Company: TACOW
Filing Date: 2025-06-12
Form Type: 10-Q
Source: 0001829126-25-004454
Chunk: 12

Company: Berto Acquisition Corp.
Filing Date: 2025-06-12
Form: 10-Q
Item: Part I, Item 1
Chunk 12
---
            ●
            Level
            3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its
            own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant
            value drivers are unobservable. In some circumstances, the inputs used to measure fair value might be categorized within
            different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety
            in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.

      Warrant
      Instruments
       
      The
      Company will account for all of the Public Warrants and Private Placement Warrants in accordance with the guidance contained in
      FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”). Accordingly, the Company evaluated and will
      classify the warrant instruments under equity treatment at their assigned values. Such guidance provides that the Warrants (as
      defined below) will not be precluded from equity classification. Equity-classified contracts are initially measured at fair value
      (or allocated value). Subsequent changes in fair value are not recognized as long as the contracts continue to be classified in
      equity in accordance with ASC 480 and ASC 815. There were no Public or Private Warrants outstanding as of March 31, 2025 and
      December 31, 2024.
       
      Stock
      Compensation
       
      The
      Company’s policy is to account for stock-based compensation expense in accordance with FASB ASC Topic 718, “Compensation-Stock
      Compensation” ​(“ASC 718”). Under ASC 718, stock-based compensation associated with equity awards is measured
      at fair value upon the grant date and recognized over the requisite service period. To the extent a stock-based award is subject
      to performance conditions, the amount of expense recorded in a given period, if any, reflects an assessment of the probability
      of achieving such performance condition, with compensation recognized once the event is deemed probable to occur. Forfeitures are
      recognized as incurred.
       
      Income
      Taxes
       
      The
      Company accounts for income taxes under FASB ASC Topic 740, “Income Taxes,” (“ASC 740”) which requires
      an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities