• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
PublishGo to App
    Quantisnow Logo

    © 2026 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlertsPublish with Us
    Company
    AboutQuantisnow PlusContactJobsAI superconnector for talent & startupsNEWLLM Arena
    Legal
    Terms of usePrivacy policyCookie policy

    SEC Form 10-Q filed by Duddell Street Acquisition Corp.

    1/20/26 5:00:37 PM ET
    $DSAC
    Blank Checks
    Finance
    Get the next $DSAC alert in real time by email
    dsac-20250930
    http://fasb.org/srt/2025#ChiefExecutiveOfficerMember 00-0000000 2026 Q2 --03-31 false 0002082149 0002082149 2025-07-01 2025-09-30 0002082149 srt:ScenarioForecastMember 2025-12-10 2025-12-10 0002082149 us-gaap:IPOMember srt:ScenarioForecastMember 2025-12-10 0002082149 srt:ScenarioForecastMember 2025-12-10 0002082149 us-gaap:IPOMember 2025-08-07 2025-09-30 0002082149 us-gaap:IPOMember 2025-09-30 0002082149 us-gaap:WarrantMember us-gaap:CommonClassAMember 2025-09-30 0002082149 us-gaap:PrivatePlacementMember 2025-08-07 2025-09-30 0002082149 us-gaap:PrivatePlacementMember 2025-09-30 0002082149 dsac:UnderwritersMember 2025-08-07 2025-09-30 0002082149 us-gaap:IPOMember srt:ScenarioForecastMember 2025-12-10 2025-12-10 0002082149 us-gaap:OverAllotmentOptionMember srt:ScenarioForecastMember 2025-12-10 2025-12-10 0002082149 srt:ScenarioForecastMember 2025-12-08 0002082149 srt:ScenarioForecastMember dsac:FounderSharesMember 2025-12-08 0002082149 srt:ChiefExecutiveOfficerMember srt:ScenarioForecastMember 2025-12-08 0002082149 us-gaap:IPOMember srt:ScenarioForecastMember 2025-12-08 0002082149 2025-04-01 2025-09-30 0002082149 us-gaap:WarrantMember 2025-08-07 2025-09-30 0002082149 2025-08-07 2025-09-30 0002082149 us-gaap:CommonClassAMember 2025-09-30 0002082149 us-gaap:CommonClassAMember 2025-08-07 2025-09-30 0002082149 us-gaap:CommonClassAMember us-gaap:WarrantMember 2025-08-07 2025-09-30 0002082149 2025-09-30 0002082149 us-gaap:CommonClassBMember 2025-08-07 2025-09-30 0002082149 us-gaap:CommonClassBMember 2025-08-12 0002082149 us-gaap:CommonClassBMember 2025-09-30 0002082149 dsac:FounderSharesMember 2025-08-07 2025-09-30 0002082149 dsac:FounderSharesMember srt:ScenarioForecastMember 2025-12-08 0002082149 us-gaap:CommonClassBMember dsac:SponsorMember 2025-08-12 0002082149 us-gaap:CommonClassBMember dsac:SponsorMember 2025-08-12 2025-08-12 0002082149 dsac:FINRAMember us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember 2025-09-30 0002082149 us-gaap:IPOMember us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember 2025-09-30 0002082149 dsac:UnderwritingAgreementMember 2025-08-07 2025-09-30 0002082149 us-gaap:IPOMember dsac:UnderwritingAgreementMember 2025-09-30 0002082149 dsac:UnderwritingAgreementMember srt:ScenarioForecastMember 2025-12-10 2025-12-10 0002082149 dsac:AdministrativeServicesAgreementMember 2025-08-07 2025-09-30 0002082149 2025-08-12 0002082149 2025-08-12 2025-08-12 0002082149 srt:MaximumMember 2025-08-07 2025-09-30 0002082149 srt:MinimumMember 2025-08-07 2025-09-30 0002082149 us-gaap:RelatedPartyMember us-gaap:CommonClassAMember 2025-09-30 0002082149 us-gaap:OverAllotmentOptionMember dsac:SponsorMember 2025-09-30 0002082149 srt:DirectorMember 2025-09-30 0002082149 srt:DirectorMember 2025-08-07 2025-09-30 0002082149 us-gaap:RelatedPartyMember srt:ScenarioForecastMember 2025-12-08 0002082149 us-gaap:CommonClassBMember us-gaap:OverAllotmentOptionMember 2025-09-30 0002082149 srt:ScenarioForecastMember dsac:FounderSharesMember 2025-12-08 0002082149 us-gaap:CommonClassBMember 2025-08-12 2025-08-12 0002082149 us-gaap:CommonClassAMember us-gaap:PrivatePlacementMember 2025-09-30 0002082149 dsac:UnderwritersMember us-gaap:PrivatePlacementMember 2025-09-30 0002082149 us-gaap:PrivatePlacementMember dsac:SponsorMember 2025-09-30 0002082149 dsac:UnderwritersMember us-gaap:OverAllotmentOptionMember 2025-09-30 0002082149 srt:ScenarioForecastMember dsac:PublicWarrantsMember 2025-12-10 0002082149 srt:ScenarioForecastMember dsac:PublicWarrantsMember us-gaap:CommonClassAMember 2025-12-10 0002082149 us-gaap:OverAllotmentOptionMember us-gaap:CommonClassBMember 2025-08-07 2025-09-30 0002082149 dsac:SponsorMember 2025-09-30 0002082149 dsac:PublicSharesMember 2025-09-30 0002082149 2025-12-10 2025-12-10 0002082149 us-gaap:SeriesOfIndividuallyImmaterialBusinessAcquisitionsMember 2025-09-30 0002082149 us-gaap:RetainedEarningsMember 2025-09-30 0002082149 us-gaap:AdditionalPaidInCapitalMember 2025-09-30 0002082149 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2025-09-30 0002082149 us-gaap:RetainedEarningsMember 2025-08-07 2025-09-30 0002082149 us-gaap:AdditionalPaidInCapitalMember 2025-08-07 2025-09-30 0002082149 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2025-08-07 2025-09-30 0002082149 us-gaap:CommonClassAMember 2025-08-12 0002082149 us-gaap:RelatedPartyMember 2025-08-12 0002082149 us-gaap:RelatedPartyMember 2025-09-30 0002082149 us-gaap:CommonClassBMember 2026-01-20 0002082149 us-gaap:CommonClassAMember 2026-01-20 0002082149 dsac:WarrantsEntitlingTheHolderToPurchaseOneClassAOrdinaryShareAtAPriceOf1150PerShareMember 2025-04-01 2025-09-30 0002082149 dsac:ClassAOrdinaryShareParValue00001PerShareMember 2025-04-01 2025-09-30 0002082149 dsac:UnitsEachConsistingOfOneClassAOrdinaryShareAndOnefourthOfOneRedeemableWarrantMember 2025-04-01 2025-09-30 0002082149 dsac:PublicWarrantsMember 2025-09-30 0002082149 dsac:PublicWarrantsMember 2025-08-12 0002082149 dsac:PrivatePlacementWarrantsMember 2025-09-30 0002082149 dsac:PrivatePlacementWarrantsMember 2025-08-12 0002082149 dsac:PublicWarrantsMember 2025-09-30 0002082149 dsac:PublicWarrantsMember 2025-08-12 0002082149 2025-08-06 0002082149 us-gaap:CommonClassBMember us-gaap:CommonStockMember 2025-08-06 0002082149 us-gaap:AdditionalPaidInCapitalMember 2025-08-06 0002082149 us-gaap:RetainedEarningsMember 2025-08-06 iso4217:USD iso4217:USD xbrli:shares xbrli:shares xbrli:pure dsac:Segments

     

     

    UNITED STATES

    SECURITIES AND EXCHANGE COMMISSION

    Washington, D.C. 20549

     

    Form 10-Q

     

    (Mark One)

    ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

     

    For the quarterly period ended September 30, 2025

     

    ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

     

    OR

     

    For the transition period from             to            

     

    Commission file number: 001-42982

     

    DAEDALUS SPECIAL ACQUISITION CORP.

    (Exact name of registrant as specified in its charter)

     

    Cayman Islands N/A
    (State or other jurisdiction
    of incorporation)
      (I.R.S. Employer
    Identification No.)

     

    50 Sloane Avenue, London, SW3 3DD,

    United Kingdom

     SW3 3DD
    (Address of Principal Executive Offices)   (Zip Code)

     

    Registrant’s telephone number, including area code: +44 207 297 3592

     

    Securities registered pursuant to Section 12(b) of the Act:

     

    Title of each class   Trading Symbol(s)   Name of each exchange on which registered
    Units, each consisting of one Class A ordinary share and one-fourth of one Redeemable Warrant DSACU The Nasdaq Stock Market LLC
    Class A ordinary share, par value $0.0001 per share DSAC The Nasdaq Stock Market LLC
    Warrants entitling the holder to purchase one Class A ordinary share at a price of $11.50 per share DSACW The Nasdaq Stock Market LLC

     

    Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐   No ☒

     

    Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒   No ☐

     

    Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

     

    Large accelerated filer ☐ Accelerated filer ☐
    Non-accelerated filer☒Smaller reporting company☒
    Emerging growth company☒  

     

    If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

     

    Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒   No ☐

     

    As of January 20, 2026, there were 25,685,000 Class A ordinary shares, par value $0.0001, issued and outstanding, and 8,625,000 Class B ordinary shares, $0.0001 par value, issued and outstanding.

