Business Context and Reporting Period
Company: Art Technology Acquisition Corp. (ARTC)
Filing Type: Form 10-Q (Quarterly Report)
Period Ended: June 30, 2026
Business Status: The Company is a Cayman Islands exempted company and a "blank check" SPAC formed to effect a business combination. As of June 30, 2026, the Company had not commenced any operations. All activity relates to formation, the Initial Public Offering (IPO) consummated in January 2026, and identifying a target for a business combination.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2026 | Three Months Ended June 30, 2026 |
|---|---|---|
| Net Income | $3,410,842 | $1,920,640 |
| Operating Expenses (G&A) | $837,028 | $336,392 |
| Interest Income (Trust Account) | $4,247,870 | $2,257,032 |
| Cash and Cash Equivalents | $2,309,856 | $2,309,856 |
| Trust Account Balance | $257,247,870 | $257,247,870 |
| Total Assets | $259,732,886 | $259,732,886 |
| Total Liabilities | $10,898,862 | $10,898,862 |
| Working Capital Surplus | $2,328,654 | $2,328,654 |
Debt and Liquidity: The Company has no outstanding debt as of June 30, 2026. A related-party promissory note of $194,453 was repaid at the closing of the IPO. The Company holds $2,309,856 in cash outside the Trust Account and $257,247,870 in marketable securities within the Trust Account. There are no borrowings under Working Capital Loans.
Material Changes vs. Prior Period
- Initial Public Offering: The Company consummated its IPO on January 7, 2026, and fully exercised the over-allotment option on January 26, 2026. This resulted in aggregate gross proceeds of $253,000,000, compared to zero proceeds in the prior period (December 31, 2025).
- Trust Account: The Trust Account balance increased from $0 at December 31, 2025, to $257,247,870 at June 30, 2026, reflecting the deposit of IPO proceeds and accrued interest.
- Share Capital: As of June 30, 2026, there were 26,125,000 Class A ordinary shares outstanding (including 25,300,000 subject to redemption) and 8,708,333 Class B ordinary shares. There were no Class A shares outstanding as of December 31, 2025.
- Liabilities: Total liabilities increased from $387,318 to $10,898,862, primarily due to the recording of a $10,780,000 deferred underwriting fee payable upon the completion of a business combination.
Outlook, Risks, and Management Commentary
Outlook and Liquidity: Management believes the Company has sufficient funds to finance working capital needs for at least one year from the date of issuance. The Company intends to use funds held outside the Trust Account to identify and evaluate target businesses. If a business combination is not completed within 24 months (or 27 months if a definitive agreement is executed within 24 months), the Company will liquidate and redeem Public Shares.
Risks and Contingencies:
- Geopolitical Instability: The filing notes risks associated with the Russia-Ukraine conflict and Middle East conflict, which could cause market disruptions, volatility, and supply chain interruptions.
- Business Combination Failure: There is no assurance the Company will complete a business combination. If it fails, Public Warrants will expire worthless.
- Redemption Rights: Public shareholders have the right to redeem shares for a pro rata portion of the Trust Account upon the completion of a business combination.
Unusual Items: The Company recorded a significant accretion of Class A ordinary shares subject to redemption ($19,310,353 in Q1 and $2,257,032 in Q2) to adjust the carrying value to the redemption value, which is charged against accumulated deficit.
Investor Verification Checklist
- Trust Account Yield: Verify the current interest rate environment and its impact on the Trust Account balance ($257.2M) versus the initial deposit ($253.0M).
- Deferred Underwriting Fee: Confirm the $10,780,000 deferred fee obligation and the conditions under which it is payable or waived.
- Combination Period Deadline: Note the 24-month deadline (from Jan 7, 2026) to complete a business combination, with a potential 3-month extension if a definitive agreement is signed.
- Related Party Transactions: Review the administrative support agreement ($30,000/month) and executive service agreements for ongoing cash burn outside the Trust Account.
- Warrant Terms: Verify the exercise price ($11.50) and redemption trigger ($18.00) for the 6,531,250 outstanding warrants.