CEPF

Business Context and Reporting Period

Cantor Equity Partners IV, Inc. (CEPF) is a Cayman Islands exempted company and a Special Purpose Acquisition Company (SPAC) formed to effect a business combination with one or more target businesses, focusing on financial services, digital assets, healthcare, real estate, technology, and software. The company is an emerging growth company and a shell company. This Form 10-Q covers the quarterly period ended March 31, 2026. The company has not commenced operations; all activity relates to its formation, its Initial Public Offering (IPO) completed in August 2025, and efforts to locate a target business.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue and Profitability: The company reported a net income of $4.13 million for Q1 2026, a significant turnaround from the net loss of $27,148 in Q1 2025. This change is driven entirely by interest income of $4.27 million earned on investments held in the Trust Account following the August 2025 IPO. Q1 2025 had no interest income as the IPO had not yet occurred.
• Expenses: General and administrative costs increased to $108,848 in Q1 2026 from $27,148 in Q1 2025. Additionally, the company incurred $30,000 in related-party administrative expenses in Q1 2026, which were $0 in the prior period.
• Balance Sheet: Total assets increased to approximately $460.8 million, primarily due to the $450 million deposited in the Trust Account upon the IPO closing in August 2025. The Trust Account balance grew from $456.7 million at year-end 2025 to $460.6 million at March 31, 2026, due to interest accretion.
• Related Party Debt: The note payable to the related party (Sponsor Loan) increased from $31,454 at December 31, 2025, to $183,520 at March 31, 2026, reflecting additional draws to fund working capital requirements.

Outlook, Risks, and Management Commentary

• Business Combination Deadline: The company has until August 22, 2027 (24 months from the IPO) to consummate a business combination. If unsuccessful, the company will liquidate and redeem public shares at the pro rata Trust Account balance.
• Liquidity: Management believes it has sufficient working capital and borrowing capacity from the Sponsor to meet needs for at least one year. The Sponsor has committed up to $1.75 million in loans (Sponsor Loan), of which approximately $184,000 was drawn as of March 31, 2026.
• Contingent Liability: Upon consummation of a business combination, the company must pay Cantor Fitzgerald & Co. (an affiliate of the Sponsor) a deferred underwriting fee of $16,750,000.
• Risks: The company faces risks associated with early-stage companies, including the inability to complete a business combination, market volatility, and geopolitical instability. The filing notes that the SEC's 2024 SPAC rules may increase costs and time required to complete a transaction.
• Unusual Items: The company recorded a $420,815 unrealized loss on available-for-sale debt securities in other comprehensive income, though this did not impact net income.

Investor Verification Checklist

• Trust Account Composition: Verify that the $460.6 million in the Trust Account remains invested solely in U.S. government securities or money market funds as required by the Investment Company Act.
• Related Party Transactions: Confirm the terms of the $183,520 Sponsor Loan and the $30,000 monthly administrative fee paid to the Sponsor.
• Redemption Rights: Review the specific redemption value per share ($10.23) and the conditions under which public shareholders may redeem their shares.
• Deferred Fees: Note the $16.75 million contingent fee payable to the underwriter upon a successful business combination, which will impact post-transaction cash flow.
• Extension Options: Verify if shareholders have approved any extensions to the August 22, 2027, deadline for completing a business combination.