Company: DMAAR
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076681
Chunk: 78

Company: Drugs Made In America Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 78
---
 June 30, 2025 
  
    Assets: 

    Investments held in Trust Account 
     1  
    $235,155,966 

    Level  
    January 29, 2025 
  
    Assets: 

    Investments held in Trust Account 
     1  
    $201,000,000 
  
    Liabilities: 

    Over-allotment option 
     3  
    $305,179 
  
    Equity: 

    Fair value of Public Rights for ordinary shares subject to possible redemption allocation 
     3  
    $2,978,000 

The over-allotment option was accounted for as
a liability in accordance with ASC 815-40 and is measured at fair value at inception and on a recurring basis, with changes in fair value
presented within change in fair value of over-allotment liability in the statement of operations. In February 2025 the over-allotment
option was exercised in full by the underwriters and ceased to exist thereafter.

The Company used a Black-Scholes model to value
the over-allotment option. The over-allotment option liability was classified within Level 3 of the fair value hierarchy at the measurement
date due to the use of unobservable inputs inherent in pricing models are assumptions related to expected share-price volatility, expected
life and risk-free interest rate. The Company estimates the volatility of its ordinary share based on historical volatility that matches
the expected remaining life of the option. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield curve on the grant
date for a maturity similar to the expected remaining life of the option. The expected life of the option is assumed to be equivalent
to their remaining contractual term.

The rights were valued using an iterative analysis
based on market comparable. The following criteria was utilized to select comparable Special Purpose Acquisition Companies who were pre-business
combination and included rights as part of their units that were publicly trading with significant time remaining to complete their initial
business combination:

    Criteria 
    Low  
    High 
  
    IPO Proceeds 
     60  
     250 
  
    Warrant Coverage 
     -  
     0.5 
  
    Rights Coverage (per unit) 
     0.05  
     0.13 
  
    Remaining Months to Complete 
     7  
     21 

17

DRUGS