ||
| PART I - FINANCIAL INFORMATION | 1 | |
| Item 1. Financial Statements (Unaudited) | 1 | |
| Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 2 | |
| Item 3. Quantitative and Qualitative Disclosures About Market Risk | 6 | |
| Item 4. Controls and Procedures | 7 | |
| PART II - OTHER INFORMATION | 8 | |
| Item 1. Legal Proceedings | 8 | |
| Item 1A. Risk Factors | 8 | |
| Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 8 | |
| Item 4. Mine Safety Disclosure | 8 | |
| Item 5. Other Information | 8 | |
| Item 6. Exhibits | 8 | |
| Signatures | 9 |
i
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements in this Quarterly Report on Form 10-Q are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical facts, including statements regarding our future results of operations and financial position, our business strategy and plans and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in “Risk Factors” of our Prospectus dated July 31, 2024 and in any subsequent filing we make with the SEC, as well as in any documents incorporated by reference that describe risks and factors that could cause results to differ materially from those projected in these forward-looking statements.
Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Quarterly Report on Form 10-Q may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.
Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are under no duty to update any of these forward-looking statements after completion of this Quarterly Report on Form 10-Q to conform these statements to actual results or revised expectations.
ii
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
AA MISSION ACQUISITION CORP.
INDEX TO CONDENSED FINANCIAL STATEMENTS
| Page | |
| Financial Statements: | |
| Condensed Balance Sheets as of September 30, 2025 (Unaudited) and December 31, 2024 | F-1 |
| Condensed Statements of Operations for the Three Months Ended September 30, 2025 and September 30, 2024, for the Nine Months Ended September 30, 2025 and for the Period from February 9, 2024 (Inception) Through September 30, 2024 (Unaudited) | F-2 |
| Condensed Statements of Changes in Shareholders’ Equity (Deficit) for the Three Months Ended September 30, 2025 and September 30, 2024, for the Nine Months Ended September 30, 2025 and for the Period from February 9, 2024 (Inception) Through September 30, 2024 (Unaudited) | F-3 |
| Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2025 and for the Period from February 9, 2024 (Inception) Through September 30, 2024 (Unaudited) | F-5 |
| Notes to Condensed Financial Statements (Unaudited) | F-6 |
1
AA MISSION ACQUISITION CORP.
CONDENSED BALANCE SHEETS
| September 30, 2025 | December 31, | |||||||
| (Unaudited) | 2024 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | $ | ||||||
| Prepaid expenses | ||||||||
| Prepaid insurance | ||||||||
| Bank interest receivable | ||||||||
| Total current assets | ||||||||
| Investment held in Trust Account | ||||||||
| Total Assets | $ | $ | ||||||
| Liabilities, Class A Ordinary Shares Subject to Possible Redemptions and Shareholders’ Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | ||||||||
| Convertible note payable | - | |||||||
| Due to related party | ||||||||
| Total current liabilities | ||||||||
| Deferred underwriting commissions | ||||||||
| Total liabilities | ||||||||
| Commitments and Contingencies (Note 6) | ||||||||
| Class A ordinary shares, $ | ||||||||
| Shareholders’ Deficit | ||||||||
| Preference shares, $ | - | - | ||||||
| Class A ordinary shares, $ | ||||||||
| Class B ordinary shares, $ | ||||||||
| Additional paid-in capital | - | - | ||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total Shareholders’ Deficit | ( | ) | ( | ) | ||||
| Total Liabilities, Commitments and Contingencies, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit | $ | $ | ||||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
F-1
AA MISSION ACQUISITION CORP.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2025 | For the Period from February 9, 2024 (Inception) Through September 30, 2024 | |||||||||||||
| General and administrative expenses | $ | $ | $ | $ | ||||||||||||
| Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Other income | ||||||||||||||||
| Dividends earned on marketable securities held in trust account | ||||||||||||||||
| Interest from the bank account | ||||||||||||||||
| Net income | $ | $ | $ | $ | ||||||||||||
| Basic and diluted weighted average ordinary shares outstanding, redeemable ordinary shares | ||||||||||||||||
| Basic and diluted net income per share, redeemable ordinary shares | $ | $ | $ | $ | ||||||||||||
| Basic and diluted weighted average ordinary shares outstanding, non-redeemable ordinary shares | ||||||||||||||||
| Basic and diluted net loss per share, non-redeemable ordinary shares | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
F-2
AA MISSION ACQUISITION CORP.
