Company: BCAR
Filing Date: 2025-09-03
Form Type: 10-Q
Source: 0001829126-25-007047
Chunk: 25

Company: D. Boral ARC Acquisition I Corp.
Filing Date: 2025-09-03
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 Examples of Level 2 inputs include
         quoted prices in active markets for similar assets or liabilities and quoted prices
         for identical assets or liabilities in markets that are not active.
       
      Level 3: Unobservable inputs based on our assessment
of the assumptions that market participants would use in pricing the asset or liability.

    16

      The following table presents information about the Company’s assets that are measured at fair value as of August 1, 2025, and indicates the fair value hierarchy of the valuation inputs the Company
         utilized to determine such fair value:

    Schedule
    of fair value assets and liabilities 

    Level  
    August 1, 2025 
  
    Liability: 

    Fair value of over-allotment liability 
    3  
    $1,290,375 
  
    Equity: 

    Fair value of Public Warrants for Class A ordinary shares subject to possible redemption allocation 
    3  
    $8,061,250 

      The over-allotment option was accounted for as a liability in accordance with ASC
         815-40 and was presented within liabilities on the balance sheet. The over-allotment
         option liability is measured at fair value at August 1, 2025 and on a recurring basis, with changes in fair value presented within change
         in fair value of over-allotment option liability in the statement of operations.
       
      The Company used a Black-Scholes model to value the over-allotment option. The over-allotment
         option liability was classified within Level 3 of the fair value hierarchy at the
         measurement dates due to the use of unobservable inputs inherent in pricing models
         and assumptions related to expected share-price volatility, expected life and risk-free
         interest rate. The Company estimates the volatility of its ordinary share based on
         historical volatility that matches the expected remaining life of the over-allotment
         option. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield
         curve on the grant date for a maturity similar to the expected remaining life of the
         over-allotment option. The expected life of the over-allotment option is assumed to
         be equivalent to its remaining contractual term.
       
      The key inputs into the Black-Scholes model were as follows at initial measurement
         of the over-allotment option:

    Schedule of initial measurement 

    August