Company: JACS-RI
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001013762-25-000620
Chunk: 153

Company: Jackson Acquisition Co II
Filing Date: 2025-03-18
Form: 10-K
Item: Item 1
Chunk 153
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 on the Company’s financial condition, results of operations, and cash flows.

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under ASC Topic 820, “Fair Value Measurement,” approximates the carrying
amounts represented in the accompanying balance sheet, primarily due to their short-term nature.

F-11

Share Rights

The Company accounts for the Public and Private
Placement Rights issued in connection with the Initial Public Offering and the private placement in accordance with the guidance contained
in FASB ASC Topic 815, “Derivatives and Hedging”. Accordingly, the Company evaluated and classified the rights under equity
treatment at its assigned value.

Class A Redeemable Share Classification

The Public Shares contain a redemption feature
which allows for the redemption of such Public Shares in connection with the Company’s liquidation, or if there is a shareholder
vote or tender offer in connection with the Company’s initial Business Combination. In accordance with ASC 480-10-S99, the Company
classifies Public Shares subject to redemption outside of permanent equity as the redemption provisions are not solely within the control
of the Company. The Company recognizes changes in redemption value immediately as they occur and will adjust the carrying value of redeemable
shares to equal the redemption value at the end of each reporting period. Immediately upon the closing of the Initial Public Offering,
the Company recognized the accretion from initial book value to redemption value. The change in the carrying value of redeemable shares
will result in charges against additional paid-in capital (to the extent available) and accumulated deficit. Accordingly, as of December
31, 2024, Class A ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the
shareholders’ equity section of the Company’s balance sheet. As of December 31, 2024, the Class A ordinary shares subject
to possible redemption reflected in the balance sheet are reconciled in the following table:

    Shares  
    Amount 
  
    Gross proceeds 
     23,000,000  
    $230,000,000 
  
    Less: 

    Proceeds allocated to Public Share Rights 
        
     (2,760,000)
  
    Class A ordinary shares issuance costs 
        
     (5,076,432)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
        
     10,694,