Company: IBACR
Filing Date: 2025-02-13
Form Type: 10-Q
Source: 0001493152-25-006426
Chunk: 19

Company: IB Acquisition Corp.
Filing Date: 2025-02-13
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 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 was amended in which the Sponsor granted an additional 50,000
Founder Shares bringing the total to 150,000 Founder Shares or 4.06% of the 3,243,590 Founders Shares (with over-allotment) issued and
outstanding. The total purchase price paid for the membership interest was $750.

The
fair value of the 425,000 shares granted through March 28, 2024, to the Company’s directors and director nominees was approximately
$1,734,000 or approximately $4.08 per share. The fair value of the additional 50,000 shares granted on September 11, 2024, to the Company’s
directors and director nominees was approximately $499,000 or approximately $9.98 per share. The Founders Shares were granted subject
to a performance condition (i.e., the occurrence of a Business Combination). Compensation expense related to the Founders Shares is recognized
only when the performance condition is probable of occurrence under the applicable accounting literature in this circumstance. As of
December 31, 2024, the Company determined that a Business Combination is not considered probable, and, therefore, no stock-based compensation
expense has been recognized. 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 Founders Shares times the grant date fair value per
share (unless subsequently modified) less the amount initially received for the purchase of the Founders Shares.

The
Founder Shares issued to the directors and director nominees were valued using a Black-Scholes model. The following criteria presents
the quantitative information regarding market assumptions used in the Founder Share valuations:

 SCHEDULE OF FAIR VALUE OF MARKET ASSUMPTIONS USED IN THE FOUNDER SHARE VALUATIONS

    November 15, 2023  
    January 15, 2024 
  
    Volatility 
     5.0% 
     5