Archimedes Tech SPAC Partners II Co. Reports $136.8 Million Net Loss and Faces Liquidity Challenges

Archimedes Tech SPAC Partners II Co. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2026. The company recorded a net loss of $136.8 million for the quarter, a stark contrast to a net income of $2.4 million during the same period in 2025. For the first half of 2026, the net loss totaled $135 million, compared to a profit of $3.5 million in the prior year. The losses were primarily attributed to a $100 million PIPE subscription expense and a $37.9 million change in the fair value of a PIPE subscription derivative liability, alongside increased general and administrative expenses.

The company’s total assets as of June 30, 2026, amounted to $244.7 million, a slight increase from $241.3 million at the end of 2025. However, cash reserves significantly decreased to $415,000 from $1.36 million, while the demand deposit held in the Trust Account rose to $244.2 million from $239.9 million. The liabilities surged to $146.6 million, primarily due to the PIPE subscription derivative liability, which was recorded as a current liability.

In terms of operational developments, Archimedes Tech SPAC Partners II Co. is in the process of executing a merger agreement with Forge Nano, Inc. This agreement, signed on April 20, 2026, will result in the company re-domiciling as a Delaware corporation and merging with Forge Nano. The merger is expected to facilitate the company’s initial business combination, which is a key focus for the firm as it seeks to establish a foothold in the technology sector, particularly in artificial intelligence and cloud services.

The company has not yet commenced operations and has no material revenues, as it is still in the process of identifying a target for its initial business combination. As of June 30, 2026, Archimedes Tech SPAC Partners II Co. had three inactive subsidiaries and plans to utilize the funds in its Trust Account primarily for the business combination. The company has until November 12, 2026, to complete this transaction, or it will face mandatory liquidation.

Looking ahead, the company faces substantial liquidity challenges, with a working capital deficit of $138 million. Management has indicated that it may seek loans from the Sponsor or affiliates to cover operational costs until the business combination is completed. The company’s ability to continue as a going concern is contingent upon successfully completing the merger with Forge Nano and securing additional financing, raising significant concerns about its future viability.