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)
(Unaudited)
For the Three and Nine Months Ended September 30, 2025
| Ordinary Shares | Additional | Total | ||||||||||||||||||||||||||
| Class A | Class B | Paid-in | Accumulated | Shareholders’ | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Equity/(Deficit) | ||||||||||||||||||||||
| Balance - December 31, 2024 | $ | $ | $ | - | $ | ( | ) | $ | ( | ) | ||||||||||||||||||
| Subsequent measurement of Ordinary Shares subject to possible redemption (Dividends earned on trust account) | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Net Income | - | - | - | - | - | |||||||||||||||||||||||
| Balance - March 31, 2025 | $ | $ | $ | - | $ | ( | ) | $ | ( | ) | ||||||||||||||||||
| Subsequent measurement of Ordinary Shares subject to possible redemption (Dividends earned on trust account) | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Net Income | - | - | - | - | - | |||||||||||||||||||||||
| Balance - June 30, 2025 | $ | $ | $ | - | $ | ( | ) | $ | ( | ) | ||||||||||||||||||
| Subsequent measurement of Ordinary Shares subject to possible redemption (Dividends earned on trust account) | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Net Income | - | - | - | - | - | |||||||||||||||||||||||
| Balance - September 30, 2025 | $ | $ | $ | - | $ | ( | ) | $ | ( | ) | ||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
F-3
AA MISSION ACQUISITION CORP.
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (DEFICIT)
(Unaudited)
For the Three Months Ended September 30, 2024 and
for the Period from February 9, 2024 (inception) through September 30, 2024
| Ordinary Shares | Additional | Total | ||||||||||||||||||||||||||
| Class A | Class B | Paid-in | Accumulated | Shareholders’ | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Equity/(Deficit) | ||||||||||||||||||||||
| Balance - February 09, 2024 (inception) | - | $ | - | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
| Founder shares issued to initial shareholder (1) | - | - | - | |||||||||||||||||||||||||
| Net Loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance - March 31, 2024 | - | $ | - | $ | $ | $ | ( | ) | $ | |||||||||||||||||||
| Net Loss | - | - | - | - | - | ( | ) | ( | ) | |||||||||||||||||||
| Balance - June 30, 2024 | - | $ | - | $ | $ | $ | ( | ) | $ | ( | ) | |||||||||||||||||
| Allocated value of offering costs to Ordinary shares | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Sale of private placement units to Sponsor in private placement | - | - | - | |||||||||||||||||||||||||
| Sale of over-allotment private placement units to Sponsor in private placement | - | - | - | |||||||||||||||||||||||||
| Fair value of warrants included in public units | - | - | - | - | ||||||||||||||||||||||||
| Net income | - | - | - | - | - | |||||||||||||||||||||||
| Remeasurement of ordinary shares subject to possible redemption | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Subsequent measurement of Ordinary Shares subject to possible redemption (Dividends earned on trust account) | - | - | - | - | ( | ) | - | ( | ) | |||||||||||||||||||
| Reclass Additional paid in capital to Accumulated Deficit | - | - | - | - | ( | ) | - | |||||||||||||||||||||
| Balance - September 30, 2024 | $ | $ | $ | - | $ | ( | ) | $ | ( | ) | ||||||||||||||||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
F-4
AA MISSION ACQUISITION CORP.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Nine Months Ended September 30, 2025 | For the Period from February 9, 2024 (Inception) Through September 30, 2024 | |||||||
| Cash Flows from Operating Activities: | ||||||||
| Net income | $ | $ | ||||||
| Adjustments to reconcile net income to net cash used in operating activities: | ||||||||
| Income earned on investment held in Trust Account | ( | ) | ( | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Bank interest receivable | ( | ) | - | |||||
| Prepaid expenses | ( | ) | ||||||
| Accounts payable and accrued expenses | ( | ) | ||||||
| Due to related party | - | |||||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Cash Flows from Investing Activities: | ||||||||
| Cash deposited in Trust Account | - | ( | ) | |||||
| Net cash used in Investing activities | - | ( | ) | |||||
| Cash Flows from Financing Activities: | ||||||||
| Proceeds received from promissory note, convertible | - | |||||||
| Proceeds from issuance of founder shares | - | |||||||
| Proceeds received from public units, gross | - | |||||||
| Proceeds received from private placement | - | |||||||
| Offering costs paid | - | ( | ) | |||||
| Net cash provided by financing activities | ||||||||
| Net increase in cash | ||||||||
| Cash - beginning of the period | - | |||||||
| Cash - ending of the period | $ | $ | ||||||
| Supplemental disclosure of noncash investing and financing activities: | ||||||||
| Subsequent measurement of ordinary shares subject to possible redemption (Dividends income earned on Trust Account) | $ | $ | ||||||
| Allocation of offering costs to ordinary shares subject to redemption | $ | - | $ | |||||
| Offering costs charged to Additional Paid-in Capital | $ | - | $ | |||||
| Remeasurement adjustment on ordinary shares subject to possible redemption | $ | - | $ | |||||
| Deferred underwriting commissions | $ | - | $ | |||||
| Reclassification of Value for Class A | $ | - | $ | |||||
The accompanying notes are an integral part of these unaudited condensed financial statements.
