Company: SDHIU
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001213900-25-042070
Chunk: 8

Company: Siddhi Acquisition Corp (Cayman Islands)
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 8
Chunk 8
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5, the Company has
not experienced losses on these accounts and management believes the Company is not exposed to significant risks on such accounts.

Deferred Offering Costs

The Company complies with the requirements of
the ASC 340-10-S99 and SEC Staff Accounting Bulletin Topic 5A, “Expenses of Offering”. Offering costs consist principally
of professional and registration fees that are related to the Initial 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 Initial Public Offering proceeds from the Units between Class A ordinary shares and Rights,
using the residual method by allocating Initial Public Offering proceeds first to the assigned value of the Rights and then to the Class
A ordinary shares. Offering costs allocated to the Public Shares will be charged to temporary equity, and offering costs allocated to
Public Rights and Private Placement Units will be charged to shareholders’ deficit, as the Rights, after management’s evaluation,
will be accounted for under equity treatment.

Fair Value of Financial Instruments

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

Net Loss Per Ordinary Share

Net loss per ordinary share is computed by dividing net loss by the
weighted average number of ordinary shares outstanding during the period, excluding ordinary shares subject to forfeiture. Weighted average
shares were reduced for the effect of an aggregate of 900,000 ordinary shares that are subject to forfeiture if the over-allotment option
is not exercised by the underwriter (see Note 7). At March 31, 2025, the Company did not have any dilutive securities and other contracts
that could, potentially, be exercised or converted into ordinary shares and then share in the earnings of the Company. As a result, diluted
net loss per ordinary share is the same as basic net loss per ordinary share for the period presented.

8

SIDDHI ACQUISITION CORP.

NOTES TO CONDENSED FINANCIAL STATEMENTS

MARCH 31, 2025

(Unaudited) 

Income Taxes

The Company accounts for income taxes under ASC
Topic 740, “Income Taxes,” which requires an asset and liability approach to financial accounting and reporting