Form 10-Q - Quarterly report [Sections 13 or 15(d)]

Share Name	Share Symbol	Market	Type
Concord Acquisition Corp II	AMEX:CNDA	AMEX	Common Stock

	Price Change	% Change	Share Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	10.50				0	00:00:00

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Concord Acquisition Corp II

(Exact name of registrant as specified in its charter)

Delaware

001-40773

86-2171101

(State or other jurisdiction of

incorporation or organization)

(Commission File Number)

(I.R.S. Employer

Identification Number)

477 Madison Avenue
New York, NY		10022
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (212) 883-4330

Not Applicable

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class:	Trading Symbol:	Name of Each Exchange on Which Registered:
Units, each consisting of one share of Class A common stock and one-third of one redeemable warrant	CNDA.U	NYSE American
Class A common stock, par value $0.0001 per share	CNDA	NYSE American
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50	CNDA.WS	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ☐

As of August 7, 2024, there were 2,200,303 shares of Class A common stock, par value $0.0001 per share, and 7,002,438 shares of Class B common stock, par value $0.0001 per share, issued and outstanding.

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CONCORD ACQUISITION CORP II

QUARTERLY REPORT ON FORM 10-Q

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		PAGE

PART I. FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

	Condensed Balance Sheets	1

	Condensed Statements of Operations (Unaudited)	2

	Condensed Statements of Changes in Stockholders’ Deficit (Unaudited)	3

	Condensed Statements of Cash Flows (Unaudited)	4

	Notes to Condensed Financial Statements (Unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.	Controls and Procedures	29

PART II. OTHER INFORMATION		31

Item 1.	Legal Proceedings	31

Item 1A.	Risk Factors	31

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31

Item 3.	Defaults Upon Senior Securities	31

Item 4.	Mine Safety Disclosures	31

Item 5.	Other Information	31

Item 6.	Exhibits	32

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited).

CONCORD ACQUISITION CORP II

CONDENSED BALANCE SHEETS


	June 30, 2024		December 31, 2023
	(unaudited)
Assets
Cash	$	525,404	$	363,225
Income tax receivable		—		3,211
Prepaid expenses		124,749		10,680
Total Current Assets		650,153		377,116
Cash held in Trust Account		23,447,845		153,928,848
Total Assets	$	24,097,998	$	154,305,964

Liabilities and Stockholders’ Deficit
Due to related party	$	122,905	$	750
Accrued income taxes		42,405		—
Accounts payable and accrued expenses		1,425,388		1,160,614
Excise tax payable		2,687,721		1,360,357
Total Current Liabilities		4,278,419		2,521,721
Warrant liability		1,621,024		1,930,756
Capital Contribution Note, at fair value		543,253		—
Deferred underwriters’ commission		4,127,237		4,127,237
Total Liabilities		10,569,933		8,579,714

Commitments and Contingencies

Common stock subject to possible redemption, 2,200,303 and 14,699,019 shares at redemption value of $10.68 and $10.47 at June 30, 2024 and December 31, 2023, respectively		23,505,391		153,932,010

Stockholders’ Deficit:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding		—		—
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 0 shares issued and outstanding, excluding 2,200,303 and 14,699,019 shares subject to possible redemption at June 30, 2024 and December 31, 2023, respectively		—		—
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 7,002,438 shares issued and outstanding		700		700
Additional paid-in capital		—		—
Accumulated deficit		(9,978,026)		(8,206,460)
Total Stockholders’ Deficit		(9,977,326)		(8,205,760)
Total Liabilities and Stockholders’ Deficit	$	24,097,998	$	154,305,964

The accompanying notes are an integral part of these condensed financial statements.

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CONCORD ACQUISITION CORP II

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)


	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2024		2023		2024		2023
Operating costs	$	565,464	$	318,679	$	910,715	$	613,653
Loss from operations		(565,464)		(318,679)		(910,715)		(613,653)

Other income:
Other income		—		2,453		34		3,573
Income from cash and investments held in Trust Account		1,248,068		3,405,365		2,936,231		6,412,840
Excess of fair value of Capital Contribution Note over initial principal balance at issuance		34,921		—		(565,079)		—
Change in fair value of Capital Contribution Note		621,826		—		621,826		—
Change in fair value of warrant liability		19,138		448,098		309,732		1,115,780
Total other income		1,923,953		3,855,916		3,302,744		7,532,193

Income before provision for income taxes		1,358,489		3,537,237		2,392,029		6,918,540
Provision for income taxes		(251,594)		(705,200)		(595,616)		(1,326,494)
Net income	$	1,106,895	$	2,832,037	$	1,796,413	$	5,592,046

Basic and diluted weighted average shares outstanding, Class A common stock subject to possible redemption		10,853,260		28,009,750		12,776,140		28,009,750
Basic and diluted net income per share, Class A common stock subject to possible redemption	$	0.06	$	0.08	$	0.09	$	0.16

Basic and diluted weighted average shares outstanding, Class B common stock		7,002,438		7,002,438		7,002,438		7,002,438
Basic and diluted net income per share, Class B common stock	$	0.06	$	0.08	$	0.09	$	0.16

The accompanying notes are an integral part of these condensed financial statements.

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CONCORD ACQUISITION CORP II

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

(Unaudited)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024


				Class A			Class B			Additional
	Preferred Stock			Common Stock			Common Stock			Paid-In		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Capital		Deficit		Deficit
Balance as of January 1, 2024	—	$	—	—	$	—	7,002,438	$	700	$	—	$	(8,206,460)	$	(8,205,760)
Increase in redemption value of shares subject to possible redemption	—		—	—		—	—		—		—		(1,294,142)		(1,294,142)
Net income	—		—	—		—	—		—		—		689,518		689,518
Balance as of March 31, 2024	—		—	—		—	7,002,438		700	$	—	$	(8,811,084)	$	(8,810,384)
Contribution - non-redemption agreements	—		—	—		—	—		—		90,353		—		90,353
Fair value of shareholder non-redemption agreements	—		—	—		—	—		—		(90,353)		—		(90,353)
Excise tax payable attributable to redemption of common stock	—		—	—		—	—		—		—		(1,327,364)		(1,327,364)
Increase in redemption value of shares subject to possible redemption	—		—	—		—	—		—		—		(946,473)		(946,473)
Net income	—		—	—		—	—		—		—		1,106,895		1,106,895
Balance as of June 30, 2024	—	$	—	—	$	—	7,002,438	$	700	$	—	$	(9,978,026)	$	(9,977,326)

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2023


				Class A			Class B			Additional
	Preferred Stock			Common Stock			Common Stock			Paid-In		Accumulated		Stockholders’
	Shares	Amount		Shares	Amount		Shares	Amount		Capital		Deficit		Deficit
Balance as of January 1, 2023	—	$	—	—	$	—	7,002,438	$	700	$	—	$	(10,195,060)	$	(10,194,360)
Increase in redemption value of shares subject to possible redemption	—		—	—		—	—		—		—		(2,336,130)		(2,336,130)
Net income	—		—	—		—	—		—		—		2,760,009		2,760,009
Balance as of March 31, 2023	—		—	—		—	7,002,438		700		—		(9,771,181)		(9,770,481)
Increase in redemption value of shares subject to possible redemption	—		—	—		—	—		—		—		(2,650,165)		(2,650,165)
Net income	—		—	—		—	—		—		—		2,832,037		2,832,037
Balance as of June 30, 2023	—	$	—	—	$	—	7,002,438	$	700	$	—	$	(9,589,309)	$	(9,588,609)

The accompanying notes are an integral part of these condensed financial statements.

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CONCORD ACQUISITION CORP II

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


	For the Six
	Months Ended June 30,
	2024		2023
Cash flows from operating activities:
Net income	$	1,796,413	$	5,592,046
Adjustments to reconcile net income to net cash used in operating activities:
Income from cash and investments held in Trust Account		(2,936,231)		(6,412,840)
Excess of fair value of Capital Contribution Note over initial principal balance at issuance		565,079		—
Change in fair value of Capital Contribution Note		(621,826)		—
Change in fair value of warrant liability		(309,732)		(1,115,780)
Changes in operating assets and liabilities:
Prepaid expenses		(114,069)		199,698
Due to related party		122,155		(8,365)
Accrued income taxes		45,616		(313,564)
Accounts payable and accrued expenses		264,774		(7,631)
Net cash used in operating activities		(1,187,821)		(2,066,436)

Cash Flows from Investing Activities:
Amounts withdrawn from Trust Account to pay taxes		750,000		1,781,042
Cash withdrawn from Trust Account in connection with redemptions		132,667,234		—
Net cash provided by investing activities		133,417,234		1,781,042

Cash flows from financing activities:
Redemption of Common Stock		(132,667,234)		—
Proceeds from Capital Contribution Note		600,000		—
Net cash used in financing activities		(132,067,234)		—

Net change in cash		162,179		(285,394)
Cash, beginning of the period		363,225		1,081,413
Cash, end of the period	$	525,404	$	796,019

Supplemental disclosure of cash flow information:
Non-cash financing transactions:
Increase in redemption value of shares subject to possible redemption	$	2,240,615	$	4,986,295
Increase in excise tax payable	$	1,327,364	$	—

The accompanying notes are an integral part of these condensed financial statements.

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

NOTE 1 — ORGANIZATION, BUSINESS OPERATIONS AND LIQUIDITY

Organization and General

Concord Acquisition Corp II (the “Company”) is a blank check company incorporated on February 18, 2021, as a Delaware corporation. The Company was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (“Business Combination”).

As of June 30, 2024, the Company had not commenced any operations. All activity since February 18, 2021 (inception) through June 30, 2024, relates to the Company’s formation, the Initial Public Offering (as defined below) and, subsequent to the Initial Public Offering, identifying a target company for a Business Combination. The Company will not generate any operating revenues until after the completion of its initial Business Combination, at the earliest. The Company will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering, and non-operating income or expense from the changes in the fair value of warrant liability and Capital Contribution Note (which is described in Note 2 – Capital Contribution Note).

The Company’s sponsors are Concord Sponsor Group II LLC (an affiliate of Atlas Merchant Capital LLC) (the “Sponsor”), and CA2 Co-Investment LLC (an affiliate of one of the underwriters of the Initial Public Offering) (“CA2 Co-Investment” and, together with the Sponsor, the “Sponsors”).

The registration statements for the Initial Public Offering were declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on August 31, 2021 (the “Effective Date”). On September 3, 2021, the Company consummated the initial public offering (the “Initial Public Offering” or “IPO”) of 25,000,000 units (the “Units” and, with respect to the Class A common stock included in the Units sold, the “public shares”) at $10.00 per Unit, generating gross proceeds of $250,000,000.

Ten qualified institutional buyers or institutional accredited investors that are not affiliated with the Company, the Sponsor, the Company’s directors or any member of the Company’s management (“Anchor Investors”) each expressed to the Company an interest in purchasing up to 9.9% of the units sold in the IPO, at the offering price of $10.00, for an aggregate of up to $247.5 million of units offered. At the closing of the Company’s initial Business Combination, each of the Anchor Investors will be entitled to purchase from the Sponsor 125,000 Founder Shares (as defined in Note 1 below) at their original purchase price of approximately $0.003 per share, or 1,250,000 Founder Shares in the aggregate, subject to each Anchor Investor’s acquisition of 100% of the units allocated to it by the underwriters in the IPO. On September 3, 2021, the Anchor Investors purchased a total of 24,750,000 Units or 99% of the outstanding Units offered in the IPO and as a result, have the right to purchase a total of 1,250,000 Founder Shares from the Sponsor contingent on the closing of a Business Combination.

Simultaneously with the closing of the IPO, the Company consummated the private placement of 4,262,121 warrants to the Sponsor, 587,879 warrants to CA2 Co-Investment, and 75,000 warrants each to two of the Anchor Investors (together, the “Private Warrants”), each at a price of $1.50 per Private Warrant, generating gross proceeds of $7,500,000.

The Company’s Business Combination must be with one or more target businesses that together have a fair market value equal to at least 80% of the net balance in the Trust Account (as defined below) (excluding the amount of deferred underwriters’ commission held and taxes payable on the income earned on the Trust Account) at the time of the signing of an agreement to enter into a Business Combination. However, the Company will only complete a Business Combination if the post-Business Combination company owns or acquires 50% or more of the outstanding voting securities of the target or otherwise acquires a controlling interest in the target sufficient for it not to be required to register as an investment company under the Investment Company Act of 1940, as amended (the “Investment Company Act”). There is no assurance that the Company will be able to successfully effect a Business Combination.

Upon the closing of the Initial Public Offering, an aggregate of $10.00 per Unit sold in the Initial Public Offering, including the proceeds of the sale of the Private Placement Warrants, was held in a trust account (“Trust Account”) and was invested only in U.S. government treasury bills with a maturity of 185 days or less or in money market funds investing solely in U.S. Treasuries and meeting certain

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

conditions under Rule 2a-7 under the Investment Company Act. Except with respect to interest earned on the funds held in the Trust Account that may be released to the Company as described below, the funds held in the Trust Account will not be released from the Trust Account until the earliest of: (1) the completion of the initial Business Combination; (2) the redemption of any public shares properly submitted in connection with a stockholder vote to amend the Company’s amended and restated certificate of incorporation (i) to modify the substance or timing of the Company’s obligation to provide for the redemption of the public shares in connection with the initial Business Combination or to redeem 100% of the public shares if the Company does not complete the initial Business Combination on or before March 3, 2025 (Second Extended Date, as defined below), or during any extended time that the Company has to consummate a Business Combination beyond 24 months as a result of a stockholder vote to amend the Company’s amended and restated certificate of incorporation (an “Extension Period”)” (as discussed below) or (ii) with respect to any other provisions relating to stockholders’ rights or pre-initial Business Combination activity; and (3) the redemption of all of the public shares if the Company has not completed the initial Business Combination on or before March 3, 2025, or during any Extension Period, subject to applicable law. The proceeds deposited in the Trust Account could become subject to the claims of the Company’s creditors, if any, which could have priority over the claims of the public stockholders.

The Company will provide its public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of the initial Business Combination either: (1) in connection with a stockholder meeting called to approve the Business Combination; or (2) by means of a tender offer. Except as required by applicable law or stock exchange rules, the decision as to whether the Company will seek stockholder approval of a proposed Business Combination or conduct a tender offer will be made by the Company, solely in its discretion. The public stockholders will be entitled to redeem all or a portion of their public shares upon the completion of the initial Business Combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, calculated as of two business days prior to the consummation of the initial Business Combination, including interest (which interest shall be net of taxes payable), divided by the number of then outstanding public shares, subject to the limitations. As of June 30, 2024, the amount in the Trust Account redeemable by common stockholders is approximately $10.68 per public share.

The shares of common stock subject to redemption were recorded at redemption value and classified as temporary equity upon the completion of the Initial Public Offering, in accordance with Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”) Topic 480, “Distinguishing Liabilities from Equity.” In such case, the Company will proceed with a Business Combination, among other things, if the Company seeks stockholder approval, and a majority of the issued and outstanding shares voted are voted in favor of the Business Combination.

In August 2023, the Company and the Sponsor entered into Non-Redemption Agreements with a number of the Company’s stockholders (“NRA Investors”) in exchange for them agreeing not to redeem shares of the Company’s Class A common stock sold in the IPO (the “Non-Redeemed Shares”) in connection with the special meeting of stockholders called by the Company and held on August 29, 2023 (described below). In exchange for the foregoing commitments not to redeem such shares, the Company has agreed to issue, or cause to be issued, to such investors an aggregate of 2,326,496 shares of Class A Common Stock (the “2023 Promote Shares”) and the Sponsor has agreed to surrender and forfeit to the Company for no consideration, a number of shares of Class B common stock, par value $0.0001 per share, of the Company equal to the number of 2023 Promote Shares upon closing of the initial Business Combination.

