Company: ATIIU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001437749-25-025722
Chunk: 64

Company: Archimedes Tech SPAC Partners II Co.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 8
Chunk 64
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 estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:
    
     Level 1:  Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. 
   
  Level 2:  Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active. 
   
  Level 3:  Unobservable inputs based on assessment of the assumptions that market participants would use in pricing the asset or liability. 

   Warrant Instruments
    
   The Company accounted for the Public and Private Placement Warrants issued in connection with the Initial Public Offering and the private placement in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”, whereby under that provision, the warrants that do not meet the criteria for equity treatment must be recorded as liability. Accordingly, the Company evaluated and classified the warrant instruments under equity treatment at their assigned values.

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   ARCHIMEDES TECH SPAC PARTNERS II CO. NOTES TO CONDENSED FINANCIAL STATEMENTS  JUNE 30, 2025 (UNAUDITED)

   The fair value of the Public Warrants is $1,725,000, or $0.15 per Public Warrant. The fair value of Public Warrants was determined using Monte Carlo Simulation Model. The Public Warrants have been classified within shareholders’ deficit and will not require remeasurement after issuance. The following table presents the quantitative information regarding market assumptions used in the level 3 valuation of the Public Warrants:

       February 12, 2025  
 Implied ordinary share price  $9.93 
 Exercise price  $11.50