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 quarter ended June 30, 2025
☐ 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: 001-42714
LIGHTWAVE ACQUISITION CORP.
(Exact Name of Registrant as Specified in Its Charter)
Cayman Islands | | N/A |
(State or other jurisdiction of
incorporation or organization) | | (I.R.S. Employer
Identification No.) |
14755 Preston Road
Suite 520
Dallas TX 14755
(Address of principal executive offices)
214-617-8250
(Issuer’s telephone number)
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-half of one redeemable warrant | | LWACU | | The Nasdaq Stock Market LLC |
Class A ordinary shares, par value $0.0001 per share | | LWAC | | The Nasdaq Stock Market LLC |
Warrants, each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50 per share | | LWACW | | The Nasdaq Stock Market LLC |
Check whether the issuer (1) filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 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 19, 2025, there were 22,168,750 Class
A ordinary shares, $0.0001 par value and 7,906,250 Class B ordinary shares, $0.0001 par value, issued and outstanding.
LIGHTWAVE ACQUISITION CORP.
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2025
TABLE OF CONTENTS
|
|
Page |
Part I. Financial Information |
|
1 |
Item 1. Financial Statements |
|
1 |
Unaudited
Condensed Balance Sheet as of June 30, 2025 |
|
1 |
Unaudited
Condensed Statements of Operations for the Three Months Ended June 30, 2025 and for the Period from January 22, 2025 (Inception)
Through June 30, 2025 |
|
2 |
Unaudited
Condensed Statements of Changes in Shareholders’ Deficit for the Three Months Ended June 30, 2025 and for the Period from
January 22, 2025 (Inception) Through June 30, 2025 |
|
3 |
Unaudited
Condensed Statement of Cash Flows for the Period from January 22, 2025 (Inception) Through June 30, 2025 |
|
4 |
Notes to Condensed Financial Statements (Unaudited) |
|
5 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|
19 |
Item 3. Quantitative and Qualitative Disclosures Regarding Market Risk |
|
22 |
Item 4. Controls and Procedures |
|
22 |
Part II. Other Information |
|
|
Item 1. Legal Proceedings |
|
23 |
Item 1A. Risk Factors |
|
23 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
|
23 |
Item 3. Defaults Upon Senior Securities |
|
23 |
Item 4. Mine Safety Disclosures |
|
23 |
Item 5. Other Information |
|
23 |
Item 6. Exhibits |
|
24 |
Part III. Signatures |
|
25 |
PART I - FINANCIAL INFORMATION
Item 1. Interim Financial Statements.
LIGHTWAVE ACQUISITION CORP.
CONDENSED BALANCE SHEET
(UNAUDITED)
JUNE 30, 2025
Assets: | |
| |
Current asset | |
| |
Cash | |
$ | 1,140,316 | |
Due from Sponsor | |
| 130,500 | |
Prepaid expenses | |
| 37,750 | |
Total current assets | |
| 1,308,566 | |
Investments held in Trust Account | |
| 215,723,309 | |
Total Assets | |
$ | 217,031,875 | |
| |
| | |
Liabilities, Class A Ordinary Shares Subject to Possible Redemption and Shareholders’ Deficit: | |
| | |
Accounts payable and accrued expenses | |
$ | 97,700 | |
Accrued offering costs | |
| 97,568 | |
Total current liabilities | |
| 195,268 | |
Deferred underwriting fee payable | |
| 7,546,875 | |
Total Current Liabilities | |
$ | 7,742,143 | |
| |
| | |
Commitments and Contingencies (Note 6) | |
| | |
Class A ordinary shares subject to possible redemption, 21,562,500 shares at a redemption value of $10.00 per share | |
| 215,723,309 | |
| |
| | |
Shareholders’ Deficit | |
| | |
Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding | |
| — | |
Class A ordinary shares, $0.0001 par value; 300,000,000 shares authorized; 606,250 shares issued and outstanding, excluding 21,562,500 shares subject to possible redemption | |
| 61 | |
Class B ordinary shares, $0.0001 par value; 30,000,000 shares authorized; 7,906,250 shares issued and outstanding | |
| 791 | |
Accumulated deficit | |
| (6,434,429 | ) |
Total Shareholders’ Deficit | |
| (6,433,577 | ) |
Total Liabilities and Shareholders’ Deficit | |
$ | 217,031,875 | |
The accompanying notes are an integral part of
the unaudited condensed financial statements.
LIGHTWAVE ACQUISITION CORP.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
| |
For the
Three Months
Ended
June 30, | | |
For the
Period from
January 22,
2025
(Inception)
Through
June 30, | |
| |
2025 | | |
2025 | |
General and administrative costs | |
$ | 87,167 | | |
$ | 134,353 | |
Loss from operations | |
| (87,167 | ) | |
| (134,353 | ) |
| |
| | | |
| | |
Other income (expense): | |
| | | |
| | |
Interest income - operating account | |
| 172 | | |
| 172 | |
Compensation expense | |
| (372,000 | ) | |
| (372,000 | ) |
Earnings from investments in Trust Account | |
| 98,309 | | |
| 98,309 | |
Total other expense, net | |
| (273,519 | ) | |
| (273,519 | ) |
| |
| | | |
| | |
Net loss | |
$ | (360,686 | ) | |
$ | (407,872 | ) |
| |
| | | |
| | |
Weighted average redeemable Class A ordinary shares outstanding - basic and diluted | |
| 1,184,753 | | |
| 673,828 | |
| |
| | | |
| | |
Basic and diluted net income per redeemable Class A ordinary share | |
$ | (0.04 | ) | |
$ | (0.05 | ) |
| |
| | | |
| | |
Weighted average non-redeemable Class A and Class B ordinary shares outstanding - basic | |
| 6,964,973 | | |
| 6,926,172 | |
| |
| | | |
| | |
Basic net income per non-redeemable Class A and Class B ordinary share | |
$ | (0.04 | ) | |
$ | (0.05 | ) |
| |
| | | |
| | |
Weighted average non-redeemable Class A and Class B ordinary shares outstanding - diluted | |
| 7,939,560 | | |
| 7,925,195 | |
| |
| | | |
| | |
Diluted net income per non-redeemable Class A and Class B ordinary share | |
$ | (0.04 | ) | |
$ | (0.05 | ) |
The accompanying notes are an integral part of
the unaudited condensed financial statements.
LIGHTWAVE ACQUISITION CORP.
CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’
DEFICIT
FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND
FOR THE PERIOD FROM JANUARY 22, 2025 (INCEPTION) THROUGH JUNE 30, 2025
(UNAUDITED)
| |
Class A Ordinary Shares | | |
Class B Ordinary Shares | | |
Additional Paid-in | | |
Accumulated | | |
Total Shareholders’ | |
| |
Shares | | |
Amount | | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Deficit | |
Balance — January 22, 2025 | |
| — | | |
$ | — | | |
| — | | |
$ | — | | |
$ | — | | |
$ | — | | |
$ | — | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Issuance of Class B ordinary shares to Sponsor | |
| — | | |
| — | | |
| 7,906,250 | | |
| 791 | | |
| 24,209 | | |
| — | | |
| 25,000 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net loss | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (47,186 | ) | |
| (47,186 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance – March 31, 2025 | |
| — | | |
| — | | |
| 7,906,250 | | |
| 791 | | |
| 24,209 | | |
| (47,186 | ) | |
| (22,186 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Sale of 606,250 Private Placement Units | |
| 606,250 | | |
| 61 | | |
| — | | |
| — | | |
| 6,062,439 | | |
| — | | |
| 6,062,500 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Fair value of Public Warrants at issuance | |
| — | | |
| — | | |
| — | | |
| — | | |
| 2,479,688 | | |
| — | | |
| 2,479,688 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Allocated value of transaction costs to Class A ordinary shares | |
| — | | |
| — | | |
| — | | |
| — | | |
| (156,710 | ) | |
| — | | |
| (156,710 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Share-based compensation | |
| — | | |
| — | | |
| — | | |
| — | | |
| 372,000 | | |
| — | | |
| 372,000 | |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Accretion for Class A ordinary shares to redemption value | |
| — | | |
| — | | |
| — | | |
| — | | |
| (8,781,626 | ) | |
| (6,026,557 | ) | |
| (14,808,183 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Net loss | |
| — | | |
| — | | |
| — | | |
| — | | |
| — | | |
| (360,686 | ) | |
| (360,686 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
Balance – June 30, 2025 | |
| 606,250 | | |
$ | 61 | | |
| 7,906,250 | | |
$ | 791 | | |
$ | — | | |
$ | (6,434,429 | ) | |
$ | (6,433,577 | ) |
The accompanying notes are an integral part of
the unaudited condensed financial statements.
LIGHTWAVE ACQUISITION CORP.
CONDENSED STATEMENT OF CASH FLOWS
FOR THE PERIOD FROM JANUARY 22, 2025 (INCEPTION)
THROUGH JUNE 30, 2025
(UNAUDITED)
Cash Flows from Operating Activities: | |
| |
Net loss | |
$ | (407,872 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | |
| | |
Earnings from investments in Trust Account | |
| (98,309 | ) |
Compensation expense | |
| 372,000 | |
Changes in operating assets and liabilities: | |
| | |
Prepaid expenses | |
| (37,750 | ) |
Accounts payable and accrued expenses | |
| 109,477 | |
Net cash used in operating activities | |
| (62,454 | ) |
| |
| | |
Cash Flows from Investing Activities: | |
| | |
Investment of cash in Trust Account | |
| (215,625,000 | ) |
Net cash used in investing activities | |
| (215,625,000 | ) |
| |
| | |
Cash Flows from Financing Activities: | |
| | |
Proceeds from issuance of Class B ordinary shares to Sponsor | |
| 25,000 | |
Proceeds from sale of Units, net of underwriting discounts paid | |
| 211,312,500 | |
Proceeds from sale of Private Placement Units | |
| 6,062,500 | |
Overpayment on Sponsor Note Payable | |
| (130,500 | ) |
Repayment of advances from related party | |
| (144,500 | ) |
Repayment of promissory note - related party | |
| (25,000 | ) |
Proceeds from advances from related party | |
| 144,500 | |
Payment of offering costs | |
| (416,730 | ) |
Net cash provided by financing activities | |
| 216,827,770 | |
| |
| | |
Net Change in Cash | |
| 1,140,316 | |
Cash – Beginning of period | |
| — | |
Cash – End of period | |
$ | 1,140,316 | |
| |
| | |
Non-Cash investing and financing activities: | |
| | |
Deferred offering costs included in accrued offering costs | |
$ | 320,862 | |
Deferred offering costs paid through promissory note – related party | |
$ | 25,000 | |
Offering costs charged to additional paid-in capital | |
$ | 527,521 | |
Deferred underwriting fee payable | |
$ | 7,546,875 | |
The accompanying notes are an integral part of
the unaudited condensed financial statements.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
NOTE 1 — DESCRIPTION OF ORGANIZATION
AND BUSINESS OPERATIONS
LightWave Acquisition Corp. (the “Company”) is a blank check company incorporated as a Cayman Islands exempted corporation
on January 22, 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 commenced
any operations. All activity for the period from January 22, 2025 (inception) through June 30, 2025 relates to the Company’s formation,
the initial public offering (“Initial Public Offering”), which is described below, and subsequent to the Initial Public Offering,
identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion
of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest or dividend
income from the proceeds derived from the Initial Public Offering (as defined below). The Company has selected December 31 as its fiscal
year end.
The Company’s Sponsor is LightWave Founders
LLC (the “Sponsor”). The registration statement for the Company’s Initial Public Offering was declared effective on
June 24, 2025. On June 26, 2025, the Company consummated the Initial Public Offering of 21,562,500 units at $10.00 per unit, which
is discussed in Note 3, which includes the full exercise of the underwriters’ over-allotment option of 2,812,5000 Units, generating
gross proceeds of $215,625,000.
Simultaneously with the closing of the Initial
Public Offering, the Company consummated the sale of an aggregate of 606,250 Private Placement Units (the “Private Placement
Units”) to the Sponsor and the underwriters of the Initial Public Offering, at a price of $10.00 per unit, or $6,062,500 in the
aggregate. Each Unit consists of one Class A ordinary share and one-half of one redeemable warrant. Of those 606,250 Private Placement
Units, the Sponsor purchased 390,625 Private Placement Units and the underwriters in the Initial Public Offering purchased 215,625
private Placement Units. Each whole warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share.
Transaction costs amounted to $12,386,896, consisting
of $4,312,500 of cash underwriting fee, $7,546,875 of deferred underwriting fee, and $527,521 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 underwriting fees held and taxes payable, if any, 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.
Upon the closing of the Initial Public Offering
on June 26, 2025, an amount of $215,625,000 ($10.00 per Unit) from the net proceeds of the sale of the Units, and a portion of the proceeds
of the sale of the Private Placement Units, are held in a Trust Account (the “Trust Account”) and will 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 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 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. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its
taxes, if any, the proceeds from the Initial Public Offering and the sale of the Private Placement Units will not be released from
the Trust Account until the earliest of (i) the completion of the Company’s initial Business Combination, (ii) the redemption
of the Company’s public shares if the Company is unable to complete the initial Business Combination within 24 months from
the closing of the Initial Public Offering (June 26, 2027) or by such earlier liquidation date as our board of directors may approve (the
“Completion Window”), subject to applicable law, or (iii) the redemption of the Company’s public shares properly
submitted in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association
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 Company’s public shares if the Company has not consummated an initial Business Combination
within the Completion Window 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 Company’s public shareholders.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
The Company will provide the Company’s public
shareholders 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 will be entitled
to redeem their 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), divided by the number of then outstanding public shares, subject to the limitations. The
amount in the Trust Account is initially anticipated to be $10.00 per public share.
The ordinary shares subject to redemption are
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 will have only the duration of the
Completion Window to complete the initial Business Combination. However, if the Company is unable to complete its initial Business Combination
within the Completion Window, 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 or dividends 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, officers and directors have entered
into a letter agreement with the Company, pursuant to which they have agreed to (i) waive their redemption rights with respect to
their founder shares, private shares and public shares in connection with 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; (ii) waive their redemption rights with respect
to their founder shares, private shares and public shares in connection with a shareholder vote to approve an amendment to the Company’s
amended and restated memorandum and articles of association; (iii) waive their rights to liquidating distributions from the Trust
Account with respect to their founder shares and private shares if the Company fails to complete the initial Business Combination within
the Completion Window, 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 Completion Window and to liquidating distributions
from assets outside the trust account; and (iv) vote any founder 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 assets, less taxes payable, if any, 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 assure that the Sponsor would be able
to satisfy those obligations.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
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 Company’s prospectus for its Initial Public Offering as filed with
the SEC on July 2, 2025, as well as the Company’s Current Report on Form 8-K, as filed with the SEC on June 30, 2025. The
interim results for the three months ended June 30, 2025 and for the period from January 22, 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.
