Daedalus Special Acquisition Corp. (DSAC) - 10-Q Summary
Business Context and Reporting Period
Company: Daedalus Special Acquisition Corp. (DSAC)
Reporting Period: Quarter ended June 30, 2026 (Six months ended June 30, 2026)
Status: Cayman Islands exempted company; "Blank check" SPAC incorporated August 7, 2025.
Operations: No operating revenues. Activities limited to formation, IPO preparation, and searching for a business combination target. The Company has not selected a specific target.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Three Months Ended June 30, 2026 |
|---|---|---|
| Net Income | $4,161,584 | $2,131,322 |
| Operating Expenses | $392,818 | $120,137 |
| Trust Account Income | $4,477,402 | $2,251,459 |
| Cash (Outside Trust) | $626,995 (Ending Balance) | N/A |
| Trust Account Balance | $255,013,216 | N/A |
| Working Capital | $664,141 | N/A |
| Deferred Underwriting Fees | $8,750,000 | N/A |
Material Changes vs. Prior Period
- Trust Account Growth: The Trust Account balance increased from $250,535,814 (Dec 31, 2025) to $255,013,216 (June 30, 2026), driven by $4.48 million in interest income earned on marketable securities.
- Cash Position: Cash held outside the Trust Account decreased from $1,071,605 to $626,995 due to operating cash outflows of $425,645.
- Liabilities: The "Over-allotment option liability" of $77,000 recorded at year-end 2025 expired, resulting in a non-cash gain of $77,000 in the six-month period.
- Share Capital: The Sponsor forfeited 291,667 Class B ordinary shares subsequent to December 31, 2025, as the underwriters did not fully exercise the over-allotment option. Outstanding Class B shares are now 8,333,333.
Outlook, Risks, and Management Commentary
- Going Concern: Management has raised substantial doubt about the Company's ability to continue as a going concern for one year from the issuance date due to insufficient financial resources to sustain operations without a business combination.
- Completion Window: The Company must complete an initial business combination within 24 months of the IPO (closing Dec 10, 2025) or face liquidation and redemption of public shares.
- Geopolitical Risks: The filing highlights risks from the Russia-Ukraine conflict and Israel-Hamas conflict, which could cause market volatility, supply chain interruptions, and impact the search for a target.
- Capital Needs: The Company may need to obtain additional financing to complete a business combination or cover working capital deficiencies. The Sponsor is not obligated to provide loans but may do so up to $1.5 million convertible into units.
Investor Verification Checklist
- Trust Account Yield: Verify the interest rate environment and the specific composition of the Trust Account assets (money market funds vs. treasury obligations) to assess future income potential.
- Liquidity Runway: Confirm the burn rate of the $626,995 cash balance outside the Trust Account against the 24-month deadline to complete a deal.
- Redemption Risk: Assess the likelihood of shareholder redemptions upon a potential business combination, which could reduce the funds available for the transaction.
- Deferred Fees: Note the $8.75 million deferred underwriting fee payable only upon successful completion of a business combination.
- Related Party Transactions: Review the $10,000/month administrative fee paid to the Sponsor and the status of any working capital loans.