On August 29, 2023, the Company’s stockholders approved at the special meeting of stockholders a proposal to amend the Company’s amended and restated certificate of incorporation (the “charter”) to extend the date by which the Company has to consummate a business combination from September 3, 2023 (the “Termination Date”) to June 3, 2024, or such earlier date as may be determined by the board of directors of the Company (such later date, the “Extended Date”). In connection with the votes to approve the Charter Amendment, the holders of 13,310,731 shares of Class A common stock of the Company properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.35 per share, for an aggregate redemption amount of $137,792,552, leaving $152,164,096 in the Trust Account immediately after the redemptions.

On May 20, 2024, the Company announced that it had entered into a non-binding letter of intent for a Business Combination with an industry-leading marketplace and SaaS platform in the fintech, events management, AI, and consumer engagement space (the “Target”). The completion of the proposed Business Combination is subject to, among other things, the completion of due diligence, the negotiation of definitive agreements for the Business Combination (the “Definitive Agreements”), satisfaction of the conditions negotiated therein,

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

approval of the transaction by the board and stockholders of both the Company and Target, as well as regulatory approvals and other customary conditions. There can be no assurance that Definitive Agreements will be entered into or that the Business Combination will be consummated on the terms or timeframe currently contemplated, or at all.

On May 23, 2024, the Company announced the transfer of the listing of its Class A common stock, units and warrants from the New York Stock Exchange to NYSE American LLC (“NYSE American”). The Company’s Class A common stock, units and warrants began trading on NYSE American on May 29, 2024 under the same ticker symbols.

In May 2024, the Company and the Sponsor entered into Non-Redemption Agreements with a number of the Company’s stockholders (“2024 NRA Investors”) in exchange for them agreeing not to redeem shares of the Company’s Class A common stock sold in the IPO (the “2024 Non-Redeemed Shares”) in connection with the special meeting of stockholders called by the Company and held on May 31, 2024 (described below). In exchange for the foregoing commitment to the Company to not redeem the 2024 Non-Redeemed Shares, the Company agreed to issue, or cause to be issued, to such stockholders, an aggregate of 75,000 shares of Class A common stock for the first six months of extension, and an aggregate of 9,000 additional shares of Class A common stock for each additional month of extension, up to three additional months (such shares, the “2024 Promote Shares”), upon closing of the initial Business Combination, and the Sponsor agreed to surrender and forfeit, for no consideration, a number of shares of Class B common stock, par value $0.0001 per share, of the Company equal to the number of 2024 Promote Shares upon closing of the initial Business Combination.

As the 2023 Promote Shares and 2024 Promote Shares will be issued only upon closing of an initial Business Combination, such shares will not be subject to redemption.

On May 31, 2024, the Company’s stockholders approved at the special meeting of stockholders a proposal to amend the Company’s charter to extend the date by which the Company has to consummate a Business Combination from June 3, 2024 to March 3, 2025, or such earlier date as may be determined by the board of directors of the Company (such later date, the “Second Extended Date”). In connection with the votes to approve the Second Charter Amendment, the holders of an additional 12,498,716 shares of Class A common stock of the Company properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.61 per share, for an aggregate redemption amount of $132,667,234, leaving $23,355,048 in the Trust Account immediately after the redemptions.

Founder Shares

Founder Shares refers to the Class B common stock (the “Founder Shares”) acquired by the Sponsor, officers and board of directors prior to the Company’s IPO.

The Company’s initial stockholders, officers and directors have agreed not to transfer, assign or sell, except to permitted transferees, any Founder Shares held by them until the earlier to occur of: (1) one year after the completion of the initial Business Combination; or (2) subsequent to the initial Business Combination, (x) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of the public stockholders having the right to exchange their shares of common stock for cash, securities or other property or (y) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination. Any permitted transferees would be subject to the same restrictions and other agreements of the initial stockholders with respect to any Founder Shares (the “Lock-up”).

Initial Business Combination

The Company will have until March 3, 2025, or during any Extension Period, (the “Combination Period”) to complete the initial Business Combination. If the Company is unable to complete the initial Business Combination within such period or during any additional Extension Period (as defined below), the Company will: (1) cease all operations except for the purpose of winding up; (2) as promptly as reasonably possible but not more than ten business days thereafter, redeem the public shares, at a per share price, payable in cash, equal to the aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

(which interest shall be net of taxes payable (excluding excise taxes), and less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, which redemption will completely extinguish public stockholders’ rights as stockholders (including the right to receive further liquidating distributions, if any), (3) as promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders and the board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under Delaware law to provide for claims of creditors and the requirements of other applicable law. There will be no redemption rights or liquidating distributions with respect to their warrants, which will expire worthless if the Company fails to complete the initial Business Combination within the Combination Period.

The Sponsors, officers and directors have agreed to waive: (1) their redemption rights with respect to any Founder Shares and public shares held by them, as applicable, in connection with the completion of the initial Business Combination; (2) their redemption rights with respect to any Founder Shares and public shares held by them in connection with a stockholder vote to approve an amendment to the Company’s amended and restated certificate of incorporation (A) to modify the substance or timing of the obligation to allow redemptions in connection with the initial Business Combination or to redeem 100% of the public shares if the Company has not consummated the initial Business Combination within the Combination Period or (B) with respect to any other provision relating to stockholders’ rights or pre-initial Business Combination activity; and (3) their rights to liquidating distributions from the Trust Account with respect to any Founder Shares they hold if the Company fails to complete the initial Business Combination within the Combination Period or during any extended time that the Company has to consummate a Business Combination beyond the Combination Period as a result of a stockholder vote to amend the Company’s amended and restated certificate of incorporation (an “Extension Period”) (although they will be entitled to liquidating distributions from the Trust Account with respect to any public shares they hold if the Company fails to complete the initial Business Combination within the Combination Period).

The Sponsor has agreed that it will be liable to the Company if and to the extent any claims by a third party for services rendered or products sold to the Company, or a prospective target business with which the Company has discussed entering into a transaction agreement, reduce the amount of funds in the Trust Account to below: (1) $10.00 per public share; or (2) such lesser amount per public share held in the Trust Account as of the date of the liquidation of the Trust Account due to reductions in the value of the trust assets, in each case net of the amount of interest which may be withdrawn to pay taxes, except as to any claims by a third party who executed a waiver of any and all rights to seek access to the Trust Account and except as to any claims under the Company’s indemnity of the underwriters of the Initial Public Offering against certain liabilities, including liabilities under the Securities Act of 1933, as amended (the “Securities Act”). Moreover, in the event that an executed waiver is deemed to be unenforceable against a third party, the Sponsors will not be responsible to the extent of any liability for such third-party claims. The Company has not independently verified whether the Sponsor has sufficient funds to satisfy its indemnity obligations and believe that the Sponsor’s only assets are securities of the Company and, therefore, the Sponsor may not be able to satisfy those obligations. The Company has not asked the Sponsor to reserve for such obligations.

Liquidity and Going Concern Consideration

As of June 30, 2024, the Company had cash of $525,404 held outside of the Trust Account and available for working capital purposes. Further, investment income on the funds held in the Trust Account may be released to the Company to pay taxes (excluding excise taxes) and up to $100,000 to pay dissolution expenses. Additionally, the Company has incurred an excise tax liability of $2,687,721, of which approximately $1,360,000 is payable in October 2024. The Company currently has insufficient funds to pay this liability, absent any additional financing.

On March 28, 2024, the Company entered into a subscription agreement (the “March Subscription Agreement”) with the Sponsor and the Capital Contribution Note Investor (see Note 6), pursuant to which the Capital Contribution Note Investor has agreed to provide up to $600,000 to the Sponsor and, subsequently, the Sponsor would loan the funds to the Company (the “Capital Contribution Note”) through a Promissory Note as discussed in Note 3 and Note 6. As of June 30, 2024, the Company called $600,000 under the Capital Contribution Note (see Note 6) and subsequently borrowed $600,000 under a Promissory Note (see Note 3).

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

below) upon request by the Company. The Note amended, replaced and superseded in its entirety that certain promissory note, dated May 3, 2022, made by the Company in favor of the Sponsor in the principal amount of up to $350,000 (the “Original Note”), and any unpaid principal balance of the indebtedness evidenced by the Original Note has been merged into and evidenced by the Note. The Note does not bear interest and the principal balance will be payable on the date on which the Company consummates its initial Business Combination (such date, the “Maturity Date”). The Note is subject to customary events of default, the occurrence of certain of which automatically triggers the unpaid principal balance of the Note and all other sums payable with regard to the Note becoming immediately due and payable. At June 30, 2024 and December 31, 2023, there was no amount outstanding under the Note.

If the estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, the Company may have insufficient funds available to operate our business prior to a Business Combination. Moreover, the Company may need to obtain additional financing either to complete a Business Combination or because the Company becomes obligated to redeem a significant number of public shares upon consummation of a Business Combination, in which case the Company may issue additional securities or incur debt in connection with such Business Combination. Subject to compliance with applicable securities laws, the Company would only complete such financing simultaneously with the completion of a Business Combination. In addition, following a Business Combination, if cash on hand is insufficient, the Company may need to obtain additional financing in order to meet its obligations.

The Company has until March 3, 2025, or during any Extension Period, to consummate a Business Combination. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company. Although the Company intends to consummate a Business Combination on or before March 3, 2025, or during any Extension Period, it is uncertain whether the Company will be able to consummate a Business Combination by this time. In connection with the Company’s assessment of going concern considerations in accordance with ASC Subtopic 205-40, “Presentation of Financial Statements – Going Concern”, Management has determined that the mandatory liquidation, should a Business Combination not occur and potential subsequent dissolution, as well as the potential for the Company to have insufficient funds available to operate its business prior to a Business Combination, raise substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts and classification of assets or liabilities should the Company be required to liquidate after March 3, 2025, or during any Extension Period.

Risks and Uncertainties

The continuing military conflict between the Russian Federation and Ukraine, the military actions between Hamas and Israel and the risk of escalations of other military conflicts have created and are expected to create global economic consequences. The specific impact on the Company’s financial condition, results of operations, cash flows and a search for a target company is not determinable as of the date of these financial statements.

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 8-03 of Regulation S-X of the SEC. Certain information or footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, they do not include all the information and footnotes necessary for a complete presentation of financial position, results of operations, or cash flows. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments, consisting of a normal recurring nature, which are necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented.

The accompanying unaudited condensed financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on March 1, 2024, which contains the audited financial statements and notes thereto. The accompanying condensed balance sheet as of December 31, 2023, has been derived from those audited financial statements. The interim results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024, or for any future interim periods.

Emerging Growth Company

The Company is an “emerging growth company,” as defined in Section 2(a) of the Securities Act of 1933, as amended, as modified by the Jumpstart our Business Startups Act of 2012, (the “JOBS Act”), and it may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in its periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. The Company has elected not to opt out of such extended transition period which means that when a standard is issued or revised and it has different application dates for public or private companies, the Company, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard. This may make comparison of the Company’s financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Use of Estimates

The preparation of unaudited condensed financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited condensed financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

Cash and Cash Equivalents

The Company considers all short-term investments with an original maturity of three months or less when purchased to be cash equivalents. The Company did not have any cash equivalents as of June 30, 2024 and December 31, 2023, respectively.

Cash Held in Trust Account

As of June 30, 2024 and December 31, 2023, funds held in Trust Account consisted of interest bearing demand deposits that generally have a readily determinable fair value. Such funds are presented on the condensed balance sheets at fair value at the end of the reporting period. Interest on the demand deposits is included in income from cash and investments held in Trust Account in the accompanying condensed statements of operations.

During the three and six months ended June 30, 2023, investments held in Trust Account consisted of mutual funds that invest primarily in US government securities and generally have a readily determinable fair value. Interest, dividends, and gains and losses resulting from the change in fair value of these securities are included in income from cash and investments held in Trust Account in the accompanying condensed statements of operations.

Concentration of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed, and as of June 30, 2024 and December 31, 2023 did exceed the Federal Depository Insurance Coverage of $250,000. As of June 30, 2024 and December 31, 2023, the Company has not experienced losses on this account.

Offering Costs

The Company complies with the requirements of ASC 340-10-S99-1 and SAB Topic 5A-“Expenses of Offering”. Offering costs consist of legal, accounting, underwriting discount and other costs that are directly related to the IPO. Accordingly, offering costs were initially charged to stockholders’ equity (consisting of underwriting discount, deferred underwriters’ commission, and other offering costs offset by offering costs attributable to the warrant liability and recorded in the statement of operations). The Company adopted the residual method to allocate the gross proceeds between Class A common stock and warrants based on their relative fair values.

Deferred Underwriters’ Commission

The Company complies with ASC 405, “Liabilities” and derecognized the deferred underwriting commission liability upon being released of the obligation by the underwriters. Upon the IPO, the Company accounted for the deferred underwriter’s commission as an offering cost. To account for the waiver of the deferred underwriting commission, the Company reduced the deferred underwriter commission liability and reversed the previously recorded cost of issuing the instruments in the IPO, which included recognizing a contra-expense in the amount previously allocated to liability classified warrants and expensed upon the IPO, and reduced the accumulated deficit and increased income available to Class B common stock, which was previously allocated to the Class A common stock subject to redemption and accretion recognized at the IPO date.

Common Stock Subject to Possible Redemption

The Company accounts for its shares of Class A common stock subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity”. Shares of Class A common stock subject to mandatory redemption (if any) is classified as a liability instrument and is measured at fair value. Conditionally redeemable shares of Class A common stock (including shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) is classified as temporary equity. At all other times, shares of Class A common stock are classified as stockholders’ equity.

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

The Class A common stock sold as part of the Units in the IPO contain a redemption feature which allows for the redemption of such public shares in connection with the Company’s liquidation, if there is a shareholder vote or tender offer in connection with the Business Combination and in connection with certain amendments to the Company’s amended and restated certificate of incorporation. In accordance with the accounting treatment for redeemable equity instruments, which has been codified in ASC 480-10-S99, redemption provisions not solely within the control of the Company require Class A common stock subject to redemption to be classified outside of permanent equity. Therefore, all shares of Class A common stock have been classified outside of permanent equity.

The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable common stock to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable common stock are affected by charges against additional paid-in-capital (to the extent available) and accumulated deficit.

For the three and six months ended June 30, 2024 and 2023, the changes in Class A common stock subject to possible redemption is as follows:


	Shares	Amount
January 1, 2023	28,009,750	$	283,033,156
Plus:
Increase in redemption value of shares subject to possible redemption	—		2,336,130
March 31, 2023	28,009,750		285,369,286
Plus:
Increase in redemption value of shares subject to possible redemption	—		2,650,165
June 30, 2023	28,009,750	$	288,019,451

January 1, 2024	14,699,019	$	153,932,010
Plus:
Increase in redemption value of shares subject to possible redemption	—		1,294,142
March 31, 2024	14,699,019	$	155,226,152
Less:
Redemptions	(12,498,716)		(132,667,234)
Plus:
Increase in redemption value of shares subject to possible redemption	—		946,473
June 30, 2024	2,200,303	$	23,505,391

Fair Value of Financial Instruments

The fair value of the Company’s assets and liabilities, which qualify as financial instruments under the FASB ASC 820, “Fair Value Measurement” approximates the carrying amounts represented in the balance sheets, primarily due to their short-term nature.

Fair Value Measurements

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●	Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●	Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

●

Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging”. Derivative instruments are initially recorded at fair value on the grant date and re-valued at each reporting date, with changes in the fair value reported in the statement of operations. Derivative assets and liabilities are classified in the condensed balance sheet as current or non-current based on whether net-cash settlement or conversion of the instrument could be required within 12 months of the balance sheet date.

Stock-Based Compensation

The sale or transfers of the Founder Shares to members of the Company’s board of directors is within the scope of FASB ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity classified awards is measured at fair value upon the grant date. The Founder Shares were effectively sold or transferred subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founder Shares is recognized only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance. A business combination is not probable until it is completed. Stock-based compensation would be recognized at the date a Business Combination is considered probable in an amount equal to the number of Founder Shares times the grant date fair value per share (unless subsequently modified) less the amount initially received for the purchase of the Founder Shares. As of June 30, 2024 and for all prior periods, the Company determined that a Business Combination is not considered probable until the Business Combination is completed, and therefore, no stock-based compensation expense has been recognized.