Liquidity, Capital Resources, and Going Concern
The Company’s liquidity needs up to June
30, 2025 had been satisfied through the loan under an unsecured promissory note and advances a from related party. At June 30, 2025, the
Company had cash of $1,140,316, due from Sponsor of $130,500, and working capital of $1,113,298.
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 funds as may be required (the “Working Capital Loans”). 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 Private Placement Units of the post Business Combination entity at a price of $10.00 per Unit at the option of the lender. As of
June 30, 2025, no such Working Capital Loans were outstanding.
In connection with the Company’s assessment
of going concern considerations in accordance with Accounting Standards Codification (“ASC”) 205-40, “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 the Company has sufficient
funds to finance the working capital needs of the Company within one year from the date of issuance of the financial statement.
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, reduced disclosure obligations regarding executive compensation
in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive
compensation and shareholder approval of any golden parachute payments not previously approved.
Further, Section 102(b)(1) of the JOBS
Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies
(that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered
under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that
a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies
but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means
that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging
growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison
of the Company’s unaudited condensed financial statements with another public company which is neither an emerging growth company
nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential
differences in accounting standards used.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
Use of Estimates
The preparation of 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 unaudited condensed financial statements.
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, 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 cash of $1,140,316 and did not
have any cash equivalents as of June 30, 2025.
Investments Held in Trust Account
At June 30, 2025, investments held in the Trust
Account were held in mutual funds which are invested in money market funds. Investments held in the Trust Account are presented on the unaudited condensed balance sheet at fair value at the end of the reporting period.
The estimated fair values of investments held in Trust Account are determined using available market information. Fair values of these
investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical assets.
Offering Costs Associated with the Initial
Public Offering
The Company complies with the requirements of
the ASC 340-10-S99 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering.”
Deferred offering costs consist principally of professional and registration fees that are related to the Initial Public Offering. Financial
Accounting Standards Board (“FASB”) ASC 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 Class A ordinary shares and warrants, using the residual method by allocating
Initial Public Offering proceeds first to assigned value of the warrants and then to the Class A ordinary shares. Offering costs
allocated to the Class A ordinary shares subject to possible redemption were charged to temporary equity, and offering costs allocated
to the warrants included in the Public Units and Private Placement Units were charged to shareholders’ deficit as the
warrants, after management’s evaluation, are accounted for under equity treatment.
Fair Value of Financial Instruments
The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximates
the carrying amounts represented in the unaudited condensed balance sheet, primarily due to its short-term nature.
Income Taxes
The Company accounts for income taxes under ASC
Topic 740, “Income Taxes,” 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 unaudited condensed financial statements 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 Topic 740 prescribes a recognition threshold
and a measurement attribute for the unaudited condensed financial statements recognition and measurement of tax positions taken or expected
to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination
by taxing authorities. The Company’s 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 26, 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.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
Class A Ordinary Shares Subject to Possible
Redemption
The Public Shares contain a redemption feature
which allows for the redemption of such Public Shares in connection with the Company’s liquidation, if there is a shareholder vote
(A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with a Business Combination
or to redeem 100% of the Public Shares if the Company does not complete an initial Business Combination within the completion window
or (B) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity,
or if there is a shareholder vote or tender offer in connection with the Company’s initial Business Combination. In accordance
with ASC 480-10-S99, the Company classifies Public Shares subject to 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 Company’s unaudited condensed balance sheet. As of
June 30, 2025, the Class A ordinary shares subject to possible redemption reflected in the unaudited condensed balance sheet are reconciled
in the following table:
| |
Shares | | |
Amount | |
Gross proceeds | |
| 21,562,500 | | |
$ | 215,625,000 | |
Less: | |
| | | |
| | |
Proceeds allocated to Public Warrants | |
| | | |
| (2,479,688 | ) |
Class A ordinary shares issuance costs | |
| | | |
| (12,230,186 | ) |
Plus: | |
| | | |
| | |
Accretion of carrying value to redemption value | |
| | | |
| 14,808,183 | |
Class A Ordinary Shares subject to possible redemption, June 30, 2025 | |
| 21,562,500 | | |
$ | 215,723,309 | |
Share-Based Compensation
The Company records share-based compensation in
accordance with FASB ASC Topic 718, “Compensation-Share Compensation” (“ASC 718”), guidance to account for its
share-based compensation. It defines a fair value-based method of accounting for an employee share option or similar equity instrument.
The Company recognizes all forms of share-based payments at their fair value on the grant date, which are based on the estimated number
of awards that are ultimately expected to vest. Share-based payments are valued by multiplying the marketable value per Founder Share
(defined in Note 5) by the probability of successful closing of an initial Business Combination. Grants of share-based payment awards
issued to non-employees for services rendered have been recorded at the fair value of the share-based payment, which is the more readily
determinable value. The grants are amortized on a straight-line basis over the requisite service periods, which is generally the vesting
period. If an award is granted, but vesting does not occur, any previously recognized compensation cost is reversed in the period related
to the termination of service. Share-based compensation expenses are included in costs and operating expenses depending on the nature
of the services provided in the unaudited condensed statements of operations.
Warrant Instruments
The Company accounts for the Warrants 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 warrant instruments under equity treatment
at their assigned values.
Net Loss Per Ordinary Share
The Company complies with accounting and disclosure
requirements of ASC Topic 260, “Earnings Per Share.” The Company has two classes of ordinary shares, which are referred to
as redeemable Class A ordinary shares and non-redeemable Class A and Class B ordinary shares. Income and losses are shared pro rata between
the two classes of ordinary shares. This presentation assumes a Business Combination as the most likely outcome. Net income per ordinary
share is calculated by dividing the net income by the weighted average ordinary shares outstanding for the respective period.