F-5
AA MISSION ACQUISITION CORP.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)
NOTE 1: ORGANIZATION AND BUSINESS OPERATIONS
AA Mission Acquisition Corp. (the “Company”) is a blank
check company incorporated in the Cayman Islands on
The Company is not limited to a particular industry or sector for purposes of consummating a Business Combination. The Company is an early stage and emerging growth company and, as such, the Company is subject to all of the risks associated with early stage and emerging growth companies.
As of September 30, 2025, the Company had not commenced any operations. All activity through September 30, 2025, relates to the Company’s formation and the initial public offering (the “IPO”), which is described below. The Company will not generate any operating revenues until after the completion of a Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income from the proceeds derived from the IPO. The Company has selected December 31 as its fiscal year end.
Financing
The Company’s founder and sponsor is AA Mission Acquisition Sponsor
Holdco LLC (the “Sponsor”). The registration statement for the Company’s IPO was declared effective on July 31, 2024.
On August 2, 2024, the Company consummated the IPO of
Simultaneously with the consummation of the IPO and the sale of the
Units, the Company consummated the private placement (“Private Placement”) of
Transaction costs amounted to $
On September 4, 2024, the underwriters exercised their over-allotment
option in full to purchase an additional
On May 22, 2025, the Company issued an unsecured, non-interest bearing
convertible promissory note in the principal amount of $
F-6
Business Combination
The Company will have until 18 months from the closing of the IPO (or
up to 24 months from the closing of the IPO if the Company extends the period of time to consummate a Business Combination by the full
amount of time), or August 2, 2026, (the “Combination Period”). However, if the Company has not completed a Business Combination
within the Combination Period, the Company will (i) cease all operations except for the purpose of winding up, (ii) as promptly as reasonably
possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the
aggregate amount then on deposit in the trust account, including interest (less up to $
Going Concern Consideration
As of September 30, 2025, the Company had cash of $
The Company raised additional funds through the issuance of a promissory note to support its working capital needs and ongoing efforts to complete a Business Combination. While this financing provides liquidity, it does not eliminate the substantial doubt regarding the Company’s ability to continue as a going concern.
In connection with the Company’s assessment of going concern considerations in accordance with Financial Accounting Standard Board’s Accounting Standards Update (“ASU”) 2014-15, “Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” management has determined that these conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statement does not include any adjustments that might result from the outcome of this uncertainty.
F-7
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying condensed financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
Certain information or footnote disclosures normally included in condensed financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. As such, the information included in these financial statements should be read in conjunction with the Company’s latest audited financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC on March 11, 2025. In the opinion of the Company’s management, these condensed financial statements include all adjustments, which are only of a normal and recurring nature, necessary for a fair statement of the Company’s financial position as of September 30, 2025, and the Company’s results of operations and cash flows for the periods presented. The results of operations included in the financial statements are not necessarily indicative of the results to be expected for the full year ending December 31, 2025.
Emerging Growth Company
The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, (the “Securities Act”), as modified by the Jumpstart Our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.
Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s condensed financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.
Use of Estimates
The preparation of condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.
Making estimates requires management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.
Cash and Cash Equivalents
The Company considers all short-term investments with an original maturity
of three months or less when purchased to be cash equivalents. The Company had a cash balance of $
F-8
Investments Held in Trust Account
The Company’s portfolio of investments held in the Trust Account
is comprised of investments only in U.S. government securities with a maturity of
In comparison, $
Concentration of Credit Risk
Financial instruments that potentially subject the Company to concentrations
of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal Deposit Insurance Corporation
coverage limit of $
Offering Costs
Offering costs consist of legal, accounting, and other costs (including underwriting discounts and commissions) incurred through the balance sheet date that are directly related to the IPO and that were charged to shareholders’ equity upon the completion of the IPO on August 2, 2024.
Warrant Instruments
The Company accounted for the Public and Private Warrants to be issued in connection with the IPO and the Private Placement in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated and classified the warrant instrument under equity treatment at their assigned value.
