Company: DMAAR
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-046061
Chunk: 55

Company: Drugs Made In America Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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5, cash and investments held in
the Trust Account were held in money market funds which invest in U.S. Treasury securities. All of the Company’s cash and investments
held in the Trust Account are classified as trading securities. Trading securities are presented on the unaudited balance sheets at fair
value at the end of each reporting period. Gains and losses resulting from the change in fair value of cash and investments held in the
Trust Account are included in interest earned on cash and investments held in Trust Account in the accompanying unaudited statement of
operations. The estimated fair values of cash and investments held in Trust Account are determined using available market information.
Fair values of these investments are determined by Level 1 inputs utilizing quoted prices (unadjusted) in active markets for identical
assets.

Offering Costs

The Company complies with the requirements
of the ASC 340-10-S99 and SEC Staff Accounting Bulletin (“SAB”) Topic 5A — “Expenses of
Offering”. Offering costs consist principally of professional and registration fees that are related to the Initial Public
Offering. FASB ASC 470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds from the
issuance of convertible debt into its equity and debt components. The Company applies this guidance to allocate Initial Public
Offering proceeds from the Units between ordinary shares and rights, using the residual method by allocating Initial Public
Offering proceeds first to assigned value of the rights and then to the ordinary shares. Offering costs allocated to the ordinary
shares were charged to temporary equity and offering costs allocated to the public and private placement rights were charged to
shareholders’ deficit as public and private placement rights after management’s evaluation were accounted for under
equity treatment.

Income Taxes

The Company accounts for income taxes under ASC
Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting for income
taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets
and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods
in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred
tax assets to the amount expected to be realized.

ASC Topic 740 prescribes a recognition threshold
and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in
a