Company: PMVC
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0001213900-25-107610
Chunk: 102

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-11-07
Form: 10-Q
Item: Part I, Item 8
Chunk 102
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 of Class A convertible common stock subject to redemption (the “Class A IPO Shares”), which resulted in the forfeiture
of the remaining $1,531,250 of deferred underwriting fees. Following the completion of the redemption of the Class A IPO Shares, the
IPO Trust Account was terminated in complete liquidation of the assets held in trust, and the relevant provisions of the Company’s
charter, including with respect to any business combination and the IPO Trust Account, were extinguished and are of no further legal
force and effect. As a result, the Company derecognized the entire deferred underwriting fee payable of $6,125,000 and recorded $5,815,688
of the forgiveness of the deferred underwriting fee allocated to Public Shares to accumulated earnings (deficit) and the remaining balance
of $309,312 was as a gain from extinguishment of liability allocated to warrant liabilities. As of September 30, 2025 and December 31,
2024, the deferred underwriting fee payable is $0.

Critical
Accounting Policies and Estimates

The
preparation of the unaudited condensed financial statements and related disclosures in conformity with accounting principles generally
accepted in the United States of America 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. There have been no material changes to the critical
accounting estimates during the quarter ended September 30, 2025.

We
have identified the following critical accounting policies and estimates:

Warrant
Liability

We
account for the warrants issued in connection with our IPO in accordance with the guidance contained in ASC 815 under which the warrants
do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, we classify the warrants as liabilities
at their fair value and adjust the warrants to fair value at each reporting period. The Company’s accounting policy and estimate
surrounding the warrant liability is deemed to be critical since it is an equity linked instrument, and the accounting pronouncement
that determines the initial classification at issuance is considered a complex topic. This liability is subject to re-measurement at
each balance sheet date until exercised, and any change in fair value is recognized in our statements of operations. Any changes in the
value could have a significant impact on the results of operations.

19

Item
3. Quant