Company: APAD
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-108829
Chunk: 79

Company: AParadise Acquisition Corp.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 79
---
 above, the shares to be issued to the underwriters in the IPO will be further
subject to the limitations on registration requirements imposed by FINRA Rule 5110(g)(8). The Company will bear the expenses incurred
in connection with the filing of any such registration statements.

20

Underwriting Agreement

The underwriters were paid a cash underwriting
discount of two percent (2%) of the gross proceeds of the IPO, or $4,000,000, of which $2,000,000 were invested in the purchase of Private
Placement Units, upon the closing of the IPO. In addition, the underwriters will be entitled to a deferred fee of up to $0.40 per Unit,
or 4% of the gross proceeds of the offering, or up to $8,000,000 in the aggregate (or $9,200,000 in the aggregate if the underwriter’s
over-allotment option is exercised in full), payable based on the funds available in the Trust Account after redemptions of Public Shares,
solely in the event that the Company completes a Business Combination, subject to the terms of the underwriting agreement. The Company
recorded the deferred underwriting fee payable in the balance sheet as of July 31, 2025, by referring to ASC 450 that deferred underwriter
fees should be recognized upon the close of IPO if the Business Combination is probable of occurring, and the underwriter fee can be reasonably
estimated.

Critical Accounting Policies

The preparation of financial statements and related
disclosures in conformity with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and income and expenses during the
periods reported. Actual results could materially differ from those estimates. We have not identified any critical accounting estimates.
We have identified the following critical accounting policies:

Class A Ordinary Shares Subject to Possible
Redemption

The Company accounts for its Class A ordinary
shares subject to possible redemption in accordance with the guidance in ASC Topic 480, “Distinguishing Liabilities from Equity”
(ASC 480). Class A ordinary shares subject to mandatory redemption (if any) will be classified as a liability instrument and will be measured
at fair value. Conditionally redeemable ordinary shares (including ordinary shares that features redemption rights that are either within
the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control)