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[10-Q] Axiom Intelligence Acquisition Corp 1 Units Quarterly Earnings Report

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10-Q
Rhea-AI Filing Summary

Axiom Intelligence Acquisition Corp 1 is a Cayman Islands blank‑check company formed to complete a business combination in the European infrastructure industry. The company completed an initial public offering that raised gross proceeds of $200,000,000 and placed $200,181,454 in a U.S. trust invested in cash and money market funds to be used for an initial Business Combination. The trust generated $181,454 of interest during the period, producing net income of $74,168 for the quarter ended June 30, 2025, while year‑to‑date through June 30, 2025 the company recorded a net loss of $10,270 due to pre‑combination costs.

The company had no operating revenues or operations as of June 30, 2025 and held a working capital deficit of $892,615 outside the trust. Related‑party funding and timing issues produced a $2,000,000 share subscription receivable that was settled on August 4, 2025. The capital structure includes 20,000,000 Public Units subject to redemption, 600,000 Private Placement Units, 6,666,667 Founder (Class B) shares, and an $8,000,000 deferred underwriting fee payable upon closing of an initial Business Combination. Management has a 24‑month Combination Period to complete a transaction.

Axiom Intelligence Acquisition Corp 1 è una società blank‑check delle Isole Cayman costituita per completare una combinazione aziendale nel settore delle infrastrutture in Europa. La società ha effettuato un'offerta pubblica iniziale che ha raccolto proventi lordi di $200,000,000 e ha depositato $200,181,454 in un trust statunitense, investito in contanti e fondi del mercato monetario, da utilizzare per una Business Combination iniziale. Il trust ha prodotto $181,454 di interessi nel periodo, generando un utile netto di $74,168 per il trimestre chiuso il 30 giugno 2025, mentre da inizio anno al 30 giugno 2025 la società ha registrato una perdita netta di $10,270 a causa dei costi sostenuti prima della combinazione.

Al 30 giugno 2025 la società non aveva ricavi operativi né attività operative e presentava un deficit di capitale circolante di $892,615 al di fuori del trust. Finanziamenti da parti correlate e problemi temporali hanno generato una creditoria per sottoscrizione azionaria di $2,000,000, saldata il 4 agosto 2025. La struttura del capitale comprende 20,000,000 Public Units soggette a riscatto, 600,000 Private Placement Units, 6,666,667 azioni dei fondatori (Classe B) e una commissione di underwriting differita di $8,000,000 pagabile al completamento della Business Combination iniziale. La direzione dispone di un periodo di 24 mesi per portare a termine la transazione.

Axiom Intelligence Acquisition Corp 1 es una sociedad blank‑check de las Islas Caimán creada para completar una combinación empresarial en el sector de infraestructuras europeo. La compañía realizó una oferta pública inicial que recaudó ingresos brutos de $200,000,000 y colocó $200,181,454 en un fideicomiso en Estados Unidos, invertido en efectivo y fondos del mercado monetario, destinado a una Business Combination inicial. El fideicomiso generó $181,454 de intereses durante el período, produciendo un ingreso neto de $74,168 en el trimestre cerrado al 30 de junio de 2025, mientras que en lo que va del año hasta el 30 de junio de 2025 la compañía registró una pérdida neta de $10,270 debido a costos previos a la combinación.

Al 30 de junio de 2025 la compañía no tenía ingresos operativos ni operaciones y mantenía un déficit de capital de trabajo de $892,615 fuera del fideicomiso. Financiamiento de partes relacionadas y problemas de sincronización originaron una cuenta por cobrar por suscripción de acciones de $2,000,000 que se liquidó el 4 de agosto de 2025. La estructura de capital incluye 20,000,000 Public Units sujetas a redención, 600,000 Private Placement Units, 6,666,667 acciones de los fundadores (Clase B) y una comisión de suscripción diferida de $8,000,000 pagadera al cierre de una combinación empresarial inicial. La dirección dispone de un periodo de 24 meses para completar la transacción.

Axiom Intelligence Acquisition Corp 1는 유럽 인프라 산업에서의 기업 결합을 완료하기 위해 설립된 케이맨제도 소재의 블랭크체크(스팩) 회사입니다. 회사는 총 2억 달러($200,000,000)의 공모를 완료했으며, 초기 사업 결합에 사용하기 위해 현금과 머니마켓펀드에 투자된 $200,181,454을 미국 트러스트 계좌에 예치했습니다. 해당 트러스트는 기간 중 $181,454의 이자를 발생시켰고, 그 결과 2025년 6월 30일로 종료된 분기에는 $74,168의 순이익을 기록했으며, 2025년 6월 30일까지 연초 대비로는 결합 전 비용으로 인해 $10,270의 순손실을 기록했습니다.

회사는 2025년 6월 30일 기준으로 영업수익이나 영업활동이 없었고 트러스트 외부에서 $892,615의 운전자본 부족을 보유하고 있었습니다. 특수관계자 자금지원과 일정 문제로 인해 $2,000,000의 주식청약미수금이 발생했으며, 이는 2025년 8월 4일에 정산되었습니다. 자본 구조는 상환 대상인 20,000,000 Public Units, 600,000 Private Placement Units, 6,666,667명의 설립자(클래스 B) 주식, 그리고 초기 사업 결합 종결 시 지급될 $8,000,000의 이연 인수수수료를 포함합니다. 경영진은 거래를 완료하기 위해 24개월의 기간을 보유하고 있습니다.

Axiom Intelligence Acquisition Corp 1 est une société blank‑check (SPAC) des îles Caïmans créée pour réaliser une combinaison d'entreprises dans le secteur des infrastructures en Europe. La société a mené une offre publique initiale ayant permis de lever des produits bruts de $200,000,000 et a placé $200,181,454 dans une fiducie américaine, investie en liquidités et en fonds monétaires, destinée à une Business Combination initiale. La fiducie a généré $181,454 d'intérêts au cours de la période, produisant un bénéfice net de $74,168 pour le trimestre clos le 30 juin 2025, tandis que l'exercice cumulé jusqu'au 30 juin 2025 fait apparaître une perte nette de $10,270 en raison de frais engagés avant la combinaison.

Au 30 juin 2025, la société n'avait ni revenus opérationnels ni activités opérationnelles et présentait un déficit de fonds de roulement de $892,615 hors fiducie. Des financements de parties liées et des problèmes de calendrier ont entraîné une créance de souscription d'actions de $2,000,000 qui a été réglée le 4 août 2025. La structure du capital comprend 20,000,000 Public Units susceptibles d'être rachetées, 600,000 Private Placement Units, 6,666,667 actions des fondateurs (Classe B) et des frais d'underwriting différés de $8,000,000 payables à la clôture d'une combinaison d'entreprises initiale. La direction dispose d'une période de 24 mois pour finaliser une transaction.

Axiom Intelligence Acquisition Corp 1 ist eine auf den Cayman Islands gegründete Blanko‑Übernahmegesellschaft (SPAC), die zur Durchführung einer Unternehmenszusammenführung im europäischen Infrastrukturbereich gegründet wurde. Die Gesellschaft schloss ein IPO ab, das Bruttoerlöse von $200,000,000 einbrachte, und platzierte $200,181,454 in einem US‑Treuhandkonto, das in Bargeld und Geldmarktfonds angelegt ist und für eine anfängliche Business Combination verwendet werden soll. Der Treuhandfonds erzielte im Berichtszeitraum $181,454 an Zinsen, wodurch für das Quartal zum 30. Juni 2025 ein Nettogewinn von $74,168 entstand; im Jahr bis zum 30. Juni 2025 verzeichnete die Gesellschaft hingegen einen Nettoverlust von $10,270 aufgrund vor der Zusammenführung anfallender Kosten.

Zum 30. Juni 2025 hatte die Gesellschaft weder operative Erlöse noch operative Tätigkeiten und wies außerhalb des Treuhandkontos ein Netto‑Umlaufvermögensdefizit von $892,615 auf. Finanzierungen durch verbundene Parteien und zeitliche Verzögerungen führten zu einer Forderung aus Aktienzeichnung in Höhe von $2,000,000, die am 4. August 2025 beglichen wurde. Die Kapitalstruktur umfasst 20,000,000 Public Units, die der Rücknahme unterliegen, 600,000 Private Placement Units, 6,666,667 Gründeraktien (Klasse B) sowie eine aufgeschobene Underwriting‑Gebühr von $8,000,000, die bei Abschluss einer anfänglichen Business Combination fällig wird. Das Management hat eine Frist von 24 Monaten, um eine Transaktion abzuschließen.

Positive
  • None.
Negative
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Insights

TL;DR: Well‑funded SPAC with $200M trust; limited operating cash outside trust and modest G&A costs create a neutral near‑term financial profile.

The company holds a substantial Trust Account of $200.18M, which secures the economic consideration available to public investors upon a successful Business Combination and produced the quarter's interest income. Operating activity is limited to formation and IPO costs; hence results largely reflect interest income offset by general and administrative expenses. Outside the Trust Account the company reported a working capital deficit of $892,615 as of June 30, 2025 and relied on sponsor funding (a $2.0M subscription receivable that was subsequently settled on August 4, 2025). The $8.0M deferred underwriting fee will reduce net proceeds available upon closing and should be monitored when evaluating transaction economics. Overall impact: neutral (routine SPAC formation).

TL;DR: Structurally standard SPAC with founder share mechanics and sponsor protections; sponsor indemnity and post‑deal dilution merit attention.

The capital structure follows common SPAC conventions: Founder (Class B) shares convertible at closing, 20M Public Units subject to redemption, and 600k Private Placement Units. The Sponsor and directors agreed to limit certain redemption rights and to vote in favor of a Business Combination, which can affect governance and post‑deal ownership. The Sponsor has indemnity obligations for certain third‑party claims but the filing notes the Company has not independently verified the Sponsor's ability to satisfy those obligations, which is a potential risk to public shareholders. Given the $200.18M in trust, the filing is material for potential target negotiations but is not, by itself, a credit or performance event. Impact rating: neutral but materially relevant to deal economics.

Axiom Intelligence Acquisition Corp 1 è una società blank‑check delle Isole Cayman costituita per completare una combinazione aziendale nel settore delle infrastrutture in Europa. La società ha effettuato un'offerta pubblica iniziale che ha raccolto proventi lordi di $200,000,000 e ha depositato $200,181,454 in un trust statunitense, investito in contanti e fondi del mercato monetario, da utilizzare per una Business Combination iniziale. Il trust ha prodotto $181,454 di interessi nel periodo, generando un utile netto di $74,168 per il trimestre chiuso il 30 giugno 2025, mentre da inizio anno al 30 giugno 2025 la società ha registrato una perdita netta di $10,270 a causa dei costi sostenuti prima della combinazione.

Al 30 giugno 2025 la società non aveva ricavi operativi né attività operative e presentava un deficit di capitale circolante di $892,615 al di fuori del trust. Finanziamenti da parti correlate e problemi temporali hanno generato una creditoria per sottoscrizione azionaria di $2,000,000, saldata il 4 agosto 2025. La struttura del capitale comprende 20,000,000 Public Units soggette a riscatto, 600,000 Private Placement Units, 6,666,667 azioni dei fondatori (Classe B) e una commissione di underwriting differita di $8,000,000 pagabile al completamento della Business Combination iniziale. La direzione dispone di un periodo di 24 mesi per portare a termine la transazione.

