Company: IBACR
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006426
Chunk: 50

Company: IB Acquisition Corp.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 8
Chunk 50
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 on September 11, 2024, to the Company’s
directors and director nominees was approximately $499,000 or approximately $9.98 per share. The Founders Shares were granted subject
to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founders Shares is recognized
only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance. As of
December 31, 2024, the Company determined that a Business Combination is not considered probable, and, therefore, no stock-based compensation
expense has been recognized. Stock-based compensation would be recognized at the date a Business Combination is considered probable (i.e.,
upon consummation of a Business Combination) in an amount equal to the number of Founders Shares times the grant date fair value per
share (unless subsequently modified) less the amount initially received for the purchase of the Founders Shares.

The
Founder Shares issued to the directors and director nominees were valued using a Black-Scholes model. The following criteria presents
the quantitative information regarding market assumptions used in the Founder Share valuations:

 SCHEDULE OF FAIR VALUE OF MARKET ASSUMPTIONS USED IN THE FOUNDER SHARE VALUATIONS

    November 15, 2023  
    January 15, 2024 
  
    Volatility 
     5.0% 
     5.0%
  
    Risk-free rate 
     4.8% 
     4.1%
  
    Spot price 
    $8.95  
    $9.46 
  
    Discount of lack of marketability (DLOM) 
     0.2% 
     0.4%
  
    Equity measurement input 
     0.2% 
     0.4%

Administrative
Services Agreement

The
Company entered into an Administrative Services Agreement pursuant to which the Company agreed to pay the Chief Financial Officer a sum
of $5,000 per month commencing on October 1, 2023. Upon completion of the initial business combination or the liquidation, the Company
will cease paying these monthly fees. On January 22, 2024, the Company’s Chief Financial Officer resigned and the Administrative
Services Agreement was terminated.

On
January 22, 2024, the Company appointed a new Chief Financial Officer and entered into an Administrative Services Agreement dated January
24, 2024, pursuant to which the Company agreed to pay