Company: IBACR
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006426
Chunk: 13

Company: IB Acquisition Corp.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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, the initial carrying value of Public Shares classified
as temporary equity are the allocated proceeds determined in accordance with ASC 470-20. The Company recognizes changes in redemption
value immediately as it occurs and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each
reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book
value to redemption amount value. The change in the carrying value of redeemable shares will result in charges against retained earnings
or additional paid-in capital in the absence of retained earnings. Accordingly, as of December 31, 2024, common stock subject to possible
redemption is presented at redemption value as temporary equity, outside of the stockholders’ 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
shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable
shares are affected by charges against retained earnings or additional paid-in capital in the absence of retained earnings.

As
of December 31, 2024, the common stock subject to redemption reflected in the balance sheet are reconciled in the following table:

 SCHEDULE OF COMMON STOCK SUBJECT TO REDEMPTION

    Gross proceeds 
    $115,000,000 
  
    Less: 

    Proceeds allocated to Public Rights 
     (2,415,000)
  
    Common stock issuance costs 
     (7,571,317)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     12,952,678 
  
    Common stock subject to possible redemption, September 30, 2024 
    $117,966,361 
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     1,083,509 
  
    Common stock subject to possible redemption, December 31, 2024 
    $119,049,870 

Income
Taxes

The
Company accounts for income taxes under ASC 740, “Income Taxes.” ASC 740, Income Taxes, requires the recognition of deferred
tax assets and liabilities for both the expected impact of differences between the financial statements and tax basis of assets and liabilities
and for the expected future tax benefit to be derived from tax loss and tax credit carry forwards. ASC 740 additionally requires a valuation
allowance to