     

     

     

     

     

     

    TABLE OF CONTENTS

     

    PART I – FINANCIAL INFORMATION  
    Item 1.   Financial Statements 1
        Condensed Balance Sheets as of September 30, 2025 (Unaudited)  and August 12, 2025 (Audited) 1
        Condensed Statement of Operations for the period from August 7, 2025 (Inception) through September 30, 2025 (Unaudited) 2
        Condensed Statement of Changes in Shareholder’s Deficit for the period from August 7, 2025 (Inception) through September 30, 2025 (Unaudited) 3
        Condensed Statement of Cash Flows for the period from August 7, 2025 (Inception) through September 30, 2025 (Unaudited) 4
        Notes to Unaudited Condensed Financial Statements 5
    Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations 16
    Item 3.   Quantitative and Qualitative Disclosures About Market Risk 19
    Item 4.   Controls and Procedures 19
           
    PART II – OTHER INFORMATION  
    Item 1.   Legal Proceedings. 20
    Item 1A.   Risk Factors. 20
    Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds. 20
    Item 3.   Defaults Upon Senior Securities. 20
    Item 4.   Mine Safety Disclosures. 20
    Item 5.   Other Information. 20
    Item 6.   Exhibits. 21

     

    i

     

    PART I – FINANCIAL INFORMATION

     

    Item 1. Financial Statements

     

    DAEDALUS SPECIAL ACQUISITION CORP.

    CONDENSED BALANCE SHEETS

     

       September 30,
    2025
    (Unaudited)
      

    August 12,
    2025

    (Audited)

     
    Assets:        
    Current asset – prepaid expenses $—  $35,500 
    Deferred offering costs  151,502   25,000 
    Total Assets $151,502  $60,500 
               
    Liabilities and Shareholder’s (Deficit) Equity:          
    Accrued offering costs $6,140  $25,000 
    Accrued expenses  —   16,927 
    Accounts payable  14,616   — 
    Promissory note – related party  171,939   10,500 
    Total Liabilities  192,695   52,427 
               
    Commitments and Contingencies (Note 7)        
               
    Shareholder’s (Deficit) Equity          
    Preference shares, $0.0001 par value; 1,000,000 shares authorized; none issued or outstanding  —   — 
    Class A ordinary shares, $0.0001 par value, 300,000,000 shares authorized; none issued or outstanding  —   — 
    Class B ordinary shares, $0.0001 par value, 30,000,000 shares authorized; 8,625,000 shares issued and outstanding(1)(2)  863   863 
    Additional paid-in capital  24,137   24,137 
    Accumulated deficit  (66,193)  (16,927)
    Total Shareholder’s (Deficit) Equity  (41,193)  8,073 
    Total Liabilities and Shareholder’s (Deficit) Equity $151,502  $60,500 

     

    (1)On December 8, 2025, through a share capitalization, the Company issued an additional 958,333 founder shares to our sponsor, resulting in our sponsor holding an aggregate of 8,625,000 founder shares. All share amounts and related information have been retroactively restated to reflect the share capitalization (Note 6).

    (2)Includes an aggregate of up to 1,125,000 Class B ordinary shares, $0.0001 par value subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (Note 6).

     

    The accompanying notes are an integral part of these condensed financial statements.

     

    1

     

    DAEDALUS SPECIAL ACQUISITION CORP.

    CONDENSED STATEMENT OF OPERATIONS

    FOR THE PERIOD FROM AUGUST 7, 2025 (INCEPTION) THROUGH SEPTEMBER 30, 2025

     

    Formation, general and administrative expenses $66,193)
    Net Loss $(66,193)
          
    Basic and diluted weighted average Class B ordinary shares outstanding(1)(2)  7,500,000 
    Basic and diluted net loss per Class B ordinary share $(0.01)

     

    (1)On December 8, 2025, through a share capitalization, the Company issued an additional 958,333 founder shares to our sponsor, resulting in our sponsor holding an aggregate of 8,625,000 founder shares. All share amounts and related information have been retroactively restated to reflect the share capitalization (Note 6).

    (2)Excludes an aggregate of up to 1,125,000 Class B ordinary shares, $0.0001 par value subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (Note 6).

     

    The accompanying notes are an integral part of these condensed financial statements.

     

    2

     

    DAEDALUS SPECIAL ACQUISITION CORP.

    CONDENSED STATEMENT OF CHANGES IN SHAREHOLDER’S DEFICIT

    FOR THE PERIOD FROM AUGUST 7, 2025 (INCEPTION) THROUGH SEPTEMBER 30, 2025

     

       Class B
    Ordinary shares
       Additional
    Paid-In
       Accumulated   Shareholder’s 
       Shares   Amount   Capital   Deficit   Deficit 
    Balance as of August 7, 2025 (inception)  -  $-  $-  $-  $- 
    Issuance of Class B ordinary shares to Sponsor (1)(2)  8,625,000   863   24,137   -   25,000 
    Net loss  -   -   -   (66,193)         (66,193)
    Balance as of September 30, 2025 (Unaudited)  8,625,000  $863  $24,137  $(66,193) $(41,193)

     

    (1)On December 8, 2025, through a share capitalization, the Company issued an additional 958,333 founder shares to our sponsor, resulting in our sponsor holding an aggregate of 8,625,000 founder shares. All share amounts and related information have been retroactively restated to reflect the share capitalization (Note 6).
    (2)Includes an aggregate of up to 1,125,000 Class B ordinary shares, $0.0001 par value subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (Note 6).

     

    The accompanying notes are an integral part of these condensed financial statements.

     

    3

     

    DAEDALUS SPECIAL ACQUISITION CORP.

    CONDENSED STATEMENT OF CASH FLOWS

    FOR THE PERIOD FROM AUGUST 7, 2025 (INCEPTION) THROUGH SEPTEMBER 30, 2025

     

    Cash Flows from Operating Activities:    
    Net loss $(66,193)
    Changes in operating assets and liabilities:     
    Accounts payable  14,616 
    Net cash used in operating activities  (51,577)
          
    Cash Flows from Financing Activities:     
    Proceeds from issuance of Class B ordinary shares  25,000 
    Proceeds from promissory note – related party  171,939 
    Payment of offering costs  (145,362)
    Net cash provided by financing activities  51,577 
          
    Net change in cash  - 
    Cash, beginning of the period  - 
    Cash, end of the period  - 
          
    Supplemental disclosure of non-cash financing activities:     
    Deferred offering costs included in accrued offering costs $6,140 

     

    The accompanying notes are an integral part of these condensed financial statements.

     

    4

     

    DAEDALUS SPECIAL ACQUISITION CORP.

    NOTES TO CONDENSED FINANCIAL STATEMENTS

    SEPTEMBER 30, 2025

     

    Note 1 — Organization and Business Operations

     

    Daedalus Special Acquisition Corp. (the “Company”) is a blank check company incorporated as a Cayman Islands exempted company on August 7, 2025. The Company was incorporated for the purpose of merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Company has not selected any specific Business Combination target and the Company has not, nor has anyone on its behalf, engaged in any substantive discussions, directly or indirectly, with any Business Combination target with respect to an initial Business Combination with the Company.

     

    As of September 30, 2025, the Company has not commenced any operations. All activity for the period from August 7, 2025 (inception) through December 10, 2025 relates to the Company’s formation and the Initial Public Offering (as defined below). The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company may generate non-operating income in the form of interest income on cash and cash equivalents and dividend income from marketable securities purchased from the proceeds derived from the Initial Public Offering (as defined below). The Company has selected December 31 as its fiscal year end.

     

    On December 10, 2025, the Company consummated the initial public offering (the “Initial Public Offering”) of 25,000,000 units (the “Units”), including 2,500,000 Units issued pursuant to the partial exercise by the underwriters of their over-allotment option, at $10.00 per Unit, generating gross proceeds of $250,000,000. Each Unit consists of one Class A ordinary share (the “Public Shares”), and one-fourth of one redeemable warrant (the “Public Warrants”).

     

    Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 685,000 units (the “Private Units” and, with respect to the Class A ordinary shares included in the Private Units being offered, the “Private Placement Shares”) at a price of $10.00 per Private Placement Unit, in a private placement to the Company’s sponsor, Daedalus Special Acquisition LLC (the “Sponsor”), and BTIG, as representative for the underwriters in the Initial Public Offering, generating gross proceeds of $6,850,000. Each Private Unit consists of one Class A ordinary share and one-fourth of one redeemable warrant (the “Private Placement Warrants” and together with the Public Warrants, the “Warrants”). Each whole Warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment.

     

    Transaction costs amounted to $14,449,003, consisting of $5,000,000 of cash underwriting fee, $8,750,000 of deferred underwriting fee, and $699,003 of other offering costs.

     

    The Company’s management has broad discretion with respect to the specific application of the net proceeds of the Initial Public Offering and the Private Placement Units, although substantially all of the net proceeds are intended to be generally applied toward consummating a Business Combination (less deferred underwriting commissions).

     

    The Company’s Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net balance in the Trust Account (as defined below) (excluding the amount of contingent, deferred underwriting discounts held and taxes payable on the income earned on the Trust Account) at the time of the signing an agreement to enter into a Business Combination. However, the Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). There is no assurance that the Company will be able to successfully effect a Business Combination.

