Company: JACS-RI
Filing Date: 2025-03-18
Form Type: 10-K
Source: 0001013762-25-000620
Chunk: 48

Company: Jackson Acquisition Co II
Filing Date: 2025-03-18
Form: 10-K
Item: Item 8
Chunk 48
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 If the Company does not complete
a Business Combination within the Combination Period, unless extended, the proceeds from the sale of the Private Placement Units held
in the Trust Account will be used to fund the redemption of the Public Shares (subject to the requirements of applicable law). The Private
Placement Units (including the underlying ordinary shares (“Private Placement Shares”) and rights (“Private Placement
Rights”)) are identical to the Public Units (including the underlying Public Shares and Public Share Rights) sold in the Initial
Public Offering.

F-13

NOTE 5 — RELATED PARTY TRANSACTIONS

Founder Shares

On September 13, 2024, the Sponsor paid $25,000
to cover certain offering and formation costs of the Company in consideration for 5,750,000 Class B ordinary shares (the “Founder
Shares”) issued to the Sponsor. Up to 750,000 of the Founder Shares were subject to surrendered by the Sponsor for no consideration
depending on the extent to which the underwriters’ over-allotment was exercised. On December 11, 2024, the underwriters exercised
their over-allotment option in full as part of the closing of the Initial Public Offering. As such, the 750,000 founder shares are no
longer subject to forfeiture.

On November 18, 2024, the Sponsor transferred
200,000 Founder Shares to the Company’s officers and directors at their original purchase price. The sale of the Founders Shares
to the Company’s directors and director’s nominees is 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 grant date. The fair value of the 200,000 shares granted to the Company’s director nominees was $206,000 or $1.03 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.

The Company’s initial shareholders have
agreed, subject to limited exceptions, not to transfer, assign or sell any of its Founder Shares until the earlier to occur of (A) one
year after the completion of a Business Combination; and (B) subsequent to a Business Combination, (x)