Company: ATMCW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011749
Chunk: 16

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 8
Chunk 16
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 1,335,250 ordinary shares subject to possible redemption are presented
at redemption value of $11.68 per share as temporary equity, outside of the shareholders’ equity section of the Company’s
balance sheets. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying value of redeemable
ordinary shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable
ordinary shares are affected by charges against additional paid in capital and accumulated deficit. The Company allocates gross proceeds
between the Public Shares, Public Warrants and Public Rights based on the relative fair values of the Public Shares, Public Warrants and
Public Rights.

At March 31, 2025, the ordinary shares reflected in
the balance sheets are reconciled in the following table:

  Schedule of Subject to Possible Redemption 

    Ordinary shares subject to possible redemption – December 31, 2024 
    $15,240,284 

    Redemption of public shares 
     - 
  
    Subsequent measurement of ordinary shares subject to possible redemption (income earned on trust account) and extension deposit 
     356,350 
  
    Ordinary shares subject to possible redemption - March 31, 2025 
    $15,596,634 

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 included 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 unrecognized
tax benefits and no amounts accrued for interest and penalties as of March 31