Company: SDHIU
Filing Date: 2025-05-12
Form Type: 10-Q
Source: 0001213900-25-042070
Chunk: 144

Company: Siddhi Acquisition Corp (Cayman Islands)
Filing Date: 2025-05-12
Form: 10-Q
Item: Part I, Item 1
Chunk 144
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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 March 31, 2025, the Company determined that the initial Business Combination
is not considered probable and therefore no compensation expense has been recognized.

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 respect to any founder shares (the “Lock-up”). Notwithstanding the foregoing, if (1) the closing price of the Class A
ordinary shares equals or exceeds $12.00 per share (as adjusted for share subdivisions, share capitalizations, reorganizations, recapitalizations
and the like) for any 20 trading days within any 30-trading day period commencing at least 150 days after the initial
Business Combination or (2) if the Company consummates a transaction after the initial Business Combination which results in the
Company’s shareholders having the right to exchange their shares for cash, securities or other property, the founder shares will
be released from the Lock-up.

Promissory Note — Related Party

The Sponsor had agreed to loan the Company