Axiom Intelligence Acquisition Corp 1 es una sociedad blank‑check de las Islas Caimán creada para completar una combinación empresarial en el sector de infraestructuras europeo. La compañía realizó una oferta pública inicial que recaudó ingresos brutos de $200,000,000 y colocó $200,181,454 en un fideicomiso en Estados Unidos, invertido en efectivo y fondos del mercado monetario, destinado a una Business Combination inicial. El fideicomiso generó $181,454 de intereses durante el período, produciendo un ingreso neto de $74,168 en el trimestre cerrado al 30 de junio de 2025, mientras que en lo que va del año hasta el 30 de junio de 2025 la compañía registró una pérdida neta de $10,270 debido a costos previos a la combinación.

Al 30 de junio de 2025 la compañía no tenía ingresos operativos ni operaciones y mantenía un déficit de capital de trabajo de $892,615 fuera del fideicomiso. Financiamiento de partes relacionadas y problemas de sincronización originaron una cuenta por cobrar por suscripción de acciones de $2,000,000 que se liquidó el 4 de agosto de 2025. La estructura de capital incluye 20,000,000 Public Units sujetas a redención, 600,000 Private Placement Units, 6,666,667 acciones de los fundadores (Clase B) y una comisión de suscripción diferida de $8,000,000 pagadera al cierre de una combinación empresarial inicial. La dirección dispone de un periodo de 24 meses para completar la transacción.

Axiom Intelligence Acquisition Corp 1는 유럽 인프라 산업에서의 기업 결합을 완료하기 위해 설립된 케이맨제도 소재의 블랭크체크(스팩) 회사입니다. 회사는 총 2억 달러($200,000,000)의 공모를 완료했으며, 초기 사업 결합에 사용하기 위해 현금과 머니마켓펀드에 투자된 $200,181,454을 미국 트러스트 계좌에 예치했습니다. 해당 트러스트는 기간 중 $181,454의 이자를 발생시켰고, 그 결과 2025년 6월 30일로 종료된 분기에는 $74,168의 순이익을 기록했으며, 2025년 6월 30일까지 연초 대비로는 결합 전 비용으로 인해 $10,270의 순손실을 기록했습니다.

회사는 2025년 6월 30일 기준으로 영업수익이나 영업활동이 없었고 트러스트 외부에서 $892,615의 운전자본 부족을 보유하고 있었습니다. 특수관계자 자금지원과 일정 문제로 인해 $2,000,000의 주식청약미수금이 발생했으며, 이는 2025년 8월 4일에 정산되었습니다. 자본 구조는 상환 대상인 20,000,000 Public Units, 600,000 Private Placement Units, 6,666,667명의 설립자(클래스 B) 주식, 그리고 초기 사업 결합 종결 시 지급될 $8,000,000의 이연 인수수수료를 포함합니다. 경영진은 거래를 완료하기 위해 24개월의 기간을 보유하고 있습니다.

Axiom Intelligence Acquisition Corp 1 est une société blank‑check (SPAC) des îles Caïmans créée pour réaliser une combinaison d'entreprises dans le secteur des infrastructures en Europe. La société a mené une offre publique initiale ayant permis de lever des produits bruts de $200,000,000 et a placé $200,181,454 dans une fiducie américaine, investie en liquidités et en fonds monétaires, destinée à une Business Combination initiale. La fiducie a généré $181,454 d'intérêts au cours de la période, produisant un bénéfice net de $74,168 pour le trimestre clos le 30 juin 2025, tandis que l'exercice cumulé jusqu'au 30 juin 2025 fait apparaître une perte nette de $10,270 en raison de frais engagés avant la combinaison.

Au 30 juin 2025, la société n'avait ni revenus opérationnels ni activités opérationnelles et présentait un déficit de fonds de roulement de $892,615 hors fiducie. Des financements de parties liées et des problèmes de calendrier ont entraîné une créance de souscription d'actions de $2,000,000 qui a été réglée le 4 août 2025. La structure du capital comprend 20,000,000 Public Units susceptibles d'être rachetées, 600,000 Private Placement Units, 6,666,667 actions des fondateurs (Classe B) et des frais d'underwriting différés de $8,000,000 payables à la clôture d'une combinaison d'entreprises initiale. La direction dispose d'une période de 24 mois pour finaliser une transaction.

Axiom Intelligence Acquisition Corp 1 ist eine auf den Cayman Islands gegründete Blanko‑Übernahmegesellschaft (SPAC), die zur Durchführung einer Unternehmenszusammenführung im europäischen Infrastrukturbereich gegründet wurde. Die Gesellschaft schloss ein IPO ab, das Bruttoerlöse von $200,000,000 einbrachte, und platzierte $200,181,454 in einem US‑Treuhandkonto, das in Bargeld und Geldmarktfonds angelegt ist und für eine anfängliche Business Combination verwendet werden soll. Der Treuhandfonds erzielte im Berichtszeitraum $181,454 an Zinsen, wodurch für das Quartal zum 30. Juni 2025 ein Nettogewinn von $74,168 entstand; im Jahr bis zum 30. Juni 2025 verzeichnete die Gesellschaft hingegen einen Nettoverlust von $10,270 aufgrund vor der Zusammenführung anfallender Kosten.

Zum 30. Juni 2025 hatte die Gesellschaft weder operative Erlöse noch operative Tätigkeiten und wies außerhalb des Treuhandkontos ein Netto‑Umlaufvermögensdefizit von $892,615 auf. Finanzierungen durch verbundene Parteien und zeitliche Verzögerungen führten zu einer Forderung aus Aktienzeichnung in Höhe von $2,000,000, die am 4. August 2025 beglichen wurde. Die Kapitalstruktur umfasst 20,000,000 Public Units, die der Rücknahme unterliegen, 600,000 Private Placement Units, 6,666,667 Gründeraktien (Klasse B) sowie eine aufgeschobene Underwriting‑Gebühr von $8,000,000, die bei Abschluss einer anfänglichen Business Combination fällig wird. Das Management hat eine Frist von 24 Monaten, um eine Transaktion abzuschließen.

 

 

UNITED STATES 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One) 

  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2025

 

or

 

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                    to                       

 

Commission File Number: 001-42708

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

(Exact name of registrant as specified in its charter) 

 

Cayman Islands   98-1849669

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

 

Berkeley Square House, 2nd Floor Berkeley Square

London, United Kingdom

  W1J 6BD
(Address of principal executive offices)   (Zip Code)

 

+44 20 3973 7928

(Registrant’s telephone number, including area code)

 

Not Applicable

(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
Units, each consisting of one Class A Ordinary Share and one Right   AXINU   The Nasdaq Stock Market LLC
Class A Ordinary Shares, par value $0.0001 per share   AXIN   The Nasdaq Stock Market LLC
Rights, each right entitling the holder to receive one-tenth (1/10) of one Class A Ordinary Share   AXINR   The Nasdaq Stock Market LLC

 

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. Yes ☐ No

 

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). Yes ☒ No ☐

 

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
Non-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). Yes   No ☐

 

As of August 12, 2025, there were 20,600,000 Class A Ordinary Shares, par value $0.0001 per share, and 6,666,667 Class B Ordinary Shares, par value $0.0001 per share, of the registrant issued and outstanding.

 

 

 

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

 

FORM 10-Q FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2025 

TABLE OF CONTENTS

 

      Page
PART I – FINANCIAL INFORMATION   1
       
Item 1. Financial Statements   1
       
  Condensed Balance Sheet as of June 30, 2025 (Unaudited)   1
       
  Condensed Statements of Operations for the (i) Three Months Ended June 30, 2025 and (ii) Period from January 30, 2025 (inception) through June 30, 2025 (Unaudited)   2
       
  Condensed Statements of Changes in Shareholders’ Deficit for the (i) Three Months Ended June 30, 2025 and (ii) Period from January 30, 2025 (inception) through June 30, 2025 (Unaudited)   3
       
  Condensed Statement of Cash Flows for the Period from January 30, 2025 (inception) through June 30, 2025 (Unaudited)   4
       
  Notes to Condensed Financial Statements (Unaudited)   5
       
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.   17
       
Item 3. Quantitative and Qualitative Disclosures About Market Risk.   20
       
Item 4. Controls and Procedures.   20
       
PART II – OTHER INFORMATION   21
       
Item 1. Legal Proceedings.   21
       
Item 1A. Risk Factors.   21
       
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.   24
       
Item 3. Defaults Upon Senior Securities.   25
       
Item 4. Mine Safety Disclosures.   25
       
Item 5. Other Information.   25
       
Item 6. Exhibits.   25
       
SIGNATURES   26

 

i

 

 

Unless otherwise stated in this Report (as defined below), or the context otherwise requires, references to:

 

“Administrative Services Agreement” are to the Administrative Services Agreement, dated June 17, 2025, which we entered into with our Sponsor (as defined below);

 

“Amended and Restated Articles” are to our Amended and Restated Memorandum and Articles of Association, as currently in effect;

 

“ASC” are to the FASB (as defined below) Accounting Standards Codification;

 

“ASU” are to the FASB Accounting Standards Update;

 

“Board of Directors” or “Board” are to our board of directors;

 

“Business Combination” are to a merger, capital share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses;

 

“Certifying Officers” are to our Chief Executive Officer and Chief Financial Officer, together;

 

“Class A Ordinary Shares” are to our Class A ordinary shares, par value $0.0001 per share;

 

“Class B Ordinary Shares” are to our Class B ordinary shares, par value $0.0001 per share;

 

 

“CCM” are to Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, a representative of the underwriters in the Initial Public Offering (as defined below);

     
  “Combination Period” are to the 24-month period, from the closing of the Initial Public Offering to June 20, 2027 that we have to consummate an initial Business Combination, or until such earlier liquidation date as our Board may approve; provided that the Combination Period may be extended pursuant to an amendment to the Amended and Restated Articles and consistent with applicable laws, regulations and stock exchange rules;

 

“Company,” “our,” “we” or “us” are to Axiom Intelligence Acquisition Corp 1, a Cayman Islands exempted company;

 

“Continental” are to Continental Stock Transfer & Trust Company, trustee of our Trust Account (as defined below) and rights agent of our Rights (as defined below);

 

“Deferred Fee” are to the additional fee of 4.00% of the gross proceeds of the Initial Public Offering (or $8,000,000) to which the underwriters to the Initial Public Offering are entitled that is payable only upon our completion of the initial Business Combination;

 

“Exchange Act” are to the Securities Exchange Act of 1934, as amended;

 

“FASB” are to the Financial Accounting Standards Board;

 

  “Founder Shares” are to the (i) Class B Ordinary Shares initially purchased by our Sponsor prior to the Initial Public Offering and (ii) Class A Ordinary Shares that will be issued upon the automatic conversion of the Class B Ordinary Shares (x) at the time of our Business Combination as described in the IPO Registration Statement (as defined below) or (y) earlier at the option of the holders thereof, as described in the IPO Registration Statement; for the avoidance of doubt, such Class A Ordinary Shares will not be “Public Shares” (as defined below);
     
  “GAAP” are to the accounting principles generally accepted in the United States of America;

 

“Initial Public Offering” or “IPO” are to the initial public offering that we consummated on June 20, 2025;

 

“Investment Company Act” are to the Investment Company Act of 1940, as amended;

 

ii

 

 

“IPO Registration Statement” are to the Registration Statement on Form S-1 initially filed with the SEC (as defined below) on May 14, 2025, as amended, and declared effective on June 17, 2025 (File No. 333-287279);

 

“JOBS Act” are to the Jumpstart Our Business Startups Act of 2012;

 

“Letter Agreement” are to the Letter Agreement, dated June 17, 2025, which we entered into with our Sponsor and our directors and officers;

 

“Management” or our “Management Team” are to our executive officers and directors;

 

“Nasdaq” are to The Nasdaq Stock Market LLC;

 

