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Item 7. Management’s Discussion and Analysis

2026-03-12 compared with 2025-03-28 · 197 added, 119 removed, 25 unchanged (93% of the section changed)

Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of the Company’s

financial condition and results of operations should be read in conjunction with our audited financial statements and the notes related

thereto which are included in “Item 8.

Financial Statements and Supplementary Data” of this Annual Report on Form 10-K.

information contained in the discussion and analysis set forth below includes forward-looking statements.

Our actual results may differ

materially from those anticipated in these forward-looking statements as a result of many factors, including those set forth under “Special

Note Regarding Forward-Looking Statements,” “Item 1A.

Risk Factors” and elsewhere in this Annual Report on Form 10-K.

We are a blank check company incorporated in the

Cayman Islands on March 12, 2024 formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization

or other similar Business Combination with one or more businesses.

We intend to effectuate our Business Combination using cash derived

from the proceeds of the Initial Public Offering and the sale of the Private Placement Warrants, our shares, debt or a combination of

cash, shares and debt.

We expect to continue to incur significant costs

in the pursuit of our acquisition plans.

We cannot assure you that our plans to complete a Business Combination will be successful.

Management’s Discussion and Analysis

of Financial Condition and Results of Operations.

The following discussion and

analysis of the Company’s financial condition and results of operations should be read in conjunction with our audited financial

statements and the notes related thereto which are included in “Item 8.

Financial Statements and Supplementary Data” of this

Annual Report on Form 10-K.

Certain information contained in the discussion and analysis set forth below includes forward-looking statements.

Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including

those set forth under “Special Note Regarding Forward-Looking Statements,” “Item 1A.

Risk Factors” and elsewhere

in this Annual Report on Form 10-K and in our other filings with the SEC, including our preliminary proxy statement/prospectus to be included

in a Registration Statement on Form S-4, as amended, that we filed with the SEC relating to the proposed business combination with ReserveOne.

We are a blank check company

incorporated in the Cayman Islands on March 12, 2024, formed for the purpose of effecting a merger, share exchange, asset acquisition,

share purchase, reorganization or other similar Business Combination with one or more businesses.

We intend to effectuate our Business

Combination using cash derived from the proceeds of the IPO and the sale of the Private Placement Warrants, our shares, debt or a combination

of cash, shares and debt.

We expect to continue to incur

significant costs in the pursuit of our acquisition plans.

We cannot assure you that our plans to complete a Business Combination will

be successful.

Recent Developments

Business Combination Agreement

On July 7, 2025, the Company,

ReserveOne, Pubco, SPAC Merger Sub, and Company Merger Sub, entered into the Business Combination Agreement.

Pursuant to the Business Combination

Agreement, the Company will effect the Domestication to Delaware.

Following the Domestication, SPAC Merger Sub will merge with and into

the Company, with the Company continuing as the surviving entity, and as a result of which the Company will be a wholly-owned subsidiary

Promptly following the SPAC Merger, Company Merger Sub will merge with and into ReserveOne, with ReserveOne continuing as the

surviving company, and as a result of which ReserveOne will be a wholly-owned subsidiary of Pubco.

As a result of the Mergers,

Pubco will become a publicly traded company, all upon the terms and subject to the conditions set forth in the Business Combination Agreement

and in accordance with applicable laws.

The shares of Pubco Class

A common stock, par value $0.0001 per share, will be listed for trading and will be freely transferable, subject to the transfer restrictions

set forth in the Sponsor Support Agreement and the Lock-Up Agreement and any restrictions pursuant to applicable laws.

The shares of Pubco

Class B common stock, par value $0.0001 per share, will not be listed or freely transferable.

The Closing is expected to

occur in the second quarter of 2026, subject to the satisfaction of certain customary closing conditions.

The foregoing description

of the Business Combination Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of

the Business Combination Agreement, a copy of which is attached hereto as Exhibit 2.1, and incorporated by reference herein.

Second Sponsor Note

On February 18, 2026, we issued a promissory note

(the “ Second Sponsor Note ”) to the Sponsor, pursuant to which we can borrow up to an aggregate principal amount of

$2,000,000 from the Sponsor.

On February 18, 2026, we borrowed $600,000 under the Second Sponsor Note.

The proceeds of the Second Sponsor

Note will be used for general working capital purposes.

The Second Sponsor Note bears no interest and is payable in full upon the consummation

of our initial business combination.

foregoing description of the Second Sponsor Note does not purport

to be complete and is qualified in its entirety by reference to the full text of the Second Sponsor Note ,

a copy of which is attached hereto as Exhibit 10.19, and incorporated by reference herein.

Results of Operations

We have neither engaged in any operations nor

generated any revenues to date.

Our only activities from March 12, 2024 (inception) through December 31, 2024 were organizational activities,

those necessary to prepare for the Initial Public Offering, described below, and identifying a target company for a Business Combination.

We have neither engaged in

any operations nor generated any revenues to date.

Our only activities from March 12, 2024 (inception), through December 31, 2025, were

organizational activities, those necessary to prepare for the IPO, described below, and 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.

