Company: GSHRW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-075907
Chunk: 67

Company: Gesher Acquisition Corp. II
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 67
---
 on the Company’s
behalf, for which the Company issued 5,513,483 Class B Ordinary Shares (the “Founder Shares”) to the Sponsor. Up to 622,231
of the Founder Shares were subject to surrender by the Sponsor for no consideration depending on the extent to which the underwriters’
Over-Allotment Option was exercised. On March 24, 2025, the underwriters exercised their Over-Allotment Option in full as part of the
closing of the Initial Public Offering. As such, the 622,231 Founder Shares are no longer subject to forfeiture. The Sponsor is holding
5,198,483 Founder Shares, after giving effect to the Founder Share interest assignment described below.

On March 5, 2025, the Sponsor granted membership
interests equivalent to an aggregate of 315,000 Founder Shares to the four independent directors, the chief financial officer (“CFO”),
and two service providers, in exchange for their services as independent directors, CFO, and service providers, respectively, to the Company
through the initial Business Combination. The Founder Shares, represented by such membership interests, will remain with the Sponsor if
the holder of such membership interests is no longer serving the Company prior to the initial Business Combination. The membership interest
assignment of the Founder Shares to the holders of such interests are in the scope of ASC 718. Under ASC 718, share-based compensation
associated with equity-classified awards is measured at fair value upon the assignment date. The total fair value of the 315,000 Founder
Shares represented by such membership interests assigned to the holders of such interests on March 5, 2025 was $472,500 or $1.50 per share.
The membership interests were assigned subject to a performance condition (i.e., providing services through Business Combination). Share-based
compensation would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination)
in an amount equal to the number of membership interests that ultimately vest times the assignment date fair value per share (unless subsequently
modified) less the amount initially received for the assignment of the membership interests. As of June 30, 2025, the Company determined
that the initial Business Combination is not considered probable and therefore no compensation expense has been recognized.

The Founder Shares are designated as Class B Ordinary
Shares and, except as described below, are identical to the Public Shares and holders of Founder Shares have the same shareholder rights