Company: QSEA
Filing Date: 2025-02-24
Form Type: S-1
Source: 0001829126-25-001168
Chunk: 270

Company: Quartzsea Acquisition Corp
Filing Date: 2025-02-24
Form: S-1
Chunk 270
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 is recognized in income in the period that included the enactment date. Valuation allowances
are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. ASC 740 prescribes a recognition
threshold and a measurement attribute for the financial statement recognition and measurement of tax positions 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. 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 November 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.

There is currently no taxation imposed on income
by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company.
Consequently, income taxes are not reflected in the Company’s financial statements.

<div align='center'>F-10</div>

<div align='center'>QUARTZSEA ACQUISITION CORPORATION

NOTES TO FINANCIAL STATEMENTS</div>

Note 2 — Summary of Significant Accounting Policies (cont.)

Net Loss Per Ordinary Share

Net loss per ordinary share is computed by dividing
net loss by the weighted average number of shares of ordinary shares outstanding during the period, excluding shares of ordinary shares
subject to forfeiture. Weighted average shares were reduced for the effect of an aggregate of 315,000 shares of ordinary shares that
are subject to forfeiture if the over-allotment option is not exercised in full by the underwriters (see Notes 5). As of November 30,
2024, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares
of ordinary shares and then share in the earnings of the Company. As a result, diluted loss per ordinary share is the same as basic loss
per ordinary share for the period presented.

Concentration of Credit Risk

Financial instruments that potentially subject the
Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and management believes the Company
is not exposed to significant risks on such account.

Fair Value of Financial Instruments

The