Company: GSHRW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-075907
Chunk: 20

Company: Gesher Acquisition Corp. II
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 after giving effect to the Founder Share interest assignment described below.

On March 5, 2025, the Sponsor granted membership
interests equivalent to an aggregate of 315,000 Founder Shares to the four independent directors, the chief financial officer (“CFO”),
and two service providers, in exchange for their services as independent directors, CFO, and service providers, respectively, to the Company
through the initial Business Combination. The Founder Shares, represented by such membership interests, will remain with the Sponsor if
the holder of such membership interests is no longer serving the Company prior to the initial Business Combination. The membership interest
assignment of the Founder Shares to the holders of such interests are in the scope of ASC 718. Under ASC 718, share-based compensation
associated with equity-classified awards is measured at fair value upon the assignment date. The total fair value of the 315,000 Founder
Shares represented by such membership interests assigned to the holders of such interests on March 5, 2025 was $472,500 or $1.50 per share.
The membership interests were assigned subject to a performance condition (i.e., providing services through Business Combination). Share-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 June 30, 2025, the Company determined
that the initial Business Combination is not considered probable and therefore no compensation expense has been recognized.

The Founder Shares are designated as Class B Ordinary
Shares and, except as described below, are identical to the Public Shares and holders of Founder Shares have the same shareholder rights
as Public Shareholders, except (i) the Founder Shares are subject to certain transfer restrictions, as described in more detail below;
(ii) the Founder Shares are entitled to registration rights; (iii) the Sponsor and the Company’s officers and directors
have entered into the Letter Agreement with the Company, pursuant to which they have agreed to many limitations on the Founder Shares
(see Note 1); (iv) the Founder Shares are automatically convertible into Class A Ordinary Shares in connection with the consummation of
the initial Business Combination or earlier at the option of the holder on a one-for-one basis, subject to adjustment as described herein
and in the Amended and