Company: AAM-UN
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0001213900-25-022743
Chunk: 450

Company: AA Mission Acquisition Corp.
Filing Date: 2025-03-11
Form: 10-K
Item: Item 4
Chunk 450
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 820, which establishes a framework for measuring fair value and clarifies the definition of fair value within that
framework. ASC 820 defines fair value as an exit price, which is the price that would be received for an asset or paid to transfer a
liability in the Company’s principal or most advantageous market in an orderly transaction between market participants on the measurement
date. The fair value hierarchy established in ASC 820 generally requires an entity to maximize the use of observable inputs and minimize
the use of unobservable inputs when measuring fair value. Observable inputs reflect the assumptions that market participants would use
in pricing the asset or liability and are developed based on market data obtained from sources independent of the reporting entity. Unobservable
inputs reflect the entity’s own assumptions based on market data and the entity’s judgments about the assumptions that market
participants would use in pricing the asset or liability and are to be developed based on the best information available in the circumstances.

●Level
                                            1—Assets and liabilities with unadjusted, quoted prices listed on active market exchanges.
                                            Inputs to the fair value measurement are observable inputs, such as quoted prices in active
                                            markets for identical assets or liabilities.

●Level
                                            2—Inputs to the fair value measurement are determined using prices for recently traded
                                            assets and liabilities with similar underlying terms, as well as direct or indirect observable
                                            inputs, such as interest rates and yield curves that are observable at commonly quoted intervals.

●Level
                                            3—Inputs to the fair value measurement are unobservable inputs, such as estimates,
                                            assumptions, and valuation techniques when little or no market data exists for the assets
                                            or liabilities.

Income
Taxes

The
Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred
tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial
statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected
to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the
period that is included in the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to
the amount expected to be realized.

ASC 740
prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement