Company: NMP
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109359
Chunk: 63

Company: NMP Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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, 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” (“ASC 815”). 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 statements 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.

Rights

The Company accounts for
the Public Rights issued in connection with the Initial Public Offering and the Private Placement Rights in accordance with the guidance
contained in ASC 815. Under ASC 815-40, the Public Rights and the Private Placement Rights meet the criteria for equity treatment
and as such will be recorded in shareholders’ equity. If the Public Rights and Private Placement Rights no longer meet the criteria
for equity treatment, they will record as a liability and remeasured each period with changes recorded in the statement of operations.
There were 2,335,500 and 0 rights outstanding as of September 30, 2025 and December 31, 2024, respectively.

12

NMP ACQUISITION CORP.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

NOTE 2 — SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES (cont.)

Class A Ordinary Shares Subject to Redemption

The Public Shares
contain a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s
liquidation, or if there is a shareholder vote or tender offer in connection with the Company’s initial Business Combination.
In accordance with ASC 480-10-S99, “Distinguishing Liabilities from Equity”, the Company classifies the Public Shares
subject to redemption outside of permanent equity as the redemption provisions