“Nasdaq 36-Month Requirement” are to the requirement pursuant to the Nasdaq Rules (as defined below) that a SPAC (as defined below) must complete one or more Business Combinations within 36 months following the effectiveness of its initial public offering registration statement;

 

“Nasdaq Rules” are to the continued listing rules of Nasdaq, as they exist as of the date of this Report;

 

  “Option Units” are to the 2,500,000 units that were purchased by the underwriters of the Initial Public Offering pursuant to the partial exercise of the Over-Allotment Option (as defined below);
     
  “Ordinary Shares” are to the Class A Ordinary Shares and the Class B Ordinary Shares, together our ordinary shares, par value $0.0001 per share;

 

“Over-Allotment Option” are to the 45-day option that the underwriters of the Initial Public Offering had to purchase up to an additional 2,625,000 Option Units to cover over-allotments, if any, pursuant to the Underwriting Agreement (as defined below), which was partially exercised;

 

“Private Placement” are to the private placement of Private Placement Units (as defined below) that occurred simultaneously with the closing of our Initial Public Offering, pursuant to the Private Placement Units Agreements (as defined below);

 

  “Private Placement Rights” are to the rights included within the Private Placement Units purchased by our Sponsor, CCM and Seaport (as defined below) in the Private Placement;
     
  “Private Placement Shares” are to the Class A Ordinary Shares included within the Private Placement Units purchased by our Sponsor, CCM and Seaport in the Private Placement;

 

  “Private Placement Units” are to the units issued to our Sponsor, CCM and Seaport in the Private Placement;
     
  “Private Placement Units Purchase Agreements” are to the (i) Private Placement Units Purchase Agreement, dated June 17, 2025, which we entered into with our Sponsor and (ii) the Private Placement Units Purchase Agreement, dated June 17, 2025, which we entered into with CCM and Seaport, together;

 

  “Public Rights” are to the rights sold as part of the Public Units (as defined below), which grant the holder the right to receive one-tenth (1/10) of one Class A Ordinary Share upon the consummation of the Business Combination;

 

  “Public Shareholders” are to the holders of our Public Shares, including our Sponsor and Management Team to the extent our Sponsor and/or the members of our Management Team purchase Public Shares, provided that our Sponsor and each member of our Management Team’s status as a “Public Shareholder” will only exist with respect to such Public Shares;
     
  “Public Shares” are to the Class A Ordinary Shares sold as part of the Public Units  in our Initial Public Offering (whether they were purchased in our Initial Public Offering or thereafter in the open market);

 

  “Public Units” are to the units sold in our Initial Public Offering, which consist of one Public Share and one Public Right;

 

iii

 

 

“Registration Rights Agreement” are to the Registration Rights Agreement, dated June 17, 2025, which we entered into with the Sponsor and the holders party thereto;

 

“Report” are to this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025;

 

“Rights” are to the Private Placement Rights and the Public Rights, together;

 

“Sarbanes-Oxley Act” are to the Sarbanes-Oxley Act of 2002;

 

“Seaport” are to Seaport Global Securities LLC, a representative of the underwriters in the Initial Public Offering;

 

“SEC” are to the U.S. Securities and Exchange Commission;

 

“Securities Act” are to the Securities Act of 1933, as amended;

 

“SPAC” are to a special purpose acquisition company;

 

“Sponsor” are to Axiom Intelligence Holdings 1, LLC, a Delaware limited liability company;

 

“Trust Account” are to the U.S.-based trust account in which an amount of $200,000,000 from the net proceeds of the sale of the Public Units in the Initial Public Offering and the Private Placement Units in the Private Placement was placed following the closing of the Initial Public Offering;

 

“Underwriting Agreement” are to the underwriting agreement, dated June 17, 2025, which we entered into with CCM and Seaport, as representatives of the several underwriters of the Initial Public Offering;

 

“Units” are to the Private Placement Units and the Public Units, together; and

 

“Working Capital Loans” are to funds that, in order to provide working capital or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor or certain of our directors and officers may, but are not obligated to, loan us.

 

iv

 

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements.

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

CONDENSED BALANCE SHEET

  JUNE 30, 2025

(UNAUDITED)

 

Assets    
Current assets    
Prepaid expenses  $210,132 
Total Current Assets   210,132 
      
Long term prepaid insurance   101,685 
Cash and investments held in Trust Account   200,181,454 
Total Assets  $200,493,271 
      
Liabilities, Class A Ordinary Shares Subject to Possible Redemption, and Shareholders’ Deficit     
Current liabilities     
Accrued offering costs  $75,000 
Accrued expenses   71,646 
Advances from Sponsor   656,101 
IPO Promissory Note – related party   300,000 
Total Current Liabilities   1,102,747 
      
Deferred underwriting fee   8,000,000 
Total Liabilities   9,102,747 
      
Commitments and Contingencies (Note 6)   
 
 
      
Class A Ordinary Shares subject to possible redemption, 20,000,000 shares at redemption value of $10.01 per share   200,181,454 
      
Shareholders’ Deficit     
Preference shares, $0.0001 par value; 5,000,000 shares authorized; none issued or outstanding   
 
Class A Ordinary Shares, $0.0001 par value; 500,000,000 shares authorized;600,000 issued or outstanding (excluding 20,000,000 shares subject to possible redemption)   60 
Class B Ordinary Shares, $0.0001 par value; 50,000,000 shares authorized; 6,666,667 shares issued and outstanding   667 
Share subscription receivable   (2,000,000)
Additional paid-in capital   
 
Accumulated deficit   (6,791,657)
Total Shareholders’ Deficit   (8,790,930)
Total Liabilities, Class A Ordinary Shares Subject to Possible Redemption, and Shareholders’ Deficit  $200,493,271 

 

The accompanying notes are an integral part of the unaudited condensed financial statements.

 

1

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

Condensed Statements of Operations

(UNAUDITED)

 

   For the
Three Months
Ended
June 30,
  

For the

Period from

January 30, 2025 (Inception) Through
June 30,

 
   2025   2025 
General and administrative expenses  $107,286   $191,724 
Loss from operations   (107,286)   (191,724)
           
Other income:          
Interest earned and accrued on cash and investments held in Trust Account   181,454    181,454 
           
Net income (loss)  $74,168   $(10,270)
           
Weighted average shares outstanding, Class A Ordinary Shares   2,288,889    1,364,238 
           
Basic and diluted net loss per share, Class A Ordinary Shares  $0.01   $(0.00)
           
Weighted average shares outstanding, Class B Ordinary Shares   5,925,926    5,888,521 
           
Basic and diluted net loss per share, Class B Ordinary Shares  $0.01   $(0.00)

 

The accompanying notes are an integral part of the unaudited condensed financial statements.

 

2

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND

FOR THE PERIOD FROM JANUARY 30, 2025 (INCEPTION) THROUGH JUNE 30, 2025

(UNAUDITED)

 

   Class A
Ordinary Shares
   Class B
Ordinary Shares
   Share
Subscription
   Additional
Paid-in
   Accumulated   Total
Shareholders’
Equity
 
   Shares   Amount   Shares   Amount   Receivable   Capital   Deficit   (Deficit) 
Balance — January 30, 2025      $       $       $    $    $ 
                                         
Class B Ordinary Shares issued to Sponsor           6,708,333    671        24,329        25,000 
                                         
Net loss                           (84,438)   (84,438)
                                         
Balance – March 31, 2025 (unaudited)           6,708,333    671        24,329    (84,438)   (59,438) 
                                         
Sale of 600,000 Private Placement Units   600,000    60            (2,000,000)   5,999,940        4,000,000 
                                         
Fair value of rights included in Public Units                       3,160,000        3,160,000 
                                         
Allocated value of transaction costs to Class A Ordinary Shares                       (217,356)       (217,356)
                                         
Forfeiture of Founder Shares           (41,666)   (4)       4         
                                         
Accretion for Class A Ordinary Shares to redemption amount                       (8,966,917)   (6,781,387)   (15,748,304)
                                         
Net income                            74,168    74,168 
                                         
Balance – June 30, 2025 (unaudited)   600,000   $60    6,666,667   $667   $(2,000,000)  $   $(6,791,657)  $(8,790,930)

 

The accompanying notes are an integral part of the unaudited condensed financial statements.

 

3

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE PERIOD FROM JANUARY 30, 2025 (INCEPTION) THROUGH JUNE 30, 2025

(UNAUDITED)

 

Cash Flows from Operating Activities:    
Net loss  $(10,270)
Adjustments to reconcile net loss to net cash used in operating activities:     
General and administrative expenses paid via IPO Promissory Note – related party   35,894 
General and administrative expenses paid via advances from Sponsor   93,601 
Interest earned and accrued on cash and investments held in Trust Account   (181,454)
Changes in operating assets and liabilities:     
Prepaid expenses   (9,417)
Accrued expenses   71,646 
Net cash used in operating activities   
 
      
Cash Flows from Investing Activities:     
Investments held in Trust Account   (200,000,000)
Net cash used in investing activities   (200,000,000)
      
Cash Flows from Financing Activities:     
Proceeds from sale of Public Units, net of underwriting discounts paid   196,000,000 
Proceeds from sale of Private Placement Units   6,000,000 
Share subscription receivable   (2,000,000)
Net cash provided by financing activities   200,000,000 
      
Net Change in Cash   
 
Cash – Beginning of period   
 
Cash – End of period  $
 
      
Noncash investing and financing activities:     
Deferred offering costs included in accrued offering costs  $75,000 
Deferred offering costs paid through IPO Promissory Note – related party  $264,106 
Deferred offering costs paid by Sponsor in exchange for the issuance of Class B Ordinary Shares  $25,000 
General and administrative expenses paid through IPO Promissory Note – related party  $35,894 
General and administrative expenses paid through advances from Sponsor  $93,601 
Prepaid expenses paid through advances from Sponsor  $302,400 
Forfeiture of Founder Shares  $4 
Deferred underwriting fee  $8,000,000 

 

The accompanying notes are an integral part of the unaudited condensed financial statements. 

 

4

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED) 

 

NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS

 

Axiom Intelligence Acquisition Corp 1 (the “Company”) is a blank check company incorporated as a Cayman Islands exempted corporation on January 30, 2025. The Company was incorporated for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar Business Combination with one or more businesses (the “Business Combination”). As of June 30, 2025, the Company had not selected any specific Business Combination target. The Company intends to pursue an initial Business Combination in the European infrastructure industry.

 

As of June 30, 2025, the Company had not commenced any operations. All activity for the period from January 30, 2025 (inception) through June 30, 2025 relates to the Company’s formation and the initial public offering (as defined below) and identifying and evaluating prospective acquisition candidates and activities in connection with the Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company generates non-operating income in the form of interest income from the proceeds derived from the Initial Public Offering. The Company has selected December 31 as its fiscal year end.

 

The Registration Statement on Form S-1 for the Initial Public Offering, initially filed with the U.S. Securities and Exchange Commission (the “SEC”) on May 14, 2025, as amended (File No. 333-287279), was declared effective on June 17, 2025 (the “IPO Registration Statement”). On June 20, 2025, the Company consummated the initial public offering of 20,000,000 units (the “Public Units”), which included the partial exercise of the Over-Allotment Option (as defined in Note 6) in the amount of 2,500,000 units (“Option Units”), at $10.00 per Public Unit, generating gross proceeds of $200,000,000 (the “Initial Public Offering”), as discussed in Note 3. Each Public Unit consists of one Class A ordinary share, par value $0.0001 per share, of the Company (the “Class A Ordinary Shares” and with respect to the Class A Ordinary Shares included in the Public Units, the “Public Shares”) and one right to receive one-tenth of one Class A Ordinary Share upon the consummation of an initial Business Combination (the “Public Rights”).