Capital Contribution Note

The Company elected to account for the Capital Contribution Note entered into with an investor (the “Capital Contribution Note Investor”) and the Sponsor pursuant to the fair value option under ASC 825. ASC 825-10-15-4 provides for the “fair value option” election, to the extent not otherwise prohibited by ASC 825-10-15-5, to be afforded to financial instruments, wherein the financial instrument is initially measured at its issue-date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at each reporting period date. Differences between the face value of the Capital Contribution Note and fair value at issuance are recognized as either an expense in the statement of operations (if issued at a premium) or as a capital contribution (if issued at a discount). Any material changes in the estimated fair value of the Capital Contribution Note are recognized as non-cash gains or losses in the condensed statements of operations. The Company has determined that the fair value option better reflects the underlying economics of the Capital Contribution Note. The fair value of the Capital Contribution Note includes both the fair value of the 600,000 shares in consideration for the Capital Calls as described in Note 6 and the principal as of each reporting date. As such, the Capital Contribution Note was initially measured at $600,000 as of the issue date. Upon the Capital Calls in April and June, the Company recognized an excess of fair value of the Capital Contribution Note over the initial principal balance. For the three and six months ended June 30, 2024 the Company recognized an excess of fair value of the Capital Contribution Note of $(34,921) and $565,079, respectively. The Capital Contribution Note did not exist in 2023 and no excess of fair value of the Capital Contribution Note was recognized in the three or six months ended June 30, 2023. For the three and six months ended June 30, 2024, the Company recognized an unrealized gain of $621,826 due to the change in fair value of the Capital Contribution Note in the statement of operations. As of June 30, 2024, the fair value of the Capital Contribution Note was $543,253 (see Note 6).

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

Warrant Liability

The Company accounts for the 14,737,883 warrants issued in connection with the Initial Public Offering (the 9,336,583 Public Warrants and the 5,401,300 Private Placement Warrants) in accordance with the guidance contained in ASC 815-40, “Contracts in Entity’s Own Equity”. Such guidance provides that because the warrants do not meet the criteria for equity treatment thereunder, each warrant must be classified as a liability. Accordingly, the Company classifies each warrant as a liability at its fair value. This liability is subject to re-measurement at each balance sheet date. With each such re-measurement, the warrant liability will be adjusted to fair value, with the change in fair value recognized in the Company’s condensed statements of operations.

Non-Redemption Agreements

In August 2023, the Company and the Sponsor entered into Non-Redemption Agreements with a number of the Company’s stockholders in exchange for them agreeing not to redeem shares of the Non-Redeemed Shares in connection with the special meeting of stockholders called by the Company and held on August 29, 2023 (described below). In exchange for the foregoing commitments not to redeem such shares, the Company has agreed to issue, or cause to be issued, to such investors the 2023 Promote Shares and the Sponsor has agreed to surrender and forfeit to the Company for no consideration, a number of shares of Class B common stock, par value $0.0001 per share, of the Company equal to the number of 2023 Promote Shares upon closing of the initial Business Combination. The Company estimated the aggregate fair value of the shares attributable to the Investors to be $1,143,605.

In May 2024, the Company and the Sponsor entered into Non-Redemption Agreements with the 2024 NRA Investors in exchange for them agreeing not to redeem shares of the 2024 Non-Redeemed Shares in connection with the special meeting of stockholders called by the Company and held on May 31, 2024 (described below). In exchange for the foregoing commitment to the Company to not redeem the 2024 Non-Redeemed Shares, the Company agreed to issue, or cause to be issued, to such stockholders the 2024 Promote Shares, upon closing of the initial Business Combination, and the Sponsor agreed to surrender and forfeit, for no consideration, a number of shares of Class B common stock, par value $0.0001 per share, of the Company equal to the number of 2024 Promote Shares upon closing of the initial Business Combination. The Company estimated the aggregate fair value of the shares attributable to the Investors to be $90,353.

The Company complies with the requirements of SEC Staff Accounting Bulletin (“SAB”) Topic 5(A) – “Expenses of Offering” and SAB Topic 5(T): Miscellaneous Accounting - Accounting for Expenses or Liabilities Paid by Principal Stockholder(s). As such, the value of 2023 Promote Shares and the 2024 Promote Shares assigned to the Investors is recognized as offering costs and charged to stockholders’ deficit. The value of the Class B common stock to be forfeited by the Sponsors is reported as an increase to stockholders’ deficit.

Income Taxes

The Company accounts for income taxes under ASC 740, Income Taxes (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. The effective tax rate differs from the statutory tax rate of 21% for the three and six months ended June 30, 2024 and 2023, primarily due to changes in fair value of the warrant liability, which are not currently recognized in taxable income, non-deductible start-up costs, change in fair value of Capital Contribution Note, and the valuation allowance on the deferred tax assets.

While ASC 740 identifies usage of an effective annual tax rate for purposes of an interim provision, it does allow for estimating individual elements in the current period if they are significant, unusual or infrequent. Computing the effective tax rate for the Company is complicated due to the potential impact of the Company’s change in fair value of warrants (or any other change in fair value of a complex financial instrument), the timing of any potential business combination expenses and the actual interest income that will be recognized during the year. The Company has taken a position as to the calculation of income tax expense in a current period based on ASC 740-270-25-3 which states, “If an entity is unable to estimate a part of its ordinary income or loss or the related tax provision or

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

benefit but is otherwise able to make a reasonable estimate, the tax provision or benefit applicable to the item that cannot be estimated shall be reported in the interim period in which the item is reported.” The Company believes its calculation to be a reliable estimate and allows it to properly take into account the usual elements that can impact its annualized book income and its impact on the effective tax rate. As such, the Company is computing its taxable income or loss and associated income tax provision or benefit based on actual results through June 30, 2024 and 2023.

ASC 740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.

The Company recognizes accrued interest and penalties related to unrecognized tax benefits. There were no unrecognized tax benefits and no amounts accrued for interest and penalties as of June 30, 2024 and 2023. The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation from its position.

The Company has identified the United States as its only “major” tax jurisdiction.

The Company is subject to income tax examinations by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months. The Company was formed in 2021 and files U.S. federal and various state income tax returns. All tax periods since inception remain open to examination by the taxing jurisdictions to which the Company is subject. ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense.

On August 16, 2022, the Inflation Reduction Act of 2022 (the “IRA”) was signed into federal law. The IRA provides for, among other things, a new U.S. federal 1% excise tax on certain repurchases (including redemptions) of stock by publicly traded U.S. corporations and certain U.S. subsidiaries of publicly traded non-U.S. corporations (each, a “covered corporation”). Because the Company is a Delaware corporation and its securities are trading on the NYSE, the Company is a “covered corporation” for this purpose. The excise tax is imposed on the repurchasing corporation itself, not its stockholders from which shares are repurchased. The amount of the excise tax is generally 1% of the fair market value of the shares repurchased at the time of the repurchase. However, for purposes of calculating the excise tax, repurchasing corporations are permitted to net the fair market value of certain new stock issuances against the fair market value of stock repurchases during the same taxable year. In addition, certain exceptions apply to the excise tax. The U.S. Department of Treasury has been given authority to provide regulations and other guidance to carry out and prevent the abuse or avoidance of the excise tax. The IRA applies only to repurchases that occur after December 31, 2022.

Any redemption or other repurchase that occurs in connection with a Business Combination may be subject to the excise tax. Whether and to what extent we would be subject to the excise tax would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with a Business Combination, (ii) the timing, nature and amount of the equity issued in connection with a Business Combination (or otherwise issued not in connection with a Business Combination but issued within the same taxable year of a Business Combination), and (iii) the content of regulations and other guidance from the U.S. Department of the Treasury. In addition, because the excise tax would be payable by the Company, and not by the redeeming holder, the mechanics of any required payment of the excise tax have not been determined. The foregoing could cause a reduction in the cash available on hand to complete a Business Combination. At June 30, 2024 and December 31, 2023, there were $2,687,721 and $1,360,357, respectively, in excise taxes payable related to cumulative share redemptions as of June 30, 2024 and December 31, 2023, respectively. In accordance with ASC 340-10-S99-1, the liability does not impact the condensed statements of operations and is offset against accumulated deficit because additional paid-in capital is not available.

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

Because the Company did not complete a Business Combination by December 31, 2023, any additional redemption or other repurchase that occurs in connection with an initial Business Combination may be subject to the excise tax. Whether and to what extent the Company would be subject to the excise tax would depend on a number of factors, including (i) the fair market value of the redemptions and repurchases in connection with the Business Combination, (ii) the nature and amount of the equity issued in connection with the Business Combination (or otherwise issued not in connection with the Business Combination but issued within the same taxable year of the Business Combination), and (iii) the content of regulations and other guidance from the U.S. Department of the Treasury.

During the second quarter, the IRS issued final regulations with respect to the timing and payment of the excise tax. Pursuant to those regulations, the Company would need to file a return and remit payment for any liability incurred during the period from January 1, 2023 to December 31, 2023 on or before October 31, 2024.

The Company is currently evaluating its options with respect to payment of this obligation. If the Company is unable to pay its obligation in full, it will be subject to additional interest and penalties which are currently estimated at 10% interest per annum and a 5% underpayment penalty per month or portion of a month up to 25% of the total liability for any amount that is unpaid from November 1, 2024 until paid in full.

Net Income Per Common Share

The Company has two classes of shares, which are referred to as Class A common stock and Class B common stock. Earnings and losses are shared pro rata between the two classes of stock. For purposes of computing diluted earnings per share, the weighted-average shares outstanding of common stock reflects the dilutive effect that could occur if convertible securities or other contracts to issue common stock were converted into or exercised for common stock as of the beginning of the period in which the conditions were satisfied (or as of the date of the contingent stock agreement, if later). The calculation of diluted net income per common share does not consider the effect of the warrants issued in connection with the IPO since the exercise of the warrants would be anti-dilutive. Additionally, the diluted net income per common share does not consider the effect of the shares issuable related to the Capital Contribution Note as these shares are contingent on the closing of a Business Combination and are anti-dilutive. When applying the two-class method for determining net income per share, the Company has elected to exclude remeasurement associated with the redeemable shares of Class A common stock to redemption value as the redemption value is not in excess of fair value.

During the three and six months ended June 30, 2024 and 2023, the Company did not have any other dilutive securities and other contracts that could, potentially, be exercised or converted into common stock and then share in the earnings of the Company.

For the three and six months ended June 30, 2024 and 2023, basic and diluted net income per common share is as follows:


	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2024				2023				2024				2023
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	672,806	$	434,089	$	2,265,630	$	566,407	$	1,160,408	$	636,005	$	4,473,637	$	1,118,409

Denominator
Weighted-average shares outstanding		10,853,260		7,002,438		28,009,750		7,002,438		12,776,140		7,002,438		28,009,750		7,002,438
Basic and diluted net income per share	$	0.06	$	0.06	$	0.08	$	0.08	$	0.09	$	0.09	$	0.16	$	0.16

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

Recent Accounting Pronouncements

In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”), which simplifies accounting for convertible instruments by removing major separation models required under current GAAP. The ASU also removes certain settlement conditions that are required for equity-linked contracts to qualify for the derivative scope exception, and it simplifies the diluted earnings per share calculation in certain areas. The provisions of ASU 2020-06 are applicable for fiscal years beginning after December 15, 2023, with early adoption permitted no earlier than fiscal years beginning after December 15, 2020. The Company adopted ASU 2020-06 on January 1, 2024. The adoption of ASU 2023-09 has not had a material impact on the Company’s unaudited condensed financial statements and disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09), which requires disclosure of incremental income tax information within the rate reconciliation and expanded disclosures of income taxes paid, among other disclosure requirements. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company’s management does not believe the adoption of ASU 2023-09 will have a material impact on its financial statements and disclosures.

The Company’s management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the accompanying unaudited condensed financial statements.

NOTE 3. RELATED PARTY TRANSACTIONS

Founder Shares

On March 1, 2021, the Sponsors paid $25,000 in exchange for Class B common stock and transferred an aggregate of 75,000 Founder Shares to three members of the board of directors (each received 25,000 Founder Shares). At June 30, 2024 and December 31, 2023, there were 7,002,438 Founder Shares outstanding.

The Company’s initial stockholders, officers and directors have agreed not to transfer, assign or sell, except to permitted transferees, any Founder Shares held by them until the earlier to occur of: (1) one year after the completion of the initial Business Combination; and (2) subsequent to the initial Business Combination, (x) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of the public stockholders having the right to exchange their shares of common stock for cash, securities or other property or (y) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination. Any permitted transferees would be subject to the same restrictions and other agreements of the initial stockholders with respect to any Founder Shares (the “Lock-up”).

Promissory Note — Related Party

On May 3, 2022, the Sponsor agreed to loan the Company up to $350,000 to be used to pay operating expenses. This loan is non-interest bearing, unsecured, is not convertible into warrants or any other securities, and due at the closing of a business combination. On May 31, 2024, the Company issued the Note in the principal amount of up to $650,000 to the Sponsor, which amended, replaced and superseded in its entirety the Original Note, made by the Company in favor of the Sponsor in the principal amount of up to $350,000. The Note does not bear interest and the principal balance will be payable on the date on which the Company consummates its initial business combination. The Company has not borrowed any amount as of June 30, 2024 and December 31, 2023, and through the date of filing of this Form 10-Q.

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

Related Party Loans

In order to finance transaction costs in connection with an intended initial Business Combination, the Sponsors, an affiliate of the Sponsors or certain of the Company’s officers and directors may, but are not obligated to, loan the Company funds as may be required (the “Working Capital Loans”). If the Company completes an initial Business Combination, the Company will repay such loaned amounts out of the proceeds of the Trust Account released to the Company. Otherwise, such loans would be repaid only out of funds held outside the Trust Account. In the event that the initial Business Combination does not close, the Company may use a portion of the working capital held outside the Trust Account to repay such loaned amounts but no proceeds from the Trust Account would be used to repay such loaned amounts. Up to $1,500,000 of such loans may be convertible into Private Placement Warrants of the post Business Combination entity, at a price of $1.50 per warrant at the option of the lender. The warrants would be identical to the Private Placement Warrants issued to the Sponsors. As of June 30, 2024 and December 31, 2023, and through the date of filing of this Form 10-Q no such Working Capital Loans were outstanding.

Administrative Service Fee

The Company has agreed to pay an affiliate of its Sponsor a total of $20,000 per month for office space, utilities and secretarial and administrative support. Upon completion of the Company’s Business Combination or its liquidation, the Company will cease paying these monthly fees. The Company recognized an expense of $60,000 and $120,000 for the administrative service fee for the three and six months ended June 30, 2024 and 2023, which is included in operating costs on the condensed statements of operations, respectively. As of June 30, 2024 and December 31, 2023, the Company had $120,000 and $0, respectively, outstanding due to the affiliate of the Sponsor related to the administrative service fee.

Due to Related Party

In the normal course of business, certain expenses of the Company may be paid by, and then reimbursed to an affiliate of the Sponsor. As of June 30, 2024 and December 31, 2023, the Company had an outstanding balance due to the affiliate of the Sponsor of $122,905 and $750, respectively (including $120,000 and $0, respectively, for the administrative service fee at June 30, 2024 and December 31, 2023, as noted above). The amount is included in due to related party on the condensed balance sheets and includes but is not limited to legal expense, expense related to identifying a target business, and other expenses.

