HACQ

Business Context and Reporting Period

Company: HCM IV Acquisition Corp. (HCM IV)
Reporting Period: Fiscal year ended December 31, 2025 (Inception: September 5, 2025)
Entity Type: Cayman Islands exempted company; Special Purpose Acquisition Company (SPAC)
Status: Pre-IPO at period end; IPO consummated February 13, 2026 (Subsequent Event)

HCM IV is a blank check company formed to effect a merger, amalgamation, or similar business combination with one or more target businesses. As of December 31, 2025, the Company had not commenced operations and had no operating revenues. The Company is an "emerging growth company" and a "smaller reporting company."

Key Financial Metrics (As of December 31, 2025)

Note: The financial statements reflect a "Going Concern" uncertainty due to the lack of cash and working capital deficit prior to the IPO.

Material Changes and Subsequent Events (Post-Period)

The filing details significant events occurring after December 31, 2025, which fundamentally altered the Company's financial position:

• Initial Public Offering (IPO): Consummated on February 13, 2026. Sold 28,750,000 Units (including full over-allotment) at $10.00 per Unit, generating gross proceeds of $287,500,000.
• Private Placement: Simultaneously sold 4,666,667 Private Placement Warrants to the Sponsor and Cantor Fitzgerald & Co. for $7,000,000.
• Trust Account: $287,500,000 was deposited into the Trust Account.
• Transaction Costs: Total costs of $19,591,443 were incurred, including $5,000,000 in cash underwriting fees and $13,687,500 in deferred underwriting fees.
• Liquidity Resolution: The promissory note to the Sponsor ($371,062 total borrowed) was fully repaid on February 17, 2026.

Guidance, Outlook, and Risks

Outlook: The Company has 24 months from the IPO closing (February 13, 2026) to complete an initial business combination. If unsuccessful, the Company will liquidate and redeem public shares from the Trust Account.

Management Commentary: Management intends to use funds held outside the Trust Account (approx. $1.25 million initially available post-IPO) to identify targets and fund operations. They may seek additional financing via working capital loans from the Sponsor or affiliates, up to $1,500,000 of which may be convertible into warrants.

Risks and Contingencies:

• 2024 SPAC Rules: New SEC rules effective July 1, 2024, may materially affect the ability to complete a business combination and increase costs.
• Going Concern: Prior to the IPO, the Company lacked sufficient resources to sustain operations for one year.
• Trust Account Claims: While the Sponsor has agreed to indemnify the Trust Account against third-party claims (up to $10.00 per share), there is no guarantee the Sponsor has sufficient assets to satisfy this obligation.
• Redemption Risk: Significant redemptions could reduce cash available for the business combination.

Investor Verification Checklist

• Trust Account Balance: Verify the current balance in the Trust Account (reported as approx. $288.16 million as of March 19, 2026) and interest earnings.
• Deferred Fees: Confirm the $13,687,500 deferred underwriting fee obligation and its impact on net tangible assets at closing.
• Related Party Transactions: Review the $35,000/month administrative fee agreement with the Sponsor and the advisory fees payable to Zenith Securities LLC ($4.31 million total).
• Founder Shares: Verify the 8,625,000 Class B shares held by the Sponsor and the lock-up provisions (waived upon $12.00/share threshold or 1 year post-combination).
• Warrant Liability: Assess the valuation of Public and Private Placement Warrants (exercise price $11.50) and potential dilution.