     

    Following the closing of the Initial Public Offering, an aggregate of $10.00 per Unit sold in the Initial Public Offering, or $250,000,000, from the net proceeds of the sale of the Units and the Private Units, was placed in a trust account (the “Trust Account”) and is initially invested only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations; the holding of these assets in this form is intended to be temporary and for the sole purpose of facilitating the intended Business Combination. To mitigate the risk that the Company might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that the Company holds investments in the Trust Account, the Company may, at any time (based on the management team’s ongoing assessment of all factors related to the Company’s potential status under the Investment Company Act), instruct the trustee to liquidate the investments held in the Trust Account and instead to hold the funds in the trust account in cash or in an interest bearing demand deposit account at a bank. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company to pay its taxes, if any, the proceeds from the Initial Public Offering and the sale of the Private Placement Units will not be released from the Trust Account until the earliest of (i) the completion of the Company’s initial Business Combination, (ii) the redemption of the Company’s public shares if the Company is unable to complete the initial Business Combination within 24 months from the closing of the Initial Public Offering or by such earlier liquidation date as the Company’s board of directors may approve (the “Completion Window”), subject to applicable law, or (iii) the redemption of the Company’s public shares properly submitted in connection with a shareholder vote to amend the Company’s amended and restated memorandum and articles of association to (A) modify the substance or timing of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Company’s public shares if the Company has not consummated an initial Business Combination within the Completion Window or (B) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity. The proceeds deposited in the Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims of the Company’s public shareholders.

     

    5

     

    The Company will provide the Company’s public shareholders with the opportunity to redeem all or a portion of their public shares upon the completion of the initial Business Combination either (i) in connection with a general meeting called to approve the initial Business Combination or (ii) without a shareholder vote by means of a tender offer. The decision as to whether the Company will seek shareholder approval of a proposed initial Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public shareholders will be entitled to redeem their shares at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account calculated as of two business days prior to the consummation of the initial Business Combination, including interest earned on the funds held in the Trust Account (less taxes payable (other than excise or similar taxes)), divided by the number of then outstanding public shares, subject to the limitations. The amount in the Trust Account is initially anticipated to be $10.00 per public share. The ordinary shares subject to redemption were recorded at redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity.”

     

    The Company will have only the duration of the Completion Window to complete the initial Business Combination. However, if the Company is unable to complete its initial Business Combination within the Completion Window, the Company will as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account (less taxes payable (other than excise or similar taxes) and up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will constitute full and complete payment for the public shares and completely extinguish public shareholders’ rights as shareholders (including the right to receive further liquidation or other distributions, if any), subject to the Company’s obligations under Cayman Islands law to provide for claims of creditors and subject to the other requirements of applicable law.

     

    The Sponsor, officers and directors have entered into a letter agreement with the Company, pursuant to which they have agreed to (i) waive their redemption rights with respect to their founder shares and public shares in connection with the completion of the initial Business Combination; (ii) waive their redemption rights with respect to their founder shares and public shares in connection with a shareholder vote to approve an amendment to the Company’s amended and restated memorandum and articles of association; (iii) waive their rights to liquidating distributions from the Trust Account with respect to their founder shares if the Company fails to complete the initial Business Combination within the Completion Window, although they will be entitled to liquidating distributions from the Trust Account with respect to any public shares they hold if the Company fails to complete the initial Business Combination within the Completion Window and to liquidating distributions from assets outside the Trust Account; and (iv) vote any founder shares held by them and any public shares purchased during or after the Initial Public Offering (including in open market and privately negotiated transactions, aside from shares they may purchase in compliance with the requirements of Rule 14e-5 under the Exchange Act, which would not be voted in favor of approving the Business Combination) in favor of the initial Business Combination.

     

    The Company’s Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has entered into a written letter of intent, confidentiality or other similar agreement or Business Combination agreement, reduce the amount of funds in the Trust Account to below the lesser of (i) $10.00 per public share and (ii) the actual amount per public share held in the Trust Account as of the date of the liquidation of the Trust Account, if less than $10.00 per share due to reductions in the value of the trust assets, less taxes payable (other than excise or similar taxes), provided that such liability will not apply to any claims by a third party or prospective target business who executed a waiver of any and all rights to the monies held in the Trust Account (whether or not such waiver is enforceable) nor will it apply to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). However, the Company has not asked the Sponsor to reserve for such indemnification obligations, nor has the Company independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations, and the Company believes that the Sponsor’s only assets are securities of the Company. Therefore, the Company cannot assure that the Sponsor would be able to satisfy those obligations

     

    6

     

    Liquidity and Capital Resources

     

    As of September 30, 2025, the Company had no cash and a working capital deficit of $192,695. The Company has incurred and expects to continue to incur significant costs in pursuit of its financing and acquisition plans. In connection with the Company’s assessment of going concern considerations in accordance with ASC 205-40, “Presentation of Financial Statements – Going Concern”, as of September 30, 2025, the Company does not have sufficient liquidity to meet its working capital needs until a minimum of one year from the date of issuance of this financial statement. However, the Company completed its Initial Public Offering on December 10, 2025, which provides sufficient liquidity to meet its working capital needs until a minimum of one year from the date of issuance of this financial statement. The Company cannot assure that its plans to raise capital or consummate an initial Business Combination will be successful.

     

    Risks and Uncertainties

     

    The United States and global markets are experiencing volatility and disruption following the geopolitical instability resulting from the ongoing Russia-Ukraine conflict and the recent escalation of the Israel-Hamas conflict. In response to the ongoing Russia-Ukraine conflict, the North Atlantic Treaty Organization (“NATO”) deployed additional military forces to eastern Europe, and the United States, the United Kingdom, the European Union and other countries have announced various sanctions and restrictive actions against Russia, Belarus and related individuals and entities, including the removal of certain financial institutions from the Society for Worldwide Interbank Financial Telecommunication payment system. Certain countries, including the United States, have also provided and may continue to provide military aid or other assistance to Ukraine and to Israel, increasing geopolitical tensions among a number of nations. The invasion of Ukraine by Russia and the escalation of the Israel-Hamas conflict and the resulting measures that have been taken, and could be taken in the future, by NATO, the United States, the United Kingdom, the European Union, Israel and its neighboring states and other countries have created global security concerns that could have a lasting impact on regional and global economies. Although the length and impact of the ongoing conflicts are highly unpredictable, they could lead to market disruptions, including significant volatility in commodity prices, credit and capital markets, as well as supply chain interruptions and increased cyber-attacks against U.S. companies. Additionally, any resulting sanctions could adversely affect the global economy and financial markets and lead to instability and lack of liquidity in capital markets.

     

    Furthermore, changes to policy implemented by the U.S. Congress, the Trump administration or any new administration have impacted and may in the future impact, among other things, the U.S. and global economy, international trade relations, unemployment, immigration, healthcare, taxation, the U.S. regulatory environment, inflation and other areas. For example, during the prior Trump administration, increased tariffs were implemented on goods imported into the U.S., particularly from China, Canada, and Mexico. Historically, tariffs have led to increased trade and political tensions, between not only the U.S. and China, but also between the U.S. and other countries in the international community. In response to tariffs, other countries have implemented retaliatory tariffs on U.S. goods.

     

    On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (“OBBA”). ASC 740, “Income Taxes”, requires the effects of changes in tax laws to be recognized in the period in which the legislation is enacted. The Company is currently evaluating the impact of the new law. However, none of the tax provisions are expected to have a significant impact on the Company’s financial statements.

     

    Any of the above mentioned factors, or any other negative impact on the global economy, capital markets or other geopolitical conditions resulting from the Russian invasion of Ukraine, the Israel-Hamas conflict and subsequent sanctions or related actions, and tariff on imports from foreign countries could adversely affect the Company’s search for an initial business combination and any target business with which the Company may ultimately consummate an initial Business Combination.

     

    Note 2 — Significant Accounting Policies

     

    Basis of Presentation

     

    The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, the financial statements do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows.

     

    In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

     

    The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s prospectus for its Initial Public Offering as filed with the SEC on December 10, 2025, as well as the Company’s Current Report on Form 8-K, as filed with the SEC on December 16, 2025. The interim results for the period from August 7, 2025 (inception) through September 30, 2025, are not necessarily indicative of the results to be expected for the year ending December 31, 2025 or for any future periods.

     

    7

     

    Emerging Growth Company Status

     

    The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved.

     

    Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

     

    Use of Estimates

     

    The preparation of the financial statement in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

     

    Cash and Cash Equivalents

     

    The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company had no cash and cash equivalents as of September 30, 2025 and August 12, 2025.

     

    Offering Costs Associated with the Initial Public Offering

     

    The Company complies with the requirements of the Financial Accounting Standards Board (“FASB”) ASC 340-10-S99 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of Offering.” Deferred offering costs consist principally of professional and registration fees that are directly related to the Proposed Public Offering. FASB ASC 470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components. The Company applies this guidance to allocate Initial Public Offering proceeds from the Public Units between Class A ordinary shares and warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned value of the warrants and then to the Class A ordinary shares. Offering costs allocated to the Class A ordinary shares subject to possible redemption will be charged to temporary equity. Offering costs allocated to the Public and Private Placement Warrants will be charged to shareholder’s equity, as the Public and Private Placement Warrants, after management’s evaluation, will be accounted for under equity treatment. As of September 30, 2025 and August 12, 2025, the Company had deferred offering costs of $151,502 and $25,000, respectively.

     

    Fair Value of Financial Instruments

     

    The fair value of the Company’s assets and liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximate the carrying amounts represented in the balance sheet, primarily due to their short-term nature.

     

    Fair value is defined as the price that would be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

     

      ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
         
      ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

     

      ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

     

    8

     

    Derivative Financial Instruments

     

    The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non-current based on whether or not net cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date. The underwriters’ over-allotment option is deemed to be a freestanding financial instrument indexed on the contingently redeemable shares and will be accounted for as a liability pursuant to ASC 480 if not fully exercised at the time of the Initial Public Offering.

     

    Income Taxes

     

    The Company accounts for income taxes under ASC Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

     

    ASC Topic 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company’s management determined that the Cayman Islands is the Company’s major tax jurisdiction. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. As of September 30, 2025 and August 12, 2025, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

     

    The Company is considered to be a Cayman Islands exempted company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the periods presented.

