Company: SPEG
Filing Date: 2025-08-25
Form Type: 10-Q
Source: 0002077096-25-000055
Chunk: 13

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-08-25
Form: 10-Q
Item: Part I, Item 1
Chunk 13
---
 under review that could result in significant payments, accruals or material deviation from its position.

The Company is considered to be an exempted Cayman
Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing
requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented.

Warrant Instruments

At June 30, 2025 (unaudited) and December 31,
2024, there were no warrants issued or outstanding. The Company accounted for the warrants issued in connection with the private placement
close on July 16, 2025 in accordance with the guidance contained in FASB ASC 815, “Derivatives and Hedging”, whereby
under that provision the warrants do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the
Company evaluated and determined the warrant instrument is to be classified as a liability at fair value and will adjust the instrument
to fair value at each reporting period. This liability will be re-measured at each balance sheet date until the warrants are exercised
or expire, and any change in fair value will be recognized in the Company’s statement of operations.

8

SILVER PEGASUS ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

(UNAUDITED)

Share Rights

At June 30, 2025 (unaudited) and December 31,
2024, there were no Share Rights issued or outstanding. The Company accounted for the share rights issued in connection with the Initial
Public Offering on July 16, 2025 in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”.
Accordingly, the Company evaluated and classified the share rights under liability at fair value and will adjust the instrument to fair
value at each reporting period. This liability will be re-measured at each balance sheet date until the rights are exercised or expire,
and any change in fair value will be recognized in the Company’s statement of operations.

Net Loss per Ordinary Share

Net loss per ordinary share is computed by dividing
net loss by the weighted average number of ordinary shares outstanding during the period, excluding ordinary shares subject to forfeiture.
Weighted average shares were reduced for the effect of an aggregate of 500,000 ordinary shares that would have been subject to forfeiture