Company: PGACR
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-002878
Chunk: 191

Company: PANTAGES CAPITAL ACQUSITION Corp
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1B
Chunk 191
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 are no significant uncertain tax positions requiring recognition
in the Company’s financial statements.

The Company recognizes accrued interest and penalties
related to unrecognized tax benefits as income tax expense. There were no unrecognized tax benefits and no amounts accrued for interest
and penalties as of December 31, 2024. The Company is currently not aware of any issues under review that could result in significant
payments, accruals or material deviation from its position.

There is currently no taxation imposed on income
by the Government of the Cayman Islands. In accordance with Cayman Islands federal income tax regulations, income taxes
are not levied on the Company. Consequently, income taxes are not reflected in the Company’s financial statements.

Stock-based compensation

The Company
recognizes compensation costs resulting from the issuance of stock-based awards to directors as an expense in the financial statement
over the requisite service period based on a measurement of fair value for each stock-based award. The fair value is amortized as compensation
cost on a straight-line basis over the requisite service period of the awards or to the extent a stock-based award is subject to a performance
condition, the amount of expense recorded in a given period, if any, reflects and assessment of the probability of achieving such performance
condition, with compensation recognized once the event is deemed probable to occur. The Black-Scholes-Merton option-pricing model includes
various assumptions, including the fair market value of the estimated stock price of the Company, expected life of shares, the expected
volatility and the expected risk-free interest rate, among others. These assumptions reflect the Company’s best estimates, but they
involve inherent uncertainties based on market conditions generally outside the control of the Company.

F-13

Related parties

Parties,
which can be a corporation or individual, are considered to be related if the Company has the ability, directly or indirectly, to control
the other party or exercise significant influence over the other party in making financial and operational decisions. Companies are also
considered to be related if they are subject to common control or common significant influence.

Recent Accounting Pronouncements

In November 2023, the FASB issued ASU 2023-07, “Segment
Reporting Improvements to Reportable Segment Disclosures” (“Topic 280”). The amendments in this ASU require
disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating officer
decision maker (“CODM”),