Company: TACOW
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001829126-25-002771
Chunk: 326

Company: Berto Acquisition Corp.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 326
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 Proposed Public Offering. FASB ASC 470-20,
“Debt with Conversion and Other Options,” addresses the allocation of proceeds from the issuance of convertible debt
into its equity and debt components. The Company applies this guidance to allocate Proposed Public Offering proceeds from the Units
between ordinary shares and warrants, using the residual method by allocating Proposed Public Offering proceeds first to assigned
value of the warrants and then to the ordinary shares. Offering costs allocated to the ordinary shares will be charged to temporary
equity offering costs allocated to the Public and Private Placement Warrants will be charged to shareholders’ equity and
Public and Private Placement Warrants after management’s evaluation will be accounted for under equity treatment. Should
the Proposed Public Offering prove to be unsuccessful, these deferred costs, as well as additional expenses to be incurred, will
be charged to operations.

<div align='center'>F-10

BERTO ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024</div>

Financial Instruments

The fair value of the Company’s assets
and liabilities, which qualify as financial instruments under the FASB ASC 820, “Fair Value Measurement,” approximates
the carrying amounts represented in the balance sheet, primarily due to their short-term nature.

Fair Value Measurements

Fair value is defined as the price that would
be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the
measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level
1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

| ● | Level 1,                                                                                  
 defined as observable inputs such as quoted prices (unadjusted) for identical instruments 
 in active markets;                                                                        |

| ● | Level 2,                                                                                 
 defined as inputs other than quoted prices in active markets that are either directly or 
 indirectly observable such as quoted prices for similar instruments in active markets or 
 quoted prices for identical or similar instruments in markets that are not active; and   |

| ● | Level 3,                                                                                          
 defined as unobservable inputs in which little or no market data exists, therefore requiring      
 an entity to develop its own assumptions, such as valuations derived from valuation techniques    
 in which one or more significant inputs or significant value drivers are un