Business Context and Reporting Period
Company: Harvard Ave Acquisition Corporation (SPAC)
Reporting Period: Quarter ended June 30, 2026
Status: The Company is a blank check company incorporated in the Cayman Islands, formed to effect a business combination. As of the reporting date, it has not commenced operations. The Company consummated its Initial Public Offering (IPO) on October 24, 2025, and has 18 months (extendable to 24 months) to complete a business combination.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | Balance Sheet (June 30, 2026) |
|---|---|---|---|
| Net Income (Loss) | $1,064,438 | $2,199,674 | N/A |
| Operating Costs | $(247,629) | $(409,576) | N/A |
| Interest Income (Trust Account) | $1,312,067 | $2,609,250 | N/A |
| Trust Account Balance | N/A | N/A | $148,612,304 |
| Total Assets | N/A | N/A | $149,459,835 |
| Total Liabilities | N/A | N/A | $4,971,897 |
| Working Capital | N/A | N/A | $225,634 |
| Redeemable Shares | N/A | N/A | 14,500,000 ($10.25/share) |
Material Changes vs. Prior Period
- Profitability Shift: The Company reported a net income of $1,064,438 for the three months ended June 30, 2026, compared to a net loss of $42,348 for the same period in 2025. This reversal is driven entirely by interest income earned on the Trust Account ($1,312,067), as the Company had no Trust Account balance in the prior year.
- Operating Expenses: Formation and operating costs increased significantly to $247,629 for the quarter (vs. $42,348 in 2025) due to post-IPO compliance and search activities.
- Trust Account Growth: The Trust Account balance increased from $146,003,054 at December 31, 2025, to $148,612,304 at June 30, 2026, reflecting accrued interest.
- Related Party Receivable: Decreased from $965,240 to $770,645, representing cash held in a bank account owned by a related party to the Sponsor.
Outlook, Risks, and Management Commentary
- Going Concern: Management has raised substantial doubt about the Company's ability to continue as a going concern within one year. The Company relies on completing a business combination to avoid liquidation.
- Deadline: The Company must complete a business combination by October 24, 2027 (18 months from IPO), or extend to 24 months if shareholders approve.
- Liquidity: The Company has $770,645 in related party receivables available for working capital. If insufficient, Sponsors may provide working capital loans (up to $3,000,000 convertible to units).
- Deferred Fees: A deferred underwriting fee of $4,350,000 is payable upon the completion of a business combination. If no combination occurs, this fee is forfeited.
- Controls: Management concluded that disclosure controls and procedures were not effective as of June 30, 2026.
- Risks: Geopolitical instability (Russia-Ukraine, Israel-Hamas) and market volatility are cited as potential risks to finding a target.
Investor Verification Checklist
- Trust Account Yield: Verify the interest rate environment and the specific yield on the $148.6M held in the Trust Account to assess future accretion.
- Related Party Receivable: Confirm the timeline for the Company to gain direct ownership of the $770,645 held in the Sponsor-related bank account.
- Extension Mechanics: Review the specific terms required to extend the business combination deadline beyond 18 months and the associated costs.
- Internal Controls: Investigate the specific deficiencies leading to the conclusion that disclosure controls were ineffective.
- Redemption Value: Monitor the per-share redemption value ($10.25 as of June 30, 2026) against the $10.00 IPO price to gauge shareholder sentiment.