CHEC 10-K & 10-Q changes, risk factors and insider trading

We have neither engaged in in any operations nor generated any revenues to date. Our only activities from June 4, 2024 (inception) through MarchJune 31,30, 2026 were organizational activities, those necessary to prepare for the Initial Public Offering, described below, and identifying a target company for an initial Business Combination. We do not expect to generate any operating revenues until after the completion of our initial Business Combination. We generate non-operating income in the form of interest income on cash held in the Trust Account. We incur 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 three months ended endedJune March 31,30, 2026, we had a net income of $884,748,$774,007, which consists of interest earned on cash held in the Trust Account of $1,061,505,$1,068,377, partially partially offset by formation, general, and administrative costs of $176,757.$294,370.

For the three months ended endedJune March 31,30, 2025, we had a net loss of $19,632,$23,625, which consists of formation, general, and administrative costs.

For the threesix months ended MarchJune 31,30, 2026, net cash used in operating activities was $103,162.$255,283. Net income of $884,748$1,658,755 was impacted by interest earned on cash held in Trust Account of $1,061,505.$2,129,882. Changes in operating assets and liabilities provided $73,595$215,844 of cash for operating activities.

As of MarchJune 31,30, 2026, we had cash held in the Trust Account of $128,931,590$129,999,967 (including approximately $1,061,505$3,499,967 of interest income) consisting of cash held in a saving account. We may withdraw interest from the Trust Account to pay taxes, if any. We intend to use substantially all of the funds held in the Trust Account, including any amounts representing interest earned on the Trust Account (less income taxes payable), to complete our initial Business Combination. To the extent that our share capital 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.

As of MarchJune 31,30, 2026, we had cash of $593,663,$441,542, working capital of $453,294,$158,924, accumulated deficit of $4,607,169,$4,901,539, shareholders’ deficit of $4,606,706.$4,901,076. For the threesix months ended MarchJune 31,30, 2026, net cash used in operating activities was $103,162.$255,283. We intend to use the funds held outside the Trust Account primarily to 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 an initial Business Combination.

We have no obligations, assets assets or liabilities, which would be considered off-balance sheet arrangements as of MarchJune 31,30, 2026. We do not participate in transactions that that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial non-financial assets.

The preparation of unaudited condensed 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 unaudited condensed financial statements, and income and expenses during the periods reported. Actual results could materially differ from those estimates. As of MarchJune 31,30, 2026, we did not have any critical accounting estimates to be disclosed.