Company: IBACR
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010982
Chunk: 55

Company: IB Acquisition Corp.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 55
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as adjusted for stock splits,
stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading day period commencing
at least 150 days after its initial business combination, the Founder Shares will be released from the lock-up.

Due
to Sponsor

During
the period ended March 31, 2025, the Sponsor incurred travel expenses amounting to $2,788 which are reimbursable by Su De Tang Global
Corporation, the reimbursement was paid to the Company through the proceeds of the working capital loans. As of March 31, 2025 and September
30, 2024, the Company had due to Sponsor in the amount of $2,788 and $0, respectively.

Subscription
Agreements

From
October 2023 through January 2024, the Company’s Sponsor entered into six subscription agreements to sell membership interests
in the Sponsor to members of management, directors and director nominees. The membership interests represent the indirect equivalent
of 525,000 Founders Shares which equates to 16.19% of the 3,243,590 Founders Shares issued and outstanding. The total purchase price
paid for the membership interests was $2,500. The Company modified the agreements in February 2024, with the intent to clarify that the
Founder Shares are “earned upon the completion of a successful Business Combination” and the modified agreement is to be
effective contemporaneously with the date and time of the initial subscription agreements. The sale of the membership interests to the
Company’s management, directors and director’s nominees is 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 grant date.

On
January 22, 2024, one of the subscription agreements representing an indirect equivalent of 100,000 Founders Shares or 3.08% of the 3,243,590
Founders Shares (with over-allotment) issued and outstanding was terminated and $500 was paid to the subscriber as a result of the termination
of the agreement.

On
September 11, 2024, one of the subscription agreements representing an indirect equivalent of 100,000 Founders Shares or 3.08% of the
3,243,590 Founders Shares (with over-allotment) issued and outstanding