Net Income (Loss) Per Ordinary Share
The Company complies with accounting and disclosure requirements of
FASB ASC 260, Earnings Per Share. The statements of operations include a presentation of income (loss) per redeemable share and income
(loss) per non-redeemable share following the two-class method of income per share. In order to determine the net income (loss) attributable
to both the redeemable shares and non-redeemable shares, the Company first considered the undistributed income (loss) allocable to both
the redeemable shares and non-redeemable shares and the undistributed income (loss) is calculated using the total net loss less any dividends
paid. The Company then allocated the undistributed income (loss) ratably based on the weighted average number of shares outstanding between
the redeemable and non-redeemable shares. Any remeasurement of the accretion to redemption value of the common shares subject to possible
redemption was considered to be dividends paid to the public shareholders. As of September 30, 2025, the Company did not have any dilutive
securities and other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings
of the Company. As a result, diluted income (loss) per share is the same as basic income (loss) per share for the period presented.
| For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2024 | For the Nine Months Ended September 30, 2025 | For the Period from February 9, 2024 (Inception) Through September 30, 2024 | |||||||||||||
| Net income (loss) | $ | $ | $ | $ | ||||||||||||
| Dividends earned on investment held in Trust Account | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Accretion of temporary equity into redemption value | - | ( | ) | - | ( | ) | ||||||||||
| Net loss including accretion of common stock to redemption value | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
F-9
| For the Three Months Ended September 30, 2025 | For the Three Months Ended September 30, 2024 | |||||||||||||||
| Particulars | Redeemable Shares | Non-Redeemable Shares | Redeemable Shares | Non-Redeemable Shares | ||||||||||||
| Basic and diluted net income/(loss) per share: | ||||||||||||||||
| Weighted-average shares outstanding | ||||||||||||||||
| Ownership percentage | % | % | % | % | ||||||||||||
| Numerators: | ||||||||||||||||
| Allocation of net loss including accretion of temporary equity | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income earned on Trust Account | - | - | ||||||||||||||
| Accretion of temporary equity to redemption value | - | - | - | |||||||||||||
| Allocation of net income/(loss) | ( | ) | ( | ) | ||||||||||||
| Denominators: | ||||||||||||||||
| Weighted-average shares outstanding | ||||||||||||||||
| Basic and diluted net income/(loss) per share | ( | ) | ( | ) | ||||||||||||
| For the Nine Months Ended September 30, 2025 | For the Period from February 9, 2024 (Inception) Through September 30, 2024 | |||||||||||||||
| Particulars | Redeemable Shares | Non-Redeemable Shares | Redeemable Shares | Non-Redeemable Shares | ||||||||||||
| Basic and diluted net income/(loss) per share: | ||||||||||||||||
| Weighted-average shares outstanding | ||||||||||||||||
| Ownership percentage | % | % | % | % | ||||||||||||
| Numerators: | ||||||||||||||||
| Allocation of net loss including accretion of temporary equity | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
| Income earned on Trust Account | - | - | ||||||||||||||
| Accretion of temporary equity to redemption value | - | - | - | |||||||||||||
| Allocation of net income/(loss) | ( | ) | ( | ) | ||||||||||||
| Denominators: | ||||||||||||||||
| Weighted-average shares outstanding | ||||||||||||||||
| Basic and diluted net income/(loss) per share | ( | ) | ( | ) | ||||||||||||
Related Parties
Parties, which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also considered to be related if they are subject to common control or common significant influence.
F-10
Fair Value of Financial Instruments
The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying balance sheet, primarily due to their short-term nature.
The Company applies ASC 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances.
| ● | Level 1-Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement are observable inputs, such as quoted prices in active markets for identical assets or liabilities. |
| ● | Level 2-Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly quoted intervals. |
| ● | Level 3-Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques when little or no market data exists for the assets or liabilities. |
Income Taxes
The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that is included in the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.
ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of September 30, 2025 and December 31, 2024. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position.
There is currently no taxation imposed on income by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income taxes are not reflected in the Company’s condensed financial statements.
F-11
Ordinary Shares Subject to Possible Redemption
The Company accounts for its ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption (if any) is classified as a liability instrument and is measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s ordinary shares features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence of uncertain future events. Accordingly, ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against additional paid in capital and accumulated deficit.
As of September 30, 2025, the ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:
| Public offering proceeds | $ | |||
| Less: | ||||
| Proceeds allocated to Public Warrants | ( | ) | ||
| Allocation of offering costs related to redeemable shares | ( | ) | ||
| Plus: | ||||
| Accretion of carrying value to redemption value | ||||
| Ordinary shares subject to possible redemption | $ | |||
| Over-allotment | ||||
| Plus: | ||||
| Over-allotment proceeds | ||||
| Less: | ||||
| Proceeds allocated to Public Warrants | ( | ) | ||
| Allocation of offering costs related to redeemable shares | ( | ) | ||
| Plus: | ||||
| Accretion of carrying value to redemption value | ||||
| Subsequent measurement of ordinary shares subject to possible redemption (income earned on trust account) | ||||
| Ordinary shares subject to possible redemption, December 31, 2024 | $ | |||
| Plus: | ||||
| Subsequent measurement of ordinary shares subject to possible redemption (income earned on trust account) | ||||
| Ordinary shares subject to possible redemption, September 30, 2025 | $ |
F-12
Recent Accounting Standards
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating officer decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. The ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in this ASU and existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. This standard was effective for the Company starting February 9, 2024 (inception) and did not have a material impact on the Company’s financial statements (see Note 9).
