Business Context and Reporting Period
Company: Cambridge Acquisition Corp. (CAQ)
Filing Type: Form 10-Q (Unaudited)
Period Ended: March 31, 2026
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 searching for a target business for a Business Combination. It has not commenced any operations other than organizational activities and the search for a target.
Key Financial Metrics
| Metric | Value (Three Months Ended March 31, 2026) |
|---|---|
| Revenue | $0 (No operating revenue) |
| Net Income | $510,262 |
| Interest Income (Trust Account) | $761,174 |
| Operating Expenses | $250,912 |
| Cash (Outside Trust) | $949,401 |
| Trust Account Balance | $230,761,174 |
| Working Capital | $995,522 |
| Deferred Underwriting Fee | $8,050,000 |
| Shares Outstanding (Class A) | 23,495,500 (23,000,000 Public + 495,500 Private) |
| Shares Outstanding (Class B) | 7,666,667 |
Material Changes vs. Prior Period
- Capitalization: The Company transitioned from a pre-IPO shell to a public entity. Total assets increased from $69,606 as of December 31, 2025, to $231,911,849 as of March 31, 2026, driven by the IPO proceeds.
- Trust Account: $230,000,000 was deposited into Trust Accounts upon the closing of the IPO on February 9, 2026. As of March 31, 2026, the balance grew to $230,761,174 due to interest earnings.
- Liabilities: Current liabilities increased to $100,267, and significant non-current liabilities were recorded, including an $8,050,000 deferred underwriting fee payable upon a Business Combination.
- Equity: Shareholders' deficit increased to $(7,059,592) primarily due to the accretion of Class A Ordinary Shares to their redemption value.
Outlook, Risks, and Management Commentary
- Business 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 cash outside the Trust ($949,401) is sufficient to fund operations for at least one year. The Sponsor may provide Working Capital Loans up to $1,500,000 if necessary.
- Redemption Rights: Public shareholders may redeem shares for a pro rata portion of the Trust Account (approx. $10.03 per share as of March 31, 2026) upon the completion of a Business Combination or liquidation.
- Risks:
- Geopolitical Instability: Conflicts in Ukraine and the Middle East (U.S., Israel, Iran) may disrupt markets and hinder the ability to find a target.
- Delisting Risk: If the Company does not complete a Business Combination within 36 months of the IPO registration effectiveness, Nasdaq may suspend trading and delist the securities.
- Target Availability: No specific target has been identified; there is no assurance a Business Combination will be completed.
- Unusual Items: The net income is entirely non-operating, derived from interest on Trust Account investments. The Company incurred $60,000 in deferred consulting fees for advisory services, payable only upon a Business Combination.
Investor Verification Checklist
- Trust Account Yield: Verify the current interest rate environment and its impact on the redemption price per share.
- Extension Provisions: Review the Amended and Restated Articles for the specific shareholder vote thresholds required to extend the Combination Period beyond February 9, 2028.
- Sponsor Commitment: Confirm the Sponsor's ability to satisfy indemnification obligations if third-party claims reduce Trust Account funds below $10.00 per share.
- Deferred Fees: Note the $8,050,000 deferred underwriting fee that will reduce net proceeds available to the combined entity upon closing.
- Warrant Terms: Review the exercise price ($11.50) and redemption triggers (share price exceeding $18.00) for the 7,831,834 outstanding warrants.