Company: CRAC
Filing Date: 2025-10-20
Form Type: POS462C
Source: 0001213900-25-100119
Chunk: 158

Company: Crown Reserve Acquisition Corp. I
Filing Date: 2025-10-20
Form: POS462C
Chunk 158
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OxleyAct regarding the adequacy of internal controls. 98 Many small and mid -sizedtarget businesses we may consider for our initial business combination may have internal controls that need improvement in areas such as: •staffing for financial, accounting and external reporting areas, including segregation of duties; •reconciliation of accounts; •proper recording of expenses and liabilities in the period to which they relate; •evidence of internal review and approval of accounting transactions; •documentation of processes, assumptions and conclusions underlying significant estimates; and •documentation of accounting policies and procedures. Because it will take time, management involvement and perhaps outside resources to determine what internal control improvements are necessary for us to meet regulatory requirements and market expectations for our operation of a target business, we may incur significant expenses in meeting our public reporting responsibilities, particularly in the areas of designing, enhancing, or remediating internal and disclosure controls. Doing so effectively may also take longer than we expect, thus increasing our exposure to financial fraud or erroneous financing reporting. Once our management’s report on internal controls is complete, we will retain our registered independent accounting firm to audit and render an opinion on such report when required by Section 404 of the Sarbanes -OxleyAct. The independent auditors may identify additional issues concerning a target business’s internal controls while performing their audit of internal control over financial reporting. Quantitative and Qualitative Disclosures about Market Risk The net proceeds of this offering and the sale of the private placement units held in the trust account will be invested in U.S. government treasury bills with a maturity of 185 days or less or in money market funds meeting certain conditions under Rule 2a -7under the Investment Company Act, which invest only in direct U.S. government treasury obligations. Due to the short -termnature of these investments, we believe there will be no associated material exposure to interest rate risk. Related Party Transactions On May 12, 2025, our sponsor paid $25,000 to cover certain offering costs in exchange for 4,312,500 founder shares. Up to 562,500 founder shares are subject to forfeiture by our sponsor depending on the extent to which the underwriters’ over -allotmentoption is exercised. If none of the founder shares are forfeited, the resulting purchase price would be approximately $0.006 per share. The purchase price of the founder shares was determined by dividing the amount of cash contributed to the Company by the number of founder shares issued. As such, our initial shareholders will collectively own