Company: GSHRW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-075907
Chunk: 62

Company: Gesher Acquisition Corp. II
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 and December 31, 2024, there were no unrecognized
tax benefits and no amounts accrued for interest and penalties. The Company is currently not aware of any issues under review that could
result in significant payments, accruals or material deviation from its position.

The Company is considered to be an exempted Cayman
Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing
requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the period presented.

Warrant Instruments

The Company accounted for the 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” (“ASC 815”). Accordingly, the Company evaluated and classified the warrant instruments
under equity treatment at their assigned values. Such guidance provides that the Warrants 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.

9

GESHER ACQUISITION CORP. II

NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2025

Class A Ordinary Shares Subject to Possible
Redemption

The Public Shares contain a redemption feature
that allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if there is a shareholder
vote or tender offer in connection with the initial Business Combination. In accordance with FASB ASC 480-10-S99, “Distinguishing
Liabilities from Equity”, the Company classifies Public Shares subject to redemption outside of permanent equity as the redemption
provisions are not solely within the control of the Company. The Company recognizes changes in redemption value immediately as they occur
and will adjust the carrying value of redeemable Public Shares to equal the redemption value at the end of each reporting period. Immediately
upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book value to redemption value. The
change in the carrying value of redeemable Public Shares will result in charges against additional paid-in capital (to the extent available)
and accumulated deficit. Accordingly, as of June 30, 2025, Class A Ordinary Shares subject to possible redemption