Company: WENNU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076650
Chunk: 73

Company: WEN Acquisition Corp
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 73
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 those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities.
Management determined that the Cayman Islands is the Company’s major tax jurisdiction. The Company recognizes accrued interest and
penalties related to unrecognized tax benefits as income tax expense. As of June 30, 2025, there were no unrecognized tax benefits and
no amounts accrued for interest and penalties. 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 is considered to be an exempted Cayman
Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing
requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the periods presented.

Warrant Instruments

The Company accounts for the Public Warrants (defined
below) and Private Placement Warrants issued in connection with the Initial Public Offering and the private placement in accordance with
the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated and classified
the warrant instruments under equity treatment at their assigned values. Accordingly, the Company evaluated and classified the warrant
instruments under equity treatment at their assigned values. Such guidance provides that the Warrants described above were not precluded
from equity classification. Equity-classified contracts are initially measured at fair value (or allocated value). Subsequent changes
in fair value are not recognized as long as the contracts continue to be classified in equity in accordance with ASC 480 and ASC 815.

9

WEN ACQUISITION CORP

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

Class A Shares Subject to Possible Redemption

The Public Shares 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
(A) to modify the substance or timing of the Company’s obligation to allow redemption in connection with a Business Combination
or to redeem 100% of the Public Shares if the Company does not complete an initial business combination within the completion window or
(B) with respect to any other material provisions relating to shareholders’ rights or pre-initial Business Combination activity,
or if there is a shareholder vote or tender offer in connection with the Company’s initial Business Combination. In accordance with
ASC 480-