Company: PMVC
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043278
Chunk: 94

Company: PMV Consumer Acquisition Corp.
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 8
Chunk 94
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 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 March 31, 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 March 31,
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.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

Through March 31, 2025, our efforts were limited
to organizational activities, activities relating to our initial public offering and, since the initial public offering, the search for
a business opportunity for which to consummate a transaction. We have engaged in limited operations and have not generated any revenues.
We have not engaged in any hedging