FACT II Acquisition Corp. Reports $5.02 Million Net Income for Fiscal Year 2025

FACT II Acquisition Corp. has reported its financial performance for the fiscal year ending December 31, 2025, revealing a net income of $5.02 million, primarily driven by interest income from cash held in its trust account. This figure represents a significant increase compared to a net loss of $71,891 for the previous fiscal period, which ended December 31, 2024. The company generated $7.19 million in interest income during 2025, offset by general and administrative expenses totaling $2.23 million. The trust account held approximately $183.79 million in cash as of year-end, reflecting the proceeds from its initial public offering (IPO) and private placements.

In terms of strategic developments, FACT II Acquisition Corp. entered into a Business Combination Agreement on November 26, 2025, with Precision Aerospace & Defense Group, Inc. (PAD). This agreement outlines the terms for a merger, which will see PAD become a wholly-owned subsidiary of FACT II. The company plans to domesticate as a Delaware corporation prior to the merger, which is expected to enhance its operational framework. The merger is contingent upon various conditions, including shareholder approval and regulatory compliance, and is anticipated to close within the stipulated timeframe.

Operationally, the company has not yet generated any revenues from business operations, as it is still in the process of identifying a suitable target for its initial business combination. As of December 31, 2025, FACT II had a working capital deficiency of $613,884, indicating that it may need to secure additional financing to support its operations and acquisition plans. The company has indicated that it may seek loans from its sponsor or affiliates to cover operational costs and transaction expenses.

Looking ahead, FACT II Acquisition Corp. has expressed confidence in its ability to complete a business combination within the 24-month period following its IPO. However, the company acknowledges the risks associated with market conditions, competition for acquisition targets, and the potential for increased costs due to regulatory changes. The management team is focused on leveraging its extensive network and experience to identify and execute a successful business combination, which is critical for the company's future growth and profitability.