Company: JUPGF
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001493152-25-008689
Chunk: 70

Company: ATLAS CRITICAL MINERALS Corp
Filing Date: 2025-02-28
Form: 20-F
Item: Item 19
Chunk 70
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-04, Debt - Debt with Conversion
and Other Options (Subtopic 470-20): Induced Conversions of Convertible Debt Instruments. The Board issued this Update to improve the
relevance and consistency in application of the induced conversion guidance in Subtopic 470-20, Debt - Debt with Conversion and Other
Options. The amendments in this Update clarify the requirements for determining whether certain settlements of convertible debt instruments
should be accounted for as an induced conversion. The amendments in this Update are effective for all entities for annual reporting periods
beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted for
all entities that have adopted the amendments in Update 2020-06. Management does not expect this new guidance to have any impacts on the
Company’s consolidated financial statements.

NOTE
2 - ACCOUNTING IMPACTS ARISING FROM THE MERGER WITH APOLLO

As
discussed in Note 1, Organization and Description of Business, on November 19, 2024, the Company consummated a merger transaction through
which Apollo Resources Corporation (“ Apollo”), an entity under the same control of the Company, was merged with and into
the Company. Such a transfer of net assets between entities under the control of the same parent is referred to under US GAAP as a common-control
transaction.

The growing demand for critical minerals needed for
clean energy technologies and high-tech applications presents significant long-term opportunities. The Company’s goal is to become
a leading critical mineral resources company supplying materials for the rapidly growing clean energy technologies. The acquisition of
Apollo Resources’ mineral rights on critical minerals strengthens the Company’s portfolio of critical minerals and improves
its position to become a leading supplier in this industry.

The fair value of the net assets acquired was determined at $14million
based on an independent opinion prepared by RPM Global Canada Limited (“ RPM”).

While
a common-control asset acquisition transaction is similar to a business combination for the entity that receives the net assets or
equity interests, such a transaction does not meet the definition of a business combination. Acquisition of assets that are under common control are excluded from the scope of the business
combinations guidance and are addressed specifically by subsection ASC 805-50, which requires the receiving entity to recognize the
net assets received at their historical carrying amounts, as reflected in the ultimate parent’s financial
statements.

The
table below presents the consolidated balance sheet of the Company in the effective date of the merger and