On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBA”). ASC 740, “Income Taxes”, requires the effects of changes in tax laws to be recognized in the period in which the legislation is enacted. The Company is currently evaluating the impact of the new law. However, none of the tax provisions are expected to have a significant impact on the Company’s financial statements.
Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed financial statements.
NOTE 3: INITIAL PUBLIC OFFERING
Pursuant to the IPO, the Company sold
NOTE 4: PRIVATE PLACEMENT
Simultaneously with the consummation of the IPO and the sale of the
Units, the Company consummated the sale of
Each Private Placement Unit entitles the holder thereof to
The Private Placement Units (including the underlying securities) will
not be redeemable, transferable, assignable or salable by the Sponsor until
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NOTE 5: RELATED PARTY TRANSACTIONS
Founder Shares
On March 19, 2024, the Sponsors received
The Sponsors have agreed, subject to limited exceptions, not to transfer, assign or sell any of the Founder Shares until the earlier to occur of: (i) one year following the consummation of our initial Business Combination and (ii) the date on which the Company completes a liquidation, merger, share exchange, reorganization or other similar transaction after an initial Business Combination that results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property.
Private Placement
The Company consummated the sale of
Promissory Note - Related Party
The Sponsor issued an unsecured promissory note to the Company (the
“Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $
Due to Related Party
The Sponsor paid certain formation, operating or deferred offering
costs on behalf of the Company. These amounts are due on demand and non-interest bearing. During the period from February 9, 2024 (inception)
to September 30, 2025, the Sponsor paid $
Administrative Services Agreement
The Company entered into an agreement, commencing on the effective
date of the IPO through the earlier of the Company’s consummation of a Business Combination and its liquidation, to pay an affiliate
of the Sponsor a total of up to $
F-14
Working Capital Loans
In addition, in order to finance transaction costs in connection with
a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s directors and officers may, but are
not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business
Combination, the Company will repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise,
the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does
not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds
held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital
Loans, if any, have not been determined and no written agreements exist with respect to such loans. Up to $
With reference to the above, on May 22, 2025, the Company issued a
convertible promissory note in the principal amount of $
At the Sponsor’s election, all or a portion of the unpaid principal
amount of the Convertible Promissory Note may be converted into private units of the Company at a conversion price of $
As of September 30, 2025, the outstanding balance under the Convertible
Promissory Note was $
NOTE 6: COMMITMENTS AND CONTINGENCIES
Risks and Uncertainties
In February 2022, the Russian Federation and Belarus commenced a military action with the country of Ukraine. As a result of this action, various nations, including the United States, have instituted economic sanctions against the Russian Federation and Belarus. Recently, in October 2023, the military conflict between Israel and militant groups led by Hamas has also caused uncertainty in the global markets. Further, the impact of this action and related sanctions on the world economy is not determinable as of the date of the condensed financial statement, and the specific impact on the Company’s financial condition, results of operations, and cash flows is also not determinable as of the date of these condensed financial statements.
Registration Rights
Pursuant to a registration rights agreement dated on the effectiveness of the Registration Statement on July 31, 2024, the holders of the Founder Shares, Private Placement Units (including securities contained therein), and units (including securities contained therein) that may be issued on conversion of working capital loans or extension loans (and) are entitled to registration rights pursuant to a registration rights agreement signed on the effective date of this offering requiring the Company to register such securities for resale. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company’s register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the Company completion of initial business combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
F-15
Underwriting Agreement
The Company granted the underwriters a 45-day option to purchase up
to
The underwriters were entitled to a cash underwriting discount of $
On September 4, 2024, the underwriters exercised the over-allotment
option in full to purchase
NOTE 7: SHAREHOLDER’S EQUITY
Preferred Shares - The Company is authorized to issue
Class A Ordinary Shares - The Company is authorized to
issue
On September 4, 2024, the underwriters exercised the over-allotment
option in full and as a result, the Company consummated the sale of additional
Class B Ordinary Shares - The Company is authorized to
issue
Warrants
Each Unit consisted of
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If the Company is unable to complete the initial Business Combination within the required time period and the Company will redeem the public shares for the funds held in the trust account, holders of warrants will not receive any of such funds for their warrants and the warrants will expire worthless.
