Company: BEAG
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110067
Chunk: 16

Company: Bold Eagle Acquisition Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 instruments that potentially subject
the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times may exceed the Federal
Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant
adverse impact on the Company’s financial condition, results of operations, and cash flows.

Fair Value of Financial Instruments

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

Derivative Financial Instruments

The Company evaluates its equity-linked 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 classified as liabilities, the derivative
instrument is initially recognized at fair value with subsequent changes in fair value recognized in the statement of operations each
reporting period. The classification of derivative instruments, including whether such instruments should be classified as liabilities
or as equity, is evaluated at the end of each reporting period.

The Company accounted for the Eagle Share Rights
issued in connection with the Initial Public Offering in accordance with the guidance contained in ASC 815-40. Such guidance provides
that the Eagle Share Rights are not precluded from equity classification. Equity-classified contracts are initially measured at fair value
(or allocated value). Subsequent changes in fair value are not recognized as long as the instruments continue to be classified in equity.

The Over-Allotment Option was deemed to be a freestanding
financial instrument indexed on the contingently redeemable shares and was accounted for as a liability (the “Over-Allotment Option
Liability”) pursuant to ASC 480, with the changes in fair value of the Over-Allotment Option Liability recorded in the statements
of operations. The Over-Allotment Option Liability was de-recognized when the Over-Allotment Option was partially exercised and expired
on December 9, 2024.

Derivative assets and liabilities are classified
in the balance sheets as current or non-current based on whether or not net-cash settlement or conversion of the instruments could be
required within 12 months of the balance sheet date.

Offering Costs

Offering costs consisted of underwriting, legal,
accounting and other expenses incurred directly related to the