Company: PCAP
Filing Date: 2025-07-03
Form Type: 10-Q
Source: 0001213900-25-061163
Chunk: 52

Company: ProCap Acquisition Corp
Filing Date: 2025-07-03
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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 value
reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded
as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet
as current or non-current based on whether or not net cash settlement or conversion of the instrument could be required within 12 months
of the balance sheet date. The underwriters’ over-allotment option is deemed to be a freestanding financial instrument indexed on
the contingently redeemable shares and will be accounted for as a liability pursuant to ASC 480 if not fully exercised at the time of
the Initial Public Offering. On May 22, 2025, at the closing of the Company’s Initial Public Offering, the underwriters partially
exercised their over-allotment option.

Warrant Instruments

The Company accounted for the Public Warrants
issued in connection with the Initial Public Offering and the Private Placement Warrants issued as part of the Private Placement Units,
in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company
evaluated and classified the Warrant instruments under equity treatment at their assigned values. As of March 31, 2025, there were no
Warrants issued or outstanding.

Recent Accounting Pronouncements

Management does not believe that any other recently
issued, but not effective, accounting standards, if currently adopted, would have a material effect on the Company’s unaudited financial
statements.

NOTE 3. INITIAL PUBLIC OFFERING

Pursuant to the Initial Public Offering on May
22, 2025, the Company sold 25,000,000 Units, which includes the partial exercise by the underwriters of their over-allotment option
in the amount of 3,000,000 Units, at a price of $10.00 per Unit. Each Unit consists of one Class A ordinary share, and one-third
of one redeemable Public Warrant.

Each Warrant will become exercisable 30 days after
the completion of the Company’s initial Business Combination and will expire five years after the completion of the Company’s
initial Business Combination or earlier upon redemption or liquidation. However, if the Company does not complete its initial Business
Combination within the Completion Window, the Warrants will expire at the end of such period. If the Company is unable to deliver registered
shares of common stock to the holder upon exercise of the