Company: FVN
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0001829126-25-005949
Chunk: 37

Company: Future Vision II Acquisition Corp.
Filing Date: 2025-08-08
Form: 10-Q
Item: Part I, Item 1
Chunk 37
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 the carrying amounts represented in the accompanying balance sheet,
primarily due to their short-term nature. The carrying amounts reported in the balance sheet for cash and cash equivalents, marketable
securities held in trust account, accounts payable and accrued expenses and due to related parties, each qualify as financial instruments
and are a reasonable estimate of their fair values because of the short period between the origination of such instruments and their expected
realization and their current market rate of interest.

Ordinary Shares Subject to Possible Redemption

All of the 5,750,000 Ordinary Shares sold as part
of the Units in the IPO contain a redemption feature which allows for the redemption of such Public Shares in connection with the Company’s
liquidation, if there is a shareholder vote or tender offer in connection with the Business Combination and in connection with certain
amendments to the Company’s amended and restated certificate of incorporation.

The Company accounted 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) were 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) were classified
as temporary equity. At all other times, ordinary shares were classified as stockholders’ equity. In accordance with ASC 480-10-S99,
the Company classified 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 5,750,000 ordinary shares sold as part
of the units in the IPO 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