Company: MCGAU
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076738
Chunk: 53

Company: Yorkville Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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 principally of professional
and registration fees that are related to the Initial Public Offering. FASB 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 Public Warrants, using
the residual method by allocating Initial Public Offering proceeds first to assigned value of the Public Warrants and then to the Class A
ordinary shares. Offering costs allocated to the Public Shares were charged to temporary equity, and offering costs allocated to the Public
Warrants and Private Placement Units were charged to shareholders’ deficit as the Public and Private Placement Warrants, after management’s
evaluation, were accounted for under equity treatment.

8

Transaction costs amounted to $9,424,463, consisting of $1,155,750
of cash underwriting fee, $5,175,000 of deferred underwriting fee, $2,294,250 for issuance of representative shares, and $799,463 of other
offering costs. 

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximate
the carrying amounts represented in the balance sheet, primarily due to their short-term nature.

Fair value is defined as the price that would
be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement
date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

    ●
    Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

    ●
    Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

    ●
    Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such