NOTE 4. COMMITMENTS AND CONTINGENCIES

Registration Rights

The holders of the Founder Shares, Private Placement Warrants and warrants that may be issued upon conversion of Working Capital Loans (and any shares of common stock issuable upon the exercise of the Private Placement Warrants or warrants issued upon conversion of the Working Capital Loans and upon conversion of the Founder Shares) will be entitled to registration rights pursuant to a registration rights agreement to be signed prior to or on the effective date of the Initial Public Offering requiring the Company to register such securities for resale (in the case of the Founder Shares, only after conversion to shares of Class A common stock). The holders of these securities will be entitled to make up to three demands, excluding short form registration demands, that the Company registers such securities. In addition, the holders have certain “piggy-back” registration rights with respect to registration statements filed subsequent to the Company’s completion of the initial Business Combination and rights to require the Company to register for resale such securities pursuant to Rule 415 under the Securities Act. The Company will bear the expenses incurred in connection with the filing of any such registration statements. The registration rights agreement does not contain liquidating damages or other cash settlement provisions resulting from delays in registering the Company’s securities.

Capital Markets Advisor Agreement

On August 21, 2023, the Company engaged a capital markets advisor in connection with seeking an extension for completing a Business Combination, a possible acquisition of a third party by merger, consolidation, acquisition of stock or assets or other business

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

combination, and as a placement agent in connection with a private placement of debt, equity, equity-linked or convertible securities. The Company agreed to pay the capital markets advisor a transaction fee in connection with the services provided, payable upon and subject to the Company’s consummation of an initial business combination (“Capital Markets Advisor Fee”). The fee consists of a fixed and determinable portion and a variable portion contingent upon certain future events expected to take place upon completion of a Business Combination. As of June 30, 2024 and December 31, 2023, $1,000,000 was accrued for the fee as the amount was fixed and determinable. These costs may be paid for using the proceeds of the cash available once a Business Combination is complete.

Expenses Contingent on the Closing of a Business Combination

As of June 30, 2024 and December 31, 2023, the Company has incurred $1,218,765 and $1,065,000, respectively, in fees contingent on the closing of a business combination. These costs may be paid for using the proceeds of the cash available once the business combination is complete. The amounts are included in accounts payable and accrued expenses on the condensed balance sheets.

Deferred Underwriters’ Commission

The underwriters were entitled to a deferred underwriters’ commission of 3.5% of the gross proceeds of the IPO, or $9,803,413 in the aggregate upon the completion of the Company’s initial Business Combination. In December 2023, one of the underwriters waived any right to receive the deferred underwriters’ commission and will therefore receive no additional underwriting commissions in connection with the closing of a Business Combination. The Company considers the deferred underwriters’ commission an offering costs. Offering costs are charged to stockholders’ equity or the statement of operations based on the relative value of the Public Warrants to the proceeds received from the Units sold upon the completion of the IPO. Upon the waiver of these offering costs, a portion of these offering costs were recorded to the statement of operations and to stockholders’ equity. As a result of the waived deferred underwriters’ commission during the three months ended December 31, 2023, the Company recognized $595,921 of income; $5,080,255 was recorded to accumulated deficit and the deferred underwriters’ commission was reduced by $5,676,176.

NOTE 5. STOCKHOLDERS’ DEFICIT

Preferred Stock — The Company is authorized to issue a total of 1,000,000 shares of preferred stock at par value of $0.0001 each. As of June 30, 2024 and December 31, 2023, there were no shares of preferred shares issued or outstanding.

Class A Common Stock — The Company is authorized to issue a total of 200,000,000 shares of Class A common stock at par value of $0.0001 each. Holders of Class A common stock are entitled to one vote for each share. As of June 30, 2024 and December 31, 2023, there were 0 shares of Class A common stock outstanding, excluding 2,200,303 and 14,699,019 shares of Class A common stock subject to possible redemption which are classified as temporary equity, respectively.

In association with the Company’s March Subscription Agreement with the Sponsor, the Company will issue 600,000 Class A common shares to the Capital Contribution Note Investor at the Closing of the Company’s initial Business Combination. The 600,000 Class A common shares issued to the Capital Contribution Note Investor will have no redemption rights associated with them as they will be issued at the closing of a Business Combination. In association with the Company’s August 2023 and May 2024 Non-Redemption Agreements, the Company will issue an aggregate of 2,326,496 shares of Class A Common Stock in association with the 2023 Promote Shares and an aggregate of 75,000 shares of Class A common stock for the first six months of extension, and an aggregate of 9,000 additional shares of Class A common stock for each additional month of extension, up to three additional months in association with the 2024 Promote Shares at the closing of the Company’s initial Business Combination. The Class A common stock issuable will have no redemption rights associated with them as they will be issued at the closing of a Business Combination.

Class B Common Stock — The Company is authorized to issue a total of 20,000,000 shares of Class B common stock at par value of $0.0001 each. Holders of the Class B common stock are entitled to one vote for each share. There were 7,002,438 shares of Class B common stock issued and outstanding as of June 30, 2024 and December 31, 2023. Pursuant to the August 2023 Non-Redemption Agreements discussed in Note 2, 2,326,496 shares are subject to forfeiture upon consummation of the Company’s initial Business Combination. Additionally, pursuant to the May 2024 Non-Redemption Agreements discussed in Note 2, the Company agreed to forfeit

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

an aggregate of 75,000 shares of Class B common stock for the first six months of extension, and an aggregate of 9,000 additional shares of Class B common stock for each additional month of extension, up to three additional months upon consummation of the Company’s initial Business Combination.

The shares of Class B common stock will automatically convert into shares of Class A common stock at the time of the initial Business Combination on a one-for-one basis, subject to adjustment. In the case that additional shares of Class A common stock, or equity-linked securities, are issued or deemed issued in excess of the amounts offered in the Initial Public Offering and related to the closing of the initial Business Combination, the ratio at which shares of Class B common stock shall convert into shares of Class A common stock will be adjusted (unless the holders of a majority of the outstanding shares of Class B common stock agree to waive such anti-dilution adjustment with respect to any such issuance or deemed issuance) so that the number of shares of Class A common stock issuable upon conversion of all shares of Class B common stock will equal, in the aggregate, on an as-converted basis, 20% of the sum of the total number of all shares of common stock outstanding upon the completion of the Initial Public Offering (not including the Class A common stock issuable upon exercise of the Private Placement Warrants) plus all shares of Class A common stock and equity-linked securities issued or deemed issued in connection with the initial Business Combination (net of the number of shares of Class A common stock redeemed in connection with the initial Business Combination), excluding any shares or equity-linked securities issued, or to be issued, to any seller in the initial Business Combination. In no event shall the Class B Common Stock convert into Class A Common Stock at a ratio that is less than one-for-one.

Holders of the Class A common stock and holders of the Class B common stock will vote together as a single class on all matters submitted to a vote of the Company’s stockholders, with each share of common stock entitling the holder to one vote.

Warrants — Each whole warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustment as discussed herein.

The warrants will expire at 5:00 p.m., New York City time on the warrant expiration date, which is five years after the completion of the initial Business Combination or earlier upon redemption or liquidation. On the exercise of any warrant, the warrant exercise price will be paid directly to the Company and not placed in the Trust Account.

The Company will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants is then effective and a current prospectus relating to those shares of Class A common stock is available. No warrant will be exercisable for cash or on a cashless basis, and the Company will not be obligated to issue any shares to holders seeking to exercise their warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such warrant will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In no event will the Company be required to net cash settle any warrant. In the event that a registration statement is not effective for the exercised warrants, the purchaser of a unit containing such warrant will have paid the full purchase price for the unit solely for the share of Class A common stock underlying such Unit.

The Company did not register the shares of Class A common stock issuable upon exercise of the warrants in connection with the IPO. However, the Company has agreed that as soon as practicable, but in no event later than 20 business days after the closing of the initial Business Combination, the Company will use its commercially reasonable efforts to file with the SEC, and within 60 business days following the initial Business Combination to have declared effective, a registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and to maintain a current prospectus relating to those shares of Class A common stock until the warrants expire or are redeemed; provided that, if the Class A common stock is at the time of any exercise of a warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, the Company may, at its option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event the Company so elects, the Company will not be required to file or maintain in effect a registration statement, but the Company will use its commercially reasonable efforts to register or qualify

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

the shares under applicable blue sky laws to the extent an exemption is not available.

Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00.

Once the warrants become exercisable, the Company may redeem the outstanding public warrants:

●	in whole and not in part;

●	at a price of $0.01 per warrant;

●	upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and

●

if, and only if, the last reported sale price of the Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders.

Redemption of warrants when the price per share of Class A common stock equals or exceeds $10.00.

Once the warrants become exercisable, the Company may redeem the outstanding public warrants:

●	in whole and not in part;

●

at a price of $0.10 per warrant provided that holders will be able to exercise their warrants prior to redemption and receive that number of shares of Class A common stock based on the redemption date and the “fair market value” of the Class A common stock (as defined below) except as otherwise described below;

●	upon a minimum of 30 days’ prior written notice of redemption

●

if, and only if, the last reported sale price of the Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrant holders; and

●	if, and only if, there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating thereto available throughout the 30-day period after written notice of redemption is given.

The “fair market value” of the Class A common stock shall mean the average last reported sale price of the Class A common stock for the 10 trading days ending on the third trading day prior to the date on which the notice of redemption is sent to the holders of warrants. This redemption feature differs from the typical warrant redemption features used in many other blank check offerings. In no event will the warrants be exercisable in connection with this redemption feature for more than 0.361 Class A common stock per warrant (subject to adjustment).

NOTE 6. CAPITAL CONTRIBUTION NOTE

On March 28, 2024, the Company entered into the March Subscription Agreement with the Sponsor and the Capital Contribution Note Investor, pursuant to which the Sponsor sought to raise $600,000 to provide working capital to the Company. The Company will request funds from the Sponsor for working capital purposes (“Drawdown Request”). Upon at least five (5) calendar days’ prior written notice, the Sponsor may request a drawdown in order to meet the Sponsor’s commitment to the SPAC under a Drawdown Request (“Capital Call”). In consideration of the March Subscription Agreement, the Company will issue 600,000 Class A common shares to the Capital Contribution Note Investor at the Closing. Any amounts funded by the Sponsor to the Company under a Drawdown Request shall not accrue interest and shall be promptly repaid by the Company to the Sponsor upon the closing of an initial Business Combination. Following receipt of such sums from the Company, and in any event within five (5) business days of the closing of an initial Business Combination, the Sponsor or the Company shall pay the Capital Contribution Note Investor an amount equal to Capital Calls funded under the March Subscription Agreement (the “Business Combination Payment”). The Company and Sponsor are jointly and severally obligated to make the Business Combination Payment to the Capital Contribution Note Investor. The Capital Contribution Note Investor may elect at the closing of an initial Business Combination to receive such Business Combination Payment in cash or Class A common

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

stock at a rate of one share of Class A common stock for each $10.00 of the Capital Calls funded under the March Subscription Agreement. If the Company liquidates without consummating a Business Combination, any amounts remaining in the Sponsor’s or the Company’s cash accounts (excluding any amounts in the Trust Account) after paying any outstanding third party invoices will be paid to the Capital Contribution Note Investor within ten (10) days of the liquidation.

In April and June 2024, the Company borrowed an aggregate of $600,000 under the Capital Contribution Note. The fair value of the Capital Contribution Note includes both the fair value of the 600,000 shares in consideration for the Capital Calls and the principal as of each reporting date. As such, the Capital Contribution Note was initially measured at $600,000 as of the issue date. For the three and six months ended June 30, 2024, the Company recognized an unrealized gain of $656,747 and $56,747, respectively, on the change in the fair value of the Capital Contribution Note in the statement of operations. As of June 30, 2024, the fair value of the Capital Contribution Note was $543,253 (see Note 7).

NOTE 7. FAIR VALUE MEASUREMENTS

The following table presents fair value information as of June 30, 2024 and December 31, 2023, for the Company’s assets and liabilities that are accounted for at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.


		June 30,		December 31,
Liabilities:	Level	2024		2023
Warrant Liability – Public Warrants	(a)	$	1,027,024	$	1,213,756
Warrant Liability – Private Placement Warrants	3	$	594,000	$	717,000
Capital Contribution Note	3	$	543,253	$	—

(a)	Level 2 at June 30, 2024 and Level 1 at December 31, 2023

As of June 30, 2024 and December 31, 2023, cash held in the Trust Account was held in an interest-bearing demand deposit account. Such cash in the Trust Account is presented on the condensed balance sheets at fair value.

The Company’s warrant liability for the Public Warrants is based on unadjusted quoted prices at the close of market. At June 30, 2024, there was insufficient trading volume for the Company’s Public Warrants to be classified as Level 1 and, as a result, were classified as Level 2. At December 31, 2023, the Company determined there was sufficient trading activity to classify its Public Warrants as Level 1.

At June 30, 2024 and December 31, 2023, the Company used a Monte Carlo simulation model to value the Private Placement Warrants using unobservable inputs. Management utilizes significant judgment to determine the values of these unobservable inputs. Significant deviations from these estimates and inputs could result in a material change in fair value. The key inputs used to determine the fair value of the Private Placement Warrants are classified within Level 3 of the fair value hierarchy.

The key inputs into the valuation models used to value the Private Placement Warrants were as follows:


Input	June 30, 2024			December 31, 2023
Common stock price	$	10.56		$	10.38
Risk-free interest rate		4.28	%		3.81	%
Expected term in years		5.68	years		5.43	years
Expected volatility		0.001	%		7.244	%
Exercise price	$	11.50		$	11.50
Public warrant price	$	0.11		$	0.13

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CONCORD ACQUISITION CORP II

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2024

(UNAUDITED)

To the extent that valuations are based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Because of the inherent uncertainty of valuations, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for investments categorized in Level 3.

The Capital Contribution Note is measured at fair value at inception and on a recurring basis, with changes in fair value presented in the condensed statements of operations. Valuation of the Capital Contribution Note was determined using a Probability Weighted Expected Return Method (“PWERM”) and classified as a Level 3 valuation. The PWERM is a multistep process in which value is estimated based on the probability -weighted present value of various future outcomes.

The following table provides a reconciliation of changes in fair value of the beginning and ending balances for our financial liabilities classified as Level 3 for the period ended June 30, 2024 and 2023:


	Capital Contribution		Private Placement
	Note		Warrants
Changes in fair value of financial liabilities measured with level 3:
December 31, 2023	$	—	$	717,000
Initial value of the Capital Contribution Note		600,000		—
Change in fair value		—		(116,000)
March 31, 2024	$	600,000	$	601,000
Excess of fair value of Capital Contribution Note over initial principal balance at issuance		565,079		—
Change in fair value		(621,826)		(7,000)
June 30, 2024	$	543,253	$	594,000

			Private Placement
			Warrants

December 31, 2022			$	625,000
Change in fair value				(241,000)
March 31, 2023				384,000
Change in fair value				(168,000)
June 30, 2023			$	216,000

NOTE 8. SUBSEQUENT EVENTS

The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the unaudited condensed financial statements were issued. Based upon this review, the Company did not identify any subsequent events that would have required adjustment or disclosure in the unaudited condensed financial statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

References in this report (the “Quarterly Report”) to “we,” “us” or the “Company” refer to Concord Acquisition Corp II. References to our “management” or our “management team” refer to our officers and directors, references to the “Sponsors” refer to Concord Sponsor Group II LLC and CA2 Co-Investment, LLC. The following discussion and analysis of the Company’s financial condition and results of operations should be read in conjunction with the condensed financial statements and the notes thereto contained elsewhere in this Quarterly Report.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that are not historical facts and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. All statements, other than statements of historical fact included in this Quarterly Report including, without limitation, statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” regarding the Company’s financial position, the business strategy, plans and objectives of management for future operations, and the impact of the ongoing military conflicts in the middle east region on the Company’s search for a Business Combination (as defined below), are forward-looking statements. Words such as “expect,” “believe,” “anticipate,” “intend,” “estimate,” “seek” and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect management’s current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q filed with the U.S. Securities and Exchange Commission (the “SEC”). The Company’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Overview

We are a blank check company incorporated on February 18, 2021, for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses or entities (a “Business Combination”). We intend to effectuate our initial business combination using cash from the proceeds of our offering and the sale of the private placement warrants, our shares, debt or a combination of cash, equity and debt.

