Business Context and Reporting Period
Company: Stellar V Capital Corp. (Cayman Islands)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: June 30, 2026
Business Model: The Company is a blank check company (SPAC) incorporated on July 12, 2024, for the purpose of effecting a merger, share exchange, or asset acquisition. As of the reporting date, the Company has not commenced operations and has no operating revenue. Its primary activity is identifying a target for a Business Combination.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Three Months Ended June 30, 2026 |
|---|---|---|
| Net Income | $2,024,410 | $823,386 |
| Operating Loss | $(760,256) | $(577,060) |
| Interest Income (Trust Account) | $2,784,666 | $1,400,446 |
| Cash and Cash Equivalents | $61,051 | $61,051 |
| Trust Account Balance | $159,509,307 | $159,509,307 |
| Working Capital Deficit | $(433,116) | $(433,116) |
| Debt (Convertible Note) | $50,000 | $50,000 |
| Deferred Underwriting Fee | $5,250,000 | $5,250,000 |
Material Changes vs. Prior Period
- Operating Expenses: General and administrative costs increased significantly to $760,256 for the six months ended June 30, 2026, compared to $357,135 in the same period in 2025. This reflects increased costs associated with being a public company and searching for a target.
- Net Income: Net income decreased to $2,024,410 for the six months ended June 30, 2026, from $2,418,144 in the prior year period. The decrease is primarily due to higher operating expenses, partially offset by higher interest income.
- Trust Account Growth: The Trust Account balance increased from $156,724,641 at December 31, 2025, to $159,509,307 at June 30, 2026, driven by interest earnings of $2,784,666.
- Liquidity: Cash held outside the Trust Account decreased from $354,108 to $61,051, resulting in a working capital deficit of $433,116.
Outlook, Risks, and Management Commentary
- Going Concern: Management has raised substantial doubt about the Company's ability to continue as a going concern. The Company lacks sufficient financial resources to sustain operations for one year from the issuance date. If a Business Combination is not completed by the mandatory liquidation date of October 31, 2026, the Company will cease operations and liquidate.
- Capital Resources: To fund working capital deficiencies, the Sponsor or affiliates may provide "Working Capital Loans" up to $1.5 million, which may be converted into units. As of June 30, 2026, the Company has a $50,000 outstanding balance on a convertible promissory note with a related party (Nautilus Energy Management Corp.), with $150,000 remaining available.
- Redemption Rights: Public shareholders have the right to redeem their shares for a pro-rata portion of the Trust Account upon the completion of a Business Combination or if the Company fails to complete one within the Combination Period.
- Risk Factors: The filing highlights risks related to geopolitical instability (Russia-Ukraine, Israel-Hamas conflicts), market volatility, and the uncertainty of completing a Business Combination.
Investor Verification Checklist
- Liquidation Deadline: Verify the mandatory liquidation date of October 31, 2026, and the Company's progress in identifying a target.
- Working Capital: Confirm the sufficiency of the $61,051 cash balance and the availability of related-party loans to fund operations until the deadline.
- Trust Account Value: Monitor the Trust Account balance ($159.5M) and the per-share redemption value ($10.63 as of June 30, 2026).
- Deferred Fees: Note the $5.25 million deferred underwriting fee payable only upon a successful Business Combination.
- Related Party Transactions: Review the $50,000 convertible note and the $10,000 monthly administrative fee paid to Nautilus Energy Management Corp.