Company: BEAG
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-003594
Chunk: 1001

Company: Bold Eagle Acquisition Corp.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 7A
Chunk 1001
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 in the accompanying balance sheets, primarily due to their short-term nature.

 Derivative Financial Instruments

The Company evaluates its equity-linked financial
instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with
ASC Topic 815, “Derivatives and Hedging.” For derivative financial instruments that are classified as liabilities, the derivative
instrument is initially recognized at fair value with subsequent changes in fair value recognized in the statement of operations each
reporting period. The classification of derivative instruments, including whether such instruments should be classified as liabilities
or as equity, is evaluated at the end of each reporting period.

The Company accounted for the Eagle Share Rights
issued in connection with the Initial Public Offering in accordance with the guidance contained in ASC 815-40. Such guidance provides
that the Rights are 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 instruments continue to be classified in equity.

F-10

The Over-Allotment Option was deemed to be a freestanding
financial instrument indexed on the contingently redeemable shares and was accounted for as a liability (the “Over-Allotment Option
Liability”) pursuant to ASC 480, with the changes in fair value of the Over-Allotment Option Liability recorded in the statements
of operations.

Derivative assets and liabilities are classified
in the balance sheets as current or non-current based on whether or not net-cash settlement or conversion of the instruments could be
required within 12 months of the balance sheet date.

Offering Costs 

Offering costs consisted of underwriting, legal, accounting and other
expenses incurred directly related to the Initial Public Offering. Upon completion of the Initial Public Offering, offering costs were
allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value basis, compared
to total proceeds received. Offering costs allocated to Class A ordinary shares were initially charged to temporary equity and then accreted
to Class A ordinary shares subject to possible redemption upon the completion of the Initial Public Offering. Offering costs amounted
to $12,283,324, of which $11,788,102 was charged to temporary equity upon the completion of the Initial Public Offering and $495,222 was
charged to shareholder’s deficit as, per management’s evaluation, the Eagle Share Rights and Private Placement Shares were
accounted for under equity treatment.

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