 

Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of an aggregate of 600,000 units (the “Private Placement Units” and together with the Public Units, the “Units”) to (i) the Company’s sponsor, Axiom Intelligence Holdings 1, LLC (the “Sponsor”), (ii) Cohen &Company Capital Markets, a division of J.V.B. Financial Group, LLC, a representative of the underwriters (“CCM”) and (iii) Seaport Global Securities LLC (“Seaport”), a representative of the underwriters, at a price of $10.00 per Private Placement Unit, or $6,000,000 in the aggregate (the “Private Placement”), as discussed in Note 4. Of the 600,000 Private Placement Units, the Sponsor purchased 400,000 Private Placement Units, CCM purchased 160,000 Private Placement Units, and Seaport purchased 40,000 Private Placement Units. Each Private Placement Unit consists of one Class A Ordinary Share (the “Private Placement Shares”) and one right to receive one-tenth of one Class A Ordinary Share upon the consummation of an initial Business Combination (the “Private Placement Rights”, and together with the Public Rights, the “Rights”).

 

Transaction costs amounted to $12,624,206, consisting of $4,000,000 of cash underwriting fee, $8,000,000 of Deferred Fee (as defined in Note 6), and $624,206 of other offering costs.

 

The Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net balance in the Trust Account (as defined below) (excluding the amount of Deferred Fee held and taxes payable on the income earned on the Trust Account) at the time of the signing an agreement to enter into a Business Combination. However, the Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). There is no assurance that the Company will be able to successfully effect a Business Combination.

 

Following the closing of the Initial Public Offering, on June 20, 2025, an amount of $200,000,000 ($10.00 per Unit) from the net proceeds of the Initial Public Offering and the Private Placement was placed in a trust account (the “Trust Account”), with Continental Stock Transfer & Trust Company (“Continental”), acting as trustee. The funds, initially held in cash, including demand deposit accounts at a bank, may only be invested in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act, which invest only in direct U.S. government treasury obligations; the holding of these assets in this form is intended to be temporary and for the sole purpose of facilitating the intended Business Combination. To mitigate the risk that it might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that the Company holds investments in the Trust Account, the Company may, at any time (based on the Company’s management’s (“Management”) ongoing assessment of all factors related to the potential status under the Investment Company Act) instruct the trustee to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest bearing demand deposit account at a bank. Except with respect to amounts withdrawn to pay taxes, if any, the proceeds from the Initial Public Offering and the Private Placement will not be released from the Trust Account until the earliest of (i) the completion of the initial Business Combination, (ii) the redemption of the Public Shares if the Company is unable to complete the initial Business Combination by June 20, 2027, 24 months from the closing of the Initial Public Offering, or by such earlier liquidation date as the Company’s board of directors “Board”) may approve (the “Combination Period”), subject to applicable law, or (iii) the redemption of the Public Shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association (the “Amended and Restated Articles”) to (A) modify the substance or timing of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Public Shares if the Company has not consummated an initial Business Combination within the Combination Period or (B) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity. The proceeds deposited in the Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims of the holders of the Public Shares (the “Public Shareholders”).

 

5

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

The Company will provide the Public Shareholders (excluding the Sponsor, officers and directors to the extent they acquire Public Shares) with the opportunity to redeem all or a portion of their Public Shares upon the completion of the initial Business Combination either (i) in connection with a general meeting called to approve the initial Business Combination or (ii) without a shareholder vote by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a proposed initial Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The Public Shareholders are entitled to redeem their Public Shares at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of the initial Business Combination, including interest earned on the funds held in the Trust Account (less taxes payable, if any), divided by the number of then outstanding Public Shares, subject to the limitations. The amount in the Trust Account was $10.00 per Public Share as of June 30, 2025.

 

The Ordinary Shares subject to redemption were recorded at a redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from Equity.”

 

The Company has only the duration of the Combination Period to complete the initial Business Combination. However, if the Company is unable to complete its initial Business Combination within the Combination Period, the Company will 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 earned on the funds held in the Trust Account (less taxes payable, if any, and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding Public Shares, which redemption will constitute full and complete payment for the Public Shares and completely extinguish Public Shareholders’ rights as shareholders (including the right to receive further liquidation or other distributions, if any), subject to the Company’s obligations under Cayman Islands law to provide for claims of creditors and subject to the other requirements of applicable law.

 

The Sponsor and the Company’s officers and directors have entered into a letter agreement with the Company, dated June 17, 2025 (the “Letter Agreement”), pursuant to which they have agreed to (i) waive their redemption rights with respect to their Founder Shares (as defined in Note 5), Private Placement Shares and Public Shares in connection with (x) the completion of the initial Business Combination or an earlier redemption in connection with the commencement of the procedures to consummate the initial Business Combination if the Company determines it is desirable to facilitate the completion of the initial Business Combination and (y) a shareholder vote to approve an amendment to the Amended and Restated Articles to modify (1) the substance or timing of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Public Shares if the Company has not consummated an initial Business Combination within the Combination Period or (2) any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity; (ii) waive their rights to liquidating distributions from the Trust Account with respect to their Founder Shares and Private Placement Shares if the Company fails to complete the initial Business Combination within the Combination Period, although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if the Company fails to complete the initial Business Combination within the Combination Period and to liquidating distributions from assets outside the Trust Account; and (iii) vote any Founder Shares and Private Placement Shares held by them and any Public Shares purchased during or after the Initial Public Offering (including in open market and privately-negotiated transactions) in favor of the initial Business Combination.

 

The Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per Public Share and (ii) the actual amount per Public Share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per share due to reductions in the value of the Trust Account assets, less taxes payable, provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). However, the Company has not asked the Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and the Company believes that the Sponsor’s only assets are securities of the Company. Therefore, the Company cannot provide any assurance that the Sponsor would be able to satisfy those obligations.

 

6

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

Risks and Uncertainties

 

The Company’s ability to complete an initial Business Combination may be adversely affected by various factors, many of which are beyond the Company’s control. The Company’s ability to consummate an initial Business Combination could be impacted by, among other things, changes in laws or regulations, downturns in the financial markets or in economic conditions, inflation, fluctuations in interest rates, increases in tariffs, supply chain disruptions, declines in consumer confidence and spending, public health considerations, and geopolitical instability, such as the military conflicts in Ukraine and the Middle East. The Company cannot at this time predict the likelihood of one or more of the above events, their duration or magnitude or the extent to which they may negatively impact the Company’s ability to complete an initial Business Combination. 

 

Liquidity and Capital Resources

 

The Company’s liquidity needs up to June 30, 2025 had been satisfied through the loan under the IPO Promissory Note (as defined in Note 5), an unsecured promissory note from the Sponsor of up to $300,000 (see Note 5). As of June 30, 2025, the Company had no cash and had a working capital deficit of $892,615.

 

On June 20, 2025, in connection with the closing of the Private Placement, the Sponsor expected to deposit $2,000,000 into the Company’s bank account. Due to the timing of funds and the bank account opening process, these funds were not deposited into the Company’s bank account at such time and remained in the Sponsor’s bank account as of June 30, 2025. The Company has accounted for the amount due as a share subscription receivable within shareholders’ deficit. On August 4, 2025, the Sponsor settled the outstanding $2,000,000 share subscription receivable and deposited $997,258 into the Company’s operating account and settled the outstanding IPO Promissory Note of $300,000 and advances from the Sponsor of $702,742 (see Note 10).

 

In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor or an affiliate of the Sponsor, or certain of the Company’s officers and directors 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 would repay such Working Capital Loans at that time. Up to $1,500,000 of such Working Capital Loans may be converted into units of the post-Business Combination entity at a price of $10.00 per unit. Such units would be identical to the Private Placement Units. As of June 30, 2025, the Company had no borrowings under the Working Capital Loans.

 

In connection with the Company’s assessment of going concern considerations in accordance with FASB ASC Topic 204-50, “Presentation of Financial Statements - Going Concern,” the Company does not believe it will need to raise additional funds in order to meet the expenditures required for operating its business. However, if the estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, the Company may have insufficient funds available to operate its business prior to the initial Business Combination. Management has determined that since the Company received the Private Placement funds from the Sponsor (see Note 5), which are included as a share subscription receivable on the accompanying unaudited condensed balance sheet, it has sufficient access to funds to finance the working capital needs of the Company for one year from the date of issuance of the accompanying unaudited condensed financial statements.

 

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in 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. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of Management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

 

The accompanying unaudited condensed financial statements should be read in conjunction with the IPO Registration Statement, as well as the Company’s Current Report on Form 8-K, as filed with the SEC on June 26, 2025. The interim results for the three months ended June 30, 2025 and for the period from January 30, 2025 (inception) through June 30, 2025 are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future periods.

  

7

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

Emerging Growth Company Status

 

The Company is an “emerging growth company,” as defined in Section 2(a) of 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 of 2002, 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 Securities Exchange Act of 1934, as amended (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 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 accompanying unaudited condensed financial statements with another public company that is neither an emerging growth company nor an emerging growth company that 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 the accompanying unaudited 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 accompanying unaudited condensed financial statements.

 

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 accompanying unaudited condensed 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 no cash or cash equivalents as of June 30, 2025.

 

Cash and Investments Held in Trust Account

 

As of June 30, 2025, the assets held in the Trust Account, amounting to $200,181,454 were held in cash and money market funds.

 

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 $250,000. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company’s financial condition, results of operations, and cash flows.

 

Offering Costs

 

The Company complies with the requirements of FASB ASC Topic 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering.” Offering costs consist principally of professional and registration fees that are related to the Initial Public Offering. FASB ASC Topic 470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components. The Company applies this guidance to allocate Initial Public Offering proceeds from the Public Units between Public Shares and Public Rights, using the residual method by allocating Initial Public Offering proceeds first to the assigned value of the Public Rights and then to the Public Shares. Offering costs allocated to the Public Shares were charged to temporary equity, and offering costs allocated to the Public Rights and the Private Placement Rights were charged to shareholders’ deficit as Public Rights. Private Placement Rights, after Management’s evaluation, were accounted for under equity treatment.

 

8

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

Fair Value of Financial Instruments

 

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC Topic 820, “Fair Value Measurements and Disclosures,” approximates the carrying amounts represented in the accompanying unaudited condensed balance sheets, primarily due to its short-term nature.

 

Income Taxes

 

The Company accounts for income taxes under FASB ASC Topic 740, “Income Taxes” (“ASC 740”), which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. 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. Management determined that the Cayman Islands is the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of June 30, 2025, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

 

The Company is considered to be an exempted Cayman Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented.

 

Rights

 

The Company accounted for the Rights issued in connection with the Initial Public Offering 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 Rights under equity treatment at their assigned values.

 

Net Income (Loss) per Ordinary Share

 

The Company complies with accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” Income and losses are shared pro rata to the shares. Net income (loss) per Ordinary Share is computed by dividing net income (loss) by the weighted average number of Ordinary Shares outstanding for the period. Accretion associated with the redeemable Ordinary Shares is excluded from income (loss) per Ordinary Share as the redemption value approximates fair value.

 

The accompanying unaudited condensed statements of operations include a presentation of income (loss) per share for Ordinary Shares (as defined in Note 5) subject to possible redemption in a manner similar to the two-class method of income (loss) per share. Net income (loss) per Ordinary Share, basic and diluted, for redeemable Class A Ordinary Shares is calculated by dividing the interest/dividend earned on the Trust Account by the weighted average number of redeemable Class A Ordinary Shares outstanding since original issuance. Net income (loss) per share, basic and diluted, for non-redeemable Ordinary Shares is calculated by dividing the net income (loss), adjusted for income attributable to redeemable Class A Ordinary Shares, by the weighted average number of non-redeemable Ordinary Shares outstanding for the period. Non-redeemable Ordinary Shares include the Founder Shares, as these Founder Shares do not have any redemption features and do not participate in the income earned on the Trust Account.

