General Purpose Acquisition Corp.GPAC

General Purpose Acquisition Corp. Fair Value Disclosure

10-KFiled Mar 27, 20261 min read
Note 9 – Fair Value Measurements

The fair value of the Company’s financial assets and liabilities reflects management’s estimate of amounts that the Company would have received in connection with the sale of the assets or paid in connection with the transfer of the liabilities in an orderly transaction between market participants at the measurement date.

Recurring Fair Value Measurements

The following table presents information about the Company’s recurring fair value measurements as of December 31, 2025, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:

   
Level
    
December 31,
2025
  
         
US$
  
Assets:
            
Cash and marketable securities held in Trust Account
    
1
    
$
230,640,427
  

Non- Recurring Fair Value Measurements

Upon consummating the Initial Public Offering on December 4, 2025, the Public Warrants were valued using a Black-Scholes Simulation Model, resulting in a fair value of $3,913,914. The Public Warrants have been classified within shareholders’ deficit and will not require remeasurement after issuance. The following table presents the quantitative information regarding market assumptions used in the Level 3 valuation of the Public Warrants:

   
December 4,
2025
  
Implied ordinary share price
  
$
9.82
  
Exercise price
  
$
11.50
  
Simulation term (years)
    
7.00
  
Risk-free rate
    
3.87
%
Estimated implied volatility
    
2.10
%
Market adjustment
    
32.19
%
Calculated value per warrant
  
$
0.34
  

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

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