3 unchanged sentences

a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the period from March 12, 2024 (inception)

through December 31, 2024, we had net income of $5,226,327, which consists of $5,679,743 from interest earned on cash held in Trust Account,

partially offset by $453,416 of general and administrative costs.

Liquidity and Capital Resources

Until the consummation of the Initial Public Offering,

our only source of liquidity was an initial purchase of shares of Class B ordinary shares, par value $0.0001 per share, by the Sponsor

and loans or advances from the Sponsor or another related party.

On August 2, 2024, we consummated the Initial

Public Offering of 28,750,000 Units at $10.00 per Units, which includes the full exercise by the underwriters of their over-allotment

option in the amount of 3,750,000 Units generating gross proceeds of $287,500,000.

Simultaneously with the closing of the Initial Public

Offering, we consummated the sale of an aggregate of 8,337,500 Private Placement Warrants at a price of $1.00 per Private Placement Warrant,

in a private placement to the Sponsor and Cantor Fitzgerald & Co., the representative of the underwriters of the initial Public Offering,

generating gross proceeds of $8,337,500.

Following the Initial Public Offering, the full

For the year ended December

31, 2025, we had net income of $5,778,750, which consists of $12,263,666 from interest earned on cash held in Trust Account, partially

offset by $4,867,916 of general and operating costs and $1,617,000 of compensation expenses.

For the period from March

12, 2024 (inception) through December 31, 2024, we had net income of $5,226,327, which consists of $5,679,743 from interest earned on

cash held in Trust Account, partially offset by $453,416 of general and operating costs.

Going Concern, Liquidity and Capital Resources

Until the consummation of

the IPO, our only source of liquidity was an initial purchase of shares of Class B ordinary shares, par value $0.0001 per share, by the

Sponsor and loans or advances from the Sponsor or another related party.

On August 2, 2024, we consummated

the IPO of 28,750,000 Units at $10.00 per Units, which includes the full exercise by the underwriters of their over-allotment option in

the amount of 3,750,000 Units generating gross proceeds of $287,500,000.

Simultaneously with the closing of the IPO, we consummated the

sale of an aggregate of 8,337,500 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, in a private placement

to the Sponsor and Cantor Fitzgerald & Co., the representative of the underwriters of the IPO, generating gross proceeds of $8,337,500.

Following the IPO, the full

exercise of the over-allotment option, and the sale of the Units, a total of $288,937,500 was placed in the Trust Account.

1 unchanged sentence

of other offering costs.

As of December 31, 2024, we had marketable securities

held in the Trust Account of $294,617,243.

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 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 December 31, 2024, we had cash of $821,188.

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.

In order to fund working capital deficiencies

or finance transaction costs in connection with a Business Combination, the Sponsor, or certain of our officers and directors or their

affiliates may, but are not obligated to, loan us funds as may be required.

If we complete a Business Combination, we would repay such

loaned amounts.

In the event that a Business Combination does not close, we may use a portion of the working capital held outside the

Trust Account to repay such loaned amounts but no proceeds from our Trust Account would be used for such repayment.

Up to $1,500,000

of such Working Capital Loans may be convertible into private placement warrants of the post Business Combination entity at a price of

$1.00 per warrant at the option of the lender.

The warrants would be identical to the Private Placement Warrants.

We do not believe we will need to raise additional

As of December 31, 2025, we

had marketable securities held in the Trust Account of $306,880,908.

We may withdraw interest from the Trust Account to pay taxes, if

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 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.

On June 16, 2025, we issued

the Sponsor Note to the Sponsor pursuant to which the Company has borrowed $2,500,000 from the Sponsor as of December 31, 2025.

$1,500,000 of the Sponsor Note may be convertible into private placement warrants of the post business combination entity at a price of

$1.00 per warrant at the option of the Sponsor.

The warrants will be identical to the Private Placement Warrants

As of December 31, 2025, we

had cash of $1,175,051 and working capital deficit of $5,995,887.

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.

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 our liquidity concerns and mandatory liquidation date raise substantial doubt about our ability to continue as a going

No adjustments have been made to the carrying amounts of assets or liabilities should we be required to liquidate after the period

in which we have to complete our initial business combination.

The Company cannot assure that its plans to consummate an initial business

combination will be successful.

In order to fund working capital

deficiencies or finance transaction costs in connection with a business combination, the Sponsor, or certain of our officers and directors

or their affiliates may, but are not obligated to, loan us funds as may be required.

If we complete our initial business combination,

we would repay such loaned amounts.

In the event that a business combination does not close, we may use a portion of the working capital

held outside the Trust Account to repay such loaned amounts but no proceeds from our Trust Account would be used for such repayment.

We may need to raise additional

funds in order to meet the expenditures required for operating our business.

7 unchanged sentences

Off-Balance Sheet Arrangements

We have no obligations, assets or liabilities,

which would be considered off-balance sheet arrangements as of December 31, 2024.

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 have no obligations, assets

or liabilities, which would be considered off-balance sheet arrangements as of December 31, 2025.

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.

Contractual obligations

We do not have any long-term debt, capital lease

obligations, operating lease obligations or long-term liabilities.

The underwriters had a 45-day option from the

date of the Initial Public Offering to purchase up to an additional 3,750,000 units to cover over-allotments, if any.