The calculation of diluted loss per Ordinary
Share does not consider the effect of the Warrants issued in connection with the (i) Initial Public Offering, (ii) the exercise of
the over-allotment option and (iii) Private Placement, since the average price of the Ordinary Shares for the three months ended
June 30, 2025 and for the period from January 22, 2025 (inception) through June 30, 2025 was less than the exercise price and
therefore, the inclusion of such Warrants under the Treasury stock method would be anti-dilutive and the exercise is contingent upon
the occurrence of future events. As a result, diluted net income per Ordinary Share is the same as basic net loss per Ordinary Share
for the periods presented.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
The following table reflects the calculation of
basic and diluted net loss per Ordinary Share:
| |
For the Three Months Ended | | |
For the Period from January 22,
2025 (Inception) Through | |
| |
June 30, 2025 | | |
June 30, 2025 | |
| |
Redeemable Clas A | | |
Non-redeemable Class A and Class B | | |
Redeemable Clas A | | |
Non-redeemable Class A and Class B | |
| |
Ordinary Shares | | |
Ordinary Shares | | |
Ordinary Shares | | |
Ordinary Shares | |
Basic net loss per Ordinary Share | |
| | |
| | |
| | |
| |
Numerator: | |
| | |
| | |
| | |
| |
Allocation of net loss, as adjusted | |
$ | (52,434 | ) | |
$ | (308,252 | ) | |
$ | (36,163 | ) | |
$ | (371,709 | ) |
| |
| | | |
| | | |
| | | |
| | |
Denominator: | |
| | | |
| | | |
| | | |
| | |
Basic weighted average Ordinary Shares outstanding | |
| 1,184,753 | | |
| 6,964,973 | | |
| 673,828 | | |
| 6,926,172 | |
Basic net loss per Ordinary Share | |
$ | (0.04 | ) | |
$ | (0.04 | ) | |
$ | (0.05 | ) | |
$ | (0.05 | ) |
| |
For the Three Months Ended | | |
For the Period from January 22,
2025 (Inception) Through | |
| |
June 30, 2025 | | |
June 30, 2025 | |
| |
Redeemable Clas A | | |
Non-redeemable Class A and Class B | | |
Redeemable Clas A | | |
Non-redeemable Class A and Class B | |
| |
Ordinary Shares | | |
Ordinary Shares | | |
Ordinary Shares | | |
Ordinary Shares | |
Diluted net loss per Ordinary Share | |
| | |
| | |
| | |
| |
Numerator: | |
| | |
| | |
| | |
| |
Allocation of net loss, as adjusted | |
$ | (46,834 | ) | |
$ | (313,852 | ) | |
$ | (31,961 | ) | |
$ | (375,911 | ) |
| |
| | | |
| | | |
| | | |
| | |
Denominator: | |
| | | |
| | | |
| | | |
| | |
Diluted weighted average Ordinary Shares outstanding | |
| 1,184,753 | | |
| 7,939,560 | | |
| 673,828 | | |
| 7,925,195 | |
Diluted net loss per Ordinary Share | |
$ | (0.04 | ) | |
$ | (0.04 | ) | |
$ | (0.05 | ) | |
$ | (0.05 | ) |
Recent Accounting Pronouncements
In November 2023, the FASB issued ASU 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU require disclosures, on
an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”),
as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. The ASU requires that
a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment
profit or loss in assessing segment performance and deciding how to allocate resources. Public entities will be required to provide all
annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required
to provide all the disclosures required by the amendments in this ASU and existing segment disclosures in Topic 280. This ASU is
effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15,
2024, with early adoption permitted. The Company adopted ASU 2023-07 on January 22, 2025, date of incorporation.
In November 2024, the FASB issued Accounting Standards
Update (“ASU”) 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic
220-40): Disaggregation of Income Statement Expenses”, requiring public entities to disclose additional information about specific
expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years
beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company
is currently evaluating the impact of adopting ASU 2024-03.
Management does not believe that any recently
issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited condensed
financial statements.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
NOTE 3 — INITIAL PUBLIC OFFERING
Pursuant to the Initial Public Offering on June
26, 2025, the Company sold 21,562,500 Units at a purchase price of $10.00 per Unit for a total of $215,625,000, which includes
the full exercise of the underwriters’ overallotment option in the amount of 2,812,500 Units. Each Unit consists of one Class A
ordinary share, and one-half of one redeemable warrant. Each whole warrant will entitle the holder to purchase one Class A ordinary
share at a price of $11.50 per share, subject to adjustment. Each warrant will become exercisable 30 days after the completion of
the initial Business Combination and will expire five years after the completion of the initial Business Combination, or earlier
upon redemption or liquidation.
NOTE 4 — PRIVATE PLACEMENT
Simultaneously with the closing of the Initial
Public Offering, the Sponsor and the underwriters in the Initial Public Offering purchased an aggregate of 606,250 Private Placement Units,
consisting of one Class A ordinary share and one half warrant in which each whole warrant is exercisable to purchase one Class A
ordinary share at $11.50 per share, at a price of $10.00 per unit, or $6,062,500 in the aggregate. Of those 606,250 Private Placement
Units, the Sponsor purchased 390,625 Private Placement Units and the underwriters in the Initial Public Offering purchased 215,625
Private Placement Units. Each whole warrant entitles the registered holder to purchase one Class A ordinary share at a price of $11.50
per share, subject to adjustment.
The Private Placement Units are identical
to the Public Units sold in the Initial Public Offering except that, so long as they are held by the Sponsor, the underwriters or
their permitted transferees, the Private Placement Units (i) may not (including the Class A ordinary shares issuable upon
exercise of the warrants contained in the Private Placement Units), subject to certain limited exceptions, be transferred, assigned or
sold by the holders until 30 days after the completion of the initial Business Combination, (ii) will be entitled to registration
rights and (iii) with respect to private placement units contained in the Private Placement Units held by the underwriters and/or
their designees, will not be exercisable more than five years from the commencement of sales in the Initial Public Offering in accordance
with FINRA Rule 5110(g)(8).
The Sponsor and the Company’s officers and
directors have entered into a letter agreement with the Company, pursuant to which they have agreed to (i) waive their redemption
rights with respect to their founder shares, private shares and public shares in connection with 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; (ii) waive their redemption
rights with respect to their founder shares, private shares and public shares in connection with a shareholder vote to approve an amendment
to the Company’s amended and restated memorandum and articles of association (A) to 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 Completion Window or (B) with respect to any other material provisions
relating to shareholders’ rights or pre-initial Business Combination activity; (iii) waive their rights to liquidating distributions
from the Trust Account with respect to their founder shares and private shares if the Company fails to complete the initial Business Combination
within the Completion Window, 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 Completion Window and to liquidating distributions
from assets outside the trust account; and (iv) vote any founder 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.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
NOTE 5 — RELATED PARTY TRANSACTIONS
Founder Shares
On January 29, 2025, the Company issued an
aggregate of 6,062,500 Class B ordinary shares, $0.0001 par value (the “Founder Shares”), in exchange for a $25,000 payment
(approximately $0.003 per share) from the Sponsor to cover certain expenses on behalf of the Company. On March 7, 2025, the Company
issued a share recapitalization for 262,500 ordinary shares to the Sponsor, whereby the Sponsor held 6,325,000 Class B ordinary shares.
On May 28, 2025, the Company issued a share recapitalization for 1,581,250 ordinary shares to the Sponsor, whereby the Sponsor now holds
7,906,250 Class B ordinary shares. Up to 1,031,250 of the Founder Shares may be surrendered by the Sponsor for no consideration depending
on the extent to which the underwriters’ over-allotment is exercised. On June 26, 2025, the underwriters exercised their over-allotment
option in full as part of the closing of the Initial Public Offering. As such, the 1,031,250 founder shares are no longer subject to forfeiture.
In May 2025, the Sponsor granted membership interests
equivalent to an aggregate of 300,000 Founder Shares, discussed in Note 7, in exchange for their services as the officer and independent
directors through the Company’s initial Business Combination. The Founder Shares, represented by such membership interests, will
remain with the Sponsor if the holder of such membership interests are 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, stock-based compensation associated with equity-classified awards is measured
at fair value upon the assignment date. The total fair value of the 300,000 Founder Shares represented by such membership interests assigned
to the holders of such interests on June 26, 2025 was $372,000 or $1.24 per share. The Company established the initial fair value of the
Founder Shares on May 9, 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 12.5%, a risk free rate of 4.28% and a stock price of $9.86. The Founder Shares are classified
as Level 3 in the fair value hierarchy at the measurement date due to the use of unobservable inputs, and other risk factors. As of June
30, 2025, the Company recorded the share compensation in the unaudited condensed statements of operations.
