Company: IBACR
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010982
Chunk: 50

Company: IB Acquisition Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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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 period, disclosure and transition.

The
Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized
tax benefits and no amounts accrued for interest and penalties as of March 31, 2025 and September 30, 2024. 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 taxation
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.

Net
Income (Loss) Per Common Stock

The
Company complies with the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income
(loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding
for the period. Remeasurement associated with the redeemable shares of common stock is excluded from earnings (loss) per share as the
redemption value approximates fair value.

The
calculation of diluted net income (loss) per share does not consider the effect of the rights issued in connection with the (i) Initial
Public Offering, and (ii) the private placement since the exercise of the rights are contingent upon the occurrence of future events.
As of March 31, 2025, the rights are exercisable to purchase 605,525 shares of common stock in the aggregate. The weighted average of
these shares was excluded from the calculation of diluted net income (loss) per common stock since the inclusion of such rights would
be anti-dilutive. The rights cannot be converted to shares of common stock prior to an initial Business Combination; therefore, they
have been classified as anti-dilutive.

    8

IB
ACQUISITION CORP.

NOTES
TO FINANCIAL STATEMENTS

MARCH