CAPNHIGH SIGNALOPERATIONAL10-K

CAPN has entered into a definitive merger agreement with Mango Financial Group Limited, marking significant progress toward completing their initial business combination before the extended March 2027 deadline.

This SPAC has moved from actively seeking targets to executing a specific merger transaction, representing a major milestone that should reduce execution risk. The extended deadline to March 2027 provides more runway than the previous September 2025 deadline, though this also creates potential leverage issues with the target company during negotiations.

Comparing 2026-03-24 vs 2025-03-26View on EDGAR →
FINANCIAL ANALYSIS

The company shows deteriorating operational performance with operating losses widening 223% to $908K and current liabilities spiking over 1,000% to $1.3M, likely reflecting transaction-related costs and professional fees. Despite higher net income of $1.6M (up 244%), this appears driven by non-operating items while core operations burn more cash, and stockholders' equity deepened into negative territory at -$3.3M. The financial picture suggests mounting pressure to complete the merger transaction as operational losses accelerate and liquidity tightens.

FINANCIAL STATEMENT CHANGES
Current Liabilities
Balance Sheet
+1170.9%
$103K$1.3M

Current liabilities surged 1170.9% — significant near-term obligations; verify ability to meet short-term debt.

Net Income
P&L
+244.4%
$475K$1.6M

Net income grew 244.4% — bottom-line growth signals improving overall business health.

Operating Income
P&L
-222.9%
-$281K-$908K

Operating income deteriorated sharply — investigate whether driven by one-time charges or structural cost issues.

Stockholders Equity
Balance Sheet
-111.2%
-$1.5M-$3.3M

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

Current Assets
Balance Sheet
-74.4%
$595K$152K

Current assets declined 74.4% — monitor working capital adequacy and short-term liquidity.

Total Liabilities
Balance Sheet
+54.8%
$2.2M$3.4M

Liabilities grew 54.8% — significant increase in debt or obligations, assess impact on financial flexibility.

LANGUAGE CHANGES
NEW — 2026-03-24
PRIOR — 2025-03-26
ADDED
As of March 24, 2026, 5,288,092 ordinary shares, par value $ 0.0001 per share, were issued and outstanding.
The requirement that we complete our initial business combination by March 23, 2027 (assuming our board extends the time to complete an initial business combination) may give potential target businesses leverage over us in negotiating an initial business combination and may decrease our ability to conduct due diligence on potential initial business combination targets as we approach our dissolution deadline.
If we complete our initial business combination with Mango Financial Group Limited, as described below, we will also be subject to the risks facing such company, as described in the Form F-4 (as defined below).
On July 11, 2025, the Company entered into an Agreement and Plan of Merger (the Merger Agreement ), by and among the Company, Mango Financial Group Limited, a Cayman Islands exempted company ( Mango Financial Group Limited ), North Water Investment Group Holdings Limited ( North Water ), the parent company of Mango Financial Limited ( Mango Financial ), and Mango Temp Limited, a Cayman Islands exempted company and a wholly-owned subsidiary of the Company ( Merger Sub ).
Pursuant to the Merger Agreement, Merger Sub will merge with and into the Company, the separate corporate existence of Merger Sub will cease, and the Company will be the surviving corporation and will continue as a wholly-owned subsidiary of Mango Financial Group Limited (the Merger ).
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REMOVED
Accordingly, there was no market value for the registrant s ordinary shares on such date.
As of March 26, 2025, 7,328,341 ordinary shares, par value $ 0.0001 per share, were issued and outstanding.
The requirement that we complete our initial business combination by September 23, 2025 (or June 23, 2026, if we extend the time to complete an initial business combination) may give potential target businesses leverage over us in negotiating an initial business combination and may decrease our ability to conduct due diligence on potential initial business combination targets as we approach our dissolution deadline.
If Public Shareholders tender more shares than we have offered to purchase, we will withdraw the tender offer and not complete the initial business combination.
Our amended and restated memorandum and articles of association provides that we will only redeem our Public Shares so long as (after such redemption) our net tangible assets will be at least $5,000,001 either immediately prior to or upon consummation of our initial business combination and after payment of underwriters fees and commissions (so that we are not subject to the SEC s penny stock rules) or any greater net tangible asset or cash requirement which may be contained in the agreement relating to our initial business combination.
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