Company: APAD
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001213900-25-087285
Chunk: 26

Company: AParadise Acquisition Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 26
---
 pursue our growth strategies. Such working capital funds
could be used in a variety of ways and could also be used to repay any operating expenses or finders’ fees which we had incurred
prior to the completion of our Business Combination or to indemnify any of our officers or directors as required by law if the funds available
to us outside of the Trust Account were insufficient to cover such expenses.

As of June 30, 2025, we had no cash and a working
capital deficit of $388,893. The Company’s liquidity needs prior to the closing of IPO were satisfied through a payment from the
Sponsor of $25,000 for the Founder Shares and total advances from the Sponsor of $57,922 to cover certain offering costs, as well as a
loan under an unsecured promissory note from the Sponsor of $300,000 (see Note 5). We intend to use the funds held outside the Trust Account
primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from
the offices, plants or similar locations of prospective target businesses or their representatives or owners, review corporate documents
and material agreements of prospective target businesses, structure, negotiate and consummate a business combination.

In order to fund working capital deficiencies
or finance transaction costs in connection with a business combination, the Sponsor or an affiliate of our Sponsor, or certain of our
officers and directors or their affiliates may, but are not obligated to, loan us funds as may be required. If we complete a business
combination, we would repay such loaned amounts. In the event that a business combination does not close, we may use a portion of the
working capital held outside the Trust Account to repay such loaned amounts but no proceeds from our Trust Account would be used for such
repayment. Up to $1,500,000 of such Working Capital Loans may be convertible into Private Placement Units of the post business combination
entity at a price of $10.00 per Private Placement Unit at the option of the lender. Such units would be identical to the Private Placement
Units issued to our sponsor. The terms of such loans by our officers and directors, if any, have not been determined and no written agreements
exist with respect to such loans. We do not expect to seek loans from parties other than our sponsor or an affiliate of our sponsor as
we do not believe third parties will be willing to loan such funds and provide a waiver against any and all rights to seek access