     

    Net Loss per Ordinary Share

     

    Net loss per ordinary share is computed by dividing net loss by the weighted average number of ordinary shares issued and outstanding during the period, excluding ordinary shares subject to forfeiture. Weighted average shares were reduced for the effect of an aggregate of 1,125,000 Class B ordinary shares that are subject to forfeiture if the over-allotment option is not exercised in full or in part by the underwriters (see Note 6). At September 30, 2025, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted loss per ordinary share is the same as basic loss per ordinary share for the period presented.

     

    Warrant Instruments

     

    The Company accounts for the Public Warrants and Private Placement Warrants issued in connection with the Initial Public Offering and the private placement in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated the classification of the warrant instruments and accounted for the Warrants under equity treatment at their relative fair values. There are no Public Warrants or Private Placement Warrants outstanding as of September 30, 2025 and August 12, 2025.

     

    Recent Accounting Standards

     

    In November 2023, the FASB issued ASU 2023-07, “Segment reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. The ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in this ASU and existing segment disclosures in Topic 280. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-07 on August 7, 2025, the date of its incorporation.

     

    9

     

    In December 2023, the FASB issued ASU 2023-09, Income taxes (Topic 740): Improvements to Income Tax Disclosure (“ASU 2023-09”), which enhances the transparency and usefulness of income tax disclosures. ASU 2023-09 will be effective for fiscal years beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. The Company adopted ASU 2023-09 on August 7, 2025, the date of its incorporation. Adoption of the ASU did not impact the Company’s financial position, results of operations or cash flows.

     

    Note 3 — Initial Public Offering

     

    Pursuant to the Initial Public Offering on December 10, 2025, the Company sold 25,000,000 Units (including 2,500,000 Units sold pursuant to the underwriters’ over-allotment option) at a purchase price of $10.00 per Unit. Each Unit that the Company is offering has a price of $10.00 and consists of one Public Share, and one-fourth of one redeemable Public Warrant. Each whole Public Warrant will entitle the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment. Each Public Warrant will become exercisable 30 days after the completion of the initial Business Combination and will expire five years after the completion of the initial Business Combination, or earlier upon redemption or liquidation.

     

    Note 4 — Private Placement

     

    Simultaneously with the closing of the Initial Public Offering, the Sponsor and the underwriters purchased an aggregate of 685,000 Private Placement Units (including 50,000 Private Units pursuant to the underwriters’ over-allotment option), at a price of $10.00 per unit, or $6,850,000 in the aggregate. Of those 685,000 Private Placement Units, the Sponsor purchased 435,000 Private Placement Units and the underwriters purchased 250,000 Private Placement Units. Each Private Placement Unit consists of one Class A ordinary share (each, a “Private Placement Share”) and one-fourth of one redeemable warrant (each, a “Private Placement Warrant”). Each whole Private Placement Warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share.

     

    The Private Placement Warrants will be identical to the Public Warrants sold in the Initial Public Offering except that, so long as they are held by the Sponsor, or their permitted transferees, the Private Placement Warrants (i) may not (including the Class A ordinary shares issuable upon exercise of these Private Placement Warrants), subject to certain limited exceptions, be transferred, assigned or sold by the holders until 30 days after the completion of the initial Business Combination, and (ii) will be entitled to registration rights.

     

    The Sponsor, officers and directors have entered into a letter agreement with the Company, pursuant to which they agree to (i) waive their redemption rights with respect to any shares held by them in connection with the completion of the initial Business Combination; (ii) waive their redemption rights with respect to any shares held by them in connection with a shareholder vote to approve an amendment to the amended and restated memorandum and articles of association (A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with the initial Business Combination or to redeem 100% of the Public Shares if the Company has not consummated an initial Business Combination within the Completion Window or (B) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity; (iii) waive their rights to liquidating distributions from the Trust Account with respect to their founder shares and Private Placement Shares if the Company fails to complete an initial Business Combination within the Completion Window, although they will be entitled to liquidating distributions from the Trust Account with respect to any Public Shares they hold if the Company fails to complete an initial Business Combination within the prescribed time frame and to liquidating distributions from assets outside the Trust Account; and (iv) vote any founder shares and Private Placement Shares held by them and any Public Shares purchased during or after this offering (including in open market and privately-negotiated transactions, aside from shares they may purchase in compliance with the requirements of Rule 14e-5 under the Exchange Act, which would not be voted in favor of approving the Business Combination transaction) in favor of the initial Business Combination.

     

    10

     

    Note 5 — Segment Information

     

    ASC Topic 280, “Segment Reporting”, establishes standards for companies to report, in their financial statements, information about operating segments, products, services, geographic areas, and major customers. Operating segments are defined as components of an enterprise that engage in business activities from which it may recognize revenues and incur expenses, and for which separate financial information is available that is regularly evaluated by the Company’s CODM, or group, in deciding how to allocate resources and assess performance.

     

    The Company’s CODM has been identified as the Chief Financial Officer, who reviews the operating results for the Company as a whole to make decisions about allocating resources and assessing financial performance. Accordingly, management has determined that the Company only has one reportable segment.

     

    The CODM assesses performance for the single segment and decides how to allocate resources based on net income or loss that also is reported on the statement of operations as net income or loss. When evaluating the Company’s performance and making key decisions regarding resource allocation, the CODM reviews several key metrics included in net income or loss, which include the following:

     

       For the Period
    from August 7,
    2025
    (inception)
    Through
    September 30,
    2025
     
    Formation, general and administrative expenses $66,193 
    Net Loss $(66,193)

     

    The CODM reviews formation, general and administrative expenses to manage and forecast cash to ensure enough capital is available to complete a business combination or similar transaction within the business combination period. The CODM also reviews formation, general and administrative expenses to manage, maintain and enforce all contractual agreements to ensure costs are aligned with all agreements and budget. Formation, general and administrative expenses, as reported on the statement of operations, are the significant segment information provided to the CODM on a regular basis. All other segment items included in net income or loss are reported on the statement of operations and described within their respective disclosures.

     

    Note 6 — Related Party Transactions

     

    Founder Shares

     

    On August 12, 2025, the Company issued an aggregate of 7,666,667 Class B ordinary shares, $0.0001 par value (the “Founder Shares”), in exchange for a $25,000 payment (approximately $0.003 per share) from the Sponsor to cover certain expenses on behalf of the Company. On December 8, 2025, through a share capitalization, the Company issued an additional 958,333 Founder Shares to our sponsor, resulting in our sponsor holding an aggregate of 8,625,000 Founder Shares. Up to 1,125,000 of the Founder Shares are subject to complete or partial forfeiture by the Sponsor for no consideration depending on the extent to which the underwriters’ over-allotment option is exercised. On December 10, 2025, the underwriters partially exercised their over-allotment option, resulting in 291,667 Founder Shares subject to forfeiture.

     

    On December 8, 2025, upon the pricing of the Initial Public Offering, the Sponsor sold membership interests to each of three directors of the Company and Chief Financial Officer (“CFO”). The membership interests each director received in the Sponsor correspond to 30,000 Founder Shares and the CFO to 25,000 Founder Shares, for an aggregate of 115,000 Founder Shares, to be distributed to the directors and CFO upon consummation of a Business Combination. The total consideration paid for these membership interests was $375. Each Founder Share will automatically convert to one Class A ordinary share concurrently with or immediately following the consummation of a Business Combination. The Sponsor will retain all voting and dispositive power over all Founder Shares until the consummation of the Business Combination, after which the Sponsor will distribute to each holder of the membership interests its share of the Founder Shares, subject to applicable lock-up restrictions.

     

    The sale of the membership interests to the Company’s directors is in the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon the grant date. The fair value of the 115,000 shares granted to the Company’s directors was $686,000 or $5.97 per share. The Founder Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founder Shares is recognized only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance. As of December 10, 2025, the Company determined that a Business Combination is not considered probable, and, therefore, no stock-based compensation expense has been recognized. Stock-based compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in an amount equal to the number of Founder Shares multiplied by the grant date fair value per share (unless subsequently modified) less the amount initially received for the purchase of the Founder Shares.

     

    11

     

    As used herein, unless the context otherwise requires, “Founder Shares” shall be deemed to include the Public Shares issuable upon conversion thereof. The Founder Shares are identical to the Public Shares included in the Units being sold in the Initial Public Offering except that the Founder Shares automatically convert into Public Shares at the time of the initial Business Combination (with such conversion taking place immediately prior to, simultaneously with, or immediately following the time of the initial Business Combination, as may be determined by the directors of the Company) or earlier at the option of the holder and are subject to certain transfer restrictions, as described in more detail below. The sponsor has agreed to forfeit up to an aggregate of 1,125,000 Founder Shares to the extent that the over-allotment option is not exercised in full by the underwriters so that the Founder Shares will represent approximately 25% of the Company’s issued and outstanding shares (excluding the Class A ordinary shares underlying the Private Placement Units) after the Initial Public Offering. If the Company increases or decreases the size of the offering, the Company will effect a share capitalization or share surrender, as applicable, immediately prior to the consummation of the Initial Public Offering in such amount as to maintain the Founder Share ownership of the Company’s shareholders prior to the Initial Public Offering at 25% of the Company’s issued and outstanding ordinary shares upon the consummation of the Initial Public Offering. On December 10, 2025, the underwriters partially exercised their over-allotment option. The Sponsor will not be entitled to redemption rights with respect to any Founder Shares and any Public Shares held by the Sponsor in connection with the completion of the initial Business Combination. If the initial Business Combination is not completed within 24 months from the closing of the Initial Public Offering, the Sponsor will not be entitled to rights to liquidating distributions from the Trust Account with respect to any Founder Shares held by it.

