Company: ATIIU
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001437749-25-016848
Chunk: 24

Company: Archimedes Tech SPAC Partners II Co.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 24
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 guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”, whereby under that provision, the warrants that do not meet the criteria for equity treatment must be recorded as liability. Accordingly, the Company evaluated and classified the warrant instruments under equity treatment at their assigned values.

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       ARCHIMEDES TECH SPAC PARTNERS II CO. NOTES TO CONDENSED FINANCIAL STATEMENTS  MARCH 31, 2025 (UNAUDITED)

   The fair value of the Public Warrants is $1,725,000, or $0.15 per Public Warrant. The fair value of Public Warrants was determined using Monte Carlo Simulation Model. The Public Warrants have been classified within shareholders’ deficit and will not require remeasurement after issuance. The following table presents the quantitative information regarding market assumptions used in the valuation of the Public Warrants:

       February 12, 2025  
 Implied ordinary share price  $9.93 
 Exercise price  $11.50 
 Simulation term (years)   6.5 
 Risk-free rate (continuous)   4.49%
 Selected volatility   3.0%
 Calculated value per warrant  $0.15 
 Probability of de-SPAC and market adjustment   11.0%

   Ordinary Shares Subject to Possible Redemption
    
   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 possible 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 amount 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  March 31, 2025, the ordinary shares subject to possible redemption are presented at redemption value as temporary equity, outside of the shareholders’ deficit section of the Company’s balance sheets. As of  March 31, 2025