Company: BEAG
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076723
Chunk: 15

Company: Bold Eagle Acquisition Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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.” For derivative financial instruments that are classified as liabilities, the derivative
instrument is initially recognized at fair value with subsequent changes in fair value recognized in the statement of operations each
reporting period. The classification of derivative instruments, including whether such instruments should be classified as liabilities
or as equity, is evaluated at the end of each reporting period.

The Company accounted for the Eagle Share Rights
issued in connection with the Initial Public Offering in accordance with the guidance contained in ASC 815-40. Such guidance provides
that the Eagle Share Rights are not precluded from equity classification. Equity-classified contracts are initially measured at fair value
(or allocated value). Subsequent changes in fair value are not recognized as long as the instruments continue to be classified in equity.

The Over-Allotment Option was deemed to be a freestanding
financial instrument indexed on the contingently redeemable shares and was accounted for as a liability (the “Over-Allotment Option
Liability”) pursuant to ASC 480, with the changes in fair value of the Over-Allotment Option Liability recorded in the statements
of operations. The Over-Allotment Option Liability was de-recognized when the Over-Allotment Option was partially exercised and expired
on December 9, 2024.

Derivative assets and liabilities are classified
in the balance sheets as current or non-current based on whether or not net-cash settlement or conversion of the instruments could be
required within 12 months of the balance sheet date.

Offering Costs

Offering costs consisted of underwriting, legal,
accounting and other expenses incurred directly related to the Initial Public Offering. Upon completion of the Initial Public Offering,
offering costs were allocated to the separable financial instruments issued in the Initial Public Offering based on a relative fair value
basis, compared to total proceeds received. Offering costs allocated to Class A ordinary shares were initially charged to temporary equity
and then accreted to Class A ordinary shares subject to possible redemption upon the completion of the Initial Public Offering. Offering
costs amounted to $12,283,324, of which $11,788,102 was charged to temporary equity upon the completion of the Initial Public Offering
and $495,222 was charged to shareholder’s deficit as, per management’s evaluation, the Eagle Share Rights and Private Placement
Shares were accounted for under equity treatment.

Redeemable Class A Ordinary Shares

As discussed in Note 1, all of the 25,800,000
Class A ordinary shares