Company: JUPGF
Filing Date: 2025-10-08
Form Type: F-1/A
Source: 0001493152-25-017439
Chunk: 188

Company: ATLAS CRITICAL MINERALS Corp
Filing Date: 2025-10-08
Form: F-1/A
Chunk 188
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 Update to improve the
relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt— Debt with Conversion and Other
Options. The amendments in this Update clarify the requirements for determining whether certain settlements of convertible debt instruments
should be accounted for as an induced conversion. The amendments in this Update are effective for all entities for annual reporting periods
beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for
all entities that have adopted the amendments in Update 2020-06. Management does not expect this new guidance to have any impacts on the
Company’s consolidated financial statements.

| F-11 |

NOTE 2 – ACCOUNTING IMPACTS ARISING FROM THE MERGER WITH APOLLO

As discussed in Note 1, Organization and Description of Business, on November 19, 2024, the Company consummated a merger transaction through which Apollo Resources Corporation (“Apollo”), an entity under the same control of the Company, was merged with and into the Company. Such a transfer of net assets between entities under the control of the same parent is referred to under US GAAP as a common-control transaction.

The growing demand for critical minerals needed for
clean energy technologies and high-tech applications presents significant long-term opportunities. The Company’s goal is to become
a leading critical mineral resources company supplying materials for the rapidly growing clean energy technologies. The acquisition of
Apollo Resources’ mineral rights on critical minerals strengthens the Company’s portfolio of critical minerals and improves
its position to become a leading supplier in this industry.

The fair value of the net assets acquired was determined at $14 million
based on an independent opinion prepared by RPM Global Canada Limited (“RPM”).

While a common-control asset acquisition transaction is similar to a business combination for the entity that receives the net assets or equity interests, such a transaction does not meet the definition of a business combination. Acquisition of assets that are under common control are excluded from the scope of the business combinations guidance and are addressed specifically by subsection ASC 805-50, which requires the receiving entity to recognize the net assets received at their historical carrying amounts, as reflected in the ultimate parent’s financial statements.

The table below presents the consolidated balance sheet of the Company in the effective date of the merger and the accounting impacts arising from the recognition of the net assets of Apollo at their historical carrying value, as required by ASC 805-50 for common-control transactions:

SCHEDULE OF MERGER CONSOLIDATED BAL