GPAC

Business Context and Reporting Period

General Purpose Acquisition Corp. (GPAC) is a Cayman Islands exempted company incorporated on July 25, 2025, operating as a "blank check" company. The filing covers the quarter ended March 31, 2026. The Company consummated its Initial Public Offering (IPO) on December 4, 2025, raising $230 million in gross proceeds. As of the reporting date, the Company has not commenced operations and has not selected a specific business combination target. It is classified as a shell company, a smaller reporting company, and an emerging growth company.

Key Financial Metrics

The Company generated no operating revenue. Net income was driven entirely by $1,962,225 in income earned on cash and marketable securities held in the Trust Account, partially offset by operating expenses.

Material Changes vs. Prior Period

• Trust Account Growth: The balance in the Trust Account increased from $230,640,427 at December 31, 2025, to $232,602,652 at March 31, 2026, an increase of approximately $1.96 million due to investment income.
• Accumulated Deficit: The accumulated deficit increased from $(8,012,446) to $(8,293,118). This increase is primarily due to the remeasurement of Class A ordinary shares subject to possible redemption to their redemption value, which is charged to accumulated deficit.
• Related Party Payables: Amounts due to related parties increased from $22,581 to $97,581, reflecting accrued administrative fees of $25,000 per month payable to the Sponsor.
• Cash Position: Cash held outside the Trust Account decreased by $146,497, resulting in a net cash outflow from operating activities of $144,404.

Outlook, Risks, and Contingencies

Completion Window: The Company has 24 months from the closing of the IPO (December 4, 2025) to complete an initial Business Combination. If unsuccessful, the Company will liquidate and redeem public shares.

Liquidity: Management believes current cash and working capital are sufficient to meet needs for at least one year. The Company may seek additional financing through working capital loans from the Sponsor or affiliates, which may be convertible into units.

Risk Factors:

• Geopolitical Instability: Ongoing conflicts (Russia-Ukraine, Israel-Hamas) and resulting sanctions could disrupt capital markets and hinder the search for a target.
• Going Concern: While currently liquid, there is no assurance the Company will successfully complete a Business Combination or raise additional capital if needed.
• Warrant Redemption: Public Warrants may be redeemed if the Class A share price exceeds $18.00 for 20 trading days within a 30-day period post-combination.

Contingencies: The Sponsor has agreed to indemnify the Company against claims that reduce Trust Account funds below $10.00 per share, though the Company has not verified the Sponsor's ability to satisfy this obligation.

Investor Verification Checklist

• Trust Account Yield: Verify the interest rate environment and the specific composition of the Trust Account investments (Treasury Bills vs. Money Market Funds) to assess future income potential.
• Extension Provisions: Review the Company's charter for any provisions allowing shareholders to extend the 24-month completion window, as this impacts the timeline for liquidation or combination.
• Related Party Fees: Confirm the $25,000 monthly administrative fee to the Sponsor and monitor the "Due to related party" balance for potential cash flow strain.
• Redemption Rights: Understand the redemption mechanics, specifically the $10.00 per share floor and the treatment of interest income in the redemption price.
• Deferred Underwriting: Note the $9.2 million deferred fee payable only upon a successful Business Combination, which reduces net proceeds available to the combined entity.