Company: TACOW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001829126-25-009131
Chunk: 14

Company: Berto Acquisition Corp.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
---
    Less:

    Proceeds allocated to Public Warrants

    (2,161,080
    )
  
    Public Shares issuance costs

    (17,631,063
    )
  
    Plus:

    Accretion of carrying value to redemption value

    21,876,083

    Public Shares subject to possible redemption - June 30, 2025 (unaudited)

    302,233,940

    Plus:

    Accretion of carrying value to redemption value

    3,343,285

    Public Shares subject to possible redemption - September 30, 2025 (unaudited)
     
    $
    305,577,225

Warrant Instruments

The Company accounted for all of the Public Warrants and Private Placement Warrants in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Accordingly, the Company evaluated and classified the warrant instruments under equity treatment at their assigned values. Such guidance provides that the Warrants (as defined below) will not be precluded from equity classification. Equity-classified contracts are initially measured at fair value (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in equity in accordance with ASC 480 and ASC 815. The fair value of the Public Warrants and the Private Placement Warrants was measured at the issuance date using Monte Carlo simulation method. The model utilized the following Level 3 measurement inputs: an exercise price of $11.50, estimated underlying stock price of $10.07, volatility rate of 5.4%, risk free rate of 3.9% and expected terms of 7.01 years, resulting in a fair value per warrant of approximately $0.144.

Net Income per Ordinary Share

The Company complies with accounting and
disclosure requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of shares, which are
referred to as Public Shares and Founder Shares (as defined in Note 5). Income and losses are shared pro rata between the two
classes of shares. Net loss per ordinary share  is calculated by dividing the net loss by the weighted average number
of ordinary shares  outstanding for the respective period. The Company has not considered the effect of the Public
Warrants and the Private Placement Warrants to purchase an aggregate of 6,044,160 shares
in