Company: PAII-WT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110840
Chunk: 38

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 38
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 holders of these securities are entitled
to make up to three demands, excluding short form demands, that the Company registers such securities. In addition, the holders have certain
“piggyback” registration rights with respect to registration statements filed subsequent to the Company’s completion
of the Company’s initial business combination. The Company will bear the expenses incurred in connection with the filing of any
such registration statements.

Underwriting Agreement

On July 18, 2025, the Underwriters were entitled to, and the Company
paid, an underwriting discount of $0.15 per Unit, or $2,625,000 in the aggregate, upon closing of the initial public offering.

In addition, $0.45 per Unit, or approximately $9,399,690 in the aggregate,
will be payable to the Underwriters for deferred underwriting commissions. The deferred fee will become payable to the Underwriters from
the amounts held in the Trust Account solely in the event that we complete an initial business combination, subject to the terms of the
underwriting agreement.

Administrative Services Agreement

Commencing on the date that our securities were first listed and continuing
until the earlier of our consummation of an initial business combination or our liquidation, we have agreed to pay an affiliate of our
sponsor a total of $35,000 per month for office space, utilities, secretarial support and administrative support made available to the
Company. Upon completion of an initial business combination or the Company’s liquidation, we will cease paying these monthly fees.
The Company paid $87,500 in administrative fees for the period from May 1, 2025 (inception) through September 30, 2025.

Critical Accounting Policies and Estimates

We describe our significant accounting policies in Note 2 - Summary
of Significant Accounting Policies, of the Notes to Financial Statements included in this Form 10-Q. Our unaudited condensed financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain of
our accounting policies require that the Company’s management apply significant judgments in defining the appropriate assumptions
integral to financial estimates including stock-based compensation. On an ongoing basis, the Company’s management reviews the accounting
policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP.
Judgments are based on historical experience, terms of existing contracts, industry trends and information available from outside sources,
as appropriate. However, by their nature, judgments are subject to