Company: IBACR
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001641172-25-023510
Chunk: 15

Company: IB Acquisition Corp.
Filing Date: 2025-08-13
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 redemption outside of permanent equity as the redemption
provisions are not solely within the control of the Company. The Public Shares sold as part of the Units in the Initial Public Offering
were issued with other freestanding instruments (i.e., Public Rights) and as such, the initial carrying value of Public Shares classified
as temporary equity are the allocated proceeds determined in accordance with ASC 470-20. The Company recognizes changes in redemption
value immediately as it occurs and will adjust the carrying value of redeemable shares to equal the redemption value at the end of each
reporting period. Immediately upon the closing of the Initial Public Offering, the Company recognized the accretion from initial book
value to redemption amount value. The change in the carrying value of redeemable shares will result in charges against retained earnings
or additional paid-in capital in the absence of retained earnings. Accordingly, as of June 30, 2025 and September 30, 2024, common stock
subject to possible redemption is presented at redemption value as temporary equity, outside of the stockholders’ equity section
of the Company’s balance sheet. The Company recognizes changes in redemption value immediately as they occur and adjusts the carrying
value of redeemable shares to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying
amount of redeemable shares are affected by charges against retained earnings or additional paid-in capital in the absence of retained
earnings.

As
of June 30, 2025 and September 30, 2024, the common stock subject to redemption reflected in the balance sheet are reconciled in the
following table:

 SCHEDULE OF COMMON STOCK SUBJECT TO REDEMPTION

    Gross proceeds 
    $115,000,000 
  
    Less: 

    Proceeds allocated to Public Rights 
     (2,415,000)
  
    Common stock issuance costs 
     (7,571,317)
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     12,952,678 
  
    Common stock subject to possible redemption, September 30, 2024 
    $117,966,361 
  
    Plus: 

    Remeasurement of carrying value to redemption value 
     3,061,940 
  
    Common stock subject to possible redemption, June 30, 2025 
    $121,028,301 

Income
Taxes

The
Company accounts for income taxes under ASC