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

We have neither engaged in any operations nor generated any revenues to date. Our only activities from January 7, 2025 (inception) through MarchJune 31,30, 2026 were organizational activities, those necessary to prepare for the initial public offering, described below, and, after our initial public offering, identifying a target company for a business combination. We do not expect to generate any operating revenues until after the completion of our business combination. Subsequent to the initial public offering, we generate non-operating income in the form of interest income on marketable securities 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 MarchJune 31,30, 2026, we had a net income $1,917,622, $1,725,848, which consisted of earnings on investments held in Trust Account of of $2,041,625$2,101,551 and interest from the operating bank account of $8,109 $7,442 offset by general and administrative costsexpenses of $132,112.$383,145.

For the period from January 7, 2025 (inception) through MarchJune 31, 30, 2025, we had a net lossincome $42,822,$556,735, which consisted of earnings on investments held in Trust Account of $868,152 and interest income from bank operating account of $5,084 offset by compensation expense of $132,300, bank service fees of $5,000, and general and administrative administrative costs.expenses of $179,201.

For the threesix months ended MarchJune 31,30, 2026, net cash used in operating activities was $134,643.$200,517. Net income of $1,917,622$3,643,470 was affected by earnings earnings on investments held in Trust Account of $2,041,625.$4,143,176. Changes in operating assets and liabilities usedprovided $10,640$299,189 of cash from operating activities.

For the period from January 7, 2025 (inception) through MarchJune 31,30, 2025, net cash used in operating activities was $0.$151,248. Net lossincome of $556,735 $42,822 was affected by payment of expense through promissory note – related party of $15,420.$36,220, earnings on investments held in Trust Account of $868,152 and compensation expense of $132,300. Changes in operating assets and liabilities used $27,402$8,351 of cash from operating activities.

As of MarchJune 31,30, 2026, we had cash and investments held in the trust account of $237,675,190 $239,776,741 consisting primarily of money market funds.funds and U.S. Treasury Bills. We may withdraw earnings 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 earnings on the Trust Account (less taxes payable, if any), to complete our business combination. To the extent that our share capital or debt is used, in whole or in part, as consideration to complete our 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 $962,299.$821,425. 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 a business combination.

From time to time, our officers and directors may pay expenses on behalf of the Company which may be in the form of non-interest bearing loans that are due on demand. At MarchJune 31,30, 2026 and December 31, 2025, we owed $29,694$50,993 and $29,694, respectively, to affiliates of the Company. We report this amount as due to affiliates on the Company’s condensed balance sheets.

WeIn doconnection with the Company’s assessment of going concern considerations in accordance with ASC Topic 205-40, “Presentation of Financial Statements-Going Concern,” the Company does not believe weit will need to raise additional funds in order to meet the expenditures required for operating ourits business. However, if our the estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a businessBusiness combinationCombination are are less than the actual amount necessary to do so, wethe Company may have insufficient funds available to operate ourits business prior to ourthe initial businessBusiness Combination. The Company has the Completion Window combination.(until Moreover,May we27, may need to obtain additional financing either2027) to complete ourthe businessinitial combinationBusiness orCombination. Management has becausedetermined wethat becomethe obligatedmandatory liquidation and subsequent dissolution, should the Company be unable to complete a Business Combination by May 27, 2027 raises substantial doubt about the Company’s ability to continue as a going concern. Management plans to redeemaddress this uncertainty through search for and completion of a Business Combination. There are no assurances that the Company’s plans to consummate a significantBusiness numberCombination will be successful by May 27, 2027. The financial statements do not include any adjustments that might result from the outcome of ourthis public shares upon consummation of our business combination, in which case we may issue additional securities or incur debt in connection with such business combination.uncertainty.

We have no obligations, assets or liabilities, which 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 do not have any long-term debt,debt or capital lease obligations.

The preparation of unaudited condensed financial statements and related disclosures in conformity with accounting principles generally accepted accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and 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. Making estimates requires management to exercise significant judgement. It is at least reasonably reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited unaudited condensed financial statements, which management considered in formulating its estimate, could change in the near term due to one or or more future confirming events. Accordingly, the actual results could materially differ from those estimates. As of MarchJune 31,30, 2026, we we did not have any critical accounting estimates to be disclosed other than discussed below.