Company: AAM-UN
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001213900-25-107616
Chunk: 18

Company: AA Mission Acquisition Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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There is currently no taxation imposed on income by the Government
of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income
taxes are not reflected in the Company’s condensed financial statements.

F-11

Ordinary Shares Subject to Possible Redemption

The Company accounts for its ordinary shares subject to possible redemption
in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic 480 “Distinguishing Liabilities from
Equity.” Ordinary shares subject to mandatory redemption (if any) is classified as a liability instrument and is 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)
is classified as temporary equity. At all other times, ordinary shares are classified as shareholders’ equity. The Company’s
ordinary shares features certain redemption rights that are considered to be outside of the Company’s control and subject to occurrence
of uncertain future events. Accordingly, ordinary shares subject to possible redemption are presented at redemption value as temporary
equity, outside of the shareholders’ equity section of the Company’s balance sheet. The Company recognizes changes in redemption
value immediately as they occur and adjusts the carrying value of redeemable ordinary shares to equal the redemption value at the end
of each reporting period. Increases or decreases in the carrying amount of redeemable ordinary shares are affected by charges against
additional paid in capital and accumulated deficit.

As of September 30, 2025, the ordinary shares subject to possible redemption
reflected in the balance sheet are reconciled in the following table:

    Public offering proceeds 
    $300,000,000 
  
    Less: 

    Proceeds allocated to Public Warrants 
     (21,300,000)
  
    Allocation of offering costs related to redeemable shares 
     (11,700,113)
  
    Plus: 

    Accretion of carrying value to redemption value 
     34,500,113 
  
    Ordinary shares subject to possible redemption 
    $301,500,000 

    Over-allotment 

    Plus: 

    Over-allotment proceeds 
     45,000,000 
  
    Less: 

    Proceeds allocated to Public Warrants 
     (3,195,000)
  
    Allocation of offering costs related to redeemable shares