Company: SDHIU
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001213900-25-104714
Chunk: 62

Company: Siddhi Acquisition Corp (Cayman Islands)
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 8
Chunk 62
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 Initial Public Offering, the 900,000 founder shares are no longer subject to forfeiture.

On March 27, 2025, the Sponsor granted membership
interests equivalent to an aggregate of 145,000 founder shares to members of the Company in exchange 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 145,000 founder shares represented by such membership interests assigned to the holders
of such interests on March 27, 2025 was $214,135 or $1.477 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 September 30, 2025, the Company determined that the initial Business Combination
is not considered probable and therefore no compensation expense has been recognized.

10

SIDDHI ACQUISITION CORP

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2025

(Unaudited)

The Company’s initial shareholders have
agreed not to transfer, assign or sell any of their founder shares and any Class A ordinary shares issued upon conversion thereof
until the earlier to occur of (i) one year after the completion of the initial Business Combination or (ii) the date on which
the Company completes a liquidation, merger, share exchange or other similar transaction after the initial Business Combination that results
in all of the Company’s shareholders having the right to exchange their Class A ordinary shares for cash, securities or other
property. Any permitted transferees will be subject to the same restrictions and other agreements of the Company’s initial shareholders
with