Company: CRAC
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111020
Chunk: 38

Company: Crown Reserve Acquisition Corp. I
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 38
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Officers”), we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures,
as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of June 30, 2025. Based on that evaluation, our Certifying Officers
have concluded that our disclosure controls and procedures were not effective as of that date, because the Company has not yet established
formal internal control processes and segregation of duties due to its limited operations prior to the completion of its initial public
offering. Management intends to design and implement formal disclosure controls and procedures upon completion of the offering and as
the Company commences full operations. This conclusion does not reflect a material weakness in our financial statements as presented herein,
which management believes are fairly stated in all material respects, but rather reflects that our internal control environment is still
in the development stage.

Changes in Internal
Control over Financial Reporting

The Company is in the
process of developing its internal control over financial reporting. During the quarter ended June 30, 2025, there were no changes in
our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, such controls.
Because the Company has not yet completed the design and implementation of its internal control framework due to its limited operations
prior to the completion of its initial public offering, management will continue to evaluate and implement appropriate internal control
procedures as operations commence following the offering.

24

PART II - OTHER INFORMATION
 
Item 1. Legal Proceedings
 
None
 
Item 1A. Risk Factors
 
Factors that could cause
our actual results to differ materially from those in this report include the risk factors described in our final prospectus for its
Initial Public Offering filed with the SEC. As of the date of this Quarterly Report, there have been no material changes to the risk
factors disclosed in our Form S-1 as filed on September 24, 2025.
 
Item 2. Unregistered
Sales of Equity Securities and Use of Proceeds.
 
There are no transactions that have not been previously included in
a Current Report on Form 8-K.
 
Use of Proceeds
 
On May 12, 2025,
the Sponsor paid $25,000 to cover certain offering costs in exchange for 4,312,500 founder shares. Up to 562,500 founder shares are subject
to forfeiture by the sponsor depending on the extent to which the underwriters’