Company: DMAAR
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001213900-25-046061
Chunk: 58

Company: Drugs Made In America Acquisition Corp.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 58
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 815, “Derivatives and Hedging”. For derivative financial instruments that are accounted for as liabilities,
the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with
changes in the fair value reported in the statement of operations. The classification of derivative instruments, including whether such
instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative liabilities are
classified in the unaudited balance sheets as current or non-current based on whether or not net cash settlement or conversion of the
instrument could be required within 12 months of the unaudited balance sheets date. The underwriters’ over-allotment option
is deemed to be a freestanding financial instrument indexed on the contingently redeemable shares and was accounted for as a liability
pursuant to ASC 480 since it was not exercised at the time of the Initial Public Offering.

10

DRUGS MADE IN AMERICA ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2025

(Unaudited)

Net Income Per Ordinary Share

The Company complies with accounting and disclosure
requirements of FASB ASC Topic 260, “Earnings Per Share.” The Company has two classes of ordinary shares, which are referred
to as redeemable ordinary shares and non-redeemable ordinary shares. Income and losses are shared pro rata between the two classes of
ordinary shares. This presentation assumes a Business Combination as the most likely outcome. Net income per ordinary share is calculated
by dividing the net income by the weighted average ordinary shares outstanding for the respective period.

The calculation of diluted net income per ordinary
share does not consider the effect of the rights issued in connection with the Initial Public Offering and the private placement of the
Private Placement Units to purchase an aggregate of 10,517,143 redeemable ordinary shares in the calculation of diluted income per ordinary
share, because their exercise is contingent upon future events.

The Company has considered the effect of non-redeemable
ordinary shares that were excluded from weighted average number as they were contingent on the exercise of over-allotment option by the
underwriters. Since the contingency was satisfied, the Company included these shares in the weighted average number as of the beginning
of the interim period to determine the dilutive impact of these shares.

The following table presents a reconciliation
of the numerator and denominator used to compute basic