     

    The Sponsor has agreed not to transfer, assign or sell any of its Founder Shares until the earlier to occur of (A) six months after the completion of the initial Business Combination or (B) subsequent to the initial Business Combination (x) if the last reported sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing after the initial Business Combination or (y) the date on which the Company completes a liquidation, merger, share exchange, reorganization or other similar transaction that results in all of the public shareholders having the right to exchange their ordinary shares for cash, securities or other property.

     

    Promissory Note — Related Party

     

    On August 12, 2025, the Company and the Sponsor entered into a loan agreement, whereby the Sponsor agreed to loan the Company an aggregate of up to $300,000 to cover expenses related to the Initial Public Offering pursuant to a promissory note (the “Note”). This loan was non-interest bearing and payable on the earlier of August 12, 2026, or the date on which the Company consummates the Initial Public Offering. As of September 30, 2025 and August 12, 2025, the Company had borrowed $171,939 and $10,500, respectively, under the Note. On December 10, 2025, the Note was fully repaid to the Sponsor and is no longer available.

     

    Administrative Services Agreement

     

    Commencing on the effective date of the Initial Public Offering, the Company entered into an agreement with our Sponsor to pay an aggregate of $10,000 per month for office space and administrative and support services. Upon completion of the initial Business Combination or the liquidation, the Company will cease paying the $10,000 per month fee. For the period from August 7, 2025 (inception) through September 30, 2025, the Company had not incurred any amounts due under the Administrative Services Agreement. As of September 30, 2025 and August 12, 2025, no related amounts are included in accounts payable and accrued expenses in the accompanying balance sheets.

     

    Related Party Loans

     

    In addition, in order to finance transaction costs in connection with its initial Business Combination, the Sponsor or an affiliate of the Sponsor, or the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If the Company completes its initial Business Combination, the Company would repay the Working Capital Loans. In the event that the initial Business Combination does not close, the Company may use a portion of proceeds held outside the Trust Account to repay the Working Capital Loans but no proceeds held in the Trust Account would be used to repay the Working Capital Loans. If the Sponsor makes any Working Capital Loans, up to $1,500,000 of such loans may be convertible into private placement-equivalent units of the post-Business Combination entity at a price of $10.00 per unit (“Working Capital Units”), with each unit comprised of one Class A ordinary shares (“Working Capital Share”) and one-fourth of one redeemable warrant to purchase one Class A ordinary share at an exercise price of $11.50 per share (“Working Capital Warrant”). As of September 30, 2025 and August 12, 2025, the Company had no borrowings under the Working Capital Loans.

     

    12

     

    Note 7 — Commitments and Contingencies

     

    Registration Rights

     

    The holders of the founder shares, placement units, and Working Capital Units that may be issued upon conversion of loans made by our sponsor or one of its affiliates, and their permitted transferees, will have registration rights to require us to register a sale of any of our securities held by them (in the case of the founder shares, only after conversion to our Class A ordinary shares) pursuant to a registration rights agreement to be signed prior to or on the effective date of this offering. These holders will be entitled to make up to three demands, excluding short form registration demands, that we register such securities for sale under the Securities Act. In addition, these holders will have “piggy-back” registration rights to include such securities in other registration statements filed by us and rights to require us to register for resale such securities pursuant to Rule 415 under the Securities Act. However, the registration rights agreement provides that we will not be required to effect or permit any registration or cause any registration statement to become effective until termination of the applicable lock-up period. We will bear the expenses incurred in connection with the filing of any such registration statements.

     

    Underwriting Agreement

     

    The Company granted the underwriters a 45-day option from the date of the Initial Public Offering to purchase up to an additional 3,375,000 Units to cover over-allotments, if any. On December 10, 2025, the underwriters partially exercised their over-allotment option for an additional 2,500,000 Units, generating additional proceeds to the Company of $25,000,000.

     

    The underwriters were paid a cash underwriting discount of $5,000,000 ($0.20 per Unit offered in the Initial Public Offering). Additionally, the underwriters are entitled to a contingent, deferred fee of $0.35 per Unit, or $8,750,000. The contingent, deferred fee will become payable to the Underwriter from the amounts held in the Trust Account solely in the event that the Company completes a Business Combination. Per the underwriting agreement, $0.10 per Unit of such $0.35 per Unit shall be due solely on amounts remaining in the trust account following all properly submitted shareholder redemptions in connection with the consummation of our initial Business Combination and $0.05 per Unit of such $0.35 per Unit shall be allocable by us to third parties that are members of FINRA, but that are not participating in this Offering, that assist us in consummating our initial Business Combination.

     

    Note 8 — Shareholder’s (Deficit) Equity

     

    Preference Shares — The Company is authorized to issue a total of 1,000,000 preference shares at par value of $0.0001 each. As of September 30, 2025 and August 12, 2025, there were no preference shares issued or outstanding.

     

    Class A Ordinary Shares — The Company is authorized to issue a total of 300,000,000 Class A ordinary shares at par value of $0.0001 each. As of September 30, 2025 and August 12, 2025, there were no Class A ordinary shares issued and outstanding.

     

    Class B Ordinary Shares — The Company is authorized to issue a total of 30,000,000 Class B ordinary shares at par value of $0.0001 each. On August 12, 2025, the Company issued 7,666,667 Class B ordinary shares to the Sponsor for $25,000, or approximately $0.003 per share. On December 8, 2025, through a share capitalization, the Company issued an additional 958,333 Founder Shares to the Sponsor, resulting in the Sponsor holding an aggregate of 8,625,000 founder shares. The Founder Shares include an aggregate of up to 1,125,000 shares subject to complete or partial forfeiture if the over-allotment option is not exercised by the underwriters in full or in part, so that the initial shareholders will collectively own 25% of the Company’s issued and outstanding ordinary shares (excluding the Class A ordinary shares underlying the Private Placement Units) after the Initial Public Offering. As of September 30, 2025 and August 12, 2025, there were 8,625,000 Class B ordinary shares issued and outstanding.

     

    The Founder Shares will automatically convert into Class A ordinary shares at the time of a Business Combination or earlier at the option of the holder, on a one-for-one basis, subject to adjustment. In the case that additional Class A ordinary shares, or equity-linked securities, are issued or deemed issued in excess of the amounts issued in the Initial Public Offering and related to the closing of a Business Combination, the ratio at which the Class B ordinary shares will convert into Class A ordinary shares will be adjusted (unless the holders of a majority of the issued and outstanding Class B ordinary shares agree to waive such anti-dilution adjustment with respect to any such issuance or deemed issuance) so that the number of Class A ordinary shares issuable upon conversion of all Class B ordinary shares will equal, in the aggregate, on an as-converted basis, 25% of the sum of all ordinary shares issued and outstanding upon the completion of the Initial Public Offering plus all Class A ordinary shares and equity-linked securities issued or deemed issued in connection with a Business Combination, excluding any shares or equity-linked securities issued, or to be issued, to any seller in a Business Combination.

     

    13

     

    Except as set forth herein, holders of record of the Company’s Class A ordinary shares and Class B ordinary shares are entitled to one vote for each share held on all matters to be voted on by shareholders. Unless specified in the amended and restated memorandum and articles of association or as required by the Companies Act or stock exchange rules, an ordinary resolution under Cayman Islands law and the amended and restated memorandum and articles of association, which requires the affirmative vote of at least a majority of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting of the company is generally required to approve any matter voted on by the Company’s shareholders. Approval of certain actions requires a special resolution under Cayman Islands law, which (except as specified below) requires the affirmative vote of at least two-thirds of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting, and pursuant to the Company’s amended and restated memorandum and articles of association, such actions include amending the amended and restated memorandum and articles of association and approving a statutory merger or consolidation with another company. There is no cumulative voting with respect to the appointment of directors, meaning, following the Company’s initial Business Combination, the holders of more than 50% of the ordinary shares voted for the appointment of directors can elect all of the directors. Prior to the consummation of the initial Business Combination, only holders of the Class B ordinary shares will (i) have the right to vote on the appointment and removal of directors and (ii) be entitled to vote on continuing the Company in a jurisdiction outside the Cayman Islands (including any special resolution required to amend the constitutional documents or to adopt new constitutional documents, in each case, as a result of approving a transfer by way of continuation in a jurisdiction outside the Cayman Islands). Holders of the Class A ordinary shares will not be entitled to vote on these matters during such time. These provisions of the amended and restated memorandum and articles of association may only be amended if approved by a special resolution passed by the affirmative vote of at least 90% (or, where such amendment is proposed in respect of the consummation of the initial Business Combination, two-thirds) of the votes cast by such shareholders as, being entitled to do so, vote in person or, where proxies are allowed, by proxy at the applicable general meeting of the Company.

     

    Warrants — As of September 30, 2025 and August 12, 2025, there were no Public Warrants outstanding. Each whole Warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment as discussed herein. The Public Warrants cannot be exercised until the later of 12 months from the closing of this offering and 30 days after the completion of the initial Business Combination, and will expire at 5:00 p.m., New York City time, five years after the completion of the initial Business Combination or earlier upon redemption or liquidation.

     

    The Company will not be obligated to deliver any Class A ordinary shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act with respect to the Class A ordinary shares underlying the Public Warrants is then effective and a prospectus relating thereto is current. No Public Warrant will be exercisable and the Company will not be obligated to issue a Class A ordinary share upon exercise of a Public Warrant unless the Class A ordinary share issuable upon such Public Warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the Public Warrants. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a Public Warrant, the holder of such Public Warrant will not be entitled to exercise such Public Warrant and such Public Warrant may have no value and expire worthless. In no event will the Company be required to net cash settle any Public Warrant. In the event that a registration statement is not effective for the exercised Public Warrants, the purchaser of a Public Unit containing such Public Warrant will have paid the full purchase price for the Public Unit solely for the Class A ordinary share underlying such Public Unit.

