Xterax Corporation II (formerly Karman Line Acquisition Corp.) filed a Form 10-Q with the SEC on November 12, 2026, covering the quarterly period ended September 30, 2026, its first such report following its initial public offering.

Key Highlights

  • Trust Account balance: Cash and marketable securities held in Trust Account totaled $200,590,805 as of September 30, 2026, according to the filing.
  • Shares outstanding: As of November 12, 2026, there were 20,000,000 Class A ordinary shares subject to possible redemption, 650,000 Class A ordinary shares not subject to redemption, and 6,666,667 Class B ordinary shares outstanding.
  • Redemption value: The 20,000,000 Class A ordinary shares subject to possible redemption were carried at $10.03 per share as of September 30, 2026.
  • Net income for the quarter: The company reported net income of $219,380 for the three months ended September 30, 2026, driven by $590,805 in interest income from the Trust Account.
  • Deferred underwriting commissions: Non-current liabilities included $8,000,000 in deferred underwriting commissions as of September 30, 2026.
  • Over-allotment forfeiture: The underwriters forfeited the over-allotment option on August 18, 2026, resulting in the forfeiture of 1,000,000 Class B ordinary shares, leaving 6,666,667 Class B ordinary shares issued and outstanding.
  • Private Placement: The filing disclosed the sale of 650,000 Private Placement Units, raising $6,500,000 in proceeds during the quarter.

Xterax Corporation II Reports Balance Sheet and Operating Results After IPO Completion

Xterax Corporation II, formerly known as Karman Line Acquisition Corp. and listed on NASDAQ:XTER, is a blank check company incorporated in the Cayman Islands. The company is classified as a shell company under Rule 12b-2 of the Exchange Act, as indicated on the filing's cover page. Its securities registered on the Nasdaq Stock Market LLC include units (XTERU), Class A ordinary shares (XTER), and redeemable warrants (XTERW), with each whole warrant exercisable for one Class A ordinary share at an exercise price of $11.50, according to the filing.

For the three months ended September 30, 2026, the company reported total operating expenses of $348,925, which included formation, general and administrative costs of $258,856, insurance expense of $6,156, listing fees of $11,281, share-based compensation expense of $43,600, and an administrative support fee expense of $29,032. Other income for the quarter totaled $568,305, consisting of $590,805 in interest income from the Trust Account, partially offset by financing expense of $44,800 and a gain on extinguishment of a founder share purchase option liability of $22,300. The resulting net income for the three months ended September 30, 2026 was $219,380, the filing disclosed. For the nine months ended September 30, 2026, the company reported net income of $174,517.

As of September 30, 2026, total assets were $202,412,018, compared to $24,623 as of December 31, 2025, with the increase attributable primarily to the Trust Account established in connection with the IPO. Total shareholders' deficit stood at ($6,326,307) as of September 30, 2026, compared to ($16,259) as of December 31, 2025, reflecting accretion of Class A ordinary shares subject to possible redemption of ($15,446,078) during the period, partially offset by IPO and private placement proceeds and other items recorded in the quarter, according to the filing.

What Was Disclosed

Xterax Corporation II filed its quarterly report for the period ended September 30, 2026, disclosing its balance sheet, income statement, and changes in shareholders' deficit following its IPO, the sale of Private Placement Units, and the forfeiture of the over-allotment option on August 18, 2026.