Company: MCGAU
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001213900-25-073705
Chunk: 10

Company: Yorkville Acquisition Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 registration fees that are related to the Initial Public Offering. FASB ASC 470-20, “Debt with Conversion
and Other Options,” addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components.
The Company applies this guidance to allocate Initial Public Offering proceeds from the Units between Class A ordinary shares
and Public Warrants, using the residual method by allocating Initial Public Offering proceeds first to assigned value of the Public Warrants
and then to the Class A ordinary shares. Offering costs allocated to the Class A ordinary shares subject to possible redemption
will be charged to temporary equity. Offering costs allocated to the Public and Private Placement Warrants will be charged to shareholder’s
equity, as the Public and Private Placement Warrants, after management’s evaluation, will be accounted for under equity treatment.
As of March 31, 2025, the Company had deferred offering costs of $142,376. 

8

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under FASB ASC 820, “Fair Value Measurements and Disclosures,” approximate
the carrying amounts represented in the balance sheet, primarily due to their short-term nature.

Fair value is defined as the price that would
be received for sale of an asset or paid to transfer of a liability, in an orderly transaction between market participants at the measurement
date. U.S. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

    ●
    Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;

    ●
    Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and

    ●
    Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

Income Taxes

The Company accounts for income taxes under ASC
Topic 740