Company: MCGAU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001213900-25-073705
Chunk: 45

Company: Yorkville Acquisition Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 45
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 and the
reported amounts of expenses during the reporting period.

Making estimates requires management to exercise
significant judgement. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances
that existed at the date of the financial statement, which management considered in formulating its estimate, could change in the near
term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

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 had no cash and cash equivalents
as of March 31, 2025.

Deferred Offering Costs

The Company complies with the requirements of the ASC 340-10-S99
and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering.” Deferred offering costs consist principally
of professional and registration fees that are related to the Initial Public Offering. FASB ASC 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 Units between Class A ordinary 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 Class A ordinary shares. Offering costs allocated to the Class A ordinary shares subject to possible redemption
will be charged to temporary equity. Offering costs allocated to the Public and Private Placement Warrants will be charged to shareholder’s
equity, as the Public and Private Placement Warrants, after management’s evaluation, will be accounted for under equity treatment.
As of March 31, 2025, the Company had deferred offering costs of $142,376. 

8

Fair Value of Financial Instruments

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

Fair value is defined as the price that would
be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement
date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy
gives the highest