Siddhi Acquisition Corp (Cayman Islands) - 10-Q Summary
Business Context and Reporting Period
Siddhi Acquisition Corp is a Cayman Islands exempted corporation and a "blank check" company formed on July 5, 2024, to effect a business combination with one or more target businesses. The company consummated its Initial Public Offering (IPO) on April 2, 2025. This report covers the quarter ended March 31, 2026. The company is classified as a shell company, a smaller reporting company, and an emerging growth company.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Income (Loss) | $2,239,468 | $(43,850) |
| Operating Loss | $(218,386) | $(43,850) |
| Interest Income (Trust Account) | $2,457,854 | $0 |
| Cash (Outside Trust) | $456,983 | $0 |
| Trust Account Balance | $288,439,296 | $0 |
| Working Capital | $419,984 | N/A |
| Total Liabilities | $16,735,750 | N/A |
Capital Structure: As of March 31, 2026, there were 27,600,000 Class A ordinary shares subject to possible redemption and 6,900,000 Class B ordinary shares (founder shares) outstanding. The redemption value per Class A share was $10.45.
Material Changes vs. Prior Period
- Revenue and Profitability: The company reported a net income of $2.24 million for Q1 2026, a significant turnaround from the net loss of $43,850 in Q1 2025. This change is primarily driven by $2.46 million in interest income earned on the Trust Account, which was established following the April 2025 IPO. Q1 2025 occurred prior to the IPO, resulting in no trust interest income.
- Operating Expenses: General and administrative costs increased to $218,386 in Q1 2026 from $43,850 in Q1 2025, reflecting the costs of operating as a public company post-IPO.
- Liquidity: Cash held outside the Trust Account decreased from $664,894 at year-end 2025 to $456,983 at March 31, 2026, due to operating cash outflows of $207,911.
Outlook, Risks, and Contingencies
- Business Combination Deadline: The company must complete an initial business combination by January 2, 2027 (21 months from IPO), unless extended by three months. Failure to do so will result in liquidation.
- Going Concern: Management has determined that the potential liquidity shortfall and mandatory liquidation raise substantial doubt about the company's ability to continue as a going concern. Financial statements do not include adjustments that might be necessary if liquidation occurs.
- Deferred Fees: The company has significant contingent liabilities, including a deferred underwriting fee of $8,280,000 and an advisory fee of $8,280,000, payable only upon the successful completion of a business combination.
- Risk Factors: Risks include geopolitical instability (Russia-Ukraine, Middle East conflicts) affecting global markets, the inability to secure a target business, and the potential for the Sponsor to be unable to satisfy indemnification obligations regarding Trust Account claims.
Investor Verification Checklist
- Trust Account Growth: Verify the interest rate environment and the specific composition of the Trust Account investments (U.S. Treasury Bills) to assess future income potential.
- Liquidity Runway: Confirm the sufficiency of the $456,983 cash balance outside the Trust Account to fund operations until the January 2027 deadline or a potential extension.
- Related Party Fees: Review the monthly $15,000 administrative support fee and $3,500 consulting fee payable to related parties and their impact on cash burn.
- Redemption Risk: Assess the likelihood of shareholder redemptions, which could reduce the funds available for a business combination below the required 80% threshold.
- Sponsor Solvency: Evaluate the financial capacity of Siddhi Sponsor LLC to cover potential indemnification claims against the Trust Account, as the company notes the Sponsor's assets are primarily company securities.