DRUGS MADE IN AMERICA ACQUISITION CORP. FORM 10-Q
Drugs Made in America Acquisition Corp. (DMAA) filed its quarterly report for the period ended June 30, 2026. The company reported a net loss of $1.4 million for the three months ended June 30, 2026, compared to a net loss of $1.1 million for the same period in 2025. As of June 30, 2026, DMAA had cash and cash equivalents of $14.4 million, compared to $15.4 million as of December 31, 2025. The company’s total assets decreased to $16.4 million as of June 30, 2026, from $17.4 million as of December 31, 2025. The decrease in assets was primarily due to a decrease in cash and cash equivalents.
Overview
Drugs Made In America Acquisition Corp. is a blank check company formed in 2024 for the purpose of merging with or acquiring a business, particularly in the pharmaceutical industry. The company completed its initial public offering (IPO) in January 2025, raising $200 million by selling 20 million units at $10 per unit. Each unit consisted of one ordinary share and one right to receive one-eighth of an ordinary share upon the completion of an initial business combination.
Financial Performance
- For the three and six months ended June 30, 2026, the company reported net income of $1.7 million and $3.7 million, respectively. This was primarily due to interest earned on the funds held in the company’s trust account, which offset general and administrative expenses.
- For the three and six months ended June 30, 2025, the company reported net income of $2.3 million and $3.5 million, respectively, also driven by interest income.
Liquidity and Capital Resources
- As of June 30, 2026, the company had $20,280 in cash on hand.
- Following the IPO and sale of private placement units, the company placed $231.15 million in a trust account to be used for a future business combination.
- The company has incurred $8.9 million in transaction costs related to the IPO, including $1.15 million in underwriting fees and $6.9 million in deferred underwriting fees.
- The company’s sponsor or affiliates may provide working capital loans of up to $1.5 million, which could be convertible into additional private placement units.
Going Concern
- The company’s pursuit of a business combination and the requirement to liquidate if a deal is not completed by April 2027 raise substantial doubt about its ability to continue as a going concern. Management plans to address this uncertainty through a successful business combination.
Contractual Obligations
- The company has no long-term debt, capital leases, or operating lease obligations.
- The company agreed to pay the underwriters a 0.5% cash underwriting discount and a 3% deferred underwriting fee, payable upon completion of a business combination.
- The company also agreed to issue the underwriters 200,000 ordinary shares (or up to 230,000 if the over-allotment option is exercised in full).
Outlook
The company is focused on identifying and completing a business combination, particularly in the pharmaceutical industry, before the April 2027 deadline. Its ability to continue as a going concern depends on its success in finding and executing a suitable merger or acquisition. The company’s financial performance will be largely determined by the strength and growth potential of the target business it acquires.
