Company: JACS-RI
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001013762-25-000620
Chunk: 356

Company: Jackson Acquisition Co II
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1C
Chunk 356
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 in the Trust Account.

Offering Costs

The Company complies with the requirements of
the ASC 340-10-S99 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. Financial Accounting Standards Board 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 Share Rights, using the residual method by allocating Initial Public Offering proceeds first to assigned value
of the Share Rights and then to the Class A ordinary shares. Offering costs allocated to Public Shares were charged to temporary equity,
and offering costs allocated to Public Share Rights (as defined below) and Private Placement Units were charged to shareholders’
equity as the Public Share Rights and Private Placement Share Rights (as defined below), after management’s evaluation, were accounted
for under equity treatment.

Income Taxes

The Company accounts for income taxes under ASC 740,
“Income Taxes” (“ASC 740”). ASC 740 requires the recognition of deferred tax assets and liabilities
for both the expected impact of differences between the financial statement and tax basis of assets and liabilities and for the expected
future tax benefit to be derived from tax loss and tax credit carryforwards. ASC 740 additionally requires a valuation allowance
to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized.

ASC 740 also clarifies the accounting for
uncertainty in income taxes recognized in an enterprise’s financial statement and prescribes a recognition threshold and measurement
process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those
benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. The Company
recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits
and no amounts accrued for interest and penalties as of December 31, 2024. The Company is currently not aware of any issues under review
that could result in significant payments, accruals or material deviation from its position. The Company has been subject to income tax
examinations by major taxing authorities since inception.

The Company is considered an exempted Cayman Islands
Company and is presently not