 

9

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

The following table reflects the calculation of basic and diluted net income (loss) per Ordinary Share:

 

  

For the Three Months Ended

  

For the Period from
January 30,

2025
(Inception) Through

 
  June 30,
2025
   June 30,
2025
 
   Class A   Class B   Class A   Class B 
   Ordinary
Shares
   Ordinary
Shares
   Ordinary
Shares
   Ordinary
Shares
 
Basic and diluted net income (loss) per Ordinary Share                
Numerator:                
Allocation of net income (loss), as adjusted  $20,665   $53,503   $(1,932)  $(8,338)
                     
Denominator:                    
Basic and diluted weighted average Ordinary Shares outstanding   2,288,889    5,925,926    1,364,238    5,888,521 
Basic and diluted net income (loss) per Ordinary Share  $0.01   $0.01   $(0.00)  $(0.00)

 

Class A Ordinary Shares Subject to Possible Redemption

 

The Public Shares contain a redemption feature that allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if there is a shareholder vote or tender offer in connection with the initial Business Combination. In accordance with FASB ASC Topic 480-10-S99, “Distinguishing Liabilities from Equity”, the Company classifies Public Shares subject to possible redemption outside of permanent equity as the redemption provisions are not solely within the control of the Company. The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption value. The change in the carrying value of redeemable shares will result in charges against additional paid-in capital (to the extent available) and accumulated deficit. Accordingly, as of June 30, 2025, Class A Ordinary Shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the accompanying unaudited condensed balance sheet. As of June 30, 2025, the Class A Ordinary Shares subject to possible redemption reflected in the accompanying unaudited condensed balance sheet are reconciled in the following table:

 

Gross proceeds  $200,000,000 
Less:     
Proceeds allocated to Public Rights   (3,160,000)
Class A Ordinary Shares issuance costs   (12,406,850)
Plus:     
Remeasurement of carrying value to redemption value   15,748,304 
Class A Ordinary Shares subject to possible redemption, June 30, 2025  $200,181,454 

 

Recent Accounting Pronouncements

 

In November 2023, the FASB issued Accounting Standards Update (“ASU”) Topic 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). The amendments in ASU 2023-07 require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. ASU 2023-07 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 FASB ASC Topic 280, “Segment Reporting,” (“ASC 280”) in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in ASU 2023-07 and existing segment disclosures in ASC 280. ASU 2023-07 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. The Company adopted ASU 2023-07 on January 30, 2025 (inception). 

 

Management does not believe that any other recently issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s condensed unaudited financial statements.

 

10

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

NOTE 3. INITIAL PUBLIC OFFERING

 

In the Initial Public Offering on June 20, 2025, the Company sold 20,000,000 Public Units, which included the partial exercise by the underwriters of their Over-Allotment Option in the amount of 2,500,000 Option Units, at a price of $10.00 per Public Unit. Each Public Unit had a price of $10.00 and consists of one Public Share and one Public Right, which grants its holder the right to receive one tenth (1/10) of a Class A Ordinary Share upon the consummation of an initial Business Combination.

 

NOTE 4. PRIVATE PLACEMENT

 

Simultaneously with the closing of the Initial Public Offering, the Sponsor, CCM and Seaport purchased an aggregate of 600,000 Private Placement Units at a price of $10.00 per Private Placement Unit in the Private Placement. Each Unit consists of one Private Placement Share and one Private Placement Right to receive one tenth (1/10) of one Class A Ordinary Share upon the consummation of an initial Business Combination. Of those 600,000 Private Placement Units, the Sponsor purchased 400,000 Private Placement Units, CCM purchased 160,000 Private Placement Units, and Seaport purchased 40,000 Private Placement Units. The Private Placement Units are identical to the Public Units, subject to certain limited exceptions.

 

If the Initial Business Combination is not completed within the Combination Period, the proceeds from the sale of the Private Placement Units held in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law).

  

NOTE 5. RELATED PARTY TRANSACTIONS

 

Founder Shares

 

On January 30, 2025, the Sponsor made a capital contribution of $25,000, or approximately $0.004 per share, for which the Company issued 5,750,000 of the Company’s Class B ordinary shares, par value $0.0001 per share (the “Class B Ordinary Shares”, and together with the Class A Ordinary Shares, the “Ordinary Shares”), to the Sponsor (such shares, the “Founder Shares”). On May 29, 2025, the Company capitalized US$95.8333 standing to the credit of its share premium account and applied such sum on the Sponsor’s behalf towards paying up in full (as to the full par value of US$0.0001 per share) an aggregate of 958,333 unissued Class B Ordinary Shares, which were allotted and issued to the Sponsor. Up to 875,000 of the Founder Shares were subject to forfeiture by the Sponsor for no consideration depending on the extent to which the Over-Allotment Option was exercised. On June 20, 2025, the underwriters partially exercised the Over-Allotment Option and forfeited the unexercised balance. As a result of the partial exercise and the forfeiture of the Over-Allotment Option by the underwriters, 833,334 Founder Shares are no longer subject to forfeiture and 41,666 Founder Shares were forfeited, resulting in the Sponsor holding 6,666,667 Founder Shares.

 

On June 16, 2025, the Sponsor granted membership interests equivalent to an aggregate of 150,000 Founder Shares to the three independent directors of the Company in exchange for their services as independent directors through the initial Business Combination. The Founder Shares, represented by such membership interests, will remain with the Sponsor if the holder of such membership interests is no longer serving the Company prior to the initial Business Combination. The membership interest assignment of the Founder Shares to the holders of such interests are in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, share-based compensation associated with equity-classified awards is measured at fair value upon the assignment date. The total fair value of the 150,000 Founder Shares represented by such membership interests assigned to the holders of such interests on June 16, 2025 was $236,250 or $1.575 per Founder Share. The Company established the initial fair value Founder Shares on June 16, 2025, the date of the grant agreement, using a calculation prepared by a third-party valuation team, which takes into consideration the market adjustment of 16.0%, a risk-free rate of 4.15% and a stock price of $9.84. The Founder Shares are classified as “Level 3” at the measurement date due to the use of unobservable inputs, and other risk factors (see Note 8). The membership interests were assigned subject to a performance condition (i.e., providing services through Business Combination). Share-based compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number of membership interests that ultimately vest times the assignment date fair value per share (unless subsequently modified) less the amount initially received for the assignment of the membership interests. As of June 30, 2025, the Company determined that the initial Business Combination is not considered probable and therefore no compensation expense has been recognized.

 

The Founder Shares are designated as Class B Ordinary Shares and, except as described below, are identical to the Public Shares, and holders of Founder Shares have the same shareholder rights as Public Shareholders, except that (i) the Founder Shares are subject to certain transfer restrictions, as described in more detail below, (ii) the Founder Shares are entitled to registration rights; (iii) the Sponsor, officers and directors have entered into the Letter Agreement with the Company, pursuant to which they have agreed to many limitations on the Founder Shares (see Note 1), (iv) the Founder Shares are automatically convertible into Class A Ordinary Shares in connection with the consummation of the initial Business Combination or earlier at the option of the holder on a one-for-one basis, subject to adjustment as described herein and in the Company’s amended and restated memorandum and articles of association, and (v) prior to the closing of the initial Business Combination, only holders of the Class B Ordinary Shares are entitled to vote on (x) the appointment and removal of directors or (y) continuing the company in a jurisdiction outside the Cayman Islands (including any special resolution required to amend the Company’s constitutional documents or to adopt new constitutional documents, in each case, as a result of our approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands).

 

11

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

Promissory Note — Related Party

 

The Sponsor agreed to loan the Company an aggregate of up to $300,000 to be used for a portion of the expenses of the Initial Public Offering pursuant to an unsecured promissory note (the “IPO Promissory Note”). The loan was non-interest bearing, unsecured and due at the earlier of December 31, 2025 or the closing of the Initial Public Offering. As of June 30, 2025, the Company had $300,000 outstanding under the IPO Promissory Note, which was due on demand. Borrowings under the IPO Promissory Note are no longer available. On August 4, 2025, the Company fully settled the $300,000 borrowed under the IPO Promissory Note (see Note 10).

 

Advances from Sponsor

 

Advances from Sponsor represents the amounts owed by the Company to the Sponsor in excess of the $300,000 principal amount of the IPO Promissory Note. As of June 30, 2025, advances from Sponsor amounted to $656,101. On August 4, 2025, the Company fully settled the $656,101 borrowed under the advances from Sponsor (see Note 10).

 

Administrative Services Agreement

 

The Company entered into an agreement with the Sponsor, commencing on June 17, 2025 through the earlier of the Company’s consummation of an initial Business Combination and its liquidation, to pay the Sponsor an aggregate of $10,000 per month for office space, utilities and secretarial and administrative support services (the “Administrative Services Agreement”). As of June 30, 2025, $497 has been accrued under the Administrative Services Agreement under accrued expenses in the accompanying unaudited condensed balance sheet.

 

Related Party Loans

 

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 officers and directors may, but are not obligated to, loan the Company Working Capital Loans as may be required . If the Company completes a Business Combination, the Company would repay the Working Capital Loans. In the event that a Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay the Working Capital Loans, but no proceeds from the Trust Account would be used to repay the Working Capital Loans. Up to $1,500,000 of such Working Capital Loans may be convertible into units of the post-Business Combination entity at a price of $10.00 per unit at the option of the lender. Such units would be identical to the Private Placement Units. As of June 30, 2025, no such Working Capital Loans were outstanding.

 

Share Subscription Receivable

 

On June 20, 2025, in connection with the closing of the Private Placement, the Sponsor expected to deposit $2,000,000 into the Company’s bank account. Due to the timing of funds and the bank account opening process, these funds were not deposited into the Company’s bank account at such time and remained in the Sponsor’s bank account as of June 30, 2025. The Company has accounted for the amount due as a share subscription receivable within shareholders’ deficit.

 

Subsequent to June 20, 2025, the following has been deducted from the share subscription receivable:

 

repayment of the $300,000 IPO Promissory Note; and

 

repayment of the $702,742 of advances from the Sponsor.

 

The remaining approximate $997,258 will be utilized for working capital purposes. On August 4, 2025, the Sponsor settled the outstanding $2,000,000 share subscription receivable and deposited $997,258 in the Company’s bank account after repayment of the $300,000 IPO Promissory Note and $656,101 advances from the Sponsor outstanding as of June 30, 2025 and an additional advance of $46,641 from Sponsor for the period from July 1, 2025 to July 31, 2025 (see Note 10).

 

12

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

NOTE 6. COMMITMENTS AND CONTINGENCIES

 

Registration Rights

 

The holders of (i) Founder Shares, (ii) Private Placement Units (and their underlying securities) and Units that may be issued upon conversion of working capital loans (and their underlying securities), if any, and (iii) any Class A Ordinary Shares issuable upon conversion of the Founder Shares and any Class A Ordinary Shares held by the holder of the Founder Shares at the completion of the Initial Public Offering or acquired prior to or in connection with the initial Business Combination, are entitled to registration rights pursuant to a registration rights agreement signed on the effective date of the IPO Registration Statement. These holders will be entitled to make up to three demands, excluding short form demands, and have piggyback registration rights. The underwriters may only make a demand on one occasion and only during the five-year period beginning on the effective date of the Initial Public Offering. In addition, the underwriters may participate in a piggyback registration only during the seven-year period beginning on the effective date of the Initial Public Offering. The Company will bear the expenses incurred in connection with the filing of any such registration statements.

