Company: GSHRW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-075907
Chunk: 13

Company: Gesher Acquisition Corp. II
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 Trust Account

The Company’s portfolio of investments is
comprised of cash and U.S. government securities, within the meaning set forth in Section 2(a)(16) of the Investment Company Act, with
a maturity of 185 days or less, or investments in money market funds that invest in U.S. government securities and generally
have a readily determinable fair value, or a combination thereof. When the Company’s investments held in the Trust Account are comprised
of U.S. government securities, the investments are classified as trading securities, which are presented at fair value. Gains and losses
resulting from the change in fair value of these securities are included in income from investments held in the Trust Account in the accompanying
unaudited condensed statements of operations. The estimated fair values of investments held in the Trust Account are determined using
available market information. As of June 30, 2025, of the assets held in the Trust Account, $145,792,332 were held in a money market fund
and none of the assets were held in cash.

8

GESHER ACQUISITION CORP. II

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

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 the Federal
Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant
adverse impact on the Company’s financial condition, results of operations, and cash flows.

Offering Costs

The Company complies with the requirements of
FASB ASC Topic 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, — “Expenses of Offering.”
Offering costs consist principally of professional and registration fees that are related to the Initial Public Offering. FASB ASC Topic
470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible debt
into its equity and debt components. The Company applies this guidance to allocate Initial Public Offering proceeds from the Public Units
between Public Shares and Public Warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned
value of the Public Warrants and then to the Public Shares. Offering costs allocated to the Public Shares were charged to temporary equity,
and offering costs allocated