     

    Under the terms of the warrant agreement, the Company will agree that, as soon as practicable, but in no event later than 20 business days after the closing of its Business Combination, it will use commercially reasonable efforts to file with the SEC a post-effective amendment to the registration statement for the Initial Public Offering or a new registration statement covering the registration under the Securities Act of the Class A ordinary shares issuable upon exercise of the Public Warrants and thereafter will use its commercially reasonable efforts to cause the same to become effective within 60 business days following the Company’s initial Business Combination and to maintain a current prospectus relating to the Class A ordinary shares issuable upon exercise of the Public Warrants until the expiration of the Public Warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the Class A ordinary shares issuable upon exercise of the Public Warrants is not effective by the sixtieth (60th) business day after the closing of the initial Business Combination, Public Warrant holders may, until such time as there is an effective registration statement and during any period when the Company will have failed to maintain an effective registration statement, exercise Public Warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if the Class A ordinary shares are at the time of any exercise of a Public Warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of Public Warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, and in the event the Company does not so elect, the Company will use its commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available.

     

    If the holders exercise their Public Warrants on a cashless basis, they would pay the warrant exercise price by surrendering the Public Warrants for that number of Class A ordinary shares equal to the quotient obtained by dividing (x) the product of the number of Class A ordinary shares underlying the Public Warrants, multiplied by the excess of the “fair market value” of the Class A ordinary shares over the exercise price of the Public Warrants by (y) the fair market value. The “fair market value” is the average reported closing price of the Class A ordinary shares for the 10 trading days ending on the third trading day prior to the date on which the notice of exercise is received by the warrant agent or on which the notice of redemption is sent to the holders of Public Warrants, as applicable.

     

    14

     

    Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00: The Company may redeem the outstanding Warrants:

     

    ●in whole and not in part;

     

    ●at a price of $0.01 per Public Warrant;

     

    ●upon a minimum of 30 days’ prior written notice of redemption (the “30-day redemption period”); and

     

    ●if, and only if, the closing price of the Class A ordinary shares equals or exceeds $18.00 per share (as adjusted for adjustments to the number of shares issuable upon exercise or the exercise price of a Public Warrant) for any 20 trading days within a 30-trading day period commencing at least 30 days after completion of the Company’s initial Business Combination and ending three business days before the Company sends the notice of redemption to the Public Warrant holders.

     

    Additionally, if the number of outstanding Class A ordinary shares is increased by a share capitalization payable in Class A ordinary shares, or by a subdivision of ordinary shares or other similar event, then, on the effective date of such share capitalization, subdivision or similar event, the number of Class A ordinary shares issuable on exercise of each Public Warrant will be increased in proportion to such increase in the outstanding ordinary shares. A rights offering made to all or substantially all holders of ordinary shares entitling holders to purchase Class A ordinary shares at a price less than the fair market value will be deemed a share capitalization of a number of Class A ordinary shares equal to the product of (i) the number of Class A ordinary shares actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for Class A ordinary shares) and (ii) the quotient of (x) the price per Class A ordinary share paid in such rights offering and (y) the fair market value. For these purposes (i) if the rights offering is for securities convertible into or exercisable for Class A ordinary shares, in determining the price payable for Class A ordinary shares, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) fair market value means the volume weighted average price of Class A ordinary shares as reported during the ten (10) trading day period ending on the trading day prior to the first date on which the Class A ordinary shares trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

     

    In addition, if (x) we issue additional Class A ordinary shares or equity-linked securities for capital raising purposes in connection with the closing of our initial business combination at an issue price or effective issue price of less than $9.20 per Class A ordinary share (with such issue price or effective issue price to be determined in good faith by our board of directors and, in the case of any such issuance to our initial shareholders or their affiliates, without taking into account any founder shares held by our initial shareholders or such affiliates, as applicable, prior to such issuance) (the “Newly Issued Price”), (y) the aggregate gross proceeds from such issuances represent more than 60% of the total equity proceeds (including from such issuances and this offering), and interest thereon, available for the funding of our initial business combination on the date of the consummation of our initial business combination (net of redemptions) and (z) the volume weighted average trading price of our Class A ordinary shares during the 20 trading day period starting on the trading day prior to the day on which we consummate our initial business combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger prices will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price.

     

    Note 9 — Subsequent Events

     

    The Company evaluated subsequent events and transactions that occurred after the balance sheet date through the date that the financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statements, other than those disclosed below.

     

    On December 8, 2025, upon the pricing of the Initial Public Offering, the Sponsor sold membership interests to each of three directors of the Company and Chief Financial Officer (“CFO”). The membership interests each director received in the Sponsor correspond to 30,000 Founder Shares and the CFO to 25,000 Founder Shares, for an aggregate of 115,000 Founder Shares, to be distributed to the directors and CFO upon consummation of a Business Combination. The total consideration paid for these membership interests was $375.

     

    On December 10, 2025, the Company consummated the Initial Public Offering of 25,000,000 Units, including the partial exercise by the underwriters of their over-allotment option in the amount of 2,500,000 Units, at $10.00 per Unit, generating gross proceeds of $250,000,000. Each Unit consists of one Public Share, and one-fourth of one Public Warrant.

     

    Simultaneously with the closing of the Initial Public Offering, the Company consummated the sale of 685,000 Private Units, including 50,000 Private Units purchased as a result of the underwriters partial exercise of their over-allotment option, at a price of $10.00 per Private Unit, in a private placement to the Sponsor, and the Underwriters, generating gross proceeds of $6,850,000. Each Private Unit consists of one Class A ordinary share and one-fourth of one Private Placement Warrants. Each whole Warrant entitles the holder to purchase one Class A ordinary share at a price of $11.50 per share, subject to adjustment.

     

    Following the closing of the Initial Public Offering, an aggregate of $10.00 per Unit sold in the Initial Public Offering, or $250,000,000, from the net proceeds of the sale of the Units and the Private Units, was placed in a Trust Account and is initially invested in cash.

     

    On December 10, 2025, the underwriter was paid a cash underwriting discount of $5,000,000 ($0.20 per Unit offered in the Initial Public Offering).

     

    Transaction costs amounted to $14,449,003, consisting of $5,000,000 of cash underwriting fee, $8,750,000 of deferred underwriting fee, and $699,003 of other offering costs.

     

    15

     

    Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

     

    Unless otherwise stated or the context otherwise requires, references in this quarterly report to (i) the “Company,” “us,” or “we” are to Daedalus Special Acquisition Corp., a Cayman Islands exempted company; (ii) “founder shares” are to shares of our Class B ordinary shares initially purchased by our Sponsor in a private placement prior to our Initial Public Offering, and the shares of our Class A ordinary shares issued upon the conversion thereof; and (iii) “Sponsor” are to Daedalus Special Acquisition LLC, a Delaware limited liability company. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the financial statements and the notes thereto contained elsewhere in this report. Certain information contained in the discussion and analysis set forth below includes forward-looking statements that involve risks and uncertainties.

     

    Special Note Regarding Forward-Looking Statements

     

    This quarterly report, including statements under this “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” includes forward-looking statements. These forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not a forward-looking statement. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying some of the important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the discussion under the headings “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in our final prospectus filed with the U.S. Securities and Exchange Commission (the “SEC”) on December 10, 2025. The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, we disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

     

    Overview

     

    We are a newly incorporated blank check company, incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities. We have not selected any specific business combination target, and we have not, nor has anyone on our behalf, engaged in any substantive discussions, directly or indirectly, with any business combination target with respect to a business combination with us. We intend to effectuate our initial business combination using cash from the proceeds of the Initial Public Offering (as defined below) and the sale of the Private Units (as defined below), our shares, debt or a combination of cash, shares and debt. We intend to effectuate our initial business combination using cash from the proceeds of this offering and the sale of the private units, our common equity or any preferred equity that we may create in accordance with the terms of our charter documents, debt, or a combination of cash, common or preferred equity and debt.

     

    The issuance of additional ordinary shares or the creation of one or more classes of preference shares during our initial business combination:

     

      ● may significantly dilute the equity interest of investors in this offering who would not have pre-emption rights in respect of any such issue;

     

      ● may subordinate the rights of holders of ordinary shares if the rights, preferences, designations and limitations attaching to the preference shares are senior to those afforded our ordinary shares;

     

      ● could cause a change in control if a substantial number of ordinary shares are issued, which may affect, among other things, our ability to use our net operating loss carry forwards, if any, and could result in the resignation or removal of our present officers and directors;

     

      ● may have the effect of delaying or preventing a change of control of us by diluting the share ownership or voting rights of a person seeking to obtain control of us; and

     

      ● may adversely affect prevailing market prices for our public shares.

     

    16

     

    Similarly, if we issue debt securities or otherwise incur significant indebtedness, it could result in:

     

      ● default and foreclosure on our assets if our operating revenues after our initial business combination are insufficient to repay our debt obligations;

     

      ● acceleration of our obligations to repay the indebtedness even if we make all principal and interest payments when due if we breach certain covenants that require the maintenance of certain financial ratios or reserves without a waiver or renegotiation of that covenant;

     

      ● our immediate payment of all principal and accrued interest, if any, if the debt is payable on demand;

     

      ● our inability to obtain necessary additional financing if any document governing such debt contains covenants restricting our ability to obtain such financing while the debt security is outstanding;

     

      ● our inability to pay dividends on our ordinary shares;

     

      ● using a substantial portion of our cash flow to pay principal and interest on our debt, which will reduce the funds available for dividends on our ordinary shares if declared, expenses, capital expenditures, acquisitions and other general corporate purposes;

     

      ● limitations on our flexibility in planning for and reacting to changes in our business and in the industry in which we operate;

     

      ● increased vulnerability to adverse changes in general economic, industry and competitive conditions and adverse changes in government regulation; and

     

      ● limitations on our ability to borrow additional amounts for expenses, capital expenditures, acquisitions, debt service requirements, execution of our strategy and other purposes and other disadvantages compared to our competitors who have less debt.

