ADDED
Interim Financial Statements 1 Condensed Consolidated Balance Sheets (Unaudited) 1 Condensed Consolidated Statements of Operations (Unaudited) 2 Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficit) (Unaudited) 3 Condensed Consolidated Statement of Cash Flows (Unaudited) 4 Notes to Condensed Consolidated Financial Statements (Unaudited) 5 Item 2.
The Company owns all of the equity and has unilateral control over Rorschach Cayman LLC ( Rorschach Cayman ) and as such consolidates the entity under ASC 810, Consolidations .
( Sonnet ), the Company, Rorschach I LLC ("Rorschach"), Sonnet Merger Sub Inc., and Rorschach Merger Sub LLC, entered into a Business Combination Agreement (as subsequently amended, the BCA ) pursuant to which, subject to the terms and conditions contained in the BCA, (i) Rorschach Merger Sub LLC would merge with and into Rorschach (the "Rorschach Merger") with Rorschach surviving the Rorschach Merger as a direct wholly owned subsidiary of the Company and (ii) immediately following the Rorschach Merger, Sonnet Merger Sub Inc.
would merge with and into Sonnet (the "Sonnet Merger"), with Sonnet surviving the Sonnet Merger as a direct wholly owned subsidiary of the Company.
The combination of Rorschach and HSI was accounted for as a reverse recapitalization (the Reverse Recapitalization ), with Rorschach surviving as the accounting acquirer.
REMOVED
Interim Financial Statements 1 Condensed Consolidated Balance Sheet (Unaudited) 1 Condensed Consolidated Statement of Operations (Unaudited) 2 Condensed Consolidated Statement of Changes in Stockholder s Deficit (Unaudited) 3 Condensed Consolidated Statement of Cash Flows (Unaudited) 4 Notes to Condensed Consolidated Financial Statements (Unaudited) 5 Item 2.
CONDENSED CONSOLIDATED BALANCE SHEET September 30, 2025 Liabilities and Stockholder s Deficit Accounts payable and accrued expenses $ 1,138,335 Due to related parties 74,586 Total Current Liabilities and Total Liabilities 1,212,921 Commitments and Contingencies Stockholder s Deficit: Common stock, $ 0.01 par value; 1,000 shares authorized; 100 shares issued and outstanding Accumulated deficit ( 1,212,921 ) Total Stockholder s Deficit ( 1,212,921 ) Total Liabilities and Stockholder s Deficit $ The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS For the period from July 2, 2025 (inception) through September 30, 2025 Formation and operating costs $ ( 1,212,921 ) Net loss $ ( 1,212,921 ) Basic and diluted weighted average shares outstanding 92 Basic and diluted net loss per share $ ( 13,183.92 ) The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDER S DEFICIT For the period from July 2, 2025 (inception) through September 30, 2025 Additional Total Paid-In Accumulated Stockholder s Shares Amount Capital Deficit Deficit Balance as of July 2, 2025 (inception) $ $ $ $ Issuance of Common Stock 100 Net loss ( 1,212,921 ) ( 1,212,921 ) Balance as of September 30, 2025 100 $ $ $ ( 1,212,921 ) $ ( 1,212,921 ) The accompanying notes are an integral part of these condensed consolidated financial statements.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the period from July 2, 2025 (inception) through September 30, 2025 Cash flows from operating activities: Net loss $ ( 1,212,921 ) Changes in operating assets and liabilities: Accounts payable and accrued expenses 1,138,335 Due to related party 74,586 Net cash flows from operating activities Net change in cash Cash, July 2, 2025 (inception) Cash, September 30, 2025 $ The accompanying notes are an integral part of these condensed consolidated financial statements.