Company: ONCHW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110042
Chunk: 14

Company: 1RT Acquisition Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 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 shares
will result in charges against additional paid-in capital (to the extent available) and accumulated deficit. Accordingly, as of September
30, 2025 and December 31, 2024, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary
equity, outside of the shareholders’ deficit section of the Company’s unaudited condensed balance sheets. As of September
30, 2025 and December 31, 2024, the Class A ordinary shares subject to possible redemption reflected in the unaudited condensed balance
sheets are reconciled in the following table: 

    Gross proceeds 
    $172,500,000 
  
    Less: 

    Proceeds allocated to public warrants 
     (1,854,375)
  
    Public shares issuance costs 
     (11,723,199)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     13,577,574 
  
    Class A Ordinary shares subject to possible redemption, July 3, 2025 
     172,500,000 
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     1,683,318 
  
    Class A Ordinary shares subject to possible redemption, September 30, 2025 
    $174,183,318 

8

 1RT ACQUISITION CORP. NOTES TO CONDENSED FINANCIAL STATEMENTS SEPTEMBER 30, 2025 (Unaudited)

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 tax return. For those benefits to be recognized, a