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

Recent Developments

In August 2023, the Company and the Sponsor entered into Non-Redemption Agreements with a number of the Company’s stockholders in exchange for them agreeing not to redeem shares of the Company’s Class A common stock sold in the IPO (the “Non-Redeemed Shares”) in connection with the special meeting of stockholders called by the Company and held on August 29, 2023 (described below). In exchange for the foregoing commitments not to redeem such shares, the Company has agreed to issue, or cause to be issued, to such investors an aggregate of 2,326,496 shares of Class A Common Stock (the “2023 Promote Shares”) and the Sponsor has agreed to surrender and forfeit to the Company for no consideration, a number of shares of Class B common stock, par value $0.0001 per share, of the Company equal to the number of 2023 Promote Shares upon closing of the initial business combination.

On August 29, 2023, the Company’s stockholders approved at the special meeting of stockholders a proposal to amend the Company’s amended and restated certificate of incorporation (the “charter”) to extend the date by which the Company has to consummate a business combination from September 3, 2023 (the “Termination Date”) to June 3, 2024, (as discussed below) or such earlier date as may be determined by the board of directors of the Company (such later date, the “Extended Date”). In connection with the votes to approve the Charter Amendment, the holders of 13,310,731 shares of Class A common stock of the Company properly exercised their right to

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redeem their shares for cash at a redemption price of approximately $10.35 per share, for an aggregate redemption amount of $137,792,552, leaving $152,164,096 in the Trust Account immediately after the redemptions.

The underwriters were entitled to a deferred underwriters’ commission of 3.5% of the gross proceeds of the IPO, or $9,803,413 in the aggregate (including the commission related to the underwriters’ exercise of the over-allotment option) upon the completion of the Company’s initial Business Combination. In December 2023, one of the underwriters waived any right to receive the deferred underwriters’ commission and will therefore receive no additional underwriting commissions in connection with the closing of a Business Combination. As a result of the waived deferred underwriters’ commission during the three months ended December 31, 2023, the Company recognized $595,921 of income, $5,080,255 was recorded to accumulated deficit and the deferred underwriters’ commission was reduced by $5,676,176 in relation to the waiver of the deferred underwriters’ commission.

On March 28, 2024, we entered into a subscription agreement (the “March Subscription Agreement”) with the Sponsor and an investor (the “Capital Contribution Note Investor”), pursuant to which the Capital Contribution Note Investor has agreed to provide up to $600,000 to the Sponsor and, subsequently, the Sponsor would loan the funds to the Company as discussed in Note 6. As of June 30, 2024, the Company received $600,000 under the Capital Contribution Note.

In consideration of the March Subscription Agreement, the Company will issue 600,000 Class A common shares to the Capital Contribution Note Investor upon the closing of our initial Business Combination. Amounts funded by the Sponsor to the Company under a Drawdown Request shall not accrue interest and shall be promptly repaid by the Company to the Sponsor upon the closing of an initial Business Combination. Following receipt of such sums from the Company, and in any event within five (5) business days of the closing of an initial Business Combination, the Sponsor or the Company shall pay the Capital Contribution Note Investor an amount equal to Capital Calls funded under the March Subscription Agreement (the “Business Combination Payment”). The Company and Sponsor are jointly and severally obligated to make the Business Combination Payment to the Capital Contribution Note Investor. The Capital Contribution Note Investor may elect at the closing of an initial Business Combination to receive such Business Combination Payment in cash or Class A common stock at a rate of one share of Class A common stock for each $10.00 of the Capital Calls funded under the March Subscription Agreement. If the Company liquidates without consummating a Business Combination, any amounts remaining in the Sponsor’s or the Company’s cash accounts (excluding any amounts in the Trust Account) after paying any outstanding third-party invoices will be paid to the Capital Contribution Note Investor within ten (10) days of the liquidation.

On May 20, 2024, we announced that we have entered into a non-binding letter of intent for a Business Combination with an industry-leading marketplace and SaaS platform in the fintech, events management, AI, and consumer engagement space (the “Target”). The completion of the proposed Business Combination is subject to, among other things, the completion of due diligence, the negotiation of definitive agreements for the Business Combination (the “Definitive Agreements”), satisfaction of the conditions negotiated therein, approval of the transaction by the board and stockholders of both the Company and Target, as well as regulatory approvals and other customary conditions. There can be no assurance that Definitive Agreements will be entered into or that the Business Combination will be consummated on the terms or timeframe currently contemplated, or at all.

On May 23, 2024, we announced the transfer of the listing of our Class A common stock, units and warrants from the New York Stock Exchange to NYSE American LLC (“NYSE American”). Our Class A common stock, units and warrants began trading on NYSE American on May 29, 2024 under the same ticker symbols.

In May 2024, we and the Sponsor entered into Non-Redemption Agreements with a number of our stockholders (“2024 NRA Investors”) in exchange for them agreeing not to redeem shares of our Class A common stock sold in the IPO (the “2024 Non-Redeemed Shares”) in connection with the special meeting of stockholders called by the Company and held on May 31, 2024 (described below). In exchange for the foregoing commitment to us to not redeem the 2024 Non-Redeemed Shares, we agreed to issue, or cause to be issued, to such stockholders, an aggregate of 75,000 shares of Class A common stock for the first six months of extension, and an aggregate of 9,000 additional shares of Class A common stock for each additional month of extension, up to three additional months (such shares, the “2024 Promote Shares”), upon closing of the initial Business Combination, and the Sponsor agreed to surrender and forfeit, for no consideration, a number of shares of Class B common stock, par value $0.0001 per share, of the Company equal to the number of 2024 Promote Shares upon closing of the initial Business Combination.

As the 2023 Promote Shares and 2024 Promote Shares will be issued only upon closing of an initial Business Combination, such shares will not be subject to redemption.

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On May 31, 2024, our stockholders approved at the special meeting of stockholders a proposal to amend our charter to extend the date by which we have to consummate a Business Combination from June 3, 2024 to March 3, 2025, or such earlier date as may be determined by the board of directors of the Company (such later date, the “Second Extended Date”). In connection with the votes to approve the Second Charter Amendment, the holders of an additional 12,498,716 shares of Class A common stock of the Company properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.61 per share, for an aggregate redemption amount of $132,667,234, leaving $23,355,048 in the Trust Account immediately after the redemptions.

Results of Operations

We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities and those necessary for our initial public offering (“IPO”) and activities related to seeking and consummating a business combination with an acquisition target. We do not expect to generate any operating revenues until after completion of our initial business combination. Until such time that a business combination occurs, we will generate non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the Initial Public Offering, and non-operating income or expense from the changes in the fair value of warrant liability and Capital Contribution Note. There has been no significant change in our financial or trading position and no material adverse change has occurred since the date of our audited financial statements. Until the completion of our initial business combination, we expect to incur increased expenses as a result of being a public company (for legal, financial reporting, accounting and auditing compliance), as well as for due diligence expenses.

For the three months ended June 30, 2024, we had net income of $1,106,895, which consisted of income from cash held in the Trust Account of $1,248,068, excess of fair value of Capital Contribution Note over proceeds at issuance of $34,921, change in fair value of Capital Contribution Note of $621,826 and change in the fair value of the warrant liability of $19,138, partially offset by operating costs of $565,464 and income taxes of $251,594.

For the three months ended June 30, 2023, we had net income of $2,832,037, which consisted of change in the fair value of the warrant liability of $448,098, other income of $2,453 and income from investments held in the Trust Account of $3,405,365, partially offset by operating costs of $318,679 and income taxes of $705,200.

For the six months ended June 30, 2024, we had net income of $1,796,413, which consisted of other income of $34, change in the fair value of the warrant liability of $309,732, income from cash held in the Trust Account of $2,936,231 and change fair value of Capital Contribution Note of $621,826, partially offset by operating costs of $910,715, deficit of fair value of Capital Contribution Note over proceeds at issuance of $565,079 and income taxes of $595,616.

For the six months ended June 30, 2023, we had net income of $5,592,046, which consisted of change in the fair value of the warrant liability of $1,115,780, other income of $3,573 and income from investments held in the Trust Account of $6,412,840, partially offset by operating costs of $613,653 and income taxes of $1,326,494.

Liquidity and Capital Resources

As of June 30, 2024, we had available to us $525,404 of cash held outside the Trust Account. We will use cash primarily to identify and evaluate target businesses, perform business due diligence on prospective target businesses, travel to and from the offices or similar locations of prospective target businesses or their representatives or owners, review corporate documents and material agreements of prospective target businesses, structure, negotiate and complete a business combination, to pay our administrative fees, and to pay taxes to the extent the interest earned on the Trust Account is not sufficient or available to pay our taxes.

Additionally, the Company has incurred an excise tax liability of $2,687,721, of which approximately $1,360,000 is payable in October 2024. The Company currently has insufficient funds to pay this liability, absent any additional financing.

On March 28, 2024, the Company entered into the March Subscription Agreement with the Sponsor and the Capital Contribution Note Investor, pursuant to which the Capital Contribution Note Investor has agreed to provide $600,000 to the Company under the Capital Contribution Note as discussed in Note 6. As of June 30, 2024, the Company has borrowed $600,000 under such note.

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On May 31, 2024, the Company issued an unsecured promissory note (the “Note”) in the principal amount of up to $650,000 to the Sponsor, a significant stockholder of the Company, which may be drawn down from time to time prior to the Maturity Date (defined below) upon request by the Company. The Note amended, replaced and superseded in its entirety that certain promissory note, dated May 3, 2022, made by the Company in favor of the Sponsor in the principal amount of up to $350,000 (the “Original Note”), and any unpaid principal balance of the indebtedness evidenced by the Original Note has been merged into and evidenced by the Note. The Note does not bear interest and the principal balance will be payable on the date on which the Company consummates its initial business combination (such date, the “Maturity Date”). The Note is subject to customary events of default, the occurrence of certain of which automatically triggers the unpaid principal balance of the Note and all other sums payable with regard to the Note becoming immediately due and payable. The Company has not borrowed any amount as of June 30, 2024 and December 31, 2023, and through the date of filing of this Form 10-Q.

If the estimate of the costs of identifying a target business, undertaking in-depth due diligence and negotiating a Business Combination are less than the actual amount necessary to do so, the Company may have insufficient funds available to operate our business prior to a Business Combination. Moreover, the Company may need to obtain additional financing either to complete a Business Combination or because the Company becomes obligated to redeem a significant number of public shares upon consummation of a Business Combination, in which case the Company may issue additional securities or incur debt in connection with such Business Combination. Subject to compliance with applicable securities laws, the Company would only complete such financing simultaneously with the completion of a Business Combination. If the Company is unable to complete a Business Combination because it does not have sufficient funds available, the Company will be forced to cease operations and liquidate the Trust Account. In addition, following a Business Combination, if cash on hand is insufficient, the Company may need to obtain additional financing in order to meet its obligations.

The Company has until March 3, 2025, or during any Extension Period, to consummate a Business Combination. If a Business Combination is not consummated by this date, there will be a mandatory liquidation and subsequent dissolution of the Company. Although the Company intends to consummate a Business Combination on or before March 3, 2025, or during any Extension Period, it is uncertain whether the Company will be able to consummate a Business Combination by this time. In connection with the Company’s assessment of going concern considerations in accordance with ASC Subtopic 205-40, “Presentation of Financial Statements – Going Concern”, Management has determined that the mandatory liquidation, should a Business Combination not occur and potential subsequent dissolution, as well as the potential for the Company to have insufficient funds available to operate our business prior to a Business Combination, raise substantial doubt about the Company’s ability to continue as a going concern. No adjustments have been made to the carrying amounts of assets or liabilities should the Company be required to liquidate after March 3, 2025, or during any Extension Period.

Off-Balance Sheet Financing Arrangements

We have no obligations, assets or liabilities, which would be considered off-balance sheet arrangements as of June 30, 2024. We do not participate in transactions that create relationships with unconsolidated entities or financial partnerships, often referred to as variable interest entities, which would have been established for the purpose of facilitating off-balance sheet arrangements. We have not entered into any off-balance sheet financing arrangements, established any special purpose entities, guaranteed any debt or commitments of other entities, or purchased any non-financial assets.

Contractual Obligations

We do not have any long-term debt, capital lease obligations, operating lease obligations or long-term liabilities, other than discussed below, that affects the liquidity or capital resources of the Company.

We have an agreement to pay an affiliate of the Sponsor a monthly fee of $20,000 for office space, administrative and support services.

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combination (such date, the “Maturity Date”). The Company has not borrowed any amount as of June 30, 2024 and December 31, 2023, and through the date of filing of this Form 10-Q.

Our underwriters are entitled to a deferred underwriting commission of $4,127,237 of the gross proceeds of the IPO held in the Trust Account upon the completion of the Company’s initial Business Combination subject to the terms of the underwriting agreement.

On August 21, 2023, we engaged a capital markets advisor in connection with seeking an extension for completing a Business Combination, a possible acquisition of a third party by merger, consolidation, acquisition of stock or assets or other business combination, and as a placement agent in connection with a private placement of debt, equity, equity-linked or convertible securities. We agreed to pay the capital markets advisor a transaction fee in connection with the services provided, payable upon and subject to our consummation of an initial business combination (“Capital Markets Advisor Fee”). The fee consists of a fixed and determinable portion and a variable portion contingent upon certain future events expected to take place upon completion of a Business Combination. As of June 30, 2024 and December 31, 2023, $1,000,000 was accrued for the fee as the amount was fixed and determinable. These costs may be paid using the proceeds of the cash available once a Business Combination is complete.

The Company classified the Capital Contribution Note as a liability and elected the fair value option, and records changes in fair value at each reporting period in the statement of operations. The fair value of the Capital Contribution Note will include both the fair value of the 600,000 shares in consideration for the Capital Calls and the principal as of each reporting date. As of June 30, 2024, the Company has borrowed $600,000 under such note and no additional borrowings are available under this note.

Critical Accounting Estimates

We prepare our unaudited condensed financial statements in accordance with accounting principles generally accepted in the United States of America. The preparation of unaudited condensed financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from the estimates made by our management.

There have been no material changes to our critical estimates from those disclosed in our financial statements and the related notes and other financial information included in our Form 10-K for the year ended December 31, 2023, filed with the SEC on March 1, 2024, other than discussed below.

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Capital Contribution Note

We elected to account for the Capital Contribution Note entered into with the Capital Contribution Note Investor and the Sponsor pursuant to the fair value option under ASC 825 wherein the financial instrument is initially measured at its issue-date estimated fair value and subsequently remeasured at estimated fair value on a recurring basis at each reporting period date. Differences between the face value of the Capital Contribution Note and fair value at issuance are recognized as either an expense in the statement of operations (if issued at a premium) or as a capital contribution (if issued at a discount). Any material changes in the estimated fair value of the Capital Contribution Note are recognized as non-cash gains or losses in the condensed statements of operations. The fair value of the Capital Contribution Note will include both the fair value of the 600,000 shares in consideration for the Capital Calls as described in Note 6 and the principal as of each reporting date. The fair value of our Capital Contribution Note requires significate estimates by management. Deviations from these estimates could result in a significate difference to our financial results.

JOBS Act

On April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We will qualify as an “emerging growth company” and under the JOBS Act will be allowed to comply with new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We are electing to delay the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

Additionally, we are in the process of evaluating the benefits of relying on the other reduced reporting requirements provided by the JOBS Act. Subject to certain conditions set forth in the JOBS Act, if, as an “emerging growth company”, we choose to rely on such exemptions we may not be required to, among other things: (1) provide an auditor’s attestation report on our system of internal controls over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act; (2) provide all of the compensation disclosure that may be required of non-emerging growth public companies under the Dodd-Frank Wall Street Reform and Consumer Protection Act; (3) comply with any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (auditor discussion and analysis); and (4) disclose certain executive compensation-related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation. These exemptions will apply for a period of five years following the completion of the IPO or until we are no longer an “emerging growth company,” whichever is earlier.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this item.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial and accounting officer or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

We do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls and procedures are met. Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits must be considered relative to their costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation of disclosure controls and procedures can provide absolute assurance that we have detected all our control deficiencies and instances of fraud, if any. The design of disclosure controls and procedures also is based partly on certain

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assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2024. Based upon their evaluation, and due to a material weakness in our internal control over financial reporting over the accounting for complex financial instruments, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were not effective as of June 30, 2024.

