Company: AAM-UN
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001213900-25-042038
Chunk: 46

Company: AA Mission Acquisition Corp.
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 46
---
 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, 2025 and December 31, 2024.
The Company is currently not aware of any issues under review that could result in significant payments, accruals, or material deviation
from its position.

There is currently no taxation imposed on income by the Government
of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company. Consequently, income
taxes are not reflected in the Company’s condensed financial statements.

F-11

Ordinary Shares Subject to Possible Redemption

The Company accounts for
its ordinary shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”)
Topic 480 “Distinguishing Liabilities from Equity.” Ordinary shares subject to mandatory redemption (if any) is classified
as a liability instrument and is 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) is classified as temporary equity. At all other times, ordinary shares are classified as shareholders’
equity. The Company’s ordinary shares features certain redemption rights that are considered to be outside of the Company’s
control and subject to occurrence of uncertain future events. Accordingly, ordinary shares subject to possible redemption are presented
at redemption value as temporary equity, outside of the shareholders’ equity section of the Company’s balance sheet. 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.

As of March 31, 2025, the
ordinary shares subject to possible redemption reflected in the balance sheet are reconciled in the following table:

    Public offering proceeds 
    $300,000,000 
  
    Less: 

    Proceeds allocated to Public