Aldel Financial II Inc.(ALDF) - 2025 Q2 - Quarterly Report

PART I – FINANCIAL INFORMATION Item 1. Financial Statements This section presents Aldel Financial II Inc.'s unaudited financial statements for June 30, 2025, including Balance Sheets, Statements of Operations, Stockholders' Equity, and Cash Flows, with detailed notes Balance Sheets The balance sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity | ASSETS | | | :--- | :--- | | Current assets | | | Cash | $809,438 | | Prepaid expense | $224,895 | | Total current assets | $1,034,333 | | Investment held in trust account | $238,078,777 | | TOTAL ASSETS | $239,113,110 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | Current liabilities | | | Accounts payable | $57 | | TOTAL LIABILITIES | $57 | | STOCKHOLDERS' EQUITY | | | Total Stockholders' Equity | $1,034,276 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $239,113,110 | - Total assets increased from $234,493,592 at December 31, 2024, to $239,113,110 at June 30, 2025, primarily due to an increase in investment held in the trust account[8] - Current liabilities, specifically accounts payable, significantly decreased from $22,027 at December 31, 2024, to $57 at June 30, 2025[8] Statements of Operations The statements of operations detail the company's financial performance, showing net income primarily from trust account investment income, offset by expenses | Metric | For the six months period ended June 30, 2025 | For the three months period ended June 30, 2025 | | :--- | :--- | :--- | | General and administrative expenses | $270,787 | $105,958 | | Loss from operations | $(270,787) | $(105,958) | | Investment income on trust account | $4,912,276 | $2,495,957 | | Total other income | $4,912,276 | $2,495,957 | | Net income | $4,641,489 | $2,389,999 | | Basic income per share, redeemable shares | $0.20 | $0.10 | | Diluted income per share, redeemable shares | $0.14 | $0.070 | | Basic and diluted loss per non-redeemable share | $(0.009) | $(0.004) | - Net income for the six months ended June 30, 2025, was $4,641,489, primarily from investment income on the trust account[11] - Basic income per redeemable share was $0.20 for the six-month period and $0.10 for the three-month period ended June 30, 2025[11] Statement of Changes in Stockholders' Equity This statement outlines changes in stockholders' equity for the six months ended June 30, 2025, reflecting accretion of Class A ordinary shares and net income | Metric | Balance at December 31, 2024 (audited) | Balance at June 30, 2025 | | :--- | :--- | :--- | | Total Stockholders' Equity | $1,305,063 | $1,034,276 | | Accumulated Deficit | $1,304,376 | $1,033,589 | | Net Income (for the period) | N/A | $4,641,489 | | Accretion of Class A ordinary shares subject to possible redemption | N/A | $(4,912,276) | - Total Stockholders' Equity decreased from $1,305,063 at December 31, 2024, to $1,034,276 at June 30, 2025[14] - The decrease is primarily due to the accretion of Class A ordinary shares subject to possible redemption, partially offset by net income[14] Statements of Cash Flows The statements of cash flows summarize cash inflows and outflows from operating, investing, and financing activities for the six months ended June 30, 2025 | Cash Flow Activity | For the six months period ended June 30, 2025 | | :--- | :--- | | Net income | $4,641,489 | | Net cash used in operating activities | $4,717,629 | | Net cash used in investing activities | $(4,912,276) | | Net cash provided by Financing activities | $0 | | Net increase in cash | $(194,647) | | Cash at beginning of period | $1,004,085 | | Cash at end of period | $809,438 | - The company experienced a net decrease in cash of $194,647 for the six months ended June 30, 2025, resulting in a cash balance of $809,438[17] - Investing activities, primarily investment in the trust account, were the main use of cash, totaling $(4,912,276)[17] NOTES TO THE FINANCIAL STATEMENTS These notes provide detailed explanations and disclosures for the financial statements, covering business operations, accounting policies, IPO, private placement, related party transactions, and equity structure NOTE 1. DESCRIPTION OF ORGANIZATION AND BUSINESS OPERATIONS Aldel Financial II Inc. is a blank check company formed on July 15, 2024, for a business combination, primarily in financial services, completing its IPO on October 23, 2024, and placing $231,150,000 into a trust account - Aldel Financial II Inc. was incorporated on July 15, 2024, as a blank check company to pursue a business combination, with an intent to focus on the financial services industry[20][85] - The company consummated its IPO on October 23, 2024, issuing 23,000,000 units at $10.00 per unit, generating gross proceeds of $230,000,000[22][87] - As of June 30, 2025, the company had not commenced any operations, with all activities related to its formation, IPO, and target search for a Business Combination; non-operating income is generated from interest on IPO proceeds held in the Trust Account[21][86] - Following the IPO, $231,150,000 ($10.05 per Unit) from the IPO and private placement proceeds were placed in a Trust Account, invested in U.S. government securities[27][92] NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES This note details the company's significant accounting policies, including GAAP basis, emerging growth company status, use of estimates, trust account treatment, common stock redemption, deferred offering costs, income taxes, earnings per share, fair value measurements, operating segments, and recently issued accounting standards - The financial statements are presented in U.S. Dollars in conformity with GAAP and SEC rules[36][117] - The Company is an 'emerging growth company' and has elected not to opt out of the extended transition period for complying with new or revised financial accounting standards[37][38][118] - Ordinary shares subject to possible redemption are classified as temporary equity at redemption value, with changes recognized immediately[46][47][122] - The company operates as one operating segment, with financial information regularly evaluated by the CEO and CFO[60] - No income taxes are levied on the Company by the Government of the Cayman Islands, thus not reflected in financial statements[51][128] NOTE 3. INITIAL PUBLIC OFFERING The company's IPO was declared effective on October 21, 2024, and consummated on October 23, 2024, raising $230,000,000 from the sale of 23,000,000 units at $10.