Company: ATMCW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023265
Chunk: 18

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 8
Chunk 18
---
 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. The Company allocates gross proceeds between the Public Shares, Public Warrants and Public Rights based
on the relative fair values of the Public Shares, Public Warrants and Public Rights.

At
June 30, 2025, the ordinary shares reflected in the balance sheets are reconciled in the following table:

  Schedule of Subject to Possible Redemption 

    Ordinary shares subject to possible redemption – December 31, 2024 
    $15,240,284 
  
    Subsequent measurement of ordinary shares subject to possible redemption (income earned on trust account) and extension deposit 
     356,350 
  
    Ordinary shares subject to possible redemption - March 31, 2025 
    $15,596,634 
  
    Subsequent measurement of ordinary shares subject to possible redemption (income earned on trust account) and extension deposit 
     212,689 
  
    Ordinary shares subject to possible redemption – June 30, 2025 
    $15,809,323 

    F-13

Income
Taxes

The
Company follows the asset and liability method of accounting for income taxes under ASC 740, “Income Taxes.” Deferred
tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial
statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are
measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period
that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected
to be realized.

ASC
740 prescribes 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