Company: IBACR
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010982
Chunk: 15

Company: IB Acquisition Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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. Increases or decreases in the carrying
amount of redeemable shares are affected by charges against retained earnings or additional paid-in capital in the absence of retained
earnings.

As
of March 31, 2025 and September 30, 2024, the common stock subject to redemption reflected in the balance sheet are reconciled in the
following table:

 SCHEDULE OF COMMON STOCK SUBJECT TO REDEMPTION

    Gross proceeds 
    $115,000,000 
  
    Less: 

    Proceeds allocated to Public Rights 
     (2,415,000)
  
    Common stock issuance costs 
     (7,571,317)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     12,952,678 
  
    Common stock subject to possible redemption, September 30, 2024 
    $117,966,361 
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     2,071,120 
  
    Common stock subject to possible redemption, March 31, 2025 
    $120,037,481 

Income
Taxes

The
Company accounts for income taxes under ASC 740, “Income Taxes.” ASC 740, Income Taxes, requires the recognition of deferred
tax assets and liabilities for both the expected impact of differences between the financial statements and tax basis of assets and liabilities
and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation
allowance to be established when it is more likely than not that all or a portion of deferred tax assets will not be realized. As of
March 31, 2025 and September 30, 2024, the Company’s deferred tax asset had a full valuation allowance recorded against it. Our
effective tax rate was 24.16% and 0% for the three months ended March 31, 2025 and 2024, respectively, and 24.13% and 0% for the six
months ended March 31, 2025 and 2024, respectively. The effective tax rate differs from the statutory tax rate of 21% for the period
ended March 31, 2025 and September 30, 2024, due to the valuation allowance on the deferred tax assets.

ASC
740 also clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s unaudited