Company: PAII-WT
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110840
Chunk: 91

Company: Pyrophyte Acquisition Corp. II
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 2
Chunk 91
---
 an initial business combination, subject to the terms of the
underwriting agreement.

Administrative Services Agreement

Commencing on the date that our securities were first listed and continuing
until the earlier of our consummation of an initial business combination or our liquidation, we have agreed to pay an affiliate of our
sponsor a total of $35,000 per month for office space, utilities, secretarial support and administrative support made available to the
Company. Upon completion of an initial business combination or the Company’s liquidation, we will cease paying these monthly fees.
The Company paid $87,500 in administrative fees for the period from May 1, 2025 (inception) through September 30, 2025.

Critical Accounting Policies and Estimates

We describe our significant accounting policies in Note 2 - Summary
of Significant Accounting Policies, of the Notes to Financial Statements included in this Form 10-Q. Our unaudited condensed financial
statements have been prepared in accordance with accounting principles generally accepted in the United States of America. Certain of
our accounting policies require that the Company’s management apply significant judgments in defining the appropriate assumptions
integral to financial estimates including stock-based compensation. On an ongoing basis, the Company’s management reviews the accounting
policies, assumptions, estimates and judgments to ensure that our financial statements are presented fairly and in accordance with GAAP.
Judgments are based on historical experience, terms of existing contracts, industry trends and information available from outside sources,
as appropriate. However, by their nature, judgments are subject to an inherent degree of uncertainty, and, therefore, actual results could
differ from our estimates.

23

Off-Balance Sheet Arrangements

As of the date of this Quarterly Report, we did not have any off-balance
sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

JOBS Act

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012 (the
“JOBS Act”) was signed into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements
for qualifying public companies. We qualify as an “emerging growth company” under the JOBS Act and are allowed to comply with
new or revised accounting pronouncements based on the effective date for private (not publicly traded) companies. We elected to delay
the adoption of new or revised accounting standards, and as a result, we may not comply with new or revised accounting standards on