Company: PCAP
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001213900-25-074297
Chunk: 57

Company: ProCap Acquisition Corp
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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 the Company cannot assure that the Sponsor would be able
to satisfy those obligations.

Liquidity and Capital Resources

The Company’s liquidity needs up to June
30, 2025 have been satisfied through the loan under an unsecured promissory note from the Sponsor of up to $300,000 (see Note 5). As of
June 30, 2025, the Company had cash of $1,367,369 and working capital surplus of $1,337,818.

On May 22, 2025, the Company consummated the Initial
Public Offering of 25,000,000 Units, which includes the partial exercise by the underwriters of their over-allotment option in the amount
of 3,000,000 Units, at $10.00 per Unit, generating gross proceeds of $250,000,000. Simultaneously with the closing of the Initial Public
Offering, the Company consummated the sale of 430,000 Private Placement Units at a price of $10.00 per Private Placement Unit, in a private
placement to the Sponsor, generating gross proceeds of $4,300,000.

6

PROCAP ACQUISITION CORP

NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2025

(Unaudited) 

In order to fund working capital deficiencies
or finance transaction costs in connection with a Business Combination, the Sponsor, members of the Company’s founding team or any
of their affiliates may, but are not obligated to, loan the Company funds as may be required (“Working Capital Loans”). If
the Company completes a Business Combination, the Company would repay such loaned amounts at that time. Up to $1,500,000 of such Working
Capital Loans may be converted into units of the post-Business Combination entity at a price of $10.00 per unit. The units would be identical
to the Private Placement Units. As of June 30, 2025, the Company had no borrowings under the Working Capital Loans.

In connection with the Company’s assessment
of going concern considerations in accordance with Accounting Standards Codification (“ASC”) 205-40, “Presentation of
Financial Statements - Going Concern,” while there was substantial doubt previously, due to the cash on hand and working capital
described above, the Company does not believe it will need to raise additional funds in order to meet the expenditures required for operating
its business. However, if the estimate of the