The Company’s initial shareholders have
agreed not to transfer, assign or sell any of their Founder Shares and any Class A ordinary shares issued upon conversion thereof
until the earlier to occur of (i) six months after the completion of the initial Business Combination or (ii) the date
on which the Company completes a liquidation, merger, share exchange or other similar transaction after the initial Business Combination
that results in all of the Company’s shareholders having the right to exchange their Class A ordinary shares for cash, securities
or other property. Any permitted transferees will be subject to the same restrictions and other agreements of the Company’s initial
shareholders with respect to any founder shares (the “Lock-up”). Notwithstanding the foregoing, if (1) the closing price
of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations,
recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 30 days
after our initial Business Combination or (2) if the Company consummates a transaction after the initial Business Combination which
results in the Company’s shareholders having the right to exchange their shares for cash, securities or other property, the founder
shares will be released from the Lock-up.
Promissory Note — Related Party
The Sponsor had agreed to loan the Company an
aggregate of up to $25,000 to be used for a portion of the expenses of the Initial Public Offering. The loan is non-interest bearing,
unsecured and due at the earlier of the closing date of the Initial Public Offering or the date on which the Company determines not to
conduct an initial public offering. The loan will be repaid out of the $650,000 of offering proceeds that has been allocated to the payment
of offering expenses. The Company had borrowed $25,000 under the promissory note, which was repaid as of June 26, 2025. Borrowings under
the note are no longer available.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
Due from Sponsor
On June 26, 2025, the Company repaid in excess
of the promissory note – related party and advances from related party for a total $130,500. As of June 30, 2025, there was $130,500
outstanding under the due from Sponsor, which is currently due on demand.
Administrative Services Agreement
The Company entered into an agreement with
the Sponsor or an affiliate to pay an aggregate of $10,000 per month for office space, utilities and secretarial and administrative
support commencing on June 26, 2025. These monthly fees will cease upon the completion of the initial Business Combination or the
liquidation of the Company. For the three months ended June 30, 2025 and for the period from January 22, 2025 (inception) through
June 30, 2025, the Company incurred $1,667 in fees for these services, of which such amount is included in accounts payable and
accrued expenses in the accompanying unaudited condensed balance sheet.
Working Capital 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 funds as may be required (the “Working Capital Loans”). 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 private placement units of the post Business Combination entity at a price of $10.00
per Unit at the option of the lender. As of June 30, 2025, no such Working Capital Loans were outstanding.
NOTE 6 — COMMITMENTS AND CONTINGENCIES
Risks and Uncertainties
The United States and global markets are
experiencing volatility and disruption following the geopolitical instability resulting from the ongoing Russia-Ukraine conflict and the
Israel-Hamas conflict. In response to the ongoing Russia-Ukraine conflict, the North Atlantic Treaty Organization (“NATO”)
deployed additional military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries
have announced various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal
of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication payment system. Certain countries,
including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine and to Israel,
increasing geopolitical tensions among a number of nations. The invasion of Ukraine by Russia and the Israel-Hamas conflict and the resulting
measures that have been taken, and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union,
Israel and its neighboring states and other countries have created global security concerns that could have a lasting impact on regional
and global economies. Although the length and impact of the ongoing conflicts are highly unpredictable, they could lead to market disruptions,
including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions and increased
cyberattacks against U.S. companies. Additionally, any resulting sanctions could adversely affect the global economy and financial
markets and lead to instability and lack of liquidity in capital markets.
Any of the above-mentioned factors, or any other
negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian invasion of Ukraine,
the escalation of the Israel-Hamas conflict and subsequent sanctions or related actions, could adversely affect the Company’s search
for an initial Business Combination and any target business with which the Company may ultimately consummate an initial Business Combination.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
Registration Rights
The holders of the founder shares, Private Placement
Units and the Class A ordinary shares underlying the warrants contained in such Private Placement Units and Units that
may be issued upon conversion of the Working Capital Loans have registration rights to require the Company to register for resale of any
of the Company’s securities held by them and any other securities of the Company acquired by them prior to the consummation of the
initial Business Combination pursuant to a registration rights agreement signed prior to the effective date of the Initial Public Offering.
The holders of these securities are entitled to make up to three demands, excluding short form demands, that the Company registers such
securities. In addition, the holders have certain piggyback registration rights with respect to registration statements filed subsequent
to the completion of the initial Business Combination. Notwithstanding anything to the contrary, 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.
Underwriters’ Agreement
The underwriters had a 45-day option from the
date of the Initial Public Offering to purchase up to an additional 2,812,500 Units to cover over-allotments, if any. On June 26,
2025, simultaneously with the closing of the Initial Public Offering, the underwriters elected to fully exercise the over-allotment option
to purchase the additional 2,812,500 Units at a price of $10.00 per Unit.
The underwriters were entitled to a cash underwriting
discount of $0.20 per Unit, or $4,312,500 in the aggregate (the “Base Fee”), which was paid to the underwriters at the closing
of the Initial Public Offering. Additionally, the underwriters are entitled to a deferred underwriting fee of $0.35 per Unit, or $7,546,875
in the aggregate, payable to the representative on behalf of the underwriters only upon the consummation of an initial Business Combination.
The deferred underwriting fee will be payable to the representative on behalf of the underwriters upon the closing of the initial Business
Combination in three portions, as follows: (i) $0.25 per Unit sold in the Initial Public Offering shall be paid to the underwriters
in cash, (ii) up to $0.05 per Unit sold in the Initial Public Offering shall be paid to the underwriters in cash, based on the funds
remaining in the Trust Account after giving effect to Class A ordinary shares that are redeemed in connection with an initial Business
Combination and (iii) $0.05 per Unit sold in the Initial Public Offering shall be paid to the underwriters in cash (such aggregate
amount, the “Allocable Amount”), provided that, after completion of the Initial Public Offering and the underwriters’
receipt of 100% of the Base Fee, the Company has the right, in its sole discretion, not to pay all or any portion of the Allocable Amount
to the representative and to use the Allocable Amount for expenses in connection with the initial Business Combination.
NOTE 7 — SHAREHOLDERS’
DEFICIT
Preference Shares — The
Company is authorized to issue a total of 1,000,000 preference shares at par value of $0.0001. At June 30, 2025, there were no preference
shares issued or outstanding.
Class A Ordinary Shares — The
Company is authorized to issue a total of 300,000,000 Class A ordinary shares at par value of $0.0001 per share. At June 30, 2025,
there were 606,250 Class A ordinary shares issued or outstanding, excluding 21,562,500 shares subject to possible redemption.
Class B Ordinary Shares — The
Company is authorized to issue a total of 30,000,000 Class B ordinary shares at par value of $0.0001 per share. On January 29,
2025, the Company issued an aggregate of 6,062,500 Class B ordinary shares, $0.0001 par value (the “Founder Shares”),
in exchange for a $25,000 payment (approximately $0.003 per share) from the Sponsor to cover certain expenses on behalf of the Company.
