Company: SPEG
Filing Date: 2025-06-20
Form Type: S-1/A
Source: 0001213900-25-055713
Chunk: 173

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-06-20
Form: S-1/A
Chunk 173
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 additional controls as we may determine are necessary in order to state that we maintain an effective system of internal controls. A target business may not be in compliance with the provisions of the Sarbanes -OxleyAct regarding the adequacy of internal controls. Many small and mid -sizedtarget businesses we may consider for our initial business combination may have internal controls that need improvement in areas such as: •staffing for financial, accounting and external reporting areas, including segregation of duties; •reconciliation of accounts; •proper recording of expenses and liabilities in the period to which they relate; •evidence of internal review and approval of accounting transactions; •documentation of processes, assumptions and conclusions underlying significant estimates; and •documentation of accounting policies and procedures. Because it will take time, management involvement and perhaps outside resources to determine what internal control improvements are necessary for us to meet regulatory requirements and market expectations for our operation of a target business, we may incur significant expenses in meeting our public reporting responsibilities, particularly in the areas of designing, enhancing, or remediating internal and disclosure controls. Doing so effectively may also take longer than we expect, thus increasing our exposure to financial fraud or erroneous financing reporting. Once our management’s report on internal controls is complete, we will retain our independent registered public accounting firm to audit and render an opinion on such report when required by Section 404 of the Sarbanes -OxleyAct. The independent registered public accounting firm may identify additional issues concerning a target business’s internal controls while performing their audit of internal control over financial reporting. Quantitative and Qualitative Disclosures about Market Risk The net proceeds of this offering and the sale of the private placement warrants held in the trust account will initially be invested only in U.S. government treasury obligations with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a -7under the Investment Company Act which invest only in direct U.S. government treasury obligations; the holding of these assets in this form is intended to be temporary and for the sole purpose of facilitating the intended business combination. To mitigate the risk that we might be deemed to be an investment company for purposes of the Investment Company Act, which risk increases the longer that we hold investments in the trust account, we may, at any time (based on our management team’s ongoing assessment of all factors related to our potential status under the Investment Company Act), instruct the trustee to liquidate the investments held in the trust account and instead to hold the funds in the trust account in cash