     

    Results of Operations

     

    As of September 30, 2025, we had not commenced any operations. All activity from inception through September 30, 2025 relates to our formation and preparation for the Initial Public Offering. We will not generate any operating revenues until after the completion of an initial business combination, at the earliest. We will generate non-operating income in the form of interest earned on the net proceeds of the Initial Public Offering placed in the Trust Account. We expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

     

    For the period from August 7, 2025 (inception) through September 30, 2025, we had net loss of $66,193, which consisted of formation, general and administrative expenses.

     

    Liquidity and Capital Resources

     

    As of September 30, 2025, we had no cash equivalents and a working capital deficit of $192,695.

     

    Our liquidity needs have been satisfied prior to the completion of the Initial Public Offering through receipt of a $25,000 capital contribution from our sponsor in exchange for the issuance of the founder shares to our sponsor and up to $300,000 in a loan from our sponsor under the Promissory Note. This loan was non-interest bearing and unsecured. This loan was due at the earlier of August 12, 2026 or the closing of the Initial Public Offering and was anticipated to be repaid upon completion of the Initial Public Offering. On December 10, 2025, the Promissory Note was repaid in full.

     

    Subsequent to the quarterly period covered by this Quarterly Report, on December 10, 2025, the Company consummated its Initial Public Offering of 25,000,000 Units, including the issuance of 2,500,000 Over-Allotment Option Units as a result of the underwriters’ partial exercise of their Over-Allotment Option, at $10.00 per Unit, generating gross proceeds of $250,000,000, and incurring offering costs of $14,449,003, consisting of $5,000,000 of cash underwriting fee, $8,750,000 of deferred underwriting fee, and $699,003 of other offering costs.

     

    A total of $250,000,000 ($10.00 per Unit) from the net proceeds of the sale of the Units in the Initial Public Offering (including the Over-Allotment Option Units) and certain proceeds from the sale of the Private Placement Units was placed in the Trust Account. The funds will only be invested in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a-7 under the Investment Company Act which invest only in direct U.S. government treasury obligations; the holding of these assets in this form is intended to be temporary and for the sole purpose of facilitating the intended Business Combination and may at any time be held as cash or cash items, including in demand deposit accounts at a bank. The Company will disclose in each quarterly and annual report filed with the SEC prior to its initial Business Combination whether the proceeds deposited in the Trust Account are invested in U.S. government treasury obligations or money market funds or a combination thereof or as cash or cash items, including in demand deposit accounts.

     

    17

     

    We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the trust account (excluding contingent, deferred underwriting commissions). We may withdraw interest for permitted withdrawals, including the payment of income or franchise (but not excise) taxes. To the extent that our equity or debt is used, in whole or in part, as consideration to complete our initial business combination, the remaining proceeds held in the trust account will be used as working capital to finance the operations of the target business or businesses, make other acquisitions and pursue our growth strategies.

     

    Prior to the completion of our initial Business Combination, we will have available to us funds that are held outside the Trust Account. We will use these funds to primarily identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, and structure, negotiate and complete a Business Combination.

     

    We do not believe we will need to raise additional funds following the Initial Public Offering in order to meet the expenditures required for operating our business prior to our initial Business Combination. However, if our estimates of the costs of identifying a target business, undertaking in-depth due diligence and negotiating an initial Business Combination are less than the actual amount necessary to do so, we may have insufficient funds available to operate our business prior to our initial Business Combination. In order to fund working capital deficiencies or finance transaction costs in connection with an intended initial Business Combination, our sponsor or an affiliate of our sponsor or certain of our officers and directors may, but are not obligated to, loan us funds as may be required. If we complete our initial Business Combination, we would repay such loaned amounts. In the event that our initial Business Combination does not close, we may use amounts held outside of the trust account to repay such loaned amounts but no proceeds from our Trust Account would be used for such repayment. Up to $1,500,000 of such loans may be convertible into private placement units of the post Business Combination entity at a price of $10.00 per unit at the option of the lender. Such units would be identical to the private placement units. The terms of such loans, if any, have not been determined and no written agreements exist with respect to such loans. Prior to the completion of our initial Business Combination, we do not expect to seek loans from parties other than our sponsor or an affiliate of our sponsor as we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access to funds in our Trust Account.

     

    These amounts are estimates and may differ materially from our actual expenses. In addition, we could use amounts held outside of the trust account to pay commitment fees for financing, fees to consultants to assist us with our search for a target business or as a down payment or to fund a “no-shop” provision (a provision designed to keep target businesses from “shopping” around for transactions with other companies or investors on terms more favorable to such target businesses) with respect to a particular proposed Business Combination, although we do not have any current intention to do so. If we entered into an agreement where we paid for the right to receive exclusivity from a target business, the amount that would be used as a down payment or to fund a “no-shop” provision would be determined based on the terms of the specific Business Combination and the amount of our available funds at the time. Our forfeiture of such funds (whether as a result of our breach or otherwise) could result in our not having sufficient funds to continue searching for, or conducting due diligence with respect to, prospective target businesses.

     

    Moreover, we may need to obtain additional financing to complete our initial Business Combination, either because the transaction requires more cash than is available from the proceeds held in our Trust Account or because we become obligated to redeem a significant number of our public shares upon completion of the Business Combination, in which case we may issue additional securities or incur debt in connection with such Business Combination. In addition, we intend to target businesses with enterprise values that are greater than we could acquire with the net proceeds of this offering and the sale of the private placement units, and, as a result, if the cash portion of the purchase price exceeds the amount available from the trust account, net of amounts needed to satisfy any redemptions by public shareholders, we may be required to seek additional financing to complete such proposed initial Business Combination. We may also obtain financing prior to the closing of our initial Business Combination to fund our working capital needs and transaction costs in connection with our search for and completion of our initial Business Combination. There is no limitation on our ability to raise funds through the issuance of equity or equity-linked securities or through loans, advances or other indebtedness in connection with our initial Business Combination, including pursuant to forward purchase agreements or backstop agreements we may enter into following consummation of this offering. Subject to compliance with applicable securities laws, we would only complete such financing simultaneously with the completion of our initial Business Combination. If we are unable to complete our initial Business Combination because we do not have sufficient funds available to us, we will be forced to liquidate the trust account. In addition, following our initial business combination, if cash on hand is insufficient, we may need to obtain additional financing in order to meet our obligations.

     

    18

     

    Contractual Obligations

     

    We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities. No unaudited quarterly operating data is included in this Quarterly Report as we have not conducted any operations to date.

     

    Critical Accounting Estimates

     

    The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. We have not identified any critical accounting estimates as of September 30, 2025.

     

    Recent Accounting Standards

     

    Refer to Note 2 – Significant Accounting Policies in Part I. Financial Statements.

     

    Item 3. Quantitative and Qualitative Disclosures About Market Risk

     

    As smaller reporting company, we are not required to make disclosures under this Item.

     

    Item 4. Controls and Procedures

     

    Evaluation of Disclosure Controls and Procedures

     

    Disclosure controls are procedures that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this report, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including our Certifying Officers, as appropriate, to allow timely decisions regarding required disclosure. Under the supervision and with the participation of our management, including our Certifying Officers, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based on the foregoing, our Certifying Officers concluded that our disclosure controls and procedures were effective as of September 30, 2025.

     

    We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

     

    Management’s Report on Internal Controls Over Financial Reporting

     

    This Quarterly Report does not include a report of management’s assessment regarding internal control over financial reporting or an attestation report of our independent registered public accounting firm due to a transition period established by rules of the SEC for newly public companies.

     

    Changes in Internal Control over Financial Reporting

     

    There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

     

    19

     

    PART II – OTHER INFORMATION

     

    Item 1. Legal Proceedings.

     

    To the knowledge of our management, there is no material litigation, arbitration or governmental proceeding currently pending against us, any of our officers or directors in their capacity as such or against any of our property.

     

    Item 1A. Risk Factors.

     

    Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our Final Prospectus, filed with the SEC on December 10, 2025. Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

     

    As of the date of this Quarterly Report on Form 10-Q, there have been no material changes to the risk factors disclosed in our Final Prospectus. We may disclose changes to such factors or disclose additional factors from time to time in our future filings with the SEC.

     

    Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

     

    On December 10, 2025, we consummated the Initial Public Offering of 25,000,000 Units, including the partial exercise by the underwriters of their over-allotment option in the amount of 2,500,000 Units, at $10.00 per Unit, generating gross proceeds of $250,000,000. The securities sold in the Initial Public Offering were registered under the Securities Act on registration statements on Form S-1 (No. 333-290165) and (No. 333-292014). The SEC declared the registration statements effective on December 8, 2025.

     

    Simultaneously with the closing of the Initial Public Offering, we consummated the sale of 685,000 Private Units at a price of $10.00 per Private Unit, in a private placement to our Sponsor and the Underwriters, generating gross proceeds of $6,850,000. The Private Units are identical to the Units sold in the Initial Public Offering, except as otherwise disclosed in the registration statements. No underwriting discounts or commissions were paid with respect to such sale. The issuance of the Private Units was made pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act of 1933, as amended.

     

    Transaction costs amounted to $14,449,003, consisting of $5,000,000 of cash underwriting fee, $8,750,000 of deferred underwriting fee, and $699,003 of other offering costs.

