Financial Performance - The company reported a net income of $383,558 for the three months ended June 30, 2025, compared to a net loss of $59,919 for the same period in 2024, indicating a significant turnaround[10] - Basic and diluted net income per share for ordinary shares subject to redemption was $0.05 for the three months ended June 30, 2025, compared to a loss of $0.03 for the same period in 2024[10] - For the three months ended June 30, 2025, the Company reported a net income of $293,914, resulting in a basic and diluted net income per share of $0.05[51] - The Company had a net income of $788,235 for the six months ended June 30, 2025, consisting of a loss of $494,912 from formation and operating costs, offset by $1,276,187 earned from interest on the Trust Account[93] Assets and Liabilities - Total assets as of June 30, 2025, amounted to $62,363,183, a slight increase from $61,412,987 as of December 31, 2024, representing a growth of approximately 1.5%[7] - Total liabilities as of June 30, 2025, were $2,210,609, a marginal increase from $2,203,025 as of December 31, 2024[7] - The accumulated deficit increased to $(2,030,252) as of June 30, 2025, from $(1,542,300) as of December 31, 2024, indicating a growing financial challenge[12] - As of June 30, 2025, the Company had cash and investments held in the Trust Account amounting to $62,028,266, which will be used to complete the Business Combination[98] Cash Flow and Investments - Cash and investments held in the trust account increased to $62,028,266 as of June 30, 2025, up from $60,752,079 as of December 31, 2024, reflecting a growth of approximately 2.1%[7] - As of June 30, 2025, the Company had $183,418 in its operating bank account and working capital of $203,540, indicating potential liquidity concerns[32] - The Company has not engaged in any operations or generated revenues to date, with expectations to generate non-operating income from interest on cash and investments held in the Trust Account[92] IPO and Financing - The initial public offering (IPO) generated gross proceeds of $60,000,000 from the issuance of 6,000,000 units[24] - The Company deposited $60,000,000 from its Initial Public Offering into a Trust Account, which will be invested in U.S. government securities until a Business Combination is completed or funds are distributed to shareholders[27] - The Company incurred offering costs of $3,722,528 related to the IPO, which were charged to additional paid-in capital[43] - The Company generated gross proceeds of $60,000,000 from the IPO at a price of $10.00 per Unit, along with an additional $2,300,000 from the sale of 230,000 Private Placement Units[95] Operational Costs - The company incurred formation and operating costs of $259,113 for the three months ended June 30, 2025, compared to $59,919 for the same period in 2024, showing an increase in operational expenses[10] - The Company incurred transaction costs of $3,722,528 related to the IPO, including $1,200,000 in cash underwriting fees and $2,100,000 in deferred underwriting fees[96] Business Strategy and Future Outlook - The Company has until 12 months from the closing of the IPO to complete a business combination, with a possible extension of up to 21 months[26] - The Company entered into a Merger Agreement on July 11, 2025, with Mango Group and North Water, indicating a strategic move towards business combination[89] - The management estimates potential insufficient funds to sustain operations prior to the initial business combination, raising concerns about the Company's ability to continue as a going concern[103] Related Party Transactions - The Company engaged TenX Global Capital LP as a related party consultant, with $150,000 paid for services from inception through December 31, 2024[77] - The Company has a promissory note with the Sponsors for up to $300,000, which expired upon the consummation of the IPO with no amounts outstanding[74] Regulatory and Compliance - The Company is classified as an "emerging growth company," allowing it to take advantage of certain reporting exemptions[35] - The Company has established that no recently issued accounting standards will materially affect its financial statements[64] - The Company has not identified any critical accounting estimates that could materially affect its financial statements[118]
Cayson Acquisition Corp(CAPN) - 2025 Q2 - Quarterly Report