Company: WELNF
Filing Date: 2025-12-04
Form Type: DEFA14A
Source: 0001104659-25-118484
Chunk: 23

Company: Integrated Wellness Acquisition Corp
Filing Date: 2025-12-04
Form: DEFA14A
Chunk 23
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. Management concluded that the Public Warrants and Private Placement Warrants issued pursuant to the warrant
agreement qualify for equity accounting treatment.

Fair Value Measurements

Fair value is defined as the
price that would be received for the sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants
at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

| ● | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |

| ● | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |

| ● | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as calculations derived from valuation techniques in which one or more significant inputs or significant value drivers are observable. |

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In many cases, a valuation
technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy described above. The lowest level
of significant input determines the placement of the entire fair value measurement in the hierarchy.

The fair value of the Company’s
financial assets and liabilities approximates the carrying amounts represented in the condensed consolidated balance sheets, primarily
due to its short-term nature.

Income taxes

The Company accounts for income
taxes in accordance with the provisions of ASC Topic 740, “Income Taxes” using the asset and liability method and deferred
tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts
of assets and liabilities in the condensed consolidated financial statements and their respective tax basis. Deferred tax assets and liabilities
are measured using enacted income tax rates expected to apply to the period when assets are realized or liability is settled. Any effect
on deferred tax assets and liabilities of a change in tax rates is recognized in the operation of statement in the period that includes
the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than
not that some