Soulpower Flags Going Concern Doubt as Cash Dwindles to $120K

summarizeSummary

Soulpower Acquisition Corp. disclosed going concern doubt in its Q2 10-Q, with only $120,744 in cash outside trust and $3.66 million in sponsor loans. The business combination with SWB LLC remains pending.

check_boxKey Events · Earnings and Guidance · SOUL

• Going Concern Doubt Disclosed

  Management states substantial doubt about the company's ability to continue as a going concern for at least one year, citing insufficient cash and financing to fund projected operating costs.

• Cash Position Deteriorates

  Cash outside the trust account fell to $120,744 as of June 30, 2026, with negative working capital of $1,240,409.

• Sponsor Loans Surge

  Loans payable to sponsor increased from $988,480 to $3,657,906, including a $785,000 A Note with a 22% flat interest charge and $2.91 million in B/B2 Notes forgivable upon business combination.

• Business Combination Still Pending

  The proposed merger with SWB LLC (Soul World Bank) has not closed and remains subject to shareholder and regulatory approvals. If not completed by April 3, 2027, the company must liquidate.

auto_awesomeAnalysis · SOUL · Real Estate & Construction

The 10-Q reveals management has substantial doubt about the company's ability to continue as a going concern. Cash outside the trust account is only $120,744, and the company has negative working capital of $1,240,409. To stay afloat, it has taken on $3.66 million in sponsor loans, including a $785,000 note with a 22% flat interest charge. The proposed business combination with SWB LLC remains unclosed, and if it fails by April 3, 2027, the company must liquidate. This is a critical liquidity warning for a SPAC with a $272 million market cap.