Company: SPEG
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001213900-25-110444
Chunk: 15

Company: Silver Pegasus Acquisition Corp.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
---
. government securities and generally have a readily determinable fair
value, or a combination thereof. When the Company’s investments held in the Trust Account are comprised of U.S. government securities,
the investments are classified as trading securities, which are presented at fair value. Gains and losses resulting from the change in
fair value of these securities are included in interest earned on marketable securities held in Trust Account in the accompanying unaudited
condensed statements of operations. The estimated fair values of investments held in the Trust Account are determined using available
market information. As of September 30, 2025, the assets held in the Trust Account of $115,989,876 were held in money market funds.

Concentration of Credit Risk

Financial instruments that potentially subject
the Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Deposit Insurance Corporation coverage limit of $250,000. Any loss incurred or a lack of access to such funds could have a significant
adverse impact on the Company’s financial condition, results of operations, and cash flows.

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 assigned value of the rights and then to the Class A ordinary shares.
Offering costs allocated to the Class A ordinary shares subject to possible redemption were charged to temporary equity, and offering
costs allocated to the Public Rights and Private Placement Warrants were charged to unaudited condensed statements of operations as Public
Rights and Private Placement Warrants, after management’s evaluation, were accounted for under liability 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 its short-term nature.

9

SILVER PEG