Company: IBACR
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006426
Chunk: 14

Company: IB Acquisition Corp.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of
December 31, 2024 and September 30, 2024, the Company’s deferred tax asset had a full valuation allowance recorded against it.
Our effective tax rate was (24.1)% for the three months ended December 31, 2024. Our effective tax rate was 0.00% for the three months
ended December 31, 2023. The effective tax rate differs from the statutory tax rate of 21% for December 31, 2024 and September 30, 2024,
due to the valuation allowance on the deferred tax assets.

ASC
740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s unaudited financial statements
and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position
taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be
sustained upon examination by taxing authorities. ASC 740 also provides guidance on derecognition, classification, interest and penalties,
accounting in interim period, disclosure and transition.

The
Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. There were no unrecognized
tax benefits and no amounts accrued for interest and penalties as of December 31, 2024 and September 30, 2024. The Company is currently
not aware of any issues under review that could result in significant payments, accruals or material deviation from its position.

The
Company has identified the United States as its only “major” tax jurisdiction. The Company is subject to income taxation
by major taxing authorities since inception. These examinations may include questioning the timing and amount of deductions, the nexus
of income among various tax jurisdictions and compliance with federal and state tax laws. The Company’s management does not expect
that the total amount of unrecognized tax benefits will materially change over the next twelve months. 

Net
Income (Loss) Per Common Stock

The
Company complies with the accounting and disclosure requirements of FASB ASC Topic 260, “Earnings Per Share”. Net income
(loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding
for the period. Accretion associated with the redeemable shares of common stock is excluded from earnings (