Company: KII
Filing Date: 2025-12-09
Form Type: S-1/A
Source: 0001213900-25-119587
Chunk: 317

Company: K2 Capital Acquisition Corp
Filing Date: 2025-12-09
Form: S-1/A
Chunk 317
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 derivative instrument is initially recorded at its fair value on the grant date and is then re -valuedat each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are classified in the balance sheet as current or non -currentbased on whether or not net -cashsettlement or conversion of the instrument could be required within 12 months of the balance sheet date. The over -allotmentoption to the underwriters is deemed a derivative liability and will recorded at the time of the Proposed Public Offering if the option is not exercised. F-12 K2 CAPITAL ACQUISITION CORPORATION
NOTES TO FINANCIAL STATEMENTS
December 8, 2025 NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) Rights The Company will account for the Rights to be issued in connection with the Proposed Public Offering and the private placement rights included in the Private Placement Units in accordance with the guidance contained in FASB ASC 815,“Derivatives and Hedging.” Under ASC 815 -40, the Rights (as defined below) and the private placement rights meet the criteria for equity treatment and as such will be recorded in shareholder’s equity. If the Rights and private placement rights no longer meet the criteria for equity treatment, they will be recorded as a liability and remeasured each period with changes recorded in the statements of operations. Recent Accounting Standards In November 2023, the FASB issued ASU 2023 -07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in this ASU require disclosures, on an annual and interim basis, of significant segment expenses that are regularly provided to the chief operating officer decision maker (“CODM”), as well as the aggregate amount of other segment items included in the reported measure of segment profit or loss. The ASU requires that a public entity disclose the title and position of the CODM and an explanation of how the CODM uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. Public entities will be required to provide all annual disclosures currently required by Topic 280 in interim periods, and entities with a single reportable segment are required to provide all the disclosures required by the amendments in this ASU and existing segment disclosures in Topic 280. This ASU is effective