Business Context and Reporting Period
Company: CSLM Digital Asset Acquisition Corp III, Ltd (KOYN)
Reporting Period: Quarterly period ended June 30, 2026
Business Status: The Company is a Cayman Islands exempted blank check company (SPAC) formed to effect a business combination. As of June 30, 2026, it has not commenced operations. The Company consummated its Initial Public Offering (IPO) on August 28, 2025, raising $230,000,000 in gross proceeds, with funds held in a Trust Account invested in U.S. Treasury securities.
Key Financial Metrics
| Metric | As of/For Period Ended June 30, 2026 | As of/For Period Ended Dec 31, 2025 |
|---|---|---|
| Cash and Cash Equivalents | $2,469,590 | $3,108,288 |
| Trust Account Balance | $237,411,325 | $233,253,391 |
| Total Assets | $240,010,800 | $236,485,789 |
| Total Liabilities | $10,082,025 | $9,409,558 |
| Working Capital | $1,705,532 | $2,973,730 |
| Net Income (6 Months) | $2,852,544 | N/A (IPO closed Aug 2025) |
| Net Income (3 Months) | $1,509,367 | N/A |
| Deferred Underwriting Commissions | $9,200,000 | $9,200,000 |
Revenue: The Company has no operating revenue. Net income is derived entirely from interest income on the Trust Account ($4,157,934 for the six months ended June 30, 2026) and money market funds.
Material Changes vs. Prior Period
- Profitability: The Company reported a net income of $2,852,544 for the six months ended June 30, 2026, compared to a net loss of $92,262 for the same period in 2025. This shift is due to the IPO closing in August 2025, generating significant interest income on the Trust Account.
- Trust Account Growth: The Trust Account balance increased by approximately $4.16 million ($233.25M to $237.41M) due to accrued interest income.
- Liabilities: Current liabilities increased from $209,558 to $882,025, driven by accrued expenses and new related party payables (consulting services and due to related party).
- Cash Position: Cash and cash equivalents outside the Trust Account decreased by approximately $639,000, reflecting operating cash outflows of $638,698 for the six-month period.
Outlook, Risks, and Management Commentary
- Going Concern: Management states that the Company's liquidity needs are met by cash outside the Trust Account. However, the filing explicitly states that these conditions raise "substantial doubt about the Company's ability to continue as a going concern" one year from the issuance date if a business combination is not consummated.
- Completion Window: The Company has 24 months from the IPO closing (August 28, 2025) to complete a business combination. If unsuccessful, the Company will liquidate and redeem public shares.
- Related Party Obligations: The Company pays $30,000 per month to the Sponsor for administrative services. As of June 30, 2026, there were outstanding related party payables of approximately $79,373 for consulting services and $35,000 due to the Sponsor.
- Internal Controls: Management identified a material weakness in internal controls over financial reporting as of June 30, 2026, citing a lack of properly designed and implemented controls. A remediation plan is in progress.
- Warrants: There are 11,500,000 Public Warrants and 445,625 Private Placement Warrants outstanding, exercisable at $11.50 per share.
Investor Verification Checklist
- Trust Account Yield: Verify the current interest rate environment and its impact on the Trust Account balance, which directly affects the redemption value per share.
- Going Concern Status: Assess the Company's cash burn rate outside the Trust Account against the remaining time in the 24-month completion window.
- Related Party Transactions: Review the specific terms of the administrative services agreement ($30k/month) and consulting agreements to understand ongoing cash outflows.
- Internal Control Remediation: Monitor the progress of the remediation plan for the identified material weakness in internal controls.
- Redemption Risk: Evaluate the likelihood of significant shareholder redemptions upon a potential business combination, which would reduce the funds available for the transaction.