Company: TLGYF
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001213900-25-108215
Chunk: 61

Company: TLGY ACQUISITION CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 2
Chunk 61
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 made by Verde for extending the period of time to consummate a business combination
by the Company shall not be repayable by the Company to Verde and all promissory notes issued by the Company to Verde, including the
Verde Extension Loans, shall be deemed to have been voided and cancelled. Solely in the event of a consummation by the Company of its
initial business combination, the Company shall pay Verde a sum of $83,125, as full and final payment of such loans.

Critical Accounting Estimates
and Policies:

The preparation of financial
statements and related disclosures in conformity with accounting principles generally accepted in the United States (“GAAP”)
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements, and income and expenses during the periods reported. Actual results could
materially differ from those estimates. The Company has identified the following as its critical accounting estimates and policies:

A critical accounting estimate
to our financial statements is the estimated fair value of our warrant liability and convertible notes. Fair value is defined as the
price that would be received for sale of an asset or paid for transfer of a liability, in an orderly transaction between market participants
at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements)
and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

●Level
                                            1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments
                                            in active markets;

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●Level
                                            2, defined as inputs other than quoted prices in active markets that are either directly
                                            or indirectly observable such as quoted prices for similar instruments in active markets
                                            or quoted prices for identical or similar instruments in markets that are not active; and

●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.

Warrant Liabilities

We account for the warrants
in accordance with the guidance contained in ASC 815-40, under which the warrants do not meet the criteria for equity treatment and must
be recorded as liabilities.