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

Factors that could cause our actual results to differ materially from those in this Quarterly Report include the risk factors described in our Annual Report on Form 10-K for the period from April 29, 2025 (inception) through December 31, 2025, filed with the SEC.SEC, As ofand the daterisk of this Quarterly Report, except for the risks set forth belowfactors related to our entry into the Business Combination Agreement with Carvix,Carvix set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2026. As of the date of this Quarterly Report, there have been no material changes to the risk factors disclosed in oursuch Annual Report on Form 10-K.reports.

As of MarchJune 31,30, 2026, we held no cash outside the Trust Account, had a working capital deficit, and isare dependent on Sponsor funding and/or additional financing to fund operations and transaction costs. The Sponsor pays all formation and operating costs on the Company’s behalf. Amounts paid by the Sponsor on the Company’s behalf are recorded as a reduction of the Due from related party balance, which represents Private Placement proceeds received by the Sponsor on the Company’s behalf that were designated for use outside the Trust Account, net of formation and operating costs paid by the Sponsor and other amounts owed to the Sponsor. As of MarchJune 31,30, 2026, the due from related party balance was $210,670, $72,476, compared to $210,670 as of March 31, 2026 and $448,082 as of December 31, 2025.

As of MarchJune 31,30, 2026, we had investments held in in the Trust Account of $174,928,579.$176,476,946. We intend to use substantially all of the funds held in the Trust Account, including any amounts representing representing dividends or interest earned on the Trust Account (less any income taxes payable), to complete our Business Combination.

For the threesix months ended MarchJune 31,30, 2026, net cash used in operating activities was $237,412.$375,606. Our net lossincome of $263,493$1,090,272 was adjusted to reconcile to operating cash flows by a non-cash add-back of $1,604,397 $1,720,874 representing the loss on the change in fair value of the warrant liability and reduced by $1,524,741$3,073,108 of dividends earned on investments held in the Trust Account that were reinvested in the Trust Account and did not represent cash inflows; the remaining operating cash usage primarily reflected a $62,900$41,933 increase in prepaid expenses and $9,325a increase$71,711 decrease in accounts payable and accrued expenses. Net cash provided by financing activities of $237,412$375,606 represented advances from the Sponsor, net, used to fund operating costs paid by the Sponsor on the Company’s behalf.

In connection with our assessment of going concern considerations in accordance with ASC 205-40, “Presentation of Financial Statements — Going Concern,” management has determined that the mandatory liquidation date and subsequent dissolution, should a Business Combination not occur, raise substantial doubt about our ability to continue as a going concernconcern. throughBecause November 10, 2026 (or February 10, 2027 in the event the Combination Period is automatically extended). The Companywe entered into the Business Combination Agreement on March 30, 2026, which automatically extended the Combination Period towas automatically extended by three months from November 10, 2026, and we must complete a Business Combination by February 10, 2027. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after the Combination Period.

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

We account for warrants as either equity-classified or liability-classified instruments based on an assessment of the warrant’s specific terms and applicable authoritative guidance in ASC 480 and ASC 815. The Public Warrants are accounted for as liabilities in accordance with ASC 815-40, with changes in fair value presented within change in fair value of warrant liability in our statementstatements of operations. The fair value of the Public Warrants is estimated using a 500-step Cox-Ross-Rubinstein binomial lattice model. See Note 5 to the condensed financial statements for additional information.