Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 245

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 245
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 the fair value
reported in the statement of operations. The classification of derivative instruments, including whether such instruments should be recorded
as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet
as current or non-current based on whether or not net cash settlement or conversion of the instrument could be required within 12 months
of the balance sheet date. The underwriters’ over-allotment option is deemed to be a freestanding financial instrument indexed on
the contingently redeemable shares and was accounted for as a liability pursuant to ASC 480, with the changes in fair value of the
over-allotment liability recorded in the statements of operations.

Warrant Instruments

The Company accounts for the Public and Private
Warrants 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 warrant instruments
under equity treatment at their assigned values.

Class A 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 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 an 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’ deficit section of the Company’s balance sheet. As of December 31, 2024, the Class A
ordinary shares subject to redemption reflected in the balance sheet are reconciled in the following table:

| Gross proceeds                                                            |     | $ | 153,000,000 |   |
| Less:                                                                     |     |   |             |   |