Company: GSRF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111032
Chunk: 9

Company: GSR IV Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 9
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as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheet. Given that the Class A ordinary
shares sold as part of the units in the offering were issued with other freestanding instruments, the initial carrying value of Class
A ordinary shares classified as temporary equity were the allocated proceeds determined in accordance with ASC 470-20. The resulting discount
to the initial carrying value of temporary equity were accreted upon the closing of this offering such that the carrying value was equal
the redemption value on such date. The accretion or remeasurement is recognized as a reduction to retained earnings, or in the absence
of retained earnings, additional paid-in capital. Accretion associated with the redeemable Class A ordinary shares is excluded from earnings
per share as the redemption value approximates fair value.

Each public shareholder may
elect to redeem their Public Shares without voting and, if they do vote, irrespective of whether they vote for or against the proposed
transaction. In addition, initial shareholders, directors and officers have entered into a letter agreement, pursuant to which they have
agreed to waive their redemption rights with respect to any Founder Shares (as defined below) and Public Shares held by them in connection
with the completion of a Business Combination.

Notwithstanding the foregoing
redemption rights, the Company’s amended and restated memorandum and articles of association provide that a public shareholder,
together with any affiliate of such shareholder or any other person with whom such shareholder is acting in concert or as a “group”
(as defined under Section 13 of the Exchange Act), is restricted from redeeming its shares with respect to more than an aggregate of 15%
of the shares sold in this offering, without the prior consent of the Company.

Completion Window

If the Company is unable
to complete an initial Business Combination within the 18 or 21-month period after the closing of the Initial Public Offering (the “Completion
Window”), it may seek an amendment to amended and restated memorandum and articles of association to extend the period of time to
complete an initial Business Combination beyond 21 months. The Company’s amended and restated memorandum and articles of association
requires at least a special resolution of shareholders as a matter of Cayman Islands law, meaning that such an amendment be approved by
at least two-thirds of ordinary shares who, being entitled to do so, attend and vote (either in person or by proxy) at a general meeting
of the company. If the Company seeks shareholder approval to extend beyond