Financial Performance - The Company had net income of $1,927,839 for the three months ended September 30, 2025, consisting of interest earned on marketable securities of $2,508,797, offset by operating costs of $1,638,082[143] - For the nine months ended September 30, 2025, the Company reported net income of $3,218,865, which includes interest earned of $7,449,387 and operating costs of $4,230,522[144] - The Company incurred cash used in operating activities of $1,055,702 for the nine months ended September 30, 2025[151] Marketable Securities and Cash - As of September 30, 2025, the Company held marketable securities in the trust account amounting to $242,642,972, which will be used to complete the Business Combination[153] - As of September 30, 2025, the Company had cash held outside the trust account of $350,389 available for working capital needs[154] - As of September 30, 2025, the fair value of the forward purchase derivative liability was $0[158] Business Combination - The Business Combination Agreement with Terrestrial Energy Inc. was entered into on March 26, 2025, and is expected to close in the fourth quarter of 2025, pending shareholder approvals[138] - The Business Combination Agreement was unanimously approved by the boards of directors of both the Company and Terrestrial Energy[138] - The Company has until August 19, 2026, to complete the initial Business Combination, after which it will face mandatory liquidation if not completed[155] Initial Public Offering - 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[148] - The underwriter is entitled to a deferred underwriting discount of 4.40% of gross proceeds from the Initial Public Offering, totaling $10,720,000, payable upon completion of the initial Business Combination[162] Financing Plans - The Company plans to issue 5,000,000 shares of Domesticated Common Stock at $10.00 per share as part of the PIPE Financing, raising an additional $50,000,000[141] Debt and Obligations - The company has no off-balance sheet arrangements or obligations as of September 30, 2025[159] - There are no long-term debts or capital lease obligations, with a monthly payment of $15,000 to the Sponsor for office space and services[161] Accounting and Reporting - Management does not have any critical accounting estimates to disclose as of September 30, 2025[163] - Recent accounting standards are not expected to materially affect the company's financial statements[164] - The company is classified as a smaller reporting company and is not required to provide additional market risk disclosures[166]
HCM II Acquisition Corp.(HONDU) - 2025 Q3 - Quarterly Report