 

Underwriting Agreement

 

The underwriters had a 45-day option from the date of the Initial Public Offering to purchase up to an additional 2,625,000 Option Units to cover over-allotments, if any (the “Over-Allotment Option”). On June 20, 2025, the underwriters partially exercised their Over-Allotment Option, purchasing 2,500,000 Option Units and forfeiting the remaining unexercised balance of 125,000 Option Units.

 

The underwriters were entitled to a cash underwriting discount of 2.00% of the gross proceeds of the Initial Public Offering, or $4,000,000 in the aggregate, which was paid upon the closing of the Initial Public Offering. Additionally, the underwriters are entitled to a deferred underwriting discount of 4.00% of the gross proceeds of the Initial Public Offering, or $8,000,000, payable upon the closing of an initial Business Combination, but such deferred underwriting discount shall be due solely on amounts remaining in the Trust Account following all properly submitted shareholder redemptions in connection with the consummation of our initial Business Combination (the “Deferred Fee”).

 

NOTE 7. SHAREHOLDERS’ DEFICIT

 

Preference Shares

 

The Company is authorized to issue a total of 5,000,000 preference shares at par value of $0.0001 each. As of June 30, 2025, there were no preference shares issued or outstanding.

 

Class A Ordinary Shares

 

The Company is authorized to issue a total of 500,000,000 Class A Ordinary Shares at par value of $0.0001 each. As of June 30, 2025, there were 600,000 Class A Ordinary Shares issued or outstanding, excluding 20,000,000 Public Shares subject to possible redemption.

 

Class B Ordinary Shares

 

The Company is authorized to issue a total of 50,000,000 Class B Ordinary Shares at par value of $0.0001 each. As of June 30, 2025, there were 6,666,667 Class B Ordinary Shares issued and outstanding.

 

The Founder Shares will automatically convert into Class A Ordinary Shares in connection with the consummation of the initial Business Combination or earlier at the option of the holder on a one-for-one basis, subject to adjustment for any share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like. In the case that additional Class A Ordinary Shares, or any other equity-linked securities, are issued or deemed issued in excess of the amounts sold in the Initial Public Offering and related to or in connection with the closing of the initial Business Combination, the ratio at which Class B Ordinary Shares convert into Class A Ordinary Shares will be adjusted (unless the holders of a majority of the outstanding Class B Ordinary Shares agree to waive such adjustment with respect to any such issuance or deemed issuance) so that the number of Class A Ordinary Shares issuable upon conversion of all Class B Ordinary Shares will equal, in the aggregate, 25% of the sum of (i) the total number of shares outstanding upon the completion of the Initial Public Offering (including any Class A Ordinary Shares issued pursuant to the Over-Allotment Option and excluding the Class A Ordinary Shares underlying the Private Placement Units and the Class A Ordinary Shares underlying the Private Placement Rights), plus (ii) all Class A Ordinary Shares and equity-linked securities issued or deemed issued, in connection with the closing of the initial Business Combination (excluding any shares or equity-linked securities issued, or to be issued, to any seller in the initial Business Combination and any private placement-equivalent units issued to our Sponsor or any of its affiliates or to officers or directors upon conversion of Working Capital Loans) minus (iii) any redemptions of Public Shares by Public Shareholders in connection with an initial Business Combination or certain amendments to our Amended and Restated Articles prior to an initial Business Combination; provided that such conversion of Founder Shares will never occur on a less than one-for-one basis.

 

13

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

Holders of the Ordinary Shares are entitled to one vote for each share held on all matters to be voted on by shareholders. Unless specified in the Amended and Restated Articles or as required by the Companies Act (As Revised) of the Cayman Islands or stock exchange rules, an ordinary resolution under Cayman Islands law and the Amended and Restated Articles, which requires the affirmative vote of at least a majority of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting of the Company is generally required to approve any matter voted on by the Company’s shareholders. Approval of certain actions requires a special resolution under Cayman Islands law, which (except as specified below) requires the affirmative vote of at least two-thirds of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting, and pursuant to the Amended and Restated Articles, such actions include amending the Amended and Restated Articles and approving a statutory merger or consolidation with another company. There is no cumulative voting with respect to the appointment of directors, meaning, following the initial Business Combination, the holders of more than 50% of the Ordinary Shares voted for the appointment of directors can elect all of the directors. Prior to the consummation of the initial Business Combination, only holders of the Class B Ordinary Shares (i) have the right to vote on the appointment and removal of directors and (ii) are entitled to vote on continuing the Company in a jurisdiction outside the Cayman Islands (including any special resolution required to amend the constitutional documents or to adopt new constitutional documents, in each case, as a result of the Company approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands). Holders of Class A Ordinary Shares are not entitled to vote on these matters during such time. These provisions of the Amended and Restated Articles may only be amended if approved by a special resolution passed by the affirmative vote of at least 90% (or, where such amendment is proposed in respect of the consummation of the initial Business Combination, two-thirds) of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting of the Company.

 

Rights

 

Except in cases where the Company is not the surviving company in a Business Combination, each holder of a Right will automatically receive one tenth (1/10) of one Class A Ordinary Share upon consummation of the initial Business Combination. In the event the Company is not the surviving Company upon completion of the initial Business Combination, each holder of a Right will be required to affirmatively convert its Rights in order to receive the one tenth (1/10) of one Class A Ordinary Share underlying each Right upon consummation of the Business Combination. The Company will not issue fractional shares in connection with an exchange of Rights. Fractional shares will either be rounded down to the nearest whole share or otherwise addressed in accordance with the applicable provisions of Cayman Islands law. As a result, rights holders must hold Rights in multiples of 10 in order to receive Class A Ordinary Shares for all of their Rights upon closing of a Business Combination. If the Company is unable to complete an initial Business Combination within the Combination Period and the Company redeems the Public Shares for the funds held in the Trust Account, holders of Rights will not receive any of such funds for their Rights and the Share Rights will expire worthless.

 

NOTE 8. FAIR VALUE MEASUREMENTS 

 

The fair value of the Company’s financial assets and liabilities reflects Management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

 

  Level 1:   Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.
     
  Level 2:   Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.
     
  Level 3:   Unobservable inputs based on assessment of the assumptions that market participants would use in pricing the asset or liability.

 

The following table presents information about the Company’s assets that are measured at fair value as of June 30, 2025 and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

 

   Level   June 30,
2025
 
Assets:        
Cash and investments held in Trust Account   1   $200,181,454 

 

14

 

 

AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

  

The fair value of the Public Rights issued in the Initial Public Offering is $3,160,000, or $0.158 per Public Right. The Public Rights issued in the Initial Public Offering have been classified within shareholders’ deficit and will not require remeasurement after issuance. The following table presents the quantitative information regarding market assumptions used in the “Level 3” valuation of the Public Rights issued in the Initial Public Offering:

 

   June 20,
2025
 
Unit price  $10.06 
Share price  $9.90 
Share rights fraction   1/10
Pre-adjusted value per Share Right  $0.99 
Market adjustment(1)   16.0%

 

(1)Market adjustment reflects additional factors not fully captured by low volatility selection, which may include likelihood of a Business Combination occurring, market perception of lack of available or suitable targets, or possible post-acquisition decline of share price prior to the beginning of the exercise period. The adjustment is determined by comparing traded Public Right prices to simulated model outputs. The market adjustment was determined by calibrating traded Public Rights prices as of the valuation dates.

 

 NOTE 9. SEGMENT INFORMATION

 

ASC 280 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 that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by a company’s CODM, or group, in deciding how to allocate resources and assess performance.

 

The Company’s CODM has been identified as the Chief Financial Officer, who reviews the assets, operating results, and financial metrics for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, Management has determined that there is only one reportable segment.

 

The CODM assesses performance for the single segment and decides how to allocate resources based on net income (loss) that also is reported on the accompanying unaudited condensed statements of operations as net income (loss). The measure of segment assets is reported on the accompanying unaudited condensed balance sheet as total assets. When evaluating the Company’s performance and making key decisions regarding resource allocation the CODM reviews several key metrics, which include the following:

 

   June 30,
2025
 
Cash and investments held in Trust Account  $200,181,454 

 

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AXIOM INTELLIGENCE ACQUISITION CORP 1

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

 

   For the Three Months Ended June 30,
2025
   For the Period from
January 30,
2025 (Inception) through 
June 30,
2025
 
General and administrative expenses  $107,286   $191,724 
Interest earned and accrued on cash and investments held in Trust Account  $181,454   $181,454 

 

The CODM reviews interest earned and accrued on cash and investments held in Trust Account to measure and monitor shareholder value and determine the most effective strategy of investment with the Trust Account funds while maintaining compliance with the Trust Agreement.

 

General and administrative expenses are reviewed and monitored by the CODM to manage and forecast cash to ensure enough capital is available to complete a business combination or similar transaction within the Business Combination period. The CODM also reviews general and administrative expenses to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. General and administrative expenses, as reported on the accompanying unaudited condensed statements of operations, are the significant segment expenses provided to the CODM on a regular basis.

 

All other segment items included in net income or loss are reported on the accompanying unaudited condensed statements of operations and described within their respective disclosures.

 

NOTE 10. SUBSEQUENT EVENTS 

 

The Company evaluated subsequent events and transactions that occurred after the condensed balance sheet date up to the date that the accompanying unaudited condensed financial statements were issued. Based upon this review, other than as described below, the Company did not identify any subsequent events that would have required adjustment or disclosure in the accompanying unaudited condensed financial statements.

 

On August 4, 2025, the Sponsor settled the outstanding $2,000,000 share subscription receivable and deposited $997,258 in the Company’s bank account after repayment of the $300,000 IPO Promissory Note and $656,101 of advances from the Sponsor outstanding as of June 30, 2025 and an additional advance of $46,641 from the Sponsor for the period from July 1, 2025 to July 31, 2025.

 

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

Cautionary Note Regarding Forward-Looking Statements

 

All statements other than statements of historical fact included in this Report including, without limitation, statements under this Item regarding our financial position, business strategy and the plans and objectives of Management for future operations, are forward-looking statements. When used in this Report, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend” and similar expressions, as they relate to us or our Management, identify forward-looking statements. Such forward-looking statements are based on the beliefs of our Management, as well as assumptions made by, and information currently available to, our Management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors detailed in our filings with the SEC. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by this paragraph.

 

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the unaudited condensed financial statements and the notes thereto included in this Report under “Item 1. Financial Statements”.

 

Overview

 

We are a blank check company incorporated in the Cayman Islands on January 30, 2025, formed for the purpose of effecting a Business Combination with one or more businesses. We intend to effectuate our Business Combination using cash derived from the proceeds of the Initial Public Offering and the sale of the Private Placement Units, our securities, debt or a combination of cash, securities and debt.

 

We expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure you that our plans to complete a Business Combination will be successful.

 

We may seek to extend the Combination Period consistent with applicable laws, regulations and stock exchange rules by amending our Amended and Restated Articles. Any such amendment would require the approval of our Public Shareholders, who will be provided the opportunity to redeem all or a portion of their Public Shares in connection with the vote on such approval. Such redemptions will decrease the amount held in our Trust Account and our capitalization, and may affect our ability to maintain our listing on Nasdaq. In addition, the Nasdaq Rules currently require SPACs (such as us) to complete their initial Business Combination in accordance with the Nasdaq 36-Month Requirement. If we do not meet the Nasdaq 36-Month Requirement, our securities will likely be subject to a suspension of trading and delisting from Nasdaq.

