Company: TLGYF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108215
Chunk: 62

Company: TLGY ACQUISITION CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 62
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 Accordingly, we classify the warrants as liabilities at their fair value and adjust the warrants to fair
value at each reporting period. These liabilities are subject to re-measurement at each balance sheet date until exercised, and any change
in fair value is recognized in the statements of operations. Changes in the estimated fair value of the warrants are recognized as a
non-cash gain or loss on the statements of operations.

The public warrants for periods
where no observable trade price was available are valued using a Monte Carlo simulation. For periods subsequent to the detachment of
the public warrants from the Units, the public warrant quoted market price was used as the fair value as of each relevant date. The fair
value of the private placement warrants was determined using a Black-Scholes-Merton model.

Class A Ordinary Shares Subject to Possible
Redemption

We account for our ordinary
shares subject to possible redemption in accordance with the guidance in Accounting Standards Codification (“ASC”) Topic
480 “Distinguishing Liabilities from Equity.” Class A Ordinary shares subject to mandatory redemption (if any) are classified
as a liability instrument and is measured at fair value. Conditionally redeemable ordinary shares (including ordinary shares that features
redemption rights that is either within the control of the holder or subject to redemption upon the occurrence of uncertain events not
solely within our control) is classified as temporary equity. At all other times, ordinary shares are classified as shareholders’
equity. Our Class A ordinary shares feature certain redemption rights that are considered to be outside of our control and subject
to occurrence of uncertain future events. Accordingly, Class A ordinary shares subject to possible redemption is presented as temporary
equity, outside of the shareholders’ equity section of our balance sheet.

Net Income per Ordinary
Share

Net income per ordinary share
is computed by dividing net income by the weighted average number of ordinary shares outstanding during the period. We apply the two-class
method in calculating earnings per share. The net income is allocated to each class of shares using an allocation of total shares, which
is then divided by the total shares for the respective class.

We did not consider the effect
of the warrants issued in connection with the initial public offering and the private placement in the calculation of diluted loss per
share because their exercise is contingent upon future events. As a result, diluted net loss per ordinary share is the same as basic
net loss per ordinary share. Accretion associated with the redeemable Class A ordinary shares is excluded from loss per