Changes in Internal Control over Financial Reporting

There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended June 30, 2024, covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

The Company has made changes in its internal control over financial reporting to enhance our processes to identify and appropriately apply applicable accounting requirements to better evaluate and understand the nuances of the complex accounting standards that apply to our financial statements, including providing enhanced access to accounting literature, research materials and documents and increased communication among our personnel and third-party professionals with whom we consult regarding complex accounting applications. The Company can offer no assurance that these changes will ultimately have the intended effects.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

None.

Item 1A. Risk Factors.

Factors that could cause our actual results to differ materially from those in this Quarterly Report are any of the risks described in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 1, 2024 (the “Annual Report”). Any of these factors could result in a significant or material adverse effect on our results of operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

On September 3, 2021, the Company completed its IPO of 25,000,000 Units, generating gross proceeds of $250,000,000. On September 28, 2021, the Underwriters partially exercised their option to purchase additional Units, resulting in the issuance of an additional 3,009,750 Units (the “Option Units”), generating additional proceeds of $30,097,500.

On September 3, 2021, simultaneously with the consummation of the IPO, the Company completed a private placement of an aggregate of 5,000,000 warrants (the “Private Placement Warrants”) to the Sponsors and two anchor investors at a price of $1.50 per Private Placement Warrant, generating total gross proceeds of $7,500,000 (the “Private Placement”). On September 28, 2021, in connection with the sale of Option Units, the Company consummated a private sale of an additional 401,300 Private Placement Warrants to the Sponsors (the “Additional Private Placement Warrants”) at a price of $1.50 per Additional Private Placement Warrant, generating gross proceeds of $601,950.

For a description of the use of the proceeds generated in our Initial Public Offering, see Part I, Item 2 of this Quarterly Report.

On August 29, 2023, the Company’s stockholders approved at the special meeting of stockholders a proposal to amend the Company’s charter to extend the date by which the Company has to consummate a business combination from the Termination Date to the Extended Date. In connection with the votes to approve the Charter Amendment, the holders of 13,310,731 shares of Class A common stock of the Company properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.35 per share, for an aggregate redemption amount of $137,792,552, leaving $152,164,096 in the Trust Account immediately after the redemptions.

On May 31, 2024, the Company’s stockholders approved at the special meeting of stockholders a proposal to amend the Company’s charter to extend the date by which the Company has to consummate a business combination from the First Extended Date to the Second Extended Date. In connection with the votes to approve the Second Charter Amendment, the holders of an additional 12,498,716 shares of Class A common stock of the Company properly exercised their right to redeem their shares for cash at a redemption price of approximately $10.61 per share, for an aggregate redemption amount of $132,667,234, leaving $23,355,048 in the Trust Account immediately after the redemptions.

Item 3. Defaults Upon Senior Securities.

None.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

None.

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Item 6. Exhibits.

Exhibit Number		Description
3.1⁽¹⁾		Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Concord Acquisition Corp II, dated August 29, 2023.

10.1⁽²⁾		Form of Non-Redemption Agreement and Assignment of Economic Interest.

31.1		Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

31.2		Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes Oxley Act of 2002.

32.1*		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

32.2*		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

101.INS		Inline XBRL Instance Document.

101.SCH		Inline XBRL Taxonomy Extension Schema Document.

101.CAL		Inline XBRL Taxonomy Extension Calculation Link base Document.

101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*These certifications are furnished to the SEC pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

(1)Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on September 5, 2023.

(2)	Incorporated by reference to an exhibit to the Registrant’s Current Report on Form 8-K, filed with the Securities and Exchange Commission on August 23, 2023.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on this 7th day of August 2024.

	CONCORD ACQUISITION CORP II

	By:	/s/ Jeff Tuder
	Name:	Jeff Tuder
	Title:	Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/ Michele Cito
	Name:	Michele Cito
	Title:	Chief Financial Officer
		(Principal Financial and Accounting Officer)

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeff Tuder, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Concord Acquisition Corp II;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the registrant, is made known to us by others within those entities, particularly during the period in which this report is being prepared; and

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2024

	/s/ Jeff Tuder
	Jeff Tuder
	Chief Executive Officer
	(Principal Executive Officer)

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO RULE 13A-14(A) UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Michele Cito, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Concord Acquisition Corp II;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 7, 2024

	/s/ Michele Cito
	Michele Cito
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Concord Acquisition Corp II (the “Company”) on Form 10-Q for the three months ended June 30, 2024, as filed with the Securities and Exchange Commission (the “Report”), I, Jeff Tuder, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

To my knowledge, the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the period covered by the Report.

Dated: August 7, 2024

	/s/ Jeff Tuder
	Jeff Tuder
	Chief Executive Officer
	(Principal Executive Officer)

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Concord Acquisition Corp II (the “Company”) on Form 10-Q for the three months ended June 30, 2024, as filed with the Securities and Exchange Commission (the “Report”), I, Michele Cito, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as added by §906 of the Sarbanes-Oxley Act of 2002, that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

Dated: August 7, 2024

	/s/ Michele Cito
	Michele Cito
	Chief Financial Officer
	(Principal Financial and Accounting Officer)

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2024	Aug. 07, 2024
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity Registrant Name	Concord Acquisition Corp II
Entity Incorporation, State or Country Code	DE
Entity File Number	001-40773
Entity Tax Identification Number	86-2171101
Entity Address, Address Line One	477 Madison Avenue
Entity Address, City or Town	New York
Entity Address State Or Province	NY
Entity Address, Postal Zip Code	10022
City Area Code	212
Local Phone Number	883-4330
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	true
Entity Central Index Key	0001851959
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Amendment Flag	false
Units, each consisting of one share of Class A common stock and one-third of one redeemable warrant
Document and Entity Information
Title of 12(b) Security	Units, each consisting of one share of Class A common stock and one-third of one redeemable warrant
Trading Symbol	CNDA.U
Security Exchange Name	NYSEAMER
Class A common stock, par value $0.0001 per share
Document and Entity Information
Title of 12(b) Security	Class A common stock, par value $0.0001 per share
Trading Symbol	CNDA
Security Exchange Name	NYSEAMER
Entity Common Stock, Shares Outstanding		2,200,303
Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50
Document and Entity Information
Title of 12(b) Security	Redeemable warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50
Trading Symbol	CNDA.WS
Security Exchange Name	NYSEAMER
Class B common stock
Document and Entity Information
Entity Common Stock, Shares Outstanding		7,002,438

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Assets
Cash	$ 525,404	$ 363,225
Income tax receivable		3,211
Prepaid expenses	124,749	10,680
Total Current Assets	650,153	377,116
Cash held in Trust Account	23,447,845	153,928,848
Total Assets	24,097,998	154,305,964
Liabilities and Stockholders' Deficit
Due to related party	$ 122,905	$ 750
Other Liability, Current, Related Party, Type [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Accrued income taxes	$ 42,405
Accounts payable and accrued expenses	1,425,388	$ 1,160,614
Excise tax payable	2,687,721	1,360,357
Total Current Liabilities	4,278,419	2,521,721
Warrant liability	1,621,024	1,930,756
Capital Contribution Note, at fair value	543,253
Deferred underwriters' commission	4,127,237	4,127,237
Total Liabilities	10,569,933	8,579,714
Commitments and Contingencies
Stockholders' Deficit:
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; 0 shares issued and outstanding
Accumulated deficit	(9,978,026)	(8,206,460)
Total Stockholders' Deficit	(9,977,326)	(8,205,760)
Total Liabilities and Stockholders' Deficit	24,097,998	154,305,964
Common stock subject to possible redemption
Liabilities and Stockholders' Deficit
Common stock subject to possible redemption, 2,200,303 and 14,699,019 shares at redemption value of $10.68 and $10.47 at June 30, 2024 and December 31, 2023, respectively	23,505,391	153,932,010
Class B common stock
Stockholders' Deficit:
Common stock	$ 700	$ 700

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2024	May 31, 2024	Mar. 31, 2024	Dec. 31, 2023	Aug. 31, 2023	Aug. 29, 2023	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022
Preferred stock, par value (per share)	$ 0.0001			$ 0.0001
Preferred stock, shares authorized	1,000,000			1,000,000
Preferred stock, shares issued	0			0
Preferred stock, shares outstanding	0			0
Class A common stock
Common stock, par value (per share)	$ 0.0001			$ 0.0001
Common stock, shares authorized	200,000,000			200,000,000
Common stock subject to possible redemption
Common stock redemption shares	2,200,303		14,699,019	14,699,019			28,009,750	28,009,750	28,009,750
Common stock redemption value per share	$ 10.68	$ 10.61		$ 10.47		$ 10.35
Common stock not subject to possible redemption
Common stock, shares issued	0			0
Common stock, shares outstanding	0			0
Class B common stock
Common stock, par value (per share)	$ 0.0001	$ 0.0001		$ 0.0001	$ 0.0001	$ 0.0001
Common stock, shares authorized	20,000,000			20,000,000
Common stock, shares issued	7,002,438			7,002,438
Common stock, shares outstanding	7,002,438			7,002,438

CONDENSED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
CONDENSED STATEMENTS OF OPERATIONS - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Operating costs	$ 565,464	$ 318,679	$ 910,715	$ 613,653
Loss from operations	(565,464)	(318,679)	(910,715)	(613,653)
Other income:
Other income		2,453	34	3,573
Income from cash and investments held in Trust Account	1,248,068	3,405,365	2,936,231	6,412,840
Excess of fair value of Capital Contribution Note over initial principal balance at issuance	34,921		(565,079)
Change in fair value of Capital Contribution Note	621,826		621,826
Change in fair value of warrant liability	19,138	448,098	309,732	1,115,780
Total other income	1,923,953	3,855,916	3,302,744	7,532,193
Income before provision for income taxes	1,358,489	3,537,237	2,392,029	6,918,540
Provision for income taxes	(251,594)	(705,200)	(595,616)	(1,326,494)
Net income	$ 1,106,895	$ 2,832,037	$ 1,796,413	$ 5,592,046
Class A common stock subject to possible redemption
Other income:
Basic, weighted average shares outstanding	10,853,260	28,009,750	12,776,140	28,009,750
Diluted, weighted average shares outstanding	10,853,260	28,009,750	12,776,140	28,009,750
Basic net income per share	$ 0.06	$ 0.08	$ 0.09	$ 0.16
Diluted net income per share	$ 0.06	$ 0.08	$ 0.09	$ 0.16
Class B common stock
Other income:
Basic, weighted average shares outstanding	7,002,438	7,002,438	7,002,438	7,002,438
Diluted, weighted average shares outstanding	7,002,438	7,002,438	7,002,438	7,002,438
Basic net income per share	$ 0.06	$ 0.08	$ 0.09	$ 0.16
Diluted net income per share	$ 0.06	$ 0.08	$ 0.09	$ 0.16

CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT - USD ($)	Class B common stock Common Stock	Additional Paid-in Capital	Accumulated Deficit	Total
Balance at the beginning at Dec. 31, 2022	$ 700		$ (10,195,060)	$ (10,194,360)
Balance at the beginning (in shares) at Dec. 31, 2022	7,002,438
Increase (Decrease) in stockholder's deficit
Increase in redemption value of shares subject to possible redemption			(2,336,130)	(2,336,130)
Net income			2,760,009	2,760,009
Balance at the end at Mar. 31, 2023	$ 700		(9,771,181)	(9,770,481)
Balance at the end (in shares) at Mar. 31, 2023	7,002,438
Balance at the beginning at Dec. 31, 2022	$ 700		(10,195,060)	(10,194,360)
Balance at the beginning (in shares) at Dec. 31, 2022	7,002,438
Increase (Decrease) in stockholder's deficit
Net income				5,592,046
Balance at the end at Jun. 30, 2023	$ 700		(9,589,309)	(9,588,609)
Balance at the end (in shares) at Jun. 30, 2023	7,002,438
Balance at the beginning at Mar. 31, 2023	$ 700		(9,771,181)	(9,770,481)
Balance at the beginning (in shares) at Mar. 31, 2023	7,002,438
Increase (Decrease) in stockholder's deficit
Increase in redemption value of shares subject to possible redemption			(2,650,165)	(2,650,165)
Net income			2,832,037	2,832,037
Balance at the end at Jun. 30, 2023	$ 700		(9,589,309)	(9,588,609)
Balance at the end (in shares) at Jun. 30, 2023	7,002,438
Balance at the beginning at Dec. 31, 2023	$ 700		(8,206,460)	(8,205,760)
Balance at the beginning (in shares) at Dec. 31, 2023	7,002,438
Increase (Decrease) in stockholder's deficit
Increase in redemption value of shares subject to possible redemption			(1,294,142)	(1,294,142)
Net income			689,518	689,518
Balance at the end at Mar. 31, 2024	$ 700		(8,811,084)	(8,810,384)
Balance at the end (in shares) at Mar. 31, 2024	7,002,438
Balance at the beginning at Dec. 31, 2023	$ 700		(8,206,460)	$ (8,205,760)
Balance at the beginning (in shares) at Dec. 31, 2023	7,002,438
Increase (Decrease) in stockholder's deficit
Increase in redemption value of shares subject to possible redemption (in shares)				600,000
Net income				$ 1,796,413
Balance at the end at Jun. 30, 2024	$ 700		(9,978,026)	(9,977,326)
Balance at the end (in shares) at Jun. 30, 2024	7,002,438
Balance at the beginning at Mar. 31, 2024	$ 700		(8,811,084)	(8,810,384)
Balance at the beginning (in shares) at Mar. 31, 2024	7,002,438
Increase (Decrease) in stockholder's deficit
Contribution - non-redemption agreements		$ 90,353		90,353
Fair value of shareholder non-redemption agreements		$ (90,353)		(90,353)
Excise tax payable attributable to redemption of common stock			(1,327,364)	(1,327,364)
Increase in redemption value of shares subject to possible redemption			(946,473)	(946,473)
Net income			1,106,895	1,106,895
Balance at the end at Jun. 30, 2024	$ 700		$ (9,978,026)	$ (9,977,326)
Balance at the end (in shares) at Jun. 30, 2024	7,002,438

CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended		6 Months Ended
CONDENSED STATEMENTS OF CASH FLOWS - USD ($)	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net income			$ 1,796,413	$ 5,592,046
Adjustments to reconcile net income to net cash used in operating activities:
Income from cash and investments held in Trust Account	$ (1,248,068)	$ (3,405,365)	(2,936,231)	(6,412,840)
Excess of fair value of Capital Contribution Note over initial principal balance at issuance	(34,921)		565,079
Change in fair value of Capital Contribution Note	(621,826)		(621,826)
Change in fair value of warrant liability	(19,138)	(448,098)	(309,732)	(1,115,780)
Changes in operating assets and liabilities:
Prepaid expenses			(114,069)	199,698
Due to related party			122,155	(8,365)
Accrued income taxes			45,616	(313,564)
Accounts payable and accrued expenses			264,774	(7,631)
Net cash used in operating activities			(1,187,821)	(2,066,436)
Cash Flows from Investing Activities:
Amounts withdrawn from Trust Account to pay taxes			750,000	1,781,042
Cash withdrawn from Trust Account in connection with redemptions			132,667,234
Net cash provided by investing activities			133,417,234	1,781,042
Cash flows from financing activities:
Redemption of Common Stock			(132,667,234)
Proceeds from Capital Contribution Note			600,000
Net cash used in financing activities			(132,067,234)
Net change in cash			162,179	(285,394)
Cash, beginning of the period			363,225	1,081,413
Cash, end of the period	$ 525,404	$ 796,019	525,404	796,019
Non-cash financing transactions:
Increase in redemption value of shares subject to possible redemption			2,240,615	$ 4,986,295
Increase in excise tax payable			$ 1,327,364

ORGANIZATION, BUSINESS OPERATIONS AND LIQUIDITY

6 Months Ended

Jun. 30, 2024

ORGANIZATION, BUSINESS OPERATIONS AND LIQUIDITY

ORGANIZATION, BUSINESS OPERATIONS AND LIQUIDITY

NOTE 1 — ORGANIZATION, BUSINESS OPERATIONS AND LIQUIDITY

Organization and General

As the 2023 Promote Shares and 2024 Promote Shares will be issued only upon closing of an initial Business Combination, such shares will not be subject to redemption.