 

Recent Developments

 

On June 20, 2025, in connection with the closing of the Private Placement, the Sponsor expected to deposit $2,000,000 into our bank account. Due to the timing of funds and the bank account opening process, these funds were not deposited into our bank account at such time and remained in the Sponsor’s bank account as of June 30, 2025. On August 4, 2025, the Sponsor settled the outstanding $2,000,000 share subscription receivable and deposited $997,258 in our bank account after repayment of the $300,000 IPO Promissory Note and $656,101 advances from the Sponsor outstanding as of June 30, 2025 and an additional advance of $46,641from the Sponsor for the period from July 1, 2025 to July 31, 2025.

 

Results of Operations

 

We have neither engaged in any operations nor generated any revenues to date. Our only activities since January 30, 2025 (inception) through June 30, 2025 have been (i) organizational activities and (ii) activities relating to (x) the Initial Public Offering and (y) identifying and evaluating prospective acquisition candidates and activities in connection with the initial Business Combination. We will not generate any operating revenues until after completion of our initial Business Combination. We have generated non-operating income in the form of interest income on investments held in the Trust Account after the Initial Public Offering. We expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance, among other things), as well as for due diligence expenses.

 

For the three months ended June 30, 2025, we had net income of $74,168 which consists of interest earned and accrued on cash and investments held in the Trust Account of $181,454, offset by general and administrative expenses of $107,286.

 

For the period from January 30, 2025 (inception) through June 30, 2025, we had a net loss of $10,270 which consists of general and administrative expenses of $191,724, offset by interest earned and accrued on cash and investments held in the Trust Account of $181,454.

 

Liquidity and Capital Resources

 

Until the consummation of the Initial Public Offering, our only source of liquidity was an initial purchase of Founder Shares by the Sponsor and loans from the Sponsor pursuant to the IPO Promissory Note. On June 20, 2025, we consummated the Initial Public Offering of 20,000,000 Public Units, which included the partial exercise of the Over-Allotment Option in the amount of 2,500,000 Option Units, at $10.00 per Public Unit, generating gross proceeds of $200,000,000. Simultaneously with the closing of the Initial Public Offering, we consummated the sale of 600,000 Private Placement Units at a price of $10.00 per Private Placement Unit, in a private placement to the Sponsor, CCM and Seaport, generating gross proceeds of $6,000,000. Of those 600,000 Private Placement Units, the Sponsor purchased 400,000 Private Placement Units, CCM purchased 160,000 Private Placement Units, and Seaport purchased 40,000 Private Placement Units.

 

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Following the closing of the Initial Public Offering, including the partial exercise of the Over-Allotment Option, and the Private Placement, a total of $200,000,000 was placed in the Trust Account. We incurred $12,624,206 of transaction costs, consisting of $4,000,000 of cash underwriting fee, $8,000,000 of Deferred Fee, and $624,206 of other offering costs.

 

For the period from January 30, 2025 (inception) through June 30, 2025, cash used in operating activities was $0. Net loss of $10,270 was affected by interest earned and accrued on cash and investments held in the Trust Account of $181,454, payment of general and administrative expenses through the IPO Promissory Note of $35,894, and payment of general and administrative expenses through advances from the Sponsor of $93,601. Changes in operating assets and liabilities provided $62,209 of cash for operating activities.  

 

As of June 30, 2025, we had cash and investments held in the Trust Account of $200,181,454 (including approximately $181,454 of interest earned and accrued) consisting of cash and money market funds. We may withdraw interest from the Trust Account to pay taxes, if any. We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (less income taxes payable), to complete our Business Combination. To the extent that our share capital or debt is used, in whole or in part, as consideration to complete our 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. To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that we hold investments in the Trust Account, we may, at any time, (based on our Management Team’s ongoing assessment of all factors related to our potential status under the Investment Company Act) instruct the trustee to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest-bearing demand deposit account at a bank.

 

As of June 30, 2025, we had no cash, working capital deficit of $892,615 and share subscription receivable of $2,000,000. We use the funds held outside the Trust Account 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, and structure, negotiate and complete a Business Combination.

 

The Sponsor loaned us an aggregate of up to $300,000 to be used for a portion of the expenses of the Initial Public Offering pursuant to the IPO Promissory Note. The loan was non-interest bearing, unsecured and due at the earlier of December 31, 2025 or the closing of the Initial Public Offering. As of June 30, 2025, the Company had $300,000 outstanding under the IPO Promissory Note, which was due on demand. Borrowings under the IPO Promissory Note are no longer available. On August 4, 2025, the Company fully settled the $300,000 borrowed under the IPO Promissory Note.

 

On June 20, 2025, in connection with the closing of the Private Placement, the Sponsor expected to deposit $2,000,000 into tour bank account. Due to the timing of funds and the bank account opening process, these funds were not deposited into our bank account at such time and remained in the Sponsor’s bank account as of June 30, 2025. On August 4, 2025, the Sponsor settled the outstanding $2,000,000 share subscription receivable and deposited $997,258 into our operating account and settled the outstanding IPO Promissory Note of $300,000 and advances from the Sponsor of $702,742.

 

In order to fund working capital deficiencies or finance transaction costs in connection with a Business Combination, the Sponsor, or certain of our officers and directors or their affiliates may, but are not obligated to, loan us Working Capital Loans as may be required. If we complete a Business Combination, we would repay such Working Capital Loan. In the event that a Business Combination does not close, we may use a portion of the working capital held outside the Trust Account to repay such Working Capital Loan, but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such Working Capital Loans may be converted into units of the post-Business Combination entity at a price of $10.00 per unit. The units would be identical to the Private Placement Units. As of June 30, 2025, the Company had no borrowings under the Working Capital Loans.

 

We do not believe we will need to raise additional funds in order to meet the expenditures required for operating our business. However, if our estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a 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 Business Combination. Moreover, we may need to obtain additional financing either to complete our Business Combination or because we become obligated to redeem a significant number of our Public Shares upon consummation of our Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination.

 

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Off-Balance Sheet Arrangements

 

We have no obligations, assets or liabilities that would be considered off-balance sheet arrangements as of June 30, 2025. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

 

Contractual Obligations

  

Administrative Services Agreement

 

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than the Administrative Services Agreement, pursuant to which we pay the Sponsor an aggregate of $10,000 per month for office space, utilities and secretarial and administrative support services. We began incurring these fees on June 17, 2025 and will continue to incur these fees monthly until the earlier of the completion of the Business Combination and our liquidation. As of June 30, 2025, there has been $497 accrued under the Administrative Services Agreement.

 

Underwriting Agreement

 

The underwriters of the Initial Public Offering had a 45-day option from the date of the Initial Public Offering to purchase up to an additional 2,625,000 Option Units to cover over-allotments, if any. On June 20, 2025, the underwriters partially exercised their Over-Allotment Option, purchasing 2,500,000 Option Units and forfeiting the remaining unexercised balance of 125,000 Option Units.

 

The underwriters were entitled to a cash underwriting discount of 2.00% of the gross proceeds of the Initial Public Offering, or $4,000,000 in the aggregate, which was paid upon the closing of the Initial Public Offering. Additionally, the underwriters are entitled to a Deferred Fee of 4.00% of the gross proceeds of the Initial Public Offering, or $8,000,000, payable upon the closing of an initial Business Combination, but such Deferred Fee shall be due solely on amounts remaining in the Trust Account following all properly submitted shareholder redemptions in connection with the consummation of our initial Business Combination.

 

Critical Accounting Estimates and Policies

 

The preparation of the unaudited condensed financial statements and related disclosures included in this Report under Item 1. “Financial Statements” in conformity with GAAP 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 unaudited condensed financial statements, and income and expenses during the periods reported. Making estimates requires Management to exercise significant judgement. 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 unaudited condensed financial statements included in this Report under Item 1. “Financial Statements”, which Management considered in formulating its estimates, could change in the near term due to one or more future confirming events. Accordingly, the actual results could materially differ from those estimates. As of June 30, 2025, we did not have any critical accounting estimates to be disclosed.

 

19

 

 

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.

  

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this Report, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information is accumulated and communicated to our Management, including our Certifying Officers, as appropriate, to allow timely decisions regarding required disclosure. Under the supervision and with the participation of our Management, including our Certifying Officers, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were effective as of June 30, 2025.

 

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

 

Changes in Internal Control over Financial Reporting

 

Not applicable.

 

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PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

To the knowledge of our Management, there is no material litigation currently pending or contemplated against us, any of our officers or directors in their capacity as such or against any of our property.

 

Item 1A. Risk Factors.

 

As a smaller reporting company under Rule 12b-2 of the Exchange Act, we are not required to include risk factors in this Report. For additional risks relating to our operations, other than as set forth below, see the section titled “Risk Factors” contained in our IPO Registration Statement. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risks could arise that may also affect our ability to consummate an initial Business Combination. We may disclose changes to such risk factors or disclose additional risk factors from time to time in our future filings with the SEC.

 

Changes in international trade policies, tariffs and treaties affecting imports and exports may have a material adverse effect on our search for an initial Business Combination target or the performance or business prospects of a post-Business Combination company.

 

There have recently been significant changes to international trade policies and tariffs affecting imports and exports. Any significant increases in tariffs on goods or materials or other changes in trade policy could negatively affect our search for a target and/or our ability to complete our initial Business Combination.

 

Recently, the United States has implemented a range of new tariffs and increases to existing tariffs.  In response to the tariffs announced by the United States, other countries have imposed, are considering imposing, and may in the future impose new or increased tariffs on certain exports from the United States. There is currently significant uncertainty about the future relationship between the United States and other countries with respect to trade policies, taxes, government regulations and tariffs. and we cannot predict whether, and to what extent, current tariffs will continue or trade policies will change in the future.

 

Tariffs, or the threat of tariffs or increased tariffs, could have a significant negative impact on certain businesses (either due to domestic businesses’ reliance on imported goods or dependence on access to foreign markets, or foreign businesses’ reliance on sales into the United States). In addition, retaliatory tariffs could have a significant negative impact on foreign businesses that rely on imports from the United States, and domestic businesses that rely on exporting goods internationally. These tariffs and threats of tariffs and other potential trade policy changes could negatively affect the attractiveness of certain initial Business Combination targets, or lead to material adverse effects on a post-Business Combination company. Among other things, historical financial performance of companies affected by trade policies and/or tariffs may not provide useful guidance as to the future performance of such companies, because future financial performance of those companies may be materially affected by new U.S. tariffs or foreign retaliatory tariffs, or other changes to trade policies. The business prospects of a particular target for a Business Combination could change even after we enter into a Business Combination agreement, as a result of tariffs or the threat of tariffs that may have a material impact on that target’s business, and it may be costly or impractical for us to terminate that Business Combination agreement.  These factors could affect our selection of a Business Combination target.  

 

We may not be able to adequately address the risks presented by these tariffs or other potential trade policy changes. As a result, we may deem it costly, impractical or risky to complete an initial Business Combination with a particular target or with a target in a particular industry or from a particular country. Consequently, the pool of potential target companies may be reduced, which could impair our ability to identify a suitable target and to complete an initial Business Combination.  If we complete an initial Business Combination with such a target, the post-Business Combination company’s operations and financial results could be adversely affected as a result of tariffs or changes to trade policies, which may cause the market value of the securities of the post-Business Combination company to decline.

 

We may seek to extend the Combination Period, which could reduce the amount held in our Trust Account and have adverse effects on our Company.

 

If we are unable to consummate our initial Business Combination on or before June 20, 2027, we may seek shareholder approval to extend the Combination Period by amending our Amended and Restated Articles. In such event, our Public Shareholders will be provided the opportunity to have all or a portion of their Public Shares redeemed. Any redemptions will reduce the amount held in our Trust Account, the effect of which may adversely affect our ability to consummate our initial Business Combination and may also impair our ability to maintain our Nasdaq listing.