NOTE 8: FAIR VALUE MEASUREMENTS
The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of September 30, 2025, and December 31, 2024, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value.
| As of September 30, 2025 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 3) | |||||||||||||
| Assets: | ||||||||||||||||
| Investment held in Trust Account | $ | $ | $ | — | $ | — | ||||||||||
| As of December 31, 2024 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 3) | |||||||||||||
| Assets: | ||||||||||||||||
| Investment held in Trust Account | $ | $ | $ | — | $ | — | ||||||||||
NOTE 9: SEGMENT INFORMATION
ASC 280, “Segment Reporting,” establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources and assess performance.
When evaluating the Company’s performance and making key decisions regarding resource allocation, the CODM reviews several key metrics, including net income (loss), which is comprised of dividends earned on marketable securities held in trust account and interest from the bank account, offset by general and administrative expenses.
The key measure of segment profit or loss reviewed by the Company’s CODM is net income (loss), which is comprised of dividends earned on marketable securities held in trust account and interest from the bank account, offset by general and administrative expenses. Net income (loss) is reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to complete a Business Combination within the required completion window. The CODM also reviews net income (loss) to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and the budget.
NOTE 10: SUBSEQUENT EVENTS
The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the condensed financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the condensed financial statements.
F-17
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Overview
We are a blank check company incorporated as a Cayman Islands exempted company and incorporated for the purpose of effecting a merger, share exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. While we intend to focus our search on businesses in Asia, we are not limited to a particular industry or geographic region for purposes of consummating an initial business combination. We have not selected any specific business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target. We intend to effectuate our initial business combination using cash from the proceeds of this offering and the private placement of the private units, the proceeds of the sale of our securities in connection with our initial business combination, our shares, debt or a combination of cash, stock and debt. We are a blank check company, incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. We have not selected any business combination target and we have not, nor has anyone on our behalf, initiated any substantive discussions, directly or indirectly, with any business combination target. We intend to effectuate our initial business combination using cash from the proceeds of this offering and the sale of the private placement warrants, our shares, debt or a combination of cash, shares and debt.
Results of Operations
We have neither engaged in any operations nor generated any revenues to date. Since inception, our activities have primarily consisted of organizational efforts and preparations for our Initial Public Offering (“IPO”), which was successfully completed in August 2024. Following the IPO, we have not generated any operating revenues as we are focusing on completing of our initial business combination. After the IPO, we generated non-operating income in the form of interest income on cash and cash equivalents. As a public company, we continue to incur increased expenses related to legal, financial reporting, accounting and auditing compliance, as well as expenses as we conduct due diligence on prospective business combination candidates.
For the three months ended September 30, 2025, we had a net income of $3,612,987, which consists of loss of $163,979 derived from operating costs, offset by income earned on Trust Account and bank account of $3,776,966.
For the three months ended September 30, 2024, we had a net income of $2,230,484, which consists of loss of $339,668 derived from operating costs, offset by income earned on Trust Account and bank account of $2,570,152.
For the nine months ended September 30, 2025, we had a net income of $10,558,941, which consists of loss of $646,950 derived from operating costs, offset by income earned on Trust Account and bank account of $11,205,891.
For the period from February 9, 2024 (inception) through September 30, 2024, we had a net income of $2,105,103, which consists of loss of $465,049 derived from operating costs, offset by income earned on Trust Account and bank account of $2,570,152.
Liquidity and Capital Resources
On August 2, 2024, we consummated our IPO of Units, at $10.00 per Unit, generating gross proceeds of $300,000,000. Simultaneously with the closing of our IPO, we consummated the sale of 759,000 Private Placement Units at a price of $10.00 per Private Placement Unit in a private placement to the Sponsors, generating total gross proceeds of $7,590,000.
2
On September 4, 2024, the underwriters exercised the over-allotment option in full to purchase 4,500,000 Units. As a result, we sold an additional 4,500,000 Units at $10.00 per Unit, generating gross proceeds of $45,000,000. Simultaneously with the closing of the full exercise of the overallotment option, we completed the private sale of an aggregate of 90,000 Private Placement Units, at a purchase price of $10.00 per Private Placement Unit, generating gross proceeds of $900,000.
Transaction costs amounted to $14,634,758, consisting of $5,175,000 of cash underwriting fee, $8,625,000 of deferred underwriting fee and $834,758 of other offering costs.
Following the closing of the IPO and over-allotment option, an amount of $346,725,000 ($10.05 per Unit) from the net proceeds of the sale of the Units in the IPO and the Private Placement was placed in a trust account. The funds held in the Trust Account may be invested in U.S. government securities with a maturity of 185 days or less. We intend to use substantially all of the funds held in the trust account, including any amounts representing interest earned on the trust account, to complete our initial business combination. To the extent that our capital stock or debt is used, in whole or in part, as consideration to complete our initial business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.
