Company: TACOW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001829126-25-006209
Chunk: 38

Company: Berto Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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 unaudited condensed financial statements, and the reported amounts of income and expenses during the period reported. Actual results could materially differ from those estimates. We have identified the following critical accounting policies:

Offering Costs Associated with the Initial Public Offering

We comply with the requirements of the FASB
ASC 340-10-S99 — “Other Assets and Deferred Costs” — and SEC Staff Accounting Bulletin Topic 5A —
“Expenses of Offering.” Offering costs consist principally of professional and registration fees that were related to
the Initial Public Offering. Offering costs associated with warrants were charged to shareholders’ deficit upon the completion
of the Initial Public Offering. Offering costs associated with the Public Shares were charged against the carrying value of ordinary
shares subject to possible redemption upon the completion of the Initial Public Offering.

Warrant Instruments

We accounted for all of the Public Warrants and
Private Placement Warrants in accordance with FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Accordingly, we evaluated and classified the warrant instruments under equity
treatment at their assigned values. Such guidance provides that the Warrants 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.

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Off-Balance Sheet Arrangements and Contractual Obligations

As of June 30, 2025, we did not have any off-balance sheet arrangements as defined in Item 303(b)(1) of Regulation S-K and did not have any commitments or contractual obligations.

JOBS Act

On April 5, 2012, the JOBS Act was signed into law. The JOBS Act contains provisions that, among other things, relax certain reporting requirements for qualifying public companies. We qualify as an “emerging growth company” under the JOBS Act and are allowed to comply with