Financial Performance - The company reported a net loss of $152,231 for the three months ended June 30, 2025, primarily due to operating costs of $262,245 and changes in the fair value of warrant liabilities of $656,040, offset by interest income of $689,016[172]. - For the six months ended June 30, 2025, the company had a net income of $407,633, driven by interest earned on cash and marketable securities of $1,361,827, despite incurring operating costs of $457,632 and changes in the fair value of warrant liabilities of $578,176[174]. - As of June 30, 2025, cash used in operating activities was $257,068, with net income of $407,633 impacted by interest earned on cash and marketable securities held in the trust account[180]. - The company has not generated any operating revenues to date and only incurs expenses related to being a public company and due diligence for potential business combinations[171]. Initial Public Offering - The company completed its initial public offering on May 10, 2022, raising total gross proceeds of $230,000,000 from the sale of 23,000,000 units at $10.00 per unit[177]. - The company incurred transaction costs of $16,804,728 during the initial public offering, which included $4,600,000 in underwriting commissions and $11,500,000 in deferred underwriting commissions[179]. Trust Account and Cash Management - Following the First Extension Charter Amendment, approximately $172.4 million remained in the trust account after 7,129,439 Class A ordinary shares were redeemed at a price of approximately $10.86 per share, totaling about $77.4 million[163]. - As of June 30, 2025, the company had cash and marketable securities of $87,027,424 in the trust account, including approximately $23,977,628 of interest income[182]. - The company had $229,632 in cash held outside the trust account available for working capital needs as of June 30, 2025[183]. - The company has a working capital deficit of $4,345,203 as of June 30, 2025[190]. Business Combination and Extensions - The Second Extension Charter Amendment allowed the company to extend the deadline for consummating a business combination to November 5, 2025, with the sponsor required to deposit $250,000 for each one-month extension after May 5, 2025[164]. - The company issued an unsecured promissory note to the sponsor for $2,400,000 in connection with the Second Extension Charter Amendment, with monthly payments of $150,000 made to extend the business combination deadline[166]. - The company drew an aggregate of $1,800,000 from the First Extension Note to extend the business combination period, with $150,000 drawn at each extension date[186]. - The company issued unsecured promissory notes totaling $2,000,000 to the sponsor between October 2023 and May 2025, with the principal payable upon the consummation of the initial business combination[185]. Shareholder Equity and Redemption - The company eliminated the Redemption Limitation, allowing for the redemption of Class A ordinary shares without the constraint of maintaining net tangible assets of at least $5,000,001[167]. - All 7,249,712 Class A ordinary shares are subject to redemption provisions, classified as temporary equity outside of shareholders' deficit[199]. - The company recognizes changes in redemption value immediately and adjusts the carrying value of redeemable ordinary shares accordingly[200]. - The company complies with FASB ASC Topic 260 for net income per share calculations, sharing earnings and losses pro rata between Class A and Class B ordinary shares[201]. Legal and Advisory Services - The company has engaged a legal advisor for services related to the consummation of an initial business combination, with fees contingent upon success[195]. - The company has no long-term debt obligations or off-balance sheet arrangements as of June 30, 2025[192][193].
Cartesian Growth II(RENE) - 2025 Q2 - Quarterly Report