On May 22, 2025, the Company issued an unsecured, non-interest bearing convertible promissory note to Sponsor in the principal amount of $1,000,000 to its Sponsor (the “Convertible Promissory Note”) to fund working capital needs. The outstanding principal may be converted into private units of the Company at a conversion price of $10.00 per unit. The number of units to be issued upon conversion is determined by dividing (x) the outstanding principal by (y) $10.00. No fractional units will be issued. If a business combination is not consummated, the note will only be repaid from funds held outside the trust account.
As of September 30, 2025, we had cash of $748,602. We will use these funds primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, structure, negotiate and complete a business combination, and to pay taxes to the extent the dividends earned on the trust account is not sufficient to pay our taxes.
While we do not anticipate the need to raise additional funds immediately to support our operations, the existing working capital deficit indicates that additional funding may be required. If our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial business combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our initial business combination. Moreover, we may need to obtain additional financing either to complete our initial business combination or because we become obligated to redeem a significant number of our public shares upon completion of our initial business combination, in which case we may issue additional securities or incur debt in connection with such business combination.
Related Party Transactions
Founder Shares
On March 19, 2024, the Sponsors received 8,625,000 of the Company’s Class B ordinary shares (“founder shares”) in exchange for $25,000 paid for deferred offering costs borne by the Sponsors. Up to 1,125,000 of such founder shares were subject to forfeiture to the extent that the underwriters’ over-allotment was not exercised in full. On September 4, 2024, the underwriters exercised the over-allotment option in full.
3
The Sponsors have agreed, subject to limited exceptions, not to transfer, assign or sell any of the founder shares until the earlier to occur of: (i) one year following the consummation of our initial Business Combination and (ii) the date on which the Company completes a liquidation, merger, share exchange, reorganization or other similar transaction after an initial Business Combination that results in all of our shareholders having the right to exchange their ordinary shares for cash, securities or other property.
Private Placement
The Company consummated the sale of 759,000 Private Placement Units at a price of $10.00 per Private Placement Unit in a private placement to the Sponsor, generating gross proceeds of $7,590,000 to the Company. On September 4, 2024, with the closing of the full exercise of the over-allotment option, we completed the private sale of an aggregate of additional 90,000 Private Placement Units, at a purchase price of $10.00 per Private Placement Unit, generating gross proceeds of $900,000.
Promissory Note - Related Party
The Sponsor issued an unsecured promissory note to the Company (the “Promissory Note”), pursuant to which the Company may borrow up to an aggregate principal amount of $300,000. The Promissory Note is non-interest bearing and payable on the earlier of (i) December 31, 2024, or (ii) the consummation of the IPO. Since the note has expired as of December 31, 2024, there were no amounts outstanding under the Promissory Note as of September 30, 2025.
Due to Related Party
The Sponsor paid certain formation, operating or deferred offering costs on behalf of the Company. These amounts are due on demand and non-interest bearing. During the period from February 9, 2024 (inception) to September 30, 2025, the Sponsor paid $539,874 on behalf of the Company, of which $25,000 was paid in exchange for the issuance of Founder Shares. As of September 30, 2025, and December 31, 2024, the amount due to the related party was $514,874.
Administrative Services Agreement
The Company entered into an agreement, commencing on the effective date of the IPO through the earlier of the Company’s consummation of a Business Combination and its liquidation, to pay an affiliate of the Sponsor a total of up to $10,000 per month for office space and administrative and support services. During the three and nine months ended September 30, 2025, the Company incurred an administration fee of $30,000 and $90,000, all of which was paid by September 30, 2025. An administration fee of $20,000 was booked during the period from February 9, 2024 (inception) through September 30, 2024.
Working Capital Loans
In addition, in order to finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of the Company’s directors and officers may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes a Business Combination, the Company will repay the Working Capital Loans out of the proceeds of the Trust Account released to the Company. Otherwise, the Working Capital Loans would be repaid only out of funds held outside the Trust Account. In the event that a Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans, but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. Except for the foregoing, the terms of such Working Capital Loans, if any, have not been determined and no written agreements exist with respect to such loans. Up to $1,500,000 of such Working Capital Loans may be convertible into private placement-equivalent Units at a price of $10.00 per Unit at the option of the lender. Such Units would be identical to the Private Placement Units. The terms of such Working Capital Loans by our Sponsor or its affiliates, or our officers and directors, if any, have not been determined and no written agreements exist with respect to such loans.
