Company: APAD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108829
Chunk: 40

Company: AParadise Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 proceeds of the offering, or up to $8,000,000 in the aggregate (or $9,200,000 in the aggregate if the underwriter’s
over-allotment option is exercised in full), payable based on the funds available in the Trust Account after redemptions of Public Shares,
solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. The Company
recorded the deferred underwriting fee payable in the balance sheet as of July 31, 2025, by referring to ASC 450 that deferred underwriter
fees should be recognized upon the close of IPO if the Business Combination is probable of occurring, and the underwriter fee can be reasonably
estimated.

Critical Accounting Policies

The preparation of 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 financial statements, and income and expenses during the
periods reported. Actual results could materially differ from those estimates. We have not identified any critical accounting estimates.
We have identified the following critical accounting policies:

Class A Ordinary Shares Subject to Possible
Redemption

The Company accounts for its Class A ordinary
shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity”
(ASC 480). Class A 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 Class A 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 20,000,000 Class A ordinary shares sold as part of the Units
in the Company’s IPO were issued with other freestanding instruments (i.e., rights), the initial carrying value of Class A 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