Company: PMVC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001213900-25-107610
Chunk: 347

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part II, Item 1A
Chunk 347
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 404 of the Sarbanes-Oxley Act of 2002 could
have a material adverse effect on our business.

As
a public company, we are required to maintain effective internal control over financial reporting in accordance with Section 404
of the Sarbanes-Oxley Act of 2002. Internal control over financial reporting is complex and may be revised over time to adapt to changes
in our business, or changes in applicable accounting rules. We cannot assure you that our internal control over financial reporting will
be effective in the future or that a material weakness will not be discovered with respect to a prior period for which we had previously
believed that our internal control over financial reporting was effective. Matters impacting our internal control over financial reporting
may cause us to be unable to report our financial information on a timely basis, or may cause us to restate previously issued financial
information, and thereby subject us to adverse regulatory consequences, including sanctions or investigations by the SEC, or violations
of applicable stock exchange listing rules. There could also be a negative reaction in the financial markets due to a loss of investor
confidence in us and the reliability of our financial statements. Confidence in the reliability of our financial statements is also likely
to suffer if we report a material weakness in the effectiveness of our internal control over financial reporting. This could materially
adversely affect us by, for example, leading to a decline in the price of our shares/warrants and impairing our ability to attract a
business opportunity and/or consummate a transaction.

Our
warrants are accounted for as liabilities and changes in the value of our warrants could have a material effect on our financial results.

On
April 12, 2021, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to
be classified as liabilities instead of equity on the SPAC’s balance sheet. As a result of the SEC Staff Statement, we re-evaluated
the accounting treatment of our warrants, and determined to classify the warrants as derivative liabilities measured at fair value, with
changes in fair value reported in our statement of operations for each reporting period.

As
a result, included on our balance sheets as of September 30, 2025 and December 31, 2024, and contained elsewhere in this report, are
derivative liabilities related to embedded features contained within our warrants. ASC 815-40 provides for the re-measurement of the
fair value of such derivatives at each balance sheet