Company: IBACR
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006426
Chunk: 18

Company: IB Acquisition Corp.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 18
---
 liquidation,
merger, stock exchange or other similar transaction after its initial business combination that results in all of its public stockholders
having the right to exchange their shares of common stock for cash, securities or other property.

Notwithstanding
the foregoing, if the last sale price of the Company’s common stock equals or exceeds $12.00 per share (as adjusted for stock splits,
stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing
at least 150 days after its initial business combination, the Founder Shares will be released from the lock-up.

Due
to Sponsor

As
of December 31, 2024 and September 30, 2024, the Company had due to Sponsor in amount of $0 and $0, respectively. The Sponsor has purchased
an aggregate of 610,500 Private Placement Units at a price of $10.00 per Private Placement Unit from the Company in a private placement,
of which $50,000 was deposited to the Company as of September 30, 2023 to cover the Company’s operating cost and deferred offering
cost and the balance was deposited with the closing of the Proposed Public Offering.

Subscription
Agreements

From
October 2023 through January 2024, the Company’s Sponsor entered into six subscription agreements to sell membership interests
in the Sponsor to members of management, directors and director nominees. The membership interests represent the indirect equivalent
of 525,000 Founders Shares which equates to 16.19% of the 3,243,590 Founders Shares issued and outstanding. The total purchase price
paid for the membership interests was $2,500. The Company modified the agreements in February 2024, with the intent to clarify that the
Founder Shares are “earned upon the completion of a successful Business Combination” and the modified agreement is to be
effective contemporaneously with the date and time of the initial subscription agreements. The sale of the membership interests to the
Company’s management, directors and director’s nominees is in the scope of FASB ASC Topic 718, “Compensation-Stock
Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured
at fair value upon the grant date.

On
January 22, 2024, one of the subscription agreements representing an indirect equivalent of 100,000 Founders Shares or 3.08% of the