Company: SPEG
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110444
Chunk: 71

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 71
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, 2025 and December
31, 2024, there were no unrecognized tax benefits and no amounts accrued for interest and penalties. 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 is considered to be an exempted Cayman
Islands company with no connection to any other taxable jurisdiction and is presently not subject to income taxes or income tax filing
requirements in the Cayman Islands or the United States. As such, the Company’s tax provision was zero for the periods presented.

Warrant Instruments

At September 30, 2025 and December 31, 2024,
there were 3,250,000 and 0 warrants issued or outstanding, respectively. The Company accounted for the warrants issued in connection
with the private placement in accordance with the guidance contained in FASB ASC 815, “Derivatives and Hedging”, whereby
under that provision the warrants do not meet the criteria for equity treatment and must be recorded as a liability. Accordingly, the
Company evaluated and determined the warrant instrument is to be classified as a liability at fair value and will adjust the instrument
to fair value at each reporting period. This liability will be re-measured at each balance sheet date until the warrants are exercised
or expire, and any change in fair value will be recognized in the Company’s unaudited condensed statements of operations.

10

SILVER PEGASUS ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited) 

Share Rights

At September 30, 2025 and December 31, 2024,
there were 11,500,000 and 0 warrants issued or outstanding, respectively. The Company accounted for the share rights issued in connection
with the Initial Public Offering in accordance with the guidance contained in FASB ASC Topic 815, “Derivatives and Hedging”.
Accordingly, the Company evaluated and classified the share rights under liability at fair value and will adjust the instrument to fair
value at each reporting period. This liability will be re-measured at each balance sheet date until the rights are exercised or expire,
and any change in fair value will be recognized in the Company’s unaudited condensed statements of operations.

Net Loss per Ordinary Share

The Company complies with accounting and disclosure
requirements of FASB ASC Topic