Company: GSHRW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109193
Chunk: 65

Company: Gesher Acquisition Corp. II
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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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 FASB ASC Topic 340-10-S99, “Other Assets and Deferred Costs”, and SEC Staff
Accounting Bulletin Topic 5A, “Expenses of Offering.” Offering costs consist principally of professional and registration
fees that are related to the Initial Public Offering. FASB ASC Topic 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 applied this
guidance to allocate Initial Public Offering proceeds from the Public Units between Public 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 Public Shares. Offering
costs allocated to the Public Warrants and Private Placement Units were shared to shareholders’ equity (deficit). Warrants, after Management’s
evaluation, were accounted for under equity treatment.

Transaction
costs amounted to $8,409,601, consisting of $2,875,000 of cash underwriting fee, the Deferred Underwriting Fee of $5,031,250, and $503,351
of other offering costs.

Fair
Value of Financial Instruments

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

Income
Taxes

The
Company accounts for income taxes under FASB ASC Topic 740, “Income Taxes” (“ASC 740”), which requires an
asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed
for differences between the financial statements and tax bases of assets and liabilities that will result in future taxable or deductible
amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.
Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

9

GESHER
                                            ACQUISITION CORP. II

NOTES
TO CONDENSED FINANCIAL STATEMENTS (