Company: GSHRW
Filing Date: 2025-05-14
Form Type: 10-Q
Source: 0001213900-25-043440
Chunk: 22

Company: Gesher Acquisition Corp. II
Filing Date: 2025-05-14
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 to the Company 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 315,000 founder shares represented by such membership interests assigned
to the holders of such interests on March 5, 2025 was $472,500 or $1.50 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 March 31, 2025, the Company determined that the initial Business
Combination is not considered probable and therefore no compensation expense has been recognized.

The founder shares are designated as Class B
ordinary shares and, except as described below, are identical to the Class A ordinary shares included in the units sold in the Initial
Public Offering and holders of founder shares have the same shareholder rights as public shareholders, except (i) the founder shares
are subject to certain transfer restrictions, as described in more detail below; (ii) the founder shares are entitled to registration
rights; (iii) the Sponsor and the Company’s officers and directors have entered into a letter agreement with the Company, pursuant
to which they have agreed to (A) waive their redemption rights with respect to their founder shares, private placement shares and
public shares in connection with the completion of the initial Business Combination, (B) waive their redemption rights with respect
to their founder shares, private placement shares and public shares in connection with a shareholder vote to approve an amendment to the
Company’s amended and restated memorandum and articles of association (A) to modify the substance or timing of the Company’s
obligation to allow redemption in connection with