In March 2025, the Company issued a share capitalization for 262,500 ordinary shares to the Sponsor, whereby the Sponsor now held 6,325,000
Class B ordinary shares. In May 2025, the Company issued a share capitalization for 1,581,250 ordinary shares to the Sponsor, whereby
the Sponsor now holds 7,906,250 Class B ordinary shares. The Founder Shares included an aggregate of up to 1,031,250 shares subject to
forfeiture if the over-allotment option is not exercised by the underwriters in full. On June 26, 2025, the underwriters exercised their
over-allotment option in full as part of the closing of the Initial Public Offering. As such, the 1,031,250 founder shares are no longer
subject to forfeiture.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
The Founder Shares will automatically convert
into Class A ordinary shares concurrently with or immediately following 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 share sub-divisions, share capitalizations, reorganizations,
recapitalizations and the like, and subject to further adjustment as provided herein. 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, approximately 26.8% of the sum of (i) the
total number of all Class A ordinary shares outstanding upon the completion of the Initial Public Offering (including any Class A
ordinary shares issued pursuant to the underwriters’ over-allotment option and excluding the Class A ordinary shares underlying
the warrants contained in the private placement units), 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 warrants issued to our
sponsor or any of its affiliates or to our officers or directors upon conversion of working capital loans) minus (iii) any redemptions
of Class A ordinary shares by public shareholders in connection with an initial Business Combination; provided that such conversion
of founder shares will never occur on a less than one-for-one basis.
Holders of record of the Company’s Class A
ordinary shares and Class B 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 memorandum and articles of association or as required by the Companies Act or stock exchange
rules, an ordinary resolution under Cayman Islands law and the amended and restated memorandum and articles of association, 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
our 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 memorandum and articles
of association, such actions include amending our amended and restated memorandum and articles of association and approving a statutory
merger or consolidation with another company. There is no cumulative voting with respect to the appointment of directors, meaning, following
our 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
will (i) have the right to vote on the appointment and removal of directors and (ii) be entitled to vote on continuing our 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 our approving a transfer by way of continuation in a jurisdiction outside the
Cayman Islands). Holders of the Class A ordinary shares will not be entitled to vote on these matters during such time. These provisions
of the amended and restated memorandum and articles of association 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.
Warrants — As of
June 30, 2025, there were 10,781,250 Public Warrants and 303,125 Private Placement Warrants outstanding. Each whole warrant entitles the
holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment as discussed herein. The warrants
cannot be exercised until 30 days after the completion of the initial Business Combination, and will expire at 5:00 p.m., New York
City time, five years after the completion of the initial Business Combination or earlier upon redemption or liquidation.
The Company will not be obligated to deliver any
Class A ordinary shares pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless
a registration statement under the Securities Act with respect to the Class A ordinary shares underlying the warrants is then effective
and a prospectus relating thereto is current. No warrant will be exercisable and the Company will not be obligated to issue a Class A
ordinary share upon exercise of a warrant unless the Class A ordinary share issuable upon such warrant exercise has been registered,
qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. In the
event that the conditions in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such warrant
will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In no event will the Company be
required to net cash settle any warrant. In the event that a registration statement is not effective for the exercised warrants, the purchaser
of a Unit containing such warrant will have paid the full purchase price for the Unit solely for the Class A ordinary share underlying
such unit.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
Under the terms of the warrant agreement, the
Company has agreed that, as soon as practicable, but in no event later than 20 business days, after the closing of its Business
Combination, it will use its commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement
for the Initial Public Offering or a new registration statement covering the registration under the Securities Act of the Class A
ordinary shares issuable upon exercise of the warrants and thereafter will use its commercially reasonable efforts to cause the same to
become effective within 60 business days following the Company’s initial Business Combination and to maintain a current
prospectus relating to the Class A ordinary shares issuable upon exercise of the warrants until the expiration of the warrants in
accordance with the provisions of the warrant agreement. If a registration statement covering the Class A ordinary shares issuable
upon exercise of the warrants is not effective by the sixtieth (60th) business day after the closing of the initial Business
Combination, warrant holders may, until such time as there is an effective registration statement and during any period when the Company
will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with
Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if the Class A ordinary shares are
at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered
security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of public warrants
who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities
Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement,
and in the event the Company does not so elect, the Company will use its commercially reasonable efforts to register or qualify the shares
under applicable blue sky laws to the extent an exemption is not available.
If the holders exercise their public warrants
on a cashless basis, they would pay the warrant exercise price by surrendering the warrants for that number of Class A ordinary shares
equal to the quotient obtained by dividing (x) the product of the number of Class A ordinary shares underlying the warrants,
multiplied by the excess of the “fair market value” of the Class A ordinary shares over the exercise price of the warrants
by (y) the fair market value. The “fair market value” is the average reported closing price of the Class A ordinary
shares for the 10 trading days ending on the third trading day prior to the date on which the notice of exercise is
received by the warrant agent or on which the notice of redemption is sent to the holders of warrants, as applicable.
Redemption of Warrants When the Price per Class A
Ordinary Share Equals or Exceeds $18.00: The Company may redeem the outstanding warrants:
|
● |
in whole and not in part; |
| ● | at a price of $0.01 per warrant; |
| ● | upon a minimum of 30 days’ prior written notice of redemption (the “30-day redemption period”); and |
| ● | if, and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a warrant) for any 20 trading days within a 30-trading day period commencing at least 30 days after completion of our initial Business Combination and ending three business days before we send the notice of redemption to the warrant holders. |
Additionally, if the number of outstanding Class A
ordinary shares is increased by a share capitalization payable in Class A ordinary shares, or by a sub-division of ordinary shares
or other similar event, then, on the effective date of such share capitalization, sub-division or similar event, the number of Class A
ordinary shares issuable on exercise of each warrant will be increased in proportion to such increase in the outstanding ordinary shares.
A rights offering made to all or substantially all holders of ordinary shares entitling holders to purchase Class A ordinary shares
at a price less than the fair market value will be deemed a share capitalization of a number of Class A ordinary shares equal to
the product of (i) the number of Class A ordinary shares actually sold in such rights offering (or issuable under any other
equity securities sold in such rights offering that are convertible into or exercisable for Class A ordinary shares) and (ii) the
quotient of (x) the price per Class A ordinary share paid in such rights offering and (y) the fair market value. For these
purposes (i) if the rights offering is for securities convertible into or exercisable for Class A ordinary shares, in determining
the price payable for Class A ordinary shares, there will be taken into account any consideration received for such rights, as well
as any additional amount payable upon exercise or conversion and (ii) fair market value means the volume weighted average price of
Class A ordinary shares as reported during the ten (10) trading day period ending on the trading day prior to
the first date on which the Class A ordinary shares trade on the applicable exchange or in the applicable market, regular way, without
the right to receive such rights.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
NOTE 8 — FAIR VALUE MEASUREMENTS
Fair value is defined as the price that would
be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement
date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the
lowest priority to unobservable inputs (Level 3 measurements). These tiers include:
|
● |
Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
|
● |
Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
|
● |
Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. |
At the date of the Initial Public Offering, the
fair value of the Public Warrants was $2,479,688 or $0.231 per public warrant. The fair value of Public Warrants was determined using
a Monte Carlo Simulation Model. The Public Warrants 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 valuation of the Public
Warrants:
| |
June 26, 2025 | |
Volatility | |
| 5.0 | % |
Risk free rate | |
| 3.92 | % |
Stock price | |
$ | 9.93 | |
Weighted terms (Years) | |
| 7.01 | |
Implied market adjustment | |
| 17.8 | % |
At June 30, 2025, investments held in the Trust
Account were held in mutual funds which are invested in money market funds. Investments held in the Trust Account are presented on the
unaudited condensed balance sheet at fair value at the end of the reporting period.
