Company: PMVC
Filing Date: 2025-03-27
Form Type: 10-K
Source: 0001013762-25-003340
Chunk: 22

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-03-27
Form: 10-K
Item: Item 1
Chunk 22
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 conditions common to SPAC warrants may require the warrants to be classified as liabilities instead of equity
on the SPAC’s balance sheet. As a result of the SEC Staff Statement, we re-evaluated the accounting treatment of our warrants, and
determined to classify the warrants as derivative liabilities measured at fair value, with changes in fair value reported in our statement
of operations for each reporting period.

As a result, included on our balance sheets as
of December 31, 2024 and 2023, and contained elsewhere in this report are derivative liabilities related to embedded features contained
within our warrants. ASC 815-40 provides for the re-measurement of the fair value of such derivatives at each balance sheet date, with
a resulting non-cash gain or loss related to the change in the fair value being recognized in earnings in the statement of operations.
As a result of the recurring fair value measurement, our financial statements and results of operations may fluctuate quarterly based
on factors which are outside of our control. Due to the recurring fair value measurement, we expect that we will recognize non-cash gains
or losses on our warrants each reporting period and that the amount of such gains or losses could be material.

13

Changes in laws
or regulations, or a failure to comply with any laws and regulations, may adversely affect our business, including our ability to identify
a potential business opportunity and/ or negotiate and complete a transaction, and results of operations.

We are subject to laws
and regulations enacted by national, regional and local governments. In particular, we will be required to comply with certain SEC and
other legal requirements. Compliance with, and monitoring of, applicable laws and regulations may be difficult, time consuming and costly.
Those laws and regulations and their interpretation and application may also change from time to time and those changes could have a material
adverse effect on our business, investments and results of operations. In addition, a failure to comply with applicable laws or regulations,
as interpreted and applied, could have a material adverse effect on our business, including our ability to identify a potential business
opportunity and/or negotiate and complete a transaction, and results of operations.

If we are deemed
to be an investment company under the Investment Company Act, we may be required to institute burdensome compliance requirements and our
activities may be restricted, which may make it difficult for us to complete a transaction or conduct other business activities.

If we are deemed to be
an investment company under the Investment Company Act, our activities may