HCM II Acquisition Corp., incorporated on April 4, 2024, reported its financial performance for the three months ended September 30, 2024, in its recent 10-Q filing. The company, classified as a non-accelerated filer and an emerging growth company, has not yet commenced operations, focusing instead on its Initial Public Offering (IPO) and the pursuit of a business combination.

The IPO, completed on August 19, 2024, raised gross proceeds of $230 million from the sale of 23 million units at $10.00 each, with an additional $6.85 million generated from the sale of 6.85 million private placement warrants. The total gross proceeds from both offerings amounted to $236.85 million, with $231.15 million placed in a Trust Account for future business combinations. The company incurred total offering costs of $15.4 million, which included underwriting fees and other expenses.

For the third quarter of 2024, HCM II Acquisition Corp. reported a net income of $1.07 million, translating to a basic and diluted net income per Class A ordinary share of $0.07. This performance reflects a significant increase compared to the net income of $1.02 million for the period from inception through September 30, 2024. The weighted average shares outstanding for Class A ordinary shares during the quarter were approximately 10.6 million.

The company’s operating costs for the quarter were reported at $278,494, with total operating costs from inception through September 30, 2024, amounting to $331,157. Interest earned on marketable securities during the same period was $1.35 million, contributing positively to the net income.

As of September 30, 2024, HCM II Acquisition Corp. held cash of $825,134 and marketable securities valued at approximately $232.5 million in the Trust Account. However, the company indicated a lack of liquidity to sustain operations for at least one year, primarily due to anticipated costs associated with acquisition efforts.

The company has until August 19, 2026, to complete a business combination, failing which it will be required to liquidate. As of the reporting date, no specific business combination target had been selected, and the company had not engaged in substantive discussions with potential targets. The ongoing geopolitical tensions may also pose risks to the company's search for a suitable business combination.