Company: ONCHW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110042
Chunk: 58

Company: 1RT Acquisition Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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securities, the investments are classified as trading securities. In contrast, when the investments held in Trust Account are comprised
of money market funds, these are recognized at fair value. Trading securities and investments in money market funds are presented on
the unaudited condensed balance sheets at fair value at the end of each reporting period. 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 September 30, 2025, the assets held in the Trust Account were in money market funds.

7

 1RT ACQUISITION CORP. NOTES TO CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Unaudited)

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
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 warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned value of the
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 and offering costs allocated to the Public and Private Placement Warrants will be charged
to shareholders’ deficit as Public Warrants (as defined below) and Private Placement Warrants, and, after management’s evaluation,
offering costs will be accounted for under equity treatment. Should the Initial Public Offering prove to be unsuccessful, these deferred
costs, as well as