Business Context and Reporting Period
Company: White Pearl Acquisition Corp. (WPAC)
Reporting Period: Quarter and six months ended June 30, 2026
Business Type: Special Purpose Acquisition Company (SPAC) incorporated in the British Virgin Islands.
Status: The Company consummated its Initial Public Offering (IPO) on February 3, 2026. As of June 30, 2026, it has not commenced operations other than organizational activities and identifying a target for a Business Combination. It is classified as a shell company, smaller reporting company, and emerging growth company.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Three Months Ended June 30, 2026 |
|---|---|---|
| Net Income | $1,295,333 | $747,372 |
| Operating Loss | $(375,581) | $(291,766) |
| Interest Income (Trust Account) | $1,650,698 | $1,023,466 |
| Total Assets | $118,552,223 | - |
| Investments in Trust Account | $116,650,698 | - |
| Cash (Outside Trust) | $1,593,986 | - |
| Total Liabilities | $267,558 | - |
| Promissory Note (Related Party) | $170,551 | - |
| Working Capital | $1,633,967 | - |
Material Changes vs. Prior Period
- Capitalization: The Company completed its IPO on February 3, 2026, selling 11,500,000 Units (including full over-allotment) at $10.00 per unit, generating gross proceeds of $115,000,000. Simultaneously, it completed a Private Placement of 290,000 units to the Sponsor for $2,900,000.
- Trust Account: $115,000,000 was deposited into the Trust Account at IPO. By June 30, 2026, the balance grew to $116,650,698 due to interest income.
- Profitability: The Company transitioned from a net loss of $3,601 for the period from inception (June 27, 2025) through June 30, 2025, to a net income of $1,295,333 for the six months ended June 30, 2026. This shift is primarily driven by interest income earned on the Trust Account.
- Liabilities: Current liabilities increased from $140,123 at December 31, 2025, to $267,558 at June 30, 2026, driven by the accrual of administrative fees and increases in the related-party promissory note.
Outlook, Risks, and Management Commentary
- Business Combination Deadline: The Company has until August 3, 2027 (18 months from IPO) to consummate an initial Business Combination. If unsuccessful, it will liquidate and redeem public shares.
- Going Concern: Management has determined that the mandatory liquidation requirement if a Business Combination is not completed raises substantial doubt about the Company's ability to continue as a going concern. Financial statements do not include adjustments related to this uncertainty.
- Liquidity: Post-IPO liquidity is satisfied by proceeds held outside the Trust Account ($1,593,986 as of June 30, 2026). The Sponsor has agreed to loan up to $350,000 for IPO expenses (currently $170,551 outstanding) and may provide additional working capital loans up to $1,150,000, which may be convertible into units.
- Risks: Risks include the inability to complete a Business Combination, market volatility, geopolitical conflicts (e.g., Russia/Ukraine, Middle East), and the potential for rights to expire worthless if liquidation occurs.
Investor Verification Checklist
- Trust Account Balance: Verify the current balance of $116,650,698 and the interest rate environment affecting future accruals.
- Related Party Obligations: Confirm the status of the $170,551 promissory note and the $50,000 accrued administrative fee owed to the Sponsor.
- Share Structure: Note that 11,500,000 Class A shares are subject to redemption, while 3,833,333 Class B Founder Shares and 43,125 Representative Shares are not.
- Extension Options: Review the Company's charter for provisions regarding extensions of the 18-month completion window and associated costs.
- Going Concern Status: Monitor management's progress in identifying a target, as failure to close a deal by August 3, 2027, triggers mandatory liquidation.