 

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We anticipate that our securities will be suspended from trading on Nasdaq and delisted if we do not consummate our initial Business Combination by June 17, 2028. Any trading suspension or delisting could have a material adverse effect on the trading of our securities and may adversely affect our ability to consummate an initial Business Combination.

 

Our IPO Registration Statement was declared effective by the SEC on June 17, 2025 and our securities are currently listed on the Global Market tier of Nasdaq. Pursuant to our Amended and Restated Articles, we have until June 20, 2027 to consummate our initial Business Combination.

 

Under the Nasdaq Rules, a SPAC’s Nasdaq-listed securities will be immediately suspended from trading if the SPAC does not meet the Nasdaq 36-Month Requirement, and Nasdaq will, at such point, commence delisting procedures. Although a SPAC can request a hearing before the hearing panel of Nasdaq (the “Hearing Panel”), the scope of the Hearing Panel’s review is limited. If a SPAC completes a Business Combination after receiving a delisting determination by the staff of the Listing Qualifications Department of Nasdaq (a “Staff Delisting Determination”) and/or demonstrates compliance with all applicable initial listing requirements, the combined company can apply to list its securities on Nasdaq pursuant to the normal application review process. The Nasdaq Rules contain a list of deficiencies that would immediately result in a Staff Delisting Determination, which includes noncompliance with the Nasdaq 36-Month Requirement.

 

Accordingly, were we to amend our Amended and Restated Articles to extend the date by which we are permitted to consummate our initial Business Combination, we would still need to consummate our initial Business Combination on or prior to June 17, 2028 in order to avoid a suspension of our securities from trading on and delisting from Nasdaq. If Nasdaq were to suspend our securities from trading and delist our securities, our securities could potentially be quoted on an over-the-counter market. Even if our securities are then quoted on an over-the-counter market, our Nasdaq suspension and delisting could have significant material adverse consequences, including:

 

making our securities appear to be less attractive to potential target companies than the securities of an exchange listed SPAC;

 

limited availability of market quotations for our securities;

 

reduced liquidity for our securities;
   
the possibility that our Class A Ordinary Shares would be deemed “penny stock,” which will require brokers trading in our Class A Ordinary Shares to adhere to more stringent rules and possibly result in a reduced level of trading activity in the secondary trading market for our securities;
   
limited news and analyst coverage; and
   
decreased ability to issue additional securities or obtain additional financing in the future.

 

In addition, if our securities are delisted from Nasdaq, trading in our securities, and offers and sales of our securities by us, may be subject to state securities regulation and additional compliance costs.

 

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The share price of the post-Business Combination company may be less than the Redemption Price (as defined below) of our Public Shares.

 

Each Public Unit sold in our Initial Public Offering at an offering price of $10.00 per Public Unit consisted of one Public Share and one Public Right. Of the proceeds we received from the Initial Public Offering and the Private Placement, $200,000,000 was placed in our Trust Account. We will provide our Public Shareholders the opportunity to redeem all or a portion of their Public Shares in connection with the completion of our initial Business Combination, and potentially upon the occurrence of certain other events prior to our initial Business Combination. We expect that the pro rata redemption price in any redemption will be approximately $10.00 per Public Share as of June 30, 2024 (before taxes payable, if any, and such amount, the “Redemption Price”), representing a pro rata portion of our Trust Account without taking into account any interest or other income earned on such funds (less any withdrawals from such interest or income for taxes paid), although the Redemption Price may be less in certain circumstances. As a result, Public Shareholders who own our Public Shares on a redemption date can anticipate receiving the Redemption Price in connection with a redemption for each Public Share that they choose to redeem.

 

There can be no assurance that, after our initial Business Combination, our Public Shareholders would be able to sell their shares in the post-Business Combination company for the Redemption Price, or any higher price. We have not, as yet, identified a target and are therefore unable to provide any assurances as to its financial condition, business prospects or potential risks. It is therefore possible that the share price of the post-Business Combination company may decline below the Redemption Price. In recent years, the share prices of many post-Business Combination companies have fallen following a Business Combination. As a result, if our Public Shareholders continue to hold shares in the post-Business Combination company following our initial Business Combination, we cannot assure our shareholders that the trading price of such shares will be greater than the Redemption Price.

 

Certain agreements related to the Initial Public Offering may be amended, or their provisions waived, without shareholder approval.

 

Certain of the agreements related to the Initial Public Offering to which we are a party may be amended, or their provisions waived, without shareholder approval. Such agreements include the (i) Underwriting Agreement, (ii) the Letter Agreement, (iii) the Registration Rights Agreement, (iii) the Private Placement Units Purchase Agreements and (iv) the Administrative Services Agreement. These agreements contain various provisions that our Public Shareholders might deem to be material. For example, our Letter Agreement and the Underwriting Agreement contain certain lock-up provisions with respect to the Founder Shares and other securities held by our Sponsor, officers and directors, subject to certain exceptions. Amendments or waivers to such agreements would require the consent of the applicable parties thereto and, in certain cases, the consent of the underwriters of the Initial Public Offering. Any such modification, such as an amendment to shorten lock-up restrictions, may benefit our Sponsor, officers and/or directors. Any such amendments would not require approval from our shareholders, may result in the completion of our initial Business Combination that may not otherwise have been possible, and may have an adverse effect on the value of an investment in our securities. For example, although we would not amend lock-up provisions to permit securities held by Sponsor to be freely sold prior to our initial Business Combination, we may amend such provisions to permit them to be freely sold after the Business Combination earlier than they would otherwise be permitted, which may have an adverse effect on the price of our securities.

 

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Market conditions, economic uncertainty or downturns could adversely affect our business, financial condition, operating results and our ability to consummate a Business Combination.

 

In recent years, the United States and other markets have experienced cyclical or episodic downturns, and worldwide economic conditions remain uncertain, including as a result of the COVID-19 pandemic, supply chain disruptions, the Ukraine-Russia conflict, conflict in the Middle East, instability in the U.S. and global banking systems, rising fuel prices, increasing interest rates or foreign exchange rates and high inflation and the possibility of a recession. A significant downturn in economic conditions may make it more difficult for us to consummate a Business Combination.

 

We cannot predict the timing, strength, or duration of any future economic slowdown or any subsequent recovery generally, or in any industry. If the conditions in the general economy and the markets in which we operate worsen from present levels, our business, financial condition, operating results and our ability to consummate a Business Combination could be adversely affected.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

Unregistered Sales of Equity Securities

 

Simultaneously with the closing of the Initial Public Offering and pursuant to the Private Placement Units Purchase Agreements, we completed the sale of an aggregate of 600,000 Private Placement Units to the Sponsor, CCM and Seaport in the Private Placement at a purchase price of $10.00 per Private Placement Unit, generating gross proceeds to us of $6,000,000. Of those 600,000 Private Placement Units, the Sponsor purchased 400,000 Private Placement Units, CCM purchased 160,000 Private Placement Units, and Seaport purchased 40,000 Private Placement Units. The Private Placement Units (and underlying securities) are identical to the Public Units, except as otherwise disclosed in the IPO Registration Statement. No underwriting discounts or commissions were paid with respect to such sale. The issuance of the Private Placement Units was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act.

 

Use of Proceeds

 

On June 20, 2025, we consummated our Initial Public Offering of 20,000,000 Public Units, which included the partial exercise of the Over-Allotment Option in the amount of 2,500,000 Option Units. Each Public Unit consists of one Public Share and one Public Right, which grants the holder the right to receive one-tenth (1/10) of one Class A Ordinary Share upon the consummation of the initial Business Combination. The Public Units were sold at a price of $10.00 per Public Unit, generating gross proceeds to us of $200,000,000. CCM and Seaport acted as book runners and representatives of the underwriters.

 

Simultaneously with the consummation of our Initial Public Offering and pursuant to the Private Placement Units Purchase Agreements, we completed the private sale of an aggregate of 600,000 Private Placement Units at a purchase price of $10.00 per Private Placement Unit, to our Sponsor, CCM and Seaport generating gross proceeds of $6,000,000.

 

Following the closing of our Initial Public Offering, a total of $200,000,000 comprised of the proceeds from the Initial Public Offering (which amount includes the Deferred Fee) and the Private Placement, was placed in a U.S.-based trust account maintained by Continental, acting as trustee. The proceeds held in the Trust Account may be invested by the trustee only in U.S. government securities with a maturity of 185 days or less or in money market funds investing solely in U.S. government treasury obligations and meeting certain conditions under Rule 2a-7 under the Investment Company Act. To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that we hold investments in the Trust Account, we may, at any time (based on the Management Team’s ongoing assessment of all factors related to the potential status under the Investment Company Act), instruct the trustee to liquidate the investments held in the Trust Account and instead to hold the funds in the Trust Account in cash or in an interest-bearing demand deposit account at a bank.

 

The remaining proceeds from the Initial Public Offering and the Private Placement are held outside the Trust Account. Such funds are being used primarily to enable us to identify a target and to negotiate and consummate our initial Business Combination.

 

There has been no material change in the planned use of the proceeds from our Initial Public Offering and the Private Placement as described in the IPO Registration Statement. The specific investments in our Trust Account may change from time to time.

 

24

 

 

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

Trading Arrangements

 

During the quarterly period ended June 30, 2025, none of our directors or officers (as defined in Rule 16a-1(f) promulgated under the Exchange Act) adopted or terminated any “Rule 10b5-1 trading arrangement” or any “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

 

Additional Information

 

None.

 

Item 6. Exhibits.

 

The following exhibits are filed as part of, or incorporated by reference into, this Report.

 

No.   Description of Exhibit
1.1   Underwriting Agreement, dated June 17, 2025, among the Company, CCM and Seaport, as representatives of the several underwriters. (1)
3.1   Amended and Restated Memorandum and Articles of Association of the Company. (1)
4.1   Share Rights Agreement, dated June 17, 2025, by and between the Company and Continental. (1)
10.1   Investment Management Trust Agreement, dated June 17, 2025, by and between the Company and Continental. (1)
10.2   Registration Rights Agreement, dated June 17, 2025, by and among the Company, the Sponsor, CCM and Seaport, as representatives of the several underwriters. (1)
10.3   Private Placement Units Purchase Agreement, dated June 17, 2025, between the Company and the Sponsor. (1)
10.4   Private Placement Units Purchase Agreement, dated June 17, 2025, between the Company, CCM and Seaport. (1)
10.5   Letter Agreement, dated June 17, 2025, by and among the Company, the Sponsor and each of the officers and directors of the Company. (1)
10.6   Administrative Services Agreement, dated June 17, 2025, between the Company and the Sponsor. (1)
31.1   Certification of the Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
31.2   Certification of the Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.*
32.1   Certification of the Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
32.2   Certification of the Principal Financial Officer pursuant to 18 U.S.C. 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 (Embedded as Inline XBRL document and contained in Exhibit 101).*

 

*Filed herewith.

 

**Furnished herewith.

 

(1)Incorporated by reference to the Company’s Current Report on Form 8-K, as filed with the SEC on June 24, 2025.

 

25

 

 

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.

 

  AXIOM INTELLIGENCE ACQUISITION CORP 1
     
Date: August 12, 2025 By: /s/ Douglas Ward
  Name:   Douglas Ward
  Title: Chief Executive Officer
    (Principal Executive Officer)
     
Date: August 12, 2025 By: /s/ W. Robert Dilling, Jr.
  Name:   W. Robert Dilling, Jr.
  Title: Chief Financial Officer
    (Principal Financial and Accounting Officer)

 

 

26

 

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AXIOM INTELLIGENCE AC CORP 1

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