v3.26.1
Fair Value Measurements
 12 Months Ended
Jan. 31, 2026
PELICAN ACQUISITION CORPORATION  
Fair Value Measurements

Note 8 — 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. In connection with measuring the fair value of its assets and liabilities, the Company seeks to maximize the use of observable inputs (market data obtained from independent sources) and to minimize the use of unobservable inputs (internal assumptions about how market participants would price assets and liabilities). The following fair value hierarchy is used to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and liabilities:

 

  Level 1: Quoted prices in active markets for identical assets or liabilities. An active market for an asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.

 

  Level 2: Observable inputs other than Level 1 inputs. 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.

 

The following tables present information about the Company’s assets, liability and equity that are measured at fair value on a recurring basis as of January 31, 2026 and as of May 27, 2025; and indicate the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value.

 

                               
    January 31,
2026		     Quoted Prices in
Active Markets
(Level 1)		     Significant Other
Observable Inputs
(Level 2)		    

Significant Other
Unobservable Inputs

(Level 3)

  
Assets                                
Investments held in Trust Account   $ 88,594,774     $ 88,594,774       -       -  

 

    May 27,
2025		     Quoted Prices in
Active Markets
(Level 1)		     Significant Other
Observable Inputs
(Level 2)		    

Significant Other
Unobservable Inputs

(Level 3)

  
Liability:                                
Over-allotment option liability   $ 104,039                     $ 104,039  
Equity                                
Fair value of Public Rights for ordinary shares subject to possible redemption allocation   $ 1,200,000       -       -     $ 1,200,000  

 

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 as of May 27, 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 over-allotment option was extinguished as a result of the underwriter’s full exercise of its over-allotment option to purchase 1,125,000 units on May 30, 2025.

 

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 are 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 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 option. The expected life of the option is assumed to be equivalent to their remaining contractual term.

 

The key inputs into the Black-Scholes model were as follows at initial measurement of the over-allotment option: 

 

       
    May 27,
2025		  
Risk-free interest rate     4.14 %
Expected term (years)     0.12  
Expected volatility     4.60 %
Exercise price   $ 10.00  
Fair value of over-allotment Unit   $ 0.091  

 

The fair value of the rights upon IPO on May 27, 2025 was determined using an iterative analysis based on market comparable. The Public Rights have been classified within shareholders’ equity and will not require remeasurement after issuance. The following table presents the quantitative information regarding market assumptions used in the valuation of Public Rights:

 

       
    May 27,
2025		  
Fair value of common share   $ 9.84  
Market implied business combination likelihood     16.5 %
Fair value per share right   $ 0.16