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 | |
Investments held in Trust Account | |
| 1 | | |
$ | 215,703,309 | |
Note 9 — SEGMENT INFORMATION
ASC Topic 280, “Segment Reporting,”
establishes standards for companies to report in their financial statement information about operating segments, products, services, geographic
areas, and major customers. Operating segments are defined as components of an enterprise for which separate financial information is
available that is regularly evaluated by the Company’s chief operating decision maker, or group, in deciding how to allocate resources
and assess performance.
The Company’s chief operating decision maker
(“CODM”) has been identified as the Chief Executive 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 the Company only has one reportable segment.
The CODM assesses performance for the single segment
and decides how to allocate resources. The measure of segment assets is reported on the balance sheet as total assets.
LIGHTWAVE ACQUISITION
CORP.
NOTES TO CONDENSED FINANCIAL
STATEMENTS
JUNE 30, 2025
(Unaudited)
When evaluating the Company’s performance
and making key decisions regarding resource allocation the CODM reviews several key metrics included in total assets, which include the
following:
| |
June 30, 2025 | |
Cash | |
$ | 1,140,316 | |
Investments held in Trust Account | |
$ | 215,723,309 | |
| |
For the Three Months Ended June 30, 2025 | | |
For the Period from January 22, 2025 (Inception) Through June 30, 2025 | |
General and administrative costs | |
$ | 87,167 | | |
$ | 134,353 | |
Earnings on investments held in Trust Account | |
$ | 98,309 | | |
$ | 98,309 | |
The accounting policies used to measure the net
income or loss of the segment are the same as those described in the summary of significant accounting policies. General and administrative
costs 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 combination period. The CODM also reviews general and administrative costs to manage, maintain
and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. General and administrative costs, as
reported on the statement of operations, are the significant segment expenses provided to the CODM on a regular basis.
The CODM reviews earnings on 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.
All other segment items included in net income
or loss are reported on the statement 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 unaudited condensed financial statements were issued. Based
upon this review the Company did not identify any subsequent events that would have required adjustment or disclosure in the unaudited
condensed financial statements.
Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operations
References in this report (the “Quarterly
Report”) to “we,” “us” or the “Company” refer to LightWave Acquisition Corp. References to our
“management” or our “management team” refer to our officers and directors, and references to the “Sponsor”
refer to LightWave Founders LLC. The following discussion and analysis of the Company’s financial condition and results of operations
should be read in conjunction with the unaudited condensed financial statements and the notes thereto contained elsewhere in this Quarterly
Report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve
risks and uncertainties.
Special Note Regarding Forward-Looking Statements
This Quarterly Report includes “forward-looking
statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act that are not historical
facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All
statements, other than statements of historical fact included in this Form 10-Q including, without limitation, statements in this “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” regarding the completion of the Proposed Business Combination
(as defined below), the Company’s financial position, business strategy and the plans and objectives of management for future operations,
are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,”
“estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking
statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs,
based on information currently available. A number of factors could cause actual events, performance or results to differ materially from
the events, performance and results discussed in the forward-looking statements, including that the conditions of the Proposed Business
Combination are not satisfied. For information identifying important factors that could cause actual results to differ materially from
those anticipated in the forward-looking statements, please refer to the Risk Factors section of the Company’s final prospectus
for its Initial Public Offering filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities
filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities
law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information,
future events or otherwise.
Overview
We are a blank check company incorporated in the
Cayman Islands on January 22, 2025 formed 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”). 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 shares, debt or a combination of cash, shares 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.
Results of Operations
We have neither engaged in any operations nor
generated any revenues to date. Our only activities from January 22, 2025 (inception) through June 30, 2025 were organizational activities,
those necessary to prepare for the Initial Public Offering, described below, and identifying a target company for a Business Combination.
We do not expect to generate any operating revenues until after the completion of our Business Combination. We generate non-operating
income in the form of interest or dividend income on investments held in the Trust Account. We incur expenses as a result of being a public
company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.
For the three months ended June 30, 2025, we had
a net loss of $360,686, which consists of general and administrative costs of $87,167 and compensation expense of $372,000, offset by
earnings on investments held in the Trust Account of $98,309 and interest income from operating account of $172.
For the period from January 22, 2025 (inception)
through June 30, 2025, we had a net loss of $407,872, which consists of general and administrative costs of $134,353 and compensation
expense of $372,000, offset by earnings on investments held in the Trust Account of $98,309 and interest income from operating account
of $172.
Liquidity, Capital Resources and Going Concern
On June 26, 2025, we consummated Initial Public
Offering of 21,562,500 Units at $10.00 per Unit, which is discussed in Note 3, which includes the full exercise of the underwriters’
over-allotment option of 2,812,5000 Units, generating gross proceeds of $215,625,000. Simultaneously with the closing of the Initial Public
Offering, we consummated the sale of an aggregate of 606,250 Private Placement Units to the Sponsor and the underwriters of the Initial
Public Offering, at a price of $10.00 per unit, or $6,062,500 in the aggregate.
Following the Initial Public Offering, the full
exercise of the over-allotment option, and the sale of the Private Placement Units, a total of $215,625,000 was placed in the Trust Account.
We incurred $12,386,896 in Initial Public Offering related costs, consisting of $4,312,500 of cash underwriting fee, $7,546,875 of deferred
underwriting fee, and $527,521 of other offering costs.
For the period from January 22, 2025 (inception)
through June 30, 2025, cash used in operating activities was $62,454. Net loss of $407,872 was affected by earnings on investments held
in the Trust Account of $98,309 and compensation expense of $372,000. Changes in operating assets and liabilities provided $71,727 of
cash for operating activities.
As of June 30, 2025, we had investments held in
the Trust Account of $215,723,309 consisting of mutual funds invested in money market funds. We may withdraw earnings 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 earnings
on the Trust Account (less taxes payable, if any), 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.
As of June 30, 2025, we had cash of $1,140,316.
We intend to 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.
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 funds as may be required. If we complete a Business Combination, we would repay such
loaned amounts. 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 loaned amounts 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 convertible into private placement units of the post Business Combination entity at a price of $10.00
per Unitat the option of the lender.
In connection with the Company’s assessment
of going concern considerations in accordance with Accounting Standards Codification (“ASC”) 205-40, “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 the Company has sufficient
funds to finance the working capital needs of the Company within one year from the date of issuance of the financial statement.
Off-Balance Sheet Arrangements
We have no obligations, assets or liabilities,
which 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
We do not have any long-term debt, capital lease
obligations, operating lease obligations or long-term liabilities, other than an agreement to pay an affiliate to pay an aggregate of
$10,000 per month for office space, utilities and secretarial and administrative support. We began incurring these fees on June 26, 2025
and will continue to incur these monthly fees will cease upon the completion of the initial Business Combination or the liquidation of
the Company.
The underwriters had a 45-day option from the
date of the Initial Public Offering to purchase up to an additional 2,812,500 units to cover over-allotments, if any. On June 26,
2025, simultaneously with the closing of the Initial Public Offering, the underwriters elected to fully exercise the over-allotment option
to purchase the additional 2,812,500 Units at a price of $10.00 per Unit.
