XML 25 R16.htm IDEA: XBRL DOCUMENT v3.25.4
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Measurements [Abstract]  
Fair Value Measurements

Note 10 — Fair Value Measurements

 

In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.

 

As of June 30, 2025 and December 31, 2024, the carrying values of cash, and other payables approximated their fair values due to the short-term nature of the instruments. The Company’s portfolio of investments held in the Trust Account is comprised of investments in   money market funds that invest solely in U.S. government securities. The fair value for trading securities is determined using quoted market prices in active markets.

 

As noted in Note 8, the Company has concluded that its Private Warrants should be presented as liabilities with subsequent fair value remeasurement. The Private Warrants are measured at fair value at inception and on a recurring basis, with changes in fair value presented within change in fair value of Private Warrants in the unaudited condensed consolidated statements of operations.

 

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis at June 30, 2025 and December 31, 2024 and indicates the fair value of trading securities as follows.

 

   Level  June 30,
2025		   December 31,
2024		 
Description           
Assets:           
Investments held in Trust Account  1  $42,361,047   $48,084,367 
              
Liabilities:             
Derivative Warrant Liability – Private Warrant  2  $10,300   $17,000 

 

Initial Measurement

 

The fair value of the Private Warrants was estimated using Binomial Model on March 28, 2023.

 

The Private Warrants were classified within Level 3 of the fair value hierarchy at the measurement dates due to the use of unobservable inputs. The estimated fair value of the Private Warrants is determined using Level 3 inputs. Inherent in these valuations are assumptions related to expected stock-price volatility, expected life, risk-free interest rate and dividend yield. The Company estimates the volatility of its ordinary shares based on historical and implied volatilities of select peer companies as well as its own that matches the expected remaining life of the warrants. 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 warrants. The expected life of the warrants is assumed to be equivalent to their remaining contractual term. The dividend rate is based on the historical rate, which the Company anticipates remaining at zero.

The key inputs into the Binomial Model for the Private Warrants were as follows at initial measurement:

 

   March 28,
2023		 
Volatility   9.30%
Stock price  $10.00 
Expected life of the warrants to convert (in years)   5.76 
Risk free rate   3.63%
Dividend yield   0.00%

 

Subsequent Measurement

 

The Company’s Public Warrants began trading separately on May 19, 2023. The Private Warrants were estimated using the Public Warrants’ publicly listed trading price, the value of the public and private warrants is approximately the same, as such the private warrants were reclassified to level 2. For the three months ended June 30, 2025 and 2024, the Company recorded an increase in fair value of $1,700 and a decrease in fair value of $1,720 of the Private Warrants, respectively. For the six months ended June 30, 2025 and 2024, the Company recorded an increase in fair value of $6,700 and $320 of the Private Warrants, respectively.