Company: IBACR
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006426
Chunk: 49

Company: IB Acquisition Corp.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 8
Chunk 49
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 2023 to cover the Company’s operating cost and deferred offering
cost and the balance was deposited with the closing of the Proposed Public Offering.

Subscription
Agreements

From
October 2023 through January 2024, the Company’s Sponsor entered into six subscription agreements to sell membership interests
in the Sponsor to members of management, directors and director nominees. The membership interests represent the indirect equivalent
of 525,000 Founders Shares which equates to 16.19% of the 3,243,590 Founders Shares issued and outstanding. The total purchase price
paid for the membership interests was $2,500. The Company modified the agreements in February 2024, with the intent to clarify that the
Founder Shares are “earned upon the completion of a successful Business Combination” and the modified agreement is to be
effective contemporaneously with the date and time of the initial subscription agreements. The sale of the membership interests to the
Company’s management, directors and director’s nominees is in the scope of FASB ASC Topic 718, “Compensation-Stock
Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated with equity-classified awards is measured
at fair value upon the grant date.

On
January 22, 2024, one of the subscription agreements representing an indirect equivalent of 100,000 Founders Shares or 3.08% of the 3,243,590
Founders Shares (with over-allotment) issued and outstanding was terminated and $500 was paid to the subscriber as a result of the termination
of the agreement.

On
September 11, 2024, one of the subscription agreements representing an indirect equivalent of 100,000 Founders Shares or 3.08% of the
3,243,590 Founders Shares (with over-allotment) issued and outstanding was amended in which the Sponsor granted an additional 50,000
Founder Shares bringing the total to 150,000 Founder Shares or 4.06% of the 3,243,590 Founders Shares (with over-allotment) issued and
outstanding. The total purchase price paid for the membership interest was $750.

The
fair value of the 425,000 shares granted through March 28, 2024, to the Company’s directors and director nominees was approximately
$1,734,000 or approximately $4.08 per share. The fair value of the additional 50,000 shares granted