dMY Squared Technology Group, Inc. has reported its financial performance for the fiscal year ending December 31, 2025, revealing a net loss of approximately $17.8 million. This loss was primarily attributed to general and administrative expenses totaling around $4.4 million, which included $120,000 paid to the company's Sponsor for administrative services, and $3.1 million in merger-related expenses. Additionally, the company recorded a loss of approximately $14.3 million from changes in the fair value of derivative warrant liabilities, partially offset by about $1.1 million in interest income from investments held in the Trust Account. This marks a significant increase in losses compared to the previous fiscal year, where the net loss was approximately $819,000.
In terms of operational developments, dMY Squared has not yet completed its initial business combination, which is a requirement for the company to generate revenue. The company has been actively seeking a target for acquisition and has extended its deadline for completing a business combination multiple times, with the latest extension allowing until June 29, 2026. As of December 31, 2025, approximately $27.3 million remained in the Trust Account, which is intended for use in the business combination. The company has also faced challenges, including a delisting from the NYSE American exchange due to not completing a business combination within the required timeframe, leading to its securities now trading on the OTC Markets.
Strategically, dMY Squared has entered into a Business Combination Agreement with Horizon Quantum Holdings Ltd., which is focused on developing software for quantum computing. This agreement was unanimously approved by the boards of both companies and is subject to shareholder approval and other customary closing conditions, including a minimum cash condition of $45 million. The company has also engaged in a PIPE investment, securing commitments of approximately $110.4 million from institutional and accredited investors, which is expected to close concurrently with the business combination.
The company has identified material weaknesses in its internal controls over financial reporting, which have raised concerns about its ability to report financial results accurately and in a timely manner. Management has implemented a remediation plan to address these weaknesses, including enhancing controls over complex transactions and improving communication with external advisors. Despite these efforts, there remains substantial doubt about the company's ability to continue as a going concern if it fails to complete a business combination by the extended deadline.
Looking ahead, dMY Squared's management remains focused on completing the proposed business combination with Horizon and is actively working to address the challenges posed by market conditions and regulatory requirements. The company acknowledges the risks associated with its current financial position and the potential impact of external factors, including geopolitical instability and economic volatility, on its ability to successfully execute its business strategy.
About dMY Squared Technology Group, Inc.
dMY Squared Technology Group, Inc. is a blank check company focused on acquiring businesses within the professional services industry, including accounting, legal, and financial advisory firms. It aims to complete a business combination with companies valued between $500 million and $2 billion, emphasizing strong revenue growth and cash flow. The company operates as a shell entity, seeking to merge with or acquire operating businesses to generate value for shareholders.
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