Company: TACOW
Filing Date: 2025-02-10
Form Type: DRS
Source: 0001829126-25-000836
Chunk: 310

Company: Berto Acquisition Corp.
Filing Date: 2025-02-10
Form: DRS
Chunk 310
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observable. In some circumstances, the inputs used to measure   
 fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is     
 categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. |

Derivative Financial Instruments

The Company evaluates its financial instruments to determine if such instruments are
derivatives or contain features that qualify as embedded derivatives in accordance
with ASC Topic 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted
for as liabilities, the derivative instrument is initially recorded at its fair value
on the grant date and is then re-valued at each reporting date, with changes in the fair value reported in the statement 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 shares subject
to redemption and will be accounted for as a liability pursuant to ASC 480 if not fully exercised at the time of the Proposed Public Offering.

Warrant Instruments

The Company will account for the Public and Private Warrants to be issued in connection
with the Proposed Public Offering and the private placement in accordance with the
guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated and will classify
the warrant instruments under equity treatment at their assigned values. There are
no Public or Private Warrants currently outstanding as of December 31, 2024.

Stock Compensation

The Company’s policy is to account for stock-based compensation expense in accordance with FASB
ASC Topic 718, “Compensation-Stock Compensation” ​(“ASC 718”). Under ASC 718, stock-based
compensation associated with equity awards is measured at fair value upon the grant
date and recognized over the requisite service period. To the extent a stock-based
award is subject to a performance condition, the amount of expense recorded in a given
period, if any, reflects an assessment of the probability of achieving such performance
condition, with compensation recognized once the event is deemed probable to occur.
Forfeitures are recognized as