Founder Shares

Founder Shares refers to the Class B common stock (the “Founder Shares”) acquired by the Sponsor, officers and board of directors prior to the Company’s IPO.

Initial Business Combination

Liquidity and Going Concern Consideration

Risks and Uncertainties

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Emerging Growth Company

Use of Estimates

Cash and Cash Equivalents

Cash Held in Trust Account

Concentration of Credit Risk

Offering Costs

Deferred Underwriters’ Commission

Common Stock Subject to Possible Redemption

For the three and six months ended June 30, 2024 and 2023, the changes in Class A common stock subject to possible redemption is as follows:


	Shares	Amount
January 1, 2023	28,009,750	$	283,033,156
Plus:
Increase in redemption value of shares subject to possible redemption	—		2,336,130
March 31, 2023	28,009,750		285,369,286
Plus:
Increase in redemption value of shares subject to possible redemption	—		2,650,165
June 30, 2023	28,009,750	$	288,019,451

January 1, 2024	14,699,019	$	153,932,010
Plus:
Increase in redemption value of shares subject to possible redemption	—		1,294,142
March 31, 2024	14,699,019	$	155,226,152
Less:
Redemptions	(12,498,716)		(132,667,234)
Plus:
Increase in redemption value of shares subject to possible redemption	—		946,473
June 30, 2024	2,200,303	$	23,505,391

Fair Value of Financial Instruments

Fair Value Measurements

●	Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●	Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

●

Derivative Financial Instruments

Stock-Based Compensation

Capital Contribution Note

Warrant Liability

Non-Redemption Agreements

Income Taxes

The Company has identified the United States as its only “major” tax jurisdiction.

Net Income Per Common Share

For the three and six months ended June 30, 2024 and 2023, basic and diluted net income per common share is as follows:


	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2024				2023				2024				2023
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	672,806	$	434,089	$	2,265,630	$	566,407	$	1,160,408	$	636,005	$	4,473,637	$	1,118,409

Denominator
Weighted-average shares outstanding		10,853,260		7,002,438		28,009,750		7,002,438		12,776,140		7,002,438		28,009,750		7,002,438
Basic and diluted net income per share	$	0.06	$	0.06	$	0.08	$	0.08	$	0.09	$	0.09	$	0.16	$	0.16

Recent Accounting Pronouncements

RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2024

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 3. RELATED PARTY TRANSACTIONS

Founder Shares

The Company’s initial stockholders, officers and directors have agreed not to transfer, assign or sell, except to permitted transferees, any Founder Shares held by them until the earlier to occur of: (1) one year after the completion of the initial Business Combination; and (2) subsequent to the initial Business Combination, (x) the date on which the Company completes a liquidation, merger, stock exchange, reorganization or other similar transaction that results in all of the public stockholders having the right to exchange their shares of common stock for cash, securities or other property or (y) if the last reported sale price of the Class A common stock equals or exceeds $12.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial Business Combination. Any permitted transferees would be subject to the same restrictions and other agreements of the initial stockholders with respect to any Founder Shares (the “Lock-up”).

Promissory Note — Related Party

Related Party Loans

Administrative Service Fee

Due to Related Party

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2024

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 4. COMMITMENTS AND CONTINGENCIES

Registration Rights

Capital Markets Advisor Agreement

Expenses Contingent on the Closing of a Business Combination

Deferred Underwriters’ Commission

STOCKHOLDERS' DEFICIT

6 Months Ended

Jun. 30, 2024

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT

NOTE 5. STOCKHOLDERS’ DEFICIT

Warrants — Each whole warrant entitles the holder to purchase one share of the Company’s Class A common stock at a price of $11.50 per share, subject to adjustment as discussed herein.

the shares under applicable blue sky laws to the extent an exemption is not available.

Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00.

Once the warrants become exercisable, the Company may redeem the outstanding public warrants:

●	in whole and not in part;

●	at a price of $0.01 per warrant;

●	upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and

●

Redemption of warrants when the price per share of Class A common stock equals or exceeds $10.00.

Once the warrants become exercisable, the Company may redeem the outstanding public warrants:

●	in whole and not in part;

●

●	upon a minimum of 30 days’ prior written notice of redemption

●

●	if, and only if, there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating thereto available throughout the 30-day period after written notice of redemption is given.

CAPITAL CONTRIBUTION NOTE

6 Months Ended

Jun. 30, 2024

CAPITAL CONTRIBUTION NOTE

CAPITAL CONTRIBUTION NOTE

NOTE 6. CAPITAL CONTRIBUTION NOTE

FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2024

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 7. FAIR VALUE MEASUREMENTS


		June 30,		December 31,
Liabilities:	Level	2024		2023
Warrant Liability – Public Warrants	(a)	$	1,027,024	$	1,213,756
Warrant Liability – Private Placement Warrants	3	$	594,000	$	717,000
Capital Contribution Note	3	$	543,253	$	—

(a)	Level 2 at June 30, 2024 and Level 1 at December 31, 2023

The key inputs into the valuation models used to value the Private Placement Warrants were as follows:


Input	June 30, 2024			December 31, 2023
Common stock price	$	10.56		$	10.38
Risk-free interest rate		4.28	%		3.81	%
Expected term in years		5.68	years		5.43	years
Expected volatility		0.001	%		7.244	%
Exercise price	$	11.50		$	11.50
Public warrant price	$	0.11		$	0.13


	Capital Contribution		Private Placement
	Note		Warrants
Changes in fair value of financial liabilities measured with level 3:
December 31, 2023	$	—	$	717,000
Initial value of the Capital Contribution Note		600,000		—
Change in fair value		—		(116,000)
March 31, 2024	$	600,000	$	601,000
Excess of fair value of Capital Contribution Note over initial principal balance at issuance		565,079		—
Change in fair value		(621,826)		(7,000)
June 30, 2024	$	543,253	$	594,000

			Private Placement
			Warrants

December 31, 2022			$	625,000
Change in fair value				(241,000)
March 31, 2023				384,000
Change in fair value				(168,000)
June 30, 2023			$	216,000

SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2024

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 8. SUBSEQUENT EVENTS

Pay vs Performance Disclosure - USD ($)	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($)	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 1,106,895	$ 689,518	$ 2,832,037	$ 2,760,009	$ 1,796,413	$ 5,592,046

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Emerging Growth Company

Use of Estimates

Cash and Cash Equivalents

Cash Held in Trust Account

Concentration of Credit Risk

Offering Costs

Deferred Underwriters' Commission

Deferred Underwriters’ Commission

Common Stock Subject to Possible Redemption

For the three and six months ended June 30, 2024 and 2023, the changes in Class A common stock subject to possible redemption is as follows:


	Shares	Amount
January 1, 2023	28,009,750	$	283,033,156
Plus:
Increase in redemption value of shares subject to possible redemption	—		2,336,130
March 31, 2023	28,009,750		285,369,286
Plus:
Increase in redemption value of shares subject to possible redemption	—		2,650,165
June 30, 2023	28,009,750	$	288,019,451

January 1, 2024	14,699,019	$	153,932,010
Plus:
Increase in redemption value of shares subject to possible redemption	—		1,294,142
March 31, 2024	14,699,019	$	155,226,152
Less:
Redemptions	(12,498,716)		(132,667,234)
Plus:
Increase in redemption value of shares subject to possible redemption	—		946,473
June 30, 2024	2,200,303	$	23,505,391

Fair Value of Financial Instruments

Fair Value Measurements

●	Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

●	Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

●

Derivative Financial Instruments

Stock-Based Compensation

Capital Contribution Note

Warrant Liability

Non-Redemption Agreements

Income Taxes

The Company has identified the United States as its only “major” tax jurisdiction.

Net Income Per Common Share

For the three and six months ended June 30, 2024 and 2023, basic and diluted net income per common share is as follows:


	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2024				2023				2024				2023
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	672,806	$	434,089	$	2,265,630	$	566,407	$	1,160,408	$	636,005	$	4,473,637	$	1,118,409

Denominator
Weighted-average shares outstanding		10,853,260		7,002,438		28,009,750		7,002,438		12,776,140		7,002,438		28,009,750		7,002,438
Basic and diluted net income per share	$	0.06	$	0.06	$	0.08	$	0.08	$	0.09	$	0.09	$	0.16	$	0.16

Recent Accounting Pronouncements

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2024

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of changes in Class A common stock subject to possible redemption


	Shares	Amount
January 1, 2023	28,009,750	$	283,033,156
Plus:
Increase in redemption value of shares subject to possible redemption	—		2,336,130
March 31, 2023	28,009,750		285,369,286
Plus:
Increase in redemption value of shares subject to possible redemption	—		2,650,165
June 30, 2023	28,009,750	$	288,019,451

January 1, 2024	14,699,019	$	153,932,010
Plus:
Increase in redemption value of shares subject to possible redemption	—		1,294,142
March 31, 2024	14,699,019	$	155,226,152
Less:
Redemptions	(12,498,716)		(132,667,234)
Plus:
Increase in redemption value of shares subject to possible redemption	—		946,473
June 30, 2024	2,200,303	$	23,505,391

Schedule of net income per common share


	For the Three Months Ended June 30,								For the Six Months Ended June 30,
	2024				2023				2024				2023
	Class A		Class B		Class A		Class B		Class A		Class B		Class A		Class B
Basic and diluted net income per share:
Numerator:
Allocation of net income	$	672,806	$	434,089	$	2,265,630	$	566,407	$	1,160,408	$	636,005	$	4,473,637	$	1,118,409

Denominator
Weighted-average shares outstanding		10,853,260		7,002,438		28,009,750		7,002,438		12,776,140		7,002,438		28,009,750		7,002,438
Basic and diluted net income per share	$	0.06	$	0.06	$	0.08	$	0.08	$	0.09	$	0.09	$	0.16	$	0.16

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2024

FAIR VALUE MEASUREMENTS

Schedule of assets and liabilities measured on fair value on a recurring basis


		June 30,		December 31,
Liabilities:	Level	2024		2023
Warrant Liability – Public Warrants	(a)	$	1,027,024	$	1,213,756
Warrant Liability – Private Placement Warrants	3	$	594,000	$	717,000
Capital Contribution Note	3	$	543,253	$	—

(a)	Level 2 at June 30, 2024 and Level 1 at December 31, 2023

Schedule key inputs into the valuation models used to value the Private Placement Warrants


Input	June 30, 2024			December 31, 2023
Common stock price	$	10.56		$	10.38
Risk-free interest rate		4.28	%		3.81	%
Expected term in years		5.68	years		5.43	years
Expected volatility		0.001	%		7.244	%
Exercise price	$	11.50		$	11.50
Public warrant price	$	0.11		$	0.13

Schedule of reconciliation of the Level 3 classified valuations, consisting of the Company's Private Placement Warrants


	Capital Contribution		Private Placement
	Note		Warrants
Changes in fair value of financial liabilities measured with level 3:
December 31, 2023	$	—	$	717,000
Initial value of the Capital Contribution Note		600,000		—
Change in fair value		—		(116,000)
March 31, 2024	$	600,000	$	601,000
Excess of fair value of Capital Contribution Note over initial principal balance at issuance		565,079		—
Change in fair value		(621,826)		(7,000)
June 30, 2024	$	543,253	$	594,000

			Private Placement
			Warrants

December 31, 2022			$	625,000
Change in fair value				(241,000)
March 31, 2023				384,000
Change in fair value				(168,000)
June 30, 2023			$	216,000

ORGANIZATION, BUSINESS OPERATIONS AND LIQUIDITY (Details)					1 Months Ended		3 Months Ended	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares	Mar. 28, 2024 USD ($) $ / shares shares	Aug. 29, 2023 USD ($) $ / shares shares	Sep. 03, 2021 USD ($) $ / shares shares	May 31, 2024 USD ($) $ / shares shares	Aug. 31, 2023 USD ($) $ / shares	Jun. 30, 2024 USD ($) $ / shares shares	Jun. 30, 2024 USD ($) D item $ / shares shares	Oct. 31, 2024 USD ($)	Apr. 30, 2024 USD ($)	Dec. 31, 2023 USD ($) $ / shares	May 03, 2022 USD ($)
Debt Instrument
Condition for future business combination number of businesses minimum \| item								1
Number of founder shares purchased \| shares								600,000
Share price \| $ / shares	$ 10.68						$ 10.68	$ 10.68
Marketable securities held in Trust Account	$ 23,447,845		$ 152,164,096		$ 23,355,048		$ 23,447,845	$ 23,447,845			$ 153,928,848
Restrictions on transfer period of time after business combination completion								1 year
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) \| $ / shares								$ 12.00
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination \| D								20
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination \| D								30
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences								150 days
Maximum allowed dissolution expenses								$ 100,000
Capital Contribution Note, at fair value	543,253						543,253	543,253
Proceeds from Capital Contribution Note	600,000							600,000
Cash held outside the Trust Account	525,404						525,404	525,404			363,225
Cash withdrawn from Trust Account in connection with redemptions								132,667,234
Excise tax payable	2,687,721						2,687,721	2,687,721			$ 1,360,357
Subsequent Event
Debt Instrument
Excise tax payable									$ 1,360,000
Capital Contribution Note
Debt Instrument
Number of founder shares purchased \| shares		600,000
Debt instrument of face amount	600,000	$ 600,000					600,000	600,000		$ 600,000
Capital Contribution Note, at fair value	$ 600,000						$ 600,000	$ 600,000
Class A common stock
Debt Instrument
Number of shares agreed to transfer by the Sponsor in exchange for non-redemption of shares by the third party \| shares			2,326,496		75,000
Aggregate additional shares \| shares					9,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0001						$ 0.0001	$ 0.0001			$ 0.0001
Class A common stock \| Capital Contribution Note
Debt Instrument
Share price \| $ / shares		$ 10.00
Class B common stock
Debt Instrument
Consideration for surrender and forfeiture of shares			$ 0		$ 0	$ 0
Common stock, par value (in dollars per share) \| $ / shares	0.0001		$ 0.0001		$ 0.0001	$ 0.0001	$ 0.0001	0.0001			0.0001
Common stock subject to possible redemption
Debt Instrument
Number of shares redeemed \| shares			13,310,731		12,498,716		12,498,716
Redemption price \| $ / shares	10.68		$ 10.35		$ 10.61		$ 10.68	10.68			$ 10.47
Aggregate redemption amount			$ 137,792,552		$ 132,667,234		$ (132,667,234)
Warrants \| Class A common stock
Debt Instrument
Purchase price, per unit \| $ / shares	$ 11.50						$ 11.50	$ 11.50
IPO
Debt Instrument
Number of units issued \| shares				25,000,000
Purchase price, per unit \| $ / shares				$ 10.00
Gross proceeds				$ 250,000,000
Threshold minimum aggregate fair market value as a percentage of the net assets held in the Trust Account				80.00%
Threshold percentage of outstanding voting securities of the target to be acquired by post-transaction company to complete business combination				50.00%
Obligation to redeem public shares if entity does not complete a business combination (as a percent)				100.00%
Threshold business days for redemption of public shares				2 days
Redemption period upon closure				10 days
Maximum allowed dissolution expenses				$ 100,000
Private Placement \| Private Placement Warrants
Debt Instrument
Price of warrant \| $ / shares				$ 1.50
Proceeds from issuance of private placement				$ 7,500,000
Sponsor \| IPO
Debt Instrument
Purchase price, per unit \| $ / shares				$ 0.003
Number of founder shares purchased \| shares				125,000
Sponsor \| Private Placement \| Private Placement Warrants
Debt Instrument
Sale of private placement warrants (in shares) \| shares				4,262,121
Sponsor \| Promissory Note - Related Party
Debt Instrument
Maximum borrowing capacity of related party promissory note					$ 650,000							$ 350,000
Notes payable amount	$ 0						$ 0	$ 0			$ 0
CA2 Co-Investment \| Private Placement \| Private Placement Warrants
Debt Instrument
Sale of private placement warrants (in shares) \| shares				587,879
Anchor Investors \| IPO
Debt Instrument
Number of units issued \| shares				24,750,000
Purchase price, per unit \| $ / shares				$ 10.00
Aggregate number of shares \| shares				1,250,000
Maximum percentage of units purchase by each investor				9.90%
Maximum value of units offered				$ 247,500,000
Number of founder shares purchased \| shares				1,250,000
Percentage of units sold				100.00%
Percentage of outstanding units				99.00%
Anchor Investors \| Private Placement \| Private Placement Warrants
Debt Instrument
Sale of private placement warrants (in shares) \| shares				75,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)		1 Months Ended		3 Months Ended		6 Months Ended
	Aug. 29, 2023	May 31, 2024	Aug. 31, 2023	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash equivalents				$ 0		$ 0		$ 0
Aggregate fair value of shares		$ 90,353	$ 1,143,605
Number of founder shares purchased						600,000
Debt instrument fair value disclosure				600,000		$ 600,000
Excess of fair value of Capital Contribution Note over initial principal balance at issuance				621,826		621,826
Capital Contribution Note, at fair value				543,253		543,253
Unrealized gain				$ 621,826		$ 621,826
Number of warrants issued						14,737,883
Statutory federal income tax rate				21.00%	21.00%	21.00%	21.00%
Unrecognized tax benefits				$ 0	$ 0	$ 0	$ 0
Unrecognized tax benefits accrued for interest and penalties				0	$ 0	0	$ 0
Excise tax payable				2,687,721		2,687,721		$ 1,360,357
Excess of fair value of Capital Contribution Note over initial principal balance at issuance				$ (34,921)		$ 565,079
Percentage of interest expenses						10.00%
Percentage of penalty expenses						5.00%
Percentage of penalty on total liability						25.00%
Private Placement Warrants
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of warrants issued						5,401,300
Public Warrants
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of warrants issued						9,336,583
Class A common stock
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of shares agreed to transfer by the Sponsor in exchange for non-redemption of shares by the third party	2,326,496	75,000
Common stock, par value (in dollars per share)				$ 0.0001		$ 0.0001		$ 0.0001
Class B common stock
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Consideration for surrender and forfeiture of shares	$ 0	$ 0	$ 0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001	$ 0.0001	$ 0.0001		$ 0.0001		$ 0.0001

