Rising Dragon Acquisition Corp. (RDAC) is a Cayman Islands blank check SPAC with a hard liquidation deadline of May 15, 2026 — approximately 45 days beyond the March 31, 2026 balance sheet date. Under the liquidation lens, this entity is structurally straightforward: virtually all balance-sheet value resides in a grantor trust holding $45.05M in cash (Level 1 fair value), which is ring-fenced for public shareholders at a current redemption price of $10.72/share across 4,201,655 redeemable shares. That trust cash receives a 100% recovery haircut in liquidation, but it is not available to satisfy general creditors or equity claimants outside the redemption mechanism — it flows directly to redeeming public shareholders upon winding up. Outside the trust, the picture is acutely stressed. Operating cash is $9,470. Total outside-trust current liabilities are $930,396 (accrued liabilities $92,627, related-party promissory notes $400,000, due-to-sponsor $437,769), yielding a working capital deficit of approximately $850,925. A non-current deferred underwriting commission of $1,868,750 remains on-balance-sheet; the underwriter has agreed to waive this upon failure to close a business combination, but at face-value the liability stands. Total reported liabilities are $2,799,146. Shareholders' deficit is ($2,719,675), driven by accumulated deficit of ($2,719,850). The MFFAIS liquidation values (CLV/LLV/OLV all equal to ($344,931)) reflect recovery to non-redeeming equity after netting trust assets against total liabilities and the temporary equity redemption obligation — confirming zero recovery to the non-redeemable share class. QoQ change versus December 31, 2025: total liabilities grew from $2,288,029 to $2,799,146 (+$511,117), entirely from new related-party borrowings ($300,000 incremental promissory note drawdown) and sponsor advances (+$232,800 due-to-related-party increase). Trust account grew from $44,388,583 to $45,052,492, reflecting $300,000 of extension deposits net of minor redemption outflows and $380,783 of interest income accrual. The working capital deficit widened from $382,105 to $850,925 QoQ. Management has issued a going-concern qualification. A signed merger agreement with HZJL Cayman Limited (signed January 27, 2025, $350M all-stock consideration) is pending but not yet closed; if the May 15, 2026 deadline is not extended further, automatic wind-up and 100% public share redemption is triggered. Founder shares and private placement shares receive nothing in liquidation per the articles. Filing discusses working capital deficit and going-concern uncertainty in MD&A but does not separately tag the working capital deficit figure in XBRL; the $850,925 figure appears only in narrative. TAG_CONTEXT was provided as an empty array; accordingly, no XBRL tags are individually flagged below.
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