Company: JACS-RI
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001213900-25-073677
Chunk: 55

Company: Jackson Acquisition Co II
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured at fair value upon
the grant date. The fair value of the 200,000 shares granted to the Company’s director nominees was $206,000 or $1.03 per share.
The Founder Shares were granted subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense
related to the Founder Shares is recognized only when the performance condition is probable of occurrence under the applicable accounting
literature in this circumstance.

The Company’s initial shareholders have
agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of (A) one
year after the completion of a Business Combination; and (B) subsequent to a Business Combination, (x) if the last reported
sale price of the Class A ordinary shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share capitalizations,
reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing at least
150 days after a Business Combination, or (y) the date on which the Company completes a liquidation, merger, amalgamation, share
exchange, reorganization or other similar transaction that results in all of the Company’s shareholders having the right to exchange
their Class A ordinary shares for cash, securities or other property.

Promissory Note — Related Parties

On September 13, 2024, the Company issued
an unsecured promissory note to the Sponsor (the “Promissory Note”), pursuant to which the Company may borrow up to an aggregate
principal amount of $300,000. The Promissory Note is non-interest bearing and was payable on the earlier of (i) March 31, 2025
or (ii) the consummation of the Initial Public Offering.

On May 7, 2025, the Promissory Note was amended
such that the Promissory Note is payable upon consummation of an initial Business Combination or upon liquidation of the Company.

As of June 30, 2025 and December 31, 2024, there
was $198,024 outstanding under the Promissory Note.

14

Administrative Services Agreement

The Company entered into an agreement with the
Sponsor, commencing on December 9,