Company: ONCHW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075689
Chunk: 59

Company: 1RT Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 8
Chunk 59
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director and for their services through the Company’s initial Business Combination. The founder shares, represented by such membership
interests, will remain with the Sponsor if the holder of such membership interests are no longer serving the Company prior to the initial
Business Combination. The membership interest assignment of the founder shares to the holders of such interests are in the scope of FASB
ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated
with equity-classified awards is measured at fair value upon the assignment date. The total fair value of the 75,000 founder shares represented
by such membership interests assigned to the holders of such interests on July 1, 2025 was $193,500 or $2.58 per share. The membership
interests were assigned subject to a performance condition (i.e., providing services through Business Combination). Stock-based compensation
would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in
an amount equal to the number of membership interests that ultimately vest times the assignment date fair value per share (unless subsequently
modified) less the amount initially received for the assignment of the membership interests. As of June 30, 2025, the Company determined
that the initial Business Combination is not considered probable and therefore no compensation expense has been recognized.

The Company’s initial shareholders have
agreed not to transfer, assign or sell any of their founder shares and any Class A ordinary shares issued upon conversion thereof
until the earlier to occur of (i) one year after the completion of the initial Business Combination or (ii) the date on which
the Company completes a liquidation, merger, share exchange or other similar transaction after the initial Business Combination that
results in all of the Company’s shareholders having the right to exchange their Class A ordinary shares for cash, securities
or other property. Any permitted transferees will be subject to the same restrictions and other agreements of the Company’s initial
shareholders with respect to any founder shares (the “Lock-up”). Notwithstanding the foregoing, if (1) the closing price
of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share capitalizations, reorganizations,
recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least 150