dMY Squared Technology Group Reports $6.4 Million Net Loss and Enters Business Combination Talks with Horizon Quantum Computing

dMY Squared Technology Group, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of approximately $6.4 million for the three months ended June 30, 2025, compared to a loss of $321,000 for the same period in 2024. For the six months ending June 30, 2025, the net loss was approximately $10.9 million, a substantial increase from the $490,000 loss reported in the prior year. The increase in losses is attributed primarily to a rise in general and administrative expenses, which totaled $1.3 million for the first half of 2025, compared to $608,000 in the same period of 2024.

The company’s total assets as of June 30, 2025, amounted to $26.9 million, a slight increase from $26.0 million at the end of 2024. However, total liabilities surged to $19.6 million, up from $7.4 million at the end of the previous fiscal year. This increase was driven by higher accrued expenses and a notable rise in derivative warrant liabilities, which reached $11.5 million, compared to $1.5 million at the end of 2024. The company’s accumulated deficit also widened significantly to $19.3 million from $6.8 million, reflecting ongoing operational challenges.

In terms of strategic developments, dMY Squared Technology Group has entered into a non-binding letter of intent for a business combination with Horizon Quantum Computing Pte. Ltd., valuing Horizon at approximately $500 million. This potential merger is part of the company’s ongoing efforts to identify and execute a business combination, a key objective since its inception. The company has extended its deadline for completing a business combination to August 29, 2025, following shareholder approval for an extension of its charter.

Operationally, the company has not yet commenced any revenue-generating activities, as it remains focused on finding a suitable business combination. As of June 30, 2025, the company had approximately $348 in cash, down from $309,399 at the end of 2024, indicating a tightening liquidity position. The company’s reliance on advances from related parties has increased, with outstanding advances totaling approximately $1.4 million as of the latest reporting date. The company continues to face significant risks, including regulatory uncertainties and macroeconomic factors that could impact its ability to complete a business combination.

Looking ahead, dMY Squared Technology Group's management has expressed concerns regarding its ability to continue as a going concern, given its current liquidity position and the substantial costs associated with pursuing its acquisition plans. The company has indicated that it may need to rely on additional funding or strategic partnerships to navigate these challenges effectively. The outlook remains contingent on successfully negotiating a definitive agreement with Horizon and completing the proposed business combination within the extended timeframe.