Company: COPL-UN
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001829126-25-009051
Chunk: 14

Company: Copley Acquisition Corp
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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A, “Expenses of Offering.”
Deferred offering costs consist of legal, accounting, and other costs (including underwriting discounts and commissions) incurred through
the balance sheet date that are directly related to the Initial Public Offering. ASC 470-20, “Debt with Conversion and Other Options,”
addresses the allocation of proceeds from the issuance of convertible debt into its equity and debt components.

The Company applies this
guidance to allocate Initial Public Offering proceeds from the Units between Class A ordinary shares and warrants, using the residual
method by allocating Initial Public Offering proceeds first to assigned value of the warrants and then to the Class A ordinary shares.
Offering costs allocated to the Public Shares were charged to temporary equity, and offering costs allocated to the Public Warrants and
the Private Placement Units were charged to shareholders’ deficit as the Public Warrants and the Private Placement Warrants, after
management’s evaluation, are accounted for under equity treatment. As of September 30, 2025 and December 31, 2024, the Company had deferred
offering costs of $0 and $436,025, respectively.

    10

Net Income per Ordinary Share

The Company complies with accounting and disclosure
requirements of ASC 260, “Earnings Per Share.” The statements of operations include a presentation of income per redeemable
share and income per non-redeemable share following the two-class method of income per share. In order to determine the net income attributable
to both the redeemable shares and non-redeemable shares, the Company first considered the undistributed income allocable to both the
redeemable shares and non-redeemable shares and the undistributed income is calculated using the total net income less any dividends
paid. The Company then allocated the undistributed income ratably based on the weighted average number of shares outstanding between
the redeemable and non-redeemable shares. The calculation of diluted net income per share does not consider the effect of the Public
Warrants or Private Placement Warrants since the exercise of the warrants is contingent upon the occurrence of a future event. As
of September 30, 2025, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted
into ordinary shares and then share in the earnings of the Company. As a result, diluted net income per share is the same as basic net
income per share for the periods presented.

The net income per share presented
in the condensed statements