Company: APAD
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0001213900-25-087285
Chunk: 29

Company: AParadise Acquisition Corp.
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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 the initial business combination, or (y) the date on which the Company completes
a liquidation, merger, share exchange, reorganization or other similar transaction after the completion of the initial business combination
that results in all of the Company’s public shareholders having the right to exchange their Class A ordinary shares for cash, securities
or other property, and (ii) in the case of the Private Placement Units, including the component securities therein, until the completion
of the initial business combination. Notwithstanding the above, the shares to be issued to the underwriters in the IPO will be further
subject to the limitations on registration requirements imposed by FINRA Rule 5110(g)(8). The Company will bear the expenses incurred
in connection with the filing of any such registration statements.

18

Underwriting Agreement

The underwriters have a 45-day option from the
date of the IPO to purchase up to an additional 3,000,000 Units to cover over-allotments, if any.

The underwriters were paid a cash underwriting
discount of two percent (2%) of the gross proceeds of the IPO, or $4,000,000, of which $2,000,000 were invested in the purchase of Private
Placement Units, upon the closing of the IPO. In addition, the underwriter will be entitled to a deferred fee of up to $0.40 per Unit,
or 4% of the gross proceeds of the offering, or up to $8,000,000 in the aggregate (or $9,200,000 in the aggregate if the underwriter’s
over-allotment option is exercised in full), payable based on the funds available in the Trust Account after redemptions of Public Shares,
solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. The Company
recorded the deferred underwriting fee payable in the balance sheet as of July 31, 2025, by referring to ASC 450 that deferred underwriter
fees should be recognized upon the close of IPO if the Business Combination is probable of occurring, and the underwriter fee can be
reasonably estimated.

Critical Accounting Policies

The preparation of financial statements and related
disclosures in conformity with GAAP 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