Company: ONCHW
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001213900-25-075689
Chunk: 19

Company: 1RT Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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SACTIONS

Founder Shares

On December 31, 2024, the Sponsor made a
capital contribution of $25,000, or approximately $0.006 per share, to cover certain of the Company’s expenses, for which the Company
issued 4,312,500 founders shares to the Sponsor. Up to 562,500 of the founder shares may be surrendered by the Sponsor for no consideration
depending on the extent to which the underwriters’ over-allotment option is exercised. On July 3, 2025, the underwriters exercised
their over-allotment option in full as part of the closing of the Initial Public Offering. As such, the 562,500 founder shares are no
longer subject to forfeiture.

On July 1, 2025, the Sponsor granted membership
interests equivalent to an aggregate of 75,000 founder shares to directors of the Company in exchange for the payment of $144.93 by each
director and for their services through the Company’s initial Business Combination. The founder shares, represented by such membership
interests, will remain with the Sponsor if the holder of such membership interests are no longer serving the Company prior to the initial
Business Combination. The membership interest assignment of the founder shares to the holders of such interests are in the scope of FASB
ASC Topic 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation associated
with equity-classified awards is measured at fair value upon the assignment date. The total fair value of the 75,000 founder shares represented
by such membership interests assigned to the holders of such interests on July 1, 2025 was $193,500 or $2.58 per share. The membership
interests were assigned subject to a performance condition (i.e., providing services through Business Combination). Stock-based compensation
would be recognized at the date a Business Combination is considered probable (i.e., upon consummation of a Business Combination) in
an amount equal to the number of membership interests that ultimately vest times the assignment date fair value per share (unless subsequently
modified) less the amount initially received for the assignment of the membership interests. As of June 30, 2025, the Company determined
that the initial Business Combination is not considered probable and therefore no compensation expense has been recognized.

The Company’s initial shareholders have
agreed not to transfer, assign or sell any of their founder shares and any Class A ordinary