Company: SSEA
Filing Date: 2025-06-12
Form Type: S-1
Source: 0001829126-25-004429
Chunk: 287

Company: STARRY SEA ACQUISITION CORP
Filing Date: 2025-06-12
Form: S-1
Chunk 287
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 management to exercise significant judgment. It is at least reasonably possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the financial statements, which management considered in formulating its estimate, could change in the near term due to one or more future confirming events. Accordingly, the actual results could differ significantly from those estimates.

Deferred Offering Costs

The Company complies with
the requirements of ASC 340-10-S99-1. Deferred offering costs consist of legal, accounting, and other costs (including underwriting
discounts and commissions) incurred through the balance sheet date that are directly related to the Proposed Public Offering and
that will be charged to shareholders’ equity upon the completion of the Proposed Public Offering. Should the Proposed Public
Offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will be charged to
operations. As of March 31, 2025 and December 31, 2024, the Company had deferred offering costs of $279,140 and $25,000, respectively.

Income Taxes

The Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

Net Loss Per Ordinary Share

Net loss per ordinary share
is computed by dividing net loss by the weighted average number of shares of ordinary shares outstanding during the period,
excluding shares of ordinary shares subject to forfeiture. Weighted average shares were reduced for the effect of an aggregate of up
to 187,500 shares ordinary shares subject to forfeiture if the over-allotment option is not exercised in full or in part by the
underwriters (see Notes 5). As of March 31, 2025 and December 31, 2024, the Company did not have any dilutive securities and
other contracts that could, potentially, be exercised or converted into shares of ordinary shares and then share in the earnings of
the Company. As