Business Context and Reporting Period
Company: Cambridge Acquisition Corp. (CAQ)
Filing Type: Form 10-Q (Unaudited)
Period Ended: June 30, 2026
Business Status: Special Purpose Acquisition Company (SPAC) incorporated in the Cayman Islands. The Company consummated its Initial Public Offering (IPO) on February 9, 2026, and is currently in the pre-business combination phase, searching for a target. No operating revenues have been generated.
Key Financial Metrics
| Metric | Value (as of/for period ended June 30, 2026) |
|---|---|
| Trust Account Balance | $233,182,130 (Includes ~$3.18M interest income) |
| Cash (Outside Trust) | $866,504 |
| Working Capital | $848,532 |
| Net Income (6 Months) | $2,677,994 |
| Net Income (3 Months) | $2,167,732 |
| Operating Expenses (6 Months) | $504,136 |
| Deferred Underwriting Fee | $8,050,000 (Payable upon Business Combination) |
| Shares Outstanding | 23,495,500 Class A; 7,666,667 Class B |
Material Changes vs. Prior Period
- Capitalization: The Company transitioned from a pre-IPO shell to a public entity. Total assets increased from $69,606 (Dec 31, 2025) to $234,200,414 (June 30, 2026) following the IPO and Private Placement.
- Trust Account: Established with $230,000,000 in gross proceeds from the IPO. As of June 30, 2026, the balance grew to $233,182,130 due to interest earned on U.S. Treasury securities and money market funds.
- Profitability: The Company reported a net income of $2,677,994 for the six months ended June 30, 2026, driven entirely by interest income ($3,182,130) offset by formation and administrative costs ($504,136). There was no operating income.
- Liabilities: Total liabilities increased to $8,331,100, primarily due to the recognition of the $8,050,000 deferred underwriting fee and $150,000 in deferred consulting fees.
Outlook, Risks, and Management Commentary
- Combination Deadline: The Company has until February 9, 2028 (24 months from IPO) to consummate a Business Combination. Failure to do so will result in liquidation and redemption of Public Shares.
- Liquidity: Management believes current working capital ($866,504 outside Trust) is sufficient to fund operations for at least one year. The Sponsor may provide Working Capital Loans up to $1,500,000 if needed, which may be convertible into units.
- Contingent Liabilities:
- Finder's Fee: A potential $3,000,000 fee is payable to an advisor upon signing or closing a definitive transaction. No liability is currently recorded as no target has been identified.
- Deferred Fee: $8,050,000 is owed to underwriters upon successful completion of a Business Combination.
- Risks: The Company faces risks related to the inability to find a suitable target, market conditions, and the potential for the Trust Account to be deemed an investment company under the Investment Company Act of 1940. The Sponsor has agreed to indemnify the Trust Account against certain third-party claims, though the Company has not verified the Sponsor's ability to satisfy this obligation.
Investor Verification Checklist
- Trust Account Yield: Verify the current interest rate environment and its impact on the redemption value per share (currently $10.14).
- Combination Timeline: Confirm the remaining time (approx. 19 months) to complete a Business Combination before the February 9, 2028 deadline.
- Deferred Fees: Note the $8,050,000 deferred underwriting fee and the potential $3,000,000 finder's fee, which will reduce net proceeds available to the combined entity.
- Share Structure: Verify the 25% ownership stake held by Class B Founder Shares (7,666,667 shares) relative to the total post-combination capitalization.
- Redemption Rights: Understand that Public Shareholders have the right to redeem shares for their pro-rata share of the Trust Account upon a Business Combination or liquidation.