Company: TLGYF
Filing Date: 2025-09-29
Form Type: S-4
Source: 0001213900-25-092592
Chunk: 397

Company: TLGY ACQUISITION CORP
Filing Date: 2025-09-29
Form: S-4
Chunk 397
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. TLGY 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 188 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: •Level1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; •Level2, 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 •Level3, 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 TLGY Warrants in accordance with the guidance contained in ASC Topic 815 -40, under which the TLGY Warrants do not meet the criteria for equity treatment and must be recorded as liabilities. Accordingly, we classify the TLGY Warrants as liabilities at their fair value and adjust the warrants to fair value at each reporting period. These liabilities are subject to re -measurementat each balance sheet date until exercised, and any change in fair value is recognized in the statements of operations. Changes in the estimated fair value of the TLGY Warrants are recognized as a non -cashgain or loss on the statements of operations. The Public Warrants are valued using a Monte Carlo simulation for periods where no observable trade price was available. For periods subsequent to the detachment of the Public Warrants from the TLGY Units, the warrant quoted market price was used as the fair value as of each relevant date. The fair value of the Private Placement Warrants was determined using a Black -Scholes -Mertonmodel. TLGY Class A Ordinary Shares Subject to Possible Redemption We account for the TLGY Ordinary Shares subject to possible redemption in accordance with the guidance in ASC Topic 480 “ Distinguishing Liabilities from Equity.”