WTGMEDIUM SIGNALFINANCIAL10-Q

WTG completed its IPO process with partial over-allotment exercise and experienced significant net income improvement driven by trust account investment gains, though operating losses widened.

The company successfully raised capital through its SPAC IPO with underwriters exercising 595,000 of their over-allotment option before forfeiting the remaining 155,000 units in July 2025. The dramatic improvement in net income primarily reflects investment gains from the trust account rather than operational improvements, as operating losses actually increased by 45%.

Comparing 2025-11-12 vs 2025-07-18View on EDGAR →
FINANCIAL ANALYSIS

Net income surged 1,485% from $38K to $605K, driven entirely by $786K in trust account investment income that more than offset widening operating losses of $231K (versus $160K previously). Stockholders' equity declined 20% from $8.8M to $7.0M, reflecting the forfeiture of founder shares and typical SPAC structural adjustments. The overall picture shows a newly public SPAC with adequate trust account funds ($56.9M) generating investment income, but with increasing operating expenses as it searches for acquisition targets.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
+1484.7%
$38K$605K

Net income grew 1484.7% — bottom-line growth signals improving overall business health.

Operating Income
P&L
-44.6%
-$160K-$231K

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

Stockholders Equity
Balance Sheet
-20.3%
$8.8M$7.0M

Equity decreased 20.3% — buybacks or losses reducing book value, monitor solvency ratios.

LANGUAGE CHANGES
NEW — 2025-11-12
PRIOR — 2025-07-18
ADDED
On May 30, 2025, the underwriters partially exercised their over-allotment option to purchase an additional 595,000 units at a purchase price of $10.00 per Unit.
On July 13, 2025, the underwriters forfeited their option to purchase an additional 155,000 units and as a result, 38,750 Founder Shares were forfeited (see Note 5).
On July 13, 2025, the remaining unexercised over-allotment option to purchase up to 155,000 Units at $ 10.00 per Unit were expired and 38,750 Founder Shares were forfeited along with the expiry of the over-allotment option (see Note 5(i)).
7 Going Concern Consideration As of September 30, 2025, the Company had $ 1,439,631 in cash and working capital of $ 1,377,744 .
As of September 30, 2025, the estimated fair value of marketable securities held in Trust Account was $ 56,875,827 .
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REMOVED
For the period from April 29, 2024 (inception) through June 30, 2024 Ordinary Shares Subscription Additional Paid-in Accumulated Total Shareholder s Shares Amount Receivable Capital Deficit Equity Balance as of April 29, 2024 (inception) - $ - $ - $ - $ - $ - Issuance of ordinary shares to Sponsor 10,000 1 ( 1 ) - - - Balance as of June 30, 2024 (Unaudited) 10,000 $ 1 $ ( 1 ) $ - $ - $ - The accompanying notes are an integral part of these unaudited condensed financial statements.
7 Going Concern Consideration As of June 30, 2025, the Company had $ 1,450,158 in cash and working capital of $ 1,393,432 .
As of June 30, 2025, the estimated fair value of marketable securities held in Trust Account was $ 56,293,697 .
For the six and three months ended June 30, 2025, the Company recorded income earned on investments held in Trust Account of $ 203,822 .
For the six and three months ended June 30, 2025, the Company recorded accretion of ordinary share subject to redemption value of $ 517,668 .
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