Company: TACOW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001829126-25-006209
Chunk: 14

Company: Berto Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 of ASC 480. The Company classified all of the Public Shares
as redeemable. Immediately upon the closing of the Initial Public Offering, the Company recognized a one-time charge against
additional paid-in capital (to the extent available) and accumulated deficit for the difference between the initial carrying value
of the Public Shares and the redemption value.

As of June 30, 2025, the amount of Public
Shares reflected on the unaudited condensed balance sheet is reconciled in the following table:

    Schedule of Public Shares reflected on the balance sheet

    Public Shares subject to possible redemption - December 31, 2024
     
    $
    -

    Plus:

    Gross proceeds

    300,150,000

    Less:

    Proceeds allocated to Public Warrants

    (2,161,080
    )
  
    Public Shares issuance costs

    (17,631,063
    )
  
    Plus:

    Accretion of carrying value to redemption value

    21,876,083

    Public Shares subject to possible redemption - June 30, 2025
     
    $
    302,233,940

    10

BERTO ACQUISITION CORP. NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS JUNE 30, 2025

Warrant Instruments

The Company accounted for all of the Public Warrants and Private Placement Warrants in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Accordingly, the Company evaluated and classified the warrant instruments under equity treatment at their assigned values. Such guidance provides that the Warrants (as defined below) will not be precluded from equity classification. Equity-classified contracts are initially measured at fair value (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity in accordance with ASC 480 and ASC 815. The fair value of the Public Warrants and the Private Placement Warrants was measured at the issuance date using Monte Carlo simulation method. The model utilized the following Level 3 measurement inputs: an exercise price of $11.50, estimated underlying stock price of $10.07, volatility rate of 5.4%, risk free rate of 3.9% and expected terms of 7.01 years, resulting in a fair value per warrant of approximately $0.144.

Net Income per Ordinary Share

The Company