PLMK

Business Context and Reporting Period

Company: Plum Acquisition Corp. IV (PLMK)

Filing Type: Form 10-K (Annual Report)

Reporting Period: Fiscal year ended December 31, 2025

Business Overview: Plum Acquisition Corp. IV is a Cayman Islands exempted company formed as a blank check company (SPAC) to effect a merger, share exchange, or asset acquisition with one or more businesses. The Company consummated its Initial Public Offering (IPO) on January 16, 2025, raising gross proceeds of $172.5 million. On March 8, 2026 (subsequent to the reporting period), the Company entered into a Business Combination Agreement to merge with Controlled Thermal Resources Holdings Inc. ("CTR").

Key Financial Metrics

Material Changes vs. Prior Period

• Capitalization: The Company transitioned from a pre-IPO entity with no assets to a public company with $181.3 million in trust assets following the January 2025 IPO and private placement.
• Profitability: The Company reported a net income of $6.05 million for 2025, driven primarily by $7.06 million in interest income earned on the Trust Account, compared to a net loss of $92,000 in 2024 due to formation costs.
• Liquidity: Operating cash balance increased to $296,249, though the Company reported a working capital deficit of $70,710 as of December 31, 2025.
• Debt: The Company issued a new unsecured promissory note to its Sponsor in July 2025 with a principal amount of up to $1.5 million; $250,000 was outstanding as of year-end.

Guidance, Outlook, Risks, and Unusual Items

Outlook and Proposed Business Combination

The Company has entered into a definitive agreement to merge with Controlled Thermal Resources Holdings Inc. (CTR). The transaction involves a domestication from the Cayman Islands to Delaware and a merger where CTR will be the surviving entity. The deal is subject to shareholder approvals and customary closing conditions.

Risks and Contingencies

• Going Concern: Management has raised substantial doubt about the Company's ability to continue as a going concern for one year from the date of the financial statements due to a working capital deficit and the mandatory liquidation date of July 16, 2026, if a business combination is not completed.
• Liquidity: The Company relies on funds held outside the trust account ($296,249) and potential loans from the Sponsor to fund operations. If these funds are insufficient, the Company may be unable to complete a business combination.
• Redemption Risk: Public shareholders have the right to redeem their shares for a pro-rata portion of the Trust Account (approximately $10.51 per share as of Dec 31, 2025) upon the completion of a business combination. Significant redemptions could reduce cash available for the transaction.
• Regulatory and Market Risks: Risks include geopolitical instability, inflation, and potential regulatory review (e.g., CFIUS) which could delay or prevent the proposed merger.

Investor Verification Checklist

• Trust Account Balance: Verify the current per-share redemption value in the Trust Account, which was approximately $10.51 as of December 31, 2025.
• Business Combination Status: Confirm the progress of the merger with Controlled Thermal Resources Holdings Inc. (CTR) and the likelihood of shareholder approval.
• Liquidity Sufficiency: Assess whether the $296,249 in operating cash and the $1.5 million promissory note facility are sufficient to fund operations until the merger closes or the liquidation deadline (July 16, 2026).
• Redemption Thresholds: Review the proposed transaction terms to understand potential redemption levels and their impact on the post-merger capital structure.
• Deferred Fees: Note the $6.9 million deferred underwriting fee payable only upon successful completion of the business combination.