Simultaneously

with the closing of the Initial Public Offering, the underwriters elected to fully exercise the over-allotment option to purchase the

additional 3,750,000 Units at a price of $10.00 per Unit.

We do not have any long-term

debt, capital lease obligations, operating lease obligations or long-term liabilities.

The underwriters had a 45-day

option from the date of the IPO to purchase up to an additional 3,750,000 units to cover over-allotments, if any.

Simultaneously with

the closing of the IPO, the underwriters elected to fully exercise the over-allotment option to purchase the additional 3,750,000 Units

at a price of $10.00 per Unit.

Promissory Notes – Related Party

Prior to the IPO, we issued

a promissory note to the Original Sponsor, pursuant to which we could borrow up to an aggregate principal amount of $300,000.

The Promissory

Note was non-interest bearing and payable upon the earlier of (i) December 31, 2024, or (ii) the completion of the IPO.

No amounts were

borrowed under the Promissory Note and borrowings under the Promissory Note are no longer available.

On June 16, 2025, we issued

a promissory note, pursuant to which we could borrow up to an aggregate principal amount of $2,500,000 from the Sponsor (the “ Sponsor

As of December 31, 2025, the full $2,500,000 available under the Sponsor Note had been drawn, and the entire amount

was outstanding.

Up to $1,500,000 of the aggregate principal amount drawn under the Sponsor Note may be convertible into Private Placement

Warrants of the post business combination entity at a price of $1.00 per warrant at the option of the Sponsor.

If the Business Combination

or another initial business combination is not consummated, the Sponsor Note may not be repaid and may not be able to be converted into

Pubco Warrants, pursuant to its terms.

Such warrants would be identical to the Private Placement Warrants.

On February 18, 2026, we issued

a promissory note (the “ Second Sponsor Note ”) to the Sponsor, pursuant to which we can borrow up to an aggregate principal

amount of $2,000,000 from the Sponsor.

On February 18, 2026, we borrowed $600,000 under the Second Sponsor Note.

The proceeds of the Second

Sponsor Note will be used for general working capital purposes.

The Second Sponsor Note bears no interest and is payable in full upon

the consummation of our initial business combination.

Critical Accounting Policies

The preparation of 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 financial statements, and income and expenses during the periods reported.

Actual results could materially differ from those estimates.

The preparation of 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 financial statements, and income and expenses during the periods reported.

Actual results could materially

differ from those estimates.

We have identified no critical accounting policies.

Recent Accounting Standards

In August 2020, the FASB issued ASU 2020-06,

“Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts

in Entity’s Own Equity (Subtopic 815-40)” (“ASU 2020-06”), to simplify certain financial instruments.

ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible

instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s

The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed

to and settled in an entity’s own equity.

ASU 2020-06 amends the diluted earnings per share guidance, including the requirement

to use the if-converted method for all convertible instruments.

ASU 2020-06 is effective for fiscal years beginning after December 15,

2023 and should be applied on a full or modified retrospective basis.

Early adoption is permitted, but no earlier than fiscal years

beginning after December 15, 2020, including interim periods within those fiscal years.

We adopted ASU 2020-06 as of March 12,

2024 (inception).

There was no effect to our financial statements.

In November 2023, the FASB issued ASU 2023-07, Segment

Reporting (Topic 280):

In August 2020, the FASB issued

ASU 2020-06, “Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s

Own Equity (Subtopic 815-40)” (“ASU 2020-06”), to simplify certain financial instruments.

ASU 2020-06 eliminates the

current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies

the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity.

The new standard

also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s

ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all

convertible instruments.

ASU 2020-06 is effective for fiscal years beginning after December 15, 2023 and should be applied on a full or

modified retrospective basis.

Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including

interim periods within those fiscal years.

We adopted ASU 2020-06 as of March 12, 2024 (inception).

There was no effect to our financial

In November 2023, the FASB

issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures.

The amendments in this ASU require disclosures,

on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating officer decision maker

(“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss.

The ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the

reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

The amendments in this ASU require

disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating officer

decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment

profit or loss.

The ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses

the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources.

Public entities

will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a

single reportable segment are required to provide all the disclosures required by the amendments in this ASU and existing segment

disclosures in Topic 280.

This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods

within fiscal years beginning after December 15, 2024, with early adoption permitted.

Management does not believe that any recently

issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our financial statements.

Quantitative and Qualitative Disclosures about Market

will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable

segment are required to provide all the disclosures required by the amendments in this ASU and existing segment disclosures in Topic 280.

This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December

15, 2024, with early adoption permitted.

Management does not believe

that any recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our financial

Quantitative and Qualitative Disclosures

about Market Risk

Not required for smaller reporting companies

Financial Statements and Supplementary Data

This information appears following Item 15 of

this Report and is included herein by reference.

Changes in and Disagreements with Accountants on Accounting

and Financial Disclosure

Financial Statements and Supplementary

This information appears following Item 15 of this

Report and is included herein by reference.

Changes in and Disagreements with Accountants

on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 7. Management’s Discussion and Analysis