Company: AAM-UN
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001213900-25-107616
Chunk: 176

Company: AA Mission Acquisition Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part II, Item 8
Chunk 176
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 paid to transfer a liability in the Company’s principal or most advantageous market
in an orderly transaction between market participants on the measurement date. The fair value hierarchy established in ASC 820 generally
requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable
inputs reflect the assumptions that market participants would use in pricing the asset or liability and are developed based on market
data obtained from sources independent of the reporting entity. Unobservable inputs reflect the entity’s own assumptions based on
market data and the entity’s judgments about the assumptions that market participants would use in pricing the asset or liability
and are to be developed based on the best information available in the circumstances.

●Level 1-Assets and liabilities with unadjusted, quoted prices listed on active market exchanges. Inputs to the fair value measurement
are observable inputs, such as quoted prices in active markets for identical assets or liabilities.

●Level 2-Inputs to the fair value measurement are determined using prices for recently traded assets and liabilities with similar
underlying terms, as well as direct or indirect observable inputs, such as interest rates and yield curves that are observable at commonly
quoted intervals.

●Level 3-Inputs to the fair value measurement are unobservable inputs, such as estimates, assumptions, and valuation techniques
when little or no market data exists for the assets or liabilities.

Income Taxes

The Company follows the asset and liability method of accounting for
income taxes under ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax
consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their
respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in
the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities
of a change in tax rates is recognized in income in the period that is included in 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