Financial Performance - The company reported a net loss of $134,902 for the nine months ended September 30, 2025, compared to a net loss of $16,341 for the same period in 2024, indicating an increase in losses of approximately 726.5%[14]. - For the three months ended September 30, 2025, the Company reported a net loss of $25,103, while for the nine months ended September 30, 2025, the net loss was $134,902[102]. - The company’s accumulated deficit increased to $197,593,000 as of September 30, 2025, compared to $62,691,000 as of December 31, 2024, reflecting a significant increase in losses[11]. - The net cash used in operating activities for the nine months ended September 30, 2025, was $104,349,000, compared to $40,091,000 for the same period in 2024[21]. - The Company lacks sufficient financial resources to sustain operations for a reasonable period, raising substantial doubt about its ability to continue as a going concern[110]. Assets and Cash Position - As of September 30, 2025, total assets amounted to $174,160,000, a decrease from $213,223,000 as of December 31, 2024, representing a decline of approximately 18.3%[11]. - Cash at the end of the period was $49,796,000, down from $129,309,000 at the beginning of the period, reflecting a decrease of about 61.5%[21]. - As of September 30, 2025, the Company had $49,796 in cash and a working capital deficit of $296,957[37]. IPO and Fundraising - The company completed its IPO on October 8, 2025, raising gross proceeds of $115,000,000 from the sale of 11,500,000 units at $10.00 per unit[25]. - The Company completed its IPO on October 8, 2025, selling 11,500,000 units at $10.00 per unit, generating gross proceeds of $115,000,000[103]. - The private placement of 360,000 units generated total proceeds of $3,600,000, with 245,000 units going to the Sponsor and 115,000 units to the underwriter[88]. - The funds from the IPO and Private Placement are intended to be used primarily for completing the business combination and financing operations of the target business[106]. Transaction Costs - Transaction costs related to the IPO totaled $7,370,254, which included a cash underwriting fee of $2,300,000 and a deferred underwriting fee of $4,600,000[27]. - Total transaction costs amounted to $7,370,254, including $2,300,000 in cash underwriting commissions paid at the IPO closing[131]. - The underwriters received a cash underwriting discount of 2% of the gross proceeds, amounting to $2.3 million, with a deferred fee of up to $4.6 million contingent on completing a Business Combination[74]. Business Operations and Future Plans - The company has not commenced any operations as of September 30, 2025, and will not generate operating revenues until after completing a business combination[24]. - The Company must complete a business combination with a fair market value equal to at least 80% of the net assets held in the Trust Account[28]. - The Company has until April 8, 2027, to complete its initial Business Combination, or it will trigger an automatic winding up and liquidation[38]. - The Company has not generated any revenues to date and does not expect to do so until after completing a business combination[100]. - The Company expects to generate non-operating income from interest on marketable securities held in the Trust Account[101]. Shareholder Information - The Company has issued 3,833,333 Class B ordinary shares, with an additional paid-in capital of $25,000[17]. - As of September 30, 2025, the Company had 3,833,333 Class B ordinary shares issued and outstanding, with no shares subject to forfeiture due to the full exercise of the underwriter's over-allotment option[66][77]. - The Company is authorized to issue a total of 200,000,000 Class A ordinary shares, with none issued or outstanding as of September 30, 2025[76]. Loans and Financial Instruments - The Company has received loans from the Sponsor totaling $300,000 as of September 30, 2025, to cover transaction costs related to the IPO[37]. - The Promissory Note from the Sponsor amounted to $300,000 as of September 30, 2025, with an extension of the due date to September 17, 2026[68]. - The fair value of the Company's financial instruments approximates their carrying amounts due to their short-term nature[51]. Regulatory and Compliance - The Company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from reporting requirements[43]. - The Company has no income tax provision as it is not subject to income taxes in the British Virgin Islands or the United States[59]. - The Company recognized no unrecognized tax benefits or accrued interest and penalties as of September 30, 2025[58]. - The registration rights agreement allows holders to demand registration of their securities up to three times, with certain conditions[113]. Risks and Uncertainties - The Company is subject to risks and uncertainties that could adversely affect its ability to complete a business combination, including geopolitical tensions and economic volatility[94]. - The Company has not incurred any long-term debt or capital lease obligations[112]. - The Company has no off-balance sheet arrangements as of September 30, 2025[111].
Lake Superior Acquisition Corp(LKSPU) - 2025 Q3 - Quarterly Report