     

    Following the closing of the Initial Public Offering, of the net proceeds received from the consummation of the Initial Public Offering and simultaneous Private Placement, $250,000,000 ($10.00 per unit sold in the Initial Public Offering) was placed in the Trust Account

     

    There has been no material change in the planned use of proceeds from the Initial Public Offering and Private Placement as is described in the Company’s final prospectus for its Initial Public Offering.

     

    Purchases of Equity Securities by the Issuer and Affiliated Purchasers during the Quarter Ended September 30, 2025

     

    None.

     

    Item 3. Defaults Upon Senior Securities.

     

    None.

     

    Item 4. Mine Safety Disclosures.

     

    Not applicable.

     

    Item 5. Other Information.

     

    None.

     

    20

     

    Item 6. Exhibits.

     

    The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.

     

    Exhibit No.   Description
    31.1*   Certification of the Principal Executive Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    31.2*   Certification of the Principal Financial Officer Pursuant to Securities Exchange Act Rules 13a-14(a) and 15(d)-14(a), as adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
    32.1**   Certification of the Principal Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    32.2**   Certification of the Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    101.INS*   XBRL Instance Document
    101.CAL*   XBRL Taxonomy Extension Calculation Linkbase Document
    101.SCH*   XBRL Taxonomy Extension Schema Document
    101.DEF*   XBRL Taxonomy Extension Definition Linkbase Document
    101.LAB*   XBRL Taxonomy Extension Labels Linkbase Document
    101.PRE*   XBRL Taxonomy Extension Presentation Linkbase Document
    104   Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

     

     

    * Filed herewith
    ** Furnished herewith

     

    21

     

    SIGNATURES

     

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

     

      Daedalus Special Acquisition Corp.
         
    January 20, 2026 By: /s/ Orkun Kilic
        Name:   Orkun Kilic
        Title: Co-Chief Executive Officer and Director

     

    January 20, 2026 By: /s/ Husnu Akin Babayigit
        Name:   Husnu Akin Babayigit
        Title: Co-Chief Executive Officer and Director 

     

    January 20, 2026 By: /s/ Nimika Karadia
        Name:   Nimika Karadia
        Title: Chief Financial Officer

     

     

    22

     

     

    Get the next $DSAC alert in real time by email

    Crush Q1 2026 with the Best AI Superconnector

    Stay ahead of the competition with Standout.work - your AI-powered talent-to-startup matching platform.

    AI-Powered Inbox
    Context-aware email replies
    Strategic Decision Support
    Get Started with Standout.work

    Recent Analyst Ratings for
    $DSAC

    DatePrice TargetRatingAnalyst
    7/6/2022Outperform
    Northland Capital
    More analyst ratings

    $DSAC
    Press Releases

    Fastest customizable press release news feed in the world

    View All

    Daedalus Special Acquisition Corp. Announces the Separate Trading of its Class A Ordinary Shares and Warrants Commencing January 29, 2026

    London, United Kingdom, Jan. 27, 2026 (GLOBE NEWSWIRE) -- Daedalus Special Acquisition Corp. (NASDAQ:DSACU) (the "Company") today announced that, commencing January 29, 2026, holders of the units sold in the Company's initial public offering may elect to separately trade the Company's Class A ordinary shares and warrants included in the units. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. The Class A ordinary shares and warrants that are separated will trade on The Nasdaq Global Market under the symbols "DSAC" and "DSACW," respectively. Those units not separated will continue to trade on The Nasdaq Global Market under the symbol "D

    1/27/26 4:00:00 PM ET
    $DSAC
    Blank Checks
    Finance

    Daedalus Special Acquisition Corp. Announces Closing of Upsized $250 Million Initial Public Offering

    London, United Kingdom, Dec. 10, 2025 (GLOBE NEWSWIRE) -- Daedalus Special Acquisition Corp. (the "Company"), a newly organized special purpose acquisition company formed as a Cayman Islands exempted company and led by Co-Chief Executive Officers Husnu Akin Babayigit and Orkun Kilic, today announced the closing of its upsized pricing of its initial public offering of 25,000,000 units, which includes 2,500,000 units issued pursuant to the partial exercise by the underwriters of their over-allotment option, at an offering price of $10.00 per unit, resulting in gross proceeds of $250,000,000. The units began trading on the Global Market tier of the Nasdaq Stock Market ("Nasdaq") under the ti

    12/10/25 4:30:00 PM ET
    $DSAC
    Blank Checks
    Finance

    Daedalus Special Acquisition Corp. Announces the Upsized Pricing of $225 Million Initial Public Offering

    London, United Kingdom, Dec. 08, 2025 (GLOBE NEWSWIRE) -- Daedalus Special Acquisition Corp. (the "Company"), a newly organized special purpose acquisition company formed as a Cayman Islands exempted company and led by Co-Chief Executive Officers Husnu Akin Babayigit and Orkun Kilic, today announced the upsized pricing of its initial public offering of 22,500,000 units at an offering price of $10.00 per unit, with each unit consisting of one Class A ordinary share and one-fourth of one redeemable warrant. Each whole warrant will entitle the holder thereof to purchase one Class A ordinary share at $11.50 per share. The units are expected to trade on the Global Market tier of the Nasdaq Sto

    12/8/25 10:26:57 PM ET
    $DSAC
    Blank Checks
    Finance

    $DSAC
    SEC Filings

    View All

    SEC Form SCHEDULE 13G filed by Daedalus Special Acquisition Corp.

    SCHEDULE 13G - Daedalus Special Acquisition Corp. (0002082149) (Subject)

    2/12/26 9:10:35 AM ET
    $DSAC
    Blank Checks
    Finance

    SEC Form 8-K filed by Duddell Street Acquisition Corp.

    8-K - Daedalus Special Acquisition Corp. (0002082149) (Filer)

    1/27/26 4:15:52 PM ET
    $DSAC
    Blank Checks
    Finance

    SEC Form 10-Q filed by Duddell Street Acquisition Corp.

    10-Q - Daedalus Special Acquisition Corp. (0002082149) (Filer)

    1/20/26 5:00:37 PM ET
    $DSAC
    Blank Checks
    Finance

    $DSAC
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    View All

    Northland Capital initiated coverage on Duddell Street Acquisition Corp

    Northland Capital initiated coverage of Duddell Street Acquisition Corp with a rating of Outperform

    7/6/22 9:24:39 AM ET
    $DSAC
    Blank Checks
    Finance

    $DSAC
    Insider Purchases

    Insider purchases reveal critical bullish sentiment about the company from key stakeholders. See them live in this feed.

    View All

    Large owner Daedalus Special Acquisition Llc bought 435,000 units of Class A Ordinary Shares (SEC Form 4)

    4 - Daedalus Special Acquisition Corp. (0002082149) (Issuer)

    12/10/25 5:23:06 PM ET
    $DSAC
    Blank Checks
    Finance

    Co-Chief Executive Officer Kilic Orkun bought 435,000 units of Class A Ordinary Shares (SEC Form 4)

    4 - Daedalus Special Acquisition Corp. (0002082149) (Issuer)

    12/10/25 5:21:57 PM ET
    $DSAC
    Blank Checks
    Finance

    Co-Chief Executive Officer Babayigit Husnu Akin bought 435,000 units of Class A Ordinary Shares (SEC Form 4)

    4 - Daedalus Special Acquisition Corp. (0002082149) (Issuer)

    12/10/25 5:20:58 PM ET
    $DSAC
    Blank Checks
    Finance

    $DSAC
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    View All

    SEC Form 4 filed by Co-Chief Executive Officer Babayigit Husnu Akin

    4 - Daedalus Special Acquisition Corp. (0002082149) (Issuer)

    1/27/26 5:32:06 PM ET
    $DSAC
    Blank Checks
    Finance

    SEC Form 4 filed by Large owner Daedalus Special Acquisition Llc

    4 - Daedalus Special Acquisition Corp. (0002082149) (Issuer)

    1/27/26 5:20:14 PM ET
    $DSAC
    Blank Checks
    Finance

    SEC Form 4 filed by Co-Chief Executive Officer Kilic Orkun

    4 - Daedalus Special Acquisition Corp. (0002082149) (Issuer)

    1/27/26 5:17:52 PM ET
    $DSAC
    Blank Checks
    Finance

    $DSAC
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    View All

    SEC Form SC 13D/A filed by Duddell Street Acquisition Corp. (Amendment)

    SC 13D/A - FiscalNote Holdings, Inc. (0001823466) (Subject)

    10/24/22 4:37:11 PM ET
    $DSAC
    Blank Checks
    Finance

    SEC Form SC 13G filed by Duddell Street Acquisition Corp.

    SC 13G - FiscalNote Holdings, Inc. (0001823466) (Subject)

    8/12/22 5:25:02 PM ET
    $DSAC
    Blank Checks
    Finance

    SEC Form SC 13D filed by Duddell Street Acquisition Corp.

    SC 13D - FiscalNote Holdings, Inc. (0001823466) (Subject)

    8/8/22 5:26:04 PM ET
    $DSAC
    Blank Checks
    Finance

    $DSAC
    Leadership Updates

    Live Leadership Updates

    View All

    FiscalNote Appoints Josh Resnik President and Chief Operating Officer

    WASHINGTON, Feb. 24, 2022 /PRNewswire/ -- FiscalNote, a leading AI-driven enterprise SaaS company that delivers legal and regulatory data and insights, today announces the appointment of current Senior Vice President, General Counsel & Chief Content Officer Josh Resnik to the newly created position of President & Chief Operating Officer. Reporting to CEO & Co-founder Tim Hwang, in his new role Resnik will oversee day-to-day corporate operations, including the Commercial, Business Development, Marketing, Content, and People functions, providing coordinated oversight over Fiscal

    2/24/22 7:30:00 AM ET
    $DSAC
    Blank Checks
    Finance