Company: TACOW
Filing Date: 2025-02-10
Form Type: DRS
Source: 0001829126-25-000836
Chunk: 309

Company: Berto Acquisition Corp.
Filing Date: 2025-02-10
Form: DRS
Chunk 309
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 FASB ASC 470-20, “Debt with Conversion and Other Options,” addresses the allocation of proceeds
from the issuance of convertible debt into its equity and debt components. The Company
applies this guidance to allocate Proposed Public Offering proceeds from the Units between ordinary shares and warrants, using the residual method by allocating Proposed
Public Offering proceeds first to assigned value of the warrants and then to the ordinary
shares. Offering costs allocated to the ordinary shares will be charged to temporary
equity offering costs allocated to the Public and Private Placement Warrants will
be charged to shareholders’ equity and Public and Private Placement Warrants after management’s evaluation will be accounted for under equity treatment. Should the Proposed Public
Offering prove to be unsuccessful, these deferred costs, as well as additional expenses
to be incurred, will be charged to operations.

<div align='center'>F-10

BERTO ACQUISITION CORP.

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2024</div>

Financial Instruments

The fair value of the Company’s assets and liabilities, which
qualify as financial instruments under the FASB ASC 820, “Fair Value Measurement,” approximates the carrying amounts represented
in the balance sheet, primarily due to their short-term nature.

Fair Value Measurements

Fair value is defined as the price that would be received for sale of an asset or
paid for transfer of a liability in an orderly transaction between market participants
at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The
hierarchy gives the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (Level 1 measurements) and the lowest priority
to unobservable inputs (Level 3 measurements). These tiers include:

| ● | Level 1, defined as observable inputs such as quoted prices 
 (unadjusted) for identical instruments in active markets;   |

| ● | Level 2, defined as inputs other than quoted prices in active                                                                              
 markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices 
 for identical or similar instruments in markets that are not active; and                                                                   |

| ● | Level 3, defined as unobservable inputs in which little or no                                                                              
 market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques     
 in which one or more significant inputs or significant value drivers are un