4
With reference to the above, on May 22, 2025, the Company issued a convertible promissory note in the principal amount of $1,000,000 to AA Mission Acquisition Sponsor Holdco LLC (the “Sponsor”) to fund working capital needs and expenses related to the Company’s initial business combination (the “Convertible Promissory Note”). The Convertible Promissory Note is non-interest bearing and matures upon the closing of a business combination. The note may not be prepaid without the Sponsor’s consent.
At the Sponsor’s election, all or a portion of the unpaid principal amount of the Convertible Promissory Note may be converted into private units of the Company at a conversion price of $10.00 per unit, with each unit consisting of the same securities issued in the Company’s initial public offering. The number of units to be received by the Sponsor in connection with such conversion shall be determined by dividing (x) the sum of the outstanding principal amount payable to the Sponsor by (y) $10.00. No fractional units will be issued upon conversion, and any remaining balance will be paid in cash. If the Company does not consummate a business combination, the Convertible Promissory Note will only be repaid from funds held outside of the trust account, if any.
As of September 30, 2025, the outstanding balance under the Convertible Promissory Note was $1,000,000.
Other Contractual Obligations
Registration Rights
Pursuant to a registration rights agreement dated on the effectiveness of the Registration Statement on July 31, 2024, the holders of the Founder Shares, Private Placement Units (including securities contained therein), and units (including securities contained therein) that may be issued on conversion of working capital loans or extension loans (and) are entitled to registration rights pursuant to a registration rights agreement signed on the effective date of this offering requiring the Company to register such securities for resale. The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company’s register such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the Company completion of initial business combination and rights to require the
Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements.
Underwriting Agreement
The Company granted the underwriters a 45-day option to purchase up to 4,500,000 additional Units to cover over-allotments at the IPO price, less the underwriting discounts and commissions.
The underwriters were entitled to a cash underwriting discount of $0.15 per Unit, or $4,500,000 in the aggregate (or $5,175,000 if the underwriters’ over-allotment option is exercised in full), payable upon the closing of the IPO In addition, the underwriters are entitled to a deferred fee of $0.25 per Unit, or $7,500,000 in the aggregate (or $8,625,000 in the aggregate if the underwriters’ over-allotment option is exercised in full).
On September 4, 2024, the underwriters exercised the over-allotment option in full to purchase 4,500,000 Units. As a result, the Company sold an additional 4,500,000 Units at $10.00 per Unit, generating gross proceeds to the Company of $45,000,000.
5
Critical Accounting Estimates
The preparation of condensed financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have not identified any critical accounting policies or estimates.
Off-Balance Sheet Arrangements; Commitments and Contractual Obligations
As of September 30, 2025, we did not have any off-balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.
JOBS Act
On April 5, 2012, the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, our condensed financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.
Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company,” we choose to rely on such exemptions we may not be required to, among other things: (1) provide an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act; (2) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act; (3) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis); and (4) disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. These exemptions will apply for a period of five years following the completion of this offering or until we are no longer an “emerging growth company,” whichever is earlier.
Recent Accounting Standards
Management does not believe that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed financial statements.
Item 3 - Quantitative and Qualitative Disclosures About Market Risk
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.
6
Item 4 - Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2025. Based upon their evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15 (e) and 15d-15 (e) under the Exchange Act) were effective.
Management’s Report on Internal Controls Over Financial Reporting
This Quarterly Report on Form 10-Q does not include a report of management’s assessment regarding internal control over financial reporting or an attestation report of our independent registered public accounting firm due to a transition period established by rules of the SEC for newly public companies.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
7
PART II — OTHER INFORMATION
Item 1. Legal Proceedings.
None.
Item 1A. Risk Factors.
In addition to the other information set forth in this report, you should carefully consider the factors discussed in “Risk Factors” of our Prospectus dated July 31, 2024, which could materially affect our business, financial condition or future results. There have been no material changes with regard to the risk factors previously disclosed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 11, 2025.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Mine Safety Disclosures.
Not applicable.
Item 5. Other Information.
Item 6. Exhibits.
| Exhibit No. | Description | |
| 31.1 | Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
| 31.2 | Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
| 32 | Certification Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
| 101.INS | Inline XBRL Instance Document. | |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
8
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Date: November 7, 2025 | AA Mission Acquisition Corp. | |
| By: | /s/ Qing Sun | |
| Qing Sun | ||
| Chairman and Chief Executive Officer | ||
| By: | /s/ Shibin Fang | |
| Shibin Fang | ||
| Executive Director and Chief Financial Officer |
9
FAQ
What were AA Mission (AAM) Q3 2025 results?
How much is in AA Mission’s trust account?
When is AA Mission’s deadline to complete a business combination?
What is AA Mission’s liquidity position outside the trust?
Did AA Mission raise additional working capital?
How many shares are outstanding for AA Mission?
Does the filing mention a going concern issue?
