LAUNCH ONE ACQUISITION CORP. FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2025

Overview

We are a blank check company incorporated in the Cayman Islands on February 21, 2024, formed for the purpose of effecting a Business Combination with one or more businesses or entities. We intend to effectuate our Business Combination using cash derived from the proceeds of the Initial Public Offering and the Private Placement, our shares, debt or a combination of cash, shares and debt.

We expect to continue to incur significant costs in the pursuit of our acquisition plans. We cannot assure our shareholders that our plans to complete a Business Combination will be successful.

In 2024, the SEC adopted additional rules and regulations relating to SPACs, known as the 2024 SPAC Rules. These rules may materially affect our ability to negotiate and complete our initial Business Combination and may increase the costs and time related thereto.

Results of Operations

We have neither engaged in any operations nor generated any revenues to date. Our only activities from February 21, 2024 (inception) through March 31, 2025 were organizational activities, those necessary to prepare for the Initial Public Offering, and identifying a target company for a Business Combination. We do not expect to generate any operating revenues until after the completion of our Business Combination.

For the three months ended March 31, 2025, we had a net income of $2,287,413, which consisted of interest earned on marketable securities held in Trust Account of $2,449,036 and unrealized gain on cash and marketable securities held in Trust Account of $16,222, partially offset by general and administrative costs of $177,845.

For the period from February 21, 2024 (inception) through March 31, 2024, we had a net loss of $18,186, which consisted of general and administrative costs.

Factors That May Adversely Affect our Results of Operations

Our results of operations and our ability to complete an initial Business Combination may be adversely affected by various factors that could cause economic uncertainty and volatility in the financial markets, many of which are beyond our control. These factors include downturns in the financial markets or in economic conditions, increases in oil prices, inflation, fluctuations in interest rates, increases in tariffs, supply chain disruptions, declines in consumer confidence and spending, public health considerations, and geopolitical instability.

Liquidity, Capital Resources, and Going Concern

Until the consummation of the Initial Public Offering, our only source of liquidity was an initial purchase of shares of Class B ordinary shares by the Sponsor and loans from the Sponsor.

On July 15, 2024, we consummated the Initial Public Offering of 23,000,000 Units at $10.00 per Unit, which includes the full exercise by the underwriters of their over-allotment option in the amount of 3,000,000 Units, generating gross proceeds of $230,000,000. Simultaneously, we consummated the sale of 6,000,000 Private Placement Warrants at a price of $1.00 per Private Placement Warrant, generating gross proceeds of $6,000,000.

As of March 31, 2025, we had cash and marketable securities held in the Trust Account of $237,994,779 consisting of U.S. Treasury Bills with a maturity of 185 days or less. We had $668,923 in its operating bank account and a working capital surplus of $795,071.

Management plans to address the going concern uncertainty through a Business Combination. If a Business Combination is not consummated by the end of the Combination Period, currently July 17, 2026, there will be a mandatory liquidation and subsequent dissolution. Management has determined that the liquidity condition raises substantial doubt about our ability to continue as a going concern.

Off-Balance Sheet Arrangements and Contractual Obligations

We have no obligations, assets or liabilities that would be considered off-balance sheet arrangements. We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than an agreement to pay an affiliate of the Sponsor $12,500 per month for office space, utilities and secretarial and administrative support services.

The underwriters had a 45-day option from the date of the Initial Public Offering to purchase up to an additional 3,000,000 units to cover over-allotments, which they fully exercised.

Critical Accounting Estimates

As of March 31, 2025, we did not have any critical accounting estimates to be disclosed. Management does not believe that recently issued, but not yet effective, accounting standards, if currently adopted, would have a material effect on our condensed financial statement.