FCRS

Business Context and Reporting Period

Company: FutureCrest Acquisition Corp. (FCRS), a Cayman Islands exempted company and Special Purpose Acquisition Company (SPAC).

Reporting Period: Quarterly period ended March 31, 2026.

Status: The Company is a "shell company" with no active operations. It was incorporated on June 9, 2025, and consummated its Initial Public Offering (IPO) on September 29, 2025. The Company is currently searching for a target business for a Business Combination. It is classified as a non-accelerated filer, smaller reporting company, and emerging growth company.

Key Financial Metrics

Material Changes vs. Prior Period

• Trust Account Growth: Marketable securities in the Trust Account increased from $290,305,113 (Dec 31, 2025) to $292,857,747 (Mar 31, 2026), driven by $2,552,634 in interest income and unrealized gains.
• Redemption Value: The per-share redemption value for Class A ordinary shares increased from $10.10 to $10.19.
• Accrued Expenses: Current liabilities increased significantly due to accrued expenses rising from $159,029 to $819,392, reflecting operational costs incurred during the quarter.
• Cash Position: Cash held outside the Trust Account decreased from $869,527 to $719,758, a reduction of approximately $150,000 used for operating activities.
• Accumulated Deficit: Despite net income for the quarter, the accumulated deficit increased to $(12,107,904) due to the accretion of Class A shares to their redemption value, which is charged against accumulated deficit.

Outlook, Risks, and Management Commentary

• Going Concern: The filing states that the Company's liquidity condition raises substantial doubt about its ability to continue as a going concern for one year after the issuance date. The Company may need to raise additional capital through loans or investments from the Sponsor or third parties to meet working capital needs.
• Completion Window: The Company must complete a Business Combination within 24 months from the IPO closing (September 29, 2025), or by an earlier liquidation date approved by the board. If no combination is completed, the Company will redeem Public Shares and liquidate.
• Regulatory Environment: Management notes that new SEC rules adopted in 2024 regarding SPACs may materially affect the ability to negotiate and complete a Business Combination, potentially increasing costs and time.
• Risk Factors: Key risks include changes in international trade policies and tariffs, which could negatively impact the search for a target or the performance of a post-combination company. Additionally, there is no assurance that a Business Combination will be successfully consummated.
• Warrant Redemption: Public Warrants may be redeemed if the Class A share price equals or exceeds $18.00 per share for 20 trading days within a 30-day period, at a price of $0.01 per warrant.

Investor Verification Checklist

• Liquidity Runway: Verify the sufficiency of the $719,758 cash balance outside the Trust Account to fund operations until the 24-month deadline or a potential extension.
• Extension Provisions: Review the Company's ability and likelihood of amending its charter to extend the Completion Window, which would require shareholder approval and potentially reduce the Trust Account balance.
• Deferred Fees: Confirm the $12,250,000 deferred underwriting fee obligation, which is payable only upon the successful completion of a Business Combination.
• Trust Account Composition: Verify that the Trust Account assets remain invested in U.S. government treasury obligations or money market funds as required to mitigate Investment Company Act risks.
• Sponsor Support: Assess the Sponsor's financial capacity to provide working capital loans if the Company cannot raise external financing, noting the Sponsor's assets are primarily Company securities.