Financial Performance - The company reported a net income of $601,027 for the three months ended June 30, 2025, consisting of interest earned on marketable securities of $2,477,726, offset by operating costs of $1,489,307 and changes in fair value of FPA Liability of $387,392 [139]. - For the six months ended June 30, 2025, the company had a net income of $1,291,026, with interest earned on marketable securities totaling $4,940,590, and operating costs of $2,592,440 [140]. Marketable Securities and Trust Account - As of June 30, 2025, the company held marketable securities in the trust account amounting to $240,134,175, which will be used to complete the Business Combination [148]. - As of June 30, 2025, cash held outside the trust account was $124,083, available for working capital needs [149]. Business Combination - The company completed its Initial Public Offering on August 19, 2024, raising gross proceeds of $230,000,000 from the sale of 23,000,000 Units, including an over-allotment option [143]. - The company has entered into PIPE Subscription Agreements to issue 5,000,000 shares of Domesticated Common Stock at $10.00 per share, raising additional capital for the Business Combination [137]. - The Business Combination Agreement with Terrestrial Energy Inc. was unanimously approved and is expected to close in Q4 2025, subject to shareholder approvals [134]. - The company has until August 19, 2026, to complete the initial Business Combination, failing which it will trigger an automatic winding up and liquidation [150]. Liabilities and Financial Obligations - The fair value of the Forward Purchase Agreement liability as of June 30, 2025, was $1,057,124, subject to re-measurement at each balance sheet date [154]. - The company has no long-term debt or capital lease obligations, with a monthly payment of $15,000 to the Sponsor for office space and support services [156]. - The underwriter is entitled to a deferred underwriting discount of 4.40% on gross proceeds from the Initial Public Offering, totaling $10,720,000, payable upon completion of the initial Business Combination [157]. Accounting and Reporting - There are no critical accounting estimates disclosed as of June 30, 2025 [158]. - Management believes that recently issued accounting standards will not materially affect the company's financial statements [159]. - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures [161]. Acquisition Plans - The company expects to incur significant costs in pursuing its acquisition plans and cannot assure the success of completing a business combination [131].
HCM II Acquisition Corp.(HONDU) - 2025 Q2 - Quarterly Report