Critical Accounting Policies
The preparation of condensed financial statements
and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management
to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities
at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from
those estimates. We have identified the following critical accounting policies:
Recent Accounting Standards
In November 2023, the FASB issued ASU 2023-07,
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU require disclosures, on
an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”),
as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. The ASU requires that
a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment
profit or loss in assessing segment performance and deciding how to allocate resources. Public entities will be required to provide all
annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required
to provide all the disclosures required by the amendments in this ASU and existing segment disclosures in Topic 280. This ASU is
effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15,
2024, with early adoption permitted. The Company adopted ASU 2023-07 on January 22, 2025, date of incorporation.
In November 2024, the FASB issued Accounting Standards
Update (“ASU”) 2024-03, “Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic
220-40): Disaggregation of Income Statement Expenses”, requiring public entities to disclose additional information about specific
expense categories in the notes to the financial statements on an interim and annual basis. ASU 2024-03 is effective for fiscal years
beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, with early adoption permitted. The Company
is currently evaluating the impact of adopting ASU 2024-03.
Management does not believe that any other recently
issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed financial statements.
Item 3. Quantitative and Qualitative Disclosures
About Market Risk
Not required for smaller reporting companies.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Disclosure controls and procedures are designed
to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported
within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our
management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure.
Under the supervision and with the participation
of our management, including our principal executive officer and principal financial and accounting officer, we conducted an evaluation
of the effectiveness of our disclosure controls and procedures as of the end of the fiscal quarter ended June 30, 2025, as such term is
defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on this evaluation, our principal executive officer and principal
financial and accounting officer have concluded that during the period covered by this report, our disclosure controls and procedures
were effective at a reasonable assurance level and, accordingly, provided reasonable assurance that the information required to be disclosed
by us in reports filed under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the
SEC’s rules and forms.
Changes in Internal Control over Financial
Reporting
There was no change in our internal control over
financial reporting that occurred during the fiscal quarter of 2020 covered by this Quarterly Report on Form 10-Q that has materially
affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 1A. Risk Factors
Factors that could cause our actual results to
differ materially from those in this report include the risk factors described in our final prospectus for its Initial Public Offering
filed with the SEC. As of the date of this Report, there have been no material changes to the risk factors disclosed in our final prospectus
for its Initial Public Offering filed with the SEC.
Item 2. Unregistered Sales of Equity Securities
and Use of Proceeds.
On June 26, 2025, we consummated Initial Public
Offering of 21,562,500 units at $10.00 per unit, which is discussed in Note 3, which includes the full exercise of the underwriters’
over-allotment option of 2,812,5000 Units, generating gross proceeds of $215,625,000. BTIG acted as sole book-running manager and Roberts
& Ryan, Inc. acted as co-manager, of the Initial Public Offering. The securities in the offering were registered under the Securities
Act on registration statement on Form S-1 (No. 333-287412). The Securities and Exchange Commission declared the registration statements
effective on June 26, 2025.
Simultaneously with the closing of the Initial
Public Offering, the Sponsor and BTIG consummated the sale of an aggregate of 606,250 Private Placement Units to the Sponsor and the underwriters
of the Initial Public Offering, at a price of $10.00 per unit, or $6,062,500 in the aggregate. Each Unit consists of one Class A
ordinary share and one-half of one redeemable warrant. Of those 606,250 Private Placement Units, the Sponsor purchased 390,625 Private
Placement Units and the underwriters in the Initial Public Offering purchased 215,625 private Placement Units. Each whole warrant
entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share. The issuance was made pursuant to the
exemption from registration contained in Section 4(a)(2) of the Securities Act.
On June 26, 2025, we consummated Initial Public
Offering of 21,562,500 Units at $10.00 per Unit, which is discussed in Note 3, which includes the full exercise of the underwriters’
over-allotment option of 2,812,5000 Units, generating gross proceeds of $215,625,000. In connection with the underwriters’ exercise
of their over-allotment option, the Company also consummated the sale of an additional 606,250 Private Placement Units at $10.00 per Private
Unit, generating total proceeds of $6,062,500. A total of $215,625,000 was deposited into the Trust Account.
Of the gross proceeds received from the Initial
Public Offering, the exercise of the over-allotment option and the Private Placement Units, an aggregate of $215,625,000 was placed in
the Trust Account.
We paid a total of $12,386,896, consisting of
$4,312,500 of cash underwriting fee, $7,546,875 of deferred underwriting fee, and $527,521 of other offering costs related to the Initial
Public Offering.
For a description of the use of the proceeds generated
in our Initial Public Offering, see Part I, Item 2 of this Form 10-Q.
Item 3. Defaults Upon Senior Securities
None
Item 4. Mine Safety Disclosures
None
Item 5. Other Information
None
Item 6. Exhibits
The following exhibits are filed as part of, or
incorporated by reference into, this Quarterly Report on Form 10-Q.
No. |
|
Description of Exhibit |
1.1(1) |
|
Underwriting Agreement, dated June 24, 2025, by and between the Company and BTIG, LLC, as representative of the several underwriters. |
3.1(1) |
|
Amended and Restated Memorandum and Articles of Association of the Company. |
4.1(1) |
|
Warrant Agreement, dated June 24, 2025, by and between the Company and Continental Stock Transfer & Trust Company, as warrant agent. |
10.1(1) |
|
Investment Management Trust Agreement, June 24, 2025, by and between the Company and Continental Stock Transfer & Trust Company, as trustee. |
10.2(1) |
|
Registration Rights Agreement, dated June 24, 2025, by and among the Company and certain security holders. |
10.3(1) |
|
Private Placement Units Purchase Agreement, dated June 24, 2025, by and between the Company and the Sponsor. |
10.4(1) |
|
Private Placement Units Purchase Agreement, dated June 24, 2025, by and between the Company and BTIG LLC. |
10.5(1) |
|
Letter Agreement, dated June 24, 2025, by and among the Company, its officers, directors, and the Sponsor. |
10.6(1) |
|
Administrative Services Agreement, dated June 24, 2025, by and between the Company and LightWave Founders LLC. |
10.7(1) |
|
Form of Indemnity Agreement |
31.1* |
|
Certification of Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2* |
|
Certification of Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32.1* |
|
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
32.2* |
|
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS* |
|
XBRL Instance Document |
101.SCH* |
|
XBRL Taxonomy Extension Schema Document |
101.CAL* |
|
XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF* |
|
XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB* |
|
XBRL Taxonomy Extension Labels Linkbase Document |
101.PRE* |
|
XBRL Taxonomy Extension Presentation Linkbase Document |
104* |
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
* |
Filed herewith. |
(1) |
Previously filed as an exhibit to our Current Report on Form 8-K filed on June 30, 2025 and incorporated by reference herein. |
SIGNATURES
In accordance with the requirements
of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
LIGHTWAVE ACQUISITION CORP. |
|
|
|
Date: August 21, 2025 |
By: |
/s/ Robert Bennett |
|
Name: |
Robert Bennett |
|
Title: |
Chief Executive Officer |
|
|
(Principal Executive Officer) |
|
|
|
Date: August 21, 2025 |
By: |
/s/ William W. Bunker |
|
Name: |
William W. Bunker |
|
Title: |
Vice Chairman and Chief Financial Officer |
|
|
(Principal Financial And Accounting Officer) |
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