AEAQU · Activate Energy Acquisition Corp.

Net income reached $1.8M for Q1 FY2026, driven by interest earned on Trust Account investments that more than offset the $192K operating loss from general and administrative expenses. This dynamic underscores the SPAC structure, where cash held in trust generates returns to cover pre-combination operating costs without depleting outside-the-trust liquidity. Operating cash flow showed a $185K use, reflecting the non-cash nature of interest income recognized and minor working capital adjustments, preserving operational runway.

Management closely monitors general and administrative expenses, as reviewed by the Chief Operating Decision Maker (CODM), to forecast and manage cash needs. This discipline ensures sufficient capital remains available to complete a business combination within the required period, aligning with the company's pre-deal phase priorities. No unregistered sales of equity securities occurred this quarter, consistent with standard SPAC operations prior to identifying a target.

Looking forward, the company anticipates incurring significant costs in pursuit of acquisition plans. There is no assurance that efforts to raise additional capital or consummate an initial business combination will succeed, introducing execution risk inherent to the SPAC model. Broader market factors, such as sanctions potentially causing global economic instability, lack of liquidity in capital markets, or adverse financial conditions, could further complicate deal timelines and financing. These risks are particularly acute for SPACs dependent on favorable market environments to execute mergers effectively.

Exhibits reference critical agreements, including the Investment Management Trust Agreement and Private Placement Units with the Sponsor, reinforcing the governance framework safeguarding trust proceeds. The certification under §1350 of the Sarbanes-Oxley Act affirms management's review of the 10-Q, emphasizing accountability in reporting. Overall, Q1 results demonstrate prudent cash management and interest-driven profitability, positioning the company to navigate pre-combination challenges while highlighting the uncertainties of deal completion.