Business Context and Reporting Period
Plum Acquisition Corp. IV (PLMK) is a Cayman Islands exempted corporation and blank check company formed to effect a business combination. This Form 10-Q covers the quarterly period ended March 31, 2026. The Company is an emerging growth company and a shell company. As of the filing date, the Company had not commenced any operations other than identifying a target for a business combination.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Income | $1,199,134 | $1,182,055 |
| Operating Expenses (G&A) | $252,715 | $306,345 |
| Interest Income (Trust Account) | $1,449,969 | $1,488,400 |
| Cash and Cash Equivalents (Operating) | $93,512 | $577,442 |
| Investments in Trust Account | $182,735,189 | $181,285,220 |
| Total Assets | $182,970,341 | $181,681,987 |
| Total Liabilities | $7,453,155 | $7,363,935 |
| Working Capital Deficit | ($318,003) | N/A |
| Net Income Per Share (Class A & B) | $0.05 | $0.06 |
Material Changes vs. Prior Period
- Operating Cash Flow: Net cash used in operating activities decreased to $202,737 in Q1 2026 from $338,313 in Q1 2025, driven by lower general and administrative expenses.
- Trust Account Growth: Investments held in the Trust Account increased by approximately $1.45 million due to interest earned on U.S. Treasury securities.
- Liquidity: Operating cash and cash equivalents declined significantly from $296,249 at year-end 2025 to $93,512 at March 31, 2026.
- Shareholder Deficit: Accumulated deficit increased to $(7,218,702) from $(6,967,867) due to the remeasurement of Class A ordinary shares subject to redemption, partially offset by net income.
Outlook, Risks, and Unusual Items
Proposed Business Combination
On March 8, 2026, the Company entered into a Business Combination 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.
Liquidity and Going Concern
Management has determined that the Company's liquidity condition raises substantial doubt about its ability to continue as a going concern for one year from the issuance date. The Company has a working capital deficit of $318,003 and must complete a business combination by July 16, 2026 (18 months post-IPO) or face mandatory liquidation.
Debt and Financing
- Promissory Note: A $250,000 note to the Sponsor was outstanding as of March 31, 2026. Subsequent to the period end, an additional $550,000 was drawn under a $1.5 million credit facility with the Sponsor.
- Deferred Underwriting Fee: $6,900,000 is payable to underwriters upon completion of a business combination.
Risks
Key risks include the failure to complete the business combination by the deadline, potential inability to raise additional capital, and general market volatility. The Company has no operating revenue and relies entirely on interest income from the Trust Account.
Investor Verification Checklist
- Combination Deadline: Verify the July 16, 2026 deadline for completing the merger with CTR or liquidating.
- Shareholder Approval: Confirm the status of required shareholder votes for both Plum Acquisition Corp. IV and CTR.
- Trust Account Value: Monitor the per-share redemption value, which was approximately $10.59 as of March 31, 2026.
- Working Capital: Assess the sufficiency of the $93,512 operating cash balance to fund operations until the merger or liquidation.
- Related Party Debt: Review the terms of the $1.5 million promissory note with the Sponsor, including the option to convert to equity.