Churchill Capital Corp XI (CCXI) - 10-Q Summary
Business Context and Reporting Period
Company: Churchill Capital Corp XI (CCXI), a Cayman Islands exempted company and Special Purpose Acquisition Company (SPAC).
Reporting Period: Quarterly period ended March 31, 2026.
Status: The Company is in the pre-business combination phase. It was incorporated on June 4, 2025, and consummated its Initial Public Offering (IPO) on December 18, 2025. The Company has until December 18, 2027 (24 months from IPO) to consummate an initial Business Combination, subject to potential extensions.
Capital Structure: As of May 13, 2026, there were 41,900,000 Class A Ordinary Shares and 13,800,000 Class B Ordinary Shares (Founder Shares) issued and outstanding.
Key Financial Metrics
| Metric | March 31, 2026 | December 31, 2025 |
|---|---|---|
| Trust Account Balance | $418,094,829 | $414,549,783 |
| Cash (Operating) | $410,097 | $736,204 |
| Total Assets | $419,105,843 | $415,909,532 |
| Net Income (3 Months) | $3,171,373 | N/A |
| Interest Income (Trust) | $3,545,046 | N/A |
| General & Administrative Costs | $373,673 | N/A |
| Working Capital | $635,351 | N/A |
| Deferred Underwriting Fee | $15,990,000 | $15,990,000 |
| Redemption Value per Share | ~$10.07 | ~$10.00 |
Material Changes vs. Prior Period
- Trust Account Growth: The Trust Account balance increased by approximately $3.55 million, driven entirely by interest earned on U.S. Treasury securities held within the account.
- Operating Cash Flow: Net cash used in operating activities was $326,107 for the quarter, primarily due to increases in prepaid expenses and insurance, offset by accrued expenses.
- Shareholder Deficit: The accumulated deficit decreased (improved) by $76,544 due to net income of $3.17 million, partially offset by the accretion of Class A Ordinary Shares subject to redemption ($3.09 million).
- Redemption Value Accretion: The carrying value of Class A Ordinary Shares subject to possible redemption increased from $414,000,000 to $417,094,829 to reflect the interest earned in the Trust Account.
Outlook, Risks, and Contingencies
- Business Combination Deadline: The Company must complete a Business Combination by December 18, 2027. Failure to do so will result in liquidation and redemption of Public Shares.
- Liquidity: The Company has sufficient funds for working capital needs for at least one year. It may withdraw up to $1,000,000 annually from Trust interest for working capital. A subsequent event noted a $1,000,000 withdrawal from the Trust on April 16, 2026.
- Contingent Liabilities:
- Deferred Fee: $15,990,000 payable to the underwriter upon completion of a Business Combination.
- Legal Fees: $235,000 in legal fees incurred as of March 31, 2026, are contingent on the completion of a Business Combination and are not yet recorded in the financial statements.
- Risks: The Company faces risks related to the inability to identify a target, market conditions, geopolitical instability, and the potential for the post-combination share price to fall below the redemption price. As a smaller reporting company, it is not required to update risk factors in this filing.
Investor Verification Checklist
- Trust Account Composition: Verify the specific maturities of the U.S. Treasury securities held in the Trust Account to assess interest rate risk.
- Subsequent Withdrawals: Confirm the impact of the $1,000,000 withdrawal from the Trust Account on April 16, 2026, on the available redemption price per share.
- Contingent Legal Fees: Monitor the status of the $235,000 in contingent legal fees and any potential premium payments (50%-100%) upon deal closure.
- Extension Provisions: Review the Amended and Restated Articles for specific shareholder approval requirements and redemption rights if the Company seeks to extend the Combination Period beyond 24 months.
- Warrant Exercise Price: Note that warrants are exercisable at $11.50 per share, which is currently above the implied redemption value of ~$10.07.