Company: QSEA
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001829126-25-003185
Chunk: 40

Company: Quartzsea Acquisition Corp
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 40
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 in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from
Equity” (ASC 480). Ordinary shares subject to mandatory redemption (if any) will be classified as a liability instrument and
will be measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights
that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within
the Company’s control) will be classified as temporary equity. At all other times, ordinary shares will be classified as
stockholders’ equity. In accordance with ASC 480-10-S99, the Company classifies the ordinary shares subject to redemption
outside of permanent equity as the redemption provisions are not solely within the control of the Company. Given that the 8,280,000
ordinary shares (valued at $10 per share) sold as part of the Units in the IPO were issued with other freestanding instruments
(i.e., rights), the initial carrying value of ordinary shares classified as temporary equity has been allocated to the proceeds
determined in accordance with ASC 470-20. If it is probable that the equity instrument will become redeemable, the Company has the
option to either (i) accrete changes in the redemption value over the period from the date of issuance (or from the date that it
becomes probable that the instrument will become redeemable, if later) to the earliest redemption date of the instrument or (ii)
recognize changes in the redemption value immediately as they occur and adjust the carrying amount of the instrument to equal the
redemption value at the end of each reporting period. The Company has elected to recognize the changes immediately. The initial
accretion and subsequent remeasurements will be treated as a deemed dividend (i.e., a reduction to retained earnings, or in absence
of retained earnings, additional paid-in capital).

Net Loss Per Ordinary Share

Net loss per ordinary share is computed by dividing net loss by the weighted average number of shares of ordinary shares outstanding during the period, excluding shares of ordinary shares subject to forfeiture. Weighted average shares were reduced for the effect of an aggregate of 378,000 shares of ordinary shares that are subject to forfeiture if the over-allotment option is not exercised in full by the underwriters (see Notes 5). As of February 28, 2025, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into