CAEPHIGH SIGNALFINANCIAL10-Q

CAEP experienced a dramatic decline in net income and entered into a definitive business combination agreement in November 2025, signaling an imminent transformation of the company.

The company has transitioned from profitable operations to significantly reduced earnings while simultaneously announcing a major business combination expected to close before the end of the combination period. As a pre-revenue entity that had not commenced operations as of September 30, 2025, this represents a critical inflection point that will fundamentally alter the company's business model and financial profile.

Comparing 2025-11-14 vs 2025-08-14View on EDGAR →
FINANCIAL ANALYSIS

CAEP's financial performance deteriorated substantially, with net income falling dramatically from $2.8M to $162K. The company's balance sheet shows a deepening stockholders' equity deficit that expanded to -$8.3M from -$6.0M, while current assets grew modestly to $234K. The overall financial picture reflects a pre-operational company burning through capital while positioning for a transformative business combination.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-94.1%
$2.8M→$162K

Net income declined 94.1% — review whether driven by operations, interest costs, or non-recurring items.

Stockholders Equity
Balance Sheet
-39%
-$6.0M→-$8.3M

Equity declined sharply — large losses, buybacks, or write-downs reducing book value significantly.

Current Assets
Balance Sheet
+37.5%
$170K→$234K

Current assets grew 37.5% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2025-11-14
PRIOR — 2025-08-14
ADDED
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) For the Three Months Ended September 30, For the Nine Months Ended September 30, 2025 2024 2025 2024 Net income (loss) $ 2,758,085 $ ( 40,040 ) $ 2,668,175 $ ( 42,920 ) Other comprehensive income: Change in unrealized appreciation of available-for-sale debt securities 186,003 195,123 Total other comprehensive income 186,003 195,123 Comprehensive income (loss) $ 2,944,088 $ ( 40,040 ) $ 2,863,298 $ ( 42,920 ) The accompanying notes are an integral part of these unaudited condensed financial statements.
As of September 30, 2025, the Company had not commenced operations.
As further described in Note 10, the Company entered into a Business Combination Agreement, dated as of November 7, 2025, by and among the Company, Pubco (as defined in Note 10), AIR (as defined in Note 10) and the other parties thereto, and the transactions contemplated thereby will be a Business Combination that is expected to be consummated prior to the end of the Combination Period.
For more information regarding such proposed Business Combination, refer to the Company s Current Report on Form 8-K filed with the SEC on November 7, 2025, and the other filings the Company and Pubco may make from time to time with the SEC.
Liquidity and Capital Resources As of September 30, 2025 and December 31, 2024, the Company had $ 25,000 and $0 , respectively, of cash in its operating account.
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REMOVED
CONDENSED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) For the Three Months Ended June 30, For the Six Months Ended June 30, 2025 2024 2025 2024 Net loss $ ( 63,451 ) $ ( 2,880 ) $ ( 89,910 ) $ ( 2,880 ) Other comprehensive income: Change in unrealized appreciation of available-for-sale debt securities 9,120 9,120 Total other comprehensive income 9,120 9,120 Comprehensive loss $ ( 54,331 ) $ ( 2,880 ) $ ( 80,790 ) $ ( 2,880 ) The accompanying notes are an integral part of these unaudited condensed financial statements.
As of June 30, 2025, the Company had not commenced operations.
Liquidity and Capital Resources As of June 30, 2025 and December 31, 2024, the Company had approximately $ 405,000 and $0 , respectively, of cash in its operating account.
As of June 30, 2025 and December 31, 2024, the Company had working capital of approximately $ 357,000 and a working capital deficit of approximately $ 164,000 , respectively.
In addition, in order to finance transaction costs in connection with the Business Combination, the Sponsor agreed to loan the Company up to $ 1,750,000 to fund the Company s expenses relating to investigating and selecting a target business and other working capital requirements after the Initial Public Offering and prior to the Business Combination (the Sponsor Loan ), of which no amount has been drawn by the Company as of both June 30, 2025 and December 31, 2024.
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