Business Context and Reporting Period
Company: Indigo Acquisition Corp. (INAC)
Reporting Period: Quarter ended June 30, 2026 (Q2 2026)
Business Type: Cayman Islands exempted company (Special Purpose Acquisition Company) formed to effect a business combination. The Company has not commenced operations and generates no operating revenue. Funds are held in a Trust Account invested in U.S. government securities.
Key Dates: IPO consummated July 2, 2025; Over-allotment exercised July 11, 2025. Deadline to consummate a business combination is April 2, 2027.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | YTD 2026 (6 Months) | Balance Sheet (June 30, 2026) |
|---|---|---|---|
| Net Income (Loss) | $927,520 | $1,801,126 | — |
| Operating Costs | $(120,605) | $(282,980) | — |
| Trust Account Income | $1,048,125 | $2,084,106 | — |
| Cash (Operating) | — | — | $379,862 |
| Trust Account Balance | — | — | $119,382,477 |
| Total Assets | — | — | $119,876,906 |
| Total Liabilities | — | — | $4,100,860 |
| Deferred Underwriting Fee | — | — | $4,025,000 |
| Working Capital | — | — | $418,569 |
Material Changes vs. Prior Period
- Profitability Shift: The Company reported a net income of $927,520 for Q2 2026, a significant improvement from a net loss of $62,889 in Q2 2025. This is primarily driven by dividend income of $1,048,125 earned on Trust Account securities, whereas Q2 2025 had negligible interest income.
- Operating Expenses: Formation and operating costs increased to $120,605 in Q2 2026 from $62,889 in Q2 2025. Q2 2025 included a one-time share-based compensation expense of $108,750 for director shares, which did not recur in 2026.
- Trust Account Growth: The Trust Account balance increased from $117,298,371 at December 31, 2025, to $119,382,477 at June 30, 2026, reflecting accumulated interest income.
- Cash Position: Operating cash decreased from $666,920 at year-end 2025 to $379,862 at June 30, 2026, due to net cash used in operating activities of $287,058 for the six-month period.
Outlook, Risks, and Management Commentary
- Going Concern: Management has determined that the liquidity condition raises substantial doubt about the Company's ability to continue as a going concern. The Company may need to raise additional capital through loans or investments from the Sponsor or third parties to meet working capital needs.
- Combination Deadline: The Company must consummate a business combination by April 2, 2027 (21 months from IPO). Failure to do so will trigger mandatory liquidation and dissolution.
- Liquidity Strategy: The Company intends to use funds outside the Trust Account ($379,862) for due diligence and transaction costs. The Sponsor and affiliates may provide working capital loans (up to $1.5 million convertible to units), but are not obligated to do so.
- Redemption Rights: Public shareholders may redeem shares for a pro rata portion of the Trust Account (approx. $10.38 per share as of June 30, 2026) in connection with a business combination or liquidation.
- Deferred Fees: A deferred underwriting fee of $4,025,000 is payable upon the completion of a business combination.
Investor Verification Checklist
- Trust Account Yield: Verify the current interest rate environment and its impact on the Trust Account balance, which drives the Company's net income.
- Extension Provisions: Review the specific shareholder vote requirements and extension fees (if any) needed to extend the April 2, 2027 deadline.
- Working Capital Sufficiency: Assess whether the current operating cash of $379,862 is sufficient to sustain operations until the deadline or if a Sponsor loan is imminent.
- Redemption Value: Confirm the per-share redemption value ($10.38) and the total number of shares subject to redemption (11,500,000).
- Deferred Underwriting Liability: Note the $4,025,000 liability that will reduce net proceeds available to the combined entity upon a successful transaction.