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FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

8. FAIR VALUE MEASUREMENTS

 

Fair value is defined as the price that would be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

 

  ● Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets;
     
  ● Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and
     
  ● Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. 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.

 

The following table presents information about the Company’s assets that are measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025, and indicates the fair value hierarchy of the inputs that the Company utilized to determine such fair value:

 

   Level   June 30, 2026   December 31, 2025 
Assets:               
Marketable securities held in Trust Account   1   $103,303,859   $— 
                

 

 

UNITED ACQUISITION CORP. I

NOTES TO CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2026

(UNAUDITED)

 

The fair value of the Public Warrants is $1,527,345, or $0.60 per Public Warrant. The fair value of Public Warrants was determined using a Monte Carlo Simulation Model. 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:

 

  

January 30, 2026

 
Underlying stock price  $9.85 
Exercise price  $11.50 
Volatility   6.50%
Probability of de-SPAC and market adjustment   45.00%
Risk-free rate   4.01%
Expected term to de-SPAC (years)   2.00 
Warrant term (years)   7.00 
Warrant term (years)   7.00 

 

The over-allotment option granted to the underwriters in connection with the Initial Public Offering was a freestanding financial instrument that was classified as a liability under FASB ASC Topic 480 and measured at fair value. Because its fair value was determined using significant unobservable inputs, the over-allotment liability was classified within Level 3 of the fair value hierarchy. The fair value of the over-allotment liability was determined at initial measurement on January 30, 2026, using a Black Scholes model. The following table presents the quantitative information regarding the significant unobservable inputs used in the Level 3 valuation of the over-allotment liability at initial measurement:

 

 SCHEDULE OF QUANTITATIVE INFORMATION

   January 30, 2026 
Underlying stock price  $9.85 
Exercise price (per Unit)  $10.00 
Volatility   6.50%
Risk-free rate   4.01%
Expected term (years)   0.12 
Expected term (years)   0.12 

 

The following table presents the changes in the fair value of the over-allotment liability, which was measured using Level 3 inputs, for the six months ended June 30, 2026:

 

SCHEDULE OF CHANGES IN FAIR VALUE OVERALLOTMENT LIABILITY

Fair value as of December 31, 2025  $— 
Initial measurement on January 30, 2026   94,122 
Reclassification to equity upon the partial exercise of the over-allotment option on February 12, 2026   (11,659)
Change in fair value upon the expiration of the over-allotment option on March 14, 2026   (82,463)
Fair value as of June 30, 2026  $— 

 

There were no transfers between levels of the fair value hierarchy during the three and six months ended June 30, 2026.