Company: GSRF
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-111032
Chunk: 19

Company: GSR IV Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Item 1
Chunk 19
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 of the Company’s issued and outstanding shares
after the Initial Public Offering as the over-allotment option was exercised in full by the underwriters..

On August 18, 2025, the Sponsor
transferred 60,000 Founder Shares to the three independent directors (20,000 Founder Shares per director) of the Company, at a price of
$0.004348 per share. Each buyer paid $86.96 for an aggregate purchase price of $260.88 in consideration of the assignment of shares. If
the director ceases to be a director of the Company for any reason before the consummation of the Business Combination, at the Sponsor’s
election, it will either repurchase the shares at the purchase price or forfeit the shares back to the Company for no consideration. The
Founder Shares will automatically convert into shares of Class A ordinary shares at the time of the Business Combination on a one-for-one
basis, subject to adjustment as described in the Company’s certificate of incorporation.

The sale of the Founder Shares
to the Company’s directors by the Sponsor 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. The fair value of the 60,000 shares granted to the Company’s directors and management person was at the acquisition price
per share of $0.004348.

The Founder Shares were granted
subject to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founders Shares
is recognized only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance.
Stock-based compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business
Combination) in an amount equal to the number of Founders Shares times the grant date fair value per share (unless subsequently modified)
less the amount initially received for the purchase of the Founder Shares.

Administrative Services Agreement

Commencing on September 5,
2025, the Company entered into an agreement to pay the Sponsor a total of up to $55,556 per month for office space and administrative
and support services. Upon completion of a Business Combination or its liquidation, the Company will cease paying these monthly fees.
For the three and nine months ended September 30, 2025, the Company incurred $55,556 in fees