Company: QSEA
Filing Date: 2025-03-12
Form Type: S-1/A
Source: 0001829126-25-001750
Chunk: 273

Company: Quartzsea Acquisition Corp
Filing Date: 2025-03-12
Form: S-1/A
Chunk 273
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 position.

There is currently no taxation imposed on income
by the Government of the Cayman Islands. In accordance with Cayman income tax regulations, income taxes are not levied on the Company.
Consequently, income taxes are not reflected in the Company’s financial statements.

<div align='center'>F-10</div>

<div align='center'>QUARTZSEA ACQUISITION CORPORATION

NOTES TO FINANCIAL STATEMENTS</div>

Note 2 — Summary of Significant Accounting Policies (cont.)

Net Loss Per Ordinary Share

Net loss per ordinary share is computed by dividing
net loss by the weighted average number of shares of ordinary shares outstanding during the period, excluding shares of ordinary shares
subject to forfeiture. Weighted average shares were reduced for the effect of an aggregate of 315,000 shares of ordinary shares that
are subject to forfeiture if the over-allotment option is not exercised in full by the underwriters (see Notes 5). As of November 30,
2024, the Company did not have any dilutive securities and other contracts that could, potentially, be exercised or converted into shares
of ordinary shares and then share in the earnings of the Company. As a result, diluted loss per ordinary share is the same as basic loss
per ordinary share for the period presented.

Concentration of Credit Risk

Financial instruments that potentially subject the
Company to concentrations of credit risk consist of a cash account in a financial institution, which, at times, may exceed the Federal
Depository Insurance Coverage of $250,000. The Company has not experienced losses on this account and management believes the Company
is not exposed to significant risks on such account.

Fair Value of Financial Instruments

The fair value of the Company’s assets and
liabilities, which qualify as financial instruments under ASC 825, “Financial Instruments,” approximates the carrying amounts
represented in the accompanying balance sheet, primarily due to their short-term nature.

Derivative Financial Instruments

The Company evaluates its financial instruments to
determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815,
“Derivatives and Hedging.” For derivative financial instruments that are accounted for as liabilities, the derivative instrument
is initially recorded at its fair value on the grant date and is then re-valued at each reporting date, with changes in the fair value
reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be
recorded as liabilities or as equity, is evaluated