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JAWS MUSTANG ACQUISITION CORPORATION FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2025

Press release·05/17/2025 10:33:24

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Jaws Mustang Acquisition Corporation, a Cayman Islands company, filed its quarterly report for the period ended March 31, 2025. The company reported a net loss of $1.4 million for the three months ended March 31, 2025, compared to a net loss of $1.1 million for the same period in 2024. As of March 31, 2025, the company had cash and cash equivalents of $14.4 million and total assets of $15.4 million. The company’s condensed balance sheet as of March 31, 2025, shows total liabilities of $1.4 million and total shareholders’ deficit of $12.1 million. The company’s management’s discussion and analysis of financial condition and results of operations notes that the company has not yet generated any revenue and has not yet completed its initial business combination.

Overview

Jaws Mustang Acquisition Corporation is a blank check company formed in the Cayman Islands on October 19, 2020. The company’s purpose is to merge, amalgamate, or acquire one or more businesses through a Business Combination. The company raised $1.035 billion in its initial public offering (IPO) on February 4, 2021 and an additional $22.7 million from the sale of private placement warrants.

Results of Operations

Jaws Mustang Acquisition Corporation has not engaged in any operations or generated any revenue to date. Its activities have been limited to organizational tasks, preparing for the IPO, and identifying a target company for a Business Combination. The company incurs expenses related to being a public company, as well as due diligence costs for potential acquisitions.

For the three months ended March 31, 2025, the company had a net loss of $507,977, which consisted of a $372,250 change in fair value of warrant liabilities and $142,551 in general and administrative expenses, partially offset by $6,824 in interest earned on the Trust Account.

For the three months ended March 31, 2024, the company had a net loss of $7,159,904, which consisted of $633,880 in general and administrative expenses and a $6,700,500 change in fair value of warrant liabilities, partially offset by $174,476 in interest earned on the Trust Account.

Liquidity and Capital Resources

As of March 31, 2025, the company had $1,042,177 held in the Trust Account and $153,305 in cash. The company intends to use the funds in the Trust Account to complete a Business Combination.

To fund working capital or transaction costs, the company’s sponsor, officers, directors, or their affiliates may provide loans. These loans may be convertible into warrants at $2.00 per warrant. As of March 31, 2025, the company had $500,000 outstanding under the August 2023 Note, $500,000 outstanding under the March 2024 Note, and $400,000 outstanding under the October 2024 Note.

The company faces substantial doubt about its ability to continue as a going concern if a Business Combination is not consummated by December 4, 2026. Management intends to complete a Business Combination prior to the mandatory liquidation date.

Contractual Obligations

The company has an agreement to pay $10,000 per month to an affiliate of one of its executive officers for office space, utilities, and administrative services. The company is also obligated to pay a deferred underwriting fee of $36,225,000 to the IPO underwriters, contingent on completing a Business Combination.

Critical Accounting Policies

The company’s critical accounting policies include:

Accounting for ordinary shares subject to possible redemption
Calculating net loss per ordinary share
Recognizing derivative warrant liabilities

The company also recently adopted ASU 2023-07 related to segment reporting disclosures.