Company: PMVC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001213900-25-107610
Chunk: 262

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 4
Chunk 262
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 due to a loss of investor
confidence in us and the reliability of our financial statements. Confidence in the reliability of our financial statements is also likely
to suffer if we report a material weakness in the effectiveness of our internal control over financial reporting. This could materially
adversely affect us by, for example, leading to a decline in the price of our shares/warrants and impairing our ability to attract a
business opportunity and/or consummate a transaction.

Our
warrants are accounted for as liabilities and changes in the value of our warrants could have a material effect on our financial results.

On
April 12, 2021, the SEC Staff expressed its view that certain terms and conditions common to SPAC warrants may require the warrants to
be classified as liabilities instead of equity on the SPAC’s balance sheet. As a result of the SEC Staff Statement, we re-evaluated
the accounting treatment of our warrants, and determined to classify the warrants as derivative liabilities measured at fair value, with
changes in fair value reported in our statement of operations for each reporting period.

As
a result, included on our balance sheets as of September 30, 2025 and December 31, 2024, and contained elsewhere in this report, are
derivative liabilities related to embedded features contained within our warrants. ASC 815-40 provides for the re-measurement of the
fair value of such derivatives at each balance sheet date, with a resulting non-cash gain or loss related to the change in the fair value
being recognized in earnings in the statement of operations. As a result of the recurring fair value measurement, our financial statements
and results of operations may fluctuate quarterly based on factors which are outside of our control. Due to the recurring fair value
measurement, we expect that we will recognize non-cash gains or losses on our warrants each reporting period and that the amount of such
gains or losses could be material.

Changes
in laws or regulations, or a failure to comply with any laws and regulations, may adversely affect our business, including our ability
to identify a potential business opportunity and/or negotiate and complete a transaction, and results of operations.

We
are subject to laws and regulations enacted by national, regional and local governments. In particular, we will be required to comply
with certain SEC and other legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult,
time consuming and costly. Those laws and regulations and their interpretation and application may also change from time