Company: PCAP
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001213900-25-074297
Chunk: 103

Company: ProCap Acquisition Corp
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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obligations, operating lease obligations or long-term liabilities, other than an agreement to pay an affiliate of the Sponsor an aggregate
of $10,000 per month for office space, utilities, management, operations, and secretarial and administrative support services.

The underwriters were entitled to a deferred underwriting
discount of $11,250,000 (4.50% of the gross proceeds of the Initial Public Offering held in the Trust Account), payable upon the completion
of the Company’s initial Business Combination subject to the terms of the underwriting agreement, but $0.10 per unit of such $0.45
per unit shall be due solely on amounts remaining in the Trust Account following all properly submitted shareholder redemptions in connection
with the consummation of the initial Business Combination and $0.05 per unit of such $0.45 per unit shall be allocable by the Company.

Critical Accounting Estimates

The preparation of the unaudited financial statements
and related disclosures in conformity with GAAP requires Management to make estimates and assumptions that affect the reported amounts
of assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited financial statements, and income
and expenses during the periods reported. Making estimates requires Management to exercise significant judgment. It is at least reasonably
possible that the estimate of the effect of a condition, situation or set of circumstances that existed at the date of the unaudited financial
statements, which Management considered in formulating its estimate, could change in the near term due to one or more future confirming
events. Accordingly, the actual results could materially differ from those estimates. As of June 30, 2025, we did not have any critical
accounting estimates to be disclosed.

19

Item 3. Quantitative and Qualitative Disclosures
About Market Risk

We are a smaller reporting company as defined
by Rule 12b-2 of the Exchange Act and are not required to provide the information otherwise required under this Item.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures are designed
to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported
within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our
management, including our principal executive officer and principal financial officer or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure.

As required by Rules