Company: PELI
Filing Date: 2025-06-27
Form Type: 10-Q
Source: 0001829126-25-004771
Chunk: 43

Company: Pelican Acquisition Corp
Filing Date: 2025-06-27
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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10-S99-1, “Other Assets and Deferred Costs – SEC Materials” (“ASC 340-10-S99”) and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering”. Deferred offering costs were $2,635,148 consisting principally of $1,725,000 underwriting fees and $806,109 legal and other expenses that were directly related to the IPO and the underwriters’ full exercise of the over-allotment option and charged to shareholder’s equity upon the completion of the IPO and the underwriters’ full exercise of the over-allotment option.

Ordinary Shares Subject to Possible Redemption

The Company accounts for its ordinary shares
subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from
Equity” (ASC 480). Ordinary shares subject to mandatory redemption (if any) will be classified as a liability instrument and
will be measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights
that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within
the Company’s control) will be classified as temporary equity. At all other times, ordinary shares will be classified as
stockholders’ equity. In accordance with ASC 480-10-S99, the Company classifies the ordinary shares subject to redemption
outside of permanent equity as the redemption provisions are not solely within the control of the Company. Given that the 8,625,000
ordinary shares sold as part of the Units in the IPO and full excise of over-allotment option were issued with other freestanding
instruments (i.e., rights), the initial carrying value of ordinary shares classified as temporary equity has been allocated to the
proceeds determined in accordance with ASC 470-20. If it is probable that the equity instrument will become redeemable, the Company
has the option to either (i) accrete changes in the redemption value over the period from the date of issuance (or from the date
that it becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or
(ii) recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal
the redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately. Immediately
upon the closing of the IPO, the Company recognized the accretion from initial book value to