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Common Stock Subject to Possible Redemption (Details) - USD ($)		1 Months Ended	3 Months Ended				6 Months Ended
	Aug. 29, 2023	May 31, 2024	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash withdrawn from Trust Account in connection with redemptions							$ 132,667,234
Changes in Class A common stock subject to possible redemption
Increase in redemption value of shares subject to possible redemption			$ 946,473	$ 1,294,142	$ 2,650,165	$ 2,336,130
Class A common stock subject to possible redemption
Changes in Class A common stock subject to possible redemption
Class A common stock subject to possible redemption at beginning			$ 155,226,152	$ 153,932,010	$ 285,369,286	$ 283,033,156	$ 153,932,010
Class A common stock subject to possible redemption at beginning (shares)			14,699,019	14,699,019	28,009,750	28,009,750	14,699,019
Aggregate redemption amount	$ 137,792,552	$ 132,667,234	$ (132,667,234)
Number of shares redeemed	(13,310,731)	(12,498,716)	(12,498,716)
Class A common stock subject to possible redemption at ending			$ 23,505,391	$ 155,226,152	$ 288,019,451	$ 285,369,286	$ 23,505,391
Class A common stock subject to possible redemption at ending (shares)			2,200,303	14,699,019	28,009,750	28,009,750	2,200,303

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reconciliation of net income per common share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Class A common stock
Numerator:
Allocation of net income	$ 672,806	$ 2,265,630	$ 1,160,408	$ 4,473,637
Denominator
Basic weighted-average shares outstanding	10,853,260	28,009,750	12,776,140	28,009,750
Basic net income per share	$ 0.06	$ 0.08	$ 0.09	$ 0.16
Class B common stock
Numerator:
Allocation of net income	$ 434,089	$ 566,407	$ 636,005	$ 1,118,409
Denominator
Basic weighted-average shares outstanding	7,002,438	7,002,438	7,002,438	7,002,438
Diluted weighted-average shares outstanding	7,002,438	7,002,438	7,002,438	7,002,438
Basic net income per share	$ 0.06	$ 0.08	$ 0.09	$ 0.16
Diluted net income per share	$ 0.06	$ 0.08	$ 0.09	$ 0.16

RELATED PARTY TRANSACTIONS - Founder shares (Details)		6 Months Ended
RELATED PARTY TRANSACTIONS - Founder shares (Details)	Mar. 01, 2021 USD ($) D $ / shares shares	Jun. 30, 2024 D $ / shares shares	Dec. 31, 2023 shares
RELATED PARTY TRANSACTIONS
Restrictions on transfer period of time after business combination completion		1 year
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) \| $ / shares		$ 12.00
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination \| D		20
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination \| D		30
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences		150 days
Class B common stock
RELATED PARTY TRANSACTIONS
Founder shares outstanding \| shares		7,002,438	7,002,438
Founder Shares \| Sponsor \| Class B common stock
RELATED PARTY TRANSACTIONS
Aggregate purchase price \| $	$ 25,000
Number of shares transferred (in shares) \| shares	75,000
Aggregate number of shares \| shares	25,000
Founder shares outstanding \| shares		7,002,438	7,002,438
Restrictions on transfer period of time after business combination completion	1 year
Stock price trigger to transfer, assign or sell any shares or warrants of the company, after the completion of the initial business combination (in dollars per share) \| $ / shares	$ 12.00
Threshold trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination \| D	20
Threshold consecutive trading days for transfer, assign or sale of shares or warrants, after the completion of the initial business combination \| D	30
Threshold period after the business combination in which the 20 trading days within any 30 trading day period commences	150 days

RELATED PARTY TRANSACTIONS (Details) - Sponsor - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	May 31, 2024	Dec. 31, 2023	May 03, 2022
RELATED PARTY TRANSACTIONS
Outstanding amount	$ 122,905		$ 122,905			$ 750
Promissory Note - Related Party
RELATED PARTY TRANSACTIONS
Maximum borrowing capacity of related party promissory note					$ 650,000		$ 350,000
Notes Payable	0		0			0
Working Capital Loans
RELATED PARTY TRANSACTIONS
Loan conversion agreement warrant	$ 1,500,000		$ 1,500,000
Conversion price	$ 1.50		$ 1.50
Outstanding amount	$ 0		$ 0			0
Administrative Service Fee
RELATED PARTY TRANSACTIONS
Outstanding amount	120,000		120,000			$ 0
Expenses per month			20,000
Expenses incurred and paid	$ 60,000	$ 60,000	$ 120,000	$ 120,000

COMMITMENTS AND CONTINGENCIES (Details)	Jun. 30, 2024 USD ($) item	Dec. 31, 2023 USD ($)
COMMITMENTS AND CONTINGENCIES
Maximum number of demands for registration of securities \| item	3
Contingent expenses	$ 1,218,765	$ 1,065,000
Accrued capital markets advisor fee	$ 1,000,000	$ 1,000,000

COMMITMENTS AND CONTINGENCIES - Deferred Underwriters Commission (Details)	1 Months Ended	3 Months Ended	6 Months Ended
	Dec. 31, 2023 USD ($) item	Dec. 31, 2023 USD ($)	Jun. 30, 2024 USD ($)
COMMITMENTS AND CONTINGENCIES
Number of underwriters waived the right to receive commission \| item	1
Additional underwriting commissions	$ 0
Income recognized on waiver of deferred underwriting commission		$ 595,921
Accumulated deficit on the Waiver of deferred underwriter commission		5,080,255
Reduction in waiver on deferred underwriting commission		$ 5,676,176
IPO
COMMITMENTS AND CONTINGENCIES
Deferred underwriting commission (percentage)			3.50%
Deferred underwriting commission			$ 9,803,413

STOCKHOLDERS' DEFICIT - Preferred stock shares (Details) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
STOCKHOLDERS' DEFICIT
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, par value (per share)	$ 0.0001	$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

STOCKHOLDERS' DEFICIT - Common stock shares (Details)	6 Months Ended
STOCKHOLDERS' DEFICIT - Common stock shares (Details)	Jun. 30, 2024 Vote $ / shares shares	May 31, 2024 $ / shares shares	Mar. 31, 2024 shares	Mar. 28, 2024 shares	Dec. 31, 2023 $ / shares shares	Aug. 31, 2023 $ / shares	Aug. 29, 2023 $ / shares shares	Jun. 30, 2023 shares	Mar. 31, 2023 shares	Dec. 31, 2022 shares
STOCKHOLDERS' DEFICIT
Common stock, votes per share \| Vote	1
Class A common stock
STOCKHOLDERS' DEFICIT
Common stock, shares authorized (in shares)	200,000,000				200,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0001				$ 0.0001
Common stock, votes per share \| Vote	1
Number of shares agreed to transfer by the Sponsor in exchange for non-redemption of shares by the third party		75,000					2,326,496
Class A common stock \| Capital Contribution Note
STOCKHOLDERS' DEFICIT
Number of shares to be issued in consideration				600,000
Class A common stock subject to possible redemption
STOCKHOLDERS' DEFICIT
Class A common stock subject to possible redemption, outstanding (in shares)	2,200,303		14,699,019		14,699,019			28,009,750	28,009,750	28,009,750
Class A common stock not subject to possible redemption
STOCKHOLDERS' DEFICIT
Common stock, shares issued	0				0
Common stock, shares outstanding	0				0
Class B common stock
STOCKHOLDERS' DEFICIT
Common stock, shares authorized (in shares)	20,000,000				20,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.0001	$ 0.0001			$ 0.0001	$ 0.0001	$ 0.0001
Common stock, votes per share \| Vote	1
Common stock, shares issued	7,002,438				7,002,438
Common stock, shares outstanding	7,002,438				7,002,438
Shares subject to forfeiture	2,326,496
Stock conversion ratio	1
Ratio to be applied to the stock in the conversion	0.20
Class B common stock \| Non-redeemable shares to be issued for the first six months
STOCKHOLDERS' DEFICIT
Number of shares agreed to transfer by the Sponsor in exchange for non-redemption of shares by the third party	75,000
Class B common stock \| Non-redeemable shares to be issued for each additional month of extension up to three additional months
STOCKHOLDERS' DEFICIT
Number of shares agreed to transfer by the Sponsor in exchange for non-redemption of shares by the third party	9,000

STOCKHOLDERS' DEFICIT- Warrants (Details)	6 Months Ended
STOCKHOLDERS' DEFICIT- Warrants (Details)	Jun. 30, 2024 D $ / shares shares
STOCKHOLDERS' DEFICIT
Threshold trading days for redemption of warrants	20 days
Period of time within which registration statement is expected to become effective	60 days
Class A common stock
STOCKHOLDERS' DEFICIT
Number of shares issuable per warrant \| shares	1
Warrants \| Class A common stock
STOCKHOLDERS' DEFICIT
Purchase price, per unit	$ 11.50
Warrants \| Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $18.00
STOCKHOLDERS' DEFICIT
Threshold trading days for redemption of warrants	20 days
Stock price trigger for redemption of warrants (in dollars per share)	$ 18.00
Redemption price per warrant (in dollars per share)	$ 0.01
Minimum threshold written notice period for redemption of warrants	30 days
Redemption period	30 days
Threshold number of business days before sending notice of redemption to warrant holders \| D	30
Warrants \| Redemption of Warrants When the Price per Class A Ordinary Share Equals or Exceeds $10.00
STOCKHOLDERS' DEFICIT
Stock price trigger for redemption of warrants (in dollars per share)	$ 10.00
Redemption price per warrant (in dollars per share)	$ 0.10
Redemption period	30 days
Warrant redemption condition minimum share price	$ 10.00
Number of trading days on which fair market value of shares is reported \| D	30
Warrant redemption price adjustment multiple	0.361
Threshold number of business days before sending notice of redemption to warrant holders \| D	10

CAPITAL CONTRIBUTION NOTE (Details) - USD ($)		3 Months Ended	6 Months Ended
CAPITAL CONTRIBUTION NOTE (Details) - USD ($)	Mar. 28, 2024	Jun. 30, 2024	Jun. 30, 2024	Apr. 30, 2024
Debt Instrument
Share price		$ 10.68	$ 10.68
Number of founder shares purchased			600,000
Capital Contribution Note		$ 600,000	$ 600,000
Unrealized gain		621,826	621,826
Capital Contribution Note
Debt Instrument
Amount to be raised	$ 600,000	600,000	600,000	$ 600,000
Threshold prior written notice period for Drawdown Request	5 days
Threshold period for Business Combination Payment to investor	5 days
Threshold period for payment to investor in case of liquidation	10 days
Number of founder shares purchased	600,000
Capital Contribution Note	$ 600,000	543,253	543,253
Unrealized gain		$ 656,747	$ 56,747
Capital Contribution Note \| Class A common stock, par value $0.0001 per share
Debt Instrument
Number of shares to be issued in consideration	600,000
Share price	$ 10.00

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Jun. 30, 2024	May 31, 2024	Dec. 31, 2023	Aug. 29, 2023
Assets:
Marketable securities held in Trust Account	$ 23,447,845	$ 23,355,048	$ 153,928,848	$ 152,164,096
Liabilities:
Warrant liability	1,621,024		1,930,756
Capital Contribution Note	600,000
Level 1 \| Recurring \| Public Warrants
Liabilities:
Warrant liability			1,213,756
Level 2 \| Recurring \| Public Warrants
Liabilities:
Warrant liability	1,027,024
Level 3 \| Recurring
Liabilities:
Capital Contribution Note	543,253
Level 3 \| Recurring \| Private Placement Warrants
Liabilities:
Warrant liability	$ 594,000		$ 717,000

FAIR VALUE MEASUREMENTS - Fair value measurements inputs (Details) - Level 3	Jun. 30, 2024 USD ($) $ / shares Y	Dec. 31, 2023 USD ($) $ / shares Y
Common stock price
FAIR VALUE MEASUREMENTS
Derivative liability measurement input	10.56	10.38
Risk-free interest rate
FAIR VALUE MEASUREMENTS
Derivative liability measurement input	0.0428	0.0381
Expected term in years
FAIR VALUE MEASUREMENTS
Derivative liability measurement input \| Y	5.68	5.43
Expected volatility
FAIR VALUE MEASUREMENTS
Derivative liability measurement input \| $	0.00001	0.07244
Exercise price
FAIR VALUE MEASUREMENTS
Derivative liability measurement input	11.50	11.50
Public warrant price
FAIR VALUE MEASUREMENTS
Derivative liability measurement input	0.11	0.13

FAIR VALUE MEASUREMENTS - Change in the fair value of the financial liabilities (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2024
Changes in the fair value of financial liabilities
Excess of fair value of Capital Contribution Note over initial principal balance at issuance	$ (34,921)				$ 565,079
Capital Contribution Note
Changes in the fair value of financial liabilities
Financial liabilities at beginning of period	600,000
Initial value of the Capital Contribution Note		$ 600,000
Excess of fair value of Capital Contribution Note over initial principal balance at issuance	565,079
Change in fair value	(621,826)
Financial liabilities at end of period	543,253	600,000			543,253
Private Placement Warrants
Changes in the fair value of financial liabilities
Financial liabilities at beginning of period	601,000	717,000	$ 384,000	$ 625,000	717,000
Change in fair value	(7,000)	(116,000)	(168,000)	(241,000)
Financial liabilities at end of period	$ 594,000	$ 601,000	$ 216,000	$ 384,000	$ 594,000

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CNDA Concord Acquisition Corp II